California probes Trump administration deal to cancel offshore wind lease

May 4, 2026 7:50 PM EDT

Wind turbines are shown in Palm Springs, California, U.S., October 12, 2024. REUTERS/Mike Blake

May 4 (Reuters) - California ‌energy officials ​on ​Monday opened an investigation into the Trump administration's agreement with an offshore wind company ‌to cancel a planned project off the state's ⁠central coast.

The state said it was seeking information about the $120 ‌million government payout to ‌determine whether it violated the law.

The refunds of offshore lease payments, in exchange for fossil fuel ​investments, are part of a recent strategy in President Donald Trump's year-long effort to stymie the ⁠nation's young offshore wind industry.

The California Energy Commission said it had ​issued a subpoena to Golden State Wind LLC, a joint venture between Ocean Winds and ​London-based offshore wind investment firm ‌Reventus Power. Ocean Winds is a partnership between France's ENGIE and Portugal's EDP ⁠Renewables.

"Californians deserve immediate answers about the nature of this payout," CEC Chair David Hochschild said in a statement. "Taxpayer ⁠dollars should be used to build a sustainable energy future, ​not to pay to make projects disappear."

California has a goal to install 25 gigawatts of offshore wind by 2045 to ‌help meet its climate change goals. The state said it had invested more ‌than $100 million to develop port and transmission infrastructure needed ⁠for offshore wind.

Golden ‌State Wind and Interior ​Department officials were not immediately available for comment.

(Reporting by Nichola Groom; Editing by Stephen ‌Coates)



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