California Announces Intent to Sue Federal Government Over Offshore Wind Lease Buybacks
California will file a lawsuit against the U.S. Interior Department for terminating leases on offshore wind projects, arguing the actions undermine the state's clean-energy targets.
California officials said they will seek judicial relief after the Interior Department agreed to buy back leases for the Golden State Wind floating offshore wind project off the state’s central coast. The notice of intent to sue was sent to the department on Tuesday, alongside an administrative subpoena to Invenergy, which recently accepted a $765 million settlement to terminate a separate lease.
The state’s offshore wind plan aims to develop 25 gigawatts of capacity by 2045, enough to supply roughly 13 percent of California’s electricity needs. California Energy Commission Chair David Hochschild said the federal lease cancellations jeopardize those goals. > "Countries that thrive around the world are those that lean into innovation, into the energy sources of the future," he told reporters.
The Trump administration has pursued a policy of repurposing offshore wind lease payments for fossil-fuel and geothermal projects. Interior Secretary Doug Burgum said the approach is intended to support "dependable, secure energy infrastructure" and lower utility costs. Under the agreements, developers receive reimbursements of lease fees in exchange for investing the equivalent amount in non-wind energy projects.
Golden State Wind, a joint venture of Ocean Winds and the Canada Pension Plan Investment Board, is slated to recover about $120 million in lease fees after reallocating the funds to oil, gas or related infrastructure. Ocean Winds North America CEO Michael Brown described the settlement as providing clarity for investors.
California Attorney General Rob Bonta issued a statement asserting that the state will not allow the federal actions to proceed without challenge. The state plans to file the lawsuit within 60 days if the leases are not reinstated.
To date, eight offshore wind projects have been terminated through similar agreements, involving nearly $2.6 billion in payments to developers. New York and other states have launched separate legal challenges to comparable deals.