LAS VEGAS (KTNV) — Nevada Gov. Joe Lombardo has reached out to the California governor hoping to prevent higher gas prices across both states.
"As you know, both of our states have gas prices far above the national average for a variety of factors, including regulatory burdens, taxes and pipeline accessibility," Lombardo wrote in a letter addressed to Gov. Gavin Newsom. "Since 88% of Nevada's fuels are delivered via pipeline and truck from refineries in California, it's no surprise that California's fuel policies significantly impact the costs and availability of fuel for Nevada's residents and businesses."
Lombardo went on to address some consequences of California's SBX1-2legislation.
Senate Bill X1-2, the California Gas Price Gouging and Transparency Law, protects Californians from experiencing price gouging at the pump by oil companies. The law was signed by Governor Gavin Newsom in March 2023 after consumers experienced some of the highest gasoline prices ever recorded in California in fall 2022.
Lombardo continued on in his letter to Newsom that the new legislation could result in a profits cap structure and expressed concern that this could lead to a decrease in the fuel supply in the southwest.
"Should this happen, I am sure Californians and Nevadans would share a demand for answers and relief from higher fuel costs and the impacts those costs could have across the economy," the letter said. "Before proceeding with a profits cap, I would request an assessment of potential impacts of this approach across the West, including not only California, but Nevada and Arizona too."
Lombardo even offered assistance from Nevada's Office of Energy to the California Energy Commission.
Tuesday evening, Channel 13 received a response from Gov. Newsom's office, which follows in full:
“This is a stunt to appease Governor Lombardo’s Big Oil donors, who contributed tens of thousands of dollars to his campaign. He’s parroting their talking points, and he knows full well that oil refiners are driving up gas prices and making massive profits — harming residents of both of our states. Price spikes are profit spikes, and California is holding Big Oil accountable.”
Read Lombardo's full letter below:
Governor Lombardo urges Gov. Gavin Newsom to complete regional assessment, prevent higher gas prices by yolanda.cruz on Scribd
