On September 22, 2026, California Attorney General Rob Bonta and the California Energy Commission sued the Trump administration and Invenergy to block an agreement terminating Invenergy’s offshore wind energy lease off California’s Central Coast. On June 17, 2026, the U.S. Department of the Interior (DOI) announced an agreement to buy out Invenergy’s Morro Bay Wind Energy Area lease with more than $111 million in taxpayer funds, while requiring the company’s affiliates to invest an equivalent amount in out-of-state fossil fuel or geothermal projects. California argues that the agreement unlawfully circumvents federal offshore leasing requirements and threatens the state’s investments in offshore wind infrastructure, clean energy development, and jobs. 

In 2022, Invenergy paid the federal government more than $111 million for the lease to develop an offshore wind project, along with commitments of more than $30 million for workforce training, supply-chain development, and benefits for local communities, including fishermen’s associations. California has separately invested more than $100 million to prepare its ports, transmission systems, and industries for offshore wind development. DOI subsequently announced that it would cancel Invenergy’s lease through an agreement that purported to “settle” litigation that Invenergy never filed concerning agency action that DOI never took. DOI cited unspecified national security concerns despite the federal government having previously reviewed and approved the lease area following years of analysis and consultation with the Department of Defense.  

The lawsuit alleges that DOI’s lease buyout violates the Outer Continental Shelf Lands Act, Administrative Procedure Act, Coastal Zone Management Act, National Environmental Policy Act, Judgment Fund Act, federal funding laws, and the Constitution. California argues that the administration improperly used a so-called settlement to bypass statutory requirements governing offshore energy leases, including California’s participation rights and limits on federal payments when leases are cancelled. California is asking the court to strike down the agreement and prevent the administration from implementing the lease cancellation and taxpayer-funded payment to Invenergy.

At a time when we need more reliable, clean energy, President Trump is trying to send $111 million to his fossil fuel industry friends and wants taxpayers and working families to cover the tab. This outrageous abuse of taxpayer dollars will damage the offshore wind industry and create unnecessary obstacles to clean and reliable energy powering our homes and economies. During Climate Week and all year round, we’re focused on sustainable energy, mitigating environmental impacts, and taking action when our clean energy future is attacked. California is not here to foot the bill — we have the receipts and we’re asking the court to strike down this blatantly unlawful deal.Attorney General Rob Bonta