California Attorney General Rob Bonta and the California Energy Commission (CEC) have filed a lawsuit against the Trump administration and Golden State Wind over the cancellation of an offshore wind lease off California's Central Coast. The lawsuit seeks to have the agreement overturned and prevent the administration from implementing it.
Under an agreement announced by the U.S. Department of the Interior (DOI) in April 2026, the federal government agreed to pay Golden State Wind $120 million to abandon its lease in federal waters off California. The company is also required to invest an equal amount in out-of-state fossil fuel projects.
Golden State Wind acquired the lease in 2022 following an offshore wind auction, paying $120 million for the rights to develop a 2 GW offshore wind farm in the Morro Bay Wind Energy Area. It also committed more than $30 million to workforce training, supply chain development and local community benefits.
DOI said unspecified national security concerns justified terminating the lease. California disputes this, noting that the lease area had previously undergone federal review and consultation with the U.S. Department of Defense.
The state argues that the agreement violates several federal laws, including the Outer Continental Shelf Lands Act, which limits DOI's authority to cancel offshore wind leases. California also argues that the payment from the federal Judgment Fund was unlawful because it was not made to settle an existing lawsuit.
California's offshore wind strategic plan targets 25 GW of offshore wind capacity by 2045. The state says the cancelled projects could affect more than 174,750 jobs, infrastructure investment and long-term economic development, including planned offshore wind activity at the ports of Long Beach and Humboldt.
