California is investigating one of the Trump administration's deals to end an offshore wind project.
The California Energy Commission said Monday it issued an administrative subpoena to Golden State Wind, a floating offshore wind project proposed off California’s central coast.
The commission said it is seeking documents and information about the company's recent agreement with the Department of the Interior to accept a payout in exchange for voluntarily abandoning its offshore wind lease.
“The Trump administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation,” CEC Chair David Hochschild said.
“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.”
The Trump administration is spending nearly $2 billion to get energy companies to walk away from U.S. offshore wind projects. Interior Secretary Doug Burgum said companies were sold a product that was only viable when propped up by massive taxpayer subsidies when they bid for these offshore wind leases in 2022, under former President Joe Biden.
The Republican administration adopted this strategy after federal courts thwarted President Donald Trump’s efforts to stop offshore wind development through executive action. Three agreements have been announced.
Under the first deal, made public in March, French company TotalEnergies is getting $1 billion — essentially a refund of its leases for offshore wind projects off North Carolina and New York — if it invests the money in fossil fuel projects instead. In the latest deals announced last week, the administration said 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 offshore wind project in the early stages of development off the coasts of New Jersey and New York.
When asked about the subpoena Monday, Ocean Winds said it does not comment on open or potential litigation.
A letter from California Attorney General Rob Bonta’s office to Golden State Wind says the state anticipates potential litigation involving the federal government and parties to lease buyouts impacting California’s energy needs and offshore wind programs. California has invested about $100 million to support offshore wind development in order to accelerate the state's transition to clean energy and address climate change.
Democrats in Congress are investigating, too. 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 TotalEnergies agreement.
