New California law clouds Trump-backed Oakland coal export terminal project

California Governor Gavin Newsom recently signed Assembly Bill 40, which mandates a fresh Environmental Impact Review for new coal projects, including a proposed coal export terminal at the former Oakland Army Base. This development complicates a project that has recently gained federal backing and Utah financing. The West Gateway Terminal would be built at the Oakland Bulk and Oversized Terminal, a site near the Bay Bridge.

It aims to receive coal by rail from interior Western states, store it, and load it onto vessels bound for Asian markets. The facility, if completed as planned, would have the potential throughput of up to 12 million metric tons annually, making it the largest coal export facility on the U.S. West Coast. The project previously faced legal challenges, but a 2025 ruling by the California Supreme Court removed a major hurdle.

However, the new environmental review requirement under AB 40 could lead to a more detailed assessment of the project's environmental and health effects, potentially sparking further legal challenges. Additionally, environmental justice advocates are concerned about increased coal dust and fine-particle pollution in the West Oakland area, a region already impacted by port, trucking, and industrial emissions.