Wyoming congressional representatives have pledged to use legal action to defend the state's coal industry after California Governor Gavin Newsom signed a bill blocking a planned export terminal in Oakland. The terminal, which would have been the West Coast's first facility of its kind, was set to ship Wyoming coal to global buyers seeking affordable power.
The move by Sacramento directly counters a $75 million investment announced by President Trump this summer under the Defense Production Act. According to U.S. Sen. Cynthia Lummis and Rep. Harriet Hageman, both Republicans from Wyoming, California Democrats introduced the blocking bill immediately following the federal announcement. The lawmakers argue that the new environmental review requirements are designed to stall the project until investors abandon it.
The Oakland terminal had previously navigated California's regulatory process, passing environmental review and winning years of litigation. The City of Oakland had begun advancing development after conceding in court, with the project receiving more than $240 million in funding from California taxpayers. However, state legislators subsequently changed the rules to void the permit retroactively. Lummis and Hageman warn that this action threatens the security of any business approval in the state, noting that if permits can be revoked based on political priorities, no approval is safe.
The authors of the bill characterized the measure as a way to defy the president and block coal exports. In response, Wyoming officials stated that the state will not allow California politicians to shut energy producers out of global markets. They emphasized that Wyoming sits atop more than 600 years of coal reserves and that demand for electricity in Asia is climbing, creating a market where American coal offers diplomatic leverage and domestic reliability.
The conflict occurs against a backdrop of significant spending on California's high-speed rail project. Newsom signed the coal terminal bill on the same day he vetoed a measure intended to speed up auditor hiring for the rail system. The state has spent $15 billion over 18 years on the project without laying a single mile of track. Originally promised to connect Los Angeles and San Francisco by 2020 for $33 billion, the line is now estimated to cost between $126 and $231 billion, with completion not expected until 2040.
Transportation Secretary Sean Duffy revoked $4 billion in federal grants for the rail project last year. Newsom sued and lost but continues to defend the spending. Lummis and Hageman contrast this with Wyoming's position, arguing that while California has driven out builders and manufacturers, Wyoming will continue mining to meet global energy demand. The lawmakers assert that this fight extends beyond coal, representing a broader dispute over California's export of regulatory dysfunction to other states relying on its ports.