Trump administration ends wind energy lease off coast of Morro Bay

April 27, 2026

By KAREN VELIE

The Trump administration on Monday announced that it made deals to end two more offshore wind leases: Golden State Wind off the coast of Morro Bay in California and Blue Point Wind off the coast of New Jersey. Both projects are owned by Ocean Winds.

The announcement comes 27 days after San Luis Obispo based attorney Saro Rizzo asked the federal government to pursue lease refund agreements with the five companies currently holding offshore wind leases in California, three of which are off the coast of Morro Bay.

“We are very pleased with this outcome,” Rizzo said on behalf of REACT Alliance. “We hope the four other leases off the coast of California are likewise canceled.”

In 2022, the federal government auctioned off three offshore wind energy sites located between 20 and 30 miles off the coast near Morro Bay for more than $400 million. Locals then formed REACT Alliance, a nonprofit with a mission to protect California’s Central Coast from the “destructive impacts of offshore wind energy development.”

In Dec. 2025, based on national security concerns, the Trump administration suspended leases of all off-shore wind farms currently under construction in the United States. Since then, many wind energy projects have stalled or ended.

On March 23, TotalEnergies signed agreements with the U.S. Department of the Interior to relinquish two offshore wind leases in exchange for a refund of over $928 million. The company agreed to redirect $1 billion from offshore wind leases to U.S. oil and gas production.

On April 2, Rizzo asked the U.S. Department of the Interior to make similar offers the the five wind energy lease holders off the coast of California.

“We share your view that offshore wind is an expensive, unreliable, and subsidy-dependent scheme,” Rizzo said in his letter. “Forcing American ratepayers to shoulder the immense costs of this impractical solution offers no immediate benefit. Redirecting the capital currently tied up in these leases toward reliable, domestic energy production—as TotalEnergies has committed to doing—is in the best interest of American families.

“By negotiating an exit for developers in the Morro Bay and Humboldt lease areas now, you can prevent decades of environmental degradation and financial waste. We request the opportunity to discuss how the REACT Alliance can support the Department in securing a future for the California coast that prioritizes genuine conservation and energy dominance over the ineffective economic boondoggle known as floating offshore wind.”

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