Nevada Governor Says California’s Emissions Regulations Affect Regional Fuel Availability and Cost

     Nevada Gov. Joe Lombardo recently stated that California’s proposed climate program has the potential to disrupt fuel supplies across the region, including in his state. Nevada buys refined oil from California and is thus compelled to pay higher prices due to California’s air quality regulations, which exceed those of other states. In a letter to Governor Gavin Newsom, Lombardo wrote:

"I write to you now to express concerns regarding the California Air Resources Board's (CARB) draft Cap-and-Invest regulation and raise awareness around the significant implications it may have for fuel supply stability across the Western United States, particularly for Nevada."

     He noted that Nevada was structurally dependent on California’s refineries for gasoline, diesel, and jet fuel, and there was not a scalable alternative source available.  

"As a result, policy decisions that materially affect refinery operations in your state directly and immediately impact fuel availability, pricing, and economic stability in Nevada," he wrote.

     He also noted that even before the rule, several important refineries in California had shut down, seemingly for good, due to regulatory pressures. The result is likely to be very high fuel prices for Californians, Nevadans, and those living in other states dependent on California’s refineries for supply. Other possibilities include marine imports.

"Increased reliance on marine imports would expose our state and residents to international supply disruptions, port congestion, weather events, and geopolitical instability."

     This week’s gasoline prices were $5.336 a gallon in California, compared with $4.363 in Nevada and a national average of $3.578.

He urged Newsom's administration to "carefully evaluate the regional consequences of the draft Cap-and-Invest regulation before final adoption."

"My request is straightforward: any major policy change that could alter refinery economics in California must account for the real-world consequences to neighboring states that depend on that infrastructure," Lombardo wrote.

"Fuel affordability and availability are foundational to economic stability, interstate commerce, and national security across the Southwest. Given additional tension in the Middle East, the situation is particularly pressing," he added.

     This shows without a shadow of a doubt that climate policies hurt affordability for Americans. The California Air Resources Board (CARB), which proposed the regulations, does have some justification in terms of providing slightly better air quality for Californians. However, fuel supply stability may increase for them as well as those in nearby states.

 

      

References:

 

Nevada Gov.: Calif. emissions plan risks regional fuel supply. Theodore Bunker. Newsmax. March 11, 2026. Nevada Gov.: Calif. emissions plan risks regional fuel supply