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
Coastal Commission Approves Diablo Canyon Extension Plan (December 12, 2025) – The California Coastal Commission approved a plan to extend the life of the Diablo Canyon nuclear power plant by at least five years. The Commission voted 9-3 to approve Pacific Gas and Electric’s (PG&E) request for a federal consistency certification and a state coastal development permit as part of a plan to place 4,000 acres of land into conservation. The approvals were needed to gain Federal approval for a 20-year relicensing permit. Read more.
Los Angeles Sues Oil Companies for Well Clean Up and Environmental Damage (December 11, 2025) – The County of Los Angeles is suing four oil companies for failing to plug and decommission exhausted oil wells in the Inglewood Oil Field. The lawsuit against Sentinel Peak Resources California LLC, Freeport-McMoran Oil & Gas LLC, Plains Resources, Inc., and Chevron alleges that the wells released “toxic pollutants into the air, land, and water and present unacceptable dangers to human health, safety, and the environment.” Read more.
Additional California News and Analysis
Oil and gas
Interior Secretary Doug Burgum claims California’s dependence on foreign oil is a “national security risk,” arguing that restrictive blue state energy policies are undermining U.S. energy dominance. Fox News (December 10, 2025).
California energy officials anticipate that the state’s shrinking oil refining capacity could spur more competition in the gasoline market, potentially reducing the likelihood of price spikes at the pump. Greenwire (December 12, 2025).
Kern County is set to resume issuing oil and gas permits on January 2, 2026, marking a significant development following a decade-long legal battle. Bakersfield Californian (December 11, 2025).
The owner of the only pipeline carrying crude oil from Kern to Bay Area refineries is warning it may have to close the conduit within three months, potentially boosting imports and costing local producers tens of thousands of dollars per day, unless state regulators act fast to increase in-state production. Bakersfield Californian (December 10, 2025).
A report on the risks posed by Phillips 66 and other California refineries as they shut down recommends that refineries write decommissioning plans and set aside funds to carry out cleanups before they shut down. Inside Climate News (December 9, 2025).
Liza Gross, “Green California’s Big Oil Problem,” Inside Climate News, December 12, 2025.
Climate policy
The Santa Barbara County Board of Supervisors voted 3-2 to adopt a resolution in support of the California Polluters Pay Climate Superfund Act, which calls on fossil fuel companies to foot the bill for climate damages. Santa Barbara Independent (December 11, 2025).
Carbon emissions
The California Air Resources Board (CARB) released draft rules for SB 253 and SB 261 that would require companies to start reporting their Scope 1 and Scope 2 carbon emissions in August 2026. EE News (December 11, 2025); Covington; Staff Report; Draft Rules.
Emily Pontecorvo, “California’s Latest Climate Gambit: Turn Air Conditioners Into Heat Pumps,” Heatmap, December 10, 2025
Data centers
Alejandro Lazo, “Data centers for AI could nearly triple San José’s energy use. Who foots the bill?,” Los Angeles Times (December 13, 2025).
Energy policy
Governor Gavin Newsom announced that he was reappointing Siva Gunda to the California Energy Commission, where he has served since 2021 and is currently vice chair. Governor’s Office (December 12, 2025).
Politics
California gubernatorial candidate Tom Steyer is blaming high electricity costs on the three big California utilities PG&E, Southern California Edison and San Diego Gas & Electric. Yahoo (December 15, 2025).
Additional News
Carbon emissions
The U.S. has demanded that the European Union exempt its oil and gas from obligations under the bloc’s methane emissions law on fuel imports until 2035. Reuter (December 15, 2025).
Data centers
Evan Halper and Niko Kommenda, “Supersized data centers are coming. See how they will transform America.,” Washington Post (December 15, 2025).
EVs
The European Union is widely expected to weaken its effective ban on the sale of new combustion-engine cars from 2035. CNBC (December 16, 2025).