17 Dec 2025 6 min read biomass

MID-WEEK NEWS CODEX: Heat Pumps; Hydrogen for Data Centers; Denial of Sable Permit Transfers

Biomass is a Money Pit That Won't Solve California's Energy or Wildfire Problems: "In a vote later this month, the California Public Utilities Commission is expected to end the BioMAT subsidy program, which requires electric utilities to buy biomass power at exorbitant costs — four times the average. Californians get hit with those extra costs in our power bills, along with pollution that harms our health and climate." CAL MATTERS (CRI Editorial Note – the CPUC has delayed action on this item until January 15)
California's Last Nuclear Power Plant Will Remain Open – For Now: "To outside observers across the country, the Diablo Canyon deal may look strange: How can a state agency extort money and land as a condition for approving a permit? Why is the future of California’s nuclear power—10% of energy in America’s most populous state, serving 40 million people—in the hands of 12 coastal bureaucrats?" PACIFIC LEGAL FOUNDATION
California's Plan to Boost Plug-In Heat Pumps and Induction Stoves: "...late last month, the California Public Utilities Commission signed off on a plan to spend $115 million over the next six years to develop and drive demand for the fossil-fuel-free equipment — a first-of-its-kind investment for the state. These appliances, which plug into standard 120-volt wall outlets, don’t need professional installers or the expensive electrical upgrades sometimes required for conventional whole-home heat pumps or 240-volt induction stoves. That ease of installation makes them crucial tools in California’s quest to decarbonize its economy by 2045." CANARY MEDIA (See CRI's coverage of this matter here.)
California Proposes a Road Usage Tax: "In 2017, California raised its state gas tax supposedly to maintain the state’s roads, despite a state budget of $179.5 billion. California has the highest gas tax in the country at 71 cents per gallon. But as more people switch to EVs, the gas tax will cover less of the state’s road costs. Despite California’s budget increasing to $325 billion, the state needs an additional tax to build and maintain its roads." INSTITUTE for ENERGY RESEARCH
California Winery Powers 100% of its Operations with Floating Solar Array: "California winery Nelson Family Vineyards is now powering 100% of its operations with electricity after Noria Energy has installed onsite solar arrays. The 74-year-old, 1,800-acre family farm is now fully powered by clean energy, and with no agricultural land taken out of production. Adding to an existing rooftop solar array’s production, Noria Energy installed a floating solar array on an irrigation pond. Together, the two solar projects are expected to generate about 200,000 kWh of electricity per year, powering the winery, agricultural pumps, tasting room, shop, and 12 on-site homes." PV MAGAZINE
Development Deal Will Provide Hydrogen for California Data Centers: "Vema Hydrogen, developer of a sustainable hydrogen production technology, said it has entered a hydrogen purchase and sale agreement with Verne, a provider of on-site power and cooling solutions. Verne will leverage Vema’s clean energy, known as Engineered Mineral Hydrogen, to provide low-emission power for its data center customers. The companies on December 16 said operations could begin as soon as 2028." POWER
Federal Watchdog Will Investigate Energy Department Over Selective Blue State Grant Cancellations: "The cancellation, in October, included more than 300 awards in 16 states that did not vote for Trump in the 2024 presidential election. Among them were 79 canceled grants for California — more than any other state on the list — totaling $2.1 billion, as well as $1.2 billion in future funding expected for the state’s hydrogen hub, the Alliance for Renewable Clean Hydrogen Energy Systems, or ARCHES." LA TIMES
K2 Pure Solutions Breaks Ground on Commercial Low-Carbon Hydrogen Facility in Pittsburg, California: "Scheduled for commissioning in early summer 2026, the project will expand K2’s existing chlor-alkali operations into California’s first commercial source of low-carbon, high pressure hydrogen produced from a proven industrial site serving municipal and industrial customers." THE AI JOURNAL
New York and California Reach the Energy Abyss: "For California, the most pressing energy problem is refining capacity. Just last week, Phillips 66 and Valero confirmed that they would be closing a refinery in California, thereby taking away 17% of the Golden State’s current refining capacity. Meanwhile, due to its environmental policies, California does not allow the use of normal gasoline for its internal combustion vehicles. It requires a special mix of fuels, often called California Reformulated Gasoline. This is part of what causes gas prices to exceed $6.00/gallon in California, and it means that California cannot simply import gasoline from neighboring states to make up the shortfall resulting from the closing refineries." FORBES
Port of Long Beach Launches Hydrogen Fuel Grant Program: "Through the program, the Port is making up to $10 million available to eligible fleet operators to assist with the cost of hydrogen fuel. If all the funds are used, the program will result in at least 3.7 million zero-emissions miles for drayage services. Funding for the initiative is drawn from the Clean Truck Fund Rate program, which was founded in 2022 to pay for incentives for zero-emissions trucks and the infrastructure needed to charge and fuel them." FUEL CELLS WORKS
Santa Barbara County Denies Sable Permit Transfers: "The Santa Barbara County Board of Supervisors voted to deny the transfer of operating permits for offshore facilities from ExxonMobil to Sable Offshore Corp. The Supervisors voted 3-1 on December 15, following a preliminary decision in November. The permits covered the Santa Ynez Unit, a gas plant, and the Las Flores Pipelines. The transfer of permits was a key step in restarting the Santa Ynez Unit, which has been shut since the 2015 Refugio oil spill." CALIFORNIA ENERGY JOURNAL
Storage For All Seasons – Why the Grid Needs More Than Four Hours: " California’s integrated resource planning and procurement proceeding suggests a buildout that would keep the system on track for decarbonization would include almost no additional four-hour duration resources after 2028, but huge amounts of eight-hour duration storage, and in the near future, 12-hour duration storage. Specifically, California is calling for more than ten GW of eight hour duration energy storage capacity on the system by 2031 and more than five GW of 12-hour duration storage on the system by 2036." UTILITY DIVE
This Week, the California Energy Commission is Expected to Decide the Future of the Fountain Wind Project: "In attempts to secure permission to build Fountain Wind, Repsol and its predecessor company have already been dealt significant blows, including two project denials by the county. In 2022, a California law made it possible for a state agency, the California Energy Commission, to reexamine whether to approve the project. A final decision on the project is expected to be made by the commission this Friday, December 19. According to the meeting agenda, the commission is likely to deny Repsol the required certification to build, assuming commissioners follow the executive director’s recommendation." SHASTA SCOUT
US Energy Storage Installations Through Q3 2025 Surpass 2024 Totals: "The utility-scale storage segment drove growth with 4.6 GW installed in Q3, a 27% increase year-over-year, with 82% of installed capacity concentrated in Texas and California." WOOD MACKENZIE
US Oil Industry Doesn't See Profit in Trump's "Pro-Petroleum" Moves: "On the West Coast, California Gov. Gavin Newsom and California Attorney General Rob Bonta have made forceful statements against any new California offshore oil drilling. They have said any effort is economically unnecessary, environmentally reckless and 'dead on arrival' politically in the state. California local governments, environmental groups, business alliances and coastal communities also oppose drilling and have vowed to use legal and political tools to block them." THE CONVERSATION
With Bidirectional EVs, Solar and Storage, Critical California Bridge Can Stay Open During Outages: "The San Francisco-Oakland Bay Bridge–which connects San Francisco to Oakland–is a critical escape route during disasters, but if the grid goes down, it has to close. Without electricity, the California Department of Transportation can’t communicate with crews or monitor operations. In a $5.3 million project that received a $3 million grant from the California Energy Commission and $2.3 million in matching funds, a microgrid consisting of 51 kW of solar, a 60-KWh battery plus two heavy-duty bidirectional electric vehicles will keep the bridge open during outages." MICROGRID KNOWLEDGE
Why Fast-Tracking Transmission is Permitting Reform's Biggest Hurdle: "As the Senate gears up to take on permitting reform next year, a big question hangs over the push: Will they try to fix the slow pace of building long-haul transmission lines?" LATITUDE MEDIA

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