California Files Suit to Block Offshore Wind Lease Cancellation Deal
California sues the Trump administration and Golden State Wind over a $120 million lease cancellation deal, arguing it violates federal law.
California has initiated legal action against the Trump administration and an offshore wind developer over an agreement that terminated a planned project off the state's Central Coast. The lawsuit, filed on Friday by Attorney General Rob Bonta in the U.S. District Court for the northern district of California, targets the U.S. Department of the Interior and Golden State Wind.
The state contends that the April agreement, which involved a $120 million federal reimbursement to Golden State Wind in exchange for relinquishing its offshore wind lease, is unlawful. The lease was originally acquired by the company during a 2022 federal auction. Golden State Wind is a joint venture involving Ocean Winds—a partnership between France's ENGIE and Portugal's EDP Renewables—and Reventus Power, a London-based investment firm.
The project in question was a 2-gigawatt floating offshore wind development. The complaint notes that the company had committed over $30 million towards workforce training, supply-chain development, and community benefits. California argues that the cancellation jeopardizes thousands of jobs and over $100 million in state investments, including those in port upgrades, transmission planning, and supply-chain infrastructure.
The lawsuit alleges that the agreement breaches the Outer Continental Shelf Lands Act and the federal Judgment Fund Act, as the payment was not tied to an actual lawsuit. An Interior Department spokesperson declined to comment on the ongoing litigation but stated that the agreement was approved by the Department of Justice and followed proper procedures.
California had previously signaled its intent to sue in June, warning that the buyout could delay the state's offshore wind industry by years and undermine its goal of developing 25 gigawatts of offshore wind capacity by 2045. The Trump administration has reportedly reached similar agreements with other developers, including TotalEnergies and Invenergy, which involved investments in conventional energy projects in return for terminating offshore wind leases. Ocean Winds has not yet responded to requests for comment.