California regulators said on Monday they have launched an investigation into a federal agreement that resulted in the cancellation of a proposed offshore wind project off the state’s central coast.
The California Energy Commission (CEC) said it is seeking details about a $120 million refund of offshore lease payments issued by the federal government. State officials want to determine whether the transaction complied with applicable law, the CEC said.
The payouts, which effectively refunded offshore lease fees in return for commitments to invest in fossil fuel projects, form part of a broader effort by the Trump administration over the past year to hinder the emerging U.S. offshore wind sector, the state said.
As part of its inquiry, the CEC issued a subpoena to Golden State Wind LLC. The company is a joint venture formed by Ocean Winds and Reventus Power, the state noted. Ocean Winds itself is a partnership involving France’s ENGIE and Portugal’s EDP Renewables.
CEC Chair David Hochschild urged transparency, saying 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."
California has set a policy target of deploying 25 gigawatts of offshore wind capacity by 2045 to help meet its climate objectives. The state said it has already invested in excess of $100 million to prepare port facilities and transmission infrastructure that would support offshore wind development.
Golden State Wind and officials at the Interior Department were not immediately available for comment, the CEC said.
The CEC’s action underscores a dispute over federal decisions that reversed an active lease and returned payments while linking the refunds to fossil fuel investments. State regulators are now pursuing information to clarify the transaction and its compliance with state law.