California is investigating one of the Trump administration's deals to terminate an offshore wind project, the California Energy Commission announced Monday. The commission issued an administrative subpoena to Golden State Wind, a floating offshore wind project proposed off California's central coast, seeking documents about its agreement with the Department of Interior to accept a payout in exchange for voluntarily abandoning its offshore wind lease.
Commission Chair Criticizes Deal
CEC Chair David Hochschild said in a statement, "The Trump administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation. Californians deserve immediate answers about the nature of this payout. Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear."
Background of the Buyouts
The Trump administration is spending nearly $2 billion to persuade energy companies to walk away from U.S. offshore wind projects. Interior Secretary Doug Burgum argued that companies were sold a product only viable when propped up by massive taxpayer subsidies when they bid for offshore wind leases in 2022 under former President Joe Biden.
This strategy emerged after federal courts blocked President Donald Trump's executive actions to halt offshore wind development. Three agreements have been announced so far.
Details of the Deals
Under the first deal, made public in March, French company TotalEnergies is receiving $1 billion—essentially a refund for its leases off North Carolina and New York—if it invests the money in fossil fuel projects instead. In the latest deals announced last week, Golden State Wind and Bluepoint Wind agreed to end their leases in exchange for reimbursements totaling nearly $900 million, provided they invest equally in fossil fuels.
Both Golden State and Bluepoint are co-owned by Ocean Winds, a joint venture of EDP Renewables and French energy giant Engie. Bluepoint Wind was an early-stage offshore wind project off New Jersey and New York. Ocean Winds declined to comment on the subpoena, stating it does not discuss open or potential litigation.
California's Response
A letter from California Attorney General Rob Bonta's office to Golden State Wind indicated that the state anticipates potential litigation involving the federal government and parties to lease buyouts that impact California's energy needs and offshore wind programs. California has invested about $100 million to support offshore wind development to accelerate its transition to clean energy and address climate change.
Congressional Investigations
Democrats in Congress are also investigating. U.S. Reps. Jared Huffman of California, the top Democrat on the House Natural Resources Committee, and Jamie Raskin, the ranking Democrat on the House Judiciary Committee, are demanding information about the TotalEnergies agreement.
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