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
Legislators Agree on Energy Bills Intended to Reduce Costs (Sep 12, 2025) – California legislators agreed to a series of climate and energy legislation in last-minute negotiations with Governor Gavin Newsom. The bills aim to increase oil and gas production, extend the state’s cap-and-trade program, and reduce electricity costs through a regional energy market, establish air pollution monitoring programs in heavily polluted communication, and replenish and revise the state’s wildfire liability fund. Read more.
Additional News
Oil and Gas
Assemblyman Stan Ellis called for legislation that would loosen California oil permitting rules even beyond changes proposed in a draft bill. Ellis suggested legalizing hydraulic fracturing and doing away with a 2022 state law that established a 3,200-foot “health protection zone” between oil-field operations and sensitive sites such as homes and schools. Bakersfield Californian (September 8, 2025).
The U.S. Department of the Interior will rescind a Biden rule that placed conservation on equal footing with uses such as natural gas drilling, mining, ranching, grazing, timber production and recreation. Inside Climate News (September 10, 2025).
California Resources Corporation and Berry Corporation announced an all-stock combination in which existing CRC shareholders are expected to own approximately 94% of the combined company. CRC Press Release (September 15, 2025)
Environmental campaign group Oil Change International says the U.S. subsidizes the fossil-fuel industry at $31 billion per year. Guardian (September 9, 2025)
Wind and Solar
The U.S. solar industry installed nearly 18 GW of new capacity in the first half of 2025, as solar and storage accounted for 82% of all new power added to the grid in its first six months. Solar deployment, however, will decline by 2030 from the impact of the OBBBA. SEIA/Wood MacKenzie (September 8, 2025)
Interior Secretary Doug Burgum said five U.S. offshore wind developments are under review, and subsidies have been either cut back or limited. He thinks there won't be future offshore wind built in the United States. Bloomberg, September 10, 2025
Saudi Arabia is rapidly expanding its solar power capacity, aiming for 50% clean energy by 2030 to power new projects. WSJ (September 10, 2025).
California’s first solar-covered canal, the 1.6-MW installation called Project Nexus, was fully completed late last month. Canary Media (September 10, 2025).
Storage
A hybrid energy storage project in western Kern County said a $6 million subsidy it received in July 2024 from the U.S. Department of Energy remains in place. Bakersfield Californian (September 9, 2025).
EVs
Exxon Mobil is pushing further into the electric vehicle business with an acquisition it says will help it produce graphite by the end of the decade. New York Times (September 9, 2025).
Renewable Energy
The first U.S. onshore wave energy project was launched at Port of Los Angeles. The project could scale to supply as many as 60,000 households. Los Angeles Times (September 10, 2025)
Carbon
The EPA plans to end standards that compel power plants, industrial facilities, oil refineries and other major polluters to collect and report data on their emissions. Bloomberg (September 12, 2025).
Rhodium Group reports that U.S. progress on reducing emissions could slow by more than half under President Donald Trump Trump’s policies. Heatmap (September 10, 2025)
Data Centers and AI
The U.S. EPA proposed new measures to speed construction of infrastructure needed for the rapid buildup of data centers for artificial intelligence. The measures would enable companies to start building before obtaining air permits. Reuters (September 9, 2025)
U.S. oilfield services firm Baker Hughes is collaborating with Controlled Thermal Resources to develop one of the world's largest single geothermal power projects in California. The developers plan to market the electricity to data centers. Reuters (September 9, 2025)
Nuclear
The U.S. data center industry is calling on the Nuclear Regulatory Commission to streamline nuclear licensing in response to electricity demand from artificial intelligence and cloud computing. EE News (September 5, 2025).
The Trump administration selected a Black Hills, South Dakota uranium mining proposal for fast-track permitting program. South Dakota Searchlight (September 8, 2025)
The UK and the United States announced a partnership to build a fleet of small modular reactors (SMRs), sometimes called “mini-nukes.” Guardian (September 15, 2025).
Interesting Reads
Brian Deese and Lisa Hansmann, “The Coming Electricity Crisis: What America Must Do to Meet Surging Demand,” Foreign Affairs, September 9, 2025.
David Fickling, “China’s Marshall Plan Is Running on Batteries,” Bloomberg, September 9, 2025.
Phoebe Skok, “Solar is reshaping California’s Central Valley. What happens to the rural farming communities next door?,” PV Magazine, September 9, 2025.
“Can Clean Energy Stay Affordable as Demand Goes Up?,” PPIC, September 10, 2025.
Jordan Cunningham, “Keep Diablo Canyon open until 2045, former SLO County assemblyman urges,” San Luis Obispo Tribune, September 11, 2025.
Benoît Morenne and Josh Dawsey, “Oil Tycoons Bet Big on Trump. It’s Paying Off.,” WSJ, September 7, 2025.