Trump administration pays wind developer to walk away from California offshore lease

Hayley Smith, Los Angeles Times on Apr 27, 2026

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The Trump administration on Monday said it will pay two more energy companies, including one developing a wind project off Morro Bay, to abandon their projects in federal waters.

The U.S. Department of the Interior said it will pay a total of $885 million to Bluepoint Wind and Golden State Wind to voluntarily end their offshore wind leases, with both agreeing to instead invest in “reliable conventional energy projects.” The Trump administration on Monday said it will pay two more energy companies to abandon planned offshore wind projects in federal waters, including one off the coast of California.

The U.S. Department of the Interior said it has signed separate agreements totaling $885 million with Bluepoint Wind and Golden State Wind to voluntarily end their offshore wind leases, with both companies agreeing to instead invest in “reliable conventional energy projects.”

The move follows a similar $1 billion deal with the French firm TotalEnergies, which agreed in March to walk away from offshore wind leases off North Carolina and New York coasts.

Golden State Wind was one of five leaseholders off the coast of California with a wind lease located off of Morro Bay. Under the agreement, the company will be eligible to recover about $120 million in lease fees after an investment has been made of an equal amount in the development of U.S. oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said.

New Jersey-based Bluepoint Wind has committed to investing up to $765 million into a U.S. based liquefied natural gas facility, the amount of its original bid under the Biden administration. The government will reimburse the company for the full amount of its investment upon completion.

Both companies have “decided not to pursue any new offshore wind developments in the United States,” the Interior Department said.

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