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.

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.

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

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.

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:

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).

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.

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.

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

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.

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.

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.

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.

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.

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).