Nevada Governor Seeks to Establish Committee Focused on Fuel Stability
Nevada Gov. Joe Lombardo is seeking to create a committee that will focus on strengthening the state’s fuel supply by reducing “vulnerabilities to regional and national disruptions,” a news release from the governor’s office said on Thursday.
Lombardo will propose a resolution to the Nevada Commission on Homeland Security for a Fuel Resiliency Subcommittee in the upcoming commission meeting.
Nevada “entirely relies” on imported fuel for transportation, the governor’s office said in the release.
With closures expected for two major California refineries – Valero Energy’s 145,000 b/d plant in Benicia, Calif., next spring and Phillips 66’s 156,000 b/d Los Angeles refinery by the end of 2025 – Lombardo’s office said Nevada businesses and consumers could be “significantly impacted.”
The two facilities account for about a combined 17% of California fuel production capacity, according to the California Energy Commission.
“Energy security is national security and that includes ensuring Nevadans have reliable access to the fuel that keeps our economy and communities running,” Lombardo said in the release. “This subcommittee will bring together state, industry, and federal partners to develop long-term strategies that strengthen our infrastructure, diversify supply routes, and protect Nevada’s future.”
Nevada imports roughly 88% of its fuel from California, according to a June report from California-based transportation fuels consulting firm Stillwater Associates.
Nevada also has some of the highest retail prices in the nation, according to AAA data. The state’s average retail price for regular gasoline is $3.865/gal as of Friday, while the national average is $3.051/gal.
The resolution, if approved by the Nevada Commission on Homeland Security, will establish the subcommittee to tackle its main aims, which include conducting assessments of Nevada’s current and projected fuel supply, exploring options to expand infrastructure and recommending policies to increase emergency responses to fuel shortages.
The subcommittee would also coordinate with the Federal Permitting Improvement Steering Council, the Department of Energy and the Department of Transportation, to expand permitting and address barriers to infrastructure projects.
Nevada lawmakers have already taken notice of the state’s fuel dependency on California. In May, a bill (SB 505) in the Nevada Senate, introduced by Republican Sen. Robin Titus, aimed to create an 11-member Nevada Energy Resiliency Task Force, responsible for reducing the state’s dependence on fuel refined in California and reviewing possible fuel storage expansion in the state.
The bill failed to pass the state Senate on June 3.
Lombardo’s office called energy reliability a “critical component of homeland security,” as the planned subcommittee embarks on uniting public and private stakeholders to “safeguard the state’s economic and emergency preparedness.”
Findings and recommendations from the subcommittee could reach Lombardi and the Nevada Commission on Homeland Security in 2026, the release said.
Reporting by Shaheer Naveed, snaveed@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com