California Plans to Sue Federal Government Over Cancellation of 2 GW Floating Offshore Wind Project
2026-06-25 11:53
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en.Wedoany.com Reported - California has formally notified the U.S. Department of the Interior and Golden State Wind (GSW) of its intent to file a lawsuit over a federal agreement with the developer to terminate an offshore wind lease off the central California coast.

California Attorney General Rob Bonta and California Energy Commission (CEC) Chair David Hochschild stated in a notice of intent to sue issued on June 23 that the agreement violates the Outer Continental Shelf Lands Act (OCSLA), threatening the state's offshore wind development plans, clean energy goals, and related public investments. At the heart of the dispute is the Morro Bay offshore wind lease awarded to Golden State Wind in a 2022 federal auction, which was originally intended to support a 2-gigawatt floating wind farm. Golden State Wind is a joint venture between Ocean Winds and Reventus Power.

The Department of the Interior agreed in April 2026 to terminate the lease and provide Golden State Wind with $120 million in compensation, while requiring the company to invest an equivalent amount in fossil fuel projects outside of California. California noted that the agreement was reached without state participation and accused the federal government of canceling a lease area that had already passed federal review and consultation, citing unspecified national security concerns.

The notice of intent to sue gives the Department of the Interior and Golden State Wind 60 days to address the alleged violations before California files a lawsuit. The state argues that canceling the project could undermine over $100 million in public investments made to prepare port, transmission infrastructure, and offshore wind development supply chains. The California Energy Commission stated that if the agreement is enforced, the lease buyout could set back the state's emerging offshore wind industry by several years.

The Department of the Interior announced a similar agreement with Invenergy on June 17, in which the developer agreed to relinquish four offshore wind leases in exchange for $765 million in refunds and a commitment to invest in natural gas and geothermal projects elsewhere in the United States. Invenergy's projects include a 2 GW lease area in the Morro Bay Wind Energy Area, which the company acquired in 2022 and later named Even Keel Wind. The California Energy Commission stated that after the announcement of the agreement between Invenergy and the federal government, the commission issued an investigative subpoena to Invenergy, requesting a copy of the settlement agreement (which the Department of the Interior has not yet made public) and related information. The commission had issued a similar subpoena to Golden State Wind in May after reaching an agreement with the Department of the Interior.

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