Full Breakdown
California Threatens Lawsuit Over Federal Offshore Wind Lease Buyouts
6/25/2026, 12:05:55 AM
Legal Action Initiated
On June 23 2024, California Attorney General Rob Bonta filed a notice of intent to sue the U.S. Department of the Interior, alleging that the department’s agreements to cancel the Golden State Wind lease off Morro Bay and a separate buyout with Invenergy breach the Outer Continental Shelf Lands Act. The notice gives the parties 60 days to remedy the alleged violations before a lawsuit proceeds.
Background & Context
California targets 25 GW offshore wind by 2045 (?13 % electricity). The state has spent >$100 million on ports and transmission. Since early 2024, the Trump administration has reimbursed developers for lease fees—$120 M (Golden State Wind), $765 M (Invenergy), $1 B (TotalEnergies)—totaling ~$2.6 B.
Key Figures & Groups
Key actors: AG Rob Bonta, CEC Chair David Hochschild, Interior Secretary Doug Burgum, and companies Golden State Wind, Invenergy, TotalEnergies.
Timeline
Mar 2024: Interior reimburses TotalEnergies (~$1 B). Apr 2024: Golden State Wind cancels Morro Bay lease ($120 M). Jun 17 2024: $765 M Invenergy buyback. Jun 23 2024: Bonta files suit notice; CEC subpoenas.
Why It Matters
The 2-GW Golden State Wind project would have powered ~1.1 M homes. Its loss and the Invenergy buyout jeopardize the 100 % carbon-free goal and divert $2.6 B to out-of-state fossil projects.
Official Statements & Responses
Bonta called the buyouts illegal “backroom” deals. Hochschild called the cancellations a “strategic mistake of colossal proportions.” Burgum said they shift investment to “dependable, secure energy infrastructure.”
Criticism & Opposition
Brightline Defense warned that families and workers depend on the promised gigawatts. Democratic AGs, like Letitia James, filed similar challenges.
Conflicting Reports & Gaps
California says the buyouts breach the Outer Continental Shelf Act. The Interior Department says they are voluntary, citing national-security concerns. Golden State Wind never sued, contrary to DOI claims.
Verbatim Quotes
“a strategic mistake of colossal proportions” — David Hochschild, Chair, California Energy Commission
“Offshore wind remains an essential component of that work.” — David Hochschild, Chair, California Energy Commission
“The companies that bid for these offshore wind leases were basically sold a product in 2022 that was only viable when propped up by massive taxpayer subsidies,” — Doug Burgum, Secretary of the Interior
“At a time when the country needs more reliable and sustainable power supply, the Trump Administration is busy using taxpayer money to strike backroom buyouts that make clean-energy projects disappear,” — Rob Bonta, Attorney General of California
Data & Statistics
The Golden State Wind settlement reimburses $120 million; the Invenergy deal is $765 million; the TotalEnergies agreement is $1 billion. Combined, the federal reimbursements total $2.6 billion. California’s offshore wind target is 25 GW, enough for 25 million homes.
What's Next
The notice gives the parties 60 days to address the alleged violations. If unresolved, California will file a lawsuit seeking to block the lease cancellations and recover its $100 million investment. Other states have signaled similar legal actions.
