California filed a lawsuit against the U.S. Department of the Interior and offshore wind developer Golden State Wind, challenging an agreement reached earlier this year that terminated a planned floating wind farm project off the state’s Central Coast. According to the filing by California Attorney General Rob Bonta in U.S. District Court for the northern district of California, the April agreement violated federal law and should be invalidated.
The state contends that the Interior Department unlawfully used $120 million in taxpayer funds to reimburse Golden State Wind for relinquishing an offshore wind lease the company had obtained through a 2022 federal auction. Golden State Wind, formed as a joint venture between UK-based Reventus Power and Ocean Winds—a partnership between French energy company ENGIE and Portuguese firm EDP Renewables—had been developing a two-gigawatt floating offshore wind facility.
The canceled project carried significant economic implications for California. The state noted that Golden State Wind had planned to invest approximately $30 million in workforce training, supply-chain development, and community benefits. The termination of the project means the loss of thousands of planned jobs and approximately $100 million in projected state investments that would not materialize.
California’s legal challenge raises questions about the authority used to terminate the wind lease agreement and the appropriateness of federal expenditure to facilitate that cancellation. The outcome of the case remains uncertain, particularly given current judicial considerations that may arise if the matter proceeds through higher court appeals.
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