California intends to sue Trump administration over deal to end offshore
wind project
[June 24, 2026] By
JENNIFER McDERMOTT
California intends to sue the Trump administration over its deal to end
an offshore wind project proposed off the state's central coast.
State officials said they are combating the administration's attacks on
their offshore wind industry by sending a notice of their intention to
sue to the Department of the Interior on Tuesday. Tuesday’s action is
focused on the administration buying back the lease for Golden State
Wind, a floating offshore wind project off California’s central coast.
California has made a major commitment to offshore wind because of its
potential to generate vast amounts of clean electricity from strong,
consistent winds off its coast. Its strategy calls for the state to
develop 25 gigawatts of offshore wind energy by 2045, enough to power
roughly 25 million homes and provide about 13% of the state’s
electricity supply.
These energy and climate goals are now in jeopardy, and that's why
California will fight vigorously, said California Energy Commission
Chair David Hochschild. He called the administration's strategy of
buying back offshore wind leases “a strategic mistake of colossal
proportions" that is especially stunning at a time when fossil fuel
prices have been spiking due to the Iran war.
“Countries that thrive around the world are those that lean into
innovation, into the energy sources of the future,” he said in an
interview on Tuesday. “And so to turn away from this, and turn back the
clock, and really engage in what I consider to be a war on innovation,
is really ill-considered. And I think it’s a decision that’s not just
bad for California, it’s bad for the nation.”
Trump administration favors fossil fuels over wind
President Donald Trump has said he’s boosting fossil fuels to unleash
America’s affordable and reliable energy, and he frequently talks about
his hatred of wind power. The Interior Department started buying back
offshore wind leases after federal courts thwarted Trump’s efforts to
stop offshore wind development through executive action.
In exchange for reimbursements of lease fees, companies are investing in
fossil fuel projects and geothermal energy. Interior Secretary Doug
Burgum said last week that “under President Trump, companies are
shifting investment back toward dependable, secure energy infrastructure
that can power our economy and lower utility costs.”
A total of five federal leases off California's coastline have been
awarded to energy developers. Two are being canceled through deals with
the Interior Department: Golden State Wind and another floating project
off California’s central coast by Chicago-based Invenergy. The state
says it also issued an administrative investigative subpoena on Tuesday
to Invenergy, which accepted a $765 million deal last week to terminate
its offshore wind leases.
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 California Attorney General Rob
Bonta said in a statement that the state won’t stand idly by as the
Trump administration “illegally strikes deals to kill offshore wind
projects and replace them with more windfalls for his fossil fuel
friends.”
Eight offshore wind projects have been stopped so far
The total amount spent on these agreements is nearly $2.6 billion.
Under the first deal announced in March, French company
TotalEnergies is getting nearly $1 billion — essentially a refund of
its two offshore wind leases — if it invests the money in fossil
fuels instead. Those leases were off the coasts of North Carolina
and New York. New York is leading a lawsuit challenging the
TotalEnergies agreement and Democrats in Congress are investigating
it.
Golden State Wind and Bluepoint Wind agreed in April to end their
leases. Bluepoint Wind was an offshore wind farm in the early stages
of development off the coasts of New Jersey and New York.
Golden State Wind is a joint venture by Ocean Winds and the Canada
Pension Plan Investment Board. Under its agreement, Golden State
Wind can recover about $120 million in lease fees after the same
amount is invested in oil and gas assets, infrastructure or projects
along the Gulf Coast, Interior said. Michael Brown, CEO of Ocean
Winds North America, said in April that the deal provided “clarity”
for the company and its investors.
Hochschild and Bonta say that Interior illegally reallocated federal
taxpayer dollars to pay Golden State Wind to abandon its offshore
wind energy lease and invest an equal amount in out-of-state fossil
fuel projects, which will do nothing to support California’s energy
economy.
They also say California has invested more than $100 million over
the past decade to ready its ports, transmission systems and
industries to support offshore wind generation, and those
investments may be lost if the Trump administration successfully
halts offshore wind development.
California plans to sue in 60 days if the situation isn't rectified.
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