Governor Katie Hobbs (D-Arizona) & Governor Joe Lombardo (R-Nevada), September 10, 2024
“… we’re concerned that mandating refinery inventory would directly raise the cost of fuel for all of our constituencies and create further economic instability in the region.”
“In their recent report, the California Energy Commission (CEC) explicitly states that SB-950, now introduced 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.”
International Union of Operating Engineers, September 11, 2024
“Simply put, requiring refineries to store weeks of surplus refined fuel will likely lead to further production shortages. Our concerns regarding this issue were further exacerbated when the CA Energy Commission reported that a policy such as the one contained in AB X2-1 may artificially create shortages in downstream markets.”
International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers, September 12, 2024
“The assertion that these turnarounds are being planned to create supply constraints and profits is ridiculous. Every time there is an outage or an extension of scheduled maintenance, this costs the affected refinery materially.
“It also bears mentioning that all refineries are subject to extensive state and federal regulation, making it unlawful to conspire to increase profit or to short supply to impact pricing.”
Politico, September 17, 2024
“Arizona Gov. Katie Hobbs, a Democrat whose state gets nearly half of its gas from California, teamed up with Nevada Gov. Joe Lombardo, a Republican, last week to tell Newsom in a public letter that it could drive up prices.”
The Wall Street Journal, September 13, 2024
“It is evident that increased regulatory burdens on refiners and forced supply shortages will result in higher costs for consumers in all of our states,” Governor Lombard and Governor Hobbs.
“The golden State’s burdensome climate regulations and permitting headaches have caused seven California refineries to cease production over the last decade, shrinking supply. This has also pushed up gas prices. Whenever a refinery has problems, prices spike.”
“Mr. Newsom’s legislation would force refiners to produce extra gasoline merely to store it, which would be expensive. Gasoline has a shelf life of three to six months, so refiners would have to constantly produce more fuel for storage. This would reduce supply and increase prices.”
@GasBuddyGuy on X, September 18, 2024
“The proposal is [severely] misguided and threatens #gasprices even more as well as supply to other states that rely on Cali. Additional regulations is the wrong way. DE-regulate and let the MARKET solve the problem.”
Las Vegas Review-Journal, September 6, 2024
“Mr. Newsom’s economic illiteracy is potentially a major problem for Nevada too. The vast majority of the state’s gasoline comes from California. If Mr. Newsom’s ill-conceived regulations further limit refineries, Nevada prices could soar even higher.
“If Mr. Newsom wants to know who to blame for California’s high gas prices, he should look in the mirror.”
