Trump Admin Pays Wind Developers to Abandon California Offshore Leases

The Interior Department will pay two energy firms, Golden State Wind and Bluepoint Wind, a total of $885 million to abandon their federal offshore wind leases off California, redirecting the investment into oil, gas, and LNG projects. Golden State Wind can recover about $120 million in lease fees after committing to invest in conventional energy assets, while Bluepoint Wind will invest up to $765 million in a U.S.-based LNG facility, with the government reimbursing that amount upon completion. The Morro Bay project, which could have produced up to 2 GW (roughly 1.1 million homes), is effectively terminated. This follows a $1 billion deal with TotalEnergies and signals a shift away from offshore wind toward fossil fuels, drawing scrutiny over legality and impact on California’s clean-energy goals, though some remain optimistic about future wind development in the state.