California Sues Trump Over $120 Million Deal That Canceled Offshore Wind Lease

The state of California filed a lawsuit on Friday, August 28, against President Donald Trump and developer Golden State Wind to nullify the $120 million agreement that canceled the lease for a 2-gigawatt offshore wind farm off Morro Bay, according to Bloomberg.

Golden State Wind won the lease in the Morro Bay Wind Energy Area following a 2022 auction, with commitments of more than $30 million in workforce training, supply chain development, and local community benefits, according to the Attorney General's office. In April, the Department of the Interior (DOI) suspended the lease through an agreement with the company: the government agreed to pay $120 million and required Golden State Wind to invest an equivalent amount in fossil fuel projects outside the state. The dispute pits California against the federal government over the authority to cancel offshore wind leases, and adds to other similar agreements, including the $1,220 million deal with RWE U.S. Offshore for three leases, as reported by Aristegui Noticias.

Bonta said in a statement that the lease cancellation puts at risk the $30 million committed to workforce training and supply chain development. The Attorney General's office maintains that the agreement violates the Outer Continental Shelf Lands Act, which grants California a role in leasing decisions, and estimates 174,750 jobs are at risk. The lawsuit was filed jointly with the California Energy Commission. The Department of the Interior declined to comment due to pending litigation, and Golden State Wind did not immediately respond to a request for comment, according to Forbes México.

The case will be resolved in federal court and will set a precedent on the authority to cancel offshore wind leases. California maintains a target of 25 gigawatts of offshore wind by 2045, an objective that makes the outcome of this litigation a key indicator for pending projects.

This article was written with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.