California Attorney General Rob Bonta and the California Energy Commission (CEC) have filed a lawsuit against the Trump administration and Golden State Wind LLC, alleging an unlawful buyout of an offshore wind energy lease.
The lawsuit, submitted on August 28, contests an agreement valued at USD 885 million (approx. EUR 756 million) made in April between the US Department of the Interior (DOI), Bluepoint Wind, and Golden State Wind developers. Under this deal, developers would voluntarily end their offshore wind leases in return for a refund of their lease payments.
Golden State Wind, a proposed 2 GW floating wind farm in the Morro Bay Wind Energy Area off California’s central coast, is a partnership between Ocean Winds and Reventus Power, with Ocean Winds managing the project.
The federal agreement allows Golden State Wind LLC to terminate its lease for the floating wind project, making it eligible to recover around USD 120 million (approx. EUR 103 million) in lease fees after equal investments in US oil, gas, energy infrastructure, and LNG projects along the Gulf Coast.
California claims the agreement breaches several federal laws, including the Outer Continental Shelf Lands Act, which limits the DOI’s power to cancel offshore wind leases.
The lawsuit disputes DOI’s portrayal of the agreement as a settlement. California contends the deal “purportedly ‘settles’ litigation that Golden State Wind never brought, challenging action that DOI never took.” The State argues the USD 120 million payment from the federal Judgment Fund was not a legal settlement but part of a strategy to annul the lease.
California is seeking to nullify the agreement and prevent its implementation. The State argues that canceling the lease jeopardizes its offshore wind investments, clean energy targets, and broader energy economy. Over USD 100 million (approx. EUR 86 million) has been invested in port, transmission, and industry preparations for offshore wind since federal industry planning began off the state’s coast about a decade ago. The lawsuit claims canceling offshore wind projects threatens these investments, along with jobs, infrastructure investment, and long-term economic growth.
California’s offshore wind strategic plan aims to develop 25 GW of offshore wind capacity by 2045, powering about 25 million homes and supplying roughly 13% of the state’s electricity. The industry is expected to bolster local manufacturing and economic development, especially around the ports of Long Beach and Humboldt, where offshore wind turbines were planned for staging and assembly.
California estimates the cancellation of offshore wind projects could imperil over 174,750 jobs, along with related infrastructure investment and economic development.
The lawsuit follows a CEC administrative subpoena issued to Golden State Wind in May for documents and information on the buyout. In June, the California Department of Justice and CEC issued a Notice of Intent to Sue regarding the agreement with the DOI and Golden State Wind.
Original Story at www.offshorewind.biz