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 Congress Members Challenge Federal Use of DPA for Sable Pipeline Restart (September 10, 2026) – A group of Democratic members of Congress has asked a federal court to invalidate the Trump administration’s use of national security emergency powers to support the restart of Sable Offshore Corp.’s Santa Ynez Pipeline System. Read more.
Trump Expands Interior’s Energy Authority Under Defense Production Act (September 14, 2026) – President Donald Trump expanded the Interior Department’s authority over energy production and distribution under the Defense Production Act. The change could increase the department’s role in federal efforts to restart offshore oil production in California. Read more.
California News and Analysis
Offshore oil
Lawmakers file brief challenging federal intervention in Sable pipeline restart. A group of 18 members of Congress led by Rep. Salud Carbajal and Sens. Sheldon Whitehouse, Alex Padilla and Adam Schiff filed an amicus brief in California v. Wright challenging the federal government’s use of the Defense Production Act to facilitate the restart of Sable Offshore’s Santa Ynez pipeline system. The brief argues that the federal government has not established the national-defense need required to invoke the statute. Santa Barbara Independent, September 8, 2026.
Regional electricity markets
CPUC prepares rulemaking on California’s transition to a regional electricity market. The California Public Utilities Commission is preparing to open a proceeding implementing the 2025 legislation authorizing changes to CAISO governance needed for participation in a broader Western electricity market. RTO Insider, September 10 2026.
Electricity rates and reliability
Affordability report identifies four drivers of California’s high electricity rates. Energy Innovation and GridLab argue that California can slow and eventually reverse electricity-rate increases through changes to utility capital-investment incentives, wildfire financing, distributed-energy policy, and the way climate and public-policy programs are funded. Energy Innovation, September 10, 2026.
CPUC explains how it measures electric reliability. The California Public Utilities Commission (CPUC) published an overview of the reliability metrics and regulatory processes it uses to assess utility performance, including outage duration and frequency. California Public Utilities Commission, September 8, 2026.
Energy storage and distributed energy
CEC reduces size and state funding for Form Energy long-duration storage demonstration. The California Energy Commission approved changes reducing Form Energy’s planned iron-air storage demonstration at PG&E’s Mendocino Substation from 1.5 MW/150 MWh to 1 MW/100 MWh. CEC funding falls from $25 million to about $16.7 million. California Energy Commission, September 9, 2026.
EPA begins final phase of Moss Landing battery cleanup. EPA began the final phase of cleanup at Vistra’s fire-damaged Moss Landing battery storage facility, including demolition needed to reach remaining severely damaged batteries and processing the material for off-site disposal. U.S. Environmental Protection Agency, September 8, 2026.
Distributed energy, solar and storage
Google funds PG&E virtual power plant demonstration. Google is funding a PG&E demonstration designed to aggregate tens of thousands of batteries, thermostats, and other distributed resources in two Northern California counties. Utility Dive, September 10, 2026.
Study identifies 17.5 GW of potential distribution-connected solar and storage. An analysis by Kevala estimates that front-of-meter solar and storage connected to substations owned by California’s three major investor-owned utilities could serve approximately 17.5 GW of local summer peak load, equivalent to about 32% of forecast 2032 peak demand. Utility Dive, September 9, 2026.
Natural gas and power generation
California gas-fired electricity generation continues steep decline. Natural gas generation fell by 15 percent in 2025 and another 26 percent during the first half of 2026, according to federal data. Growth in solar and battery storage is a major factor, although gas plants continue to provide reliability and flexibility when renewable generation is unavailable. Inside Climate News, September 10, 2026.
Hydrogen
Environmental groups challenge Los Angeles plan to convert Scattergood power plant to hydrogen. A coalition sued Los Angeles and the Department of Water and Power over plans to convert part of the city’s largest natural-gas power plant to hydrogen, alleging the city violated CEQA when it approved the project. Los Angeles Times, September 10, 2026.
Geothermal
BLM schedules California geothermal lease sale for October. The Bureau of Land Management plans to offer 19 parcels covering approximately 40,000 acres in six California counties at an online auction on October 27. A lease would allow exploration and potential development, subject to further review before surface disturbance. Bureau of Land Management, September 11, 2026.
Data centers
California cities consider moratoria and restrictions on new data centers. Gilroy approved a 45-day moratorium on new data-center development applications while officials develop zoning and operating standards for future projects. Local governments in Hayward, and San Francisco are considering restrictions on new data-center development amid concerns about electricity and water use, environmental effects, and infrastructure demands. City of Gilroy, September 10, 2026; City of Hayward, September 8, 2026; Mission Local, September 10, 2026. NBC Bay Area, September 14, 2026.
Nuclear
Coastal erosion renews scrutiny of spent nuclear fuel stored at San Onofre. Recent storm-driven erosion has revived questions about the long-term storage of approximately 3.6 million pounds of radioactive waste near the Pacific Ocean at the decommissioned San Onofre Nuclear Generating Station. Los Angeles Times, September 12, 2026.
Commentary and analysis
Ivan Penn, “Why California Is Reconsidering Its Decision to Shun Nuclear Power, New York Times, September 9, 2026.
Climate and federal policy
California opposes proposed changes to the National Climate Assessment. Attorney General Rob Bonta joined a multistate coalition opposing a federal proposal to amend the Fifth National Climate Assessment to restrict federal agencies’ use of findings based on certain high-emissions scenarios. California Department of Justice, September 10, 2026.
Commentary and analysis
“Stopping California’s Climate Imperialism,” Wall Street Journal, September 8, 2026.
Permitting and siting
Proposition 45 would expedite environmental reviews for certain projects. California voters will decide November 3 whether to create expedited California Environmental Quality Act procedures for designated projects, including clean energy, water, transportation and wildfire-mitigation projects. Proposition 45 would impose tighter review deadlines, generally give agencies 365 business days to complete environmental impact reports, and limit aspects of judicial review. CBS News Sacramento, September 8, 2026.
Beyond California
Data centers and electricity demand
Congress to address data-center electricity costs. House leaders said the chamber would take up the bipartisan Ratepayer Protection Act, which is aimed at preventing electricity infrastructure costs associated with data-center expansion from being shifted to residential customers. Reuters, September 10, 2026.
Microsoft reportedly plans 38 GW of data-center capacity by 2032. The company’s planned global capacity would more than triple its current roughly 12 GW footprint. Reuters, September 10, 2026.
EPA considers easing environmental rules affecting data-center power. The Trump administration is considering regulatory changes that could make it easier to deploy temporary gas turbines and other power infrastructure serving data centers, potentially reducing permitting barriers while raising air-quality concerns. Axios, September 10, 2026.
South Korea considers more nuclear generation as AI increases electricity demand. South Korean electricity demand is expected to rise substantially as AI data centers expand, contributing to a government debate over additional nuclear generation. Reuters, September 8, 2026.
Federal emissions policy
EPA repeals federal greenhouse-gas standards for power plants. The EPA finalized repeal of federal greenhouse-gas standards for existing coal-fired and new natural-gas power plants, arguing that the Clean Air Act does not provide authority for the regulations. State emissions requirements remain in place. Reuters, September 14, 2026.
Nuclear
Federal government provides up to $1.9 billion to restart Iowa nuclear plant. NextEra Energy secured a Department of Energy loan to support restarting the 615-MW Duane Arnold Energy Center, which closed in 2020. Google has agreed to purchase the plant’s output under a 25-year contract, linking another nuclear restart directly to growing data-center electricity demand. Reuters, September 8, 2026.
Nuclear expansion remains well short of global targets. An analysis of World Nuclear Association projections finds that annual reactor construction would have to increase roughly fivefold by the late 2030s to meet international ambitions to triple nuclear capacity by 2050. Financial Times, September 8, 2026.
Oil and geopolitics
IEA increases estimate of oil-supply losses. The International Energy Agency projected that global oil supply could fall 5.7 million barrels per day in 2026 as Middle East disruptions persist, while diesel and other refined-product markets remain particularly tight. Reuters, September 11, 2026.
Solar
Commerce Department finalizes steep tariffs on solar imports from India, Indonesia and Laos. The U.S. Department of Commerce finalized antidumping duties of 123% on Indian solar products, 94% on Indonesian products and 65% on products from Laos, along with substantial countervailing duties after finding that producers benefited from government subsidies. Reuters, September 11, 2026.
Commentary and analysis
Rachel Millard et. al, “‘Offensively cheap’: solar power is looking up: Chinese-made panels on rooftops across the world are changing the facts of life for big utilities,” Financial Times, September 13, 2026.