California Attorney General Rob Bonta and the California Energy Commission (CEC) have filed a lawsuit against the Trump administration and Invenergy over an agreement to terminate Invenergy’s offshore wind lease in the Morro Bay Wind Energy Area off the central California coast.
Under the agreement announced by the U.S. Department of the Interior (DOI) on 17 June 2026, more than $111 million in federal funds would be paid to Invenergy to relinquish the lease. Invenergy would also be required to have its corporate affiliates invest an equivalent amount in fossil fuel or geothermal projects outside California.
California argues that the agreement violates the US Constitution and several federal laws, including the Administrative Procedure Act, Coastal Zone Management Act, National Environmental Policy Act, Judgment Fund Act and Outer Continental Shelf Lands Act. The state is asking the court to invalidate the agreement and prevent its implementation.
Invenergy acquired the lease in 2022 following a federal auction, paying more than $111 million for the lease covering a potential offshore wind project of up to 2 GW. The company also made commitments of more than $30 million for workforce training, supply chain development and benefits for local communities.
California has invested more than $100 million in ports, transmission systems and other infrastructure to support offshore wind development. The state’s offshore wind strategic plan calls for 25 GW of offshore wind capacity by 2045, which the state estimates could provide around 13% of its electricity supply and power roughly 25 million homes.
The lawsuit is the second filed by California against an offshore wind lease buyout this year. In August, the state filed a separate lawsuit over the cancellation of Golden State Wind’s lease in the same Morro Bay Wind Energy Area.
