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
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.