California officials have notified the US Department of the Interior (DoI) and Golden State Wind (GSW) of their intent to file a lawsuit concerning the recent buyout of an offshore wind lease off the state's Central Coast.
The notice, sent by California Attorney General Rob Bonta and California Energy Commission chair David Hochschild, alleges the agreement violates the Outer Continental Shelf Lands Act and threatens state investments and job prospects in offshore wind energy.
The agreement, disclosed on 27 April, calls for the DoI to cancel GSW’s lease in the Morro Bay Wind Energy Area.
Under the deal, the US Government would return $120m of taxpayer funds to GSW in exchange for the company relinquishing its lease and investing an equal amount in energy projects outside California, specifically in the fossil fuel sector.
State officials argue this move could undermine more than $100m of California’s public investment in offshore wind and delay progress towards statewide clean energy goals.
Bonta said: “At a time when the country needs more reliable and sustainable power supply, the Trump Administration is busy using taxpayer money to strike backroom buyouts that make clean-energy projects disappear.
“California won’t stand idly by as the Trump Administration illegally strikes deals to kill offshore wind projects and replace them with more windfalls for his fossil fuel friends; we are putting the administration on notice that we intend to sue.”
Hochschild said: “California strongly condemns yet another reckless Trump Administration misuse of taxpayer dollars that undermines clean energy growth and US energy security.”
GSW acquired the lease for $120m in 2022 following a competitive federal auction, with commitments to support local workforce training and communities.
The DoI cited unspecified national security concerns as the reason for the cancellation, following previous approval of the area after multi-agency review.
California’s challenge follows a similar DoI arrangement with Invenergy, another wind leaseholder, which agreed to step away from four offshore wind projects in exchange for $765m and a requirement to invest in US natural gas and geothermal projects.
The state’s strategic plan aims to develop 25GW of offshore wind energy by 2045. Officials say the cancellation of these projects could jeopardise years of preparation, public spending and planned economic growth linked to offshore wind infrastructure.
