WEEKEND NEWS CODEX

Some energy links for weekend reading.

• An Introduction to Carbon Pricing: "For many carbon pricing advocates, the use of revenue raised by the pricing mechanism is of secondary concern to the price itself, though the use of revenue is also very important. Broadly speaking, there are two main options. The first is for activities related to greenhouse gas mitigation, such as clean energy research, development, and deployment. Most proceeds from California’s cap and trade program, for instance, to go the Greenhouse Gas Reduction Fund, which in turn funds various emissions reduction programs. According to the California Legislative Analyst Office, the largest outlay of funds from the Greenhouse Gas Reduction Fund from 2013 (when it started) to 2023 (the date of the cited source) has been for the high speed rail, which is statutorily required to receive at least 25% of the funds. Now that is a whole other blog post. The other option is some kind of revenue recycling." Michael Goff
• California Slashes Energy Agency Budgets Due to Deficit: "Environmental protection expenditures for CARB shrank from $2.5 billion in 2023-2024 to $1.4 billion in 2024-2025 to the new budget’s $956 million. Similar cuts were made to State Water Resources Control Board allocations—to $1.9 billion in the current budget from $2.7 billion in 2023-2024. 'Efficiency reductions' in state operations and vacancies are listed at $25.4 million for CARB and $12 million for the California Energy Commission. The CEC’s budget includes $1.4 billion from special funds and federal funds, again down significantly from CEC’s estimated prior-year expenditure level of $2.8 billion. This was largely due to the expiration of one-time funding, the [Legislative Analyst's Office] said." California Energy Markets
• CPUC Approves Agreement Between PG&E, STACK to Facilitate New Data Center: "Under the agreements, STACK will design, procure and construct a new switching station that is needed to support the large load associated with the planned data center. Once completed, STACK will transfer ownership of the Ringwood Switching Station to PG&E. The switching station is anticipated to be operational by April 2026. STACK will pay the upfront costs associated with connecting to the grid, but those costs could later be refunded once the data center generates sufficient revenues. The estimated cost for the switching-station project is $85.9 million." California Energy Markets
• Discerning What Drives Rate Increases is More Complex Than Shown in LBLN Study: "The renewables policy team at Lawrence Berkeley National Laboratory released a study maintaining that it identifies the primary drivers of rate increases in the U.S. LBNL also issued a set of slides summarizing the study but there discrepancies between the two. (This post focuses on the study.) First, this group of authors have been important leaders in tracking technology costs and resource alternatives at a micro level. You can find many of their studies cited in my various posts on renewables and distributed energy resources. This time the authors may have stretched a bit too far. Unfortunately this study is much more about correlation than causality." Economics Outside the Cube
• Edison International Trims Capex Forecast After Rate Case: "Executives of Edison International Inc., the parent company of Southern California Edison, have lowered the top end of their four-year capital spending plan forecast by $3 billion while lifting the floor of the rate base growth range they expect. The capex update from President and CEO Pedro Pizarro and CFO Maria Rigatti came shortly after California regulators approved Edison International’s latest general rate case and alongside third-quarter results, which showed a net profit of $888 million, up from $577 million in the same period of last year, on operating revenues of more than $5.7 billion. Edison’s leaders now expect they’ll spend between $28 billion and $29 billion from this year through 2028 versus their previous guidance of $27 billion to $32 billion. The revised plan trims the company’s projected spending growth each year of the plan, including a $700 million drop this year to $6.8 billion." Transmission & Distribution World
• ExxonMobil Challenges California Climate Reporting Laws on Speech Grounds: "ExxonMobil is challenging California’s greenhouse gas emissions reporting laws as a violation of the company’s right to free speech. The company is asking the court to block implementation of SB 253 and SB 261, scheduled to take effect in 2026. Exxon filed the lawsuit in the U.S. District Court for the Eastern District of California on October 24, 2025." California Energy Journal
• Making Energy Emissions More Transparent – CAISO's Accounting and Reporting Approach: "When you flip on a light switch, you likely don’t think about where the electricity comes from—or its climate impact. But for many states and organizations, including utilities, independent power producers, and balancing authorities, tracking greenhouse gas emissions is essential. To improve transparency around emissions from market dispatch, stakeholders have proposed the Accounting and Reporting approach. This framework helps load-serving entities and other organizations better understand the GHG emissions associated with their electricity consumption, especially under state policies that regulate emissions outside of cap-and-trade systems. The new method also supports voluntary reporting and corporate climate goals." CAISO
• Natural Gas Weekly Update: "The price at PG&E Citygate in Northern California rose 20 cents, up from $3.59/MMBtu last Wednesday to $3.79/MMBtu yesterday. The PG&E Citygate price was the highest among major pricing hubs nationwide this report week. Temperatures in the Sacramento Area fell 2°F this report week to 61°F, leading to 26 HDDs, 10 HDDs more than last week. The price at SoCal Citygate in Southern California increased 45 cents from $3.20/MMBtu last Wednesday to $3.65/MMBtu yesterday. In California, residential sector natural gas consumption rose 6% (0.1 billion cubic feet per day [Bcf/d]) from last week, according to LSEG Data." EIA
• Report Says California Energy Policies a "Clear and Present Threat to National Security"; Calls for Federal Intervention: "The report outlines policy options 'to mitigate the actions of California and protect the security interests of the U.S. as related to California as related to petroleum and refinery assets.' These include the president declaring 'California oil production pipelines, terminals, ports, refineries, and all related infrastructure as essential assets…' under the Defense Protection Act. The president could also provide temporary relief to California producers, operators, and refiners under the national Emergencies Act. Lastly, the report states that the president 'may have constitutional powers for protecting California gasoline production and other petroleum assets, potentially through operation of the Supremacy Clause of the U.S. Constitution.'" California Energy Journal
• Santa Barbara County Votes to Shut Down Onshore Oil Operations: "The Santa Barbara County Board of Supervisors voted on October 21, 2025 to proceed with its plan to shut down the local oil industry. The county supervisors voted 3-2 to end the issuance of any new well permits for onshore oil operations in the county and to begin the process for an amortization study to determine an appropriate period to phase out existing oil and gas facilities and operations. The votes comes after the supervisors voted in May 2025 to develop a framework to end oil operations in the county." California Energy Journal
• The Fast Lane to Electric Vehicle Charging: "Why is it so flipping hard to build an EV charging station? Frustrated developers point to coordination complexity and permitting paralysis as the primary culprits. California has been a particularly challenging landscape to navigate. Back in 2021, Electrify America estimated that it was taking 26% longer to permit a DC fast charging station in California (as compared to the rest of the country) and 47% longer to connect to the grid." Energy at Haas
• Viewpoint – California Must Consider Emissions from Foreign Oil: "The recently passed SB 237 streamlines the approval process for oil drilling in Kern County in an effort to increase oil production and help stabilize California’s gasoline and oil markets. The law originated as part of a series of California Energy Commission recommendations in response to plans to close two refineries and fears of a gasoline shortfall. The recommendation to increase oil drilling in Kern received almost immediate opposition from environmental groups concerned about preserving 'California’s life-saving health, climate, and environmental protections.' They argued that the law’s exemptions from the California Environmental Quality Act 'would gravely harm the air we breathe and water we drink around the state, but have no impact on refinery closures or gas prices.'" California Energy Journal