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Top Stories from the California Energy Journal

Newsom Signs Energy Bills on Utility Rates, Distributed Power, and Grid Development (October 1, 2026) – Gov. Gavin Newsom signed legislation increasing scrutiny of utility costs, expanding access to distributed energy resources, and establishing new requirements for data centers before the September 30 deadline for action on bills from the 2025–2026 legislative session. Read more.

BLM Schedules December Oil and Gas Lease Sale Covering 35,000 Acres in California (October 2, 2026) – The U.S. Bureau of Land Management announced October 1 that it will offer 43 oil and gas parcels covering approximately 35,000 acres in Kern, Kings, San Luis Obispo, and Fresno counties at a December 1, 2026 lease sale. A public protest period is open through November 2, 2026. Read more.

California Challenges Trump Administration over Federal Fuel Economy Rollback (October 5, 2026) – California filed a lawsuit October 2, 2026 as part of a coalition of 26 states and local governments challenging the Trump administration’s final rule weakening corporate average fuel economy (CAFE) standards for new passenger cars and light trucks. Read more.

California News and Analysis

Grid and electricity markets

• Portland General Electric joins CAISO’s extended day-ahead market. PGE began participating in EDAM on October 1, expanding the regional market after PacifiCorp became the first outside utility to join earlier this year. The expansion increases the amount of Western generation and load participating in CAISO’s day-ahead optimization. California ISO, October 1, 2026.

Electricity rates and utilities

• CPUC will hold public forums on Bear Valley Electric’s general rate case. The CPUC announced forums on October 13 and October 27 on Bear Valley Electric Service’s request for new rates, providing customers an opportunity to comment on the utility’s proposed revenue requirement. California Public Utilities Commission, September 29, 2026.

Clean-energy manufacturing

• CEC-backed lithium-ion battery factory opens in Vista. American Lithium Energy opened an expanded 82,000-square-foot manufacturing facility in San Diego County, up from 23,000 square feet. The CEC provided more than $13 million through the Clean Transportation Program and EPIC to support battery-cell production and a pilot line for silicon-anode batteries. California Energy Commission, October 2, 2026.

California energy policy

Commentary and analysis

• California energy policy faces competing pressures as state manages transition. Analysts interviewed by S&P Global examine California’s energy-policy direction amid refinery closures, rising electricity and gasoline costs, oil-production declines, and efforts to maintain reliability while pursuing the state’s climate targets. The analysis considers how economic and affordability concerns are influencing the state’s approach to oil, refining, electricity, and the broader energy transition. S&P Global Commodity Insights, September 29, 2026.

Beyond California

Oil, refining, and infrastructure

• Global fuel-price shock increasingly reflects refining constraints rather than crude shortages. An analysis examines how refinery closures, limited global refining capacity, and disruptions to refined-product flows are contributing to elevated diesel and jet-fuel prices even as crude supplies improve. MarketWatch, October 2, 2026.

• Federal government offers another 40 million barrels from Strategic Petroleum Reserve. The Energy Department announced plans to offer loans of up to 40 million barrels of crude from the SPR as part of the international response to petroleum-market disruptions associated with the Iran conflict. The action is the final U.S. tranche of a broader coordinated IEA reserve release. Reuters, September 29, 2026.

Data centers and electricity demand

• FERC orders PJM to revise plan for meeting data-center-driven electricity demand. FERC accepted parts of PJM’s proposal for addressing a projected 6,800-MW capacity shortfall but suspended its backstop procurement mechanism for five months and ordered further proceedings over cost allocation and other issues. Reuters, September 30, 2026.

• Senate blocks federal data-center ratepayer legislation. The Senate voted 57–43 on the Ratepayer Protection Act, short of the 60 votes needed to advance the measure. The legislation, previously approved 417–3 by the House, sought to establish federal principles encouraging large electricity users to bear incremental infrastructure costs associated with their demand. Reuters, September 30, 2026.

• Conservation group seeks moratorium on AI data centers on federal land. The Wilderness Society called October 5 for a federal moratorium on AI data-center development on public lands, citing electricity, water, habitat, and public-access concerns. Reuters, October 5, 2026.

Electricity and utility ownership

• Lawmakers ask FERC to reject $33.4 billion AES acquisition. A bipartisan group of federal lawmakers asked FERC to reject the proposed acquisition of AES by BlackRock’s Global Infrastructure Partners, EQT, and other investors, raising concerns about electricity rates, private-equity returns, and potential conflicts involving data-center investments. AES says the transaction would not affect regulated utility rates and would improve access to capital. Reuters, September 29, 2026.

Federal permitting

• Senators unveil bipartisan energy permitting agreement. Senators announced a 417-page permitting package designed to accelerate approvals for transmission, renewable energy, fossil-fuel projects, mines, and other infrastructure. Reuters, September 30, 2026.

Climate litigation

• Supreme Court considers whether federal law blocks state climate-liability lawsuits. The U.S. Supreme Court heard arguments October 5 in an effort by ExxonMobil and Suncor Energy to block a Colorado lawsuit seeking damages for alleged climate-related harms. The outcome could affect climate-liability cases brought by state and local governments elsewhere, including California. Reuters, September 30, 2026; ABC News, October 5, 2026; Brief from State AGs.

Climate disclosure

• UK regulator drops plan for mandatory climate-transition disclosures by listed companies. Britain’s Financial Conduct Authority abandoned plans to require listed companies to publish climate-transition plans, shifting instead toward a comply-or-explain approach. Reuters, September 30, 2026.

Renewable energy

Commentary and analysis

• Renewable developers race to complete projects before federal incentives and deadlines tighten. U.S. renewable-energy developers are accelerating construction as changes in federal policy threaten tax incentives and impose new deadlines and restrictions on wind and solar projects. The near-term construction surge could be followed by a slowdown as projects face a more difficult federal policy environment. Axios, September 30, 2026.

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Top Stories from the California Energy Journal

California Sues to Block Second Morro Bay Offshore Wind Lease Buyout (September 23, 2026) – California filed a federal lawsuit September 22, 2026 seeking to block the Trump administration’s agreement to pay Invenergy $111.8 million in connection with the cancellation of its offshore wind lease near Morro Bay. The case follows California’s August 28 challenge to a separate agreement involving Golden State Wind’s Morro Bay lease. Read more.

CEJ Alert: Newsom Signs Seven Data Center Bills on Electricity Costs, Water Use, and Environmental Review (September 23, 2026) – Governor Gavin Newsom signed seven data center bills on September 21, establishing new requirements for electricity rates, energy and water reporting, and project approvals. Read more.

Environmental Groups Challenge Federal Safety Permit for Sable Pipelines (September 23, 2026) – Environmental groups filed a petition in the U.S. Court of Appeals for the Ninth Circuit on September 22, 2026, challenging a federal special permit for Sable Offshore Corp.’s Las Flores Pipeline System. The case contests a June 25 decision by the Pipeline and Hazardous Materials Safety Administration (PHMSA) that allows an alternative approach to meeting a federal corrosion-repair requirement. Read more.

CEJ Alert: California Moves Toward a Three-Jurisdiction Carbon Market (September 28, 2026) –Governor Gavin Newsom announced September 23 that he had made the findings required for California to pursue linkage of its Cap-and-Invest program with Washington’s carbon market. The action allows the California Air Resources Board (CARB) to begin the public rulemaking needed to add Washington to the market California already shares with Québec. Read more.

California News and Analysis

EVs

• CEC report finds reservation-based shared charging can expand multifamily EV access. A state-funded demonstration installed 124 Level 2 chargers at 21 multifamily properties in four counties and recorded more than 6,200 charging sessions, finding that shared public-private access can improve utilization and help offset installation costs. California Energy Commission, September 23, 2026.

Emissions

• House votes to revoke California’s maritime-emissions waivers. The House approved measures targeting federal waivers that allow California to require shore power for large ships and cleaner engines for some commercial vessels. The measures still require Senate approval and the president’s signature, while litigation continues over whether Clean Air Act waivers may be repealed under the Congressional Review Act. Los Angeles Times, September 24, 2026.

Electricity supply

• California agencies project positive electricity-supply margins for summer 2026. The third-quarter SB 846 assessment says the CAISO system is expected to retain a margin above 6,750 MW under planning conditions and above 3,000 MW during a 2022-style extreme-heat event, although wildfires, new loads, and project delays remain risks. California Energy Commission, September 21, 2026.

Electricity affordability

• Southern California customers receive $886 million in utility-bill credits. Residential customers of PG&E, Southern California Edison and SDG&E are receiving credits averaging approximately $75, funded through the state’s Cap-and-Invest program. Governor of California, September 22, 2026.

CPUC and utility regulation

• Newsom signs two measures intended to shorten utility-energization delays. AB 2518 establishes deadlines of 40 to 70 business days for SDG&E to energize construction-ready projects, while SB 1196 directs the CPUC to set statewide timelines for ADUs, EV chargers, home batteries and other small projects.

• Newsom signs law to prohibit utilities from charging customers for campaigns against municipal power. SB 327 prohibits investor-owned utilities from using electricity-customer funds to oppose efforts to establish publicly owned utilities.

• CPUC staff propose a $16 million wildfire penalty against Liberty Utilities. The proposed enforcement order alleges violations of overhead-line requirements connected with the 2020 Mountain View Fire, which burned approximately 20,835 acres and damaged or destroyed 97 structures. California Public Utilities Commission, September 25, 2026.

• CPUC administrative law judges issue several consequential energy proposals. Proposed decisions would establish a climate-adaptation policy framework, create an application process for utility orchestration of distributed resources, require load-flexibility scenarios in distribution planning, provide two years of bridge funding for demand-response programs and deny SoCalGas’ proposed optional microgrid tariff without prejudice. California Public Utilities Commission, September 28, 2026.

• San Francisco advances its effort to acquire PG&E’s local electric system. The Board of Supervisors rejected PG&E’s challenge to the city’s environmental review, allowing the municipal-power proposal to proceed toward CPUC valuation and other regulatory steps. San Francisco Chronicle, September 23, 2026.

Wildfires

• Southern California Edison seeks a special legislative session on wildfire liability. Edison International CEO Pedro Pizarro said the absence of a new liability framework is increasing utility borrowing costs and could ultimately raise customer costs. Reuters, September 24, 2026.

Refining and fuels

• Newsom authorizes the early sale of winter-blend gasoline. The action allows California fuel suppliers to begin transitioning to the less expensive winter formulation several weeks early in response to high gasoline and diesel prices. Governor of California, September 28, 2026.

• Newsom requests public reporting on wholesale fuel prices. In the same letter authorizing the early release of winter-blend gasoline, Newsom also directed the CEC, CARB, and DPMO to publish “a regular public spot-market report for gasoline and diesel using aggregated, anonymized trading data, including a transparent process to mitigate illiquidity and volatility.” He also directed the CEC to collect information on renewable diesel. Governor of California, September 28, 2026.

• Newsom signs law to direct the CEC to pursue refinery-transition agreements with local governments. SB 1337 calls for memoranda of understanding with air districts and jurisdictions containing refineries to coordinate fuel-market management and environmental, labor, economic and consumer protections.

• Newsom vetoes a broader assessment of emergency fuel and transportation resources. The governor said AB 2543 would duplicate existing state preparedness work and create an estimated $1 million in implementation costs. Governor’s veto message, September 27, 2026.

Offshore oil

• Santa Barbara County opposes proposed federal intervention supporting Sable Offshore. County supervisors condemned language added to federal defense legislation that could authorize federal acquisition of property needed for Sable’s pipeline operations, overriding state and local constraints. Santa Barbara Independent, September 23, 2026.

Oil

• Newsom signs law requiring payments for families near Inglewood Oil Field. AB 1661 requires the state’s Department of Conservation to distribute the first $5,000,000 paid into the Equitable Community Repair and Reinvestment Account by well operators in the Los Angeles County Inglewood Oil Field to be used for cash assistance to families living within 21/2 miles of the identified low production wells whose children have respiratory health conditions. Governor of California, September 27, 2026.

Critical minerals

• Newsom signs law to establish strategic clean-energy and critical-mineral development zones. AB 2163 directs the California Energy Commission to identify regions capable of supporting large-scale clean-energy production, critical-mineral supply chains, and energy-intensive manufacturing.

Energy storage

• Newsom vetoes a proposal to expand treatment of energy-only storage resources. The governor said AB 2369 would duplicate an existing CPUC proceeding on storage procurement, interconnection and market participation. Governor’s veto message, September 27, 2026.

Data centers and electricity demand

• Bay Area cities move toward moratoria on new data centers. Oakland and Richmond adopted or considered restrictions, while San Francisco pursued its own pause amid concerns over electricity demand, diesel backup generation, water use, and infrastructure costs. San Francisco Chronicle, September 24, 2026.

• California’s large-data-center inventory could grow from 55 facilities to approximately 85. Thirty additional projects are planned for 2027 and beyond, and the next generation of facilities is projected to use an average of 2.5 times as much power as those opening in 2026. Axios, September 28, 2026.

Commentary and analysis

• Jeff St. John, “Should we get excited about California’s latest virtual power plant?,” Canary Media, September 23, 2026.

Solar energy

• Second federal judge rules that EPA unlawfully canceled Solar for All grants. U.S. District Judge Tanya Chutkan concluded that EPA incorrectly interpreted federal law when it terminated the $7 billion program and vacated the agency’s decision. California’s grant includes approximately $250 million for community solar, storage and workforce programs. Reuters, September 23, 2026.

International

• California expands international clean-energy cooperation during Climate Week. The state signed an agreement with Spain covering electrification, battery storage, carbon markets, methane reduction, and climate resilience. It also advanced partnerships with Australia, Finland and Catalonia. Governor of California, September 22, 2026.

Energy policy

Commentary and analysis

• James Gallagher, “How to fix California’s disastrous energy policies & high costs,” The Ceres Courier, September 23, 2026.

Beyond California

Transportation and emissions

• Trump administration lowers federal vehicle fuel-economy standards. The Transportation Department reduced the required fleetwide average for 2031 from 50.4 to 34.9 miles per gallon and will end credit trading among automakers in 2028. The department estimates that the rule will lower manufacturers’ compliance costs but increase fuel consumption and carbon emissions. Reuters, September 28, 2026.

Oil

• U.S. Strategic Petroleum Reserve inventories fall to their lowest level since 1982. Federal data showed the reserve at 283.8 million barrels following continued releases, increasing attention to fuel-security policy as California develops its own petroleum-reserve framework. Reuters, September 28, 2026.

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Top Stories from the California Energy Journal

Santa Barbara County Adopts Ban on New Onshore Oil and Gas Wells (September 16, 2026) – The Santa Barbara County Board of Supervisors voted 3-2 on September 15, 2026 to prohibit new onshore oil and gas wells in unincorporated areas, completing the first phase of a broader county effort to phase out local oil and gas production. The action applies only to onshore development under county jurisdiction. It does not apply to offshore drilling. Read more.

Trump Administration Appeals Ruling on California Emissions Waivers (September 18, 2026) – The Trump administration appealed a federal court order on September 15 that prevents the Environmental Protection Agency (EPA) from treating certain California emissions waivers as rules subject to repeal under the Congressional Review Act (CRA). The appeal seeks review of a preliminary injunction; it does not resolve the underlying dispute. Read more.

California News and Analysis

Utilities, rates and grid policy

• Newsom vetoes bill creating a CPUC inspector general. Gov. Gavin Newsom vetoed AB 353, which would have established an inspector general for the California Public Utilities Commission (CPUC). Newsom cited conflicts with the Public Advocates Office and unbudgeted costs. Utility Dive, September 21, 2026.

• Newsom vetoes bill requiring disclosure of data used in calculation methodology. AB 1761 would have required utilities and the CPUC to disclose the data used to calculate charges imposed on customers who leave investor-owned utilities for community choice aggregators. Utility Dive, September 21, 2026.

• Newsom signs legislation creating a transmission infrastructure accelerator. AB 192 establishes an accelerator and revolving fund to support eligible high-voltage transmission projects selected through the CAISO competitive-solicitation process. Utility Dive, September 21, 2026.

• Southern California Edison outlines its strategy for adapting the grid to climate risks. A new white paper describes how SCE is incorporating projections for extreme heat, wildfire, flooding, and sea-level rise into infrastructure planning and investments. Southern California Edison, September 18, 2026.

Commentary and analysis

• Robert Bryce, “California Is So Screwed,” Robert Bryce, September 19, 2026.

Data centers

• Newsom signs seven-bill package regulating data center development. The legislation requires reporting on data center electricity and water use, directs regulators to develop new rate structures and seeks to prevent infrastructure costs from shifting to other customers. Office of Gov. Gavin Newsom, September 21, 2026.

• San Francisco supervisors propose 45-day moratorium on new data centers. San Francisco supervisors proposed a 45-day moratorium on new data-center approvals while the city studies electricity, water, pollution, noise and other impacts and develops updated regulations. The proposal follows Gilroy’s adoption of a temporary moratorium, while additional Bay Area communities are considering restrictions. KQED, September 15, 2026

Distributed energy and building electrification

• California lawmakers send Newsom bills streamlining permits and inspections for distributed energy projects. SB 222 would standardize and expedite heat-pump permitting, while AB 1738 would require qualifying cities and counties to offer remote inspections for heat pumps, rooftop solar and battery systems. Canary Media, September 14, 2026.

Oil, gas and fuel markets

• Sable plans excavations at 12 pipeline locations following corrosion testing. Sable Offshore sought county approval to inspect locations identified through internal pipeline testing and make repairs if necessary, potentially creating another dispute over state and local permitting requirements. Santa Barbara Independent, September 17, 2026.

• Record diesel prices increase costs for California farmers during harvest. California’s average diesel price exceeded $8 per gallon as international supply disruptions and seasonal demand increased fuel and transportation expenses for agricultural producers. San Francisco Chronicle, September 19, 2026.

• Newsom signs bill clearing the way for E15 gasoline sales. SB 795 removes a remaining regulatory barrier to selling gasoline containing as much as 15% ethanol in California, implementing authorization enacted in 2025. Office of Gov. Gavin Newsom, September 19, 2026; Reuters, September 21, 2026.

• Newsom vetoes bill on task force for staffing oil refineries. AB 605 would establish a state task force to examine refinery staffing and workforce issues following announcements that facilities will close or reduce operations. Newsom said in his veto message that diverting staff to this task could “diminish their ability to focus on holding refineries accountable for meeting required health and safety standards, potentially putting refinery workers at greater risk.”

Commentary and analysis

• Eric Eisenhammer, “California’s Energy Problem Is Now a National Security Problem,” California Globe, September 15, 2026.

• “Trump Wants More Oil Production from California’s Offshore,” Institute for Energy Research, September 18, 2026.

Transportation and emissions

• House votes to overturn another California emissions program. The House voted to repeal California emissions requirements for ocean-going vessels, continuing congressional efforts to use the Congressional Review Act against EPA approvals of state programs. Politico Pro, September 16, 2026.

• Newsom signs legislation intended to accelerate electric-vehicle charging. Six new laws address charger permitting, access to charging, consumer choice and disclosure of zero-emission truck incentives. The Governor signed SB 969, SB 1283, AB 1820, SB 1213, SB 1267, and SB 615. Office of Gov. Gavin Newsom, September 20, 2026.

EVs

• CEC program installs 384 EV charging ports at multifamily properties. The Multifamily Electric Vehicle Charging Accelerator deployed Level 2 chargers at 43 communities representing 2,701 housing units; 40 of the properties were affordable communities serving low-income

Permitting and environmental review

• Newsom vetoes restrictions on the CEQA exemption for advanced manufacturing. SB 954 would impose additional environmental-review requirements on certain advanced-manufacturing projects seeking expedited treatment under state law. Los Angeles Times, September 18, 2026.

Beyond California

Nuclear energy

• NRC’s overhaul of nuclear licensing rules will continue into 2027. The Nuclear Regulatory Commission is considering narrower environmental reviews, revised radiation-protection requirements, and a licensing framework for microreactors as the administration seeks faster approvals for new reactors. Reuters, September 15, 2026.

Carbon markets and global energy

• EU lawmakers vote to remove the carbon-border levy’s emergency brake. The European Parliament voted to eliminate a provision allowing temporary suspension of the levy during unexpected price increases, setting up negotiations with EU member states over the final rules. Reuters, September 15, 2026.

• France calls for a G7 summit on releasing additional oil reserves. French President Emmanuel Macron said G7 leaders should consider further releases from strategic oil and fuel reserves as international supply disruptions continue to pressure prices. Financial Times, September 18, 2026.

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Top Stories from the California Energy Journal

California Congress Members Challenge Federal Use of DPA for Sable Pipeline Restart (September 10, 2026) – A group of Democratic members of Congress has asked a federal court to invalidate the Trump administration’s use of national security emergency powers to support the restart of Sable Offshore Corp.’s Santa Ynez Pipeline System. Read more.

Trump Expands Interior’s Energy Authority Under Defense Production Act (September 14, 2026) – President Donald Trump expanded the Interior Department’s authority over energy production and distribution under the Defense Production Act. The change could increase the department’s role in federal efforts to restart offshore oil production in California. Read more.

California News and Analysis

Offshore oil

• Lawmakers file brief challenging federal intervention in Sable pipeline restart. A group of 18 members of Congress led by Rep. Salud Carbajal and Sens. Sheldon Whitehouse, Alex Padilla and Adam Schiff filed an amicus brief in California v. Wright challenging the federal government’s use of the Defense Production Act to facilitate the restart of Sable Offshore’s Santa Ynez pipeline system. The brief argues that the federal government has not established the national-defense need required to invoke the statute. Santa Barbara Independent, September 8, 2026.

Regional electricity markets

• CPUC prepares rulemaking on California’s transition to a regional electricity market. The California Public Utilities Commission is preparing to open a proceeding implementing the 2025 legislation authorizing changes to CAISO governance needed for participation in a broader Western electricity market. RTO Insider, September 10 2026.

Electricity rates and reliability

• Affordability report identifies four drivers of California’s high electricity rates. Energy Innovation and GridLab argue that California can slow and eventually reverse electricity-rate increases through changes to utility capital-investment incentives, wildfire financing, distributed-energy policy, and the way climate and public-policy programs are funded. Energy Innovation, September 10, 2026.

• CPUC explains how it measures electric reliability. The California Public Utilities Commission (CPUC) published an overview of the reliability metrics and regulatory processes it uses to assess utility performance, including outage duration and frequency. California Public Utilities Commission, September 8, 2026.

Energy storage and distributed energy

• CEC reduces size and state funding for Form Energy long-duration storage demonstration. The California Energy Commission approved changes reducing Form Energy’s planned iron-air storage demonstration at PG&E’s Mendocino Substation from 1.5 MW/150 MWh to 1 MW/100 MWh. CEC funding falls from $25 million to about $16.7 million. California Energy Commission, September 9, 2026.

• EPA begins final phase of Moss Landing battery cleanup. EPA began the final phase of cleanup at Vistra’s fire-damaged Moss Landing battery storage facility, including demolition needed to reach remaining severely damaged batteries and processing the material for off-site disposal. U.S. Environmental Protection Agency, September 8, 2026.

Distributed energy, solar and storage

• Google funds PG&E virtual power plant demonstration. Google is funding a PG&E demonstration designed to aggregate tens of thousands of batteries, thermostats, and other distributed resources in two Northern California counties. Utility Dive, September 10, 2026.

• Study identifies 17.5 GW of potential distribution-connected solar and storage. An analysis by Kevala estimates that front-of-meter solar and storage connected to substations owned by California’s three major investor-owned utilities could serve approximately 17.5 GW of local summer peak load, equivalent to about 32% of forecast 2032 peak demand. Utility Dive, September 9, 2026.

Natural gas and power generation

• California gas-fired electricity generation continues steep decline. Natural gas generation fell by 15 percent in 2025 and another 26 percent during the first half of 2026, according to federal data. Growth in solar and battery storage is a major factor, although gas plants continue to provide reliability and flexibility when renewable generation is unavailable. Inside Climate News, September 10, 2026.

Hydrogen

• Environmental groups challenge Los Angeles plan to convert Scattergood power plant to hydrogen. A coalition sued Los Angeles and the Department of Water and Power over plans to convert part of the city’s largest natural-gas power plant to hydrogen, alleging the city violated CEQA when it approved the project. Los Angeles Times, September 10, 2026.

Geothermal

• BLM schedules California geothermal lease sale for October. The Bureau of Land Management plans to offer 19 parcels covering approximately 40,000 acres in six California counties at an online auction on October 27. A lease would allow exploration and potential development, subject to further review before surface disturbance. Bureau of Land Management, September 11, 2026.

Data centers

• California cities consider moratoria and restrictions on new data centers. Gilroy approved a 45-day moratorium on new data-center development applications while officials develop zoning and operating standards for future projects. Local governments in Hayward, and San Francisco are considering restrictions on new data-center development amid concerns about electricity and water use, environmental effects, and infrastructure demands. City of Gilroy, September 10, 2026; City of Hayward, September 8, 2026; Mission Local, September 10, 2026. NBC Bay Area, September 14, 2026.

Nuclear

• Coastal erosion renews scrutiny of spent nuclear fuel stored at San Onofre. Recent storm-driven erosion has revived questions about the long-term storage of approximately 3.6 million pounds of radioactive waste near the Pacific Ocean at the decommissioned San Onofre Nuclear Generating Station. Los Angeles Times, September 12, 2026.

Commentary and analysis

• Ivan Penn, “Why California Is Reconsidering Its Decision to Shun Nuclear Power, New York Times, September 9, 2026.

Climate and federal policy

• California opposes proposed changes to the National Climate Assessment. Attorney General Rob Bonta joined a multistate coalition opposing a federal proposal to amend the Fifth National Climate Assessment to restrict federal agencies’ use of findings based on certain high-emissions scenarios. California Department of Justice, September 10, 2026.

Commentary and analysis

• “Stopping California’s Climate Imperialism,” Wall Street Journal, September 8, 2026.

Permitting and siting

• Proposition 45 would expedite environmental reviews for certain projects. California voters will decide November 3 whether to create expedited California Environmental Quality Act procedures for designated projects, including clean energy, water, transportation and wildfire-mitigation projects. Proposition 45 would impose tighter review deadlines, generally give agencies 365 business days to complete environmental impact reports, and limit aspects of judicial review. CBS News Sacramento, September 8, 2026.

Beyond California

Data centers and electricity demand

• Congress to address data-center electricity costs. House leaders said the chamber would take up the bipartisan Ratepayer Protection Act, which is aimed at preventing electricity infrastructure costs associated with data-center expansion from being shifted to residential customers. Reuters, September 10, 2026.

• Microsoft reportedly plans 38 GW of data-center capacity by 2032. The company’s planned global capacity would more than triple its current roughly 12 GW footprint. Reuters, September 10, 2026.

• EPA considers easing environmental rules affecting data-center power. The Trump administration is considering regulatory changes that could make it easier to deploy temporary gas turbines and other power infrastructure serving data centers, potentially reducing permitting barriers while raising air-quality concerns. Axios, September 10, 2026.

• South Korea considers more nuclear generation as AI increases electricity demand. South Korean electricity demand is expected to rise substantially as AI data centers expand, contributing to a government debate over additional nuclear generation. Reuters, September 8, 2026.

Federal emissions policy

• EPA repeals federal greenhouse-gas standards for power plants. The EPA finalized repeal of federal greenhouse-gas standards for existing coal-fired and new natural-gas power plants, arguing that the Clean Air Act does not provide authority for the regulations. State emissions requirements remain in place. Reuters, September 14, 2026.

Nuclear

• Federal government provides up to $1.9 billion to restart Iowa nuclear plant. NextEra Energy secured a Department of Energy loan to support restarting the 615-MW Duane Arnold Energy Center, which closed in 2020. Google has agreed to purchase the plant’s output under a 25-year contract, linking another nuclear restart directly to growing data-center electricity demand. Reuters, September 8, 2026.

• Nuclear expansion remains well short of global targets. An analysis of World Nuclear Association projections finds that annual reactor construction would have to increase roughly fivefold by the late 2030s to meet international ambitions to triple nuclear capacity by 2050. Financial Times, September 8, 2026.

Oil and geopolitics

• IEA increases estimate of oil-supply losses. The International Energy Agency projected that global oil supply could fall 5.7 million barrels per day in 2026 as Middle East disruptions persist, while diesel and other refined-product markets remain particularly tight. Reuters, September 11, 2026.

Solar

• Commerce Department finalizes steep tariffs on solar imports from India, Indonesia and Laos. The U.S. Department of Commerce finalized antidumping duties of 123% on Indian solar products, 94% on Indonesian products and 65% on products from Laos, along with substantial countervailing duties after finding that producers benefited from government subsidies. Reuters, September 11, 2026.

Commentary and analysis

• Rachel Millard et. al, “‘Offensively cheap’: solar power is looking up: Chinese-made panels on rooftops across the world are changing the facts of life for big utilities,” Financial Times, September 13, 2026.

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Top Stories from the California Energy Journal

California Threatens Lawsuit Over Cancellation of Humboldt Offshore Wind Lease (September 2, 2026) – California Attorney General Rob Bonta and the California Energy Commission (CEC) notified the Trump administration on September 1 that they intend to sue over the cancellation of a federal offshore wind lease capable of supporting up to 1.6 gigawatts off Humboldt County. California argues that the federal agreement violates the Outer Continental Shelf Lands Act. Read more.

PG&E Defers $2 Billion of Grid Investment After Wildfire Reform Fails (September 3, 2026) – PG&E Corp. announced that it will defer approximately $2 billion of planned California infrastructure investment in 2027 and review how the company is organized and financed, following the Legislature’s failure to change the state’s utility wildfire-liability system. Read more.

Federal Judge Blocks EPA Effort to Target California Emissions Waivers (September 4, 2026) – A federal judge blocked the Trump administration from reclassifying four California Clean Air Act waivers as federal rules subject to expedited congressional repeal, preserving California’s authority to enforce emissions standards affecting vehicles and small off-road engines. Read more.

California News and Analysis

Electricity rates

• CPUC opens proceeding to revise utility General Rate Case rules. The California Public Utilities Commission (CPUC) opened a rulemaking to revise its Rate Case Plan for investor-owned energy utilities. The proceeding will consider standardized filings, additional affordability information, utility return and cost reporting, wildfire-mitigation spending and measures intended to make General Rate Cases more efficient and transparent. California Public Utilities Commission, September 3, 2026.

Distributed energy, solar, and storage

• CEC considers proposed Corby battery storage project. The California Energy Commission held a public meeting on its staff assessment of the proposed Corby Battery Energy Storage System near Vacaville. The proceeding is testing the CEC’s expanded opt-in siting authority for large storage projects as commissioners weigh the project’s grid benefits against safety, land-use and environmental concerns. RTO Insider, September 7, 2026.

• California declines new funding for major virtual power plant program. California’s budget agreement did not provide additional funding for the Demand Side Grid Support program for the coming year. The program aggregates batteries and other distributed resources to provide electricity during periods of grid stress. Canary Media, September 1, 2026.

• Google, Tesla, Sunrun and PG&E launch California virtual power plant initiative. Google, Tesla, Sunrun and PG&E are among participants in a new California virtual power plant initiative bringing together residential batteries and other flexible energy resources to test their ability to provide grid services. Energy-Storage.news, September 7, 2026.

Renewable energy

• CEC evaluates wave and tidal energy development off California. A draft SB 605 assessment examines the feasibility, costs, benefits, potential development areas, environmental effects, and mitigation approaches for wave and tidal energy projects in state and federal waters. California Energy Commission, September 4, 2026.

Cap-and-Invest and climate policy

• CARB’s revised Cap-and-Invest regulations take effect. CARB’s latest amendments to California’s Cap-and-Invest Program took effect September 1. The changes tighten allowance budgets through 2045 while providing bill credits, industrial assistance and a new Manufacturing Decarbonization Incentive Fund. California Air Resources Board, September 1, 2026.

• Lawmakers approve reallocation of California climate funding. California lawmakers approved legislation revising how proceeds from the state’s Cap-and-Invest program will be allocated. The measure is part of the broader restructuring of climate spending following the extension of the carbon market through 2045. Politico Pro, September 1, 2026.

Transportation and emissions

• Federal court blocks EPA action involving California clean-car waivers. A federal judge temporarily blocked the EPA from treating California Clean Air Act waivers as rules subject to the Congressional Review Act. The dispute concerns the federal government’s effort to overturn California’s authority to enforce vehicle-emissions standards more stringent than federal requirements. The Hill, September 2026.

• Republican legislation would restrict California Clean Air Act waivers. Republican lawmakers introduced federal legislation that would limit California’s ability to obtain Clean Air Act waivers allowing the state to impose vehicle-emissions requirements more stringent than federal standards. The proposal creates another potential avenue for restricting California’s vehicle-emissions authority. Politico Pro, September 2026.

Critical minerals and geothermal

• California’s Lithium Valley projects face delays. California’s effort to develop lithium production around the Salton Sea is progressing more slowly than initially anticipated as projects face legal, financing and market challenges. CalMatters, September 1, 2026.

Oil, refining, and infrastructure

• California Resources Corporation completes acquisition of Crimson Midstream. California Resources Corporation completed its approximately $63 million acquisition of Crimson Midstream Holdings after receiving CPUC approval. California Resources Corporation, September 1, 2026.

• Study says Kern County could weather California’s transition away from oil. A new academic study concludes that Kern County could transition away from oil and gas production without major long-term economic losses if workers move into comparable jobs and governments replace revenue now generated by the industry. The study projects California oil and gas production could reach zero between 2042 and 2055 and examines how employment and public-service funding could be maintained during the transition. Bakersfield Californian, September 7, 2026.

• Legislature passes law requiring payments for families near Inglewood Oil Field. AB 1661 would require the state’s Department of Conservation to distribute the first $5,000,000 paid into the Equitable Community Repair and Reinvestment Account by well operators in the Los Angeles County Inglewood Oil Field to be used for cash assistance to families living within 21/2 miles of the identified low production wells whose children have respiratory health conditions.

Nuclear

• California opposes proposed federal nuclear-safety changes. Attorney General Rob Bonta joined multistate comments opposing Nuclear Regulatory Commission proposals to revise radiation-protection requirements and reactor-safety oversight. California Department of Justice, September 1, 2026.

Opinion, commentary, and analysis

• John Mac Ghlionn, “California’s green policies defeat its green goals — unlike in Nevada,” New York Post, September 3, 2026.

• Edward Ring, “Where does California get its energy?,” California Policy Center, September 3, 2026.

• “California opines on who profits from wildfires but not on who pays,” Financial Times, September 2, 2026.

• California’s energy legislation enters the governor’s office. The Los Angeles Times examines the package of climate and energy bills sent to Newsom at the end of the legislative session. Los Angeles Times, September 2, 2026.

Beyond California

Nuclear

• Nuclear start-ups confront shortage of plutonium. A shortage of plutonium available for civilian use is creating a potential constraint for some next-generation reactor developers whose designs depend on plutonium-based fuels. Financial Times, September 1, 2026.

Data centers and electricity demand

• Texas freezes new data-center grid connections amid concerns over speculative demand. Texas temporarily halted new data-center grid connections while examining whether large volumes of proposed electricity demand represent projects likely to be built. Reuters, September 1, 2026.

• NERC warning puts focus on reliability effects of large data-center loads. The power industry continues to respond to NERC’s Level 3 Essential Action Alert addressing sudden, large changes in computational loads, as data centers increasingly become an operational grid-reliability issue as well as a source of long-term demand growth. Energy-Storage.news, September 1, 2026.

• Google backs solar and long-duration storage project in West Virginia. Google, MN8 Energy and Eos Energy are supporting an 86-MW solar and long-duration storage project in West Virginia intended to provide around-the-clock clean electricity into PJM while supporting Google’s data-center operations. PV Tech, September 7, 2026.

Oil and geopolitics

• Spain proposes EU oil and gas profits tax to finance climate adaptation. Spain called for the European Union to establish a permanent levy on oil and gas company profits to help finance climate-adaptation measures following droughts, wildfires and other extreme weather. Financial Times, September 4, 2026.

Renewable energy

• India considers mandatory storage for new wind and solar projects. India’s Central Electricity Authority has proposed requiring new wind and solar projects to incorporate energy storage and grid-forming inverter capabilities beginning in 2027. PV Tech, September 4, 2026.

Questions, comments, or tips? Contact editor@californiaenergyjournal.com.

From the California Energy Journal

California Sues to Block Federal Buyout of Morro Bay Offshore Wind Lease (August 31, 2026) – California sued the Trump administration and Golden State Wind on August 28 to block a Trump administration agreement that would terminate a potentially 2-gigawatt offshore wind project near Morro Bay and reimburse the developer up to $120 million after investments in fossil-fuel projects. Read more.

Legislature Passes Bill Restricting Offshore Oil Expansion (August 29, 2026) – The California Legislature passed AB 1448, which would prevent existing oil and gas infrastructure on state-controlled tidelands and submerged lands from supporting new federal offshore leases issued after January 1, 2026. Read more.

Legislature Passes Virtual Power Plant Reliability Bill (August 29, 2026) – The California Legislature passed SB 913, which would create new pathways for networks of residential batteries and other customer-owned energy resources to receive compensation for supplying capacity needed to maintain grid reliability. Read more.

Legislature Passes Data-Center Energy Reporting Bill (August 29, 2026) – The California Legislature passed AB 1577, which would require large data centers to report electricity consumption and other operating information to the California Energy Commission and provide projected energy-demand information when applying for certain local permits. Read more.

Legislature Passes Bill to Examine Data-Center Rate Structures (August 31, 2026) – The California Legislature passed SB 1168, which would direct state utility regulators to examine electricity rate structures intended to ensure data centers pay an appropriate share of the costs associated with serving their substantial power demands. Read more.

Legislature Passes Plug-In Solar Bill (September 1, 2026) – The California Legislature passed SB 868, which would allow customers to use small plug-in solar devices without obtaining utility approval, signing an interconnection agreement, or paying interconnection fees. Read more.

See below for updates on additional legislation.

California News and Analysis

Oil, gas, and fuels

• Oil and gas industry sets California lobbying record. Oil and gas interests spent more than $17 million lobbying California officials during the first half of 2026, including a record $10.3 million during the first quarter, according to an analysis cited by Grist. (Grist, August 27, 2026).

• Air District releases preliminary health risk assessment for Chevron refinery. A preliminary assessment found that emissions from Chevron’s Richmond refinery produce cancer and short-term health risks above allowable levels, potentially requiring Chevron to submit a risk-reduction plan or install retrofit pollution controls. (Bay Area Air District, August 25, 2026).

Commentary and analysis

• Paasha Mahdavi and Michael L. Ross, “The worst energy policy in the world,” Science, August 27, 2026.

Offshore oil

• California prepares for federal offshore-drilling fight. California officials and lawmakers are strengthening legal and regulatory barriers against potential Trump administration efforts to expand oil development in federal waters off the state’s coast. (Politico, August 28, 2026).

Commentary and analysis

• David Helvarg, “To stop Trump’s pillaging, ‘vote the ocean’ this fall,” Los Angeles Times, September 1, 2026.

Power and utilities

• PacifiCorp proposes suspending efficiency programs. PacifiCorp and the CPUC’s Public Advocates Office proposed suspending the utility’s ratepayer-funded California energy-efficiency programs by January 1 because they have not met cost-effectiveness standards. (Utility Dive, August 25, 2026).

• CPUC approves 22.36% rate increase in Southern California. The California Public Utilities Commission (CPUC) approved a 22.36% increase in Southwest Gas rates for its Southern California territory and a 5.17% increase for its consolidated Northern California and South Lake Tahoe territory as part of the utility’s 2026 general rate case. (CPUC, August 20, 2026).

Nuclear

• Bonta opposes changes to nuclear-project environmental reviews. California Attorney General Rob Bonta joined a multistate coalition opposing proposed Nuclear Regulatory Commission changes to its National Environmental Policy Act procedures. (California Department of Justice, August 26, 2026).

EVs

• West Coast governments launch electric-truck corridor. California, Oregon, Washington, British Columbia and Baja California agreed to coordinate charging infrastructure, technical standards and policies supporting electric heavy-duty trucks along the 1,381-mile Interstate 5 corridor. (Los Angeles Times, August 27, 2026).

Climate policy

Commentary and analysis

• Russ Greene and James Conde, “California Leads a Climate Insurrection,” Wall Street Journal, August 27, 2026.

Data centers

Commentary and analysis

• Katherine Ortiz and Khari Johnson, “The data center backlash is here — and Big Tech is spending big to combat it,” CalMatters, August 28, 2026.

• Steve Puterski, “Data center debate missing a key component,” NC Pipeline, August 30, 2026.

Additional News and Analysis

Power and utilities

• Trump declares emergency over foreign power-system equipment. President Trump declared a national emergency concerning foreign-produced equipment in the U.S. bulk-power system. The order authorizes the Department of Energy to prohibit or impose conditions on transactions presenting cybersecurity, sabotage, supply-chain or national-security risks. (The White House, August 26, 2026).

Transportation

• Administration moves to reverse truck-engine efficiency rule. The National Highway Traffic Safety Administration moved to reverse an earlier interpretation allowing federal fuel-efficiency standards to regulate standalone medium- and heavy-duty truck engines. (The Hill, August 28, 2026).

Climate policy and renewable energy

• Trump administration challenges Biden-era climate findings. The Trump administration is challenging a Biden-era federal climate report as part of its broader effort to reconsider federal climate findings and regulations. (The Hill, August 27, 2026).

Commentary and analysis

• Jay Inslee, “States can build America’s affordable energy future,” The Hill, August 25, 2026.

Energy politics

• Electricity’s growth begins to reshape energy politics. The expansion of electrification, renewable generation and data-center demand is shifting political attention from gasoline prices and oil production toward electricity affordability, reliability and grid investment. (Politico, August 30, 2026)

Energy geopolitics and global markets

• China’s solar capacity surpasses coal. Solar became China’s largest source of installed generating capacity at the end of July, reaching 1,286 gigawatts and 31.5% of the country’s total capacity. (Bloomberg, September 1, 2026).

• United States announces major Venezuelan oil agreement. President Trump announced an agreement giving the United States majority control over Venezuelan fields containing more than 65 billion barrels of proven oil reserves. (NBC News, August 28, 2026; CNBC, August 28, 2026).

Legislation

The 2026 California Legislature ended on September 1, 2026. Here are the latest updates.

Passed legislature (awaiting the governor’s approval)

Utility rates and customer protections

• SB 327, which would prohibit investor-owned utilities from using electricity-customer funds to oppose efforts to establish publicly owned utilities.

• SB 905, which would require the CPUC to consider reducing utility returns on certain investments made outside their general rate cases, including some undergrounding expenditures.

• AB 2589, which would require savings that investor-owned utilities receive from specified federal tax-law changes to be returned to customers rather than retained as utility profits.

• AB 2463, which would require the CPUC to provide an independent and more transparent analytical basis when setting utilities’ authorized returns on equity.

Transmission and generation

• AB 2493, which would require the California Public Utilities Commission to establish a transmission development monitor to track utility schedules and progress on transmission projects and generator-interconnection upgrades.

Renewable and emerging energy resources

• AB 1813, which would revise California’s community-renewable-energy program and the compensation available to participating projects.

• SB 925, which would require the California Energy Commission to develop a strategic plan for advancing fusion energy and address certification and environmental-review procedures for fusion projects.

• AB 1156, which would reduce Williamson Act cancellation fees for qualifying solar projects to facilitate the conversion of drought-stricken agricultural land to photovoltaic generation.

Data centers and electricity rates

• SB 886, which would require the CPUC to establish a separate electricity-rate structure for data centers and other qualifying large-load customers intended to protect other ratepayers from infrastructure costs attributable to those facilities.

• SB 887, which would prevent most data-center projects from using categorical exemptions under the California Environmental Quality Act. It would allow qualifying data centers and geothermal power plants to receive expedited judicial review as environmental leadership projects.

• AB 2383, which would impose special electricity-rate and cost-allocation requirements on data centers.

Natural-gas transition and electrification

• SB 1359, which would require the California Public Utilities Commission (CPUC) to examine ways to protect natural-gas customers from the costs of infrastructure that may become underused or abandoned as gas demand declines.

• AB 2313, which would require gas utilities to offer eligible customers an incentive to electrify instead of replacing certain residential gas service lines.

• SB 1283, which would require cities and counties to update their ordinances to expedite permitting for electric-vehicle charging projects.

Refinery closures and workforce protections

• AB 605, which would establish a state task force to examine refinery staffing and workforce issues following announcements that facilities will close or reduce operations.

Environmental review

• SB 954, which would impose additional environmental-review requirements on certain advanced-manufacturing projects seeking expedited treatment under state law.

• AB 40, which would impose additional California Environmental Quality Act requirements on certain coal-handling and coal-export projects.

Greenhouse Gas Reduction Fund allocations

• SB 193, a budget trailer bill, would establish allocation priorities for cap-and-invest proceeds, including $1 billion annually for high-speed rail and $1 billion reserved for legislative appropriation, while continuing funding for housing, transit, air-quality, wildfire-prevention and drinking-water programs.

Did not pass

• SB 1259, which would have required refineries announcing closures to disclose decommissioning and remediation cost estimates, was placed on the Assembly inactive file after its author determined it lacked the votes to pass.

• SB 493, which would have added war to the emergencies that can trigger California’s price-gouging restrictions, was withdrawn before a final vote.

• AB 193, a bill substantially similar to SB 193, would revise the allocation of proceeds from California’s cap-and-invest program, including $1 billion annually for high-speed rail, $1 billion reserved for legislative appropriation and continuing allocations for affordable housing, transit, community air protection, wildfire prevention and safe drinking water.

Questions, comments, or tips? Contact editor@californiaenergyjournal.com.

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From the California Energy Journal

Federal Judge Shifts Sable Pipeline Consent-Decree Oversight to PHMSA (August 20, 2026) – A federal judge modified the court order governing Sable Offshore Corp.’s Santa Ynez Pipeline System to replace California’s pipeline regulator with a federal agency, allowing the company to continue transporting oil and reducing the state’s immediate authority over the pipeline restart. Read more.

California News and Analysis

Environmental policy

• Trump administration broadens challenge to California environmental policies. At least six federal agencies have taken actions affecting California climate and energy policy, including vehicle-emissions waivers, offshore wind leases, the Sable pipeline, coastal oversight and a proposed Oakland coal terminal. (New York Times, August 20, 2026).

Commentary and analysis

• Joel Kotkin, “California’s green agenda is putting its future at risk,” UnHerd, August 23, 2026.

• Maxine Joselow, “How Trump Is Trying to Crush California’s Environmental Policies,” New York Times, August 20, 2026.

Coastal management

• Members of Congress oppose Trump review of California coastal management. Congressional members criticized the Trump administration’s review of the California Coastal Management Program (CCMP), stating that the “unprecedented review threatens to disrupt 48 years of successful coordination between the State of California and the federal government to protect California’s coast.” (Politico, August 21, 2026).

Vehicles and emissions

• CEC defends replacement tire efficiency rules. The CEC says the regulations requiring replacement tires sold in the state to meet new rolling-resistance standards beginning in 2029 will lower fuel and electricity use, while manufacturers and dealers warn that they could reduce consumer choice and raise upfront costs. (KCRA, August 23, 2026).

• Hilton targets CEC over tire efficiency mandate. Republican gubernatorial candidate Steve Hilton said he would remove the commissioners and cut funding for the California Energy Commission over its newly approved replacement tire standards. (New York Post, August 20, 2026).

• Strickland calls for Energy Commission members to resign. State Senator Tony Strickland called for all five California Energy Commission members to step down following their unanimous approval of replacement tire efficiency standards. (New York Post, August 21, 2026).

Commentary and analysis

• Vince Fong, “The hidden tax California imposes on the rest of the country,” New York Post, August 19, 2026.

EVs

• CEC approves $95.2 million for zero-emission vehicle infrastructure. The California Energy Commission approved its fiscal year 2026–27 Clean Transportation Program investment plan, including $48 million for light-duty EV charging, $30.2 million for medium- and heavy-duty infrastructure, $15 million for hydrogen refueling and $2 million for workforce development. (California Energy Commission, August 18, 2026).

Offshore oil

• Federal judge transfers Sable pipeline oversight from California to PHMSA. U.S. District Judge Stephen Wilson modified the consent decree governing the pipeline involved in the 2015 Refugio oil spill, allowing Sable Offshore to continue transporting oil under federal oversight. The order transfers administration of the decree from the State Fire Marshal to the Pipeline and Hazardous Materials Safety Administration and effectively removes the state agency’s ability to block pipeline operations. (E&E News, August 19, 2026).

Oil and pipelines

• Groups report sharp increase in California oil drilling permits. Consumer Watchdog and FracTracker Alliance said California regulators approved 353 permits for new oil wells during the first half of 2026, compared with 115 during the combined 2023–25 period. The groups attributed the increase to streamlined permitting under SB 237 and warned that approvals for plugging, abandonment and work on existing wells have declined. (Consumer Watchdog, August 21, 2026).

• Applications for oil-well maintenance and abandonment fall as drilling rises. Kern County’s streamlined permitting system has produced an expected increase in applications for new wells, while applications involving reworking, redrilling, plugging and other activities at existing wells have dropped. The diverging trends raise questions about whether increased production is being accompanied by adequate investment in the state’s large inventory of aging and idle wells. (Bakersfield Californian, August 21, 2026).

• California oil producer moves quickly into Venezuela. Pacific Coast Energy, a small California-based producer backed by European investors, is pursuing Venezuelan oil assets as larger U.S. companies remain cautious about returning after earlier nationalizations. Its plans face a dispute with the Cisneros family over competing claims to assets formerly operated through the PetroDelta venture. (Wall Street Journal, August 21, 2026).

• BLM seeks comments on proposed Central California oil and gas leases. BLM opened public comment on 44 parcels totaling approximately 36,000 acres in Kern, Kings, San Luis Obispo, and Fresno counties for a potential December lease sale. The comment period ended September 20; leasing would not itself authorize drilling. (Bureau of Land Management, August 21, 2026).

Electricity markets

• CPUC staff questions CAISO’s calculations for new day-ahead market. California Public Utilities Commission Energy Division staff asked CAISO to explain load adjustments made during the Extended Day-Ahead Market’s first months and publish enough methodological detail for stakeholders to reproduce its calculations. Six California cities separately questioned whether the market’s reported benefits justify the costs and resource commitments required from participants. (Utility Dive, August 18, 2026).

• California lawmakers advance distributed-energy and community-solar bills. California lawmakers promoted legislation intended to reduce electricity costs and expand access to distributed energy resources, including SB 913 on aggregating customer-owned batteries and smart thermostats, SB 868 on plug-in solar systems, and a community-solar proposal backed by Assemblymember Chris Ward. (CBS Sacramento, August 24, 2026).

Nuclear energy

• Environmental groups oppose operating Diablo Canyon through 2045. Organizations including San Luis Obispo Mothers for Peace raised concerns about the plant’s seismic safety, aging equipment, operating costs and effect on renewable-energy curtailment. (Santa Barbara Independent, August 20, 2026).

Data centers

• Lawsuit challenges Imperial County data center moratorium. Developer Sebastian Rucci sued Imperial County over an urgency ordinance blocking approval of new data centers through June 2027, including his proposed 330-megawatt, nearly one-million-square-foot facility. (San Francisco Chronicle, August 24, 2026).

Additional News and Analysis

Clean energy and climate policy

• Europe delays climate measures as affordability concerns grow. European governments are reconsidering carbon-pricing requirements, electric-vehicle mandates and restrictions on fossil-fuel development as high energy prices and industrial competitiveness become more politically salient. (Wall Street Journal, August 23, 2026).

Renewable energy

• Wind-energy unions continue organizing despite federal retreat. Labor unions and climate-jobs coalitions are continuing to support offshore wind and other clean-energy projects after Trump administration actions reduced investment and prompted project cancellations. (The Guardian, August 23, 2026).

Data centers

• U.S. data centers natural gas power proposals double in six months. In the first half of the year, the United States nearly doubled the gas-fired capacity it is developing to directly power data centers, but uncertainty persists about how and when this capacity gets built. (Global Energy Monitor, August 2026).

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From the California Energy Journal

California Coastal Commission Objects to Offshore Fracking Proposal (August 14, 2026) – The California Coastal Commission unanimously objected on August 13, 2026 to DCOR LLC’s proposal for hydraulic fracturing, known as fracking, at 16 wells on Platform Gilda in federal waters off Ventura, California. The proposal would have been the first fracking off California’s coast in more than a decade. The vote comes after the commission released two staff reports on the project in July. Read more.

Western Gateway Pipeline to Move Forward, Creating New Fuel Route into California (August 12, 2026) – Phillips 66, Kinder Morgan and HF Sinclair have made a final investment decision to proceed with the $5 billion Western Gateway Pipeline, a 1,300-mile refined-products system designed to transport fuel from the Midwest and Gulf Coast to Arizona and California. The companies announced August 11 that they had finalized a joint venture agreement for the project. Phillips 66 will own 49.9% of the system, Kinder Morgan 35.1% and HF Sinclair 15%. Read more.

California News and Analysis

Oil, refining and fuels

• Jones Act waiver drives surge in Gulf Coast fuel shipments to the West Coast. Waterborne shipments of crude oil and petroleum products from the Gulf Coast to the West Coast more than quadrupled year over year in April and May after the federal government waived domestic shipping restrictions. (U.S. EIA, August 17, 2026).

• CPUC approves CRC pipeline acquisition. The California Public Utilities Commission (CPUC) authorized CRC to acquire the San Pablo Bay Pipeline and Crimson California Pipeline companies from CorEnergy Infrastructure Trust. (E&E News, August 14, 2026). (New York Post, August 11, 2026).

Commentary and analysis

• R.J. Briggs, “California’s Gas Crisis Is a Policy Failure at Every Level,” The Regulatory Review, August 11, 2026.

Offshore oil and coastal policy

• Ninth Circuit leaves Sable pipeline’s federal designation in place. A federal appeals court partially dismissed an environmental groups’ challenge to federal oversight of Sable Offshore’s Las Flores pipeline system, finding that PHMSA’s subsequent jurisdictional determination made the dispute moot. (Bloomberg Law, August 12, 2026).

• Sable plans September restart of third Santa Ynez Unit platform. Sable Offshore expects to restart production from its Hondo platform in September, following the earlier restart of the Heritage and Harmony platforms as it ramps up production at the Santa Ynez Unit. (Offshore Energy⁠, August 12, 2026).

• California officials vow legal fight over federal review of state coastal authority. California officials, Indigenous leaders, environmental advocates and business groups are opposing a Trump administration review of California’s Coastal Management Program that could weaken the state’s ability to challenge offshore oil development and other coastal projects. (KQED, August 11, 2026).

Transportation and efficiency

• CEC adopts nation’s first replacement-tire efficiency standards. The California Energy Commission unanimously approved standards requiring replacement tires sold for passenger vehicles and light-duty trucks to meet minimum efficiency requirements beginning in 2029, with stricter requirements taking effect in 2033. (California Energy Commission, August 17, 2026); (KCRA, August 17, 2026).

Electricity rates and affordability

• Wildfire costs and public programs drive California electricity bills higher. Researchers identify wildfire mitigation and liabilities as the largest contributors to recent rate increases, with rooftop-solar incentives and other programs funded through utility rates adding to the burden. (UC Berkeley Letters & Science, August 14, 2026).

• Becerra proposes free electricity during periods of surplus generation. Democratic gubernatorial candidate Xavier Becerra has proposed providing Californians with free electricity during designated daytime “power hours” when solar generation is abundant. (Yahoo News, August 17, 2026).

Grid and energy storage

• Grid-upgrade delays stall battery-storage projects. U.S. utilities are struggling to connect a growing backlog of battery projects because of transmission constraints, equipment shortages and rising interconnection costs. In California, PG&E reported that long lead times for specialized equipment have placed at least 1,250 MW of storage projects at risk of delay. (Bloomberg, August 15, 2026).

• Montana power company joins California’s regional day-ahead market. BHE Montana signed an agreement to participate in CAISO’s Extended Day-Ahead Market, becoming the eighth entity to formally commit to the regional electricity market. (E&E News, August 12, 2026).

Federal emissions policy

• House Republican seeks to overturn California commercial harbor craft emissions rule. Rep. James Gallagher introduced a Congressional Review Act resolution seeking to overturn EPA’s January 2025 authorization of California’s Commercial Harbor Craft Amendments. The CARB rules expand emissions requirements to additional commercial vessels and impose new engine and zero-emission requirements on several vessel categories. (Sierra Daily News, August 11, 2026).

Offshore wind

• Senators introduce bill aimed at preserving surrendered California offshore wind leases. Sens. Alex Padilla and Angus King introduced legislation that would require the Interior Department to offer surrendered offshore wind acreage to adjacent leaseholders at the original auction price and reoffer unclaimed acreage under the original terms. (ECO Magazine, August 11, 2026).

• California takes legal action over Trump administration offshore wind cuts. California officials are moving forward with legal action challenging the Trump administration’s actions targeting offshore wind development, escalating the state’s effort to preserve its plans for building a floating offshore wind industry along the California coast. (Politico, August 11, 2026).

Solar

Commentary and analysis

• Edward Ring, “Is Covering California’s Aqueducts and Canals with Solar Panels Economical?,” California Policy Center, August 12, 2026.

Hydrogen

• California’s green-hydrogen ambitions face mounting setbacks. Project cancellations, federal funding cuts, fuel disruptions and limited demand have weakened California’s attempt to build a large clean-hydrogen industry. High production costs and inadequate fueling infrastructure remain major obstacles. (Los Angeles Times, August 17, 2026).

Nuclear

• Newsom leaves Diablo Canyon extension to his successor. Governor Gavin Newsom said the next administration should decide whether Diablo Canyon may continue operating beyond its current 2030 state deadline. (Santa Barbara Independent, August 14, 2026).

• California reconsiders its planned nuclear exit. A coalition of business groups, labor unions, elected officials and nonprofits is pressing the state to allow Diablo Canyon to operate through 2045 as electricity demand rises and offshore wind development falls behind schedule. Opponents argue that extending the plant would create additional seismic, waste and financial risks while interfering with renewable generation. (Los Angeles Times, August 16, 2026).

Commentary and analysis

• “Gov. Newsom punts on Diablo Canyon extension. That’s a relief,” San Luis Obispo Tribune, August 11, 2026.

Legislation

• Refinery-safety bill advances. SB 966 would place existing refinery worker-safety protections into state law as regulators prepare to revise the rules following a settlement with the oil industry. The union-backed legislation advanced despite oil industry opposition. (CalMatters, August 15, 2026).

• Other refinery bills advance. AB 605, which addresses minimum refinery staffing plans, advanced to a third reading. SB 1259, which would require refinery shutdown and cleanup planning, also advanced to a third reading.

• Bill allowing alternative gasoline blends on hold. The Assembly Appropriations Committee held SB 1245, which would have directed state agencies to develop a strategy for allowing gasoline that does not meet California’s CARBOB specifications when doing so could improve fuel affordability and reliability. (E&E News, August 14, 2026).

• Price-gouging bill advances. SB 493 would add “war” to the list of emergencies under which it would be price-gouging to sell specified goods and services, including gasoline, for 10% more than previously charged.

• Two bills to increase oil well financial guarantees on hold. AB 2461 would require any company that acquires control of an oil well to notify the supervisor of the operation and to file with the supervisor an indemnity bond in an amount determined by the supervisor to be sufficient to cover, in full, all costs of plugging and abandonment, decommissioning the facility, and site restoration, as provided. AB 2716 would have raised the financial guarantees that large oil producers had to provide to the state for their oil wells, while exempting some smaller firms from providing cleanup funds up front.

• E85 conversion kits bill on hold. AB 2046 would exempt E85 conversion kits certified by the U.S. EPA as a clean alternative fuel conversion system from the California State Air Resources Board (CARB) approval requirement.

• Bill imposing new controls on utility spending advances. SB 905 includes provisions to reduce “excess” returns on lower-risk investments, align executive compensation with cost control, establish performance metrics for utilities, maximize use of existing infrastructure, fund certain public purpose programs and wildfire-related costs through sources other than electricity bills, and evaluate low-cost financing options. (see also Canary Media, August 11, 2026).

• Data-center bills advance. SB 886, which is intended to prevent data-center development from shifting electricity costs to other customers, and SB 887, which would encourage developers to invest in clean energy and surrounding communities. (Yahoo News, August 18, 2026).

• Community solar bills advance. SB 868 would exempt a portable solar generation devices up to 1,200 W from interconnection requirements and allow them to be plugged into household outlets. AB 1813 reforms community solar policy, including by requiring bill credits to subscribers based on the avoided costs of a community renewable energy generators. (PV Magazine, August 17, 2026).

Additional News and Analysis

AI and data centers

• U.S. electricity demand projected to set records through 2027 as AI use surges. The U.S. Energy Information Administration projects electricity consumption will increase from a record 4,195 billion kWh in 2025 to 4,268 billion kWh in 2026 and 4,391 billion kWh in 2027, driven in large part by AI-focused data centers and broader electrification. (Reuters, August 11, 2026).

• AI will increase oil and gas production and global emissions. AI-driven productivity gains in the oil and gas industry will substantially increase global emissions, according to a report in the journal Nature led by two former Microsoft employees, outweighing any potential gains from clean energy. (FT, August 10, 2026).

Renewable energy

• Water constraints complicate U.S. lithium expansion. Efforts to develop a domestic lithium supply are encountering political, legal and financial obstacles related to water use, particularly in the arid western United States. (Financial Times, August 12, 2026).

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From the California Energy Journal

RWE Agrees to Give Up Humboldt Offshore Wind Lease in $1.22 Billion Federal Deal (August 10, 2026) – RWE agreed to relinquish its offshore wind lease off Humboldt County as part of a $1.22 billion agreement with the Trump administration, removing a third major offshore wind development project from California’s original five federal lease areas. The deal marks the first lease relinquishment in the Humboldt Wind Energy Area and expands the federal retreat from California offshore wind development beyond the Morro Bay area. Read more.

California News and Analysis

Offshore oil

Commentary and analysis

• Rosanna Xia, “Trump is attacking California’s ability to protect its coastline. The consequences may be dire,” Los Angeles Times, August 7, 2026.

Oil refining and fuels

• California weighs response to rising oil company profits. California officials are scrutinizing rising oil industry profits amid concerns about gasoline prices and the state’s shrinking refining sector. (Los Angeles Times, August 5, 2026).

Offshore wind

• Trump administration escalates opposition to offshore wind. The Trump administration is continuing efforts to restrict offshore wind development while promoting fossil fuel production, creating additional uncertainty for projects and developers. The policy shift has implications for California’s plans to develop floating offshore wind along the Central and North coasts. (AP, August 6, 2026).

• RWE reaches $1.22 billion agreement to cancel U.S. offshore wind leases. RWE reached a $1.22 billion agreement with the Trump administration to relinquish U.S. offshore wind leases, including in California, and redirect investment toward natural gas projects. (Reuters, August 6, 2026).

Renewable energy

Commentary and analysis

• Gabriella Hoffman, “California’s climate policies created an energy crisis. Abundance is the answer.,” Orange County Register, August 7, 2026.

• Susan Shelley, “California’s green energy fantasy is leaving residents in the dark,” Orange County Register, August 8, 2026.

• Larry Wilson, “California sets a world record with solar power,” Pasadena Star News, August 8, 2026.

Energy storage

• California battery capacity tops 21 GW. The California Energy Commission announced that battery resources serving California now total 21,112 MW, up from less than 700 MW in 2019. Nearly 16,000 MW comes from in-state utility-scale systems, roughly 2,000 MW from out-of-state resources serving the CAISO grid, and about 3,000 MW from smaller systems at homes and businesses. (CEC, August 7, 2026).

Nuclear energy

• Newsom says he won’t seek another Diablo Canyon extension. Gov. Gavin Newsom said he does not plan to pursue extending Diablo Canyon’s operations beyond 2030, leaving the issue to his successor and the Legislature. The position sets up a potential future debate over nuclear power’s role in California’s electricity reliability and clean-energy strategy. (E&E News, August 10, 2026).

• Local officials push California to keep Diablo Canyon operating. A coalition of local officials is urging Sacramento to allow Diablo Canyon to continue operating beyond its current 2030 state authorization. (Politico Pro, August 4, 2026)

Grid reliability and electricity costs

• California’s rising renewable curtailments highlight grid challenge. California curtailed 4.5 million MWh of solar and wind generation during the first half of 2026, already exceeding the amount curtailed during all of 2025. The rapid increase illustrates the growing mismatch between California’s renewable generation and its transmission, storage and electricity-demand infrastructure. (Reuters, August 4, 2026).

Wildfires and utility liability

• California confronts who should pay for utility-caused wildfires. California policymakers are again confronting how to allocate potentially enormous wildfire liabilities when utility equipment causes catastrophic fires. The debate pits wildfire victims’ compensation against concerns that escalating liabilities could threaten utility finances and increase electricity rates. (California Political Review, August 8, 2026).

• Newsom administration proposes reducing utility wildfire liability costs. The Newsom administration is proposing changes intended to reduce the financial exposure utilities face from catastrophic wildfires as California considers the future of its wildfire liability framework. The proposal could have significant implications for utilities, ratepayers, wildfire victims and the state’s wildfire fund. (Politico Pro, August 4, 2026)

• Investigators link Edison equipment to Eaton Fire. Investigators concluded that Southern California Edison equipment was associated with the ignition of the deadly Eaton Fire, potentially increasing the utility’s exposure to billions of dollars in wildfire claims. The finding intensifies the debate in Sacramento over utility wildfire liability and how those costs should be allocated. (AP, August 4, 2026).

Carbon capture and climate policy

• California carbon storage project advances. California Resources Corp.’s Carbon TerraVault project represents a significant step for California’s emerging carbon capture and storage industry. The project could help determine whether carbon storage becomes a major component of the state’s strategy for reducing emissions from difficult-to-decarbonize industries. (CalMatters, August 10, 2026).

Carbon emissions

• Republicans seek to overturn California ship emissions rules. Congressional Republicans are pushing legislation targeting California regulations aimed at reducing emissions from ships operating near the state’s ports. (E&E News, August 7, 2026).

• Republican senators move to repeal additional California emissions waivers. Four Republican senators introduced resolutions seeking to overturn California emissions rules covering vehicles and lawn, garden and power-washing equipment under the Congressional Review Act. (Reuters, August 6, 2026).

Additional News and Analysis

Oil refining and fuels

• U.S. refiners benefit from global fuel supply crunch. U.S. refineries are running near full capacity as geopolitical disruptions reduce global refining capacity and push fuel prices higher, boosting profit margins for refiners. (WSJ, August 6, 2026).

Solar

• U.S. considers polysilicon price floor and tariffs targeting China. The Trump administration is considering trade measures including tariffs and a minimum price for imported polysilicon as it seeks to counter China’s dominance of the solar supply chain and bolster U.S. production. The measures could raise input costs for solar manufacturers and developers while benefiting domestic producers. (Reuters, August 4, 2026).

Commentary and analysis

• “Solar power is about to get more expensive. Thank Trump.,” Washington Post, August 8, 2026.

Climate policy

• Appeals court says EPA cannot block billions in climate grants. A federal appeals court ruled that EPA cannot withhold billions of dollars in previously awarded climate grants, handing grant recipients a victory in their dispute with the Trump administration. The decision limits the administration’s ability to unwind climate spending approved under the previous administration. (Reuters, August 4, 2026).

Offshore wind

• Judge orders Pentagon to resume wind project reviews. A federal judge ordered the Pentagon to lift its freeze on reviews of proposed wind projects, ruling that the Defense Department violated congressionally mandated deadlines. (Reuters, August 6, 2026; Courthouse News, August 4, 2026).

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From the California Energy Journal

Coastal Commission Staff Reports Object to Offshore Fracking Proposal (August 3, 2026) – The California Coastal Commission staff recommended that the Commission object to a proposal to conduct hydraulic fracturing on 16 existing oil wells at Platform Gilda, located approximately nine miles offshore on a federal Outer Continental Shelf in the Santa Barbara Channel. The regulators, in two staff reports issued on July 29, 2026, say the DCOR LLC project could increase the risk of spills. Read more.

California News and Analysis

Offshore oil

• California Democrats oppose federal pipeline easement proposal. California Democratic lawmakers are intensifying opposition to congressional legislation that would authorize the federal government to acquire easements over state land for Sable Offshore’s Santa Ynez Pipeline System. (E&E News, July 31, 2026).

• Senators investigate Sable relationship with Trump. Senator Adam Schiff of California sent a letter to Sable Offshore Corp. CEO Jim Flores, inquiring about the company’s relationship with the Trump administration and urging it to “cease all operations in the SYU and consider the long-term legal and financial ramifications of collaborating with the Trump administration to circumvent state law.” (Office of Senator Adam Schiff, July 28, 2026).

Oil refining and fuels

Commentary and analysis

• Wisfe Aish, “What Could California’s Fuel Transition Mean For Gas Stations?,” Forbes Business Council, July 29, 2026.

• Stephen Hobbs, “Would the oil refinery penalty have generated $600M for California if implemented?,” Sacramento Bee, July 28, 2026.

EVs

• California launches instant EV rebates. California will begin offering instant point-of-sale rebates for eligible new and used electric vehicles, allowing buyers to receive the incentive immediately rather than waiting for reimbursement. State officials hope the program will expand EV adoption for lower- and middle-income households. (Los Angeles Times, July 29, 2026).

Carbon emissions regulation

• Environmental group sues CARB over cap-and-invest overhaul. Communities for a Better Environment filed suit challenging the California Air Resources Board’s revised cap-and-invest program, arguing the agency unlawfully increased free emissions allowances for oil refiners. (Yahoo News, July 30, 2026)

Commentary and analysis

• David Pettit, “Federal attacks on greenhouse gas emissions regulations: What’s at stake for California?,” Daily Journal, July 31, 2026.

Electricity, utilities and affordability

• PG&E proposal draws criticism over shareholder incentive payments. Critics are challenging a PG&E proposal that would allow customers to fund approximately $26.6 million in shareholder performance rewards through utility rates. The issue raises broader questions about utility regulation, executive incentives, and customer affordability. (California Political Review, July 30, 2026).

Nuclear energy

• Port of Long Beach explores maritime nuclear power. The Port of Long Beach is evaluating advanced nuclear technology as part of efforts to meet rising electricity demand while reducing emissions from port operations. The Port of Long Beach became the first U.S. port to partner with the Maritime Administration on evaluating advanced nuclear reactors for maritime and port applications. The collaboration will study how next-generation reactors could support port electrification, grid reliability, and maritime decarbonization. (American Nuclear Society, July 28, 2026; WSJ, July 23, 2026)

Solar

Commentary and analysis

• Ardi Arian, “Community solar can bridge California’s energy affordability gap,” Utility Dive, July 28, 2026.

• Dan McCarthy, “California was mostly solar-powered in May — a global first,” Canary Media, July 31, 2026.

International clean energy cooperation

• California and Rajasthan establish clean energy partnership. California energy agencies and India’s Rajasthan Electricity Regulatory Commission formalized a memorandum of intent to collaborate on clean energy deployment, transmission planning, and regulatory best practices. The agreement expands California’s international partnerships on clean energy policy. (SolarBytes; The Wire, July 28, 2026)

Climate policy

Commentary and analysis

• Jon Fleischman, “California’s sweeping climate change policies cost a fortune –– for no benefit,” New York Post, July 30, 2026.

• Alex Nieves, “Trump hands Xavier Becerra a climate dilemma,” Politico, July 31, 2026.

• Edward Ring, “A Fact-Based Appraisal of California’s Energy Strategy,” California Policy Center, July 29, 2026.

Additional News and Analysis

Oil refining and fuels

• White House backs private investment in shuttered fuel facilities. The White House is encouraging private investment to restart or repurpose idled fuel production facilities as part of efforts to strengthen domestic fuel supplies and energy security. (Politico, July 30, 2026)

• Closure of St. Croix refinery continues to affect fuel markets. The long-term impacts of the St. Croix refinery shutdown continue to influence gasoline supplies and fuel prices in certain U.S. markets. (The Hill, July 30, 2026).

• Attorneys general oppose pipeline permit streamlining. California Attorney General Rob Bonta and 13 other attorneys general filed a motion to oppose the Federal Energy Regulatory Commission’s proposed rule to expand its “blanket certificate” program, which streamlines small pipeline permitting.

Data centers

• Oregon city temporarily halts new data center development. The Hillsboro City Council approved a temporary moratorium on new data centers while officials evaluate their impacts on electricity demand, water use, and land-use planning. (NewsData, July 28, 2026).

EVs

• Oil supply crisis accelerates shift toward electric vehicles. Disruptions linked to the Strait of Hormuz crisis are accelerating interest in electric vehicles as higher and more volatile oil prices strengthen the economics of electrification, according to IEA data. The trend illustrates how energy-security concerns can reinforce policies aimed at reducing petroleum dependence. (Climate Change News, July 30, 2026).

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From the California Energy Journal

BLM Finalizes Central California Oil Leasing Plan, Begins Review of 36,000 Acres (July 3, 2026) – The Bureau of Land Management has finalized a plan making approximately 850,000 acres of federal land and mineral estate in Central California available for potential oil and gas leasing. It has also started to review 50 parcels for a future lease sale. Read more.

California News and Analysis

Oil and gas

• Chevron’s former Carpinteria oil and gas facility entered the next phase of decommissioning, including removal of underground pipelines and future soil testing. (Santa Barbara Independent, June 29, 2026).

Commentary and analysis

• Paasha Mahdavi and Eleanor Thomas, “A Vote on Oil Phaseout That Could Make History,” Santa Barbara Independent, July 6, 2026.

• “Trump Administration Scoffs at Federal and California Law and Public Process to Hand Public Lands to Big Oil,” Los Padres Forest Watch, Edhat, July 5, 2026.

• Robert Sulnick, “California and Central Coast fight back against Trump attempt to “drill, baby, drill,” Santa Barbara News Press, July 2, 2026.

Offshore oil

• Sable Offshore suggested the Department of Energy should consider using eminent domain authority to assemble storage infrastructure if necessary. The proposal underscores the administration’s continued evaluation of a California petroleum reserve as part of its energy security strategy. (Politico Pro, July 6, 2026).

Gasoline and fuels

• California legislation aimed at curbing gas price gouging during wartime is facing opposition from business groups that argue the proposal is too broad. (Sacramento Bee, June 30, 2026).

• California’s gas tax increased by 2.2 cents on July 1, bringing the state excise tax to 63.4 cents per gallon. (NBC San Diego, June 29, 2026).

• A lawsuit accusing gas retailers and pricing-software company Kalibrate of using AI to coordinate pump prices will test California’s updated antitrust law. (Los Angeles Times, July 1, 2026).

• Sen. Adam Schiff unveiled a plan to hold oil companies accountable for alleged price gouging as California drivers continue to face high fuel prices. (Spectrum News, July 2, 2026).

Commentary and analysis

• Dan Blaustein-Rejto and Lauren Teixeira, “California’s Hidden Gas Tax Is Due for Reform,” The Ecomodernist, June 29, 2026.

• Alejandro Lazo, “Rules to Rein In CA Gas Prices Still on The Shelf,” San Jose Inside, July 3, 2026.

Air quality

• The Ninth Circuit upheld South Coast Air Quality Management District regulations that phase out the sale of large gas-fired water heaters and boilers, ruling that the standards are not preempted by federal energy efficiency law. The decision preserves one of California’s most significant local building electrification policies and may influence similar regulations elsewhere. (E&E News, July 6, 2026).

Data centers

• California Resources Corp. is positioning itself beyond oil production by pursuing carbon storage and potential data center development opportunities. (Politico, June 26, 2026).

Commentary and analysis

• Anthony Velasquez, “California’s Bad Energy Policy Is the Real Threat to the AI Boom,” Pacific Research Institute, June 30, 2026.

Batteries and storage

• California community choice aggregators are expanding their role in energy storage through new battery projects designed to support grid reliability and clean power integration. (PV Magazine, June 29, 2026).

Climate policy

• Rising utility costs are prompting some states, including California and New York, to soften or delay ambitious climate policies amid affordability concerns. (Governing, June 29, 2026).

Commentary and analysis

• Aerin Monroe, “Climate Policy In California – Will A New Governor Bring Change?,” Northcoast Environmental Center, July 1, 2026.

Federal policy

• US clean power prices expected to rise with end of tax credits. US companies are facing a sharp increase in green energy costs as the Trump administration halts renewable tax credits at the same time as cash-rich data centers are buying the available supply. (FT, July 4, 2026)

Shipping

• Shipowners turn to fossil fuels instead of green energy. The shipping industry’s backing for green power has sunk as the majority of vessel owners stick to traditional dirty marine fossil fuels or explore alternatives including nuclear energy. (FT, July 5, 2026).

Legislation

• AB 2313 continues to make progress in the Senate. The bill would require gas utilities to offer an alternative to a gas distribution service line and a monetary incentive to deploy gas distribution service line replacement alternatives and cease gas.

• AB 40 also continues to advance in the Senate. The bill would create new economic reporting requirements for the Oakland coal export projects.

Additional News and Analysis

Oil and gas

• Canada and Alberta announced plans to build a new one-million-barrel-per-day pipeline from Alberta to the Pacific coast to expand crude exports to Asia and reduce dependence on U.S. markets. The project is expected to follow much of the existing Trans Mountain corridor and forms part of Canada’s broader strategy to diversify energy exports and accelerate major infrastructure development. (Reuters, July 3, 2026).

Federal energy policy

• The Nuclear Regulatory Commission proposed changing radiation-protection rules as part of a broader federal effort to streamline nuclear power development. (Reuters, July 1, 2026).

• The Trump administration ended rebates for switching from gas to electric appliances, limiting federal incentives to upgrades from existing electric equipment. (The Hill, June 2026).

Executive power & regulation

• The Supreme Court expanded presidential authority over independent agencies, a ruling that could affect energy regulators such as FERC and the Nuclear Regulatory Commission. (E&E News, SCOTUSblog, June 29, 2026).

Climate policy

• The United States accounted for about one-third of the global increase in carbon dioxide emissions in 2025 as higher natural gas prices pushed power producers back toward coal. (Reuters, June 29, 2026).

• The World Bank plans to abandon its goal of devoting 45% of lending to climate-related projects, reflecting pressure to shift away from input-based climate finance targets. (Reuters, June 29, 2026).

Questions, comments, or tips? Contact editor@californiaenergyjournal.com.

From the California Energy Journal

California to Sue Trump Administration Over Offshore Wind Lease Cancellations (June 25, 2026) – California is preparing to sue the Trump administration over its decision to cancel offshore wind leases off the state’s coast. The suit will focus on the lease buyback for Golden State Wind LLC in Morro Bay off the state’s Central Coast. Read more.

PHMSA Grants Sable 10-Year Special Permit Waiving Federal Pipeline Repair Deadline (June 29, 2026) – The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) granted Sable Offshore Corp. a 10-year special permit for an alternative integrity management program for approximately 124 miles of the Santa Ynez Pipeline System. PHMSA stated that the permit satisfies the requirements of the federal consent decree entered after the 2015 pipeline rupture while maintaining an equivalent or higher level of pipeline safety. Read more.

Additional California News and Analysis

Offshore oil

• The Trump administration announced that it will review California’s coastal oversight, including scrutiny of the California Coastal Commission, as part of its effort to expand offshore energy development. (KQED, June 26, 2026).

• Chevron is in the process of removing aging offshore oil infrastructure near Carpinteria, including pipeline removal, as part of its long-term decommissioning program under state and federal oversight. (KEYT, June 22, 2026).

• The Santa Barbara County Air Pollution Control District Hearing Board granted Sable Offshore Corp. a five-day pollution waiver allowing one of its offshore platforms to continue operating despite exceeding emissions limits while the company works to resolve compliance issues. (Noozhawk, June 26, 2026; Santa Barbara Independent, June 27, 2026).

Oil

• Federal officials approved new oil and gas leases in California after years of delays, describing the move as part of a broader effort to increase domestic energy production. (New York Post, June 25, 2026).

• The Los Angeles City Council approved an ordinance to ban new oil and gas drilling and phase out existing oil production over the next 20 years, reviving a 2022 measure that was struck down in court. (Los Angeles Times, June 23, 2026).

Commentary and analysis

• Edward Ring, “The Best Way to Eliminate Methane Leaks is to Drill,” California Policy Center, June 24, 2026.

• Soumya Karlamangla, “California’s Plastic Law Goes to Court: Is It Too Strict or Too Lax?,” New York Times, June 24, 2026.

• Kemp Gregory, “Can Idle Kern Oil Wells Become Renewable Energy Storage?,” GV Wire, June 23, 2026.

Vehicle emissions

• California asked a federal court to prevent Congress and the Trump administration from overturning the state’s vehicle emissions waivers, arguing the repeal violates constitutional and administrative law principles. (Reuters, June 25, 2026).

EVs

• Gov. Gavin Newsom and state lawmakers reached a budget deal to provide $135 million for a state EV rebate program that would provide a $3,500 instant rebate for new EV purchases. (USA Today, June 29, 2026).

Power and utilities

• A consumer watchdog estimated PG&E customers could pay roughly $840 more annually by 2030 because of rising utility costs, though the utility disputed the estimate. (San Francisco Chronicle, June 25, 2026).

Carbon and emissions

• California, Washington, and Quebec signed an agreement to pursue linking their carbon markets, a move intended to reduce emissions more efficiently, expand market liquidity, and lower compliance costs. (Agreement, June 25, 2026; see also California Energy Journal, March 20, 2026).

• The California Air Resources Board (CARB) is deferring the reporting deadline for entities to report Scope 1 and Scope 2 greenhouse gas (GHG) emissions from August 10, 2026, to November 10, 2026. It will also revise the rule. (CARB, June 24, 2026).

AI and data centers

Commentary and analysis

• Blanca Begert, “If AI data centers are exploding nationwide, why are so few being built in California?,” Los Angeles Times, June 23, 2026.

Additional News and Analysis

Oil and gas

• The United States and Qatar urged the European Union to revise its methane regulations, warning the rules could discourage liquefied natural gas exports and create future supply risks. (Reuters, June 24, 2026).

Nuclear

• The Trump administration outlined plans to streamline permitting and speed construction of advanced nuclear reactors to expand U.S. electricity generation and strengthen energy security. (Associated Press, June 23, 2026).

AI and data centers

• Chevron and Microsoft are studying whether treated produced water from Permian Basin oil operations can be used to cool AI data centers and reduce freshwater consumption. (Houston Chronicle, June 23, 2026).

• The head of the US’s largest utility has warned that the nation could face blackouts as soon as 2027 due to the strain AI has put on the grid, saying electricity bill increases are needed to fund new infrastructure. (FT, June 26, 2026).

Commentary and analysis

• Josh Siegel and Nico Portuondo, “Data center energy bill hits speed bump,” Politico, June 25, 2026.

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From the California Energy Journal

Federal Judge Rejects California Bid to Halt Sable Pipeline Operations (June 1, 2026) – A federal judge denied California’s request for a preliminary injunction that would have halted Sable Offshore Corp.’s restart of the Las Flores Pipeline System, allowing pipeline operations to continue while the lawsuit proceeds. Read more.

California News and Analysis

Oil and gas

• For the first time, crude oil from the U.S. Strategic Petroleum Reserve was shipped to California, reflecting major shifts in global oil trade flows as disruptions in Middle East supplies force California to seek alternative crude sources for its refineries. Reuters, May 27, 2026.

• Three Trump administration Cabinet secretaries plan to visit the Sable Offshore Corp. oil project off the Gaviota coast later this week. E&E News, June 1, 2026.

• Sen. Adam Schiff and Rep. Salud Carbajal sent a letter to Sable CEO Jim Flores requesting that the company disclose all of its communications with the DOE where it requested the federal agency invoke the Defense Production Act. E&E News, May 28, 2026.

Gasoline and fuels

Commentary and analysis

• Rosilicie Ochoa Bogh, “Why is gas so expensive in California? Follow the policies,” Orange County Register, May 31, 2026.

EVs

• The California Energy Commission (CEC) announced $55.2 million in new funding to accelerate the installation of publicly available fast chargers across the state. The funding will be available through the California Electric Vehicle Infrastructure Project (CALeVIP). CEC, May 28, 2026.

Carbon and emissions

• The California Air Resources Board (CARB) approved amendments to the state’s cap-and-invest program, adopting changes intended to align the program with California’s 2045 climate targets while addressing concerns about energy affordability, refinery closures, and industrial competitiveness. CEC; AP, May 29, 2026.

AI and data centers

• The California State Senate passed two data center bills that aim to address increasing electricity rates. SB 886 would establish a tariff on data centers to protect ratepayers from the increased costs of supplying data centers; and SB 887 would clarify that data centers are eligible for streamlined environmental review under the California Environmental Quality Act (CEQA) but are not exempt from CEQA review.

Politics

• Large corporations, including energy companies, are spending millions to support Xavier Becerra in California’s gubernatorial primary as the safe option over progressive billionaire Tom Steyer. San Francisco Standard, May 31, 2026.

• Becerra would not commit to the state’s goal of banning purchases of new gas and hybrid vehicles starting in 2035, in a recent POLITICO survey. Politico, May 30, 2026.

• Becerra stated that California “should transition from gas-powered vehicles when it makes sense — when infrastructure and affordability are there for California families.” Becerra said California’s move away from fossil fuels depends on unpredictable factors like federal backing, automaker collaboration, and the state’s financial health. California Post, May 31, 2026.

Commentary and analysis

• Noah Baustin, “Oil money is taking center stage in the California governor’s race,” Politico, May 29, 2026.

Renewables

Commentary and analysis

• Christopher F. Rufo and Austen Hufford, “Inside Gavin Newsom’s Solar Scam,” City Journal, May 27, 2026.

• William Driscoll, “Solar-friendly dynamic pricing of electricity could cut California’s peak demand by several GW,” PV Magazine, May 27, 2026.

Additional News and Analysis

Oil and gas

• H.R. 9034, introduced on May 26, 2026, would require oil and gas companies to establish decommissioning escrow accounts for offshore oil and gas operators.

Offshore wind

• Republicans’ FY2027 Interior spending bill would impose substantial new inspection and oversight fees on offshore wind projects, including annual charges and per-turbine inspection fees that developers say could significantly raise project costs. E&E News, May 28, 2026.

• The Trump administration’s strategy of paying offshore wind developers to surrender leases has expanded beyond earlier buyouts, and industry observers say additional East and West Coast projects could be targeted. E&E News, May 26, 2026.

Renewable energy

• Global clean-energy trade reached a record $479 billion in 2025 despite tariffs and a push to localize clean-energy manufacturing, as strong demand for solar panels, batteries, electric vehicles, and grid equipment kept cross-border trade growing. Semafor, May 28, 2026.

• The Trump administration is moving to eliminate federal rebates that subsidize consumers’ switch from gas to electric appliances, arguing that the government should not favor one energy source over another. The change would unwind a key consumer-facing component of clean-energy incentives established under the Inflation Reduction Act. The Hill, May 30, 2026.

Carbon and emissions

• The U.S. Securities and Exchange Commission (SEC) formally proposed rescinding the Biden-era climate disclosure rule that would have required public companies to report climate-related risks and certain emissions data. The Hill, May 29, 2026.

AI and data centers

• Increasing demand for electricity from AI data centers is driving a boom in U.S. gas-fired power investment, leading the International Energy Agency to project that U.S. investment in fossil-fuel power generation will surpass China’s in 2026. Carbon Brief, May 29, 2026.

Critical minerals

Commentary and analysis

• Camilla Hodgson, “Race for rare earths sparks concern about environmental damage,” FT, May 30, 2026.