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