Overview
- Interior struck a settlement last week with TotalEnergies that cancels two 2022 offshore wind leases and offers about $928 million back if the company puts that money into U.S. oil, gas, and LNG projects.
- Under the agreement, TotalEnergies will forgo future U.S. offshore wind development and relinquish the New York Bight and Carolina Long Bay leases purchased for $795 million and more than $133 million.
- Legal experts say Interior and its offshore leasing arm lack clear authority or budget to issue refunds and note the Judgment Fund is typically used for court-ordered settlements, not voluntary lease surrenders without a lawsuit.
- The administration calls the move a win for affordable, reliable energy, while critics argue it pays to halt clean power and could raise costs; key lawmakers have signaled oversight and questioned the funding basis.
- The shift follows court defeats of earlier stop‑work orders on wind projects as Vineyard Wind finished construction and Revolution Wind and Coastal Virginia Offshore Wind began delivering power, and reporting indicates other leaseholders could be offered similar buyouts.