California files Notice of Intent to File Suit to federal DOI and Golden State Wind over cancelled offshore wind farm plans

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.

Photo credit: Golden State Wind website (Fair Use)

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."

California Energy Commission subpoenas Golden State Wind for possible illegal federal buyout to abandon its offshore wind projects

The California Energy Commission (CEC) has issued a subpoena to Golden State Wind as part of its investigation into whether the company illegally accepted a buyout from the Trump administration to abandon its plans for a major offshore wind project off of the coast of California. The investigation revolves around  the premature relinquishment of Lease OCS-P 0564, the circumstances surrounding it, and potential violations of law in connection with offshore wind lease buyouts.

Photo Credit: Golden State Wind website (Fair Use)

With the subpoena, the CEC is asking for documents and information related to its recent agreement with the U.S. Department of the Interior to voluntarily abandon its offshore California wind lease in exchange for a $120 million payout and agreeing to make an equivalent investment in oil and gas projects outside of California. That agreement would not only result in Golden State Wind abandoning its existing lease in the Morro Bay Wind Energy Area off of the Central California coast but also forgoing any future offshore wind projects in the United States.

According to Golden State's website, its planned floating offshore wind project was “expected to generate up to 2 gigawatts (GW) of clean offshore wind energy” and “help California meet its 100% clean electricity by 2045 goal.”

“The Trump Administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation” said CEC Chair David Hochschild. “Californians deserve immediate answers about the nature of this payout. Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”

 

In the subpoena, a copy of which is available here, CEC asserts that "...the buyout deal undermines significant investments made by the State of California and other public entities in California to develop the transmission and port infrastructure necessary for offshore wind projects, which were made in reliance on commitments by Golden State Wind and other companies who hold leases to develop offshore wind projects off the coast of California, as well as by the federal government."

According to the CEC, those commitments exceed $100 million dollars, which include, but are not limited to: 

1. $42.75 million awarded through the Waterfront Facilities Improvement Program to five port projects to support the staging, integration, operations, and/or maintenance of offshore wind turbines. 

2. $10.5 million awarded to the Humboldt Bay Harbor District to develop an offshore wind port facility to support staging, integration, operations, and maintenance of offshore wind turbines. 

3. $42 million awarded to technology providers and national laboratories to develop innovative anchoring systems, mooring lines, floating substation designs, and environmental monitoring tools.

4. $3 million for offshore wind monitoring and ecosystem protection research and development at the Ocean Protection Council. 

5. $1 million to develop the AB 525 Offshore Wind Energy Strategic Plan and its various technical sub-reports, the AB 3 Second Phase Port Readiness Study, and Offshore Wind Supply Chain Study.

Additionally according to the subpoena, "Golden State Wind’s lease also includes bid credit commitments of more than $24 million for workforce training and supply chain (p. C-22 of the lease), and $6 million in Lease Use Area Community Benefits Agreements (p. C-27 of the lease), plus any applicable interest and penalties. The company’s strategy for how to fulfill these funding commitments was included in its December 2022 lease auction bid package and indicates how they would have conferred direct benefits to California and other in-state entities and must be paid back if the company forfeits its lease."