SAN FRANCISCO — A decision by an offshore wind developer to relinquish a California federal lease has intensified opposition from state officials and clean-energy advocates, who say the move threatens planned renewable energy development along the Pacific coast. Federal records show the U.S. Department of the Interior has moved to cancel and rescind offshore wind leases under agreements with developers, including Invenergy California Offshore LLC, while disputes over the agreements continue.
The Interior Department’s Bureau of Ocean Energy Management (BOEM) said Invenergy’s lease, identified as Lease No. OCS-P 0565, was cancelled following a settlement agreement. The lease covered an offshore wind area awarded during a 2022 competitive lease sale for waters off central and northern California.
California officials have challenged federal lease buyout agreements, arguing that they could undermine the state’s offshore wind ambitions and the economic activity expected from the industry. The California Energy Commission said it issued a subpoena seeking information related to the agreement involving Golden State Wind, another offshore wind developer, and later announced plans to challenge a separate agreement involving Invenergy.
California Attorney General Rob Bonta and Energy Commission Chair David Hochschild said the state intended to pursue legal action over the Invenergy agreement, alleging that the federal government’s arrangement improperly used public funds to remove an offshore wind project from development. The federal government and companies involved have disputed such characterizations, with the Interior Department maintaining that the agreements are part of its management of offshore energy leasing policy.
The lease changes come as the Trump administration reviews offshore wind leasing and permitting practices. BOEM said the department was implementing a federal pause on new or renewed offshore wind leasing actions while the review was underway.
Offshore wind development has been a major component of California’s long-term clean energy planning, with state officials previously identifying offshore wind as a potential source of electricity generation and economic investment. The federal government, however, has pursued policies aimed at shifting some energy investment toward conventional energy projects.
The status of remaining offshore wind leases off California’s coast remains under federal review. BOEM continues to maintain records for active and cancelled lease areas, while legal challenges and administrative proceedings related to several lease agreements remain unresolved.
