California Sues Trump Administration Over Wind Project Cancellation

The state of California filed a lawsuit in the US District Court for the Northern District of California to block a $120 million agreement between the Trump administration and Golden State Wind. The deal would cancel an offshore wind project lease off the coast of Morro Bay that was designed to generate 2 gigawatts of power.

Attorney General Rob Bonta and the California Energy Commission allege the agreement violates the Judgment Fund Act and the Outer Continental Shelf Lands Act. Under the terms of the deal, Golden State Wind would recover $120 million in fees by investing that amount into energy infrastructure or fossil fuel projects in the Gulf Coast area. Bonta characterized the transaction as a "backroom buyout" designed to benefit oil donors.

This legal challenge follows similar lawsuits from New York and other states regarding federal deals to terminate offshore wind leases, including an agreement with TotalEnergies SE. California officials argue the action threatens the state's clean energy future and economic growth.