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States Sue to Void $1 Billion Interior Deal That Ended New York Offshore Wind

States say the payout lets a foreign company abandon U.S. wind in exchange for taxpayer money tied to oil and gas.

Overview

  • New York Attorney General Letitia James led a coalition of six other state attorneys general that filed suit Tuesday in federal court in Washington asking a judge to vacate the Interior Department’s cancellation of the New York lease and the roughly $1 billion settlement with TotalEnergies’ subsidiary.
  • The publicly disclosed March agreement would refund about $1 billion to TotalEnergies and conditions the payment on the company redirecting the capital into oil and gas projects rather than offshore wind.
  • The complaint alleges Interior officials canceled the lease without following required procedures and argues the deal harms state economies, union jobs, electricity ratepayers and state climate goals.
  • Interior Secretary Doug Burgum defends the settlements as returning companies’ money and says refunded sums have been invested in other U.S. energy projects while the administration has paid nearly $2 billion to end several offshore wind leases.
  • Congressional Democrats and California investigators are separately probing similar cancellations, and a legal victory for the states could restore the leases, revive planned clean power capacity and reshape federal oversight of future energy settlements.