California Sues Trump Administration Over $120 Million Wind Farm Deal
Posted on 08/28/26 at 17:50
- California sues Donald Trump
- Project would generate 2 gigawatts
- California warns about jobs
California has opened a new legal battle against the Trump administration over an energy project that promised investment, jobs, and electricity generation off the state’s central coast.
The state filed a lawsuit Friday challenging the $120 million agreement that allowed Golden State Wind to abandon the development of an offshore wind farm in Morro Bay.
The California Attorney General’s Office argues that the Department of the Interior acted illegally by using those funds to cancel the lease and favor investments linked to fossil fuels.
Attorney General Rob Bonta warned that the decision also jeopardizes $30 million committed to workforce training, supply chain development, and benefits for local communities.
California Challenges $120 Million Wind Farm Deal
Golden State Wind obtained a lease in the Morro Bay Wind Energy Area in 2022 following a competitive federal auction to develop projects off the California coast.
The plan called for a 2-gigawatt offshore wind farm, along with investments supporting workers, suppliers, and communities connected to activities such as fishing.
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However, the Department of the Interior suspended the lease in April through an agreement with Golden State Wind that California is now seeking to invalidate in court.
“The cancellation of the lease agreement would put at risk $30 million intended for workforce training, supply chain development, and benefits for local communities,” Bonta said.
California Warns About Jobs and Wind Energy
The Attorney General’s Office argues that halting this and other developments could affect up to 174,750 jobs and delay the growth of California’s offshore wind industry for years.
According to the lawsuit, Washington “illegally reassigned $120 million” so Golden State Wind could abandon its lease and allocate an equivalent amount to other energy projects.
California maintains that these new investments would be linked to fossil fuel projects outside the state and, therefore, would not contribute to the development of its own energy infrastructure.
Bonta described the arrangement as a “backroom deal” and accused the Trump administration of halting wind projects while promoting oil and gas extraction.
Dispute Over Offshore Wind Energy Continues
The confrontation extends beyond Morro Bay and comes amid a White House offensive against several offshore wind energy projects in the United States.
At the beginning of August, the government reached another agreement involving RWE U.S. Offshore’s abandonment of three major leases located off the coasts of California, New York, and Louisiana.
That agreement includes a payment of $1.22 billion, a figure that illustrates the economic scale of federal decisions involving leases previously intended for offshore wind projects.
According to EFE and Forbes, the courts will now determine whether the administration acted within its authority, while California seeks to preserve a project it considers strategically important for jobs, investment, and clean energy.