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.
California News and Analysis
Oil and gas
For the first time, crude oil from the U.S. Strategic Petroleum Reserve was shipped to California, reflecting major shifts in global oil trade flows as disruptions in Middle East supplies force California to seek alternative crude sources for its refineries. Reuters, May 27, 2026.
A federal judge denied an attempt by the California Department of Parks and Recreation’s to stop Sable Offshore Corp. from moving oil through an underground pipeline, ruling that it does not cause imminent harm to the environment. Reuters, May 28, 2026.
Three Trump administration Cabinet secretaries plan to visit the Sable Offshore Corp. oil project off the Gaviota coast later this week. E&E News, June 1, 2026.
Sen. Adam Schiff and Rep. Salud Carbajal sent a letter to Sable CEO Jim Flores requesting that the company disclose all of its communications with the DOE where it requested the federal agency invoke the Defense Production Act. E&E News, May 28, 2026.
Gasoline and fuels
Commentary and analysis
Rosilicie Ochoa Bogh, “Why is gas so expensive in California? Follow the policies,” Orange County Register, May 31, 2026.
EVs
The California Energy Commission (CEC) announced $55.2 million in new funding to accelerate the installation of publicly available fast chargers across the state. The funding will be available through the California Electric Vehicle Infrastructure Project (CALeVIP). CEC, May 28, 2026.
Carbon and emissions
The California Air Resources Board (CARB) approved amendments to the state’s cap-and-invest program, adopting changes intended to align the program with California’s 2045 climate targets while addressing concerns about energy affordability, refinery closures, and industrial competitiveness. CEC; AP, May 29, 2026.
AI and data centers
The California State Senate passed two data center bills that aim to address increasing electricity rates. SB 886 would establish a tariff on data centers to protect ratepayers from the increased costs of supplying data centers; and SB 887 would clarify that data centers are eligible for streamlined environmental review under the California Environmental Quality Act (CEQA) but are not exempt from CEQA review.
Politics
Large corporations, including energy companies, are spending millions to support Xavier Becerra in California’s gubernatorial primary as the safe option over progressive billionaire Tom Steyer. San Francisco Standard, May 31, 2026.
Becerra would not commit to the state’s goal of banning purchases of new gas and hybrid vehicles starting in 2035, in a recent POLITICO survey. Politico, May 30, 2026.
Becerra stated that California “should transition from gas-powered vehicles when it makes sense — when infrastructure and affordability are there for California families.” Becerra said California’s move away from fossil fuels depends on unpredictable factors like federal backing, automaker collaboration, and the state’s financial health. California Post, May 31, 2026.
Commentary and analysis
Noah Baustin, “Oil money is taking center stage in the California governor’s race,” Politico, May 29, 2026.
Additional News and Analysis
Oil and gas
H.R. 9034, introduced on May 26, 2026, would require oil and gas companies to establish decommissioning escrow accounts for offshore oil and gas operators.
Offshore wind
Republicans’ FY2027 Interior spending bill would impose substantial new inspection and oversight fees on offshore wind projects, including annual charges and per-turbine inspection fees that developers say could significantly raise project costs. E&E News, May 28, 2026.
The Trump administration’s strategy of paying offshore wind developers to surrender leases has expanded beyond earlier buyouts, and industry observers say additional East and West Coast projects could be targeted. E&E News, May 26, 2026.
Renewable energy
Global clean-energy trade reached a record $479 billion in 2025 despite tariffs and a push to localize clean-energy manufacturing, as strong demand for solar panels, batteries, electric vehicles, and grid equipment kept cross-border trade growing. Semafor, May 28, 2026.
The Trump administration is moving to eliminate federal rebates that subsidize consumers’ switch from gas to electric appliances, arguing that the government should not favor one energy source over another. The change would unwind a key consumer-facing component of clean-energy incentives established under the Inflation Reduction Act. The Hill, May 30, 2026.
Carbon and emissions
The U.S. Securities and Exchange Commission (SEC) formally proposed rescinding the Biden-era climate disclosure rule that would have required public companies to report climate-related risks and certain emissions data. The Hill, May 29, 2026.
AI and data centers
Increasing demand for electricity from AI data centers is driving a boom in U.S. gas-fired power investment, leading the International Energy Agency to project that U.S. investment in fossil-fuel power generation will surpass China’s in 2026. Carbon Brief, May 29, 2026.
Critical minerals
Commentary and analysis
Camilla Hodgson, “Race for rare earths sparks concern about environmental damage,” FT, May 30, 2026.