California energy regulators launched an investigation Monday into a Trump administration agreement that resulted in a $120 million payment to terminate an offshore wind development project along the state’s central coastline.
State officials are demanding details about the substantial government payment to assess whether any laws were broken in the transaction.
The lease payment reimbursements, which came with requirements for fossil fuel investments, represent part of President Donald Trump’s ongoing campaign to undermine America’s emerging offshore wind sector over the past year.
The California Energy Commission announced it had served a subpoena on Golden State Wind LLC, a collaborative venture between Ocean Winds and Reventus Power, a London-based offshore wind investment company. Ocean Winds operates as a joint enterprise involving France’s ENGIE and Portugal’s EDP Renewables.
“Californians deserve immediate answers about the nature of this payout,” stated CEC Chair David Hochschild. “Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”
The state has established an objective to deploy 25 gigawatts of offshore wind capacity by 2045 as part of its climate change mitigation strategy. California officials noted they have committed over $100 million toward developing necessary port facilities and transmission infrastructure for offshore wind projects.
Representatives from Golden State Wind and the Interior Department did not respond immediately to requests for comment.
