LAS VEGAS, Nev. (FOX5) – Governor Joe Lombardo sent a letter to California Governor Gavin Newsom, sharing his concerns about the unintended consequences of California’s SBX1-2 legislation, which Lombardo said could further raise gas prices in California, Nevada, and Arizona.
“Since 88 percent of Nevada’s fuels are delivered via pipeline and truck from refineries in California, it’s no surprise that California’s fuel policies significantly impact the costs and availability of fuel for Nevada’s residents and businesses,” Lombardo wrote.
“As my administration has followed this issue, it seems that the new state agency the legislation created is getting closer to announcing a profits cap structure. While we have no details on what this might look like, I’m concerned that this approach could lead to refiners either constraining supplies of fuels to avoid a profit penalty or even leaving our shared fuels market entirely,” he added. “Either scenario would likely lead to limited supplies and higher fuel costs for consumers in both of our states.”
“Should this happen, I am sure Californians and Nevadans would share a demand for answers and relief from higher fuel costs and the impacts those costs could have across the economy.”
Governor Joe Lombardo, in a letter to California Governor Gavin Newsome
“Before proceeding with a profits cap, I would request an assessment of potential impacts of this approach across the West, including not only California, but Nevada and Arizona too. To assist with this, my Office of Energy stands ready to immediately engage in proactive conversations with the California Energy Commission,” Lombardo added.
“Thank you for your consideration of this request. I’m hopeful that your administration will work to mitigate unintended consequences of SBX1-2, so that we can spare hard working Californians and Nevadans from further pain at the pump,” he wrote in conclusion.
Governor Lombardo’s letter comes ahead of the California State Assembly Utilities & Energy Committee hearing tomorrow, where the California Energy Commission will update the committee on the implementation of SBX1-2.
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