Hobbs, Nevada governor coauthor bipartisan letter urging California to reassess gas inventory bill

PHOENIX – Gov. Katie Hobbs and Nevada Gov. Joe Lombardo joined together to coauthor a bipartisan letter urging California’s legislature to reconsider a bill that could increase gas prices in Arizona and Nevada.

In a letter to California Gov. Gavin Newsom, the two asked for a reassessment of ABX2-1, which is currently under consideration in California’s special legislative session and could cut Arizona and Nevada’s gasoline supply.

If passed, the bill would regulate fuel inventory in California refineries by creating a process for establishing a minimum inventory level and adjusting minimum inventory requirements based on region, season and changes in regional or statewide supply and demand.

The governors expressed concern that the inventory regulations on refiners would create supply shortages and in turn, raise the cost of gas prices.

“Undoubtedly, we too all share concerns about the high cost of fuel and its impact on communities across our states. However, we’re concerned that mandating refinery inventory would directly raise the cost of fuel for all of our constituencies and create further economic instability in the region,” the letter said.

“For the good of our neighboring constituencies, and for the greater good of consumers across the West, we ask that you reevaluate mandating refinery inventory and delay taking action on this type of legislation until thorough policy conversations are had with industry leaders and our state energy offices.”

Along with worry that mandates on refinery inventory could impact gas prices, the letter also displays distress that inventory regulation could result in refinery shut downs.

“I urge Governor 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,” Hobbs said in a press release.

Lombardo, a Republican, teamed with Hobbs, a Democrat, to express their hope that their states energy departments will have a chance to work with California to find a viable solution that leads to lower fuel costs.

“Lowering fuel costs is a bipartisan issue, and I’m grateful to partner with Governor Hobbs as we fight back against policies that will raise prices and cause regional economic disruption,” Lombardo said.

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