Morro Bay Residents Urge Feds to Recoup Offshore Wind Lease Fees

Local attorney calls for 'lease-for-refund' deals similar to TotalEnergies agreement.

Apr. 13, 2026 at 7:05am

Got story updates? Submit your updates here. ›

A serene, painterly image of a single offshore wind turbine standing alone in the ocean, its silhouette framed against a warm, glowing sunset sky with deep shadows cast across the water, conveying a sense of uncertainty and transition in the renewable energy landscape.As offshore wind development faces mounting challenges, local communities seek to recoup lease fees and redirect resources toward more reliable energy solutions.San Luis Obispo Today

San Luis Obispo County attorney Saro Rizzo, on behalf of the REACT Alliance, has asked the federal government to pursue lease refund agreements with the five companies currently holding offshore wind leases in California, three of which are off the coast of Morro Bay. This request comes after the Trump administration suspended all offshore wind farm leases in 2025 due to national security concerns, stalling many projects.

Why it matters

The five offshore wind leases auctioned off the California coast in 2022 fetched a total of $757.1 million in winning bids, encompassing 373,268 acres of ocean space. The REACT Alliance, a local nonprofit, believes these unproven projects pose significant environmental and cultural risks to the California coastline, a cornerstone of the regional economy.

The details

In March 2023, TotalEnergies signed agreements with the U.S. Department of the Interior to relinquish two offshore wind leases in exchange for a refund of over $928 million. The REACT Alliance is now asking the Department of the Interior to pursue similar 'lease-for-refund' deals with the five companies holding California offshore wind leases. The alliance argues these projects are financially and technically insolvent, lack progress, and threaten the delicate coastal ecosystem.

  • In December 2022, the federal government auctioned off three offshore wind energy sites located between 20 and 30 miles off the coast near Morro Bay for more than $400 million.
  • In December 2025, the Trump administration suspended leases of all off-shore wind farms currently under construction in the United States.

The players

Saro Rizzo

A San Luis Obispo County attorney representing the REACT Alliance, a nonprofit with a mission to protect California's Central Coast from the 'destructive impacts of offshore wind energy development.'

REACT Alliance

A local nonprofit formed by Morro Bay residents to protect the California Central Coast from the impacts of offshore wind energy development.

TotalEnergies

An energy company that signed agreements with the U.S. Department of the Interior to relinquish two offshore wind leases in exchange for a refund of over $928 million.

Got photos? Submit your photos here. ›

What they’re saying

“We believe a 'lease-for-refund' arrangement—similar to your recent landmark deal with TotalEnergies—is the most prudent path forward.”

— Saro Rizzo, Attorney representing REACT Alliance

“Forcing American ratepayers to shoulder the immense costs of this 'impractical solution' offers no immediate benefit. Redirecting the capital currently tied up in these leases toward reliable, domestic energy production—as TotalEnergies has committed to doing—is in the best interest of American families.”

— Saro Rizzo, Attorney representing REACT Alliance

What’s next

The U.S. Department of the Interior will decide whether to pursue 'lease-for-refund' agreements with the five companies holding offshore wind leases in California.

The takeaway

This case highlights the growing concerns of local communities about the financial viability and environmental impact of offshore wind projects, especially in areas like the California Central Coast where the industry faces significant technological and logistical hurdles.