Northeastern states challenge U.S.-TotalEnergies offshore wind payout in court

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Dan Blystone

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Northeastern states challenge U.S.-TotalEnergies offshore wind payout in court — Northeast sues over wind deal

A coalition of seven Northeastern states is escalating its clash with the Trump administration by seeking to void a nearly $1 billion agreement tied to abandoned offshore wind leases. The case centers on a March deal with TotalEnergies that the states say damages regional energy plans, economic interests and climate targets.

Highlights

New York and six other northeastern states filed a lawsuit challenging the March agreement refunding TotalEnergies $928 million for two surrendered offshore wind leases and redirecting funds to fossil fuel investments.
The lawsuit asserts the arrangement violates federal law, undermines regional offshore wind projects like Attentive Energy One (enough power for 700,000 New York homes), and threatens state economies and climate targets.
Broader backlash intensifies as New York State Common Retirement Fund reviews its TotalEnergies holdings, California issues a subpoena over a $120 million lease termination, and Congress opens an investigation into the payouts.

Legal challenge targets March lease settlement

As first reported by Financial Times, New York and six other states are suing over the administration's March agreement with TotalEnergies, under which the French company surrenders two offshore wind leases in return for a full refund of the $928 million it paid for them and a commitment to redirect the money into fossil fuel investments.

The coalition includes Connecticut, Maine, Massachusetts, New Jersey, Rhode Island and Vermont. It argues the arrangement is unlawful, should be struck down by the courts, and improperly uses the Justice Department's judgment fund while violating the Outer Continental Shelf Lands Act.

New York Governor Kathy Hochul says the arrangement is a "pay-not-to-play scheme" that pressures a foreign company to abandon planned offshore wind projects in America in favor of oil and gas drilling. The lawsuit says the cancellations threaten state economies, future power supply needs and climate policy goals.

Regional energy impact and wider opposition

One of the affected projects, Attentive Energy One off the coast of New York, could have produced enough electricity for 700,000 homes in the state, according to the lawsuit. TotalEnergies secured that lease in 2022 during what the states describe as the highest-grossing competitive offshore energy lease sale in U.S. history, while Attentive Energy Two is intended to serve New Jersey.

The case adds to a broader backlash against the administration's campaign against wind energy. Earlier legal setbacks have already challenged White House efforts in the sector, while the Interior Department continues to cite national security concerns, including possible radar interference, and the administration also criticizes wind power as costly and intermittent.

The pressure is extending beyond the courtroom. The New York State Common Retirement Fund says it will re-evaluate its stake in TotalEnergies, the California Energy Commission issues a subpoena to Golden State Wind after its own $120 million agreement to terminate an offshore wind lease, and Democratic Senator Sheldon Whitehouse opens a congressional investigation into the payments in April.

Our earlier article on the UK’s proposed seventh carbon budget explained how the government is pushing a tougher, legally binding target to cut emissions by 87% from 1990 levels by 2040, with Parliament set to vote by the end of June. We outlined the growing political resistance focused on the costs of net-zero policies and electricity prices, alongside the government’s argument that stronger targets can support investment and long-term economic resilience.

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