ARIZONA NEWS

California bill that could raise gas prices in Arizona moves closer to passage

Oct 14, 2024, 9:21 AM

Gas prices Arizona California bill...

A man fills his tank in California, which has the nation's highest gas prices, in September 2024. (Photo by Justin Sullivan/Getty Images)

(Photo by Justin Sullivan/Getty Images)

PHOENIX – A California bill designed to prevent spikes in gas prices in that state could end up hitting Arizona and Nevada drivers in their wallets.

Democratic Gov. Gavin Newsom called the California Legislature into a special session to work on the bill, which would give energy regulators the authority to require refiners to keep a certain amount of fuel on hand.

The goal is to try to keep prices from increasing suddenly when refiners go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.

The legislation is moving forward despite bipartisan opposition from Arizona Gov. Katie Hobbs, a Democrat, and Nevada Gov. Joe Lombardo, a Republican.

Officials worry California bill could raise gas prices in Arizona, Nevada

Last month, the two governors sent Newsom a letter expressing concerns about the bill’s potential impact on gas prices in their states, which rely on California for significant portions of their petroleum supply.

“Arizonans are struggling with the high cost of living; we can’t afford yet another price hike,” Hobbs said in a press release after the letter was sent on Sept. 10. “I urge Gov. Newsom and the California Legislature to reconsider this legislation that could slash Arizona’s gasoline supply, raise prices at the pump and threaten Arizona’s strong economic growth.”

The governors’ letter cited a California Energy Commission report that determined the bill could end up increasing gas prices in other markets.

“Despite ongoing conversations about the root causes of rising fuel costs, it is evident that increased regulatory burdens on refiners and forced supply shortages will result in higher costs for consumers in all of our states,” the letter says. “With both of our states reliant on California pipelines for significant amounts of our fuel, these looming cost increases and supply shortages are of tremendous concern to Arizona and Nevada.”

Hobbs and Lombardo also offered California their states’ assistance to find ways to lower gas prices and strengthen the economy across the region.

However, their pleas apparently didn’t convince enough California lawmakers. The state Assembly approved the measure on Oct. 1 and the Senate passed it with amendments on Friday. The Assembly needs to OK the Senate modifications before sending it to Newsom’s desk.

Others also oppose California gas bill

The Arizona and Nevada governors weren’t alone in their opposition. The bill also received intense pushback from Republican lawmakers, labor groups and the oil industry.

The Western States Petroleum Association criticized Newsom and the Democratic lawmakers supporting the bill, saying it would not benefit consumers.

Californians pay the highest rates at the pump due to taxes and environmental regulations. The average price for regular unleaded gas in the state was about $4.68 per gallon as of Monday, compared to the Arizona average of $3.35 and the national average of $3.20, according to AAA.

Republican state Sen. Brian Dahle said there shouldn’t have been a special session to weigh the proposal because the bill does not do anything urgent. The proposal fails to address the state taxes and regulations that contribute to higher gas prices, he said.

“So, who’s making the money?” Dahle said. “Who’s gouging Californians for every gallon of gas? It’s the government.”

The Associated Press contributed to this report.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

fatal shooting southeast Phoenix one man dead...

Payne Moses

Police investigating fatal shooting that left 1 man dead in southeast Phoenix

Phoenix police are investigating a fatal shooting in southeast Phoenix on Friday that left one man dead. The incident is being viewed as an act of self-defense.

58 minutes ago

Phoenix woman hit killed by car West Phoenix...

Payne Moses

Woman dead after hit by car while crossing street in west Phoenix

An adult woman was struck and killed by a car on Friday while crossing a street in west Phoenix, authorities said.

2 hours ago

I17 Bumble Bee bridge ADOT construction Feb. 10-12 overnight...

Payne Moses

I-17 overnight closures next week to remove old Bumble Bee bridge

The southbound Interstate 17 will be closed overnight from Monday to Wednesday due to scheduled reconstruction of the Bumble Bee bridge.

3 hours ago

asthma GSK Arizona AG Kris Mayes sues for exploiting drug maker...

Payne Moses

Arizona AG accuses asthma drug maker of scheming to avoid Medicaid rebates

Arizona Attorney General Kris Mayes on Thursday sued drug producer GlaxoSmithKline (GSK) for harm done to asthma patients by discontinuing a long-time product.

5 hours ago

According to a recent study, film production in the metro Phoenix area generated $29.1 million in e...

David Veenstra

2024 film projects made $29.1M in economic impact on Phoenix area, new report says

According to a recent study, film production in the metro Phoenix area generated $29.1 million in economic impact in 2024.

7 hours ago

Tucson border patrol...

Roxanne De La Rosa

3 men arrested near Tucson after fleeing from Border Patrol

Tucson Border Patrol agents arrested three men on Tuesday near the southern border, after they tried to flee from law enforcement.

8 hours ago

Sponsored Articles

...

Bright Wealth Management

How IRAs are a helpful tool in retirement planning

When it comes to retirement planning, individual retirement accounts (IRAs) can be a great tool for income growth.

...

Bright Wealth Management

How to start your retirement planning early and avoid costly mistakes

Retirement planning can feel overwhelming, but with the right guidance, you can avoid costly pitfalls.

...

Bright Wealth Management

How to save money on retirement planning following 2024 election

PHOENIX -- With the 2024 election over, economic changes could impact how people plan for retirement as 2025 is on the horizon.

California bill that could raise gas prices in Arizona moves closer to passage