California sues over Morro Bay offshore wind lease terminations

California Attorney General Rob Bonta and the California Energy Commission have filed lawsuits challenging agreements made by the Trump Administration to terminate offshore wind energy leases. The legal action specifically targets pacts involving Invenergy and Golden State Wind near Morro Bay.

One agreement involves the reallocation of over $111 million in federal funds to Invenergy to end its lease off the Central Coast. Under the terms, Invenergy must redirect these funds into other domestic energy sources. Bonta alleges the deal is an unlawful “sham settlement” designed to bypass congressional rules and favors the fossil fuel industry.

The lawsuits seek to invalidate these agreements and prevent similar settlements with other offshore wind lessees in California. While Bonta characterizes the payments as an unlawful buyout, critics of the litigation argue the settlements are necessary remedies for a permitting system that creates uncertainty for developers who have already invested millions in site surveys and environmental studies.