California energy officials on Monday opened an investigation into the Trump administration's agreement with an offshore wind company to cancel a planned project off the state's central coast.
The state said it was seeking information about the $120 million government payout to determine whether it violated the law.
The refunds of offshore lease payments, in exchange for fossil fuel investments, are part of a recent strategy in President Donald Trump's year-long effort to stymie the nation's young offshore wind industry.
The California Energy Commission said it had issued a subpoena to Golden State Wind LLC, a joint venture between Ocean Winds and London-based offshore wind investment firm Reventus Power. Ocean Winds is a partnership between France's ENGIE and Portugal's EDP Renewables.
"Californians deserve immediate answers about the nature of this payout," CEC Chair David Hochschild said in a statement. "Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear."
California has a goal to install 25 gigawatts of offshore wind by 2045 to help meet its climate change goals. The state said it had invested more than $100 million to develop port and transmission infrastructure needed for offshore wind.
Golden State Wind and Interior Department officials were not immediately available for comment.
(Reuters - Reporting by Nichola Groom; Editing by Stephen Coates)