California is preparing to take the Trump administration to court over an agreement that would terminate a proposed offshore wind development along the state’s central coast.
State officials said Tuesday they are pushing back against what they describe as the administration’s assault on California’s offshore wind sector by filing a notice of intent to sue with the Department of the Interior. The planned legal action centers on the federal government’s move to buy back the lease for Golden State Wind, a floating offshore wind project proposed off California’s central coastline.
California has placed offshore wind at the heart of its clean-energy plans, citing the powerful and steady winds off its coast as a major source of future electricity. The state’s roadmap calls for building 25 gigawatts of offshore wind capacity by 2045 — enough, officials say, to serve about 25 million homes and account for roughly 13% of California’s electricity supply.
California Energy Commission Chair David Hochschild said those climate and energy targets are now at risk, which is why the state intends to fight aggressively. He described the administration’s effort to repurchase offshore wind leases as “a strategic mistake of colossal proportions,” adding that the move is particularly striking at a time when fossil fuel prices have been climbing amid the Iran war.
“Countries that thrive around the world are those that lean into innovation, into the energy sources of the future,” Hochschild said in an interview Tuesday. “And so to turn away from this, and turn back the clock, and really engage in what I consider to be a war on innovation, is really ill-considered. And I think it’s a decision that’s not just bad for California, it’s bad for the nation.”
Trump administration prioritizes fossil fuels over wind energy
President Donald Trump has repeatedly promoted fossil fuels as a way to expand what he calls affordable, reliable American energy, while often voicing strong opposition to wind power. The Interior Department began buying back offshore wind leases after federal courts blocked Trump’s attempts to halt offshore wind development through executive action.
Under the arrangement, companies receive reimbursement for lease fees while redirecting investment toward fossil fuel projects and geothermal energy. Interior Secretary Doug Burgum said last week that “under President Trump, companies are shifting investment back toward dependable, secure energy infrastructure that can power our economy and lower utility costs.”
A total of five federal leases off California’s coastline have been awarded to energy developers. Two are being canceled through deals with the Interior Department: Golden State Wind and another floating project off California’s central coast by Chicago-based Invenergy. The state says it also issued an administrative investigative subpoena on Tuesday to Invenergy, which accepted a $765 million deal last week to terminate its offshore wind leases.
California Attorney General Rob Bonta said in a statement that the state 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.”
Eight offshore wind projects have been stopped so far
The total amount spent on these agreements is nearly $2.6 billion. Under the first deal announced in March, French company TotalEnergies is getting nearly $1 billion — essentially a refund of its two offshore wind leases — if it invests the money in fossil fuels instead. Those leases were off the coasts of North Carolina and New York. New York is leading a lawsuit challenging the TotalEnergies agreement and Democrats in Congress are investigating it.
Golden State Wind and Bluepoint Wind agreed in April to end their leases. Bluepoint Wind was an offshore wind farm in the early stages of development off the coasts of New Jersey and New York.
Golden State Wind is a joint venture by Ocean Winds and the Canada Pension Plan Investment Board. Under its agreement, Golden State Wind can recover about $120 million in lease fees after the same amount is invested in oil and gas assets, infrastructure or projects along the Gulf Coast, Interior said. Michael Brown, CEO of Ocean Winds North America, said in April that the deal provided “clarity” for the company and its investors.
Hochschild and Bonta say that Interior illegally reallocated federal taxpayer dollars to pay Golden State Wind to abandon its offshore wind energy lease and invest an equal amount in out-of-state fossil fuel projects, which will do nothing to support California’s energy economy.
They also say California has invested more than $100 million over the past decade to ready its ports, transmission systems and industries to support offshore wind generation, and those investments may be lost if the Trump administration successfully halts offshore wind development.
California plans to sue in 60 days if the situation isn’t rectified.
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