Nevada Fuel Resiliency Committee Releases Recommendations to Strengthen Nevada’s Fuel Supply and Protect Consumers from Price Hikes and Disruptions

CARSON CITY, Nev – The Nevada Fuel Resiliency Committee announced a series of recommendations aimed at strengthening the state’s fuel supply, reducing dependence on California, and protecting Nevada consumers and businesses from supply disruptions and price volatility.

Established at the direction of Governor Lombardo, the Fuel Resiliency Committee was tasked with identifying vulnerabilities in Nevada’s fuel supply chain and developing strategies to ensure the state can maintain reliable access to gasoline, diesel, and aviation fuel during emergencies.

“Nevada cannot afford to be overly dependent on California for the fuel that keeps our economy moving,” said Governor Joe Lombardo. “When supply is disrupted, Nevada families and businesses feel the impact at the pump and across our economy. My administration is doing the work to provide a path forward to diversify our fuel supply, increase our reserves, and decrease costs while ensuring we are prepared to respond during emergencies.”

Nevada currently imports nearly all of its transportation fuel, with the vast majority arriving through pipeline systems originating in California. The state typically maintains only about seven days of fuel supply in its distribution terminals, leaving Nevada vulnerable to prolonged pipeline disruptions, refinery closures, and other emergencies.

“Our goal is simple: keep Nevada moving,” said Brett Compston, Chief of Emergency Management / Homeland Security for the State of Nevada. “The Fuel Resilience Committee has brought government and industry together to diversify fuel supplies, strengthen infrastructure, and prepare for emergency disruptions.”

The committee’s recommendations center on three primary priorities:

Diversifying Nevada’s Fuel Supply

• Support pipeline projects that would bring additional fuel supplies into the region, including the Western Gateway Project and proposed expansions to the UNEV pipeline system.

• Develop the infrastructure necessary to receive transportation fuel by rail, providing an alternative to pipeline deliveries during prolonged disruptions.

• Explore opportunities to expand existing rail receipt capabilities through private-sector partnerships.

• Evaluate opportunities to establish additional supply connections with neighboring states and regional fuel markets.

Increasing Strategic Fuel Reserves

• Work toward increasing Nevada’s available fuel supply from approximately seven days to 14 days through additional storage capacity in Nevada and neighboring states.

• Identify opportunities to expand storage at existing fuel terminals and develop new storage facilities, including in more isolated areas of the state.

• Pursue public-private partnerships and potential state and federal funding opportunities to support additional storage infrastructure.

Strengthening Emergency Preparedness

• Establish clear emergency protocols to prioritize fuel distribution for first responders, critical infrastructure, and the movement of essential goods during a supply disruption.

• Develop emergency agreements with fuel suppliers, terminal operators, transportation companies, and retailers to maintain access to fuel during declared emergencies.

• Identify and prepare necessary state and federal regulatory waivers to accelerate fuel deliveries and allow available fuel supplies to be used when normal requirements impede emergency response.

• Identify critical fueling locations and facilities that may need backup generator capabilities.

• Develop contingency plans for alternative fuel transportation, including identifying temporary rail transfer sites that could begin operating within 72 to 96 hours.

Read the initial report from the Fuel Resiliency Committee

“Under Governor Lombardo’s strategic leadership, the Fuel Resiliency Committee is bringing key stakeholders together to diversify Nevada’s fuel supply, strengthen critical infrastructure, enhance energy security, and ensure our state is prepared for future emergencies,” said Cathy Reheis-Boyd, Vice-Chair of the Fuel Resiliency Committee. 

The recommendations build on actions Governor Lombardo has taken to strengthen Nevada’s fuel supply and protect Nevadans from policies that could drive fuel costs higher.

• September 2024: Governor Lombardo and Arizona Governor Katie Hobbs sent a joint letter urging California Governor Gavin Newsom to halt legislation they warned would increase gas prices for Nevadans and Arizonans. Following the letter, Governor Newsom directed the California Energy Commission to engage with Nevada and Arizona in regional discussions on fuel supply and affordability.

• October–December 2025: Governor Lombardo advanced the creation of a Fuel Resiliency Subcommittee under the Nevada Commission on Homeland Security. The Commission approved the committee in December 2025, establishing a coordinated effort to identify vulnerabilities and develop solutions to strengthen Nevada’s fuel supply chain.

• January 2026: Governor Lombardo announced appointments to the Fuel Resiliency Committee, bringing together state agencies, legislators, local governments, and representatives from across the fuel industry. The committee held its inaugural meeting on January 13 and began its work to develop recommendations for the Governor.

• March 2026: Governor Lombardo wrote to Governor Newsom raising concerns about proposed California Air Resources Board (CARB) Cap-and-Invest regulations and their potential effects on fuel stability across the Western United States, particularly in Nevada. Fifteen Democratic Assemblymembers from California joined the Governor in voicing their concerns. The California Air Resources Board subsequently met with Nevada’s Fuel Resiliency leadership team to hear those concerns, and the Governor’s Office engaged with the Newsom administration on the issue.

• August 2026: Governor Lombardo signed a memorandum of understanding with the Federal Permitting Improvement Steering Council to improve coordination between state and federal agencies and streamline permitting. The partnership addresses permitting challenges raised by the Fuel Resiliency Committee and is intended to provide greater regulatory certainty for critical infrastructure projects.

• October 2026: Governor Lombardo announced that Nevada would align its enforcement practices with President Trump’s temporary executive order expanding the permitted highway use of red-dyed diesel. The action gives eligible Nevadans the opportunity to take advantage of the temporary tax relief without fear of state penalties for complying with federal guidance.

• October 2026: The Governor’s Office requested two opinions from the Nevada Attorney General to clarify the state’s legal authority to own strategic fuel reserves and liquid-fuel infrastructure capacity, including whether reserves could be located in Nevada or another state.