Nevada Governor Lombardo Appoints Fuel Resiliency Committee to Counter California’s Radical and Punitive Energy Policies

In an offensive move underscoring the ripple effects of California’s radical and punitive energy policies, Nevada Governor Joe Lombardo (R) announced today the appointments to the newly established Fuel Resiliency Committee. This statewide advisory body aims to bolster Nevada’s preparedness and response to potential fuel supply disruptions and anticipated price spikes originating from California, where refinery closures and stringent regulations have raised alarms about regional fuel stability. 

The committee, operating under the Nevada Homeland Security Commission, brings together a diverse group of stakeholders from state agencies, local governments, industry leaders, and emergency management partners. Its formation follows Lombardo’s October 2025 proposal for a Fuel Resiliency Subcommittee, which was prompted by the closures of major California refineries, exposing Nevada to risks of fuel shortages, price spikes, and infrastructure bottlenecks.  

At that time, Lombardo said that the formation of this committee was “to protect Nevada’s future.”

Nevada, heavily reliant on imported fuels from its blue, western neighbor, has seen these threats intensify as California pursues policies that prioritize radical environmentalism over energy security.

“Nevada’s economy and public safety depend on reliable access to fuel,” said Governor Lombardo in the press release issued this afternoon. “This committee ensures Nevada is proactively coordinating across sectors to strengthen preparedness and response.”

Committee membership includes representatives from key Nevada entities such as the Office of Emergency Management, Department of Transportation, Governor’s Office of Energy, Public Utilities Commission, Governor’s Office of Economic Development, Department of Agriculture, Department of Business and Industry, Division of Minerals, and Division of Environmental Protection. 

Legislative and local government participants are also involved, coordinated through the Nevada Association of Counties.

On the industry side, the group spans the entire fuel supply chain, featuring major players like HF Sinclair, Kinder Morgan, Chevron, Shell USA, Phillips 66, Marathon Petroleum, PBF Energy, and U.S. Energy. Fuel retailers are represented by the Energy and Convenience Association of Nevada, transportation logistics by the Nevada Trucking Association, rail providers by Union Pacific Railroad, and airport operations by the Reno-Tahoe Airport Authority.

The committee’s focus will be on identifying vulnerabilities in Nevada’s fuel supply and distribution systems, enhancing coordination between public and private partners, reviewing emergency response and contingency plans, and exploring infrastructure expansions to modernize and improve statewide preparedness and readiness. 

The first meeting is scheduled for January 13.

This initiative comes amid growing concerns over California’s energy policies which have led to a wave of refinery shutdowns and production declines. 

For instance, Phillips 66 ceased petroleum production at its Los Angeles facility in October 2025, Valero plans to shutter its Benicia refinery by April 2026, and Chevron announced its relocation to Texas in August 2025. These closures represent a 21 percent drop in California’s refinery capacity from 2023 levels, exacerbating supply shortfalls and driving up costs. 

Experts warn that California’s gas prices could surge 75 percent to $8.43 per gallon in 2026 due to these shutdowns, with potential worst-case scenarios reaching $12 per gallon amid increased reliance on foreign imports and logistical strains.  

A recent study on Senate Bill 237, aimed at stabilizing oil production in Kern County, highlights that even with new drilling permits, statewide production will continue to decline, leading to higher transportation costs, port congestion, and vulnerability to disruptions. California’s dependency on foreign oil has spiked 69 percent since 2001, increasing risks of spills, emissions, and price volatility that impact neighbors like Nevada and Arizona. 

California’s punitive oil and gas policies impose heavy restrictions on the industry, contributing to these challenges and posing a “clear and present threat to national security.” Refinery costs and profits alone add nearly $1 per gallon to retail prices, compounded by regulations like Cap and Trade and excise taxes. Valero’s exit from California, incurring $1.1 billion in charges, further underscores the exodus driven by these policies.

The impacts on Nevada are direct: As California supplies fuels to Nevada and Arizona, reduced exports could lead to an unstable market with higher prices and shortages. Western governors, including those from Nevada, have opposed measures like Governor Gavin Newsom’s gas bill (see below), warning it could create artificial shortages across the region by forcing refiners to withhold fuels.

In response to these threats, private sector efforts like the Phillips 66 and Kinder Morgan Western Gateway Pipeline—launched to transport up to 200,000 barrels per day of refined products from Texas to California, Arizona, and Nevada—aim to mitigate anticipated shortfalls and provide some stability. 

The Globe will continue to extensively cover the outcomes of Governor Gavin Newsom’s and the super-majority Democratic legislature’s energy policies emanating from Sacramento and the effects of those policies  on California, Arizona and Nevada.

Western Governors Oppose Gavin Newsom’s Gas Bill Pushing Venezuela-like Price and Inventory Controls on Oil Refineries