As a follow-up to an investigative subpoena issued to Golden State Wind LLC (GSW) that we previously reported on last month, California Attorney General Rob Bonta and California Energy Commission (CEC) Chair David Hochschild today sent a Notice of Intent to File Suit to the U.S. Department of the Interior (DOI) and GSW. The action is in response to what California claims is an unlawful agreement between the federal government and GSW to abandon GSW's plan for wind energy project development offshore California.
Under the agreement, California claims that an illegal $120 million payment to GSW was made to get it to abandon it's offshore energy lease in federal waters offshore California's Central Coast. Furthermore, as part of that agreement, GSW would have to invest an equal amount of money in out-of-state fossil fuel development projects.
In the Notice of Intent to Sue, California alleges that the federal Outer Continental Shelf Lands Act (OCSLA) was violated by DOI's buyout deal. OCSLA is supposed to ensure that California has a say in offshore wind leases and to prevent corrupt backroom deals.
The federal government now has 60 days to reverse its actions or the lawsuit will proceed.
A similar federal deal with another offshore wind energy company, Invenergy, was announced on June 17, 2026. In that deal with DOI, Invenergy will relinquish four offshore wind leases, including a proposed 2-gigawatt project off of the Morro Bay, CA, coast as well as leases off of the Maine and New York coasts. That agreement calls for Invenergy to get a $765 million taxpayer funded buyout and then make an equivalent investment in U.S. natural gas and geothermal projects.
As a result of that deal, California issued a subpoena to Invenergy on June 19, 2026, similar to the earlier one issued to GWS.
As a result of these deals with DOI, a total of $2.6 billion of taxpayer funds will be spent just to get power companies not to produce clean energy.
Attorney General Bonta commented on the possible lawsuit by saying, "At a time when the country needs more reliable and sustainable power supply, the Trump Administration is busy using taxpayer money to strike backroom buyouts that make clean-energy projects disappear. California won't stand idly by as the Trump Administration illegally strikes deals to kill offshore wind projects and replace them with more windfalls for his fossil fuel friend; we're putting the administration on notice that we intend to sue. California has already made substantial investments in clean wind energy that have advanced California's clean energy goals, created high-quality jobs, and bolstered our economy. My office will continue to fight back aggressively against the Trump Administration's illegal attacks on wind energy projects."
Added CEC Chair Hochschild, "California strongly condemns yet another reckless Trump Administration misuse of taxpayer dollars that undermines clean energy growth and U.S. energy security. California will continue to lead the way toward a cleaner, more reliable grid powered by domestic resources. Offshore wind remains an essential component of that work."











