PHOENIX — The Western States Petroleum Association is warning California that a proposed policy affecting the Golden State's gasoline inventories could have a negative effect on the Grand Canyon State.
In a letter sent this week to the California Energy Commission, the association expressed opposition to a proposal that would expand inventory requirements for California refineries.
These proposed inventory levels would "create sustained gasoline price increases" by generating new capital costs, the association told the commission.
"Gasoline that could be supplied to California, Arizona, and Nevada consumers might need to be kept off the market, creating shortages and inflating costs for drivers today," the association wrote in its letter.
Gov. Gavin Newsom was contemplating holding a special legislative session focused solely on gas prices this fall. But the last-minute gas proposals have been met with opposition from members of Newsom's party, ABC10 reports.
A group of Arizona lawmakers have recently penned a letter to Newsom, telling the governor that the proposed storage requirements could have national implications on the cost of fuel.
Since so much of Arizona's fuel comes from California refineries, the lawmakers fear how new policy proposals could potentially disrupt the state's supply.
"When it comes to energy policy, California politicians often rush to pile policy on top of policy without assessing the impacts to people in their state, the West and around the country," the letter states.
The letter was signed by 12 Republican lawmakers including Arizona House Speaker Ben Toma.