[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3742 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3742
To amend the Outer Continental Shelf Lands Act to support the
responsible development of offshore renewable energy projects,
establish the Offshore Power Administration, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 4, 2025
Mr. Tonko introduced the following bill; which was referred to the
Committee on Natural Resources, and in addition to the Committees on
Energy and Commerce, and Science, Space, and Technology, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Outer Continental Shelf Lands Act to support the
responsible development of offshore renewable energy projects,
establish the Offshore Power Administration, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Offshore Energy
Modernization Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. National offshore wind permitting goals.
Sec. 3. Responsible development of offshore renewable energy projects.
Sec. 4. Offshore renewable energy compensation fund.
Sec. 5. Improving environmental and cultural reviews to ensure timely
permitting decisions.
Sec. 6. Report on decommissioning of offshore renewable energy
projects.
Sec. 7. Offshore Power Administration.
Sec. 8. Offshore transmission infrastructure studies and
recommendations.
Sec. 9. Interoperability of offshore electric transmission
infrastructure.
Sec. 10. Offshore wind shipbuilding.
Sec. 11. Access to offshore renewable energy areas.
Sec. 12. Definitions.
SEC. 2. NATIONAL OFFSHORE WIND PERMITTING GOALS.
(a) In General.--The Secretary of the Interior shall, in
consultation with the Secretary of Energy and other relevant Federal
agencies and State governments, establish and periodically update
national goals for offshore wind energy production on the outer
Continental Shelf.
(b) Minimum Production Requirements for 2030 and 2035.--Through
management of the outer Continental Shelf and administration of the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), the
Secretary of the Interior shall seek to issue permits that, in total,
authorize production of electricity from offshore wind energy projects
of not less than--
(1) 30 gigawatts of electricity by not later than 2030; and
(2) 50 gigawatts of electricity by not later than 2035.
SEC. 3. RESPONSIBLE DEVELOPMENT OF OFFSHORE RENEWABLE ENERGY PROJECTS.
(a) Definitions.--Section 2 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1331) is amended--
(1) in the definition for the term ``State'', as added by
section 50251(b)(1)(A)(iv) of Public Law 117-169--
(A) by redesignating such definition as subsection
(t); and
(B) by inserting after the enumerator ``State.--'';
and
(2) by adding at the end the following:
``(u) Offshore Renewable Energy Project.--The term `offshore
renewable energy project' means a project to carry out an activity
described in section 8(p)(1)(C) related to wind, solar, wave, or tidal
energy.''.
(b) National Policy for the Outer Continental Shelf.--Section 3 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1332) is amended--
(1) by amending paragraph (3) to read as follows:
``(3) the outer Continental Shelf is a vital national
resource reserve held by the Federal Government for the public,
which should be made available for expeditious and orderly
development, subject to environmental safeguards and
coexistence with other ocean users, in a manner which
includes--
``(A) supporting the generation, transmission, and
storage of zero-emission electricity; and
``(B) the maintenance of competition and other
national needs, including the need to achieve State,
Tribal, and Federal zero-emission electricity or
renewable energy mandates, targets, and goals;'';
(2) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7), respectively; and
(3) by inserting after paragraph (4) the following:
``(5) the identification, development, and production of
lease areas for offshore renewable energy projects should be
determined by a robust and transparent stakeholder process that
incorporates engagement and input from a diverse group of ocean
users and other impacted stakeholders, as well as Federal,
State, Tribal, and local governments;''.
(c) Leases, Easements, and Rights-of-Way on the Outer Continental
Shelf.--Section 8(p) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(p)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (B)--
(i) by striking ``27'' and inserting
``17'';
(ii) by striking ``three'' and inserting
``100''; and
(iii) by striking ``15'' and inserting
``100''; and
(B) by adding at the end the following:
``(C) Payments for conservation and mitigation
activities.--
``(i) In general.--Notwithstanding section 9, the
Secretary shall, without appropriation or fiscal year
limitation, use 10 percent of the revenue received by
the Federal Government from royalties, fees, rents,
bonuses, and other payments from any lease, easement,
or right-of-way granted under this subsection to
provide grants to--
``(I) State, local, and Tribal governments,
and regional partnerships thereof, including
regional ocean partnerships, regional wildlife
science collaboratives, and similar
organizations; and
``(II) nonprofit organizations.
``(ii) Use of grants.--Grants provided under clause
(i) shall be used for carrying out activities related
to marine and coastal habitat protection and
restoration, mitigation of damage to natural and
cultural resources and marine life resulting from
activities authorized by this subsection, relevant
research and data sharing initiatives, or increasing
the organizational capacity of an entity described in
subclause (I) or (II) of clause (i) to increase the
effectiveness of entities that carry out such
activities.
``(D) Offshore renewable energy compensation fund.--
Notwithstanding section 9, the Secretary shall, without
appropriation or fiscal year limitation, deposit 10 percent of
the revenue received by the Federal Government from royalties,
fees, rents, bonuses, and other payments from any lease,
easement, or right-of-way granted under this subsection into
the Offshore Renewable Energy Compensation Fund established
under section 34.'';
(2) by amending paragraph (3) to read as follows:
``(3) Leasing.--
``(A) Competitive or noncompetitive basis.--The
Secretary shall issue a lease, easement, or right-of-
way under paragraph (1) on a competitive basis unless
the Secretary determines after public notice of a
proposed lease, easement, or right-of-way that there is
no competitive interest.
``(B) Schedule of offshore renewable energy lease
sales.--The Secretary shall, after providing an
opportunity for public notice and comment, publish and
periodically update a schedule of areas that may be
available for leasing in the future for offshore
renewable energy projects, indicating, to the extent
possible, the timing of site identification activities,
the timing of designation of any area to be leased, the
anticipated size of such areas, the timing of lease
sales, and the location of leasing activities.
``(C) Multi-factor bidding.--
``(i) In general.--The Secretary may
consider non-monetary factors when
competitively awarding leases under paragraph
(1), which may include commitments made by the
bidder to--
``(I) support educational,
training, and skills development,
including supporting or increasing
access to registered apprenticeship
programs, pre-apprenticeship programs,
and Tribal apprenticeships programs
that have an articulation agreement
with a registered apprenticeship
program for offshore renewable energy
projects;
``(II) support development of
domestic supply chains for offshore
renewable energy projects, including
development of ports and other energy
infrastructure necessary to facilitate
offshore renewable energy projects;
``(III) establish a community
benefit agreement with one or more
community or stakeholder groups that
may be impacted by the development and
operation of an offshore renewable
project, which may include covered
entities;
``(IV) make investments to
evaluate, monitor, improve, and
mitigate impacts to the health and
biodiversity of ecosystems and wildlife
from the development and operation of
an offshore renewable energy project;
``(V) support the development and
use of shared transmission
infrastructure connecting to offshore
renewable energy projects;
``(VI) make investments in the
preservation of Tribal cultural
resources and mitigate any impacts from
the development and operation of an
offshore renewable energy project on
such resources; and
``(VII) make other investments
determined appropriate by the
Secretary.
``(ii) Contractual commitments.--When
considering non-monetary factors under this
subparagraph, the Secretary may--
``(I) evaluate the quality of
commitments made by the bidder; and
``(II) reward finalized binding
agreements above assurances for future
commitments.
``(iii) Definitions.--In this subparagraph:
``(I) Covered entity.--The term
`covered entity' has the meaning given
such term in section 34(k).
``(II) Registered apprenticeship
program.--The term `registered
apprenticeship program' means an
apprenticeship program registered under
the Act of August 16, 1937 (commonly
known as the National Apprenticeship
Act; 50 Stat. 664, chapter 663; 29
U.S.C. 50 et seq.).'';
(3) by amending paragraph (4) to read as follows:
``(4) Requirements.--
``(A) In general.--The Secretary shall ensure that
any activity under this subsection is carried out in a
manner that provides for--
``(i) safety;
``(ii) protection of the environment, which
includes facilitation of the generation,
transmission, and storage of zero-emission
electricity;
``(iii) prevention of waste;
``(iv) conservation of the natural
resources of the outer Continental Shelf;
``(v) conservation of Tribal cultural
resources of the outer Continental Shelf;
``(vi) coordination with relevant Federal
agencies and State, Tribal, and local
governments;
``(vii) protection of national security
interests of the United States;
``(viii) protection of correlative rights
in the outer Continental Shelf;
``(ix) a fair return to the United States
for any lease, easement, or right-of-way under
this subsection;
``(x) accommodation of reasonable uses (as
determined by the Secretary) of the exclusive
economic zone, the high seas, and the
territorial seas;
``(xi) consideration of--
``(I) the location of, and any
schedule relating to, a lease,
easement, or right-of-way for an area
of the outer Continental Shelf; and
``(II) any other use of the sea or
seabed, including use for a fishery, a
sealane, a potential site of a
deepwater port, or navigation;
``(xii) public notice and comment, and
Tribal consultation in accordance with
paragraph (7), on any proposal submitted for a
lease, easement, or right-of-way under this
subsection;
``(xiii) oversight, inspection, research,
monitoring, and enforcement relating to a
lease, easement, or right-of-way under this
subsection; and
``(xiv) satisfaction or partial
satisfaction of any applicable State and
Federal renewable and clean energy mandates,
targets, and goals.
``(B) Project labor agreements.--
``(i) In general.--Beginning not later than
January 1, 2027, the Secretary shall require,
as a term or condition of each lease, right-of-
way, and easement, as applicable, for an
offshore renewable energy project, that the
holder of the lease, right-of-way, or easement,
(and any successor or assignee) and its agents,
contractors, and subcontractors engaged in the
construction of any facilities for such
offshore renewable energy project agree, for
purposes of such construction, to negotiate and
become a party to a project labor agreement
with one or more labor organizations. A project
labor agreement shall bind all contractors and
subcontractors on the project through the
inclusion of appropriate specifications in all
relevant solicitation provisions and contract
documents. The Secretary shall not approve a
construction and operations plan with respect
to any offshore renewable energy project until
being assured by the lessee that such project
labor agreement will be maintained for the
duration of the project.
``(ii) Definitions.--In this subparagraph:
``(I) Construction.--The term
`construction' includes reconstruction,
rehabilitation, modernization,
alteration, conversion, extension,
repair, or improvement of any facility,
structure, or other real property
(including any onshore facilities) for
an offshore renewable energy project.
``(II) Labor organization.--The
term `labor organization' means a labor
organization as defined in section 2(5)
of the National Labor Relations Act (29
U.S.C. 152(5))--
``(aa) of which building
and construction employees are
members; and
``(bb) that directly, or
through its affiliates,
sponsors a registered
apprenticeship program.
``(III) Project labor agreement.--
The term `project labor agreement'
means a pre-hire collective bargaining
agreement with one or more labor
organizations that establishes the
terms and conditions of employment for
a specific construction project and is
an agreement described in section 8(e)
and (f) of the National Labor Relations
Act (29 U.S.C. 158(f)).
``(IV) Registered apprenticeship
program.--The term `registered
apprenticeship program' means an
apprenticeship program registered under
the Act of August 16, 1937 (commonly
known as the National Apprenticeship
Act; 50 Stat. 664, chapter 663; 29
U.S.C. 50 et seq.).
``(C) Domestic content.--
``(i) In general.--With respect to the
construction of facilities for an offshore
renewable energy project that begins after
January 1, 2033, the Secretary shall require
that--
``(I) all structural iron and steel
products that are (upon completion of
construction) components of such
facilities shall be produced in the
United States; and
``(II) not less than 65 percent of
the total costs of all manufactured
products that are (upon completion of
construction) components of such
facilities shall be attributable to
manufactured products which are mined,
produced, or manufactured in the United
States.
``(ii) Waiver.--The Secretary may waive the
requirements of clause (i) in any case or
category of cases in which the Secretary finds
that--
``(I) applying clause (i) would be
inconsistent with the public interest;
``(II) such products are not
produced in the United States in
sufficient and reasonably available
quantities and of a satisfactory
quality; or
``(III) the use of such products
will increase the cost of the overall
project by more than 25 percent.
``(iii) Public notification.--If the
Secretary receives a request for a waiver under
clause (ii), the Secretary shall make available
to the public a copy of the request and
information available to the Secretary
concerning the request, and shall allow for
informal public input on the request for at
least 15 business days prior to making a
finding based on the request. The Secretary
shall make the request and accompanying
information available to the public by
electronic means, including on the official
public internet site of the Department of the
Interior.
``(iv) International agreements.--This
subparagraph shall be applied in a manner
consistent with United States obligations under
international agreements.
``(v) Definition of produced in the united
states.--In this subparagraph, the term
`produced in the United States' means, in the
case of iron or steel products, that all
manufacturing processes, from the initial
melting stage through the application of
coatings, occurred in the United States.'';
(4) by amending paragraph (7) to read as follows:
``(7) Coordination and consultation.--
``(A) State and local governments.--The Secretary
shall provide for coordination and consultation with
the Governor of any State or the executive of any local
government that may be affected by a lease, easement,
or right-of-way under this subsection.
``(B) Tribal consultation.--
``(i) Requirement.--The Secretary shall
conduct meaningful and timely consultation with
Indian Tribes (following the procedures of
Executive Order 13175 (25 U.S.C. 5301 note),
the President's Memorandum of Uniform Standards
for Tribal Consultation, issued on November 30,
2022, or any subsequent order) before
undertaking any activities under this
subsection, including holding a lease sale,
that may have a direct, indirect, or cumulative
impact on--
``(I) the land, including allotted,
ceded, or traditional land, or
interests in such land of an Indian
Tribe or member of an Indian Tribe;
``(II) Tribal land, cultural
practices, resources, or access to
traditional areas of cultural or
religious importance;
``(III) any part of any Federal
land that shares a border with Indian
country, as such term is defined in
section 1151 of title 18, United States
Code;
``(IV) the protected rights of an
Indian Tribe, whether or not such
rights are enumerated in a treaty,
including water, hunting, gathering,
and fishing rights;
``(V) the ability of an Indian
Tribe to govern or provide services to
members of the Indian Tribe;
``(VI) the relationship between the
Federal Government and an Indian Tribe;
or
``(VII) the trust responsibility of
the Federal Government to an Indian
Tribe.
``(ii) Confidential and sensitive
information.--
``(I) Closed meeting.--
Notwithstanding any other provision of
law, at the request of the applicable
Indian Tribe or Tribal government, any
Tribal consultation process conducted
for the purpose of carrying out this
subparagraph shall be closed to the
public.
``(II) Treatment of designated
information.--Notwithstanding any other
provision of law, during a Tribal
consultation process conducted for the
purpose of carrying out this
subparagraph, if the applicable Indian
Tribe or Tribal government designates
any information, such as the location
of a sacred site or other detail of a
cultural or religious practice, as
sensitive, that information shall be
protected by law as confidential and
withheld from any public disclosure or
publication made as part of such Tribal
consultation process or in any other
process of carrying out this Act.
``(III) Access to designated
information.--If information has been
designated as sensitive under subclause
(II), the Secretary shall determine, in
consultation with the applicable Indian
Tribe or Tribal government, who may
have access to the information for the
purposes of carrying out this Act.'';
(5) by amending paragraph (10) to read as follows:
``(10) Applicability.--
``(A) In general.--This subsection does not apply
to any area on the outer Continental Shelf within the
exterior boundaries of any unit of the National Park
System, National Wildlife Refuge System, or National
Marine Sanctuary System, or any National Monument.
``(B) Certain transmission infrastructure.--
``(i) In general.--Notwithstanding
subparagraph (A), if otherwise authorized
pursuant to the National Marine Sanctuaries Act
(16 U.S.C. 1431 et seq.), the Secretary may
issue a lease, easement, or right-of-way to
enable the transmission of electricity
generated by an offshore renewable energy
project.
``(ii) Terms and conditions.--In issuing a
lease, easement, or right-of-way under clause
(i), the Secretary may approve and regulate, as
necessary, the construction and operation of
transmission facilities and related
infrastructure for the transmission of
electricity generated by an offshore renewable
energy project in a manner that minimizes
environmental impacts and harm to Tribal
cultural resources.
``(iii) Coordination.--In approving and
regulating the construction and operation of
facilities under clause (ii), the Secretary
shall coordinate with the Secretary of Commerce
to ensure the duration of any necessary
authorizations of such facilities under the
National Marine Sanctuaries Act aligns with the
duration of the relevant leases, easements, or
rights-of-way issued under clause (i).''; and
(6) by adding at the end the following:
``(11) Planning area impact studies.--
``(A) In general.--Beginning three years after the
date of enactment of this paragraph, before holding any
lease sale pursuant to paragraph (1) for an area, the
Secretary shall conduct a study of such area, or the
wider planning area that includes such area, in order
to establish information needed for assessment and
management of the environmental impacts on the human,
marine, and coastal environments, and the Tribal
cultural resources, of the outer Continental Shelf and
the coastal areas which may be affected by offshore
renewable energy projects in such area or planning
area.
``(B) Inclusions.--A study conducted under
subparagraph (A) shall--
``(i) incorporate the best available
existing science and data, including Tribal
Traditional Ecological Knowledge;
``(ii) identify areas for which there is
insufficient science and data; and
``(iii) include consideration of the
cumulative impacts (including potential
navigational impacts) of offshore renewable
energy projects on human, marine, and coastal
environments.
``(C) Use of data and assessments.--The Secretary
shall use the data and assessments from studies
conducted under this paragraph, as appropriate, when
deciding--
``(i) which portions of an area or region
are most appropriate to make available for
leasing; and
``(ii) whether to issue any permit or other
authorization that is necessary to carry out an
offshore renewable energy project.
``(D) NEPA applicability.--The Secretary shall not
consider a study conducted under subparagraph (A) to be
a major Federal action under section 102(2)(C) of the
National Environmental Policy Act of 1969.
``(12) Capacity building and community engagement.--
``(A) In general.--The Secretary, in consultation
with the Secretary of Commerce, may award grants to
entities to build organizational capacity and enhance
engagement opportunities related to offshore renewable
energy project development, including environmental and
cultural reviews and permitting activities of such
projects.
``(B) Purposes.--Grants awarded under subparagraph
(A) shall be for--
``(i) enabling States, Indian Tribes,
affected ocean users, and nonprofit
associations that represent affected ocean
users to compile data, conduct analyses,
educate stakeholders, and complete other
activities relating to offshore renewable
energy project development;
``(ii) engaging in planning activities
related to the development of offshore
renewable energy projects to--
``(I) determine potential economic,
social, public health, environmental,
and cultural benefits and impacts
resulting from offshore renewable
energy projects; and
``(II) identify opportunities to
mitigate such impacts;
``(iii) facilitating siting of offshore
renewable energy projects and associated
electric transmission infrastructure; and
``(iv) hiring and training of personnel,
and other activities designed to increase the
capacity of States, Indian Tribes, and
nonprofit associations, as applicable, to carry
out activities described in clauses (i) through
(iii).
``(C) Prioritization.--When awarding grants under
subparagraph (A), the Secretary shall prioritize
awarding grants that will be used to build
organizational capacity and enhance community
engagement opportunities of Indian Tribes.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry
out this paragraph $25,000,000 for each of fiscal years
2026 through 2030.''.
(d) Reservations.--Section 12(a) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1341(a)) is amended to read as follows:
``(a) Withdrawal of Unleased Lands by the President.--
``(1) In general.--The President of the United States may,
from time to time, withdraw from disposition any of the
unleased lands of the outer Continental Shelf.
``(2) Modification for certain offshore renewable energy
projects.--With respect to a withdrawal under paragraph (1) of
unleased lands from disposition, the President may modify such
a withdrawal only to allow for leasing under section 8(p)(1)(C)
and only if the President determines that environmental,
Tribal, national security, or national or regional energy
conditions or demands have changed such that a modification
would be in the public interest.''.
(e) Citizen Suits, Court Jurisdiction, and Judicial Review.--
Section 23(c)(2) of the Outer Continental Shelf Lands Act (43 U.S.C.
1349(c)(2)) is amended to read as follows:
``(2) Any action of the Secretary to approve, require modification
of, or disapprove any exploration plan or development and production
plan under this Act, or any plan, final lease, easement, or right-of-
way granted pursuant to section (8)(p)(1) (and any related final
Federal agency actions), shall be subject to judicial review only in a
United States court of appeals for a circuit in which an affected State
or Indian Tribe is located.''.
SEC. 4. OFFSHORE RENEWABLE ENERGY COMPENSATION FUND.
The Outer Continental Shelf Lands Act (43 U.S.C. 1331) is amended
by adding at the end the following:
``SEC. 34. OFFSHORE RENEWABLE ENERGY COMPENSATION FUND.
``(a) Establishment.--There is established in the Treasury of the
United States the Offshore Renewable Energy Compensation Fund, which
shall be used by the Secretary, or a third party the Secretary enters
into a contract with, to provide to covered entities--
``(1) payments for claims--
``(A) described under subsection (f)(1); and
``(B) verified pursuant to subsection (d)(1); and
``(2) grants to carry out mitigation activities described
in subsection (f)(2).
``(b) Availability of Fund.--The Fund shall be available to the
Secretary without fiscal year limitations for the purpose of providing
payments and grants under subsection (a).
``(c) Accounts.--The Fund shall--
``(1) consist of the royalties, fees, rents, bonuses, and
other payments deposited under section 8(p)(2)(D); and
``(2) be divided into separate area accounts from which
payments and grants shall be provided based on the area in
which damages occur.
``(d) Regulations.--The Secretary shall establish, by regulation, a
process to--
``(1) file, process, and verify claims for purposes of
providing payments under subsection (a)(1); and
``(2) apply for a grant provided under subsection (a)(2).
``(e) Payment Amount.--Payments provided under subsection (a)(1)
shall--
``(1) be based on the scope of the verified claim;
``(2) be fair and provided efficiently and in a transparent
manner; and
``(3) if the covered entity receiving the payment has or
will receive direct compensation for the verified claim
pursuant to a community benefit agreement or other agreement
between such covered entity and a holder of a lease, easement,
or right-of-way, be reduced by an amount that is equal to the
amount of such direct compensation.
``(f) Claims; Mitigation Grants.--
``(1) Claims.--A payment may be provided under subsection
(a)(1) for a verified claim to--
``(A) replace or repair gear that was lost or
damaged by the development, construction, operation, or
decommissioning of an offshore renewable energy
project; or
``(B) replace income that was lost from the
development, construction, operation, or
decommissioning of an offshore renewable energy
project.
``(2) Mitigation grants.--If the Secretary determines that
there are sufficient amounts in an area account of the Fund to
provide payments for all verified claims at any given time, the
Secretary may use amounts in the Fund to provide grants to
covered entities, and other entities determined appropriate by
the Secretary, to mitigate the potential effects of
development, construction, operation, and decommissioning of an
offshore renewable energy project, including by paying for gear
changes, navigation technology improvements, and other measures
to enhance the safety and resiliency of the covered entities
and such other entities.
``(g) Advisory Group.--
``(1) In general.--The Secretary shall establish and
regularly convene an advisory group that shall provide
recommendations on the development and administration of this
section.
``(2) Membership.--The advisory group shall--
``(A) be comprised of individuals--
``(i) appointed by the Secretary; and
``(ii) representing the geographic
diversity of areas impacted by the development,
construction, operation, or decommissioning of
offshore renewable energy projects; and
``(B) include representatives from--
``(i) recreational fishing interests;
``(ii) commercial fishing interests;
``(iii) Tribal interest;
``(iv) the National Marine Fisheries
Service;
``(v) the fisheries science community; and
``(vi) other fields of expertise necessary
to effectively develop and administer this
section, as determined by the Secretary.
``(3) Travel expenses.--The Secretary may provide amounts
to any member of the advisory group to pay for travel expenses,
including per diem in lieu of subsistence, at rates authorized
for an employee of an agency under section 5703 of title 5,
United States Code, while away from the home or regular place
of business of the member in the performance of the duties of
the advisory group.
``(h) Insufficient Funds.--
``(1) In general.--If the Secretary determines that an area
account does not contain a sufficient amount to provide
payments under subsection (a)(1), the Secretary may, not more
than once each calendar year, require any holder of an offshore
renewable energy lease located within the area covered by the
area account to pay an amount specified by the Secretary, which
shall be deposited into such area account.
``(2) Amount.--No holder of an offshore renewable energy
lease shall be required to pay an amount under paragraph (1) in
excess of $3 per acre of the leased land described in paragraph
(1).
``(j) Administrative Expenses.--The Secretary may use up to 15
percent of the amount deposited into the Fund under section 8(p)(2)(D)
during a fiscal year for administrative expenses to carry out this
section.
``(j) Annual Report.--The Secretary shall submit to Congress, and
make publicly available, an annual report on activities carried out
under this section, including a description of claims filed and the
amount of payments and grants provided.
``(k) Definitions.--In this section:
``(1) Covered entity.--The term `covered entity' means--
``(A) a community, stakeholder, or Tribal
interest--
``(i) that uses a geographic space of a
lease area, including for Tribal cultural and
religious uses, or uses resources harvested
from a geographic space of a lease area; and
``(ii) for which such use is directly and
adversely impacted by the development,
construction, operation, or decommissioning of
an offshore renewable energy project located in
such leased area; or
``(B) a regional association, cooperative, non-
profit organization, commission, or corporation that--
``(i) serves a community, stakeholder, or
Tribal interest described in subparagraph (A);
and
``(ii) acts on behalf of such a community,
stakeholder, or Tribal interest for purposes of
this section, including by submitting a claim
for a covered entity under this section.
``(2) Fund.--The term `Fund' means the Offshore Renewable
Energy Compensation Fund established under subsection (a).
``(3) Lease area.--The term `lease area' means an area
covered by an offshore renewable energy lease.
``(4) Offshore renewable energy lease.--The term `offshore
renewable energy lease' means a lease, easement, or right-of-
way granted under section 8(p)(1)(C).''.
SEC. 5. IMPROVING ENVIRONMENTAL AND CULTURAL REVIEWS TO ENSURE TIMELY
PERMITTING DECISIONS.
(a) Bureau of Ocean Energy Management.--In addition to amounts
otherwise available, there is appropriated to the Secretary of the
Interior for fiscal year 2026, out of any money in the Treasury not
otherwise appropriated, $50,000,000 to remain available until expended,
to provide for the hiring and training of personnel, the development of
programmatic environmental documents, the procurement of technical or
scientific services for environmental and cultural reviews, the
development of cultural competency for Tribal consultations, support of
regional ocean data portals, the development of environmental data or
information systems (including efforts to standardize, establish a
baseline for, publish, or otherwise improve the consistency of
environmental data), the development of pre-application components,
stakeholder and community engagement, updates to the Marine Cadastre
for advancements in spatial data analysis and deconfliction, the
purchase of new equipment for environmental analysis, and coordination
(including through the public tracking of Federal authorizations and
reviews) to facilitate timely, efficient, and responsible permitting
and review of offshore renewable energy projects.
(b) National Oceanic and Atmospheric Administration.--In addition
to amounts otherwise available, there is appropriated to the Secretary
of Commerce for fiscal year 2026, out of any money in the Treasury not
otherwise appropriated, $45,000,000 to remain available until expended,
to provide for the hiring and training of personnel, the development of
programmatic environmental documents, the procurement of technical or
scientific services for environmental and cultural reviews, the
development of cultural competency for Tribal consultations, support of
regional ocean data portals, the development of environmental data or
information systems (including efforts to standardize, baseline,
publish, or otherwise improve the consistency of environmental data),
stakeholder and community engagement, updates to the Marine Cadastre
for advancements in spatial data analysis and deconfliction, adaptation
of scientific and fisheries surveys, and the purchase of new equipment
for environmental analysis to facilitate timely, efficient, and
responsible environmental reviews for the permitting of offshore
renewable energy projects.
SEC. 6. REPORT ON DECOMMISSIONING OF OFFSHORE RENEWABLE ENERGY
PROJECTS.
Not later than 10 years after the date of enactment of this Act,
the Secretary of the Interior shall submit to Congress, and make
publicly available, a report evaluating decommissioning options for
offshore renewable energy projects (and associated electric
transmission infrastructure), including an assessment of the potential
for the holder of a lease, easement, or right-of-way to keep facilities
in place or otherwise convert such facilities to artificial reefs to
support marine habitats, provided that such facilities will not
adversely impact navigation, national security, the marine environment,
Tribal uses, or other competing uses of the outer Continental Shelf.
SEC. 7. OFFSHORE POWER ADMINISTRATION.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy shall establish the
Offshore Power Administration.
(b) Authorities.--
(1) In general.--The Offshore Power Administration may,
subject to paragraphs (2) and (3)--
(A) construct, finance, facilitate, plan, operate,
maintain, acquire, and study covered transmission
infrastructure; and
(B) support construction, financing, facilitation,
planning, operation, maintenance, acquisition, and
study of covered transmission infrastructure.
(2) Limitation on construction.--
(A) In general.--The Offshore Power Administration
may not construct covered transmission infrastructure
in any region until the Secretary of Energy has made a
determination (in consultation with the Secretary of
the Interior) that the relevant State governments,
regional transmission organizations, offshore renewable
energy project developers, and other stakeholders in
such region have failed to adequately coordinate and
cooperate on the development and use of shared covered
transmission infrastructure.
(B) Initial delay.--The Secretary of Energy may not
make a determination under this paragraph sooner than 3
years after the date of enactment of this Act.
(3) Leases, easements, and rights-of way.--In carrying out
any activity under paragraph (1), the Offshore Power
Administration shall be subject to the requirements to obtain a
lease, easement, or right-of-way under section 8(p) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337).
(c) Governance.--
(1) Organization.--The Offshore Power Administration shall
be preserved as a separate and distinct organizational entity
within the Department of Energy and shall be headed by an
Administrator appointed by the Secretary of Energy.
(2) Regional offices.--The Administrator shall establish
and maintain such regional offices as necessary to facilitate
the performance of the Offshore Power Administration.
(d) Loans.--
(1) In general.--Notwithstanding any other provision of
law, the Secretary of the Treasury shall, without appropriation
and without fiscal year limitation, make loans to the Offshore
Power Administration that, in the judgment of the
Administrator, are required to carry out the activities listed
in subsection (b)(1).
(2) Terms and conditions.--
(A) In general.--Subject to subparagraphs (B) and
(C), loans made by the Secretary of the Treasury under
paragraph (1) shall include such terms and conditions
that the Administrator and Secretary of the Treasury
may agree to.
(B) Interest.--The rate of interest to be charged
in connection with any loan made under paragraph (1)
shall be fixed by the Secretary of the Treasury, taking
into consideration market yields on outstanding
marketable obligations of the United States of
comparable maturities as of the date on which the loan
is made.
(C) Limitation.--Loans made by the Secretary of the
Treasury under paragraph (1) may not result in, in the
aggregate (including deferred interest),
$10,000,000,000 in outstanding repayable balances at
any one time.
(3) Refinancing.--The Administrator may refinance loans
made pursuant to this section with the Secretary of the
Treasury in accordance with paragraph (2).
(e) Agreements and Partnerships.--The Administrator may enter into
agreements and partnerships with other entities to carry out any of the
activities listed in subsection (b)(1).
(f) Disposition of Revenue.--
(1) In general.--With respect to covered transmission
infrastructure owned and operated by the Offshore Power
Administration pursuant to this section, the Administrator
shall use qualified revenue to pay the principal and interest
of the loan made by Secretary of the Treasury with respect to
such covered transmission infrastructure.
(2) Qualified revenue.--In this subsection, the term
``qualified revenue'' means--
(A) all revenue received by the Offshore Power
Administration from the operation of the covered
transmission infrastructure; less
(B) the amount the Administrator determines
necessary to--
(i) pay the costs of operating and
maintaining the covered transmission
infrastructure, including expenses described in
subsection (g)(2); and
(ii) pay for any ancillary services that
are used by the Offshore Power Administration.
(g) Forgiveness of Balances.--
(1) In general.--If, at the end of the useful life of any
covered transmission infrastructure acquired, constructed,
maintained, or operated by the Offshore Power Administration
pursuant to this section there is a remaining balance owed to
the Treasury for a loan made under this section for any such
purpose, such balance shall be forgiven.
(2) Studies.--A loan made under this section for purposes
of studying covered transmission infrastructure that is not
constructed shall be forgiven upon notification under paragraph
(3).
(3) Notification.--The Administrator shall notify the
Secretary of the Treasury of such amounts as are to be forgiven
under this subsection.
(h) Administration.--
(1) Accounts and audits.--
(A) In general.--The Administrator shall keep
complete and accurate accounts of the operation of
covered transmission infrastructure owned and operated
by the Offshore Power Administration, including all
funds expended and received in connection with
transmission of electric energy by the Offshore Power
Administration.
(B) Audits.--The Administrator shall, after the
close of each fiscal year, obtain an independent
commercial-type audit of such accounts.
(2) Expenses.--The Administrator may make such expenditures
for offices, vehicles, furnishings, equipment, supplies, books,
travel for attendance at meetings, and for such other
facilities and services as the Administrator determines
necessary to carry out this section.
(i) Prevailing Wage.--All laborers and mechanics employed by
contractors and subcontractors in the performance of construction work
carried out or funded by in whole or in part by the Offshore Power
Administration shall be paid wages at rates not less than those
prevailing on projects of a character similar in the locality as
determined by the Secretary of Labor in accordance with subchapter IV
of chapter 31 of title 40, United States Code. With respect to the
labor standards in this subsection, the Secretary of Labor shall have
the authority and functions set forth in Reorganization Plan Number 14
of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40,
United States Code.
(j) Coordination and Consultation.--
(1) State and local governments.--The Administrator shall
provide for coordination and consultation with the Governor of
any State or the executive of any local government that may be
affected by activities under this section.
(2) Tribal consultation.--
(A) In general.--The Administrator shall conduct
meaningful and timely consultation with Indian Tribes
(following the procedures of Executive Order 13175 (25
U.S.C. 5301 note), the President's Memorandum of
Uniform Standards for Tribal Consultation, issued on
November 30, 2022, or any subsequent order) before
undertaking any activities under this section that may
have a direct, indirect, or cumulative impact on--
(i) the land, including allotted, ceded, or
traditional land, or interests in such land of
an Indian Tribe or member of an Indian Tribe;
(ii) Tribal land, cultural practices,
resources, or access to traditional areas of
cultural or religious importance;
(iii) any part of any Federal land that
shares a border with Indian country, as such
term is defined in section 1151 of title 18,
United States Code;
(iv) the protected rights of an Indian
Tribe, whether or not such rights are
enumerated in a treaty, including water,
hunting, gathering, and fishing rights;
(v) the ability of an Indian Tribe to
govern or provide services to members of the
Indian Tribe;
(vi) the relationship between the Federal
Government and an Indian Tribe; or
(vii) the trust responsibility of the
Federal Government to an Indian Tribe.
(B) Confidential and sensitive information.--
(i) Closed meeting.--Notwithstanding any
other provision of law, at the request of the
applicable Indian Tribe or Tribal government,
any Tribal consultation process conducted for
the purpose of carrying out this subsection
shall be closed to the public.
(ii) Treatment of designated information.--
Notwithstanding any other provision of law,
during a Tribal consultation process conducted
for the purpose of carrying out this
subsection, if the applicable Indian Tribe or
Tribal government designates any information,
such as the location of a sacred site or other
detail of a cultural or religious practice, as
sensitive, that information shall be protected
by law as confidential and withheld from any
public disclosure or publication made as part
of such Tribal consultation process or in any
other process of carrying out this section.
(iii) Access to designated information.--If
information has been designated as sensitive
under clause (ii), the Secretary shall
determine, in consultation with the applicable
Indian Tribe or Tribal government, who may have
access to the information for the purposes of
carrying out this section.
(k) Annual Report to Congress.--Beginning January 1, 2027, and each
year thereafter, not later than 180 days after the end of each year,
the Administrator shall submit to Congress a report for the previous
year that includes--
(1) a description of the activities of the Offshore Power
Administration;
(2) an accounting of the use of loans made under this
section; and
(3) an assessment of the coordination and cooperation by
relevant State and Tribal governments, regional transmission
organizations, offshore renewable energy project developers,
and other stakeholders the Secretary of Energy determines are
relevant in each region to develop and use shared covered
transmission infrastructure.
(l) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Offshore Power Administration.
(2) Covered transmission infrastructure.--The term
``covered transmission infrastructure''--
(A) means electric power transmission
infrastructure, and any related facilities thereof,
that serves at least one offshore renewable energy
project; and
(B) includes onshore facilities that enable the
interconnection of offshore renewable energy projects.
SEC. 8. OFFSHORE TRANSMISSION INFRASTRUCTURE STUDIES AND
RECOMMENDATIONS.
(a) Studies and Recommendations.--The Secretary of Energy, in
consultation with the Secretary of the Interior, the interagency
comprehensive digital mapping initiative established under section
388(b) of the Energy Policy Act of 2005, and other relevant Federal,
State, Tribal, and local agencies, shall periodically conduct studies
and make recommendations available to the public on the potential
siting of offshore transmission infrastructure in a manner that--
(1) achieves sufficient transmission capacity to support
offshore energy development to meet State, Tribal, or Federal
renewable or clean electricity mandates, targets, or goals;
(2) promotes safety, national security, Tribal sovereignty,
and environmental protection while minimizing impacts to
cultural and living marine resources, including Tribal cultural
resources; and
(3) leads to efficient development of onshore points of
interconnection.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy to carry out this section
$10,000,000, to remain available until expended.
SEC. 9. INTEROPERABILITY OF OFFSHORE ELECTRIC TRANSMISSION
INFRASTRUCTURE.
(a) Study.--Not later than 2 years after the date of enactment of
this Act, the Secretary of Energy shall complete and publish on the
website of the Department of Energy a study that assesses the need to,
and challenges of, developing and standardizing interoperable electric
grid components, systems, and technologies in support of shared
offshore transmission networks. Such study shall include
recommendations for Congress, State, Tribal, and local governments,
manufacturers of electric grid components, systems, and technologies,
regional transmission organizations, offshore electricity generation
project developers, and appropriate standards organizations to help
ensure interoperability of electric grid components, systems, and
technologies across seams between offshore electricity generation
projects and shared offshore infrastructure connecting to onshore
transmission systems.
(b) Interoperability Standard Development Program.--
(1) In general.--The Secretary of Energy shall establish
and implement a program to identify, develop, support,
document, and encourage the adoption of a set of standards
necessary to maximize the interoperability of electric grid
components, systems, and technologies to accelerate the
implementation and delivery of electricity generated by
offshore electricity generation projects through shared
transmission infrastructure.
(2) Goals.--The goals of establishing and implementing the
program under paragraph (1) shall be--
(A) to harmonize and standardize functional
specifications of electric grid components, systems,
and technologies to maximize the interoperability of
electric grid components, systems, and technologies
across technologies and manufacturers;
(B) to hasten adoption of shared transmission
infrastructure for offshore electricity generation by
encouraging cooperation among manufacturers of electric
grid components, systems, or technologies in order to--
(i) maximize interoperability of such
manufacturers' electric grid components,
systems, and technologies;
(ii) reduce offshore electricity generation
project delays and cost overruns;
(iii) manage power grid complexity; and
(iv) enhance electric grid resilience,
reliability, and cybersecurity; and
(C) to identify common technical specifications to
effectively and securely measure, monitor, control, and
protect offshore electricity generation and
transmission infrastructure from the point of
generation to load centers.
(3) Grants.--Under the program established and implemented
under paragraph (1), the Secretary may provide grants to
entities to--
(A) engage equipment manufacturers and industry
stakeholders in collaborative platforms, including
workshops and forums;
(B) identify current challenges and propose
solutions to improve interoperability of electric grid
components, systems, and technologies; and
(C) develop a set of voluntary industry standards
to maximize interoperability of electric grid
components, systems, and technologies that meet the
goals described in paragraph (2).
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy to carry out this section
$5,000,000, to remain available until expended.
SEC. 10. OFFSHORE WIND SHIPBUILDING.
(a) Offshore Wind Shipyard Grant Program.--
(1) In general.--The Secretary of Energy shall establish a
program to support the refurbishment, retooling, expansion,
modernization, and establishment of shipyards and other
manufacturing facilities by providing grants for the
fabrication, repair, and conversion of vessels needed for the
pre-construction assessment, construction, operation, and
maintenance of offshore wind energy projects.
(2) Recipients.--Under the program established under
paragraph (1), the Secretary of Energy may provide grants to
shipyard owners and operators, fabricators of the vessels
described in paragraph (1), and relevant component suppliers.
(3) Prevailing wage.--The Secretary of Energy shall take
such action as may be necessary to ensure all laborers and
mechanics employed by contractors or subcontractors during
construction, alteration, or repair that is supported, in whole
or in part, by grants provided under this section shall be paid
wages at rates not less than those prevailing on similar
construction in the locality, as determined by the Secretary of
Labor in accordance with subchapter IV of chapter 31 of title
40, United States Code. With respect to the labor standards in
this subsection, the Secretary of Labor shall have the
authority and functions set forth in Reorganization Plan Number
14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of
title 40, United States Code.
(4) Cost share.--Section 988(c) of the Energy Policy Act of
2005 (42 U.S.C. 16352(c)) shall apply to a grant provided under
this section as if such grant were a demonstration or
commercial application activity described in section 988(a) of
such Act.
(5) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out this
section $100,000,000, to remain available until expended.
(b) Loan Guarantees for Wind Turbine Installation Vessels.--Section
1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is
amended by adding at the end the following:
``(14) Notwithstanding subsection (a)(1), projects that
increase the supply of domestically produced vessels needed for
the pre-construction assessment, construction, operation, and
maintenance of offshore wind energy projects, including wind
turbine installation vessels.''.
SEC. 11. ACCESS TO OFFSHORE RENEWABLE ENERGY AREAS.
It is the sense of Congress that fishing and boating access, and
Tribal cultural activities and lifeways, in and around offshore
renewable energy projects will be maintained with narrow exceptions for
construction and maintenance activities.
SEC. 12. DEFINITIONS.
In this Act, the terms ``offshore renewable energy project'' and
``outer Continental Shelf'' have the meanings given such terms in
section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331).
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