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.
The week ended January 12, 2026:
Biggest story: Public opposition to Sable’s offshore drilling plans and the Trump administration’s offshore drilling policy continue to build.
What to watch in the coming week: Concerns over the impacts of the closure of the Benicia refinery could become an increasing political risk for Gavin Newsom.
From the California Energy Journal
Trump Administration Sues Petaluma and Morgan Hill Over Natural Gas Bans (January 9, 2026) – The U.S. Department of Justice filed lawsuits against the Bay Area cities of Petaluma and Morgan Hill over ordinances that banned natural gas infrastructure and appliances in new buildings. The lawsuits, filed in the U.S. District Court for the Northern District of California, argue that the Energy Policy and Conservation Act (EPCA) gives the federal government exclusive authority over energy use standards for appliances. Read more.
Additional California News and Analysis
Oil and gas
Governor Gavin Newsom said Valero Energy would keep importing gasoline into Northern California after its Benicia refinery ceases operations in April rather than making a full exit from the market. Reuters, Office of the Governor, January 6, 2026.
Commentary and analysis
Hector Barajas, California’s Higher Gas Prices Are a Policy Choice, Not an Accident, California Globe, January 7, 2026.
Offshore oil
Members of the California State Legislature and environmental advocates blasted the Trump administration over proposed offshore drilling expansion plans off the California coast, urging residents to oppose the proposal before the January 23 deadline for public comments to the Bureau of Ocean Energy Management. Sacramento Bee, January 6, 2026.
None of California’s nine GOP lawmakers have spoken against new drilling, even as their Florida colleagues push back aggressively. E&E News, January 7, 2026.
A Santa Barbara County judge declined to lift a July 2025 injunction against Sable Offshore Corp. that blocked the company from restarting the Las Flores Pipeline System. The company also confirmed that the pipelines had not been restarted. The next hearing is February 27. Santa Barbara Independent, January 7, 2026.
The Santa Barbara Board of Supervisors held a closed-door special hearing to discuss possible legal actions to stop or slow down Sable Offshore from restarting production at the Santa Ynez Unit. The supervisors reportedly deadlocked 2-2 on any action. Santa Barbara Independent, January 6, 2026.
Commentary and analysis
Julie Packard, Leon Panetta, Trump’s plan to open California’s coastline to oil drilling threatens more than ocean life, San Francisco Chronicle, MSN January 5, 2026.
“Analysis: Trump Offshore Drilling Plan Could Generate 4,000+ Oil Spills,” Center for Biological Diversity, January 6, 2026.
Robert Sulnick, “Why Santa Barbara and California Must Fight Federal Restart of Oil Pipeline,” Noozhawk, January 12, 2026.
EVs
Governor Gavin Newsom is proposing $200 million in new state electric-vehicle tax rebates after Congress earlier this year ended a federal $7,500 state tax deduction on new EVs. Reuters, Office of the Governor, January 9, 2026.
Renewable energy
Senator Scott Wiener (D-San Francisco) introduced SB 222, the Heat Pump Access Act, which streamlines permitting for heat pump HVAC and water heater systems, and SB 868, the Plug And Play Solar Act, which streamlines approvals for plug-in solar systems. Office of Scott Wiener, January 6, 2026.
Commentary and analysis
Hayley Smith, “Why California is keeping this unusual solar plant running when both Trump and Biden wanted it closed,” Los Angeles Times, January 11, 2026.
Additional News and Analysis
Renewable energy
A federal judge ruled that the Trump administration’s decision to cut $7.6 billion in energy grants to recipients mostly in states where the majority did not vote for President Trump in the 2024 election was illegal. He ordered the Department of Energy to restore nearly $28 million in environmental project grants. ABC News, E&E News, January 12, 2026.
A federal judge in Washington, DC, ruled that Danish wind farm developer Orsted can proceed with the construction of its major project off the coast of Rhode Island, which was 90% complete before the Interior Department ordered a pause on several offshore wind projects last month. Yahoo, January 12, 2026.
Commentary and analysis
Joel Kotkin, “The end of green energy Fossil fuels are still king,” Unheard, January 13, 2026.
Data centers
Trump said that data centers must “pay their own way” for the additional electricity costs of data centers. Truth Social, January 12, 2026.