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.
California Energy Journal has a new legislation tracker, which provides a database on active legislation impacting California energy policy.
From the California Energy Journal
California Coastal Commission Objects to Offshore Fracking Proposal (August 14, 2026) – The California Coastal Commission unanimously objected on August 13, 2026 to DCOR LLC’s proposal for hydraulic fracturing, known as fracking, at 16 wells on Platform Gilda in federal waters off Ventura, California. The proposal would have been the first fracking off California’s coast in more than a decade. The vote comes after the commission released two staff reports on the project in July. Read more.
Western Gateway Pipeline to Move Forward, Creating New Fuel Route into California (August 12, 2026) – Phillips 66, Kinder Morgan and HF Sinclair have made a final investment decision to proceed with the $5 billion Western Gateway Pipeline, a 1,300-mile refined-products system designed to transport fuel from the Midwest and Gulf Coast to Arizona and California. The companies announced August 11 that they had finalized a joint venture agreement for the project. Phillips 66 will own 49.9% of the system, Kinder Morgan 35.1% and HF Sinclair 15%. Read more.
California News and Analysis
Oil, refining and fuels
Jones Act waiver drives surge in Gulf Coast fuel shipments to the West Coast. Waterborne shipments of crude oil and petroleum products from the Gulf Coast to the West Coast more than quadrupled year over year in April and May after the federal government waived domestic shipping restrictions. (U.S. EIA, August 17, 2026).
CPUC approves CRC pipeline acquisition. The California Public Utilities Commission (CPUC) authorized CRC to acquire the San Pablo Bay Pipeline and Crimson California Pipeline companies from CorEnergy Infrastructure Trust. (E&E News, August 14, 2026). (New York Post, August 11, 2026).
Commentary and analysis
R.J. Briggs, “California’s Gas Crisis Is a Policy Failure at Every Level,” The Regulatory Review, August 11, 2026.
Offshore oil and coastal policy
Ninth Circuit leaves Sable pipeline’s federal designation in place. A federal appeals court partially dismissed an environmental groups’ challenge to federal oversight of Sable Offshore’s Las Flores pipeline system, finding that PHMSA’s subsequent jurisdictional determination made the dispute moot. (Bloomberg Law, August 12, 2026).
Sable plans September restart of third Santa Ynez Unit platform. Sable Offshore expects to restart production from its Hondo platform in September, following the earlier restart of the Heritage and Harmony platforms as it ramps up production at the Santa Ynez Unit. (Offshore Energy, August 12, 2026).
California officials vow legal fight over federal review of state coastal authority. California officials, Indigenous leaders, environmental advocates and business groups are opposing a Trump administration review of California’s Coastal Management Program that could weaken the state’s ability to challenge offshore oil development and other coastal projects. (KQED, August 11, 2026).
Transportation and efficiency
CEC adopts nation’s first replacement-tire efficiency standards. The California Energy Commission unanimously approved standards requiring replacement tires sold for passenger vehicles and light-duty trucks to meet minimum efficiency requirements beginning in 2029, with stricter requirements taking effect in 2033. (California Energy Commission, August 17, 2026); (KCRA, August 17, 2026).
Electricity rates and affordability
Wildfire costs and public programs drive California electricity bills higher. Researchers identify wildfire mitigation and liabilities as the largest contributors to recent rate increases, with rooftop-solar incentives and other programs funded through utility rates adding to the burden. (UC Berkeley Letters & Science, August 14, 2026).
Becerra proposes free electricity during periods of surplus generation. Democratic gubernatorial candidate Xavier Becerra has proposed providing Californians with free electricity during designated daytime “power hours” when solar generation is abundant. (Yahoo News, August 17, 2026).
Grid and energy storage
Grid-upgrade delays stall battery-storage projects. U.S. utilities are struggling to connect a growing backlog of battery projects because of transmission constraints, equipment shortages and rising interconnection costs. In California, PG&E reported that long lead times for specialized equipment have placed at least 1,250 MW of storage projects at risk of delay. (Bloomberg, August 15, 2026).
Montana power company joins California’s regional day-ahead market. BHE Montana signed an agreement to participate in CAISO’s Extended Day-Ahead Market, becoming the eighth entity to formally commit to the regional electricity market. (E&E News, August 12, 2026).
Federal emissions policy
House Republican seeks to overturn California commercial harbor craft emissions rule. Rep. James Gallagher introduced a Congressional Review Act resolution seeking to overturn EPA’s January 2025 authorization of California’s Commercial Harbor Craft Amendments. The CARB rules expand emissions requirements to additional commercial vessels and impose new engine and zero-emission requirements on several vessel categories. (Sierra Daily News, August 11, 2026).
Offshore wind
Senators introduce bill aimed at preserving surrendered California offshore wind leases. Sens. Alex Padilla and Angus King introduced legislation that would require the Interior Department to offer surrendered offshore wind acreage to adjacent leaseholders at the original auction price and reoffer unclaimed acreage under the original terms. (ECO Magazine, August 11, 2026).
California takes legal action over Trump administration offshore wind cuts. California officials are moving forward with legal action challenging the Trump administration’s actions targeting offshore wind development, escalating the state’s effort to preserve its plans for building a floating offshore wind industry along the California coast. (Politico, August 11, 2026).
Solar
Commentary and analysis
Edward Ring, “Is Covering California’s Aqueducts and Canals with Solar Panels Economical?,” California Policy Center, August 12, 2026.
Hydrogen
California’s green-hydrogen ambitions face mounting setbacks. Project cancellations, federal funding cuts, fuel disruptions and limited demand have weakened California’s attempt to build a large clean-hydrogen industry. High production costs and inadequate fueling infrastructure remain major obstacles. (Los Angeles Times, August 17, 2026).
Nuclear
Commentary and analysis
“Gov. Newsom punts on Diablo Canyon extension. That’s a relief,” San Luis Obispo Tribune, August 11, 2026.
Legislation
Refinery-safety bill advances. SB 966 would place existing refinery worker-safety protections into state law as regulators prepare to revise the rules following a settlement with the oil industry. The union-backed legislation advanced despite oil industry opposition. (CalMatters, August 15, 2026).
Other refinery bills advance. AB 605, which addresses minimum refinery staffing plans, advanced to a third reading. SB 1259, which would require refinery shutdown and cleanup planning, also advanced to a third reading.
Bill allowing alternative gasoline blends on hold. The Assembly Appropriations Committee held SB 1245, which would have directed state agencies to develop a strategy for allowing gasoline that does not meet California’s CARBOB specifications when doing so could improve fuel affordability and reliability. (E&E News, August 14, 2026).
Price-gouging bill advances. SB 493 would add “war” to the list of emergencies under which it would be price-gouging to sell specified goods and services, including gasoline, for 10% more than previously charged.
Two bills to increase oil well financial guarantees on hold. AB 2461 would require any company that acquires control of an oil well to notify the supervisor of the operation and to file with the supervisor an indemnity bond in an amount determined by the supervisor to be sufficient to cover, in full, all costs of plugging and abandonment, decommissioning the facility, and site restoration, as provided. AB 2716 would have raised the financial guarantees that large oil producers had to provide to the state for their oil wells, while exempting some smaller firms from providing cleanup funds up front.
E85 conversion kits bill on hold. AB 2046 would exempt E85 conversion kits certified by the U.S. EPA as a clean alternative fuel conversion system from the California State Air Resources Board (CARB) approval requirement.
Bill imposing new controls on utility spending advances. SB 905 includes provisions to reduce “excess” returns on lower-risk investments, align executive compensation with cost control, establish performance metrics for utilities, maximize use of existing infrastructure, fund certain public purpose programs and wildfire-related costs through sources other than electricity bills, and evaluate low-cost financing options. (see also Canary Media, August 11, 2026).
Data-center bills advance. SB 886, which is intended to prevent data-center development from shifting electricity costs to other customers, and SB 887, which would encourage developers to invest in clean energy and surrounding communities. (Yahoo News, August 18, 2026).
Community solar bills advance. SB 868 would exempt a portable solar generation devices up to 1,200 W from interconnection requirements and allow them to be plugged into household outlets. AB 1813 reforms community solar policy, including by requiring bill credits to subscribers based on the avoided costs of a community renewable energy generators. (PV Magazine, August 17, 2026).
Additional News and Analysis
AI and data centers
U.S. electricity demand projected to set records through 2027 as AI use surges. The U.S. Energy Information Administration projects electricity consumption will increase from a record 4,195 billion kWh in 2025 to 4,268 billion kWh in 2026 and 4,391 billion kWh in 2027, driven in large part by AI-focused data centers and broader electrification. (Reuters, August 11, 2026).
AI will increase oil and gas production and global emissions. AI-driven productivity gains in the oil and gas industry will substantially increase global emissions, according to a report in the journal Nature led by two former Microsoft employees, outweighing any potential gains from clean energy. (FT, August 10, 2026).