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
Federal Court Allows California Oil Setback Law to Remain in Effect (April 2, 2026) – A federal district court denied the Trump administration’s request to block California’s oil and gas setback law, allowing the state to continue enforcing restrictions on drilling near homes, schools, and hospitals. Read more.
NRC Approves Diablo Canyon License Extension to 2045, Shifting Decision to California Legislature (April 6, 2026) – The U.S. Nuclear Regulatory Commission (NRC) approved a 20-year operating license renewal for the Diablo Canyon Power Plant, authorizing operations for the two units until the mid-2040s. State law, however, currently limits operations to 2029 and 2030 unless the state legislature authorizes a further extension. Read more.
Additional California News and Analysis
Refineries and gasoline
California’s gas prices receive international attention as the Financial Times reported on the state “confronting sky-high petrol prices and the threat of jet fuel shortages because of disruption caused by the Iran war, exposing US energy insecurity as the Strait of Hormuz remains closed.” Financial Times, March 31, 2026.
CBS interviews California 2026 governor candidates to discuss oil production, refineries, gasoline prices, and environmental policy. CBS News, April 6, 2026.
Commentary and analysis
Tony Strickland, “With Californians paying sky-high gas prices, now’s not the time for new oil regulations,” Cal Matters, March 31, 2026.
Oil and gas
California Attorney General Rob Bonta joined the California Natural Resources Agency in submitting a comment letter, reaffirming opposition to the federal government’s Outer Continental Shelf Oil and Gas Leasing Draft Proposed Program. Office of Attorney General, March 31, 2026.
Commentary and analysis
Talia Nimmer, Trump crossed an oily line of state sovereignty in California — your state is next,” The Hill, April 4, 2026.
EVs
The chair of the House Energy and Commerce Committee announced a subpoena for the California Air Resources Board, which he accused of not cooperating with an investigation into whether the state is still enforcing repealed EV sales rules. He said CARB has denied car manufacturers approval to sell in the state unless they follow the repealed standards. Politico, March 31, 2026.
AI and data centers
Commentary and analysis
Nilesh Christopher, “‘You’re a liar.’ Why the world’s biggest building boom has run into a wall in California,” Los Angeles Times, April 2, 2026.
Additional News and Analysis
Oil and gas
The oil supply shock will be worse in April than in March, according to IEA Chief Fatih Birol. The IEA is weighing another release of strategic oil reserves. CNBC, April 1, 2026.
Five European Union countries are calling for a windfall tax on energy companies’ profits in reaction to rising fuel prices due to the Iran war. Reuters, April 4, 2026.
The Trump administration is proposing to combine the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement into a single agency, the Minerals Management Service. The Hill, April 6, 2026.
Commentary and analysis
June Yoon, “Will $100 oil speed up the EV shift?,” Financial Times, April 1, 2026.