California Energy Journal Weekly
For the week August 8, 2025 to August 15, 2025
This weekly newsletter will highlight 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
California Supreme Court Orders New Review of NEM 3.0 Rooftop Solar Policy (August 11, 2025) – The California Supreme Court ordered a lower court to reconsider a policy decision that reduced utility payments to homeowners for electricity sent to the grid from rooftop solar panels. The court sent the regulations in California’s third iteration of its Net Energy Metering (NEM) subsidy program, known as NEM 3.0, back to the state appeals court for review. Read more.
Interior Implements Policies to End Federal Offshore Wind Leasing (August 8, 2025) – The Trump administration issued a series of orders that effectively ended offshore wind leasing in U.S. federal waters. This included implementing policy measures to “end special treatment for unreliable energy sources, such as wind,” rescinding all designated Wind Energy Areas (WEAs) on the U.S. Outer Continental Shelf (OCS), directing agencies to consider a project’s “capacity density” when assessing the project’s potential energy benefits, and beginning “a full review” of offshore wind energy regulations. Read more.
California’s Clean Truck Partnership Faces Legal Challenges and FTC Invalidation (August 15, 2025) – California’s Clean Truck Partnership to advance zero-emission vehicles (ZEVs) for the commercial trucking industry fell under legal attack by both truck manufacturers and the federal government. The challenges to 2023 agreement, under which truck manufacturers committed to 100% zero-emissions vehicles (ZEVs) in exchange for flexibility in meeting emissions requirements, add to the recent loss of the emissions waivers and further weaken California’s efforts to transition to ZEVs. Read more.
Additional News
Wind and Solar
The U.S. Treasury Department released stricter rules for how solar and wind projects can qualify for federal tax subsidies, changing the longstanding definitions for “under construction” by requiring wind and solar developers to complete physical work rather than simply show that they have invested capital. Reuters (August 15, 2025).
Oil and Gas
The California Energy Commission (CEC) deferred debate on a resolution to pause implementing a 2023 state law that would impose financial penalties on gasoline producers accused of accruing “excess profits” while “price gouging” consumers. Epoch Times (August 13, 2025).
The IEA said global oil markets are on track for a record surplus next year as demand growth slows and supplies swell. Yahoo (August 13, 2025)
Federal policy
California joined a multistate coalition in suing to block the U.S. Department of Energy from imposing a new funding cap that slashes support for vital state-run energy programs. CA DOJ (August 16, 2025).
EVs
California's Clean Air Vehicle (CAV) Decal program, which allows single-occupant electric and alternative-fuel vehicles to use HOV lanes, is set to expire October 1, 2025 without extension from the EPA. CBS (August 13, 2025).
The Trump administration released revised guidance for the $5 billion National Electric Vehicle Infrastructure (NEVI) program that aims to “streamline applications, provide states with more flexibility, and slash red tape…” DOT (August 11, 2025).
Storage
Arevon Energy has completed the $2 billion, two-phase Eland solar-plus-storage project in Kern County, California, which will supply about 7% of Los Angeles’s electricity demand. PV Mag (August 11, 2025)
Critical Minerals
The Trump administration is proposing nearly $1 billion in funding to speed the development of U.S. critical minerals and materials, used in everything from electric vehicle batteries to semiconductors. Reuters (August 13, 2025); DOE.
Nuclear
The U.S. Department of Energy selected 11 projects for a nuclear reactor pilot program, with hopes of fully developing three of the projects by July 2026. DOE (August 12, 2025)
The EPA has agreed to the Energy Department's request to dig out two new underground areas to store nuclear waste at the only permanent U.S. burial site for radioactive materials. Axios (August 12, 2025)
Companies in the uranium enrichment business are struggling to keep up with America’s growing nuclear energy ambitions. EE News (August 13, 2025)
Data Centers and AI
Data centers looking to connect to the PJM grid must bring their power supply because the system has no spare supply for new data centers, according to the system’s independent watchdog Monitoring Analytics LLC. Bloomberg (August 14, 2025)
Efforts to meet booming US power demand from artificial intelligence will be hindered by a growing shortage of transformers, according to Wood Mackenzie. Bloomberg (August 14, 2025)
OpenAI CEO Sam Altman wants to spend trillions of dollars on infrastructure required to develop and run artificial intelligence services. Bloomberg (August 15, 2025)
International
Chinese solar firms are in talks to set up a 50 billion yuan ($7 billion) fund to buy and then shut down more than one million tons of production capacity for key raw material polysilicon. Reuters (August 14, 2025)
Interesting Reads
“States Race to Help Renewables Beat the Tax Credit Clock,” Emily Pontecorvo, Heatmap (August 11, 2025).
“Are we entering a ‘golden age of utilities’?,” Alexander C. Kaufman, Latitude Media (August 11, 2025),
“Big Tech’s A.I. Boom Is Reordering the U.S. Power Grid,” New York Times (August 14, 2025)
“Newsom’s push to reduce fossil fuels is clashing with California’s thirst for gasoline,” Los Angeles Times (August 11, 2025)
“California taxpayers gave PG&E a huge, supposedly safe loan. The losses are already mounting,” CalMatters, (August 12, 2025).
“Newsom, lawmakers short on options to reduce California’s soaring electricity costs,” Dan Walters, CalMatters (August 14, 2025).
“Let’s build on what works for the supply chain, not failed regulations,” Timothy Jemal, LA Daily News (August 16, 2025).
“California’s self-own on wind and solar,” Politico (August 17, 2025).