California Energy Journal Weekly
For the two weeks from December 23, 2025 to January 5, 2026
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.
The two weeks ended January 5, 2026:
Biggest story: Federal regulators gave Sable an “emergency” waiver to restart a pipeline that is critical to offshore production; environmental groups failed to stop the waiver. Public opposition to Sable’s offshore drilling continues to build.
What to watch in the coming week: The California legislature began a new legislative session with energy affordability as a growing policy concern.
From the California Energy Journal
Feds Grant Sable “Emergency” Waiver for Pipeline Restart, Environmental Groups Sue (December 30, 2025) – The Trump administration approved Sable Offshore Corp.’s request for an “emergency” waiver from federal safety regulations over the restart of the Las Flores Pipeline System. Environmental groups then sued the administration over the approval, contending that the administration bypassed federal requirements in its approval of the pipeline restart plan and its “Emergency Special Permit.” Read more.
Court Rejects Emergency Appeal to Stop Pipeline Restart (January 2, 2026) – The Ninth Circuit Court of Appeals rejected an attempt to stay the approval of Sable Offshore Corp.’s pipeline restart plan. The lawsuit will proceed on an expedited basis with opening briefs due January 26, 2025. Read more.
Additional California News and Analysis
Data centers and AI
A new law orders regulators to study the cost impacts of AI data centers. CalMatters, December 29, 2025.
The California Energy Commission published data showing that Pacific Gas & Electric’s pipeline of data center energy capacity requests increased from about 12,000 megawatts in September to about 15,000 MW in December. Politico, January 5, 2026.
Oil and gas
Assembly Member Dawn Addis introduced placeholder legislation on January 5, 2026 signaling the intent to introduce legislation to “establish or uphold existing local and state protections for communities impacted by the transportation and procurement of offshore oil.”
Santa Barbara County Board of Supervisors held a special meeting on January 5, 2026 in response to environmental groups losing effort to block Sable from restarting its Santa Ynez oil pipelines. Santa Barbara News Press, January 4, 2026; Edhat, January 5, 2026.
Consumer Watchdog and two private law firms sued gasoline producers, arguing that drivers overpaid for gasoline after fuel suppliers preemptively raised prices before updates to the state’s low-carbon fuel standard kicked in on July 1. Politico, January 5, 2026.
The California Public Utilities Commission published a draft resolution that would raise the rate on the San Pablo Bay pipeline from $2.36 per barrel to $3.75 per barrel. The interim rate increase would be effective dating back to August 1, 2025. Politico, January 2, 2026.
Commentary and analysis
Ashley McClure, “Protecting California’s public lands from oil and gas drilling is defending public health,” CalMatters, December 23, 2025.
Victoria Riskin, “California Should Determine if Pipeline Is Safe to Operate,” Santa Barbara Independent, December 30, 2025.
Alexander Clark, “California oil crisis could hit $12 gas in 2026 and risk US security,” MSN, January 4, 2026.
Nick Busse, “Energy Security Is National Security: Why California Can’t Afford Its Production Decline,” California Globe, January 5, 2026.
Jack Dolan, “Ties between California and Venezuela go back more than a century with Chevron,” Los Angeles Times, January 5, 2026.
Power and utilities
Pacific Gas & Electric Co. bills will drop by about $8 monthly starting January 1 for typical residential customers with both electric and gas service, according to an end-of-the-year rate adjustment the company filed with state regulators. San Francisco Chronicle, December 30, 2025.
San Francisco city leaders continue efforts to acquire PG&E’s electric infrastructure, aiming to create a publicly owned utility to address reliability and rate concerns. San Francisco Chronicle, January 6, 2026.
The Trump administration sued two California cities, seeking to block local laws that restrict natural gas infrastructure and appliances in new construction. Reuters, January 5, 2026.
Commentary and analysis
VIDEO: “Former Energy Commissioner: Here’s Why California Electricity Is So Expensive,” California Insider, January 3, 2026.
“Ivanpah Solar Plant Remains Open, Despite Costing Ratepayers Money,” Institute for Energy Research, January 2, 2026.
Keaton Peters, “California’s PG&E cuts 2026 electric rates 5%. Not all customers will benefit,” SAN, January 2, 2026.
Wind and solar
Commentary and analysis
Supervisor Rosario Rodriguez, “Guest Column: Why I voted to approve this major solar project,” Citrus Heights Sentinel, December 27, 2025.
Energy policy
Commentary and analysis
Steve Goreham, “Affordability Crisis: Gavin Newsom’s California Energy Disaster,” NewsBlaze, January 5, 2026.
Additional News
Data centers and AI
Electricity demand from AI data centers is reviving peaker power plants, which emit more pollution when they run than typical power plants. Reuters, December 23, 2025.
Renewable energy
Commentary and analysis
Jennifer McDermott, “Trump’s return brought stiff headwinds for clean energy. So why are advocates optimistic in 2026?,” Los Angeles Times, December 23, 2025.
Climate policy
A blistering rollback of climate policies led by the US in 2025 with knock-on effects in Europe and other western economies has heightened concerns about rising greenhouse gases, even as a clean energy boom takes hold. Financial Times, December 29, 2025.
The EU’s carbon border tax came into force despite fierce opposition from trading partners and warnings from European industry that it will increase costs and red tape. Financial Times, December 30, 2025.
International
Commentary and analysis
Gerard Reid, “Energy, Power and the Return of Geopolitics,” Gerard Reid, January 1, 2026.
Javier Blas, “Trump Now Has His Very Own Oil Empire, Bloomberg, January 4, 2026.