California opened an investigation into a Trump administration deal aimed at ending an offshore wind project, the California Energy Commission said Monday, setting up a potential legal fight over whether the state can challenge federal lease buyouts. The commission said it issued an administrative subpoena to Golden State Wind for documents and information about the company’s agreement with the U.S. Department of the Interior that would include a payout in exchange for voluntarily abandoning its offshore wind lease.
In a statement, California Energy Commission Chair David Hochschild criticized the arrangement as spending taxpayer money “on backroom deals” that, in the commission’s view, would “turn back the clock on innovation.” Hochschild said “Californians deserve immediate answers about the nature of this payout,” and argued that “Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”
The case centers on Golden State Wind, a floating offshore wind project proposed off California’s central coast, and the developer’s recent federal agreement. The commission said it is seeking information specifically about the payout terms and the circumstances surrounding Golden State Wind’s decision to step away from the lease.
The Interior Department and the broader Trump administration have described the lease-ending strategy as part of a push to halt offshore wind development. Interior Secretary Doug Burgum said companies were sold a product that was only viable when propped up by massive taxpayer subsidies during their bids for the offshore wind leases in 2022 under former President Joe Biden.
The administration’s approach, the report said, has included multiple agreements with developers after federal courts blocked Trump’s efforts to stop offshore wind development through executive action. The report described a separate earlier deal announced in March in which French company TotalEnergies would receive $1 billion—described as essentially a refund of its leases off North Carolina and New York—if it invests that money in fossil fuel projects instead.
In the newer set of deals, the administration said Golden State Wind and Bluepoint Wind agreed to end their leases for reimbursements totaling nearly $900 million, with the condition that they invest equally in fossil fuels. Bluepoint Wind is an offshore project in the early stages of development off the coasts of New Jersey and New York, the report said. Golden State and Bluepoint are both co-owned by Ocean Winds, a joint venture of EDP Renewables and Engie, according to the report.
When asked about the subpoena Monday, Ocean Winds said it does not comment on open or potential litigation. The commission’s investigation, the report said, could also influence additional legal action, including a dispute from California aimed at safeguarding renewable energy projects and related state-backed investment and jobs.
Eddie Ahn, executive director of Brightline Defense, an environmental justice nonprofit that works to advance offshore wind in California, said the investigation sets the stage for legal action. The report also cited a letter from California Attorney General Rob Bonta’s office to Golden State Wind, saying the state anticipates potential litigation involving the federal government and parties to lease buyouts that could affect California’s energy needs and offshore wind programs.
California has invested about $100 million to support offshore wind development, the report said, as the state looks to accelerate its transition to clean energy and address climate change. Democrats in Congress are investigating alongside the state: U.S. Rep. Jared Huffman of California, the top Democrat on the House Natural Resources Committee, and U.S. Rep. Jamie Raskin, the ranking Democrat on the House Judiciary Committee, are demanding information about the TotalEnergies agreement.