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.
From the California Energy Journal
DOJ Removes Sable Pipeline Dispute to Federal Court (May 20, 2026) – The U.S. Department of Justice and Sable Offshore Corp. removed litigation over the restart of the Las Flores Pipeline System from California state court to federal court, according to E&E News, escalating an ongoing dispute over federal preemption and state permitting authority. The move escalates a dispute over whether federal national security authorities and interstate pipeline regulation can override state permitting and land-use requirements tied to the restart of offshore oil production. Read more.
California Launches $1 Billion Electric Truck Rebate Program Using LCFS Revenue (May 22, 2026) – California launched a new rebate program that state officials said could provide more than $1 billion through 2030 to support purchases of electric medium- and heavy-duty trucks. The rebate initiative will be funded through California’s Low Carbon Fuel Standard (LCFS) program and administered through utilities. The program, announced May 13, begins June 26, 2026. Read more.
Additional California News and Analysis
Oil and gas
Berkeley, California is requiring sellers and buyers of single-family homes to replace fossil-fuel appliances or make other green upgrades as a condition of sale. East Bay Times, May 19, 2026.
Commentary and analysis
Sarah Wagoner, “Democrats in Sacramento want to make energy even more expensive,” New York Post, May 20, 2026.
Gasoline and fuels
California Gov. Gavin Newsom urged drivers to avoid Chevron stations over Memorial Day weekend, accusing the company of charging significantly higher prices than unbranded competitors; Chevron, meanwhile, blamed California climate policies and taxes for the state’s high fuel costs. AP; KMPH, May 21, 2026.
Commentary and analysis
Michael Mische and Michael Umbro, “Chevron v Gavin: Just the Facts That all Americans Should Know About California’s Commitment to ‘Energy Affordability’,” California Globe, May 22, 2026.
Tim Stewart, “Gavin Newsom has no clue about gas and energy, and it shows,” New York Post, May 24, 2026.
Lynn La, “$6 gas intensifies clash between climate and cost of living,” Cal Matters, May 19, 2026.
Power and utilities
LS Power Grid California began construction on the Power Santa Clara Valley and Power the South Bay projects, the company’s $2 billion investment in three transmission projects in the Bay Area. PR Newswire, May 20, 2026.
Carbon and emissions
California regulators are scheduled to vote May 28 on proposed updates to the state’s “cap-and-invest” program. Los Angeles Times, May 21, 2026.
Commentary and analysis
Jeff St. John, “California cap-and-invest proposal would threaten state climate goals,” Canary Media, May 20, 2026.
Offshore wind
California officials and industry leaders reaffirmed the state’s target to deploy 25 gigawatts of floating offshore wind capacity by 2045. Review Energy, May 21, 2026.
Renewable energy
Commentary and analysis
Edward Ring, “California’s Plans for Energy and Water Can be Misleading,” California Globe, May 20, 2026.
AI and data centers
Senator Adam Schiff announced new legislation aimed at reducing the impact of energy costs from growing demand from data centers. Senator Adam Schiff, May 18, 2026.
California gubernatorial candidate Tom Steyer says he wants to ensure protections for electricity prices and water resources but does not support a temporary pause on data center development. Politico, May 19, 2026.
Storage
The California Energy Commission (CEC) approved the Potentia-Viridi Battery Energy Storage System through its Opt-In Certification program. CEC, May 26, 2026.
Politics
PG&E is backing a committee that’s attacking Tom Steyer, while propping up Xavier Becerra. The California Chamber of Commerce PAC is also spending money to support the anti-Steyer campaign after receiving millions from the three major utilities. Los Angeles Times, May 26, 2026.
Republican gubernatorial candidate Steve Hilton said California’s affordability crisis, including high housing and energy costs, is creating an opportunity for political change as he campaigns on reducing regulation and lowering living costs in the 2026 governor’s race. ABC7 News, May 19, 2026.
Legislation
The state Assembly passed AB 2046, which would exempt E85 conversion kits certified by the U.S. EPA as a clean alternative fuel conversion system from the California State Air Resources Board (CARB) approval requirement. The bill now goes to the Senate. Cal Matters, May 21, 2026.
The California Senate passed SB 868, the “Plug and Play Solar Act,” which would streamline approvals for plug-in portable solar systems of up to 1,200 watts. PV Magazine, May 20, 2026.
See also New Bills Target a Range of Energy Issues, with a Focus on Affordability.
Additional News and Analysis
Oil and gas
Commentary and analysis
Lloyd Doggett and Michael Shank, “The Iran war reminds us: we’ll never be energy-independent with fossil fuels,” Guardian (UK), May 18, 2026.
Amos Hochstein, “The oil shock is coming for America,” FT, May 20, 2026.
Power and utilities
Commentary and analysis
Nico Portuondo, Adam Aton, Kelsey Tamborrino, “How a power megamerger could lower bills — and still rile affordability politics,” E&E News, May 19, 2026.
Renewable energy
The SunZia wind farm in New Mexico will be operational as soon as June 15, providing 3.5 gigawatts of power capacity. The project is likely to be one of the last in a shrinking pool of blockbuster deals to reach fruition due to the Trump administration ending federal tax incentives and delaying permitting for renewables. Bloomberg, May 19, 2026.
Clean energy and transportation investment in the United States totaled $61 billion in the first quarter of 2026, a 3% decline from Q4 2025 and a 9% decline from Q1 2025. Clean Investment Monitor, May 20, 2026.
American investment in low-carbon energy and transportation has fallen for a second consecutive quarter, ending an unbroken growth trend stretching back to 2019. In the first three months of 2026, total investment in those green sectors reached $61 billion, according to a Rhodium Group analysis published this morning.
Solar will become the dominant source of power early next decade, according to new analysis from BloombergNEF. Rapid electrification is set to accelerate the transition to clean energy, driven by surging demand from data centers, population growth, rising incomes and more battery-powered vehicles. Bloomberg, May 19, 2026.