California and New York have opened a significant new front in the fight over federal energy policy, suing the Trump administration over plans to buy back offshore wind leases tied to already approved clean-energy development. The states contend the federal government is unlawfully attempting to unwind projects that cleared prior regulatory review, setting up a high-stakes clash over agency authority, administrative process, and the future of offshore wind investment.

At the center of the dispute is whether the federal government can effectively reverse course on issued offshore wind leases through buybacks or cancellations without complying with the legal constraints that govern agency decision-making.