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California sues Interior to undo Morro Bay offshore wind lease buyout

California Attorney General Rob Bonta and the California Energy Commission sued the US Interior Department on August 28, 2026, asking a federal court to void the agreement that reimburses Golden State Wind up to $120,240,000 from the Judgment Fund for abandoning its approximately 1.5 to 2 GW Morro Bay offshore wind lease once matching investments are made in Gulf Coast fossil fuel projects. The complaint tallies nearly $4 billion directed from the fund toward cancelling twelve offshore wind projects.