California Energy Journal Weekly
For the week of September 30, 2025 to October 6, 2025
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.
From the California Energy Journal
Sable Requests to Use Offshore Storage Vessel and Tankers to Ship Oil (September 30, 2025) – Sable Offshore Corp. has requested federal approval to use an offshore storage and treating (OS&T) vessel and shuttle tankers to ship crude oil produced on federal leases from the Santa Ynez Unit, which consists of three offshore platforms and the onshore Las Flores Canyon facility. Read more.
Trump Administration Cancels $1.2 Billion for California Hydrogen Hub (October 3, 2025) – The U.S. Department of Energy (DOE) cancelled $1.2 billion in federal funding for California’s hydrogen hub, known as the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES). The move is part of the Trump administration’s cancellation of $7.6 billion in grants for 223 clean energy projects in 16 states. Read more.
Status of energy bills: See below for an update on the status of energy-related legislation before Governor Gavin Newsom. The California Energy Journal will provide more in-depth analysis of key legislation over the coming months.
Additional News
Climate Policy
The Maryland Supreme Court heard arguments Monday on an issue facing judges nationwide: Whether or not local communities can sue oil companies over their role in climate change. New York Times (October 6, 2025).
Wind and Solar
The world’s wind and solar farms have generated more electricity than coal plants for the first time this year, marking a turning point for the global power system, according to a report by the climate thinktank Ember. Guardian (October 6, 2025).
Trump administration officials are using trade measures and permit delays in a campaign to undercut the solar industry. Washington Post (October 6, 2025).
The Trump administration’s decision to halt fully permitted offshore wind energy projects is “very damaging” to investment, President of Shell U.S. Colette Hirstius told the Financial Times. Reuters (October 5, 2025).
Renewable Energy
Several groups and nonprofit organizations filed a lawsuit against the EPA over the canceling of a $7 billion Solar for All program intended to make solar power accessible to more than 900,000 lower-income Americans. AP (October 6, 2025).
Carbon Emissions
The EU and Britain are poised to agree on a deal sparing UK businesses from the EU’s carbon border adjustment mechanism (CBAM), which takes effect January 1, 2026. Guardian (October 2, 2025).
Critical Minerals
Turkey is discussing developing rare-earth reserves in western Anatolia with the U.S. in a shift toward the U.S. after similar talks with China and Russia slowed. Bloomberg (October 6, 2025).
The U.S. government is expected to acquire a 5% stake in Lithium Americas and its Nevada mining project to support the mine’s viability. WSJ (October 1, 2025).
China and Malaysia are in early talks for a project to process rare earths, with sovereign wealth fund Khazanah Nasional likely to partner with a Chinese state-owned firm to build a refinery in the Southeast Asian nation. Reuters (October 2, 2025).
EVs
Automotive executives are expecting a freefall in U.S. electric-vehicle sales following the disappearance of a critical $7,500 tax break for buyers. Reuters (October 1, 2025).
Data Centers and AI
PG&E Corp said it plans to spend $73 billion by 2030 for transmission upgrades to meet the data center-led surge in electricity demand. Reuters (September 29, 2025).
Nuclear
Soaring demand for electricity will drive a $350 billion nuclear spending boom in the US, boosting output from reactors by 63% by 2050, according to Bloomberg Intelligence. Bloomberg (September 29, 2025).
The Trump administration is considering a proposal to divert plutonium that plays a central role in the U.S. nuclear weapons stockpile to fuel a new generation of power plants. Politico (September 29, 2025).
Oil and Gas
A large fire at the El Segundo Chevron refinery in Los Angeles County on October 2, 2025 has raised concerns about higher gas prices across California. CBS (October 3, 2025).
A large fire at Chevron’s 285,000-barrel-per-day El Segundo refinery in southern California on October 2, 2025 took multiple units offline, disrupting supply. Reuters CBS (October 3, 2025).
The explosion and fire at Chevron’s El Segundo refinery was preceded by a long history of environmental violations. Over the last five years, the refinery received notices that it was in violation of environmental safety rules 46 times — 13 came in the last year. Los Angeles Times (October 4, 2025).
U.S. oil refiner Phillips 66 expects to book about $100 million of charges to idle its 139,000-barrel-per-day Los Angeles-area refinery, which will cease operations by year-end. Reuters (October 1, 2025).
Chevron plans to donate more than 2,700 acres of coastal dunes to the U.S. Fish and Wildlife Service, a move that would double the size of the Guadalupe-Nipomo Dunes National Wildlife Refuge. Noozhawk (October 5, 2025).
Coal
Department of Energy announced $625 million to expand and reinvigorate coal plants. DOE (September 29, 2025)
Interesting Reads
Mario Loyola, “Why Your Electric Bill Keeps Rising,” WSJ, September 29, 2025.
Edward Ring, “Newsom’s Concessions to Oil Industry Will Not Save It,” California Globe, October 1, 2025.
Nick Welsh, “The Battle Between Off-Shore Oil and Santa Barbara Continues,” Independent, October 2, 2025.
Gavin Maguire, “California’s solar and battery combo packs a transformational punch,” Reuters, October 3, 2025.
Status of Energy Bills
Governor Newsom signed the following bills into law:
AB 30 – State Air Resources Board: gasoline specifications: ethanol blends.
AB 368 – Energy: building standards: passive house standards.
AB 420 – Public utilities: property, franchises, and permits: exemption.
AB 737 – Energy: building decarbonization: notice and recordation of a decarbonization charge.
AB 1017 – Energy: electrical and gas corporations: general rate cases.
AB 1532 – Public Utilities Commission.
SB 86 – California Alternative Energy and Advanced Transportation Financing Authority Act: sales and use tax exclusion.
SB 283 – Energy storage systems.
SB 302 – Personal Income Tax Law and Corporation Tax Law: exclusions: environmental credits.
SB 484 – Coastal resources: coastal development permits: infill area categorical exclusion.
SB 567 – Gravity-Based Energy Storage Well Pilot Program.
SB 593 – Electrical corporations: significant voltage-related incidents: studies.
SB 710 – Property taxation: active solar energy systems.
SB 839 – Oil spills: fishing: water closure: grants: liability.
Governor Newsom vetoed the following bills:
AB 44 – Energy: electrical demand forecasts. A veto message can be found here.
AB 399 – Coastal resources: coastal development permits: blue carbon demonstration projects. A veto message can be found here.
AB 527 – California Environmental Quality Act: geothermal exploratory projects: geothermal field development projects: enhanced geothermal system wells. A veto message can be found here.
AB 615 – Power facilities: emergency response and action plans. A veto message can be found here.
AB 734 – Environmental protection: biological resources data: State Energy Resources Conservation and Development Commission: powerplants: power lines: applications. A veto message can be found here.
AB 738 – Energy: building standards: photovoltaic requirements. A veto message can be found here.
AB 740 – Virtual power plants: load shifting: integrated energy policy report. A veto message can be found here.
AB 1026 – Public utilities: electrical corporations: energization. A veto message can be found here.
AB 1273 – Public utilities: rate setting proceedings: local publicly owned electric utilities: California Renewables Portfolio Standard Program. A veto message can be found here.
AB 1408 – Electricity: interconnections. A veto message can be found here.
SB 88 – Air resources: carbon emissions: biomass. A veto message can be found here.
SB 292 – Electricity: wildfire mitigation: deenergization events and reliability. A veto message can be found here.
SB 541 – Electricity: load shifting. A veto message can be found here.
SB 613 – Methane emissions: petroleum and natural gas producing low methane emissions. A veto message can be found here.
SB 647 – Energy: Equitable Building Decarbonization Program: Low-Income Oversight Board: membership. A veto message can be found here.