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California sued the Trump administration Monday to block what it says is an unprecedented power grab: using emergency authority to force the restart of an offshore oil operation shut down more than a decade ago.
The lawsuit, filed in federal court in San Francisco, argues a March 13 order by U.S. Energy Secretary Chris Wright oversteps his authority under the Defense Production Act, a Cold War-era law.
“No matter how much President Trump may claim there’s a so-called national energy emergency — it’s just not true,” Attorney General Rob Bonta told reporters. “The U.S. already produces significantly more oil and gas than we use — it’s a completely fabricated claim intended to curry favor with the oil industry.”
The legal fight pits the Trump administration and Sable Offshore Corp. against California officials and environmental groups – and comes as fuel prices jump in the wake of the Iran conflict. Sable, which bought the system from ExxonMobil in 2024, has told investors that production could increase from about 30,000 barrels of oil equivalent per day to more than 50,000 if it restarts, sending oil to refineries in Los Angeles, Bakersfield and the Bay Area.
California argues the emergency powers law is meant to prioritize contracts during emergencies — not to override state law or force a pipeline restart. The state says the administration failed to meet the law’s basic requirements, including showing an actual energy shortage.
Wright’s order marked the most aggressive federal intervention yet in a yearslong dispute. A March 3 legal opinion from the U.S. Justice Department had laid the groundwork, concluding that the emergency order could preempt state law — and even override a 2020 federal consent decree requiring approval from the California State Fire Marshal before the pipeline can restart.
Environmental groups and experts have argued that forcing the pipeline back into production would not lower gasoline prices but would put coastal wildlife at risk and set a troubling precedent for federal power over state law. The Trump administration has long sought to expand offshore oil leasing along the West Coast, which has drawn fierce opposition in California.
Sable is facing mounting legal pressure on multiple fronts. In December, the Pipeline and Hazardous Materials Safety Administration ruled that the infrastructure qualifies as an interstate pipeline and issued an emergency permit approving a restart plan — a move environmental groups and the state of California challenged. That case is pending before the 9th U.S. Circuit Court of Appeals.
In February, a Santa Barbara County Superior Court judge ordered the pipeline to remain shut down, ruling that earlier federal intervention was not enough to override an injunction requiring Sable to obtain state approvals before restarting.
Representatives for Sable, the Energy Department and the U.S. Department of Justice did not immediately respond to requests for comment Monday.
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