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 to Sue Trump Administration Over Offshore Wind Lease Cancellations (June 25, 2026) – California is preparing to sue the Trump administration over its decision to cancel offshore wind leases off the state’s coast. The suit will focus on the lease buyback for Golden State Wind LLC in Morro Bay off the state’s Central Coast. Read more.
Additional California News and Analysis
Offshore oil
The Trump administration announced that it will review California’s coastal oversight, including scrutiny of the California Coastal Commission, as part of its effort to expand offshore energy development. (KQED, June 26, 2026).
Chevron is in the process of removing aging offshore oil infrastructure near Carpinteria, including pipeline removal, as part of its long-term decommissioning program under state and federal oversight. (KEYT, June 22, 2026).
The Santa Barbara County Air Pollution Control District Hearing Board granted Sable Offshore Corp. a five-day pollution waiver allowing one of its offshore platforms to continue operating despite exceeding emissions limits while the company works to resolve compliance issues. (Noozhawk, June 26, 2026; Santa Barbara Independent, June 27, 2026).
Oil
Federal officials approved new oil and gas leases in California after years of delays, describing the move as part of a broader effort to increase domestic energy production. (New York Post, June 25, 2026).
The Los Angeles City Council approved an ordinance to ban new oil and gas drilling and phase out existing oil production over the next 20 years, reviving a 2022 measure that was struck down in court. (Los Angeles Times, June 23, 2026).
Commentary and analysis
Edward Ring, “The Best Way to Eliminate Methane Leaks is to Drill,” California Policy Center, June 24, 2026.
Soumya Karlamangla, “California’s Plastic Law Goes to Court: Is It Too Strict or Too Lax?,” New York Times, June 24, 2026.
Kemp Gregory, “Can Idle Kern Oil Wells Become Renewable Energy Storage?,” GV Wire, June 23, 2026.
Vehicle emissions
California asked a federal court to prevent Congress and the Trump administration from overturning the state’s vehicle emissions waivers, arguing the repeal violates constitutional and administrative law principles. (Reuters, June 25, 2026).
EVs
Gov. Gavin Newsom and state lawmakers reached a budget deal to provide $135 million for a state EV rebate program that would provide a $3,500 instant rebate for new EV purchases. (USA Today, June 29, 2026).
Power and utilities
A consumer watchdog estimated PG&E customers could pay roughly $840 more annually by 2030 because of rising utility costs, though the utility disputed the estimate. (San Francisco Chronicle, June 25, 2026).
Carbon and emissions
California, Washington, and Quebec signed an agreement to pursue linking their carbon markets, a move intended to reduce emissions more efficiently, expand market liquidity, and lower compliance costs. (Environmental Defense Fund, June 25, 2026).
AI and data centers
Commentary and analysis
Blanca Begert, “If AI data centers are exploding nationwide, why are so few being built in California?,” Los Angeles Times, June 23, 2026.
Additional News and Analysis
Oil and gas
The United States and Qatar urged the European Union to revise its methane regulations, warning the rules could discourage liquefied natural gas exports and create future supply risks. (Reuters, June 24, 2026).
Nuclear
The Trump administration outlined plans to streamline permitting and speed construction of advanced nuclear reactors to expand U.S. electricity generation and strengthen energy security. (Associated Press, June 23, 2026).
AI and data centers
Chevron and Microsoft are studying whether treated produced water from Permian Basin oil operations can be used to cool AI data centers and reduce freshwater consumption. (Houston Chronicle, June 23, 2026).
Commentary and analysis
Josh Siegel and Nico Portuondo, “Data center energy bill hits speed bump,” Politico, June 25, 2026.