California Energy Journal Weekly
For the week ended August 1, 2025
This weekly newsletter will highlight the latest from the California Energy Journal along with links to articles and analysis on key developments in California energy policy.
From the California Energy Journal
State Officials Brokering Refinery Sale (July 28, 2025) — In an unusual move, the California Energy Commission (CEC) is trying to find a buyer for Valero Energy’s Benicia refinery ahead of its planned closure in April 2026, Reuters reported. The state government is trying to broker the sale of privately-owned infrastructure amid concerns that refinery closures could lead to fuel shortages and price spikes in California. Read more.
Newsom Proposes Streamlining Onshore Oil Permitting while Enhancing Offshore Requirements (July 20, 2025) — California Governor Gavin Newsom released draft legislation to streamline the permitting process for drilling new oil wells in existing fields until 2036. The proposed bill includes an approval system in which an operator would have to plug and abandon two wells before drilling a new one. It also includes provisions to expedite permitting in Kern County. Lastly, it includes additional provisions aimed at Sable Offshore Corp.’s attempt to restart the Santa Ynez Unit. Read more.
Court Issues Injunction against State Fire Marshall in Sable Matter (July 23, 2025) — On July 18, 2025, Santa Barbara County Judge Donna Geck issued a preliminary injunction against the Office of the State Fire Marshal, finding that it likely violated state law in its approval of a waiver that allowed Sable to restart the pipeline. The injunction effectively extends a temporary restraining order against the Fire Marshal and Sable, aimed at blocking a waiver from the state fire marshal that allowed Sable to restart the pipeline. Read more.
Clean Energy Groups Request California Policy Changes after Federal Tax Credit Cuts (July 17, 2025) — Clean energy industry groups asked Governor Gavin Newsom and California legislative leaders to make policy changes to assist clean energy projects after the recent cuts in federal energy tax credits. The group, which includes solar and wind energy representatives, requested that the legislature and the governor “use all available tools at your disposal to maximize remaining federal incentives and improve energy affordability for all Californians.” Read more.
Additional News
Power and Utilities
Governor Gavin Newsom is proposing legislation to bolster the state's wildfire fund with an additional $18 billion for utilities, Bloomberg News reported. Reuters (July 30, 2025), Politico (August 1, 2025).
Newsom commits to reaching grid regionalization deal this session. California’s governor called the development of a West-wide market the state’s best shot at lowering energy costs. EE News (July 18, 2025).
Gasoline and Fuels
The updated Low Carbon Fuel Standard (LCFS) regulation took effect July 1, 2025. [CARB]
Climate and Energy Policy
The California Energy Commission (CEC) released its 2025 California Energy Resource and Reliability Outlook, a comprehensive, statewide assessment of electric and gas energy resource planning and reliability for the upcoming summer and midterm, spanning the next five years. [CEC]
Cap and Trade
California lost $3 billion by delaying its cap-and-trade overhaul, a report says. A delay in strengthening the California program caused the state to take in less money for climate projects, a climate advocacy group says. EE News (July 14, 2025).
Interesting Reads
“The Electricity Affordability Crisis Is Coming; It sure looks that way, at least. Democrats should start coming up with a plan.,” Robinson Meyer, Heatmap (July 23, 2025).
“Donald Trump’s war on renewables,” The Economist, July 31, 2025.