California litigation over offshore wind lease cancellation

California Attorney General Rob Bonta and the California Energy Commission filed a lawsuit against the Trump administration and developer Golden State Wind to challenge the cancellation of a 2-gigawatt offshore wind project near Morro Bay. The legal action, filed in U.S. District Court for the Northern District of California, contests a $120 million agreement in which the U.S. Department of the Interior returned lease funds to Golden State Wind. State officials allege the Department of the Interior abused its authority and violated the Outer Continental Shelf Lands Act and the federal Judgment Fund Act. The lawsuit characterizes the deal as a “backroom buyout” and an “extortion racket,” claiming the administration diminishes lease values to facilitate buyouts that allow companies to redirect funds toward fossil fuel projects. California officials argue the cancellation jeopardizes thousands of jobs and threatens significant state investments in port upgrades, transmission planning, and supply-chain development. The administration has maintained that the agreement was approved by the Department of Justice and followed appropriate channels. Legal challenges have expanded as California officials filed a new lawsuit against the administration and energy developer RWE. This action targets a $1.22 billion agreement to cancel offshore wind leases off the coasts of California, Louisiana, and New York. Under this settlement, RWE is required to reinvest funds into U.S. liquefied natural gas (LNG) infrastructure, including a planned $900 million investment in a Louisiana LNG terminal. California officials argue the administration is using taxpayer money to dismantle offshore wind development in favor of oil and gas interests. Similar buyout deals with companies like TotalEnergies have prompted legal challenges from several other Democratic-led states. In a related escalation, the Trump administration has initiated a review of California’s coastal management program.