9 States Challenge Federal Agreements for Invenergy Wind Projects

Nine U.S. states are preparing to sue the federal government regarding agreements that would allow energy company Invenergy to recover up to $765 million for abandoned offshore wind projects. The states, including California and several northeastern states, argue that the Interior Department's decisions to cancel three wind leases held by Invenergy subsidiaries and seek nearly $120 million in federal payments are unlawful. According to documents released on July 10, the Interior Department intends to ask the Treasury Department's Judgment Fund to pay Invenergy $111.8 million for a California lease and $8.1 million for two early-stage Gulf of Maine leases. These payments are intended to offset Invenergy's costs associated with the canceled offshore wind projects. The states contend that the administration bypassed federal lease-cancellation rules and purported to settle claims without the developers having initiated lawsuits. A 60-day waiting period has begun, after which the states may file suit. The agreements are designed to allow developers to recover their original lease bids after federal policy shifts disrupted their investment environment. Invenergy, founded by Michael Polsky, has developed over 220 energy projects since 2001. While wind power has been a significant part of its business, the company also has projects in natural gas, solar, energy storage, and transmission. This diversification may allow Invenergy to qualify for reimbursement through various avenues, including payments for expenditures on natural gas plants and pipelines.