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California Targets Trump Administration's $111 Million Wind Lease Buyout

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California challenged the Trump administration's offshore wind lease buyout program Thursday, targeting a $111 million Morro Bay agreement in a planned lawsuit.

California Attorney General Rob Bonta and California Energy Commission Chair David Hochschild sent the notice to the US Department of the Interior and Invenergy, targeting an agreement to cancel the company's Morro Bay offshore wind lease.

The agreement would use over $111 million in federal taxpayer funds to pay an Invenergy subsidiary to surrender Lease OCS-P 0565 and require an equal investment in fossil fuel or geothermal projects, Bonta said.

"California will continue to hold the Trump Administration accountable for illegally striking deals to kill offshore wind projects," said Attorney General Rob Bonta.

The notice follows DOI's earlier $120 million buyout of Golden State Wind's lease in the same Morro Bay Wind Energy Area. Nationwide, the Trump administration has committed $2.6 billion to offshore wind lease buybacks, according to Bonta.

California aims to install 25 gigawatts of offshore wind capacity by 2045, enough to power about 25 million homes and supply roughly 13% of statewide electricity demand, but the state said the buyouts threaten that goal.

The state said it has spent more than $100 million preparing ports, transmission infrastructure and industries for offshore wind after working with federal agencies, tribes, developers, labor groups, ports, fishermen and local communities for about a decade.

Invenergy paid more than $111 million in the 2022 federal lease auction for a project with up to 2 GW capacity and pledged more than $30 million for workforce training, supply chain development and community benefits.

California said DOI justified the Jun. 17 lease cancellation by citing unspecified national security concerns even though federal agencies, including the US Department of Defense, had previously reviewed and approved the lease area.

The notice alleges the agreement violates the Outer Continental Shelf Lands Act by bypassing protections designed to give California a role in offshore wind leasing.

The state gave the parties 60 days to address the alleged violations before filing suit.

Attorneys general from Connecticut, Delaware, Maine, Massachusetts, New Jersey, New York, Rhode Island and Vermont also issued a separate notice Thursday challenging three additional Invenergy lease buyouts off New York, New Jersey and Maine valued at $653 million.

California said the notice marks its latest challenge to the Trump administration's offshore wind policies after issuing a similar notice against Golden State Wind on June 23.

The California Energy Commission also subpoenaed Golden State Wind in May and Invenergy last month.

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