California is preparing to sue the Trump administration over its decision to cancel offshore wind leases off the state’s coast. The suit will focus on the lease buyback for Golden State Wind LLC in Morro Bay off the state’s Central Coast.
Attorney General Rob Bonta announced June 23 that California will challenge the federal action in court, contending the administration violated the Outer Continental Shelf Lands Act (OCSLA) and failed to follow required federal administrative procedures when terminating the leases. The state also argues the decision jeopardizes thousands of anticipated jobs, significant port and supply-chain investments, and California’s ability to meet its climate and clean electricity targets.
The dispute marks the latest escalation in the growing conflict between California and the Trump administration over energy policy. While the administration has prioritized expanding domestic oil and gas production and scaling back federal support for offshore wind, offshore wind is a key component of California’s long-term decarbonization strategy. The state’s goal of 100% clean electricity by 2045 includes the development of two to five gigawatts (GW) of floating offshore wind capacity by 2030 and 25 GW by 2045.
Golden State Wind’s 2-gigawatt offshore wind project in the Morro Bay Wind Energy Area was one of five offshore wind developments proposed for California federal waters. In April, Golden State Wind LLC agreed to voluntarily end its lease and to forego future offshore wind development in exchange for a repayment of $120 million in lease fees. The California Energy Commission (CEC) issued an administrative investigative subpoena to Golden State Wind LLC, seeking records on its agreement with the U.S. Department of the Interior.
On June 17, 2026, the Department of the Interior announced that Invenergy will “voluntarily terminate” four offshore wind leases, including OCS-P 0565 in Morro Bay. Invenergy estimated that the lease had 1.5 GW in capacity. The CEC has also subpoenaed a copy of the settlement agreement.