California Files Lawsuit Challenging Federal Deal That Scrapped Offshore Wind Project
California's attorney general has sued the U.S. Department of the Interior and Golden State Wind over an agreement that canceled a planned two-gigawatt floating wind farm off the Central Coast. The state argues that the deal, which included a $120 million federal reimbursement and a shift toward fossil fuel investment, violates federal law. The lawsuit seeks to invalidate the agreement, which also would have funded workforce training and supply-chain development.
The lease for the proposed floating wind farm was originally secured through a federal auction in 2022, with the project intended to generate two gigawatts of power off California's Central Coast. Golden State Wind, despite its name, is a joint venture backed by UK-based Reventus Power and Ocean Winds, which itself is a partnership between France's ENGIE and Portugal's EDP Renewables.
Beyond the cancelled energy generation, the agreement also eliminated planned community investments, including $30 million earmarked for workforce training, supply-chain development, and other local benefits. The state's lawsuit contends that using $120 million in taxpayer funds to reimburse the company for relinquishing its lease was an unlawful application of federal resources.
This lawsuit could set a precedent for how federal agencies handle existing energy leases, potentially affecting investor confidence in offshore wind development nationwide. If successful, it may restore the project and its associated jobs and training programs, while also discouraging similar buyout arrangements in the future. Conversely, an unfavorable ruling could embolden further cancellations, impacting state-level clean energy targets, local economies along the coast, and ratepayers who may face higher costs from alternative power sources.