In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
In yet another escalation of President Trump’s efforts to obstruct clean energy projects in favor of fossil fuels, the administration this week said it will pay two energy companies to abandon their offshore wind projects in federal waters — including one off Morro Bay.
The move raises questions about how California will progress toward its clean energy goals, which include 25 gigawatts of offshore wind power by 2045. The agreement with Golden State Wind to voluntarily end its lease in the Pacific leaves only four leases intact along the West Coast: two off Morro Bay and two off Humboldt Bay.
In all, the U.S. Department of the Interior said it will pay a total of $885 million to Golden State Wind and another company, New Jersey-based Bluepoint Wind, to end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.”
The move follows a similar $1-billion deal with the French firm TotalEnergies, which agreed in March to walk away from wind leases off the North Carolina and New York coasts.
But some, including Democratic lawmakers, have questioned the legality of paying the companies to walk away, and their use of taxpayer dollars.
In an April 6 letter to the Interior Department and the Department of Justice, U.S. Reps. Jared Huffman (D-San Rafael) and Jamie Raskin (D-Md.) described the $1-billion deal with TotalEnergies as “outrageous” and “almost certainly unlawful.”
“There is no clear legal basis for this closed-door settlement, which allows the administration to subsidize its preferred energy sources regardless of what’s best for the American people,” the lawmakers wrote. “President Trump has been relentless in his attacks on affordable, clean energy. This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer.”
Environmental groups said the latest move could undermine California’s progress on affordable energy and called Golden State Wind’s departure a “missed opportunity.”
“Offshore wind stands out as a vital clean energy solution that perfectly complements our existing solar and storage investments,” said Laura Deehan, state director with the nonprofit Environment California. “It harnesses the strongest winds off our coast specifically during peak evening demand, providing a clean alternative that stabilizes energy prices for everyone.”
The California project was expected to generate up to 2 gigawatts of clean offshore wind energy, or enough to power about 1.1 million homes, according to Golden State Wind, which is a joint venture between developers Ocean Winds and Reventus Power.
Under its agreement with the federal government, Golden State Wind will now be eligible to recover about $120 million in lease fees after it makes an equal investment to develop U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” read a statement from Michael Brand, chief executive of Ocean Winds North America. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners, which is part of BlackRock. Its project was a 2.4-gigawatt wind farm in the early stages of development off the coast of New Jersey and New York.
In its place, the company has committed to invest up to $765 million in a U.S.-based liquefied natural gas facility, the amount of its original wind-power bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.
Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.
President Trump has been notoriously hostile toward offshore wind, including canceling federal funding and ordering halts to wind projects nearing completion along the East Coast. Last year, his administration terminated nearly half a billion dollars in support for offshore wind development in Northern California’s Humboldt Bay.
Interior Secretary Doug Burgum, who also has been critical of offshore wind, said Monday that the industry was “propped up by massive taxpayer subsidies” when the companies bid for their leases in 2022.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum said.
But Adam Stern, executive director of the trade group Offshore Wind California, was optimistic the state can stay the course. Much of California’s strategy has been to focus on land-side preparations within its jurisdiction.
“We expect that when California is ready to put steel in the water, there will be a full slate of developers on board to help build out this important renewable energy resource as a key part of the state’s clean power future,” he said.
