California sues Trump administration over offshore wind ‘extortion racket’

California's attorney general and energy commission sued the Trump administration over how it has been canceling offshore wind leases along the state's coast. At issue is a lease off Morro Bay held by Golden State Wind, where developers had won the rights for $150.3 million and planned about 2 gigawatts of generating capacity. In April, the developers agreed to hand the lease back in exchange for $120 million after the administration made changes that the state says reduced its value. California's lawsuit calls this an "extortion racket," arguing the administration first undercuts a lease's worth, then offers developers close to what they originally paid, making the buyback hard to refuse given their obligations to investors.

This is part of a broader pattern: the administration struck a similar deal with TotalEnergies in March, paying $928 million for two leases off North Carolina and New York, with the money redirected into oil and gas projects instead of wind. Another deal canceled a 1.5-gigawatt lease held by Invenergy, also off Morro Bay. California says it had already put more than $100 million into supporting offshore wind, including port and transmission upgrades tied to these projects.

For a homeowner, this doesn't affect any current rebate or upgrade program. But it signals that offshore wind, one source utilities have counted on for future clean power on the grid, is being pulled back in several states, which could shape electricity supply and prices over the longer term.