New York and California sue to block offshore wind deal reversals
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New York and California are taking legal action against the U.S. Department of Interior to prevent the agency from cancelling offshore wind leases and reimbursing developers.
The states, along with seven others, filed lawsuits challenging agreements made with developers Bluepoint Wind and Invenergy. These agreements involve the federal government paying companies to abandon offshore wind projects and then reinvesting those funds into fossil fuel infrastructure.
California Attorney General Rob Bonta stated the states aim to hold the current administration accountable and prevent interference with climate action. In 2022, Ocean Winds bid $765 million for a lease to build a 2.4-gigawatt wind project near New York and New Jersey, but the Trump administration agreed to reimburse the company and cancel the lease in exchange for investment in a liquefied natural gas facility.
Similarly, Invenergy received $653 million for cancelled leases off the coasts of New York, New Jersey, and Maine, and $111 million for one near California. State officials argue these lease cancellations violate laws like the Outer Continental Shelf Lands Act, which requires federal consultation with states regarding offshore energy leases, and misuse funds from the federal Judgment Fund.
While a legal victory won’t immediately restore cancelled wind energy plans, New York officials believe it will demonstrate a commitment to defending renewable energy projects and create a more stable investment environment. They are currently considering extending the life of existing fossil fuel plants due to concerns about power supply.
