California is preparing to sue the Trump administration over its decision to terminate an offshore wind project off the state’s central coast, escalating a battle over renewable energy’s future.
State officials announced Tuesday their intent to challenge the Department of the Interior’s move to buy back the lease for Golden State Wind, a floating offshore wind project California viewed as key to its clean energy strategy.
California has set a goal of developing 25 gigawatts of offshore wind capacity by 2045, a target officials say could generate enough electricity to power about 25 million homes and provide roughly 13% of the state’s energy needs.
“These energy and climate goals are now in jeopardy, and that’s why California will fight vigorously,” California Energy Commission Chair David Hochschild said. He called the administration’s decision to cancel offshore wind leases “a strategic mistake of colossal proportions,” arguing it comes as energy prices remain a major concern.
Hochschild said abandoning offshore wind could hurt American competitiveness by slowing investment in emerging energy technology.
President Donald Trump has repeatedly criticized wind power and pushed to expand fossil fuel production, arguing that it is necessary for reliable and affordable energy. The Interior Department began negotiating lease buybacks after federal courts blocked the administration’s attempts to stop offshore wind projects through executive action.
Interior Secretary Doug Burgum said companies were redirecting investments toward “dependable, secure energy infrastructure” that could lower costs for consumers.
Two offshore wind projects off California’s coast are now being canceled via agreements with the Interior Department. Alongside Golden State Wind, another project backed by Chicago-based Invenergy is also ending development.
California has launched an administrative investigation into Invenergy after the company accepted a $765 million agreement to surrender its offshore wind leases.
California Attorney General Rob Bonta accused the administration of “illegally” targeting offshore wind projects and said the state would challenge efforts to shift investment away from renewable energy and toward fossil fuels.
So far, eight offshore wind projects have been halted nationwide, with the combined cost of lease termination agreements approaching $6 billion. Earlier this year, French energy company TotalEnergies received nearly $1 billion to end two offshore wind leases off North Carolina and New York, agreeing to redirect the funds to other energy projects.
Golden State Wind, a partnership between Ocean Winds and the Canada Pension Plan Investment Board, is expected to recover about $120 million in lease fees under its agreement, provided an equivalent amount is invested in oil, gas or other energy infrastructure projects.
Supporters of the lawsuit argue that the Interior Department improperly used federal resources to compensate companies for abandoning renewable energy projects and to require replacement investments outside California.
Hochschild and Bonta also point to more than $100 million California has spent preparing ports, transmission systems and industries for offshore wind development, warning those investments could be lost if the projects are permanently abandoned.
California officials say they will file the lawsuit within 60 days if the dispute is not resolved.
