California Attorney General Rob Bonta and the California Energy Commission filed a federal lawsuit Tuesday challenging a U.S. Department of the Interior deal that reallocated $111 million in taxpayer funds to buy out Invenergy's offshore wind lease in the Morro Bay Wind Energy Area off the Central Coast. Invenergy had won the lease during a 2022 federal auction before agreeing to the federal buyout in June.
According to a statement from Rob Bonta
, the effort amounts to the Trump administration paying to make California's offshore wind projects disappear at a moment when the state needs more reliable, clean power. Bonta said California will continue taking action to defend its clean energy future, framing the $111 million reallocation as a giveaway to fossil fuel allies rather than a legitimate legal settlement.
The complaint, detailed by the California Energy Commission, alleges the buyout violates the Outer Continental Shelf Lands Act, the Administrative Procedure Act, and the Judgment Fund Act by fabricating a settlement for litigation Invenergy never actually filed — a maneuver the state says was designed to bypass statutory caps on lease cancellation payouts. Before filing suit, the California Department of Justice and the Energy Commission had issued a formal 60-day Notice of Intent to Sue in July, giving the federal government and Invenergy a window to correct the alleged violations following June's initial buyout announcement.
Part of a Broader Legal Offensive
Tuesday's filing is California's second major legal challenge against federal wind buyouts this year. It follows an August 28 lawsuit targeting a separate $120 million federal buyout with Golden State Wind, a deal that required the developer to reinvest federal funds into out-of-state oil and gas projects, according to the Los Angeles Times. Golden State Wind had paid $120 million for its own Morro Bay lease in 2022 before accepting the federal buyout terms.
California is not fighting alone. The Los Angeles Times reported that a group of seven states sued over a separate TotalEnergies deal.
What's Left of California's Offshore Wind Pipeline
The stakes trace back to California's own strategic plan, which mandates developing 25 gigawatts of offshore wind capacity by 2045 — enough to supply roughly 13% of the state's electricity and power about 25 million homes, per the Los Angeles Times. State agencies have already committed more than $100 million in public funds to upgrade seaports, transmission lines, and supply chain networks for floating offshore wind installations.
Following 2026 buyout agreements with Golden State Wind, Invenergy, and RWE — which accepted a $1.22 billion federal deal to cancel its Humboldt and East Coast leases — only two active offshore wind leases now remain off the California coast. The federal government had originally auctioned five lease areas off the state in December 2022, the Los Angeles Times reported.
Jobs and Community Funds at Risk
The California Energy Commission estimates federal cancellations of offshore wind projects threaten more than 174,750 projected jobs statewide. Invenergy also made additional commitments of more than $30 million for workforce training, supply-chain development, and local-community benefits.
The broader dispute comes as California pursues statutory 2045 clean energy mandates backed by more than $100 million in state port and grid investments. With only two leases remaining active off the California coast, the outcome of these court challenges will determine whether the state can preserve its 25-gigawatt offshore wind target or whether federal buyouts stall floating wind development along the Pacific Coast for years to come.
