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.
From the California Energy Journal
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.
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.
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.
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.
Did not pass
AB 193 and SB 193, alternative vehicles for a wildfire compensation and utility-liability package, did not receive the votes needed to advance before lawmakers adjourned.
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 2383, which would have imposed special electricity-rate and cost-allocation requirements on data centers, remained on the Senate floor without receiving a final vote before the Legislature adjourned.