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
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.
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).
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).
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).