Trump ends another wind energy lease off California’s coastline, two remain
August 7, 2026
By KAREN VELIE
The Trump administration announced this week that it has made a deal to end three more offshore wind leases, including another off the coast of California leaving only two active leases left in the Golden State.
RWE of Germany, one of the world’s largest offshore energy companies, agreed to terminate three leases offshore of California, New York and Louisiana as part of a $1.22 billion deal with the Trump administration. RWE had planned to place windmills 30 miles off the coast of Humboldt.
“After careful consideration, it was determined there is no path forward to permit these projects in the United States for the foreseeable future,” according to an RWE statement. “The settlement resolves RWE U.S. Offshore’s legal claims and provides $1.22 billion in settlement funds. The company determined that this resolution best serves the interests of its stakeholders and allows it to direct resources toward energy projects that can be advanced with certainty.”
As part of the agreement, RWE will redirect $900 million towards acquiring a 16% stake in a liquefied natural gas project in Louisiana and $300 million for the development of natural gas turbines in the United States.
“These investments will help deliver affordable, reliable energy solutions while supporting American jobs, enhancing grid reliability, and strengthening energy security,” RWE said in a statement. “In addition, RWE Americas has announced plans to invest approximately $17 billion in the United States over the next six years to grow its generation capacity.”
In 2022, the federal government auctioned off three offshore wind energy sites located off the coast near Morro Bay and two off the coast of Humboldt.
Concerned with the 2022 leases, a group of San Luis Obispo County residents 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 through signed agreements.
On April 2, attorney and member of REACT Alliance Saro Rizzo asked the U.S. Department of the Interior to make settlement offers to the the five wind energy lease holders off the coast of California.
With two of the three leases off the coast of Morro Bay canceled, the only lease remaining is with Equinor.
These settlement agreements provide partial reimbursement for offshore wind leases that required significant taxpayer support. By ending these leases and encouraging investment in reliable, cost-effective conventional energy sources, the settlement agreements promote mutually beneficial projects, according to the Trump administration.
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