Nevada governor fires warning shot at Gavin Newsom over oil crisis: 'Real-world consequences'

"Nevada is structurally dependent on California's refining system. Nevada relies on California for approximately 88% of its transportation fuels - gasoline, diesel and jet fuel. These fuels are supplied mainly via the CALNEV Pipeline, which connects Southern California refineries to Las Vegas. While Nevada has limited oil production of its own, it is almost entirely dependent on California's refining capacity."

"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. Given additional tension in the Middle East, the situation is particularly pressing."

"The letter is in response to draft regulations tied to the state's Cap-and-Invest Program, overseen by the California Air Resources Board, which sets a statewide cap on greenhouse gas emissions and requires major polluters to purchase allowances for each ton of carbon they emit."

Nevada Governor Joe Lombardo expressed serious concerns to California Governor Gavin Newsom regarding California's Cap-and-Invest regulation and its potential impact on fuel supply stability across the Western United States. Nevada is structurally dependent on California's refining system, obtaining approximately 88% of its transportation fuels—gasoline, diesel, and jet fuel—primarily through the CALNEV Pipeline connecting Southern California refineries to Las Vegas. With limited oil production capacity, Nevada relies almost entirely on California's refining infrastructure. Lombardo requested that any major policy changes affecting California's refinery economics account for real-world consequences to neighboring states. The letter was prompted by draft regulations from the California Air Resources Board's Cap-and-Invest Program, which establishes greenhouse gas emission caps and requires major polluters to purchase allowances.

Read at California Post