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California Sues Trump Administration Over Offshore Wind Lease Buyout

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California Attorney General Rob Bonta and the California Energy Commission sued the Trump administration and Golden State Wind LLC, challenging a $120 million federal buyout that canceled the company's offshore wind lease off California's Central Coast, California's Department of Justice said in a Friday statement.

The lawsuit alleges the US Department of the Interior unlawfully used taxpayer funds to terminate Golden State Wind's lease for a planned 2-gigawatt offshore wind project in federal waters near Morro Bay.

California officials said the agreement threatens jobs and investments tied to the state's emerging offshore wind industry, including more than $100 million spent preparing ports, transmission systems and other infrastructure.

"The Trump Administration's backroom buyout with Golden State Wind to stop offshore wind development in favor of gas and oil drilling is, unfortunately, a classic playbook for them to line the pockets of their Big Oil donors," Bonta said.

California first threatened to file the lawsuit in June, warning that the lease buyout could set back the state's offshore wind industry by years and jeopardize plans to develop 25 gigawatts of offshore wind capacity by 2045, Reuters reported.

Golden State Wind won the lease in a competitive federal auction in 2022, paying $120 million. The company also committed more than $30 million to workforce training, supply chain development, and benefits for local communities.

The Interior Department announced April 27 that it would terminate the lease under an agreement with Golden State Wind that purportedly settled litigation.

California argues the arrangement was unlawful because the company had not brought the lawsuit the agreement claimed to resolve and the department had not taken the action supposedly being challenged.

The federal government cited unspecified national security concerns, despite years of federal review and consultation with the US Department of Defense, California said.

Under the agreement, Golden State Wind would receive $120 million from the federal Judgment Fund and abandon offshore wind development in California. The company would also invest an equivalent amount in out-of-state fossil fuel projects, according to the state.

California argues the payment violated the Judgment Fund Act and that the Interior Department exceeded its authority under the Outer Continental Shelf Lands Act.

The state is asking a federal court to invalidate the agreement and block the lease cancellation.

State officials estimate canceled projects could put more than 174,750 jobs and long-term infrastructure investment at risk.

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