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California News and Analysis

Oil and gas

• Chevron’s former Carpinteria oil and gas facility entered the next phase of decommissioning, including removal of underground pipelines and future soil testing. (Santa Barbara Independent, June 29, 2026).

• The Bureau of Land Management reopened the public review process for a revised oil and gas leasing plan covering hundreds of thousands of acres of federal mineral estate in California after completing additional environmental analysis required by the courts. The action advances the administration’s broader effort to expand domestic energy production despite California’s opposition to additional oil development. (OilPrice, July 2, 2026)

Commentary and analysis

• Paasha Mahdavi and Eleanor Thomas, “A Vote on Oil Phaseout That Could Make History,” Santa Barbara Independent, July 6, 2026.

• “Trump Administration Scoffs at Federal and California Law and Public Process to Hand Public Lands to Big Oil,” Los Padres Forest Watch, Edhat, July 5, 2026.

Offshore oil

• Sable Offshore suggested the Department of Energy should consider using eminent domain authority to assemble storage infrastructure if necessary. The proposal underscores the administration’s continued evaluation of a California petroleum reserve as part of its energy security strategy. (Politico Pro, July 6, 2026).

Gasoline and fuels

• California legislation aimed at curbing gas price gouging during wartime is facing opposition from business groups that argue the proposal is too broad. (Sacramento Bee, June 30, 2026).

• California’s gas tax increased by 2.2 cents on July 1, bringing the state excise tax to 63.4 cents per gallon. (NBC San Diego, June 29, 2026).

• A lawsuit accusing gas retailers and pricing-software company Kalibrate of using AI to coordinate pump prices will test California’s updated antitrust law. (Los Angeles Times, July 1, 2026).

• Sen. Adam Schiff unveiled a plan to hold oil companies accountable for alleged price gouging as California drivers continue to face high fuel prices. (Spectrum News, July 2, 2026).

Commentary and analysis

• Dan Blaustein-Rejto and Lauren Teixeira, “California’s Hidden Gas Tax Is Due for Reform,” The Ecomodernist, June 29, 2026.

• Alejandro Lazo, “Rules to Rein In CA Gas Prices Still on The Shelf,” San Jose Inside, July 3, 2026.

Air quality

• The Ninth Circuit upheld South Coast Air Quality Management District regulations that phase out the sale of large gas-fired water heaters and boilers, ruling that the standards are not preempted by federal energy efficiency law. The decision preserves one of California’s most significant local building electrification policies and may influence similar regulations elsewhere. (E&E News, July 6, 2026).

Data centers

• California Resources Corp. is positioning itself beyond oil production by pursuing carbon storage and potential data center development opportunities. (Politico, June 26, 2026).

Commentary and analysis

• Anthony Velasquez, “California’s Bad Energy Policy Is the Real Threat to the AI Boom,” Pacific Research Institute, June 30, 2026.

Batteries and storage

• California community choice aggregators are expanding their role in energy storage through new battery projects designed to support grid reliability and clean power integration. (PV Magazine, June 29, 2026).

Climate policy

• Rising utility costs are prompting some states, including California and New York, to soften or delay ambitious climate policies amid affordability concerns. (Governing, June 29, 2026).

Commentary and analysis

• Aerin Monroe, “Climate Policy In California – Will A New Governor Bring Change?,” Northcoast Environmental Center, July 1, 2026.

Legislation

• AB 2313 continues to make progress in the Senate. The bill would require gas utilities to offer an alternative to a gas distribution service line and a monetary incentive to deploy gas distribution service line replacement alternatives and cease gas.

• AB 40 also continues to advance in the Senate. The bill would create new economic reporting requirements for the Oakland coal export projects.

Additional News and Analysis

Oil and gas

• Canada and Alberta announced plans to build a new one-million-barrel-per-day pipeline from Alberta to the Pacific coast to expand crude exports to Asia and reduce dependence on U.S. markets. The project is expected to follow much of the existing Trans Mountain corridor and forms part of Canada’s broader strategy to diversify energy exports and accelerate major infrastructure development. (Reuters, July 3, 2026).

Federal energy policy

• The Nuclear Regulatory Commission proposed changing radiation-protection rules as part of a broader federal effort to streamline nuclear power development. (Reuters, July 1, 2026).

• The Trump administration ended rebates for switching from gas to electric appliances, limiting federal incentives to upgrades from existing electric equipment. (The Hill, June 2026).

Executive power & regulation

• The Supreme Court expanded presidential authority over independent agencies, a ruling that could affect energy regulators such as FERC and the Nuclear Regulatory Commission. (E&E News, SCOTUSblog, June 29, 2026).

Climate policy

• The United States accounted for about one-third of the global increase in carbon dioxide emissions in 2025 as higher natural gas prices pushed power producers back toward coal. (Reuters, June 29, 2026).

• The World Bank plans to abandon its goal of devoting 45% of lending to climate-related projects, reflecting pressure to shift away from input-based climate finance targets. (Reuters, June 29, 2026).

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

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.

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

Additional California News and Analysis

Oil and gas

• The California Coastal Commission warned Sable Offshore it cou…

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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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From the California Energy Journal

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

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From the California Energy Journal

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

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From the California Energy Journal

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

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From the California Energy Journal

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

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From the California Energy Journal

California Challenges Federal Offshore Fracking Review (April 10, 2026) – Cali…

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From the California Energy Journal

Federal Court Allows California Oil Setback Law to Remain in Effect (April 2, …

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From the California Energy Journal

BOEM Moves to Fast-Track Environmental Review for Offshore Fracking at Platfor…

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From the California Energy Journal

California Brings Multiple Legal Challenges to Block Sable Pipeline Restart (M…

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From the California Energy Journal

CPUC Orders 6,000 MW of New Clean Energy and Storage Procurement Through 2032 …

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From the California Energy Journal

DOJ Says Defense Production Act Order Could Override State Barriers to Oil Pro…

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From the California Energy Journal

CEC Report Warns California’s Reliance on Imported Energy Creates Supply Risks…

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From the California Energy Journal

New Bills Target a Range of Energy Issues, with a Focus on Affordability (Febr…

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