Nevada, Arizona Oppose CA Gasoline Storage Proposal

You may have heard about the plan California Governor Gavin Newsom has come up with.  He is calling on the California Legislature to require refineries in California to begin storing gasoline in case it is needed in the future.  That would function much in the way that crude oil is stockpiled in the United States. Well that proposal is not sitting well with Nevada Governor Joe Lombardo and Arizona Governor Katie Hobbs.

They have sent a  joint letter to Newsom,  expressing concerns about this proposal, saying if California imposes Newsom’s proposal on oil companies, it will cause fuel priced to go up, and disrupt the regional economy.

In their letter, Governors Lombardo and Hobbs quote the California Energy Commission which has explicitly stated that Newsom’s gasoline storage idea may artificially create gasoline  shortages in downstream markets.  Lombardo and Hobbs say it will raise fuel costs for people in Nevada and Arizona.

Lombardo and Hobbs call this eventuality deeply troubling.  They say the people of Nevada and Arizona should not have to foot the bill for California’s misguided policies.

Governor Katie Hobbs of Arizona, herself a liberal Democrat says  “Arizonans are struggling with the high cost of living, we can’t afford yet another price hike,” said Governor Katie Hobbs. “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.  

Hundred dollar bills stuffed into an SUV’s gas tank.

Photo from Alpha Media Portland OR