California Attorney General Rob Bonta and California Energy Commission Chair David Hochschild have notified the U.S. Department of the Interior and energy developer Invenergy that the state intends to sue over a federal agreement to cancel an offshore wind lease off the Central Coast.
The notice challenges a June 17 agreement under which the Interior Department would pay more than $111 million to an Invenergy subsidiary to relinquish its lease in the Morro Bay Wind Energy Area, according to a press release issued Thursday.
The agreement also requires the company to make an equivalent investment in fossil fuel or geothermal projects.
State officials argue the agreement violates the Outer Continental Shelf Lands Act, which is intended to give California a say in the offshore wind leasing program and prevent corrupt backroom deals.
The notice gives the federal government and Invenergy 60 days to address the alleged violations before California files suit, state officials said.
"Using taxpayer money to strike backroom buyouts that make clean-energy projects disappear is illegal," said Attorney General Bonta.
