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The basics:

• NJ joins multistate lawsuit over canceled offshore wind leases
• Suit challenges federal agreement involving Attentive Energy projects
• Officials say leases could have powered more than 1.3M homes
• States seek to restore leases, revive offshore wind development

New Jersey has joined a coalition of states suing the U.S. Department of the Interior over what they describe as an unlawful cancellation of offshore wind energy leases tied to a major clean power project off the New Jersey and Long Island coasts.

Filed June 2, the lawsuit challenges a March 2026 agreement that canceled leases held by Attentive Energy – a subsidiary of TotalEnergies – in exchange for hundreds of millions of dollars in federal payments. The deal also included a commitment from the developer to redirect investment into fossil fuel projects and abandon future offshore wind development in the United States.

The federal government has defended the arrangement as a settlement tied to national security concerns. However, the coalition of attorneys general argues it violates multiple federal laws and improperly redirects taxpayer funds.

Needed: More power

“New Jersey needs more power supply. The federal government’s lawless attack on clean energy development is bad for the grid, for our economy, and for ratepayers,” said Attorney General Jennifer Davenport. “In a favor to the oil and gas industry, the administration took our tax dollars and canceled our agreements with Attentive Energy without any justification whatsoever. I will not stand by while the rule of law is trampled on by this administration, and I am confident we will prevail in court.”

Gov. Mikie Sherrill also criticized the federal action. She argues it will ultimately raise costs for consumers and undermine state clean energy goals.

“Instead of promoting more energy development and deployment when we need it most, the Trump Administration once again finds ways to make life more difficult and more expensive for everyday New Jerseyans,” said Sherrill. “New Jersey, New York, and other coastal states will not stand by while this president interferes with our clean energy plans that will ultimately lower costs for our residents, who are currently buckling under the expenses created by his war and tariffs.”

What’s at stake

According to the lawsuit, the offshore wind leases were originally purchased in 2022 for $795 million. The agreements were expected to support projects capable of generating more than 2.7 gigawatts of electricity. That’s enough to power over 1.3 million homes across New Jersey and New York.

The states argue that the Interior Department bypassed required federal procedures when it canceled the leases. They cite the failure to hold hearings, conduct environmental review under the National Environmental Policy Act, and meet statutory requirements under the Outer Continental Shelf Lands Act governing lease termination.

I will not stand by while the rule of law is trampled on by this administration, and I am confident we will prevail in court.
– Jennifer Davenport, NJ attorney general

They also contend that the federal government improperly used the Judgment Fund to reimburse the developer as part of the agreement. The AGs say the move violates restrictions on when taxpayer funds can be used for settlements.

The lawsuit seeks to void the cancellation agreement, restore the offshore wind leases, and block further implementation of the deal. It names the Department of the Interior, the Department of Justice and the Bureau of Ocean Energy Management as defendants.

Not the first lawsuit

The action marks the second time in just over a year that New Jersey has joined legal efforts challenging federal restrictions on wind energy development.

A separate 2025 lawsuit, led by then-Attorney General Matthew Platkin, similarly accused the Trump administration of unlawfully freezing wind energy permitting and approvals nationwide. That case argued the policy threatened state clean energy goals and economic development tied to offshore wind projects.

New York Attorney General Letitia James leads the coalition in the latest suit. Along with New Jersey, the group also includes New York, Connecticut, Maine, Massachusetts, Rhode Island and Vermont.

The Interior Department has disputed the states’ claims. It argues that the offshore wind leases themselves were improperly approved under the Biden administration.

“The only thing blatantly unlawful here was the process by which these offshore wind leases were negotiated and imposed under the Biden administration,” a Department of the Interior spokesperson told NJBIZ. “Billions of dollars were effectively taken from the pockets of hardworking taxpayers and funneled into energy projects that were not only unreliable, but also unaffordable.”

The spokesperson said the department acted in response to national security concerns identified by the Department of Defense. They also noted that the lease cancellations were voluntary agreements reviewed and approved by the DOJ.

“This administration will not sit back and let reckless projects create way higher utility costs, a weakened energy system, and unnecessary harm to the environment,” the spokesperson added.

The lawsuit comes as offshore wind development in New Jersey has largely stalled.

Projects once expected to anchor the state’s offshore wind ambitions, such as Ørsted’s Ocean Wind 1 and 2 and Atlantic Shores, have been canceled, terminated or otherwise derailed amid a combination of economic pressures, permitting challenges and shifting federal policy.