Calif. green-lights what would be nation's largest solar, battery project
What happened: The California Energy Commission voted unanimously to approve a permit for Intersect Power's Darden Energy Project in the southwestern Central Valley. The project includes solar panels that can generate 1,150 megawatts, roughly enough to power 862,500 homes, as well as a giant battery that can keep those homes powered for four hours and a substation to connect to the grid.
Why this matters: The vote is the first project approved under a new opt-in streamlined permitting process established by a 2022 state law, AB 205. The law is aimed at shortening review timelines and circumventing local opposition in service of California's goal to rid its grid of greenhouse gas emissions by 2045.
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More details: The developer completed its application for the project in September 2024. It had buy-in from local officials eager for the jobs and tax revenue, estimated in the tens of millions annually.
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Politico
03-07-2025
- Politico
Drill, Gavin, drill?
With help from Alex Nieves We'll be off Friday but will be back in your inboxes Monday. FLARE UP: Gov. Gavin Newsom, the erstwhile fighter of Big Oil, has cracked the door open to more in-state oil extraction — and California oil drillers are hoping to ride the political momentum. Newsom told reporters this week he was actively reviewing California Energy Commission Vice Chair Siva Gunda's recommendations to keep California's refineries operating profitably after two of them announced plans to close within the past year and triggered a cascade of concerns about fuel supply and prices. 'There's an imperative to move on this,' Newsom said Tuesday, adding he was weighing both legislative and administrative options. 'We're looking to move very quickly on some of those recommendations.' Among Gunda's recommendations is a call for lawmakers to statutorily approve new wells in Kern County's oilfields, effectively sidestepping litigation from environmental groups that has snarled the county's years-long effort to streamline permitting. Gunda, echoing longstanding industry complaints, pointed to the legal gridlock as slowing the in-state production that some refineries depend on because they're not built to process foreign crude. The recommendation has energized in-state oil producers, who've seen state permits for new wells plummeting in recent years as part of the Newsom administration's goal to phase out oil production by 2045. 'It's certainly a welcome development,' said Rock Zierman, the CEO of the California Independent Petroleum Association. 'We're now hoping to translate that into action.' They're also riding high on the Trump administration's agenda: The Bureau of Land Management is currently taking comments on updates to oil and gas leasing programs in south-central California. And the Interior Department killed a 2012 agreement with California's oil regulator over permitting, a largely symbolic move that was still celebrated by California Republicans this week. Catherine Reheis-Boyd, the president and CEO of the Western States Petroleum Association, said she's heartened by the prospect of more Kern County drilling. 'My hope is that that happens in the short term, not the midterm and not the long term,' she said. 'Otherwise we're going to find ourselves in another very difficult conversation.' The more than $15 million mailer and ad campaign by in-state oil producers to tie California's climate policies to high gas prices is bearing fruit. Reheis-Boyd said she's had more talks with lawmakers, administration officials and environmental groups in recent months. One of the 'ground rules' of the talks, Reheis-Boyd said, was that there would be no new drilling near homes or in environmentally sensitive areas. But the environmental and community groups fighting Kern County drilling are unconvinced. 'That is very alarming rhetoric about an in-state turnaround,' said Kassie Siegel, senior counsel and director of the Center for Biological Diversity's Climate Law Institute. She's kept Kern County's drilling effort in the courts, where it remains even after the Kern County Board of Supervisors approved a revised drilling ordinance last week in an attempt to meet a judge's demands for more mitigation measures. 'I don't believe we're going to have any big increase in production in California,' Siegel said. 'But the question is, how much damage is the industry going to do on its way out the door?' A spokesperson for Speaker Robert Rivas declined to comment on the record. Senate President Pro Tem Mike McGuire said in an email that state energy officials would brief Democratic senators on the oil recommendations 'soon.' 'The Senate is committed to energy affordability while continuing our nation-leading role combatting the climate crisis,' he said, citing legislative proposals to limit utility costs to ratepayers and overhaul the makeup of transportation fuels. 'We look forward to our continued work with the Assembly and Administration on this critical matter that impacts millions of Californians.' Meanwhile, Reheis-Boyd is hoping to snag her first meeting with Newsom himself. She's pitched herself for his podcast, she said: 'I'm in line.' — CvK Did someone forward you this newsletter? Sign up here! MEGA PROBLEM: Trump's 'megabill' has finally cleared Congress, and that means clean energy advocates can start waving goodbye to federal incentives for electric vehicles, solar panels, wind projects and more. Republicans' budget package — which Trump plans to sign Friday — rolls back large swathes of former President Joe Biden's Inflation Reduction Act, the 2022 law aimed at stimulating domestic clean energy markets. The new law will eliminate a $7,500 tax credit for EV buyers that automakers had lobbied to protect. (The notable exception being Toyota, which has focused on its hybrid technology.) It will also phase out tax incentives for residential solar and battery storage projects, meaning home energy efficiency upgrades will get more expensive. Large wind and solar projects are also in a bind. Utility-scale projects can still qualify for tax credits under language negotiated by Senate Republicans, but they'd have to be operational by the end of 2027, a timeline that would leave many projects out in the cold. But hard-line House conservatives said Thursday they'd received assurances from Trump that he would further constrict the incentives. It's now up to California to pick up the slack. Newsom said last year that he wants to fund EV tax credits with cap-and-trade revenues if federal incentives disappear, but hasn't committed to that proposal as negotiations over extending the emissions trading program heat up. — AN GLIMMER OF HOPE: California officials got some good news on the EV front Thursday as Trump's Department of Justice declined to immediately appeal an injunction that will restart the flow of federal charging infrastructure to states, David Ferris reports for POLITICO's E&E News. The fight over the $2.7 billion that states are expecting through the National Electric Vehicle Infrastructure program isn't over. The Federal Highway Administration, which administers the program, said in a statement that it 'still can appeal the preliminary injunction and is currently coordinating its legal strategy with the Department of Justice.' But the fact it hasn't already means it missed a seven-day appeal window to stop the program from restarting. Judge Tana Lin ordered the administration last week to restore funding to 14 states that had sued. FHWA froze the program in February, saying that funding would be withheld until it created new rules to replace Biden's. Those rules have still not been published. California is still earmarked to receive $352 million in NEVI funds. While that figure is small compared to in-state and private resources, the program incentivizes building in less profitable rural areas that charger operators say are more difficult to finance. — AN CLEAN IT UP: Trump's EPA will have to issue a decision by next July on a plan to clean up Central Valley smog under a tentative legal settlement. 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28-06-2025
California energy regulator recommends pause on plan to penalize excess oil profits
SACRAMENTO, Calif. -- California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___
San Francisco Chronicle
28-06-2025
- San Francisco Chronicle
California energy regulator recommends pause on plan to penalize excess oil profits
SACRAMENTO, Calif. (AP) — California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. ___
