USA
California has filed notice of its intent to sue the federal government over an offshore wind lease buyout.
The dispute centers on Golden State Wind LLC’s 2 GW lease in the Morro Bay Wind Energy Area, which GSW purchased for $120 million in a 2022 federal auction. In April, the Department of the Interior moved to terminate the lease, citing national security concerns, under an agreement that would pay GSW using the original $120 million in exchange for an equal investment in out-of-state fossil fuel projects.
California’s Attorney General and Energy Commission allege the deal violates the Outer Continental Shelf Lands Act, which gives states a formal role in offshore wind leasing decisions. DOI and GSW now have 60 days to respond before the state can file suit.
This follows a similar case last week involving Invenergy, which agreed to relinquish four offshore wind leases, including projects off California, Maine, and New York, for a $765 million federal payout. Nationwide, federal spending on offshore wind lease buyouts now totals close to $2.6 billion.
California’s offshore wind plan targets 25 GW of capacity by 2045. The state has invested more than $100 million in port readiness and transmission planning to support that goal.
