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
Sable Requests Transfer of Las Flores Pipeline Oversight from State Fire Marshall to Federal Regulator (December 4, 2025) – Sable Offshore Corp. requested that the federal government take regulatory oversight of the pipeline system critical to its restart of oil production in the Santa Ynez Unit. The California Office of the State Fire Marshal (OSFM) currently has oversight of the pipeline. Read more.
Additional California News and Analysis
Oil and gas
The impending loss of two refineries and the collapse of the only remaining northern pipeline, together with increasing dependency on non-U.S. gasoline sources to California could drive the price of gasoline to double that of the national average by calendar year end 2026, according to a new report. California’s Oil and Gas Conundrum (December 1, 2025).
A proposed pipeline from Phillips 66 and Kinder Morgan could end California’s status as a “fuel island” and fill the gap left by upcoming closures of two major refineries. Los Angeles Times (November 26, 2025).
A Kern County Superior Court judge officially lifted an order that had stopped county officials from issuing local oil permits, potentially ending a legal battle dating back to 2015. The Bakersfield Californian (December 5, 2025).
Rep. Vince Fong said California’s oil and gas issues are a national security risk. Fong stated that California’s lack of supply also impacts neighboring states Nevada and Arizona. KCRA (December 7, 2025).
State Senator Shannon Grove asked President Donald Trump to consider invoking the Defense Production Act to save California’s refinery and pipeline capacity and expand its oil production. Shannon Grove (December 4, 2025).
Commentary
Katy Grimes, “Has California’s Oil and Gas Industry Hit the Point of No Return?,” California Globe, December 1, 2025.
Austin Gae, “What’s really fueling Californians’ pain at the pump,” San Diego Union Tribune, December 3, 2025.
Edward Ring, “California’s War on Oil Actually Harms the Environment,” California Policy Center, December 3, 2025.
VIDEO:, “Has California’s Oil and Gas Industry Hit the Point of No Return?, Energy News Beat, December 6, 2025.
David Blackmon, “Newsom’s California: Slouching Towards A Self-Inflicted Energy Crisis,” Forbes, December 7, 2025.
Power transmission
The California Public Utilities Commission (CPUC) published a revised draft resolution for its 10-year plan by the state’s investor-owned utilities to put electrical wires underground. The new proposal removed the controversial cost-to-benefit ratio that the CPUC had previously proposed. Greenwire (December 4, 2025).
EVs
Edward Ring, “EVs and California’s Future Demand for Electricity,” California Globe, December 4, 2025.
Solar
The California Public Utilities Commission (CPUC) voted to reject Pacific Gas & Electric’s plan to end its power purchase agreement with the Ivanpah Solar Electric Generating Station under the guidance of the Department of Energy. Ending the agreement with the concentrated solar plant would force the facility to shut down. Politico Pro (December 4, 2025).
A coalition of 18 California legislators formally urged the California Public Utilities Commission (CPUC) to enforce regulations under “Rule 21” regarding the interconnection of customer-sited solar and energy storage systems. The legislators said utility non-compliance with certain Rule 21 timelines has reached up to 73% over the last five years. PV Magazines (December 1, 2025).
Coal
The Intermountain Power Plant in Utah, which primarily serves southern California, stopped producing energy with its coal-fired generators on November 26, 2025. Utah News Dispatch (December 5, 2025); Clean Technica (December 6, 2025).
Data centers
Artificial intelligence and its growing demand for data centers are putting new pressure on California’s electric grid. In San Jose, supporters see jobs and investment, while a key ratepayer advocate worries customers could end up paying for upgrades. CalMatters (December 8, 2025).
Nuclear Power
Commentary
Seaver Wang, “Why California’s Coastal Commission Should Let Diablo Canyon Keep Operating,” Breakthrough Journal, December 3, 2025
Energy policy
Commentary
Richard Stevenson, “Actual Energy Diversity,” California Globe, December 8, 2025.
Additional News
Data centers
Data-center power demand will hit 106 gigawatts (GW) by 2035 in BloombergNEF’s newest forecast, a 36% jump from the previous outlook, published just seven months ago. BloombergNEF (December 1, 2025).
The United States is looking to use large industrial diesel generators to help curb rising electricity costs and support the surge in power demand from artificial intelligence, according to Energy Secretary Chris Wright. The move could add the equivalent of roughly 35 traditional nuclear power plants worth of electricity and negate the need to build scores of power plants. Bloomberg (December 2, 2025).
Critical minerals
The US will seek agreements with Japan, South Korea, Singapore, the Netherlands, the UK, Israel, the United Arab Emirates, and Australia to strengthen supply chains for computer chips and critical minerals needed for AI technology. Bloomberg (December 2, 2025).
Fuel economy
The Trump administration proposed new fuel economy standards for vehicles that would roll back efficiency rules implemented under former President Biden. The plan would relax fuel economy standards by setting the industry average for light-duty vehicles at roughly 34.5 miles per gallon through the 2031 model year, lower than the 50 miles per gallon outlined by a Biden-era rule. CBS News (December 4, 2025).
Energy policy
Commentary
Matthew Yglesias, “A bolder vision for American energy,” Slow Boring, December 8, 2025.