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California probes Trump administration deal to cancel offshore wind lease

By Thomson Reuters May 4, 2026 | 6:52 PM

May 4 (Reuters) – California energy officials on Monday opened an investigation into the Trump administration’s agreement with an offshore wind ​company to cancel a planned project ‌off the state’s central coast.

The state said it was seeking information about the $120 million government payout to determine whether it violated the law.

The refunds of ‌offshore ​lease payments, in exchange ⁠for fossil fuel investments, ⁠are part of a recent strategy in President Donald Trump’s year-long effort to stymie the nation’s young offshore wind industry.

The California ​Energy Commission said it had issued a subpoena to Golden State Wind LLC, ⁠a joint venture between Ocean ⁠Winds and London-based offshore wind ​investment firm Reventus Power. Ocean Winds is a ​partnership between France’s ENGIE and Portugal’s EDP ‌Renewables.

“Californians deserve immediate answers about the nature of this payout,” CEC Chair David Hochschild said in a statement. “Taxpayer dollars should be used ⁠to build a sustainable energy future, not to pay to make projects disappear.”

California has a goal ⁠to install ‌25 gigawatts of offshore wind by ⁠2045 to help meet its ​climate ‌change goals. The state said it ​had invested ⁠more than $100 million to develop port and transmission infrastructure needed for offshore wind.

Golden State Wind and Interior Department officials were not immediately available for comment.

(Reporting by Nichola Groom; Editing by ​Stephen Coates)