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.
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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).