Nevada Gov. Joe Lombardo warned Monday that proposed changes to California's climate program could disrupt fuel supplies across the West, underscoring how heavily Nevada and other neighboring states depend on California's shrinking refining network.
"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," Lombardo wrote in an open letter to California Gov. Gavin Newsom.
Lombardo is a Republican, Newsom a Democrat.
Lombardo added that he would also like "to request your support encouraging CARB to weigh the regional implications of changes to the Cap-and-Invest regulations."
He noted that "Nevada is structurally dependent on California's refining system" and warned that "a significant portion of the gasoline, diesel, and jet fuel consumed in Nevada originates from California refineries."
Lombardo warned, "There is no readily available alternative supply network that can replace California's production at scale.
"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."
The dispute comes as the California Air Resources Board advances proposed 2026 amendments to the program, formerly known as Cap-and-Trade, with a public hearing scheduled for May 28. CARB says Cap-and-Invest is central to the state's strategy for cutting greenhouse gas emissions.
Lombardo said the draft rule "introduces substantial new compliance costs and operational uncertainty for refiners already operating in one of the most tightly regulated environments in the country.
"At a time when several California refineries have closed or announced conversions away from petroleum refining, additional cost pressures may accelerate further capacity reductions.
"Even a single additional closure would have outsized effects on regional supply."
Lombardo also warned that Nevada lacks the means to make up for lost California output.
"Nevada does not have the infrastructure to quickly replace lost California refining capacity," he wrote.
"Increased reliance on marine imports would expose our state and residents to international supply disruptions, port congestion, weather events, and geopolitical instability.
"The geographic isolation of the West Coast fuel market makes it uniquely vulnerable to shortages and price volatility when refining capacity tightens."
The warning comes as gasoline prices remain elevated in the region. AAA listed California's average price for regular gasoline at $5.336 a gallon on Wednesday compared with $4.363 in Nevada and a national average of $3.578.
Lombardo framed the issue as an economic and security concern, writing that "fuel security is a matter of public safety and national security" and noting Nevada is home to military sites, emergency response operations, and major tourism and freight corridors dependent on steady fuel deliveries.
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.
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
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