Key facts
- California intends to sue the Trump administration over the buyback of an offshore wind project lease.
- The state aims to develop 25 gigawatts of offshore wind energy by 2045.
- The Trump administration favors fossil fuels and is buying back wind leases in exchange for fossil fuel investments.
- Two offshore wind leases off California's coast are being canceled.
- California has invested over $100 million in infrastructure to support offshore wind development.
California intends to sue the Trump administration over its decision to buy back the lease for the Golden State Wind offshore project, a move state officials argue undermines clean energy goals and constitutes an "attack" on the state's burgeoning offshore wind industry.
State officials announced Tuesday they are sending a notice of intent to sue the Department of the Interior, citing the administration's strategy of canceling offshore wind leases. California has committed to developing 25 gigawatts of offshore wind energy by 2045, a goal that officials state is now in jeopardy. California Energy Commission Chair David Hochschild called the buyback of leases a "strategic mistake of colossal proportions," particularly amid rising fossil fuel prices due to the Iran war.
President Donald Trump has consistently favored fossil fuels, expressing a dislike for wind power. The Interior Department has been buying back offshore wind leases, offering reimbursements in exchange for companies investing in fossil fuel and geothermal projects. Interior Secretary Doug Burgum stated that under President Trump, investments are shifting toward "dependable, secure energy infrastructure."
Two federal leases off California's coast are being canceled through deals with the Interior Department: Golden State Wind and another project by Invenergy. California has also issued an administrative investigative subpoena to Invenergy, which accepted a $765 million deal to terminate its leases. California Attorney General Rob Bonta accused the administration of illegally striking deals to benefit fossil fuel companies.
This action follows a pattern where eight offshore wind projects have been halted, with total agreement costs nearing $2.6 billion. French company TotalEnergies is set to receive nearly $1 billion to invest in fossil fuels instead of its offshore wind leases off North Carolina and New York. New York is leading a lawsuit challenging this agreement, and congressional Democrats are investigating. Golden State Wind and Bluepoint Wind also agreed to end their leases in April. Golden State Wind, a joint venture by Ocean Winds and the Canada Pension Plan Investment Board, can recover approximately $120 million in lease fees by investing an equal amount in oil and gas assets.
California officials argue that the Interior Department illegally reallocated federal taxpayer dollars to pay Golden State Wind to abandon its lease and invest in out-of-state fossil fuel projects, which they contend will not support California's energy economy. The state has invested over $100 million in preparing ports and transmission systems for offshore wind generation, investments that could be lost if the administration halts development. California plans to file suit in 60 days if the situation is not rectified.