California sues Trump administration over offshore wind lease buyouts

California Attorney General Rob Bonta and the California Energy Commission have filed a lawsuit against the Trump administration and energy developer RWE. The legal challenge targets a $1.22 billion agreement in which the Department of the Interior would cancel offshore wind leases off the coasts of California, Louisiana, and New York.

Under the settlement, RWE is required to reinvest funds into U.S. liquefied natural gas (LNG) infrastructure and natural gas projects. Specifically, RWE plans to invest $900 million into a Louisiana LNG terminal, a stake being purchased from Stonepeak, a firm led by Michael Dorrell, a major political donor. California officials argue the administration is using taxpayer money to dismantle offshore wind development in favor of oil and gas interests.

The lawsuit alleges the administration lacks the legal authority to reimburse developers for abandoning leases and claims the process violates the Outer Continental Shelf Lands Act. Similar buyout deals have been reached with other companies, such as TotalEnergies, prompting legal challenges from several other Democratic-led states.