California Sues Trump Administration Over Offshore Wind Buybacks

California Attorney General Rob Bonta has launched legal actions against the federal government and energy developers to block a series of offshore wind lease buyback agreements. The state alleges the Trump administration is operating an extortion racket by intentionally diminishing the value of renewable energy leases to compel developers to accept buybacks, which are then reinvested into fossil fuel projects.

A primary target of these actions is a $1.22 billion agreement with RWE U.S. Offshore. Under the deal, RWE would surrender its lease for the 1.6 GW Canopy Offshore Wind Farm off Humboldt County in exchange for fossil fuel assets, including a $900 million indirect stake in the Louisiana LNG Project. Bonta filed a Notice of Intent to Sue, alleging the deal violates the Outer Continental Shelf Lands Act by bypassing public hearings and failing to consult Governor Gavin Newsom.

These actions follow similar disputes over leases in Morro Bay. The state has already filed lawsuits regarding deals with Invenergy and Golden State Wind, the latter of which agreed to cancel a 2 GW lease for $120 million. David Hochschild, Chair of the California Energy Commission, condemned the agreements as unlawful backroom deals that undermine over $100 million in state investments intended to build clean energy infrastructure.