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Governors of Arizona and Nevada urge Newsom to delay oil and gas projects

The governors of Arizona and Nevada sent a letter to Gov. Gavin Newsom on Tuesday urging him to reconsider and delay implementation of his proposal that would establish new reserve storage requirements for oil refineries in California. In the letter, Arizona Gov. Katie Hobbs (Democrat) and Nevada Gov. Joe Lombardo (Republican) referenced the California Energy Commission's assessment of the proposal, which said it “could artificially create bottlenecks in downstream markets,” which would increase costs for Arizona and Nevada consumers. Read the letter here. “This conclusion alone is deeply troubling and warrants bipartisan, regional communication on this legislation before it moves forward,” Hobbs and Lombardo wrote. “While we have different policy agendas as governors, we all share a sincere concern for the concerns and well-being of our constituents. “No doubt we too are all concerned about high fuel costs and their impact on communities across our states,” the governors wrote. “However, we are concerned that requiring inventory at refineries would directly increase fuel costs for all of our constituents and further increase economic instability in the region.” Newsom, who spent Tuesday in Philadelphia before heading to New York for the presidential debate, called a special session of the House for Aug. 31 so California lawmakers can consider his proposal. The governor is urging lawmakers to consider it as his administration prepares for gasoline price spikes for California customers that he said typically occur this time of year. In a post on X Tuesday afternoon, his office signaled that the governor would not let up. “Allowing big oil companies to rip off Californians at the pump to pad their profits is not an option,” the post said. “When California refineries choose not to replenish their supplies when they go offline, it leads to price spikes — both here in California and in Arizona and Nevada. Our proposal will save consumers — including those in Arizona and Nevada — hundreds of millions of dollars each year by helping to prevent those price spikes. It's time to act.” Assembly Speaker Robert Rivas on Wednesday announced a series of hearing dates later this month to discuss the measure, with a floor vote scheduled for Oct. 1. State Sen. Mike McGuire initially declined to let senators return to Sacramento to discuss the measure, while saying Newsom's proposal “has the votes” in his house. McGuire said last week that the state Senate would be ready to convene if the Assembly takes action. Neither McGuire nor Rivas responded to a request for comment on the neighboring governors' letter by Tuesday afternoon. For more coverage of California's top political stories, click here | Download our app | Subscribe to our morning newsletter

SACRAMENTO, California —

The governors of Arizona and Nevada sent a letter to Gov. Gavin Newsom on Tuesday urging him to reconsider and delay his proposal to impose new reserve storage requirements for oil refineries in California.

In the letter, Arizona Governor Katie Hobbs, a Democrat, and Nevada Governor Joe Lombardo, a Republican, cited the California Energy Commission's assessment of the proposal, saying it could “artificially create bottlenecks in downstream markets,” leading to higher costs for consumers in Arizona and Nevada.

“This conclusion alone is deeply troubling and warrants bipartisan, regional communication on this legislation before moving forward,” Hobbs and Lombardo wrote.

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“While we as governors have different policy goals, we genuinely care about the concerns and well-being of our constituents. Undoubtedly, we too are all concerned about the high cost of fuel and its impact on communities across our states,” the governors wrote. “However, we are concerned that requiring refinery inventories would directly increase fuel costs for all of our constituents and further increase economic instability in the region.”

Newsom, who spent Tuesday in Philadelphia before heading to New York for the presidential debate, called a special session of the House for Aug. 31 so California lawmakers can consider his proposal. The governor is urging lawmakers to consider the proposal as his administration prepares for gasoline price spikes for California consumers that he said typically occur this time of year.

In a post on X on Tuesday afternoon, his office hinted that the governor would not let up.

“Allowing oil companies to rip off Californians at the pump to boost their profits is not an option,” the post said. “When California refineries choose not to replenish their supplies when they go offline, it leads to price spikes – both here in California and in Arizona and Nevada. Our proposal will save consumers – including those in Arizona and Nevada – hundreds of millions of dollars each year by helping to prevent these price spikes. It's time to act.”

This content is imported from Twitter. You may be able to find the same content in another format, or you may be able to find more information, at their site.

House Speaker Robert Rivas announced on Wednesday a series of hearings later this month to discuss the measure, with a vote in the plenary session scheduled for October 1.

This content is imported from Twitter. You may be able to find the same content in another format, or you may be able to find more information, at their site.

Rep. Mike McGuire initially declined to let senators return to Sacramento to discuss the measure, while saying Newsom's proposal “has the votes” in his house. McGuire said last week that if the Assembly takes action, the Senate is ready to convene.

Neither McGuire nor Rivas responded to a request for comment on the letter from the governors of neighboring states by Tuesday afternoon.

For more reports on California’s most important political issues, click here | Download our app | Subscribe to our morning newsletter

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