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
Santa Barbara County Denies Sable Permit Transfers (December 17, 2025) – The Santa Barbara County Board of Supervisors voted to deny the transfer of operating permits for offshore facilities from ExxonMobil to Sable Offshore Corp. The Supervisors voted 3-1 on December 15, following a preliminary decision in November. The permits covered the Santa Ynez Unit, a gas plant, and the Las Flores Pipelines. The transfer of permits was a key step in restarting the Santa Ynez Unit, which has been shut since the 2015 Refugio oil spill. Read more.
Federal Regulators to Oversee Pipeline Critical to Sable’s Restart of Offshore Oil Production (December 19, 2025) – The federal government is taking regulatory authority over Sable Offshore Corp.’s Las Flores Pipeline System, which connects the Santa Ynez Unit to the Pentland Station terminal in Kern County. The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) confirmed the company’s determination earlier in the month that the Las Flores Pipeline was an interstate pipeline under the Pipeline Safety Act rather than an intrastate public under state regulation. Read more.
Federal Regulator Approves Sable Pipeline Restart Plans (December 23, 2025) – The federal regulator approved Sable Offshore Corp.’s Las Flores Pipeline System, a critical step in restarting oil production in the Santa Ynez Unit. The pipeline system connects the Santa Ynez Unit to the Pentland Station terminal in Kern County. Read more.
Additional California News and Analysis
Power and utilities
California regulators softened their proposed cuts to the profits that investor-owned utilities are allowed to pass on to their shareholders in 2026. The California Public Utilities Commission published a revised proposed decision in its proceeding to set the allowed cost of capital for Pacific Gas & Electric, Southern California Edison, San Diego Gas & Electric and Southern California Gas. E&E News; CPUC; CalMatters (December 18, 2025).
Southern California electricity customers are now on the hook to pay the 10-figure utility cost of a deadly 2018 Ventura County wildfire that burned across nearly 100,000 acres. Politico (December 19, 2025).
Commentary
Harry Mok, “California is about to make a crucial decision on energy costs. Do officials have the courage to fight PG&E?,” SF Chronicle, December 18, 2025.
Julia Levin, “California must extend BioMAT to fight wildfires and protect jobs,” Sacramento Bee, December 16, 2025.
Shaye Wolf, “Biomass is a money pit that won’t solve California’s energy or wildfire problems,” CalMatters, December 16, 2025.
Craig Segall, “California Must Go Big to Save Big,” Legal Planet, December 17, 2025.
Tom Philp, “Can Steyer drop California electricity rates 25%? Don’t hold your breath,” Sacramento Bee, December 22, 2025.
Mitchell G. Bahnsen, “The Public Purpose Program: California’s Hidden Tax Driving Up Utility Bills,” California Policy Center, December 18, 2025.
Oil and gas
California energy supply concerns that arose partly because of local oil-field permitting delays are reviving interest in importing refined fuels from other states. At least three new pipeline networks have been proposed recently that would bring the West gasoline and other refined products from as far away as Missouri and the Gulf Coast. At least one would supply California directly, while two others would pipe more fuel to neighboring states, potentially easing pressure on the Golden State. Bakersfield Californian, December 16, 2025.
Phillips 66 and Kinder Morgan, Inc. announced that Western Gateway received significant interest, including shipper commitments, and has closed the initial open season for transportation service on the Western Gateway Pipeline. Phillips66 (December 22, 2025). (see Phillips66 and Kinder Morgan Propose New Pipeline into California)
Commentary and analysis
Dennis Wyatt, “Can California avoid skyrocketing gas prices with 12% loss of refining capacity in 5 months?,” Manteca-Ripon Bulletin, December 19, 2025.
“California’s Gasoline Market May No Longer Need to Be an ‘Energy Island,’” Institute for Energy Research, December 22, 2025
Alex Nieves, “How Trump broke California’s grip on the auto market, Politico, December 22, 2025.
Increasing Kern County oil drilling as planned under a new state law won’t be enough by itself to avert California gasoline price spikes, according to a new report out of UC Berkeley and USC that recommends revisiting onerous regulations and boosting production in Southern California and offshore. Bakersfield Californian (December 19, 2025).
Renewable energy
Renewable energy accounted for more than half of California’s electricity mix for the first time in 2024 as the state’s reliance on fossil fuels reached a record low, according to the latest California Green Innovation Index released December 16. SPC Global (December 16, 2025).
Regulators approved a $115 million, first-of-its-kind effort to drive demand for plug-in heat pumps and induction stoves that can make home electrification easier and cheaper. Canary Media (December 17, 2025).
Commentary and analysis
Dani Anguiano, “‘The biggest transformation in a century’: how California remade itself as a clean energy powerhouse,” The Guardian, December 20, 2025.
Additional News
Carbon emissions
The European Union is set to propose softening emissions rules for new cars, scrapping an effective ban on combustion engines following months of pressure from the automotive industry. The proposal will allow carmakers to slowdown the rollout of electric vehicles in Europe and will lower the requirements that would have halted sales of new gasoline and diesel-fueled cars starting in 2035. Bloomberg (December 16, 2025).
Data centers
Three Democratic senators said they are investigating whether and how the operations of technology companies are driving up residential electricity bills. The senators — Elizabeth Warren of Massachusetts, Chris Van Hollen of Maryland and Richard Blumenthal of Connecticut — said they were concerned that customers other than the tech companies would be stuck footing the bill, especially if the A.I. boom ended. New York Times (December 16, 2025).
EVs
Sixteen states and the District of Columbia are suing the Trump administration for what they say is the unlawful withholding of over $2 billion in funding for two electric vehicle charging programs. AP (December 16, 2025).
Critical minerals
President Donald Trump plans to forge more mineral deals with private companies and allies around the world and wants Congress to shield projects from lawsuits. E&E News (December 16, 2025).
Wind and solar
The Trump administration has suspended the authority of five major offshore wind farms to keep building in federal waters, yet another escalation of the administration’s attacks on the wind energy industry. Interior Secretary Doug Burgum said that five leases, all on the East Coast, were being paused due to “national security concerns.” The Hill (December 22, 2025).