Governor Katie Hobbs Writes Joint Letter With Nevada Governor Lombardo Opposing California Bill Restricting Arizona Fuel Supply

Phoenix, AZ - On September 10, 2024, in a bipartisan and joint effort to address escalating fuel costs and ensure regional economic stability, Governor Katie Hobbs co-authored a letter with Governor Joe Lombardo to Governor Gavin Newsom of California, urging a reassessment of SB 950. The bill, currently under consideration during California’s special legislative session, threatens to cut the supply of gasoline from California to Arizona and Nevada and could hike gas prices for consumers in the states.

“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.”

“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.”

Citing a recent California Energy Commission (CEC) report, the letter highlights that SB950 “may artificially create shortages in downstream markets,” potentially inflating gas prices for consumers in both Arizona and Nevada.

The letter also states a warning from refiners regarding inventory mandates that could lead to supply shortages and possible refinery shutdowns which both governors believe further underscores the urgency of this matter.

You can read the letter here.