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
California Sues Trump Administration over Sable Pipeline Approval (January 26, 2026) – California is suing the federal government for taking regulatory authority over Sable Offshore Corp.’s Las Flores Pipeline System. The pipeline, which was shut down following the 2015 Refugio oil spill, is critical to restarting oil production in the Santa Ynez Unit. Read more.
CARB Proposes Amendments to California’s Cap-and-Trade Rules (January 23, 2026) – In January 2026, the California Air Resources Board (CARB) issued a set of proposed regulatory amendments to the rules governing California’s greenhouse gas trading program, now referred to as Cap-and-Invest. The proposal is designed to realign the program with California’s long-term climate objectives, including the statutory goal of achieving economy-wide carbon neutrality by 2045. Read more.
BLM Says Increased Oil Drilling in California Will Have Minimal Environmental Impact (January 21, 2026) – The Bureau of Land Management (BLM) released a draft environmental impact statement that concludes that new drilling in central and coastal California would not significantly harm public health or the environment. The environmental review is part of the Trump administration’s plans to open 1.2 million acres of federal mineral lands in California to oil and gas drilling. Read more.
Additional California News and Analysis
Offshore oil
The 60-day public comment period closed January 23, 2026 for the federal draft proposal to lease approximately 1.27 billion acres in the Outer Continental Shelf (OCS), including in six areas off the coast of California. BOEM; Comment Letter from California Natural Resources Agency, January 23, 2026; Comment Letter from National Caucus of Environmental Legislators, January 22, 2026.
The Bureau of Ocean Energy Management announced two Calls for Information and Nominations to solicit industry nominations and public comments on areas of interest for potential offshore oil and gas leasing in Southern California and Central California. BOEM, January 26, 2026.
Commentary and analysis
Madeline Shannon, “California lawmakers push back against offshore oil drilling,” The Center Square, January 21, 2026.
Oil and gas
Nevada is looking for ways to break away from a decades-long dependence on California fuel as California experiences refinery closures. Gov. Joe Lombardo proposed the Nevada Fuel Resiliency Committee, which had its first meeting last week. Nevada Current, January 20, 2026.
Commentary and analysis
Jodie Miller, CEO Western States Petroleum Association, “California on the brink of energy crisis: Lawmakers acted, more must be done,” BIC Magazine, January 20, 2026.
EV
During the fourth quarter of 2025, Californians purchased 79,066 new zero-emission vehicles (ZEVs), representing 18.9% of new car sales. The state also surpassed 2.5 million new ZEV sales. CEC, Governor’s Office, January 20, 2026.
Commentary and analysis
Caroline Petrow-Cohen, “California exceeds clean car goal despite declining federal support,” Los Angeles Times, January 20, 2026.
Alejandro Lazo, “Newsom wants $200M for EV rebates. Experts say it’s not enough to fix California’s slump,” CalMatters, January 23, 2026.
Renewable energy
Commentary and analysis
Michael Thomas, “Solar and Batteries Are Squeezing Out Natural Gas in California,” Distilled, January 23, 2026.
Mary Creasman, “California’s choice: clean energy or oil chaos,” Capitol Weekly, January 20, 2026.
Power and utilities
The California Energy Commission forecasts that electricity demand will increase by roughly 50% through 2045. Electric vehicles are projected to be the largest driver of peak demand load growth. CEC, January 21, 2026; E&E News, January 22, 2026.
Additional News and Analysis
The Trump administration is canceling $30 billion in green loans and revising another $53 billion after its review of $104 billion in loan obligations issued by the Biden administration. The Hill, January 23, 2026.