Editorial: Will Nevada drivers pay price for California's folly?

The Editorial Board, Las Vegas Review-Journal on Aug 11, 2025

Published in Op Eds

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California Democrats are slowly waking up to the consequences of their green energy pipe dreams. Let’s hope the epiphany can save Nevada from soaring gasoline prices.

As recently as last October, Golden State Gov. Gavin Newsom was beating up that reliable progressive bogeyman, Big Oil. California traditionally has the highest gasoline prices in the nation thanks to its heavy-handed regulatory approach and its outright hostility to traditional energy development. But Newsom preferred to ignore that glaring side of the equation and instead shook his finger at the industry for trying to make money.

“They have been raking in unprecedented profits because they can,” he said during a signing ceremony for a bill requiring refiners to store more gasoline to prevent shortages. ”They’ve been screwing you for years and years and years.” Newsom has also floated the idea of putting a cap on industry profits.

In response, two oil companies — Phillips 66 and Valero — announced recently they would shut down two refineries by next year that account for 17 percent of the state’s capacity. This threatens to limit supply for California motorists and drive gasoline prices higher.

“They have said that they cannot do business in the state of California,” Republican Assemblyman Mark Gipson told Moneywise. “The regulatory agencies have imposed on the refiners of California very stringent regulation that makes it very difficult for them to remain in the state of California.”

Many Democrats — including Newsom, who has national ambitions — suddenly recognize the political risks. “The reality is, if those refineries close and we have increased gas prices, it’s going to be a problem for everybody,” Andrew Acosta, a California Democratic consultant, told Politico. “Not just Gavin Newsom, but every Democrat running for office.”

Newsom, Politico reports, is now moderating his rhetoric and making overtures to keep the refineries open. He has even raised the idea of allowing more in-state drilling. “The about-face,” Politico noted, “is emblematic of Democrats’ course correction on cost-of-living issues in the wake of the presidential election — and provides a real-time demonstration of the political risks of pursuing an aggressive transition away from fossil fuels.”

Nevada gets nearly 90% of its gasoline from California refineries. At this point, there is no realistic alternative. That means Silver State drivers are defenseless against gasoline price spikes caused by California foolish energy policies.

Nevada Gov. Joe Lombardo has previously implored his California counterpart to consider the potential cross-border damage. With Newsom scrambling to avoid the uncomfortable reality of the green agenda, now might be a good time for him to reiterate those concerns.

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