Ocean Winds, the company behind the Golden State Wind project off Morro Bay, has agreed to terminate its federal lease in a deal announced Monday by the U.S. Department of the Interior, marking a major setback for California’s offshore wind ambitions.
Under the agreement, Golden State Wind can recover about $120 million in lease fees after it invests an equal amount in U.S. oil, gas, and energy infrastructure projects in the Gulf Coast. Golden State Wind has also decided not to pursue any new offshore wind projects in the United States, according to the Interior Department’s news release.
The wind project was designed to generate up to 2 gigawatts of electricity, enough to power an estimated 1.1 million homes off the Central Coast. Golden State Wind was set to be located in Lease Area OCS-P 0564 in the Morro Bay Wind Energy Area containing 80,418 acres and located approximately 20 miles from shore.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal. Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders,” said Michael Brown, CEO of Ocean Winds North America, a 50% owner of Bluepoint Wind and Golden State Wind.
The Interior Department said the goal of the settlement is to support President Donald Trump’s Energy Dominance Agenda.
“President Trump is focused on providing affordable and reliable energy to American citizens,” said Secretary of the Interior Doug Burgum. “The companies that bid for these offshore wind leases were basically sold a product in 2022 that was only viable when propped up by massive taxpayer subsidies. Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure. We welcome each of the projects’ willingness to actually support baseload power and lower utility bills for American families. In addition, the agreements resolve the unaddressed national security concerns at both projects.”
The California cancellation was one of two offshore wind leases terminated this week. The Interior Department also announced that Ocean Winds and Global Infrastructure Partners agreed to end their Bluepoint Wind lease near New York. That project had been expected to produce 2.4 gigawatts to power about 1 million homes.
Under the deal, Global Infrastructure Partners, a subsidiary of asset manager BlackRock Inc., will invest $765 million in a U.S.-based liquefied natural gas facility and also not pursue other offshore wind projects in the United States. The department said it will then cancel the lease and reimburse the company’s bid payment in the amount invested in the LNG project.
Reactions on the Central Coast and throughout California were swift. U.S. Rep. Salud Carbajal, a Democrat who represents California’s 24th Congressional District including Morro Bay, condemned the decision, calling it a “backwards” move that squanders a “historic opportunity” for the Central Coast.
““I am outraged by this backwards decision to sabotage the Morro Bay Wind Energy Area. In Congress, I championed these projects because they represented a clear win-win-win for the Central Coast. The projects strengthened our energy security, boosted local economic growth, and advanced important environmental protections. Because of a bizarre personal vendetta against wind energy, Donald Trump’s administration is turning a historic opportunity into a historic failure. Beyond the strategic failure of this policy decision, today’s announcement also represents a staggering waste of taxpayer dollars. I won’t let this extreme federal overreach and pressure go unchallenged, and I will continue to fight for the Central Coast’s right to build a greener economy,” Rep. Carbajal stated.
Carbajal has long championed offshore wind development and convened an Offshore Wind Working Group in 2019 that included federal, state, and military agencies to identify compatible areas for leasing. After negotiations stalled over Navy concerns, he advanced an amendment to the 2021 National Defense Authorization Act and later secured a written commitment from the Navy to collaborate on development areas.
That work contributed to a 2021 agreement with the Biden administration to allow offshore wind near Morro Bay and to lease offerings announced in 2022. Rep. Carbajal said he would continue to fight the federal move.
California Governor Gavin Newsom criticized the settlements on social media stating, “The Trump Administration AGAIN just gave companies almost A BILLION DOLLARS in taxpayer money to abandon clean energy projects and line Big Oil’s pockets. Donald Trump is forcing Americans to pay more for energy and sabotaging our future.”
Ocean Winds’ withdrawal leaves the future of large-scale offshore wind on California’s Central Coast uncertain, even as state and local leaders, labor groups, and industry advocates debate the best path forward for meeting energy needs, protecting ratepayers, and shaping the region’s economy.
China is winning….
Everyone else is winning. That means, I guess, we’re losing. Dangit! Why are so many people such stuipid dummies…
We live in the stupidest nation on earth.
LA Times article about China’s massive solar farm
https://www.nytimes.com/2025/10/10/business/china-solar-tibetan-plateau.html
Donald just fired the 20 member National Science Board.” An “independent” body. We can thank the conservative supreme court’s constitutional witchcraft for determining Trump has power over “Independent” bodies. I am sure he will replace them with big oil cronies and synchopants.
Forcing oil drilling in our ocean, right off our beautiful coastline while coercing wind companies to abandon their offshore wind projects is astoundingly destructive not only to our environment, but to our goal of energy independence. That wind farm would have brought clean power to our local communities. This oil, like most the oil we produce, will just be sold to foreign nations and increase cancer risks, destroy air quality wherever it is being refined and pose a massive risk of catastrophic oil spills killing our wildlife and polluting our shores.
The damage Trump and all you who support him is doing to our nation, our children and our planet will take years to fix, if at all.
Capitulating to the kakistocracy.
The proposed Morro Bay wind farm was highly controversial, not widely popular. While supported for clean energy goals, it faced intense local opposition from residents, fishermen, and environmentalists worried about impacts on tourism, marine life, and coastal economies. The project was effectively stalled by April 2026 due to lawsuits, environmental concerns, and shifting federal policy.
Selective chatgpt cut, paste and edit of a dotard.
FERNALD – we can all use Google AI but that’s pretty meaningless. Of course wind projects, all of them, are “controversial” because sadly, so many people actually believe the lies Trump and his team spreads about them. It’s crazy the amount of misinformation is out there about these. I bet you think they killed those whales in New Jersey….
No actual “environmentalists” opposed this project. That’s just another lie. Yeah, some Trump supporters who are OK with oil spills but not wind farms cited “environmental concerns,” but that’s like Jiffy Lube mechanics saying they’re rocket scientists.
sacjon, quite a few environmentalists, those who support a clean and healthy environment for ALL species, were very concerned about this project. Recall also the discussion about the effects on small towns on the central coast, here: , not considered by offshore wind proponents who do not live in that area. Opposition had nothing to do with Trump and his (to me) ridiculous opposition to all wind farms. My concerns were about seabirds and migratory routes of the birds as well as whales, about the need to have regular upkeep of the blades and the apparently short lifetime of the huge blades, and also about the effects on the small towns in that area that I love. I’d guess that if that wind farm had been proposed for the SB Channel or outside the national park islands, there would have been even greater opposition! …I am not a Trump supporter, never have been, and can not imagine myself a Magaite, but you play his game by labelling what you disagree with as “another lie,” based on AI.
BIRD – can you provide any cites to back that claim that environmentalists were opposed to offshore wind projects? Sure, there will always be some affect on wildlife, but I’ve yet to hear any actual environmentalists oppose wind farms such as this. The concerns are valid, of course, but the alternative is far, FAR worse for wildlife, our air, our water and our planet in general.
I don’t know what you think I’m calling a “lie” other than what Trump is telling is supporters about renewable energy. Fernald’s comment was clearly a Google AI result. They’re really easy to spot.
BIRD – sorry, let me clarify: when I asked for proof that “environmentalists” were opposed, I meant environmental groups speaking out against it, not just individuals who had concerns for sealife. I understand that and of course agree with that concern, but not to the extent I would support the alternative.
> Opposition had nothing to do with Trump and his (to me) ridiculous opposition to all wind farms.
You’re being ridiculous. That is entirely why this happened.
When your primary talking points in opposition to the project echo false claims promoted by the fossil fuel industries, like dangers to migratory birds, seabirds, and whales, which are orders of magnitude less than the threats to them posed by fossil fuel extraction, transport, and use, don’t be surprised when somebody points that out to you.
“quite a few environmentalists”
There is no evidence that offshore wind turbines kill whales. Scientific studies and necropsies indicate that increased whale deaths are primarily caused by vessel strikes and fishing gear entanglement, not offshore wind construction. Claims linking wind energy to whale deaths are not supported by data.
Yes, buildings and industrial facilities like refineries are major causes of bird mortality. Buildings, particularly windows, cause over 1 billion bird deaths annually in the U.S.. Refineries and fossil fuel plants kill birds through toxic emissions, heat, and oil pits, while power lines cause tens of millions of deaths.
American Bird Conservancy
American Bird Conservancy
+2
Key Causes of Bird Mortality:
Building Collisions (Windows): An estimated 365 million to over 1 billion birds die annually in the U.S. from hitting buildings, often because they see reflections in the glass.
Refineries & Fossil Fuel Industry: Fossil fuel operations are estimated to cause over 14 million bird deaths annually, with oil pits alone accounting for up to 1 million. Pollution from these plants also damages habitats and food sources.
Other Major Threats: Domestic cats are the top killer, responsible for up to 4 billion bird deaths a year, followed by vehicles (up to 340 million) and electrical lines (up to 57 million).
Context on Wind Turbines: While wind turbines are a concern, they kill significantly fewer birds, with estimates between 140,000 and 700,000 annually, which is much lower than buildings or fossil fuel operations
I used a couple of chatgpt lookups for convenience. It’s amazing the number of birds that are killed by buildings alone each year.
Bird, your arguments do not seem well founded. The claim that a group of wind turbines located 20 miles offshore would harm tourism in Morro Bay is absurd. It will be utterly invisible most days of the year as offshore fog is quite common, and on clear days it will be hardly discernible specter on the horizon. No one will decline a visit to MB, a truly love place, because of an unseen wind farm. The tourism industry rose and thrived there while those 3 giants smokestacks loomed over the entire coastline.
I am an environmentalist and I opposed this project. Wanted to keep the eye sore away from my sailing trips
JULIE – LOL! No, you are not. If you actually sail though, please stop until you support wind power. Hypocrite.
Yeah, because it’s so much fun to sail around those picturesque oil rigs!
What a weirdo.
> Wanted to keep the eye sore away from my sailing trips
That’s narcissism, not environmentalism.
Well I’m not sure how ANYTHING 20 miles off of shore can affect anything on shore – well except for an oil spill and unfavorable currents. I think that the “local opposition” are just MAGA stupid dummies being the reliable drones they’ve proven to be without fail to their supreme leader.
How many will die due to this Oil Cabal grip on our energy supply?
How many people are alive today due to the discovery of Crude Oil and its by-products?
When you spend $1,000,000 to get $850,000 back is that sustainable? can we tax you to?
When you spend $1,000,000 and get $20,000,000 back how much can we tax you?
Once you see the truth you can’t unsee it – and that is the true bummer. We are one poor policy from losing our democracy – living on the edge
JULIE – how many people die each year due to cancer, lung disease, and other illnesses caused by oil extraction, production and end use causing toxic pollution?
Sure, petroleum has been HUGE in advancing our society, but that doesn’t mean there aren’t alternatives or supplements that can be used to lower the negative effects of using oil.
Not really sure what you’re “argument” is here (as usual), but to suggest crude oil production is good for humanity and our planet is far from the “the truth” which you seem to have little grasp on.
Let’s stop all oil extraction and we can see the improvements by next year. 100% Guaranteed.
JULIE – yeah, all or nothing, black or white. Don’t be so simple.
this is how we get you to be a productive member of society, and maybe some innovation out of you before you end up in the time void. Think in terms of extremes and inverses so that you can see the issues at hand.
JULIE – I can actually actually smell that comment. The airplane glue and 151 don’t mix well this early in the day.
I support UBI and the Social Security Act and know that Wind power does not have the excess return on energy used to tax, but then again I am on a board with folks who don’t have degrees in Physics, or Economics
So you think it’s a good idea to pay 2 billion dollars of our money to have newly built power generation infrastructure just sit there. Really?
Interesting how many of the demented commenters on Edhat have the substring “lie” in their handles.
julie – Take an aspirin and try to not think about those that you do not agree with. You’ll feel better later.
Sicko stuff in advancing the corrupt MAGA pursuit of private profit, graft and despoliation of the land.
I wouldn’t say that these offshore wind projects were completely doomed from the start, but will continue to be delayed because there is a huge amount of local opposition. Those who want to forge ahead with putting these systems into the ocean need to go back to the drawing board and design systems that won’t be so vulnerable to the elements. Maybe the technology will catch up in the next few years and/or reduce the demand for more and more electric energy. There was a very good reason why Newsom extended the life of Diablo Canyon, but I don’t believe that reason is acceptable. Estimates are that we will rely on oil for most of our energy for the next 50=75 years…..possibly longer. For now though, everyone should be doing their part to reduce the amount of energy we use. A good start would be to use MTD public transportation. MTD is such a deal for those living in Carp/SB/Goleta/IV.
BeeKnee, per usual – you have ZERO knowledge or expertise in the subject you are discussing (and are completely unable to pose any substantial validating evidence.
BEES – why do you just make things up and then say them out loud as if they are fact? Are you just trolling people here or do you really believe these wind turbines were opposed due to design vulnerabilities? That was never a factor.
The first sentence in the article, which I did not make up, states:
“Ocean Winds, the company behind the Golden State Wind project off Morro Bay, has agreed to terminate its federal lease in a deal announced Monday by the U.S. Department of the Interior, marking a major setback for California’s offshore wind ambitions.”
I interpret that to mean that this project, at least for the foreseeable future, isn’t happening. Unfortunately, Californian’s are used to having promised projects not being completed, partially completed, and/or canceled. This wind project is just another one that was a good idea during election time, but canned as soon as no one is paying attention (notice there’s no talk about the no-speed rail project amongst the Cali candidates for governor….crickets).
Take action people and please remember that we all can make a difference when it comes to energy usage.
Bees you are very limited intellectually and seem morally challenged. Take that into consideration when spewing word salads.
BEES – now explain how you think that means the termination was based on the turbines not being engineered to adequately handle the elements, as YOU claimed.
Do words mean nothing to you?
So far we have paid two billion dollars of our tax payer money to NOT GENERATE POWER FROM INFRASTRUCTURE THAT WAS JUST BUILT.
This is insanity.