Last Updated: March 17, 2022

Overview

California is the most populous state in the nation and has the largest economy in the United States and the fifth-largest economy in the world.^1,2,3 Rich in energy resources, California is second only to Texas in the combined total electricity generation from all renewable resources and leads the nation in generation from solar, geothermal, and biomass energy.⁴ California also has fossil energy resources, including an abundant supply of crude oil, and it has one-tenth of the U.S. crude oil refining capacity.^5,6 The state is second only to Texas in total energy consumption. California implements many efforts to increase energy efficiency and alternative technologies to help slow growth in energy demand. In part because of these efforts, and despite its many energy-intensive industries, the state has one of the lowest per capita energy consumption levels in the United States.^7,8,9

California is the third-largest state by land area and stretches two-thirds of the way up the U.S. West Coast. At its greatest distances, it is more than 1,000 miles long and 500 miles wide.¹⁰ With such great distances to travel, transportation accounts for the largest share of the state's energy consumption.¹¹ California has the most registered motor vehicles and the most vehicle miles traveled of any state. Its travel to work times are among the nation's longest.^12,13,14 California also consumes more than one-seventh of the jet fuel used in the nation.¹⁵ Overall, the transportation sector accounts for two-fifths of the state's total end-use sector energy consumption. The industrial sector is the second-largest energy consumer in California and accounts for almost one-fourth of state end-use energy consumption. The commercial sector and the residential sector each account for slightly less than one-fifth of the state's total end-use sector energy consumption.¹⁶ However, per capita energy consumption in both the residential sector and commercial sector is lower than that of any state except Hawaii.¹⁷ Although the state has a varied climate, most of California's more densely populated areas are dry and relatively mild for much of the year.^18,19 Less than half of state households use air conditioning, and about one in seven do not use space heating.²⁰

Electricity

California is the fourth-largest electricity producer in the nation and accounted for about 5% of U.S. utility-scale (1-megawatt and larger) electricity net generation in 2021.²¹ Renewable resources, including hydropower and small-scale (less than 1-megawatt), customer-sited solar photovoltaic (PV) systems, supplied nearly half of California's total in-state electricity generation despite a decline in hydroelectric generation caused by drought.²² Natural gas-fired power plants provided more than two-fifths of the state's total net generation and about half of California's utility-scale generation. Nuclear power's share of in-state generation was less than one-tenth, down from nearly one-fifth in 2011. The decrease resulted from the shutdown of the San Onofre nuclear power plant in January 2012, which left the state with only one operating commercial nuclear power plant—the two-reactor Diablo Canyon facility.^23,24,25

California has the nation's second-largest conventional hydroelectric generating capacity after the state of Washington, and the state is consistently among the nation's top four hydropower producers.^26,27 However, hydropower's contribution is highly variable and is dependent on rain and snowfall. Although California is prone to drought, 2021 was the driest year in nearly a century, and in-state hydroelectric power supplied only about 7% of California's utility-scale net generation, down from nearly 21% in 2017.^28,29 However, nonhydroelectric renewable generation, especially solar and wind energy, offset declines in the state's hydroelectric and nuclear generation. In 2021, nonhydroelectric renewable resources provided 34% of the state's utility-scale net generation. With small-scale solar PV included, they supplied 40% of California's total in-state electricity generation. Coal fuels only a small amount of California's in-state net generation, and all of it is from one industrial cogeneration plant. In 2021, coal accounted for less than 0.2% of the state's utility-scale net generation.^30,31

California's in-state utility-scale electricity generation equaled about four-fifths of the state's electricity retail sales in 2021, and the rest of its supply came from out of state.³² California imports more electricity than any other state and typically receives between one-fifth and one-third of its electricity supply from outside of the state.³³ Wildfires in California and surrounding states threaten both imports of electricity and transmission within the state.³⁴ In 2020, wind energy and hydropower facilities each supplied about one-fifth of California's imported electricity. Other, unspecified sources supplied nearly one-fifth of imports. Nuclear energy and natural gas each accounted for more than one-tenth, and coal fueled less than one-tenth. Other renewable resources accounted for most of the rest. Although coal-fired power plants supplied about 9% of imports, coal's total contribution to the state's electricity supply from imports and in-state generation in 2020 was less than 3%.³⁵ A state law enacted in 2006 requires California utilities to limit new long-term financial investments in baseload generation to power plants that meet California emissions performance standards, and essentially all imports of coal-fired generation are projected to end by 2026.³⁶

In 2021, California had the second-highest electricity retail sales in the nation, after Texas, and it is typically among the nation's lowest in retail sales per capita.^37,38 In 2021, California had the nation's third-highest average price of electricity, after Hawaii and Alaska.³⁹ The commercial sector accounted for more than two-fifths of California's electricity retail sales. The residential sector, where more than one-fourth of California households use electricity for home heating, accounted for almost two-fifths of sales.⁴⁰ About one-fifth of the state's electricity retail sales went to the industrial sector. The railroads, subways, buses, and iconic cable cars in California's transportation sector accounted for less than 0.3% of electricity retail sales.

California has about three-tenths of the nation's public electric vehicle charging stations and is part of the West Coast Green Highway, an extensive network of electric vehicle DC fast charging stations located along Interstate 5.^41,42,43 By the end of September 2021, California drivers owned about 931,000 electric vehicles (including all-electric vehicles and plug-in hybrid vehicles), more than two-fifths of the nation's total, and the state had the second-highest ratio of electric vehicles to charging ports, after New Jersey.⁴⁴ California provides incentives to increase the use of zero-emission vehicles. As of December 31, 2020, California had more than 425,000 registered all-electric vehicles, the most of any state.⁴⁵ California regulations require 100% zero-emission bus (ZEB) fleets by 2040. Beginning in 2029, all transit agency new bus purchases must be ZEBs.⁴⁶

Renewable energy

In 2021, California was second in the nation, after Texas, in total electricity generation from renewable resources, including generation from small-scale solar PV generation.⁴⁷ California is the nation's top producer of electricity from solar, geothermal, and biomass resources. The state is also the nation's fourth-largest producer of electricity from conventional hydroelectric power—after Washington, Oregon, and New York—and is sixth-largest from wind energy.⁴⁸

California's greatest solar resources are in the state's southeastern deserts where all of its solar thermal facilities and most of its largest solar PV plants are located. However, there are solar PV facilities throughout the state.^49,50 In 2021, solar energy supplied 17% of the state's utility-scale electricity net generation.⁵¹ When small-scale solar generation is included, solar energy provided 25% of the state's total electricity net generation. In 2021, California produced 32% of the nation's total solar PV electricity generation and 69% of the nation's utility-scale solar thermal electricity generation.⁵² By December 2021, California had almost 15,500 megawatts of utility-scale solar power capacity, more than any other state. When small-scale facilities are included, the state had almost 28,000 megawatts of total solar capacity.⁵³

California is the top producer of electricity from geothermal resources.⁵⁴ In 2021, the state produced about 70% of the nation's utility-scale geothermal-sourced electricity, and geothermal power accounted for almost 6% of California's utility-scale generation.⁵⁵ The state's operating geothermal power plants have a combined total capacity of 1,850 megawatts.⁵⁶ Four areas of California have substantial geothermal resources—the coastal mountain ranges north of San Francisco, volcanic areas of north-central California, areas near the Salton Sea in southern California, and areas along the state's eastern border with Nevada. The Geysers, located in the Mayacamas Mountains north of San Francisco, is the largest complex of geothermal power plants in the world and has about 725 megawatts of installed capacity.^57,58 Lithium, an element used in batteries, is present in geothermal brines. A state commission is investigating opportunities for lithium recovery from superheated geothermal brines in the Salton Sea Known Geothermal Resource Area in southern California.⁵⁹ The state also has the only rare earth mineral mine in North America. The Mountain Pass mine in southern California's Mojave Desert is the largest deposit of rare earth minerals in the nation. Rare earth metals are used in the manufacture of electric vehicles, wind turbines, and batteries, among other applications.⁶⁰ In 2020, the Mountain Pass mine produced more than 38,500 metric tons of rare earth concentrate, the largest amount in the mine's history and more than 15% of global consumption. The concentrate went to Asia for final processing, but the mine owners plan to complete processing facilities at the Mountain Pass site in 2022.⁶¹

California leads the nation in utility-scale electricity generation from biomass.⁶² In 2021, biomass fueled about 3% of the state's net generation, mostly from wood and wood-derived fuels.⁶³ Nearly three-fifths of the state's utility-scale biomass generating capacity is at 30 power plants fueled by wood and wood waste. Landfill gas, municipal solid waste, and other biomass sources fuel 76 other biomass power plants.⁶⁴ California also has two wood pellet manufacturing facilities. Those plants can produce nearly 140,000 tons of pellets per year. Wood pellets are used for heating, but can also be used for electricity generation.⁶⁵ More than 180,000 California households use wood as their primary fuel for space heating.⁶⁶

In 2021, wind accounted for 8% of California's in-state electricity generation, and the state ranked sixth in the nation behind Texas, Iowa, Oklahoma, Kansas and Illinois in wind-powered generation.^67,68 California wind power potential exists at several areas around the state, both onshore and offshore.⁶⁹ However, the majority of the state's wind turbines are in six major wind resource areas: Altamont, East San Diego County, Pacheco, Solano, San Gorgonio, and Tehachapi.⁷⁰ As of December 2021, California had almost 6,300 megawatts of wind capacity.⁷¹

California consumes one-tenth of the nation's fuel ethanol supply, which is about seven times more than the state's five fuel ethanol plants produce.^72,73,74 Midwestern states provide most of the additional fuel ethanol California uses.⁷⁵ California also can produce a combined total of about 81 million gallons of biodiesel annually from 8 production plants, which is less than half the amount of biodiesel consumed in the state each year.^76,77 Several California refineries are adding renewable diesel, derived from biomass, manufacturing capacity. The state accounts for almost all of the renewable diesel consumed in the United States, largely because of the state's Low Carbon Fuel Standard economic incentives.^78,79

California's renewable portfolio standard (RPS), enacted in 2002 and revised several times since then, required that 33% of electricity retail sales in California come from eligible renewable resources by 2020. The state met that goal three years before the target date.⁸⁰ The RPS also requires that 60% of electricity retail sales come from renewables by 2030, and 100% by 2045.⁸¹ By 2020, qualifying renewables generated an estimated 36% of the state's electricity retail sales.^82,83 The state requires that electricity retail suppliers disclose the fuel sources used to generate the power they supply as well as the greenhouse gas emissions intensity of those sources.⁸⁴ California also has an energy-efficiency resource standard and includes cost-effective energy-efficiency as a resource that can be used to meet the state's clean energy targets.⁸⁵

Petroleum

California has about 4% of the nation's total crude oil reserves, and it is the seventh-largest crude oil producer among the states.^86,87 Reservoirs along California's Pacific Coast, including in the Los Angeles basin, and those in the state's Central Valley contain major crude oil reserves. The most prolific crude oil-producing area in the state is the San Joaquin basin in the southern half of California's Central Valley.^88,89 Although California's crude oil production declined steadily since 1985, the state produced almost 131 million barrels of crude oil in 2021.⁹⁰

Assessments of California's offshore areas indicate the potential for large, undiscovered recoverable crude oil resources in the federally administered Outer Continental Shelf (OCS).⁹¹ Concerns about the risks of offshore crude oil and natural gas development after the 1969 Santa Barbara oil spill resulted in a permanent moratorium on offshore oil and natural gas leasing in state waters.⁹² Congress imposed a federal moratorium on oil and natural gas leasing in California federal waters in 1982. The federal moratorium expired in 2008.⁹³ However, no California offshore federal lease sales have occurred since then and President Biden signed an executive order in January 2021 that suspends new oil and natural gas leasing on federal public lands and offshore waters.^94,95 There are 22 older crude oil and natural gas production platforms that remain active in federal waters and 11 in state waters off the coast of California.^96,97

California has about one-tenth of the nation's total crude oil refining capacity and ranks third after Texas and Louisiana.⁹⁸ A network of pipelines connects California crude oil production to the state's 14 operable refineries, which are located primarily in the Los Angeles area, the San Francisco Bay area, and the San Joaquin Valley.^99,100 California refiners also process large volumes of foreign and Alaskan crude oil. As crude oil production in California and Alaska declined, the state's refineries increased their supply from foreign imports.^101,102 Led by Ecuador, Saudi Arabia, Iraq, and Colombia, foreign suppliers provided almost half of the crude oil refined in California in 2020.^103,104

California requires that all motorists use, at a minimum, a specific blend of motor gasoline called CaRFG (California Reformulated Gasoline) as part of an overall program to reduce emissions from motor vehicles. California refineries produce cleaner fuels in order to meet state environmental regulations.¹⁰⁵ Refineries in the state often operate at or near maximum capacity because of the high demand for those petroleum products and the lack of interstate pipelines that can deliver them into the state. When unplanned refinery outages occur, the lack of CaRFG deliveries available by interstate pipelines means replacement supplies of CaRFG come in by marine tanker from out-of-state U.S. refineries or from other countries. It can take several weeks to find and bring replacement motor gasoline from overseas that meets California's unique specifications.¹⁰⁶

California is the nation's second-largest consumer of refined petroleum products, after Texas, and accounts for about 9% of U.S. total consumption.¹⁰⁷ In 2020, California was the nation's largest consumer of jet fuel and the second-largest consumer of motor gasoline, after Texas.^108,109 The transportation sector uses about 85% of the petroleum consumed in the state. The industrial sector accounts for about 12% of state petroleum use. The commercial sector consumes about 2%, and the residential sector uses less than 1%.¹¹⁰ Only about 1 in 30 California households heat with petroleum products, and most of those use hydrocarbon gas liquids (HGL) such as propane.¹¹¹

Natural gas

California accounts for less than 1% of total U.S. natural gas reserves and production, and the state's natural gas output has declined steadily since 1985.^112,113,114 California's natural gas production is less than one-tenth of the state's total end-use sector consumption.^115,116 Most of the state's reserves and production are in natural gas fields in the northern Central Valley.¹¹⁷ Several interstate natural gas pipelines enter California from Arizona, Nevada, and Oregon. They bring natural gas into California from the Southwest, the Rocky Mountain region, and western Canada.¹¹⁸ Some natural gas is exported to Mexico, and a much smaller amount is received from there. California consumes about nine-tenths of the natural gas delivered to the state.¹¹⁹ California has 14 underground natural gas storage reservoirs in 12 storage fields.¹²⁰ Together those fields have a natural gas storage capacity of about 600 billion cubic feet.¹²¹ Between October 2015 and February 2016, a natural gas leak at the Aliso Canyon natural gas storage facility in Los Angeles County released almost 6 billion cubic feet of methane into the atmosphere.¹²² As a result of the incident, the state created new safety regulations for natural gas storage facilities.¹²³ The California Public Utility Commission is examining the feasibility of reducing or eliminating the use of Aliso Canyon while maintaining energy and electric reliability in the Los Angeles region.¹²⁴

California is the nation's second-largest natural gas consumer, only Texas uses more.¹²⁵ In 2020, about 34% of the natural gas delivered to California consumers went to the state's industrial sector, and about 30% went to the electric power sector, where it fuels about half of the state's utility-scale electricity generation.^126,127 The residential sector, where two-thirds of California households use natural gas for home heating, accounted for 23% of natural gas use, and the commercial sector used about 12%. The transportation sector uses compressed natural gas vehicle fuel, and it consumed the remaining 1%.^128,129

Coal

California does not have any coal reserves or production and phased out almost all of its coal-fired electricity generation.^130,131 In 2021, coal fueled less than 0.2% of the in-state utility-scale net generation, and all of it from one industrial facility in Trona, California.¹³² Most of the coal consumed in California arrives by rail from mines in Utah, Colorado, and Pennsylvania.¹³³ Coal produced in other states is shipped through California ports to other countries.¹³⁴

Energy on tribal lands

California has the largest Native American population in the nation at more than 360,000, and is home to more than 100 federally recognized tribal groups.^135,136 Although tribal areas exist throughout California, they account for less than 1% of the state's land area.^137,138 Many of the tribal lands are small, including the nation's smallest reservation, the 1.32-acre parcel that contains the Pit River Tribe cemetery.¹³⁹ The largest is the forested Hoopa Valley Reservation, home of the Hupa people, in northern California's Humboldt County. More than three-fourths of that reservation's more than 85,000 acres is designated commercial timberland.¹⁴⁰

California's diverse climate and geography give tribes access to a variety of renewable energy resources. One of the first utility-scale wind projects on tribal land in the nation is in southern California. In 2005, the Campo Kumeyaay Nation in southern California leased some of its land in San Diego County for the development of a 50-megawatt wind project.^141,142 The Ramona Band of Cahuilla is one of the first tribes to make its reservation independent of the regional electric grid. They established a microgrid for an eco-tourism project on their lands in Riverside County and met the project's energy needs with renewable resources.¹⁴³ In 2015, the Bear River Band of the Rohnerville Rancheria in Northern California became the first California tribe to install a hybrid solar, wind, and advanced energy storage microgrid for power generation.¹⁴⁴

Some California reservations have abundant biomass potential. The Blue Lake Rancheria Tribe in Humboldt County has a 175-kilowatt biogas fuel cell system powered by gasified wood waste from the forestry industry.^145,146 In 2016, members of the Blue Lake Rancheria installed a 500-kilowatt solar array, funded through a grant from the California Energy Commission, as part of their microgrid.^147,148 In 2019, the Rancheria extended use of the microgrid to the broader community, about 10% of the county's population, during a widespread wildfire-related utility power shutoff in northwest Humboldt County. Although county residents had no power, the Rancheria did because of its microgrid.¹⁴⁹ In 2019, the U.S. Department of Energy (DOE) awarded the Rincon San Luiseño Band of Mission Indians funding for two microgrid projects on their reservation in San Diego County. The projects will integrate 290 kilowatts of new PV capacity with existing ground-mounted and other solar installations on the reservation.¹⁵⁰ In addition to the tribes that have abundant solar, wind, and biomass resources, some California tribal lands have geothermal electricity generation potential, particularly in the Imperial Valley in southern California, the Geysers area in northern California, and along the state's eastern border.¹⁵¹

The California Energy Commission awarded a total of $2 million in grants to 10 Native American tribes in early 2021. The grants support climate and energy planning efforts on tribal lands and in tribal communities, including studies related to the development of renewable resources, microgrids, and energy storage systems.¹⁵² Between 2010 and 2021, DOE invested about $16 million in more than 35 tribal renewable energy and energy efficiency projects in California.¹⁵³

Endnotes

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