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Governor Lombardo Raises Concerns Over California Fuel Legislation

By TheNevadaGlobeStaff, May 14, 2024 6:42 pm

Governor Joe Lombardo of Nevada has expressed his apprehensions regarding the potential impacts of California’s SBX1-2 legislation on fuel prices in the region.

In a letter addressed to California Governor Gavin Newsom, Lombardo highlighted the concerns about the unintended consequences that the legislation could bring, affecting not only California but also neighboring states like Nevada and Arizona.

The SBX1-2 legislation has raised alarms due to its potential to further escalate gas prices in California, Nevada, and Arizona. Lombardo emphasized that Nevada heavily relies on fuel deliveries from Californian refineries, with approximately 88 percent of its fuels transported via pipeline and trucks from across the border. Consequently, any fuel policy changes in California significantly influence fuel costs and availability in Nevada.

Expressing concerns over the newly created state agency and its potential implementation of a profits cap structure, Lombardo cautioned that such measures might lead to constrained fuel supplies or even the exit of refiners from the market. This, in turn, could result in limited fuel availability and increased costs for consumers in both California and Nevada.

Governor Lombardo urged Governor Newsom to assess the potential impacts of the profits cap approach across the Western region, including Nevada and Arizona. He also offered the assistance of Nevada’s Office of Energy in engaging with the California Energy Commission to address these concerns proactively.

The letter comes ahead of the California State Assembly Utilities & Energy Committee hearing, where the California Energy Commission will provide updates on the SBX1-2 legislation’s implementation. Lombardo’s initiative underscores the importance of collaboration and coordination between neighboring states to mitigate adverse effects on consumers and the economy.

As discussions unfold regarding fuel policies, stakeholders await further developments and potential actions to address the challenges posed by SBX1-2.

Credits: Fox5Vegas

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