New York and six other Northeastern states have filed a federal lawsuit challenging the Trump administration’s agreement with French energy company TotalEnergies that ended the company’s offshore wind development plans in the United States.
The lawsuit, filed Tuesday in U.S. District Court in Washington, D.C., was brought by the attorneys general of New York, Connecticut, Maine, Massachusetts, New Jersey, Rhode Island and Vermont.
At issue is a March agreement under which TotalEnergies agreed to abandon its U.S. offshore wind projects in exchange for a federal payment valued at $928 million, representing the value of the company’s offshore wind leases. The company said it would redirect its investment toward oil and natural gas production in the United States.
The states argue the agreement threatens jobs, clean energy development, and long-term climate goals. They contend the deal could undermine regional energy supplies and slow efforts to expand renewable power generation along the East Coast.
According to the lawsuit, the Interior Department lacked the authority to terminate the offshore wind leases without following procedures required under federal law. The states claim the agency was required to conduct a hearing and determine that the leases posed serious harm before canceling them.
The lawsuit also challenges the legality of the payment itself, alleging it violates federal law governing the use of the Judgment Fund because the money was not intended to settle a court judgment or lawsuit.
The Interior Department defended the agreement, describing it as voluntary and arguing that the offshore wind leases were improperly negotiated during the Biden administration. The department said the projects would have imposed high costs on taxpayers while producing unreliable and expensive energy.
The legal challenge marks the latest clash between Democratic-led states and the Trump administration over offshore wind development. Since returning to the office, President Donald Trump has sought to halt new offshore wind projects through executive action and administrative reviews, citing economic and national security concerns.
The administration has previously suspended federal approvals for several offshore wind projects, prompting legal challenges from energy companies that argued the delays cost hundreds of millions of dollars.
Interior Secretary Doug Burgum has maintained that offshore wind development presents national security risks, while supporters of the industry argue it is a key component of future energy needs and emissions reduction efforts.
TotalEnergies has said rising development costs made continued investment in U.S. offshore wind projects economically unattractive and not in the nation’s best interests. The company has indicated it will not pursue additional offshore wind leases in the United States.
Source: WSJ