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.
Federal Review Opens Path to New Oil Drilling Off the Coast of California (January 29, 2026) –The Bureau of Ocean Energy Management (BOEM) on January 26, 2026 issued two Calls for Information and Nominations covering previously protected federal waters off Southern and Central California. The notices begin a preliminary review under the Outer Continental Shelf Lands Act and invite public and industry input on environmental conditions, potential commercial interest, and socioeconomic impacts. The “calls” formally initiate a process that could lead to the first new offshore lease sales in the region since 1984. Read more.
EPA Blocks California’s Out-of-State Truck Inspection Rule (February 2, 2026) – The U.S. Environmental Protection Agency (EPA) issued a final rule January 27, 2026 disapproving of California’s inspection and maintenance requirements on out-of-state trucks passing through the state. The EPA approved California’s Heavy-Duty (HD) Inspection and Maintenance (I/M) Regulation only as it applies to in-state registered vehicles. The EPA proposed its disapproval of the so-called Clean Truck Check rule on out-of-state vehicles in August 2025. Read more.
Additional California News and Analysis
Gasoline and fuels
California’s state Senate Republicans called on Gov. Gavin Newsom to convene a special legislative session to address high gasoline prices and respond to the impending shutdown of one of the state’s eight remaining gasoline-producing refineries. E&E News, January 30, 2026.
California failed to save Valero, Western States Petroleum Association CEO says. The governor’s office said in a statement earlier this month it had been encouraged by talks with Valero and said discussions were ongoing on possible continued operations at the refinery. KCRA, February 1, 2026.
California Republicans are opposing a study of whether to replace the state’s gas tax with a mileage-based fee system. AB 1421, revised in January, would require the California Energy Commission to research and provide recommendations on a road user charge or a mileage-based fee system by January 1, 2027. KCRA, February 2, 2026.
Valero notified the Bay Area Air District that beginning on January 31, 2026, it will shut down some refinery equipment as part of a phased process. A full shutdown of refinery operations is expected by April 2026. CBS News, January 31, 2026.
Commentary and analysis
“California Pipeline Closes, 100 Trucks Hit Roads: Is This the Breaking Point for California Consumers and High Gas and Diesel Looming?,” Energy News Beat, January 30, 2026.
Jeremy Martin, “Biofuel Incentives in Flux: Interactions Between Federal and California Policy,” The Equation, February 3, 2026.
Oil and gas
Between January 2 and January 26, Kern County reported issuing a total of 361 oil permits, about 39% of them for drilling new wells. An additional 43% of the approved applications relate to modifications such as well-deepening work and drilling that was required to meet new local standards. Bakersfield Californian, January 27, 2026.
EVs
California officials are meeting Detroit automakers to discuss the next phase of greenhouse gas regulations for cars and trucks. The state is fighting in the courts and in the U.S. Congress against President Donald Trump’s efforts to dismantle landmark federal vehicle emissions standards. Reuters, January 29, 2026.
Commentary and analysis
Tik Root, “EVs are already making your air cleaner: A study in California finds that even small increases in EV adoption lead to measurable drops in neighborhood-level air pollution.,” Grist, January 30, 2026.
Power and utilities
Governor Gavin Newsom said he doesn’t think Pacific Gas & Electric should be broken up. The idea has been suggested multiple times by aspiring gubernatorial candidates and congressional members as a solution to the skyrocketing costs for households. SF Gate, January 30, 2026.
Assembly Member Boerner introduced AB 1677, which would state the intent of the Legislature to enact future legislation to require electrical corporations and gas corporations to reduce ratepayer bills by 25%. February 2, 2026.
As electricity prices soar and rooftop solar subsidies vanish, some U.S. renters and homeowners are surreptitiously installing solar panels on balconies and in backyards without their utility’s permission. Los Angeles Times, February 3, 2026.
Senator Josh Becker introduced SB 943, which would authorize the California Public Utilities Commission (CPUC) to direct larger electrical corporations to assist industrial companies in switching to electricity for industrial heat by applying “an adjustment factor to the per kilowatthour rate so as to limit the nonbypassable charge ratio.”
Commentary and analysis
Jeanne Kuang, “Tom Steyer vows to cut electricity bills by 25%, but experts say the details fall short,” CalMatters, January 29, 2026.
Carbon emissions
Greenhouse-gas emissions throughout Santa Barbara County increased by 1% in the past five years despite two major planning initiatives launched by the county supervisors to bring emissions down by 50% by 2030. Santa Barbara Independent, January 28, 2026.
Additional News and Analysis
Wind and solar
All five offshore wind projects halted by the Trump administration in December can resume construction following a federal judge’s ruling that cleared Denmark’s Orsted to proceed with its Sunrise Wind project off the coast of New York. Reuters, February 2, 2026.
Data centers and AI
Commentary and analysis
Martha Muir and Jamie Smyth, “The political cost of America’s surging electricity bills: Data centres powering the AI boom are straining grids and causing price rises that could hurt Trump,” Financial Times, February 2, 2026.
Critical minerals
The U.S. will put together a $12 billion minerals stockpile that is expected to involve rare earth elements, other minerals that the government considers “critical” and additional materials whose prices may fluctuate. The Hill, February 2, 2026.