California Attorney General Rob Bonta and California Energy Commission (CEC) Chair David Hochschild have sent a Notice of Intent to Sue challenging an agreement between the U.S. Department of the Interior (DOI) and Golden State Wind (GSW). In the Notice of Intent to Sue sent to DOI and GSW, California alleges that the agreement violates the Outer Continental Shelf Lands Act (OCSLA), which governs the offshore wind leasing programme. The notice provides a 60-day period for DOI and GSW to address the alleged OCSLA violations before California files suit.
Under the agreement, DOI would reallocate $120 million in federal taxpayer funds to compensate GSW for relinquishing its offshore wind energy lease in federal waters off California’s Central Coast. The agreement also requires GSW to invest an equivalent amount in out-of-state fossil fuel projects. According to California, the lease buyout could delay development of the state’s offshore wind industry. Last week, the US administration entered into a similar agreement with Invenergy involving a payment of $765 million to relinquish offshore wind leases.
California’s offshore wind strategic plan calls for the development of 25 GW of offshore wind capacity by 2045, enough to power approximately 25 million homes and provide around 13% of the state’s electricity supply.
In 2022, following a competitive auction for offshore wind energy leases, GSW paid $120 million to acquire an offshore wind lease in the Morro Bay Wind Energy Area off the Central California coast for a 2 GW offshore wind project. The company also committed more than $30 million to workforce training, supply chain development and benefits for local communities, including fishermen’s associations.
On 27 April 2026, DOI announced it would terminate the lease through an agreement with GSW that it said settled litigation that had not been filed. DOI stated that national security concerns justified the cancellation, despite the lease area having previously undergone review and approval following consultation with the U.S. Department of Defense.
California argues that cancellation of the Golden State Wind project would affect the state’s clean energy and climate goals, as well as its economy. Offshore wind is expected to contribute to these objectives because of the strong and consistent wind resources off California’s coast.
Since federal offshore wind planning began off California’s coast a decade ago, the state has invested in port readiness, transmission planning and stakeholder engagement. California states that more than $100 million has been invested in ports, transmission systems and industries intended to support offshore wind generation. According to the state, these investments could be affected if offshore wind development does not proceed.
The Notice of Intent to Sue is part of a broader response by California to actions affecting offshore wind development. In May, the CEC issued an administrative investigative subpoena to GSW seeking documents and information related to the agreement with DOI. The CEC stated that the investigation is intended to protect more than $100 million in legislative and voter-approved investments in California’s offshore wind industry.
Following the announcement of a similar agreement involving Invenergy, the CEC issued an administrative investigative subpoena to Invenergy on 23 June 2026. The subpoena seeks a copy of the agreement, which DOI has not made public, as well as information regarding its basis, negotiation and impact.
According to the Department of the Interior, Invenergy agreed to voluntarily relinquish four offshore wind leases, including the lease for its 2 GW Morro Bay project and leases off the coasts of Maine and New York. In return, the company would receive $765 million in federal funding and make an equivalent investment in USA natural gas and geothermal projects.
For nearly a decade, California has worked with federal agencies, developers, tribes, labour groups, ports, fishermen, local governments and communities to prepare for offshore wind development. The state says that agencies and taxpayers have made significant investments in planning and port readiness and that it will review investigative materials and take further action as appropriate.
