The California Energy Commission announced that it issued an administrative investigative subpoena to Golden State Wind LLC, seeking information related to the company’s agreement with the U.S. Department of the Interior to abandon its offshore wind lease.
Golden State Wind agreed to end its offshore wind lease located in the Morro Bay Wind Energy Area. In exchange for ending its operations, Golden State Wind will receive a $120 million payout from the federal government.
“The Trump Administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation,” CEC Chair David Hochschild said in a statement. “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.”
In April, the Department of the Interior reached agreements with Bluepoint Wind and Golden State Wind to end offshore wind leases. “These historic agreements provide dollar-for-dollar reimbursement for offshore wind leases that have been impractical to develop without relying on taxpayer subsidies,” the agency said. “By cancelling these leases and promoting investments away from intermittent, higher-cost energy sources toward proven conventional solutions, these agreements support mutually beneficial investments that will now generate returns for American taxpayers.”
As the Trump administration moves away from offshore wind leases, it is instead expanding offshore oil drilling leases. The move sparked backlash among California leaders. In March, the Trump administration invoked the Defense Production Act to order an oil company to restart operations in California. By directing Sable Offshore Corporation to restore its operations of the Santa Ynez Unit and Santa Ynez Pipeline System, potential supply disruptions due to California policies can be mitigated.
