A coalition of seven Democratic attorneys general sued the Trump administration after it agreed to reimburse TotalEnergies nearly $928 million to abandon offshore wind leases, with about $795 million tied to a New York project. The states say the deal deprived the region of needed power and could raise electricity costs in New England and the mid-Atlantic. They argue the administration failed to follow statutory procedures and violated the Judgment Fund Act, and they ask the court to void the agreement and reinstate the leases.
Seven States Sue Over $928M Deal Reimbursing TotalEnergies To Abandon Offshore Wind Leases
TotalEnergies CEO Patrick Pouyanne (left) shakes hands with US Interior Sec. Doug Burgum after signing a nearly $1 billion taxpayer-funded agreement to end the French company's offshore US wind farm projects and redirect those funds towards fossil fuel production. - Ronaldo Schemidt/AFP/Getty Images
A coalition of seven Democratic-led states filed suit Tuesday after the Trump administration agreed to reimburse French energy company TotalEnergies nearly $928 million to abandon offshore wind leases acquired under the previous administration.
The complaint, led by New York Attorney General Letitia James and filed in the U.S. District Court for the District of Columbia, argues the March agreement deprived the states of urgently needed electricity capacity and could push up power prices across New England and the mid-Atlantic.
Under the March transaction, the federal government would reimburse TotalEnergies $928 million for two leases that would have supported offshore wind projects off New York and North Carolina; roughly $795 million of the total was earmarked for the New York project. TotalEnergies said it would direct the refunded funds toward building a liquefied natural gas (LNG) plant in Texas and supporting LNG exports to Europe.
In April, the administration announced a separate plan to pay almost $900 million to other developers to abandon additional projects in New York and California; that April agreement is not part of the lawsuit filed this week.
Legal Claims
The states — New York, New Jersey, Connecticut, Maine, Vermont, Massachusetts and Rhode Island — say the administration violated statutory procedures required to cancel the leases, including a legally required hearing to determine whether retaining the leases "would likely cause serious harm to life, property, national security, or the environment." They also contend the payment violates the Judgment Fund Act because it was not a payment to resolve an imminent lawsuit but rather a policy-driven arrangement to stop planned renewable projects.
“After repeatedly losing in court, this administration cooked up a sham deal to pay a foreign energy company hundreds of millions of taxpayer dollars to abandon offshore wind and invest in oil and gas instead,” New York Attorney General Letitia James said in announcing the suit.
Massachusetts Attorney General Andrea Campbell added that the move reflects a continued effort to prioritize fossil fuel interests over clean energy development.
What’s Next
The plaintiffs ask the court to void the March agreement and to vacate the lease cancellations, effectively seeking to restore the offshore wind leases so the projects can move forward. The Justice Department and the Interior Department did not immediately respond to requests for comment.
The lawsuit tests whether federal courts will block the administration from using large payouts as a tactic to halt renewable energy projects before they begin construction.
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