Nevada Gov. Joe Lombardo (R-NV) is warning that California’s climate policies could have ripple effects beyond its borders, cautioning that changes to the state’s oil regulations may threaten fuel supplies across the West.
In a letter dated Monday to California Gov. Gavin Newsom (D-CA), Lombardo expressed concern about proposed changes to the state’s cap-and-trade framework being considered by the California Air Resources Board. He urged his Democratic counterpart to ensure regulators consider how the policy might affect neighboring states that rely on California’s refining network.
Lombardo also emphasized that his state’s energy infrastructure is closely tied to California’s fuel system, noting that it depends on California refineries for the vast majority of its transportation fuels.
About 88% of Nevada’s gasoline, diesel, and jet fuel is supplied by California, most of it shipped through the CALNEV Pipeline that carries refined fuel from Southern California refineries to Las Vegas. Because Nevada produces very little oil of its own, it depends heavily on California’s refining network to keep its fuel supply flowing.
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Lombardo’s warning comes as gasoline prices in California continue to climb. California gas prices for a gallon of unleaded rose again overnight to $5.33 from $5.29, according to AAA. A week ago, it was $4.73, and a month ago, $4.52. In Nevada, the average price for a gallon of regular now stands at $4.36. The average nationwide is $3.58, up more than 27 cents since the start of March.
Lombardo said his message to Newsom was simple: policy decisions that significantly affect California refineries could also disrupt fuel supplies for nearby states.
He argued that any regulatory shift that alters the economics of refining in California must account for the downstream effects across the region. With geopolitical tensions in the Middle East adding uncertainty to global energy markets, Lombardo said the issue is particularly urgent.
The Nevada governor’s concerns center on draft revisions to California’s Cap-and-Invest Program, administered by CARB. The system places an overall limit on greenhouse gas emissions and requires major polluters to buy allowances for each ton of carbon they release.
According to the California Energy Commission, the program currently adds about 24 cents per gallon to the price of gasoline sold in California.
Pressure on regulators is also coming from within Newsom’s own party. Fifteen Democratic members of the California State Assembly — many of whom voted last year to extend the state’s cap-and-invest framework — are now asking CARB to reconsider a proposed update they fear could further strain the energy market and push fuel prices even higher.
In a letter sent Monday, the group of lawmakers called on the agency to revisit planned amendments to the cap-and-invest system affecting fuels, natural gas, and electricity.
Lombardo has been endorsed by President Donald Trump twice. The governor, who was once the Clark County sheriff, has touted his “ability to communicate” with Trump as a reason to reelect him in November.
