California Touts Clean Energy Amid Push for Offshore Drilling

---

Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

---

Summary

California's governor criticized the Trump administration for abandoning U.N.-backed climate initiatives. That follows early proposals for drilling off the state's coast.

---

California Takes up Clean Mantle

With the Trump administration pressing for more drilling in the Pacific, California's governor said Tuesday that his state can be a beacon for a cleaner climate.

Governor Gavin Newsom, no friend to U.S. President Donald Trump, blasted the administration for decisions to back out of the Paris climate deal and other U.N.-backed climate initiatives, saying Trump continues to forfeit the reins of global leadership.

"As climate disasters cost Americans trillions, Trump's answer is to wave the white flag," the governor said. "California won't retreat. We'll keep working with our partners around the world to cut pollution, create jobs, and lead the clean energy economy that the Trump administration is too weak to fight for."

California in 2017 helped found the U.S. Climate Alliance, a coalition of 24 state governors committed to following the initiatives outlined in the Paris accord. California's environment is among the cleanest. It ranks second, behind Georgia, in terms of states that draw on the decomposition of organic matter to yield methane for utility-scale electricity production.

Data from Industrial Info finds 15 renewable energy projects in the construction phase in California with a total investment value of $5.1 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can see a full list of project reports.

California state laws, meanwhile, mandate that refiners make a special blend of gasoline that's less harmful to the environment, but it's more expensive to make, leading to the highest retail average price for a gallon of regular unleaded in the Lower 48 states.

In 2024, Newsom signed legislation, AGX201, that mandated refiners in the state maintain fuel storage levels that would be enough to stave off any supply-side issues that would lead to price spikes at the consumer level. That later prompted some refiners to point to prohibitive market dynamics that would lead to refinery closures.

Amid higher retail gasoline prices, Valero (San Antonio, Texas) announced plans to idle its refinery in Benicia, while continuing to supply the California market with imports. Its peers Kinder Morgan (Houston, Texas) and Phillips 66 (Houston) were already looking to midstream and other developments to ensure the state's market is well supplied.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Plant and Project databases can learn more about related activity--including capacities, necessary equipment and closure schedules--from plant profiles for the Benicia Refinery, Benicia Asphalt Refinery and a detailed project report for the Benicia closure.

Trump Backs Drilling Offshore California

On Monday, the federal Bureau of Ocean Energy Management said it opened a 30-day comment period for a potential lease sale for drilling rights off the coast of California. The agency said the input would guide future decisions that would support U.S. energy security concerns, the reliance on foreign supplies "all while maintaining our commitment to responsible environmental stewardship."

In announcing the public vetting period, the federal government said the move did not mean it was sanctioning an offshore lease. Environmental concerns led to a permanent moratorium for offshore drilling in 1994, and there have been no new leases since then. Newsom aims to continue that.

"We'll use every legal tool available to stop Donald Trump's offshore drilling plan," the California governor added.

Members of the California assembly are opposed as well. Recently introduced legislation was meant to block offshore activity in response to a federal court order that would allow Sable Offshore (Houston) to resume work off the coast of Santa Barbara. The federal government said an executive order issued by Trump early in 2025 muted state authority.

Dubbed the Santa Ynez Unit, Sable Offshore had worked at three platforms off the coast of California, though all are listed as idled in IIR's database.

By the Numbers

• 2017 saw the creation of a state-backed climate initiative
• 30-day comment period for offshore drilling

Key Takeaways

• Newsom irked by lack of U.S. climate leadership.
• The state is pushing back against offshore drilling proposals.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).

---