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
Humboldt Offshore Wind Hit by Funding Withdrawal (September 4, 2025) – The Trump administration is terminating and withdrawing $679 million in funding for 12 offshore wind projects, including a marine terminal project on the coast in Humboldt, California. The Humboldt Bay Heavy Lift Terminal had the largest withdrawal in federal support at almost $427 million. The funding cancellation largely targeted ports and staging areas that were to be used to assemble offshore wind turbines. Read more.
Newsom Orders State Agencies to Help Projects Claim Federal Tax Credits (September 3, 2025) – California will help clean energy projects claim federal tax credits that are expiring as a result of the recently passed One Big Beautiful Bill Act (OBBB). The bill, passed into law in July, largely repealed the energy tax credits enacted under the Inflation Reduction Act. Governor Gavin Newsom signed an executive order on August 29, 2025 directing state agencies to track and prioritize projects that can claim these tax credits before they expire. Read more.
Additional News
Wind and Solar
The White House has instructed a half-dozen federal agencies to draft plans to thwart the country’s offshore wind industry. The effort involves agencies that typically have little to do with wind power. New York Times (September 3, 2025).
Solar and storage projects made up 82% of installations to the U.S. grid in the first half of 2025, but the industry is facing a sharp downturn due to the “seismic shift” in federal policy, according to the Solar Energy Industries Association and Wood Mackenzie. E&E News (September 8, 2025)
Oil and gas
The D.C. Court of Appeals ruled against environmental groups and upheld the Department of the Interior’s 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program. DOJ (August 29, 2025).
Carbon
New research finds there are far fewer underground rock formations to store carbon than previously thought. Grist (September 3, 2025).
EVs
California continues to invest in electric vehicles (EV) and related infrastructure despite the Trump administration’s policy upheaval and a series of lawsuits. WSJ (September 3, 2025).
Canadian Prime Minister Mark Carney is delaying a requirement for automakers to begin hitting minimum sales levels for electric vehicles next year as the sector deals with U.S. President Donald Trump’s tariffs. AP (September 5, 2025)
Power and Utilities
The Federal government is suing SoCal Edison, alleging that it failed to properly maintain its power and transmission infrastructure in the area where the Eaton Fire ignited on January 7, 2025. DOJ, NBC News (September 4, 2025).
Growing international demand is causing natural gas prices to rise, which will push U.S. electricity prices higher, according to the Institute for Energy Economics and Financial Analysis. Utility Dive (September 3, 2025)
Nuclear
Uranium demand for nuclear reactors is expected to increase by almost 30% in the next five years as more governments rely on nuclear power to meet zero-carbon targets, according to a World Nuclear Association report. Reuters (September 5, 2025).
The Trump administration is more willing to support loan guarantees and tax breaks for nuclear power than for wind and solar because it is "more American" than those forms of energy, the director of the U.S. Energy Dominance Council said. Reuters (September 4, 2025).
Politics
Gavin Newsom indicated that he may call a special legislative session to get his energy priorities through the legislature. Politico (September 5, 2025).
Interesting Reads
“Should California allow more oil drilling? Yes — but in moderation,” McClatchy California Editorial Board, August 31, 2025.
Jonathan Weil, “Gavin Newsom Has an $18 Billion Plan to Shore Up California’s Utilities. It Isn’t Enough.,” WSJ, September 4, 2025.
Adam Schiff, “Trump’s grudge against California could lead to the next major oil spill, Los Angeles Times, September 5, 2025.
Sam Jenson, “California’s Renewable Energy: California’s “progressive” policies stifle technological progress,” The Independent Institute, September 5, 2025.
Alex Nieves and Noah Baustin, Meet the new oil industry leader navigating California’s transition,” Politico, September 5, 2025.
“Why nuclear is now a booming industry,” The Economist, September 4, 2025.