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
Sable Urges DOE to Consider Eminent Domain for California Petroleum Reserve (July 9, 2026) – Sable Offshore Corp. has asked the U.S. Department of Energy (DOE) to consider using federal eminent domain authority to acquire property needed to support a proposed California petroleum reserve and the operation of the company’s Las Flores Pipeline System. Read more.
Additional California News and Analysis
Oil and gas
Chevron relocates additional San Ramon employees to Houston. Chevron plans to relocate approximately 180 employees from its San Ramon campus to Houston beginning this fall as part of its broader corporate restructuring. (The Mercury News, July 10, 2026).
Commentary and analysis
Soumya Karlamangla, “This California Oil Pipeline Was Dormant for 11 Years. Trump Reopened It.,” New York Times, July 13, 2026.
Dan Walters, “How Newsom’s complex history with the oil industry could affect a presidential run,” Cal Matters, July 10, 2026.
Steve Lopez, “Californians rallied to save the coast 50 years ago. Trump is spoiling the celebration,” Los Angeles Times, July 11, 2026.
Gasoline and fuels
Commentary and analysis
Jason Isaac, “On high gas prices, Newsom tries to deflect the blame,” The Hill, July 8, 2026.
Vehicle emissions
EPA creates alternative to CARB certification for aftermarket vehicle parts. The U.S. Environmental Protection Agency recognized the Specialty Equipment Market Association’s emissions-certification program as an alternative to CARB’s Executive Order process for demonstrating compliance with federal anti-tampering requirements. The action reduces CARB’s influence over the national aftermarket-parts market while preserving California’s own certification requirements. (Politico, July 8, 2026).
Electricity markets and grid
CAISO advances distributed energy market reforms. CAISO plans to release its Draft Final Proposal for the Demand and Distributed Energy Market Integration (DDEMI) Track 1 initiative, which would expand participation by distributed energy resources and improve integration of batteries, demand response, and virtual power plants into wholesale markets. The proposal represents another step toward a more decentralized California grid. (California ISO, July 8, 2026).
San Francisco moves closer to municipal acquisition of PG&E assets. San Francisco officials advanced discussions over acquiring portions of PG&E’s electric distribution system, keeping alive a long-running effort to establish a municipal electric utility. (KQED, July 11, 2026).
Commentary and analysis
Gavin Maguire, “Mid-year check-up on the US power system’s vital signs,” Reuters, July 13, 2026.
Climate policy
California Controller announces climate-related investment initiative. California State Controller Malia Cohen announced new investment-related actions reflecting California’s continued emphasis on integrating climate and sustainability considerations into state financial management. (California State Controller’s Office, July 9, 2026).
Environmental justice groups sue CARB over cap-and-invest overhaul. Communities for a Better Environment filed suit challenging CARB’s recently adopted cap-and-invest amendments, arguing the agency violated the California Environmental Quality Act by failing to adequately analyze a late-added manufacturing decarbonization incentive. (Los Angeles Times, July 7, 2026).
Offshore wind
BOEM formally cancels Invenergy’s California offshore wind lease. BOEM has formally cancelled and rescinded Invenergy California Offshore’s Lease OCS-P 0565. The lease covered an approximately 80,000-acre area in the Morro Bay Wind Energy Area and had been intended for a roughly 2-gigawatt floating offshore wind project. (BOEM, July 10, 2026).
Commentary and analysis
Edward Ring, “The Dismal Economics of Floating Offshore Wind,” California Policy Center, July 8, 2026
Coal
Wyoming prepares legal challenge over Oakland coal export terminal. Wyoming Gov. Mark Gordon said the state is preparing legal action to support construction of the proposed West Gateway coal export terminal in Oakland after California lawmakers advanced legislation that would require additional environmental review. (Washington Examiner, July 11, 2026).
Additional News and Analysis
Electricity markets and grid
Trump push for new coal plants could increase electricity costs. The Trump administration’s effort to extend the life of aging coal plants and encourage construction of new facilities could add billions of dollars in electricity costs. (CNN, July 13, 2026).
Data centers and AI
New York lawmakers consider AI data center moratorium: New York legislators are considering a temporary moratorium on certain AI data center development while studying impacts on electricity demand, environmental goals, and local infrastructure. (The Hill, July 11, 2026).
AI data centers drive renewable energy investment: Rapid growth in AI data centers is fueling demand for renewable electricity, battery storage, and transmission infrastructure while creating new challenges for utilities and grid operators. (AP, July 10, 2026).
Commentary and analysis
Marc Levy, “As gas plants rise to power AI, renewable energy allies are fighting for cleaner alternatives,” AP, July 11, 2026.
Renewable energy
Defense Department emerges as key player in wind energy permitting: The Pentagon has effectively frozen review of at least 155 proposed wind projects in 24 states, citing concerns that turbines could interfere with military radar and drone detection. Developers say the delays affect about 44 gigawatts of potential capacity, have added roughly $2 billion in costs, and could cause projects to miss tax-credit, financing, and interconnection deadlines, making the dispute a major new federal permitting risk for the wind industry. (The Grist, July 13, 2026)
Solar costs rise 18%, but remain the lowest-cost generation option. Utility-scale solar construction costs increased 18% over the past year because of tariffs, higher financing costs and supply-chain pressures, according to Lazard’s latest Levelized Cost of Energy analysis. Despite the increase, solar remained the lowest-cost source of new electricity generation, while the cost of new combined-cycle natural gas plants reached its highest level in 15 years. (Reuters, July 13, 2026).
Commentary and analysis
“America’s clean energy expansion isn’t doomed,” The Washington Post, July 10, 2026.
International
EU considers 2040 electrification target to reduce fossil fuel demand. The European Commission is reportedly preparing a 2040 electrification target to promote the deployment of clean energy by replacing oil and natural gas with electricity across transportation, buildings, and industry. (Bloomberg, July 9, 2026).
IEA says Europe’s slow electrification is a mistake. Europe has made a “major mistake” by failing to wean its economy off imported fossil fuels quickly enough since the 2022 energy crunch, the head of the International Energy Agency has warned, as the EU prepares to roll out measures to increase electrification next week. (FT, July 10, 2026).