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 Sues to Block Second Morro Bay Offshore Wind Lease Buyout (September 23, 2026) – California filed a federal lawsuit September 22, 2026 seeking to block the Trump administration’s agreement to pay Invenergy $111.8 million in connection with the cancellation of its offshore wind lease near Morro Bay. The case follows California’s August 28 challenge to a separate agreement involving Golden State Wind’s Morro Bay lease. Read more.
CEJ Alert: Newsom Signs Seven Data Center Bills on Electricity Costs, Water Use, and Environmental Review (September 23, 2026) – Governor Gavin Newsom signed seven data center bills on September 21, establishing new requirements for electricity rates, energy and water reporting, and project approvals. Read more.
Environmental Groups Challenge Federal Safety Permit for Sable Pipelines (September 23, 2026) – Environmental groups filed a petition in the U.S. Court of Appeals for the Ninth Circuit on September 22, 2026, challenging a federal special permit for Sable Offshore Corp.’s Las Flores Pipeline System. The case contests a June 25 decision by the Pipeline and Hazardous Materials Safety Administration (PHMSA) that allows an alternative approach to meeting a federal corrosion-repair requirement. Read more.
CEJ Alert: California Moves Toward a Three-Jurisdiction Carbon Market (September 28, 2026) –Governor Gavin Newsom announced September 23 that he had made the findings required for California to pursue linkage of its Cap-and-Invest program with Washington’s carbon market. The action allows the California Air Resources Board (CARB) to begin the public rulemaking needed to add Washington to the market California already shares with Québec. Read more.
California News and Analysis
EVs
CEC report finds reservation-based shared charging can expand multifamily EV access. A state-funded demonstration installed 124 Level 2 chargers at 21 multifamily properties in four counties and recorded more than 6,200 charging sessions, finding that shared public-private access can improve utilization and help offset installation costs. California Energy Commission, September 23, 2026.
Emissions
House votes to revoke California’s maritime-emissions waivers. The House approved measures targeting federal waivers that allow California to require shore power for large ships and cleaner engines for some commercial vessels. The measures still require Senate approval and the president’s signature, while litigation continues over whether Clean Air Act waivers may be repealed under the Congressional Review Act. Los Angeles Times, September 24, 2026.
Electricity supply
California agencies project positive electricity-supply margins for summer 2026. The third-quarter SB 846 assessment says the CAISO system is expected to retain a margin above 6,750 MW under planning conditions and above 3,000 MW during a 2022-style extreme-heat event, although wildfires, new loads, and project delays remain risks. California Energy Commission, September 21, 2026.
Electricity affordability
Southern California customers receive $886 million in utility-bill credits. Residential customers of PG&E, Southern California Edison and SDG&E are receiving credits averaging approximately $75, funded through the state’s Cap-and-Invest program. Governor of California, September 22, 2026.
CPUC and utility regulation
Newsom signs two measures intended to shorten utility-energization delays. AB 2518 establishes deadlines of 40 to 70 business days for SDG&E to energize construction-ready projects, while SB 1196 directs the CPUC to set statewide timelines for ADUs, EV chargers, home batteries and other small projects.
Newsom signs law to prohibit utilities from charging customers for campaigns against municipal power. SB 327 prohibits investor-owned utilities from using electricity-customer funds to oppose efforts to establish publicly owned utilities.
CPUC staff propose a $16 million wildfire penalty against Liberty Utilities. The proposed enforcement order alleges violations of overhead-line requirements connected with the 2020 Mountain View Fire, which burned approximately 20,835 acres and damaged or destroyed 97 structures. California Public Utilities Commission, September 25, 2026.
CPUC administrative law judges issue several consequential energy proposals. Proposed decisions would establish a climate-adaptation policy framework, create an application process for utility orchestration of distributed resources, require load-flexibility scenarios in distribution planning, provide two years of bridge funding for demand-response programs and deny SoCalGas’ proposed optional microgrid tariff without prejudice. California Public Utilities Commission, September 28, 2026.
San Francisco advances its effort to acquire PG&E’s local electric system. The Board of Supervisors rejected PG&E’s challenge to the city’s environmental review, allowing the municipal-power proposal to proceed toward CPUC valuation and other regulatory steps. San Francisco Chronicle, September 23, 2026.
Wildfires
Southern California Edison seeks a special legislative session on wildfire liability. Edison International CEO Pedro Pizarro said the absence of a new liability framework is increasing utility borrowing costs and could ultimately raise customer costs. Reuters, September 24, 2026.
Refining and fuels
Newsom authorizes the early sale of winter-blend gasoline. The action allows California fuel suppliers to begin transitioning to the less expensive winter formulation several weeks early in response to high gasoline and diesel prices. Governor of California, September 28, 2026.
Newsom requests public reporting on wholesale fuel prices. In the same letter authorizing the early release of winter-blend gasoline, Newsom also directed the CEC, CARB, and DPMO to publish “a regular public spot-market report for gasoline and diesel using aggregated, anonymized trading data, including a transparent process to mitigate illiquidity and volatility.” He also directed the CEC to collect information on renewable diesel. Governor of California, September 28, 2026.
Newsom signs law to direct the CEC to pursue refinery-transition agreements with local governments. SB 1337 calls for memoranda of understanding with air districts and jurisdictions containing refineries to coordinate fuel-market management and environmental, labor, economic and consumer protections.
Newsom vetoes a broader assessment of emergency fuel and transportation resources. The governor said AB 2543 would duplicate existing state preparedness work and create an estimated $1 million in implementation costs. Governor’s veto message, September 27, 2026.
Offshore oil
Santa Barbara County opposes proposed federal intervention supporting Sable Offshore. County supervisors condemned language added to federal defense legislation that could authorize federal acquisition of property needed for Sable’s pipeline operations, overriding state and local constraints. Santa Barbara Independent, September 23, 2026.
Oil
Newsom signs law requiring payments for families near Inglewood Oil Field. AB 1661 requires 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. Governor of California, September 27, 2026.
Critical minerals
Newsom signs law to establish strategic clean-energy and critical-mineral development zones. AB 2163 directs the California Energy Commission to identify regions capable of supporting large-scale clean-energy production, critical-mineral supply chains, and energy-intensive manufacturing.
Energy storage
Newsom vetoes a proposal to expand treatment of energy-only storage resources. The governor said AB 2369 would duplicate an existing CPUC proceeding on storage procurement, interconnection and market participation. Governor’s veto message, September 27, 2026.
Data centers and electricity demand
Bay Area cities move toward moratoria on new data centers. Oakland and Richmond adopted or considered restrictions, while San Francisco pursued its own pause amid concerns over electricity demand, diesel backup generation, water use, and infrastructure costs. San Francisco Chronicle, September 24, 2026.
California’s large-data-center inventory could grow from 55 facilities to approximately 85. Thirty additional projects are planned for 2027 and beyond, and the next generation of facilities is projected to use an average of 2.5 times as much power as those opening in 2026. Axios, September 28, 2026.
Commentary and analysis
Jeff St. John, “Should we get excited about California’s latest virtual power plant?,” Canary Media, September 23, 2026.
Solar energy
Second federal judge rules that EPA unlawfully canceled Solar for All grants. U.S. District Judge Tanya Chutkan concluded that EPA incorrectly interpreted federal law when it terminated the $7 billion program and vacated the agency’s decision. California’s grant includes approximately $250 million for community solar, storage and workforce programs. Reuters, September 23, 2026.
International
California expands international clean-energy cooperation during Climate Week. The state signed an agreement with Spain covering electrification, battery storage, carbon markets, methane reduction, and climate resilience. It also advanced partnerships with Australia, Finland and Catalonia. Governor of California, September 22, 2026.
Energy policy
Commentary and analysis
James Gallagher, “How to fix California’s disastrous energy policies & high costs,” The Ceres Courier, September 23, 2026.
Beyond California
Transportation and emissions
Trump administration lowers federal vehicle fuel-economy standards. The Transportation Department reduced the required fleetwide average for 2031 from 50.4 to 34.9 miles per gallon and will end credit trading among automakers in 2028. The department estimates that the rule will lower manufacturers’ compliance costs but increase fuel consumption and carbon emissions. Reuters, September 28, 2026.
Oil
U.S. Strategic Petroleum Reserve inventories fall to their lowest level since 1982. Federal data showed the reserve at 283.8 million barrels following continued releases, increasing attention to fuel-security policy as California develops its own petroleum-reserve framework. Reuters, September 28, 2026.