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
Federal Judge Signals Skepticism of Sable Challenge to Santa Barbara Permit Transfer Denial (July 14, 2026) – Sable Offshore Corp. and ExxonMobil suffered a setback in their effort to overturn Santa Barbara County’s decision to deny the transfer of operating permits for offshore facilities from ExxonMobil to Sable Offshore Corp. Read more.
California News and Analysis
Gasoline and fuels
Commentary and analysis
Daniel Simmons, “The Pacific Premium: Why Gasoline Costs More In Democratic-Controlled States, IER, July 15, 2026.
EVs
California launches first-time EV rebate program. California’s MyFirstEV incentive program is offering eligible first-time buyers an instant $3,500 rebate on qualifying new electric vehicles and $1,750 on qualifying used EVs. The point-of-sale program is intended to help sustain EV adoption following the expiration of the federal EV tax credit. (The Hill, July 14, 2026).
Poll finds falling Democratic support for California’s 2035 ZEV requirement. Support for California’s requirement that all new passenger vehicle sales be zero-emission by 2035 has fallen sharply, according to a new Public Policy Institute of California poll cited by E&E News. The survey found that roughly two-thirds of Californians now oppose the mandate, highlighting growing concerns over vehicle affordability, electricity costs, and consumer choice as legal challenges to the policy continue. (E&E News, July 27, 2026).
Power and utilities
The CPUC rejected a utility propose to revise extreme-heat disconnection protections and ordered broader protections against power shutoffs during dangerous heat. The CPUC draft resolution modifies the utility proposal by replacing the existing 100°F threshold with a region-specific CalHeatScore system with a 90°F threshold as the fallback whenever CalHeatScore data is unavailable. (Cal Matters, July 17, 2026) (CPUC, July 16, 2026).
CAISO updates transmission constraints for next resource plan. CAISO released updated 2026 transmission capability estimates, replacing its 2024 estimates for use in the CPUC’s integrated resource-planning process. The package identifies where new renewable generation and storage can be accommodated, which areas face deliverability constraints, and the conceptual upgrades, costs, and construction timelines that could unlock additional capacity. (CAISO White Paper, July 15, 2026).
Wind energy
California to sue over Invenergy deal. California Attorney General Rob Bonta notified the Department of the Interior and energy company Invenergy that the state intends to sue for violations of the Outer Continental Shelf Lands Act related to the agreement to abandon the company’s offshore wind project. (California Department of Justice, California Energy Commission, July 16, 2026).
California to join wind energy lawsuit. California Attorney General Rob Bonta joined a coalition of 19 attorneys general in moving to intervene in Renewable Northwest et al. v. Hegseth et al., a lawsuit brought by several wind industry associations and businesses against the U.S. Department of Defense (DoD) and Secretary Pete Hegseth for unlawfully freezing routine reviews of land-based wind energy projects across the country. (California Department of Justice, July 16, 2026).
Democratic senators investigating offshore wind deals. U.S. Senator Alex Padilla of California is part of a group of 14 senators investigating the Trump Administration’s deals to end offshore wind energy projects off the west coast and east coast of the United States. (Office of Alex Padilla, July 17, 2026).
Data centers
CAISO to expedite new rules for connecting data centers. CAISO reported to the Federal Energy Regulatory Commission that it will expedite new rules for connecting and serving data centers and other large electric loads. CAISO plans to issue a straw proposal on August 12, a draft final proposal on September 21, and seek board approval on October 28, 2026. (CAISO, July 20, 2026).
Legislation
Legislation extends RPS exception for hydroelectricity. Governor Gavin Newsom signed into law AB 34, which extends the period under which a local publicly owned electric utility is not required to procure a certain amount of eligible renewable energy resources if it receives more than 40% of its retail sales from large hydroelectric generation. The extension allows large hydroelectric energy resources to count towards renewable portfolio standard (RPS) compliance beyond 2030.
Additional News and Analysis
Federal clean energy policy
Report links Trump clean energy policies to $83 billion in delayed projects. Policy changes under the Trump administration have contributed to approximately $83 billion in delayed or canceled clean energy and manufacturing projects, according to a report highlighted by Reuters. The affected projects include battery manufacturing, electric vehicles, solar energy, and other clean energy investments that developers say have been disrupted by changing federal incentives and regulatory policies. (Reuters, July 14, 2026).
U.S. struggles to deliver electricity expansion. Despite billions of dollars in federal initiatives intended to boost domestic energy production, a significant increase in electricity supply has yet to materialize, according to The Washington Post. Delays in permitting, transmission development, and new generation construction continue to challenge efforts to meet rapidly rising demand from artificial intelligence, manufacturing, and electrification. (Washington Post, July 17, 2026).
Solar
Lawmakers seek tougher enforcement against solar import duty evasion. Members of Congress are urging the Trump administration to strengthen enforcement against solar imports that they contend are being routed through third countries to avoid U.S. antidumping and countervailing duties. (Reuters, July 16, 2026).
Offshore wind
States threaten legal challenge over offshore wind lease proposal. Several states are preparing legal action against the Trump administration over a proposal that would allow offshore wind developers to relinquish federal leases in exchange for compensation. (E&E News, July 16, 2026).
Data centers
PJM grid to finalize data center interconnection rules. PJM Interconnection is preparing to finalize new rules governing how large data centers connect to the regional electric grid and how the costs of serving rapidly growing AI-related electricity demand will be allocated. (WYPR, July 13, 2026).
PJM grid falls short of future power supply needs. PJM Interconnection failed to procure enough future generating capacity to satisfy rapidly growing electricity demand driven by artificial intelligence and data centers, according to Bloomberg. (Bloomberg, July 14, 2026).
Energy companies raising money to meet AI data center demand. Energy companies are raising money at IPO at their fastest pace this century, taking advantage of investors’ hunt for new ways to bet on the boom in power-intensive AI data centres. (FT, July 15, 2026).