In a display of bipartisanship, the governors of Arizona and Nevada have joined forces against a proposed California bill that could result in higher fuel prices for their states. According to a statement on Governor Katie Hobbs' official website, the governors penned a harsh letter to California's Governor Newsom expressing their concerns about the potential economic impact of SB 950.
Arizona Governor Katie Hobbs and Nevada's Governor Joe Lombardo caution that the bill, up for consideration in a special session could, hamper economic growth and result in gas price increases. "Arizonans are struggling with the high cost of living, we can’t afford yet another price hike," Hobbs stated in the letter. Lombardo echoed these sentiments, emphasizing that "Lowering fuel costs is a bipartisan issue," and criticized California for policies that might lead to regional economic turmoil.
The letter drafted by the governors cites a report by the California Energy Commission pointing to the bill's potential to "artificially create shortages in downstream markets." The shortage, they argue, could boost gas prices not just in California, but notably in neighboring states of Arizona and Nevada.
The governors' joint effort underscores serious reservations. Not only about California's legislative approach but also its implications for interstate relations. "The people of Nevada and Arizona should not have to foot the bill for California’s misguided policies," Lombardo argued, he critiqued the measures that could force Nevadans and Arizonans to deal with unintended financial burdens. The letter also highlights warnings from refiners who anticipate inventory mandates that could lead to supply shortages— and even possible refinery shutdowns.
The correspondence serves as a plea for a regional approach to fuel cost discussions. Both Hobbs and Lombardo ask Governor Newsom to reconsider the potential repercussions of the bill during California's special legislative session, urging that their states be included in further policy deliberations.
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