State officials in California are demanding transparency regarding a Trump administration arrangement that compensates an energy company for abandoning its offshore wind development plans.
The California Energy Commission announced Monday it has served Golden State Wind with an administrative subpoena. The company had proposed a floating wind energy facility off the state’s central coastline.
Officials want access to records and details surrounding the firm’s recent arrangement with federal Interior Department officials. The deal provides financial compensation in return for the voluntary surrender of the company’s offshore wind development rights.
“The Trump administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation,” stated CEC Chair David Hochschild. “Californians deserve immediate answers about the nature of this payout. Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”
The current administration is allocating close to $2 billion to persuade energy firms to abandon offshore wind developments across the United States. Interior Secretary Doug Burgum has argued that companies purchased lease rights for projects that could only succeed with substantial government subsidies when they made bids in 2022 during Joe Biden’s presidency.
This approach emerged after federal courts blocked President Trump’s attempts to halt offshore wind development through executive orders. Officials have announced three such agreements to date.
The initial arrangement, revealed in March, provides French corporation TotalEnergies with $1 billion – essentially reimbursing their lease costs for wind projects off North Carolina and New York – contingent on redirecting that investment toward fossil fuel ventures. Last week’s announcements detailed how Golden State Wind and Bluepoint Wind accepted lease terminations worth nearly $900 million combined, with requirements to match those funds in fossil fuel investments.
Ocean Winds, a partnership between EDP Renewables and French energy company Engie, holds ownership stakes in both Golden State and Bluepoint operations. Bluepoint Wind represented an early-stage offshore development planned for waters off New Jersey and New York.
Ocean Winds declined to discuss the subpoena Monday, stating the company avoids commenting on ongoing or potential legal proceedings.
California Attorney General Rob Bonta’s office informed Golden State Wind that the state expects possible litigation involving federal officials and parties involved in lease buyouts that affect California’s energy requirements and offshore wind initiatives. The state has committed approximately $100 million toward offshore wind development to accelerate clean energy adoption and combat climate change.
Congressional Democrats are also conducting their own investigation. Representatives Jared Huffman of California, who leads Democrats on the House Natural Resources Committee, and Jamie Raskin, the top Democrat on the House Judiciary Committee, are requesting information about the TotalEnergies arrangement.
