PHOENIX Ariz. –
A bill that Governor Gavin Newsom signed into law intends to reduce gas prices for Californians may have unintended consequences for Arizonans.
Unfortunately, Arizona’s gas supply is highly dependent on these very refineries, and this new California law will limit the quantity of gas they are obligated to maintain and oversee their maintenance.
There was a $2.61 rise when global crude prices leveled out or fell. Nevadans and Arizonans are quite worried about that, according to Governor Newsom.
Arizona Governor Katie Hobbs and Nevada Governor Joe Lombardo wrote to Governor Newsom in September to express their concerns that the law would lead to gas shortages and price increases in their respective states.
“They expressed only concerns, and understandably so because the impacts on those gas price spikes in California, impact their prices directly,” he added.
In an effort to find common ground, Governors Hobbs and Lombardo pleaded with Governor Newsom to put the bill on hold.
A recent assessment from the California Energy Commission states that the law might “artificially create shortages in downstream markets,” meaning that states like Arizona could be affected.
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“What I can say to them is now we have the tools, and we have a process where the [California Energy Commission] will deeply analyze all the considerations and concerns, do a cost-benefit analysis, and provide a tool that has not existed in the past to address those spikes,” he added.
Californians should start to feel the effects by next summer, according to Governor Newsom. When exactly this ruling might affect Arizonans is unknown.
We have also contacted the office of Governor Hobbs regarding this matter, but have not received a response as of yet.
