In the two lawsuits,
one challenging a buyout deal with Bluepoint Wind and the other challenging one
with Invenergy, Attorney General James and the coalition argue that the deals
unlawfully misuse taxpayer dollars and sabotage states’ ability to meet growing
energy demands. Filed during Climate Week, the lawsuits ask the court to stop
the deals, which kill critical wind projects just to bankroll fossil fuel
plants elsewhere in the country.
“Americans are facing increasing energy costs because this
administration would rather pay off energy companies than let us build the new
power sources we need,” said Attorney General James. “These illegal backroom
deals take money that should have gone toward lowering New Yorkers’ bills and
hand it to fossil fuel projects in other states, all while our energy demand
continues to grow. At a moment when every available resource should go to
keeping the lights on and prices down, this administration is choosing
corruption over communities. We will fight until these unlawful deals are
struck down.” “The Trump
administration’s unlawful pay-to-not-play scheme to pressure companies to
forego planned offshore wind projects in America is an outrageous abuse of
taxpayer dollars that hurts our ability to meet our energy needs, reduce
emissions, create good paying jobs, and help secure American energy
independence,” said Gov. Hochul. “Working with Attorney General James and the
seven other AGs who filed this lawsuit, we will continue to fight back against
the unending war against clean energy being waged by this President and his
Republican allies to ensure a healthier and cleaner future that allows us to
keep the lights on and costs down here in New York.” Since the beginning of the president’s second term, his administration
has continually attempted to stop offshore wind development. The president
himself has stated that his “goal is not to let any windmill be built,” and his
interior secretary promised that “under this administration, there is not a
future for offshore wind.” After Attorney General James and other attorneys
general secured repeated court wins striking down the federal government’s
efforts to eliminate wind development, the administration pivoted to a new
strategy: paying off companies to abandon their wind energy projects. The first lawsuit challenges the U.S. Department of the Interior’s
(DOI) deal with Bluepoint Wind, which canceled the company’s lease off the coast
of New York and, in exchange, paid Bluepoint $765 million from the Judgment
Fund, a taxpayer-funded account reserved for legitimate legal settlements.
Instead of building the offshore wind farm New York was counting on, Bluepoint
will use the money to build a liquefied natural gas facility and has committed
not to pursue future offshore wind developments in the United States. In the second lawsuit, the attorneys general are challenging DOI’s deal with Invenergy, which canceled three offshore wind leases,
including one off the coast of New York, and paid the company $653 million from
the same fund. Under the deal, Invenergy will not build a single wind turbine.
Instead, it will redirect the $653 million to natural gas plants in Indiana,
Wisconsin, Iowa, Kansas, and Missouri and geothermal projects in the western
United States. The two canceled New
York projects alone were expected to bring more than $16 billion in investments
to New York and create more than 2,800 new jobs in the state. The canceled
projects would have connected directly to New York City’s electric grid,
providing a new source of electricity at a time when the state anticipates
significant growth in demand. Combined with the other two Invenergy leases, the
canceled projects were expected to generate over eight gigawatts of
electricity, enough to power more than four million homes. The cancellations come as New York’s own
energy planners project electricity demand will grow eight percent by 2030 and
24 percent by 2040, driven in part by economic development and new large loads
such as data centers. At the same time, aging fossil fuel generators are
approaching retirement, making new sources of power essential to meeting
growing demand and maintaining grid reliability. If the administration deprives
the Northeast of new energy generation while demand continues to outpace
supply, electricity scarcity and grid congestion will worsen, which could
increase energy costs for consumers.
The lawsuits assert that the administration is unlawfully using taxpayer
dollars to advance the president’s policy preference for oil and gas
development. According to Attorney General James’s office, “the agreements do
not resolve any actual or imminent litigation, meaning the administration has
no legal basis to pay these companies hundreds of millions of dollars from the
Judgment Fund, which Congress established solely to pay legitimate legal claims
against the government.’ Attorney
General James, Gov. Hochul, and the coalition argue that the deals violate the
Administrative Procedure Act, the National Environmental Policy Act, the Outer
Continental Shelf Lands Act, the Judgment Fund Act, and other federal spending
laws. They are asking the courts to declare the agreements unlawful, void the
lease cancellations, and block the administration from taking any further
action to carry out the deals. Joining
Attorney General James in filing both lawsuits are the attorneys general of
Connecticut, Delaware, Maine, Massachusetts, New Jersey, Rhode Island, and
Vermont. California is filing a separate, concurrent lawsuit challenging a deal
between Invenergy and the administration to cancel a lease off its coast.