New York is leading a coalition of seven states in suing the Trump administration over a deal that paid French energy company TotalEnergies nearly one billion taxpayer dollars to abandon two offshore wind leases off the New York coast.
Under the agreement struck in March, the administration cancelled the offshore wind leases and reimbursed TotalEnergies with instructions to invest the funds in oil and gas projects instead. The coalition argues this deal violates federal law.
The lawsuit involves New York, New Jersey, Connecticut and four other states. They contend that the cancellation will hurt their energy grids and local economies while undermining their clean energy transition goals.
According to the coalition, the offshore wind project would have generated enough electricity to power more than 700,000 New York homes. Its cancellation represents a significant setback for renewable energy development along the Atlantic coast.
The states argue that using taxpayer money to compensate a private company for abandoning renewable energy in favour of fossil fuels sets a dangerous precedent. They say the administration exceeded its legal authority in making such an arrangement.
The offshore wind industry has faced increasing headwinds under the current administration, which has prioritised domestic oil and gas production. Several other offshore wind projects across the United States have also been delayed or cancelled.
Environmental groups have backed the lawsuit, arguing that the cancellation undermines national climate commitments. The case is expected to set a significant legal precedent for federal energy policy and the future of offshore wind development in the United States.