This weekly newsletter highlights the latest from the California Energy Journal along with links to articles and analysis on key developments in California energy policy.
Questions, comments, or tips? Contact editor@californiaenergyjournal.com.
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.