California vows suit over Trump deal killing offshore wind, rewarding oil and gas

A Trump administration deal that would unwind a major offshore wind project off California's Central Coast while linking the exit to new oil and gas spending has set up a likely court fight with the state.

The clash also adds to a wider argument about why the United States is backing away from clean energy just as states such as California are building toward it.

What happened?

Unless the dispute is settled, California says it will sue within 60 days. State officials said Tuesday that they had notified the Department of the Interior of that plan over the Golden State Wind lease buyback, according to the Associated Press.

The deal involves Golden State Wind, a proposed floating offshore wind project near. Under the arrangement, the project could recover about $120 million in lease payments after a matching amount is invested in Gulf Coast oil and gas assets, infrastructure, or projects.

A separate agreement worth $765 million is also ending another California floating wind project backed by Chicago-based Invenergy.

That would be a major blow to a state that has made offshore wind central to its energy plans. California is targeting 25 gigawatts of offshore wind by 2045, enough to power about 25 million homes and provide roughly 13% of the state's electricity.

Why does it matter?

According to the AP, California says it has spent more than $100 million over the past decade preparing ports, transmission systems, and local industries for offshore wind. If the projects are abandoned, officials say that money could be stranded and communities that expected jobs and infrastructure upgrades could miss out.

The cancellations could also weaken California's push for a cleaner and more dependable power system. Offshore wind has been an important part of the state's strategy for cutting air pollution while using the strong, steady winds off its coast.

Sending replacement investment into fossil fuel projects outside the state could further delay the transition to cleaner household power and leave communities more exposed to the pollution and price swings linked to oil and gas.

What are people saying?

California Energy Commission Chair David Hochschild called the lease buybacks "a strategic mistake of colossal proportions."

He added, per the AP, "Countries that thrive around the world are those that lean into innovation, into the energy sources of the future."

California Attorney General Rob Bonta said the state will not stand by as the administration "illegally strikes deals to kill offshore wind projects and replace them with more windfalls for his fossil fuel friends."

Federal officials see it differently.

"Under President Trump, companies are shifting investment back toward dependable, secure energy infrastructure that can power our economy and lower utility costs," Interior Secretary Doug Burgum said.

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