Expressing concerns that ABX2-1 and similar legislation would raise fuel prices and disrupt the regional economy, Governor Lombardo and Governor Hobbs write in their letter, “In their recent report, the California Energy Commission (CEC) explicitly states that SB 950, now reintroduced as ABX2-1, ‘may artificially create shortages in downstream markets,’ which would raise costs for consumers in Arizona and Nevada. This conclusion alone is deeply troubling and warrants bipartisan, regional communication on this legislation before proceeding.”

“The people of Nevada and Arizona should not have to foot the bill for California’s misguided policies — especially when it comes to higher gas prices,” said Governor Joe Lombardo. “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. I urge Governor Newsom and the California legislature to reconsider this harmful legislation during their special session and to include Nevada and Arizona in policy discussions moving forward.”

“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. I’m glad to work with Governor Lombardo on this critical issue, and hope we can come together as a region to deliver lower fuel costs to all of our constituents.”

Governor Hobbs and Governor Lombardo conclude their letter, writing, “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. Both the Arizona Governor’s Office of Resiliency and the Nevada Governor’s Office of Energy stand ready to assist in finding viable regional energy solutions that lead to lowered fuel costs.

The joint letter is attached.