California Sues Trump Administration and Golden State Wind Over Cancelled Floating Offshore Wind Lease
Key Takeaways
- •California is seeking to invalidate an April agreement that would pay Golden State Wind $120m from the federal Judgment Fund to relinquish its Morro Bay lease.
- •Golden State Wind, a joint venture between Ocean Winds and Reventus Power, paid $120m for the 2 GW floating wind lease in the 2022 federal auction and had committed more than $30m to workforce, supply-chain, and community programmes.
- •The state argues the cancellation arrangement violates both the Outer Continental Shelf Lands Act and the Judgment Fund Act, while Interior says the deal was approved by the Department of Justice.
- •The Morro Bay lease was part of California's first federal offshore wind auction in December 2022, which raised roughly $757m and underpins state targets of 5 GW of offshore wind by 2030 and 25 GW by 2045.
- •Under the cancellation arrangement, Golden State Wind would commit an equivalent $120m to conventional energy projects outside California.
California has taken the Trump administration and Golden State Wind to court over the cancellation of a 2 GW floating offshore wind lease off the state's Central Coast, opening a new legal front in the dispute over Washington's retreat from US offshore wind.
Attorney General Rob Bonta and the California Energy Commission filed the case in federal court, challenging an April agreement under which the Department of the Interior agreed to reimburse Golden State Wind $120m for relinquishing its Morro Bay lease. California is asking the court to invalidate the deal.
Golden State Wind, a joint venture between Ocean Winds and Reventus Power, paid $120m for the lease in the 2022 federal auction and had planned a 2 GW floating wind development at the site. The developer had also committed more than $30m toward workforce training, supply-chain development, and community programmes.
Under the cancellation arrangement, the federal government would draw the $120m reimbursement from the Judgment Fund, while Golden State Wind would commit an equivalent amount to conventional energy projects outside California.
The state argues that the agreement breaches both the Outer Continental Shelf Lands Act and the Judgment Fund Act. Interior told Reuters that the arrangement had been approved by the Department of Justice and had gone through the appropriate channels.
The Morro Bay lease was one of five commercial offshore wind leases sold in California's first federal offshore wind auction in December 2022, which drew roughly $757m in combined winning bids and was positioned as a cornerstone of the state's push to deploy up to 5 GW of offshore wind capacity by 2030 and 25 GW by 2045. Because California's deep coastal waters require floating turbine technology rather than fixed-bottom foundations, the state's offshore wind programme is closely tied to a floating wind sector that is still early in commercialisation, making lease stability a key factor for developers and prospective supply-chain investors.
As Splash reported in April, Engie was discussing compensation with US officials for offshore wind leases held through Ocean Winds, including Golden State Wind. The latest filing is a separate development, moving the California lease dispute into federal court, and adds to a broader pattern of legal and commercial friction as the federal government unwinds offshore wind commitments made under the previous administration.
Source: Splash247
