California threatens legal action over offshore wind lease buyout

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California has issued a Notice of Intent to Sue the US Department of the Interior (DOI) and offshore wind developer Golden State Wind over an agreement that would see the company relinquish its offshore wind lease off the state's central coast.

The notice, issued by California Attorney General Rob Bonta and the California Energy Commission (CEC), argues that the agreement violates provisions of the Outer Continental Shelf Lands Act governing offshore energy development.

The disputed lease was awarded in 2022 for the proposed Golden State Wind project in the Morro Bay Wind Energy Area. According to California officials, the project had the potential to deliver up to 2GW of offshore wind capacity.

State authorities argue that the lease termination could affect offshore wind development plans, public investments in supporting infrastructure and wider clean energy objectives.

Under the notice, DOI and Golden State Wind have 60 days to respond before legal proceedings can be initiated.

The action follows a similar agreement involving offshore wind developer Invenergy, which recently agreed to relinquish several offshore wind leases in US waters.

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