California v. Wright

California AG sues the U.S. Department of Energy, challenging Secretary Chris Wright’s “Pipeline Capacity Prioritization and Allocation Order” and seeking to halt its use as the basis for Sable Offshore Corp.’s (Sable) unlawful restart of two California onshore oil pipelines that are subject to State regulation and oversight, illegally superseding state law, state court orders, and a federal court-approved Consent Decree.

On March 23, 2026, California Attorney General Rob Bonta filed a lawsuit against the Trump administration challenging the U.S. Department of Energy Secretary Chris Wright’s “Pipeline Capacity Prioritization and Allocation Order” (Order) and seeking to halt its use as the basis for the unlawful restart of two California onshore oil pipelines that are subject to state regulation and oversight. The Order, issued under the Defense Production Act (DPA), directs pipeline operators to resume oil transport through pipelines known as CA-324 and CA-325, or the Las Flores Pipelines, operated by Sable Offshore Corporation (Sable).

California argued that Secretary Wright had no authority under DPA to excuse Sable from compliance with state and federal laws, state court orders, and a federal court-approved Consent Decree that governs the safe operation of these pipelines. The Consent Decree, which both state and federal agencies entered in 2020, addressed violations related to the Refugio Oil Spill, the worst California coastal oil spill in 25 years. The Sable Offshore pipeline system linked the Santa Ynez offshore platform to California refineries, but that platform was shut down in 2015 due to a spill that dumped more than 100,000 gallons of crude oil into the Pacific Ocean and onto beaches near Santa Barbara. The Consent Decree required the state fire marshal to inspect and approve the pipeline before Sable resumed operations. At the Department of Energy’s request, Sable restarted use of the pipeline without approval of the fire marshal, in violation of those provisions of the Consent Decree. 

The suit against the Department of Energy is Attorney General Bonta’s second lawsuit against the Trump administration over its unlawful efforts to restart the Sable pipelines. In January, Attorney General Bonta filed a lawsuit challenging the Pipeline and Hazardous Materials Safety Administration’s orders that unlawfully purported to assert exclusive federal jurisdiction over the onshore Las Flores Pipelines by reclassifying them as “interstate,” issuing a restart approval for Sable, and providing Sable an emergency permit waiving regulatory compliance in order for Sable to restart oil transportation through the pipelines. That lawsuit remains ongoing. 

In this latest lawsuit, California asks the court to declare the Order unconstitutional and a violation of the Administrative Procedure Act and to prohibit the federal government from authorizing the operation of the Santa Ynez Unit and the pipelines without having received necessary state-law approvals and without satisfying the terms of court orders.  

On March 30, 2026, California voluntarily dismissed the case without prejudice.  

The fossil fuel industry says ‘Jump,’ and the Trump Administration asks, ‘How high?’. The Trump Administration and its oil industry buddies are once again violating the law and trampling on our state’s rights in pursuit of corporate profits. California has seen first-hand the devastating environmental and public health impacts of these pipelines rupturing, and there are court-ordered legal requirements in place to ensure that it doesn’t happen again. But instead of following the law, the Trump Administration and an increasingly desperate Sable are attempting to ride roughshod over state authority and judicial independence — all so that Sable can profit. Protecting California’s rights, coastlines, and communities is our guiding light. We won’t let this outrageous federal overreach go without a fight.Attorney General Rob Bonta

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