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
CEC Pauses Refinery Profit Cap for Five Years (August 29, 2025) – The California Energy Commission (CEC) paused implementation of the state’s profits cap on refineries, known as the maximum gross gasoline refining margin (GGRM), and the related penalty until 2030. The delay is part of the state’s recent efforts to improve the operating and investment environment for the oil industry in California. Read more.
EPA Proposes to Prevent California from Applying Smog Regulations to Out-of-State Trucks (August 28, 2025) – The U.S. Environmental Protection Agency (EPA) proposed to disapprove of California’s Heavy-Duty (HD) Inspection and Maintenance (I/M) Requirements as it applies to out-of-state and out-of-country vehicles. The rule, which was implemented in 2023 intended to reduce emissions of particulate matter and oxides of nitrogen, mandates roadside emissions screening and periodic emissions testing for non-gasoline heavy-duty vehicles operating in California. The EPA’s proposal would allow California to implement the HD I/M rule for heavy-duty vehicles registered in the state. Read more.
California and Denmark Sign Partnership on the “Green Economy” and Technology (August 26, 2025) – Governor Gavin Newsom signed a Memorandum of Understanding (MOU) between California and Denmark supporting strategic cooperation on the “green economy,” technology and cyber development, and innovation. Denmark is committed to expanding our partnerships around the world – also with federal states like California,” Danish Foreign Minister Lars Løkke Rasmussen said. “We are both frontrunners within green energy, innovation, and sustainability. If we combine our efforts, we can really push forward – not only for our own economies and societies, but also by inspiring others to pursue a green transition that creates jobs and growth at the same time.” Read more.
Additional News
Wind and Solar
U.S. investments in renewable energy projects fell by $20.5 billion, or 36%, in the first half of the year from the prior six months, with wind and solar commitments falling 18% within the period, according to BloombergNEF. Bloomberg (August 26, 2025).
The Trump administration stopped all activities of a wind energy project in Rhode Island for the “protection of national security interests.” The Hill (August 22, 2025).
The U.S. Department of Transportation terminated and withdrew $679 million for offshore wind projects, including in Maryland and offshore Humboldt, California. DOT (August 29, 2025).
In the 2025 legislative session, which ended in June, states had an unprecedented number of bills aimed at clean energy siting. Latitude Media (August 26, 2025).
Oil and gas
Global demand for natural gas will rise more than 20% by 2050 from last year's level as it displaces coal to power industries and meet higher electricity use in developing countries, according to Exxon Mobil. Reuters (August 28, 2025).
Storage
U.S. battery makers will likely face a major surplus in manufacturing capacity by 2030, according to a new report by BloombergNEF. Bloomberg (August 28, 2025).
Critical Minerals
U.S. Geological Survey released the draft 2025 List of Critical Minerals and a report that outlines a new model for assessing how potential supply chain disruptions could affect the U.S. economy. Copper, potash, lead, rhenium, silicon and silver are proposed additions to the list. DOI (August 25, 2025); Bloomberg (August 26, 2025).
Federal policy
Governor Gavin Newsom attributed the recent 10% increase in California’s electricity costs to President Donald Trump’s policies. TampaFP (August 25, 2025).
The Trump administration officials reverted scientific integrity policies at the Environmental Protection Agency and National Oceanic and Atmospheric Administration to versions as they existed at the end of the first Trump administration in January 2021. Washington Post (August 22, 2025).
International
China will tighten its carbon trading market by introducing absolute emissions caps in some industries for the first time. The caps will be implemented first in industries with relatively stable carbon emissions by 2027 and China will establish its nationwide carbon market or emissions trading scheme by 2030. Reuters (August 26, 2025).
Chinese solar manufacturers reported a combined net loss of over 13 billion yuan in the first half, but investors are beginning to detect signs of progress in their battle against overcapacity. Bloomberg (August 25, 2025).
China has increased coal power projects in the first half of 2025, suggesting a resurgence in coal dependency despite the nation’s clean energy advancements. Energy Monitor (August 25, 2025).
Interesting Reads
Evan Halper, “Trump is waging war on wind energy. Consumers and investors face the costs.,” Washington Post, August 26, 2025.
Deborah Seligsohn, “China’s Decarbonization Is So Fast Even New Coal Plants Aren’t Stopping It,” Foreign Policy, August 21, 2025.
Caleigh Well, “As AI becomes part of everyday life, it brings a hidden climate cost,” The Hill, August 22, 2025.
Gideon Rachman, “China has laid a rare earths trap for the west,” Financial Times (August 25, 2025).
Dan Walters, “Renewal of California cap and trade program to cut emissions is fraught with issues,” Cal Matters (August 22, 2025).
Anisha Steephen, Americans’ Energy Costs are Rising. You Can Blame Trump and Big Tech,” Time (August 26, 2025).
Tony Briscoe, “Methane leaks at California oil facilities are also spewing toxic chemicals,” Los Angeles Times (August 26, 2025).
“Donald Trump, friend of the EV?,” The Economist (August 26, 2025)