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From the California Energy Journal

California to Sue Trump Administration Over Offshore Wind Lease Cancellations (June 25, 2026) – California is preparing to sue the Trump administration over its decision to cancel offshore wind leases off the state’s coast. The suit will focus on the lease buyback for Golden State Wind LLC in Morro Bay off the state’s Central Coast. Read more.

Additional California News and Analysis

Offshore oil

• The Trump administration announced that it will review California’s coastal oversight, including scrutiny of the California Coastal Commission, as part of its effort to expand offshore energy development. (KQED, June 26, 2026).

• Chevron is in the process of removing aging offshore oil infrastructure near Carpinteria, including pipeline removal, as part of its long-term decommissioning program under state and federal oversight. (KEYT, June 22, 2026).

• The Santa Barbara County Air Pollution Control District Hearing Board granted Sable Offshore Corp. a five-day pollution waiver allowing one of its offshore platforms to continue operating despite exceeding emissions limits while the company works to resolve compliance issues. (Noozhawk, June 26, 2026; Santa Barbara Independent, June 27, 2026).

Oil

• Federal officials approved new oil and gas leases in California after years of delays, describing the move as part of a broader effort to increase domestic energy production. (New York Post, June 25, 2026).

• The Los Angeles City Council approved an ordinance to ban new oil and gas drilling and phase out existing oil production over the next 20 years, reviving a 2022 measure that was struck down in court. (Los Angeles Times, June 23, 2026).

Commentary and analysis

• Edward Ring, “The Best Way to Eliminate Methane Leaks is to Drill,” California Policy Center, June 24, 2026.

• Soumya Karlamangla, “California’s Plastic Law Goes to Court: Is It Too Strict or Too Lax?,” New York Times, June 24, 2026.

• Kemp Gregory, “Can Idle Kern Oil Wells Become Renewable Energy Storage?,” GV Wire, June 23, 2026.

Vehicle emissions

• California asked a federal court to prevent Congress and the Trump administration from overturning the state’s vehicle emissions waivers, arguing the repeal violates constitutional and administrative law principles. (Reuters, June 25, 2026).

EVs

• Gov. Gavin Newsom and state lawmakers reached a budget deal to provide $135 million for a state EV rebate program that would provide a $3,500 instant rebate for new EV purchases. (USA Today, June 29, 2026).

Power and utilities

• A consumer watchdog estimated PG&E customers could pay roughly $840 more annually by 2030 because of rising utility costs, though the utility disputed the estimate. (San Francisco Chronicle, June 25, 2026).

Carbon and emissions

• California, Washington, and Quebec signed an agreement to pursue linking their carbon markets, a move intended to reduce emissions more efficiently, expand market liquidity, and lower compliance costs. (Environmental Defense Fund, June 25, 2026).

AI and data centers

Commentary and analysis

• Blanca Begert, “If AI data centers are exploding nationwide, why are so few being built in California?,” Los Angeles Times, June 23, 2026.

Additional News and Analysis

Oil and gas

• The United States and Qatar urged the European Union to revise its methane regulations, warning the rules could discourage liquefied natural gas exports and create future supply risks. (Reuters, June 24, 2026).

Nuclear

• The Trump administration outlined plans to streamline permitting and speed construction of advanced nuclear reactors to expand U.S. electricity generation and strengthen energy security. (Associated Press, June 23, 2026).

AI and data centers

• Chevron and Microsoft are studying whether treated produced water from Permian Basin oil operations can be used to cool AI data centers and reduce freshwater consumption. (Houston Chronicle, June 23, 2026).

Commentary and analysis

• Josh Siegel and Nico Portuondo, “Data center energy bill hits speed bump,” Politico, June 25, 2026.

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Attorney General Rob Bonta announced June 23 that California will challenge the federal action in court, contending the administration violated the Outer Continental Shelf Lands Act (OCSLA) and failed to follow required federal administrative procedures when terminating the leases. The state also argues the decision jeopardizes thousands of anticipated jobs, significant port and supply-chain investments, and California’s ability to meet its climate and clean electricity targets.

The dispute marks the latest escalation in the growing conflict between California and the Trump administration over energy policy. While the administration has prioritized expanding domestic oil and gas production and scaling back federal support for offshore wind, offshore wind is a key component of California’s long-term decarbonization strategy. The state’s goal of 100% clean electricity by 2045 includes the development of two to five gigawatts (GW) of floating offshore wind capacity by 2030 and 25 GW by 2045.

Golden State Wind’s 2-gigawatt offshore wind project in the Morro Bay Wind Energy Area was one of five offshore wind developments proposed for California federal waters. In April, Golden State Wind LLC agreed to voluntarily end its lease and to forego future offshore wind development in exchange for a repayment of $120 million in lease fees. The California Energy Commission (CEC) issued an administrative investigative subpoena to Golden State Wind LLC, seeking records on its agreement with the U.S. Department of the Interior.

On June 17, 2026, the Department of the Interior announced that Invenergy will “voluntarily terminate” four offshore wind leases, including OCS-P 0565 in Morro Bay. Invenergy estimated that the lease had 1.5 GW in capacity. The CEC has also subpoenaed a copy of the settlement agreement.

Questions, comments, or tips? Contact editor@californiaenergyjournal.com.

Additional California News and Analysis

Oil and gas

• The California Coastal Commission warned Sable Offshore it could face a cease-and-desist order unless it seeks a coastal development permit for resumed oil production off Gaviota (Santa Barbara Independent, June 17, 2026).

• California senator Alex Padilla and Washington senator Patty Murray sent a letter to the Department of Energy stating that funding a west coast petroleum reserve “would violate Congressional intent” of the Fiscal Year 2026 Energy and Water Appropriations bill. (Office of Senator Alex Padilla, June 17, 2026).

Commentary and analysis

• Noah Baustin, “Here’s how a small oil company became a weapon in Trump’s assault on California,” Politico, June 22, 2026.

Offshore wind

• The Trump administration is paying developers millions of dollars to cancel offshore wind projects, accelerating its broader retreat from federal support for wind energy (New York Times, June 17, 2026).

• The Trump administration announced a $765 million agreement with Invenergy to terminate four offshore wind leases, including one off Morro Bay, further shrinking the U.S. offshore wind pipeline (Politico Pro, June 17, 2026).

Solar

• Solar generation surpassed natural gas in California’s grid during the first five months of 2026, reflecting rapid growth in solar and battery installations (Bloomberg Law, June 26, 2026).

• Kern County supervisors approved the Discovery Solar PV and Storage Project, which officials expect to generate about $44 million in property tax revenue in its first year of operation (KGET, June 16, 2026).

Vehicle emissions

• California sued the EPA over its decision to send state vehicle emissions waivers to Congress for potential reversal, arguing the move unlawfully threatens California’s clean-air authority (Reuters, June 22, 2026).

Data centers

• Gov. Gavin Newsom faces renewed pressure over data center regulation as California lawmakers consider bills addressing facilities’ energy use, water demand, and transparency requirements (Los Angeles Times, June 21, 2026).

Legislation

• SB 493 would add “war” to the list of emergencies under which it would be price-gouging for a person or business to sell specified goods and services, including gasoline, for 10% more than previously charged.

Additional News and Analysis

Oil and gas

• The IEA said the oil market is expected to recover gradually from Hormuz disruptions before shifting into a significant supply surplus in 2027 (Reuters, June 17, 2026).

Commentary and analysis

• Malcolm Moore, Nassos Stylianou, Alice Hancock, Lucy Rodgers, Irene de la Torre Arenas and Dan Clark, “The long way back from the Iran energy shock,” FT, June 16, 2026.

International

• China issued new rules to boost renewable energy consumption, shifting its clean-energy strategy from simply building capacity to ensuring more clean power is actually used (Bloomberg, June 22, 2026).

Critical minerals

• China added U.S. rare earth companies, including MP Materials and USA Rare Earth, to its export control list, escalating critical minerals tensions with Washington (Bloomberg, June 22, 2026).

EVs

• CATL plans to launch more than 30 battery-swapping stations for electric lorries in Europe by 2035 as the world’s largest battery maker bets the technology can cut fleet operators’ costs below those of diesel trucks. (FT, June 22, 2026).

Renewable energy

• Michael Bloomberg has pledged almost $300mn to help renewable energy industry associations counter the oil lobby as countries around the world face tough policy decisions in the wake of the Middle East war. (FT, June 21, 2026).

Data centers

Commentary and analysis

• Julie Steinberg and Kieran Smith in London, “Data centre investors navigate geopolitical strife as deals boom,” FT, June 16, 2026.

Questions, comments, or tips? Contact editor@californiaenergyjournal.com.

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Additional California News and Analysis

Oil

• California’s petroleum watchdog said the Iran conflict has increased g…

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From the California Energy Journal

California Petroleum Reserve under Discussion in Response to Energy Security C…

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California News and Analysis

Oil and gas

• For the first time, crude oil from the U.S. Strategic Petroleum Reserve w…

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From the California Energy Journal

DOJ Removes Sable Pipeline Dispute to Federal Court (May 20, 2026) – The U.S. …

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From the California Energy Journal

Case Against BOEM Challenging Sable Restart Thrown Out (May 15, 20260 – A fede…

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The Center for Biological Diversity and the Wishtoyo Foundation sued the Bureau of Ocean Energy…

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From the California Energy Journal

California Seeks Preliminary Injunction to Stop Sable Pipeline Restart (May 8,…

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Golden State Wind LLC agreed to voluntarily end Lease OCS-P 0564 in the Morro Bay …

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From the California Energy Journal

BOEM Issues Final Environmental Review for Platform Gilda Fracking Proposal (A…

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The EIA completes a fast-tracked federal review of the proposed treatments on up to 16 existing wells at the platform as …

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From the California Energy Journal

Trump Directs Federal Financial Support to Increase Energy Production (April 23…

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The determinations come only weeks after the Trump administration directed Sable Offshore Corp. to restart the oil pipeline system serving the …

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From the California Energy Journal

Judge Upholds Injunction against Sable Oil Pipeline Restart (April 20, 2026) –…

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