Key facts
- California is suing the Trump administration and Golden State Wind over a canceled offshore wind lease.
- The state alleges the April agreement, which provided $120 million in federal reimbursement to the developer, violates federal law.
- California claims the cancellation threatens thousands of jobs and over $100 million in state investments.
- The lawsuit argues the payment was not tied to an actual lawsuit, violating the Outer Continental Shelf Lands Act and the federal Judgment Fund Act.
- The Interior Department stated the agreement was approved by the Department of Justice.
California has filed a lawsuit against the Trump administration and offshore wind developer Golden State Wind, challenging a deal that canceled a planned wind project off the state's Central Coast. The state argues the agreement, which involved a $120 million federal reimbursement to the developer, violates federal law and harms California's offshore wind industry.
Filed in the U.S. District Court for the northern district of California, the lawsuit contends that the Department of the Interior unlawfully used taxpayer funds to reimburse Golden State Wind for relinquishing a lease purchased in a 2022 federal auction. Golden State Wind, a joint venture including France's ENGIE and Portugal's EDP Renewables, had planned a 2-gigawatt floating offshore wind project and pledged significant investments in workforce training and community benefits.
California asserts that the cancellation threatens thousands of jobs and over $100 million in state investments related to offshore wind development, including port upgrades and transmission planning. The suit alleges violations of the Outer Continental Shelf Lands Act and the federal Judgment Fund Act, as the payment was not linked to an actual lawsuit.
An Interior Department spokesperson declined to comment on the ongoing litigation but indicated the agreement was approved by the Department of Justice and followed appropriate procedures. California had previously threatened legal action in June, warning that the lease buyout could significantly delay the state's offshore wind industry and undermine its goal of developing 25 gigawatts of capacity by 2045. The Trump administration has engaged in similar agreements with other developers, exchanging offshore wind leases for commitments to invest in conventional energy projects.