Offshore Energy Modernization Act of 2022
This bill addresses the implementation and administration of offshore renewable energy projects, including by establishing the Offshore Power Administration to (1) construct, finance, facilitate, plan, operate, maintain, acquire, and study covered transmission infrastructure; and (2) support construction, financing, facilitation, planning, operation, maintenance, acquisition, and study of covered transmission infrastructure.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9641 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9641
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
December 21, 2022
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 2022''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Responsible development of offshore renewable energy projects.
Sec. 3. Offshore Renewable Energy Compensation Fund.
Sec. 4. Improving environmental reviews to ensure timely permitting
decisions.
Sec. 5. Report on decommissioning of offshore renewable energy
projects.
Sec. 6. Offshore power administration.
Sec. 7. Offshore transmission infrastructure studies and
recommendations.
Sec. 8. Interoperability of offshore transmission infrastructure.
Sec. 9. Offshore wind shipbuilding.
Sec. 10. Access to offshore renewable energy areas.
Sec. 11. Definitions.
SEC. 2. 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 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--
``(A) supports the generation, transmission, and
storage of zero-emission electricity; and
``(B) is consistent with the maintenance of
competition and other national needs, including the
need to achieve State 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 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''; and
(ii) 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 and Regional
Wildlife Science Collaboratives; 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 resources
and marine life, 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.--Except
with respect to projects that meet the criteria
established under section 388(d) of the Energy Policy
Act of 2005, 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 or increase access to
registered apprenticeship programs and
pre-apprenticeship programs that have
an articulation agreement with a
registered apprenticeships 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, which
may include covered entities;
``(IV) make investments to
evaluate, monitor, improve, and
mitigate impacts to the health and
biodiversity of ecosystems and wildlife
within the leased area; and
``(V) make other investments
determined appropriate by the
Secretary.
``(ii) Contractual commitments.--When
considering non-monetary factors under this
subparagraph, the Secretary shall--
``(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) coordination with relevant Federal
agencies and State, Tribal, and local
governments;
``(vi) protection of national security
interests of the United States;
``(vii) protection of correlative rights in
the outer Continental Shelf;
``(viii) a fair return to the United States
for any lease, easement, or right-of-way under
this subsection;
``(ix) reasonable uses (as determined by
the Secretary) of the exclusive economic zone,
the high seas, and the territorial seas;
``(x) 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;
``(xi) public notice and comment on any
proposal submitted for a lease, easement, or
right-of-way under this subsection;
``(xii) oversight, inspection, research,
monitoring, and enforcement relating to a
lease, easement, or right-of-way under this
subsection; and
``(xiii) 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, 2024, 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, negotiate or
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.--Beginning not later than
December 31, 2031, the Secretary shall require
that--
``(I) all structural iron and steel
products that are (upon completion of
construction) components of facilities
for an offshore renewable energy
project shall be produced in the United
States; and
``(II) not less than 80 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
this subparagraph, the Secretary shall make
available to the public, on an informal basis,
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 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
paragraph shall be applied in a manner
consistent with United States obligations under
international agreements.'';
(4) 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.--
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, including a lease, easement,
or right-of-way for electrical substations and other
infrastructure used to transmit electricity generated
by an offshore renewable energy project.''; and
(5) by adding at the end the following:
``(11) Regional impact studies.--
``(A) In general.--Beginning two 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
region 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 of the outer Continental Shelf and the
coastal areas which may be affected by offshore
renewable energy projects in such area or region.
``(B) Inclusions.--A study conducted under
subparagraph (A)--
``(i) may incorporate the best available
existing science and data;
``(ii) may identify areas for which there
is insufficient science and data; and
``(iii) shall 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 included in 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 conducting
a study under subparagraph (A) shall not be considered
a major Federal action under section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)).''.
(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) Reversal for certain offshore renewable energy
projects.--With respect to a withdrawal under paragraph (1) of
unleased lands from disposition, the President may reverse such
a withdrawal only to allow for leasing under section
(8)(p)(1)(C) and only if the President determines that
environmental, national security, or national or regional
energy conditions or demands have changed such that a reversal
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 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 is
located.''.
SEC. 3. 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 to provide to eligible recipients--
``(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, rentals, 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 eligible recipient receiving the payment has
or will receive direct compensation for the verified claim
pursuant to a community benefit agreement or other agreement
between such eligible recipient 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) Eligible Claims; Mitigation Grants.--
``(1) Eligible claims.--A payment may be provided under
subsection (a)(1) for a claim to--
``(A) replace or repair gear that was lost or
damaged by the development of an offshore renewable
energy project; or
``(B) replace income that was lost from the
development 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
eligible recipients, and other entities determined appropriate
by the Secretary, to mitigate the potential effects of
development of an offshore renewable energy project, including
by paying for gear changes, navigation technology improvements,
and other measures to enhance safety.
``(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
of offshore renewable energy projects; and
``(B) include representatives from--
``(i) recreational fishing interests;
``(ii) commercial fishing interests;
``(iii) Tribal fishing interests;
``(iv) the National Marine Fisheries
Services;
``(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 in excess of $1 per
acre of the leased land described in paragraph (1).
``(i) Administrative Expenses.--The Secretary may use up to 15
percent of any amount deposited into the Fund under section 8(p)(2)(D)
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
community, stakeholder, or tribal interest--
``(A) that uses a geographic space of a lease area,
or uses resources harvested from a geographic space of
a lease area; and
``(B) for which such use is directly and adversely
impacted by the development of an offshore renewable
energy project located in such leased area.
``(2) Eligible recipient.--The term `eligible recipient'
means--
``(A) a covered entity that is located in the
United States; or
``(B) a regional association, cooperative, non-
profit organization, commission, or corporation that--
``(i) serves a covered entity;
``(ii) acts on behalf of a covered entity
for purposes of this section, including by
submitting a claim for a covered entity; and
``(iii) is located in the United States.
``(3) Fund.--The term `Fund' means the Offshore Renewable
Energy Compensation Fund established under subsection (a).
``(4) Lease area.--The term `lease area' means an area
covered by an offshore renewable energy lease.
``(5) 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. 4. IMPROVING ENVIRONMENTAL 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 2023, 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 reviews, 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 and efficient permitting 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 2023, 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 reviews, 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 and efficient
environmental reviews for the permitting of offshore renewable energy
projects.
SEC. 5. REPORT ON DECOMMISSIONING OF OFFSHORE RENEWABLE ENERGY
PROJECTS.
Not later than 5 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, 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,
or other competing uses of the outer Continental Shelf.
SEC. 6. 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 the
Secretary of Energy determines are relevant 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 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 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 Numbered 14 of 1950 (64
Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States
Code.
(j) Annual Report to Congress.--Beginning January 1, 2026, 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 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.
(k) 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. 7. OFFSHORE TRANSMISSION INFRASTRUCTURE 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 transmission capacity to support offshore
energy development to meet State or Federal renewable or clean
electricity mandates, targets, or goals;
(2) promotes safety, national security, and environmental
protection while minimizing impacts to cultural and living
marine resources; and
(3) leads to efficient development of onshore points of
interconnection.
SEC. 8. INTEROPERABILITY OF OFFSHORE 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 equipment
and systems 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
renewable energy project developers, and appropriate standards
organizations to help ensure interoperability across seams between
offshore renewable energy projects, States, and regions on the outer
Continental Shelf.
(b) Interoperability Standard Development Program.--
(1) In general.--The Secretary of Energy shall establish
and implement a program to identify, develop, implement,
support, and document a standard for interoperability of
electric grid components, systems, and technologies to
accelerate the implementation and delivery of electricity
generated by offshore renewable energy projects through shared
transmission infrastructure.
(2) Goals.--The goals of developing an interoperability
standard under subparagraph (1) shall be--
(A) to hasten adoption of shared transmission
infrastructure for offshore electricity generation by
encouraging cooperation of manufacturers of electric
grid components, systems, or technologies in order to--
(i) maximize interoperability among
manufacturers' systems, products, tools, and
applications;
(ii) reduce offshore renewable energy
project delays and cost overruns;
(iii) manage power grid complexity; and
(iv) enhance grid resilience, reliability,
and cybersecurity; and
(B) to establish technical baseline requirements to
effectively and securely measure, monitor, control, and
protect electricity generation and transmission
infrastructure from the point of generation to the
control center.
(3) Financial assistance.--The Secretary may provide
financial assistance under the program to entities to carry out
activities that--
(A) engage equipment manufacturers and industry
stakeholders in collaborative platforms, including
workshops and forums;
(B) identify current challenges and propose
solutions to improve interoperability; and
(C) develop an industry interoperability standard
that meets the goals described in paragraph (2) for
voluntary implementation.
(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. 9. 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
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
Numbered 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.--At the
end of Section 1703(b) of the Energy Policy Act of 2005, add the
following:
``(14) Notwithstanding subsection (a)(1), projects that
increase the domestically produced supply of offshore wind
vessels, including wind turbine installation vessels.''.
SEC. 10. ACCESS TO OFFSHORE RENEWABLE ENERGY AREAS.
It is the sense of Congress that fishing and boating access in and
around offshore renewable energy projects will be maintained with
narrow exceptions for construction and maintenance activities.
SEC. 11. 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).
<all>
Introduced in House
Introduced in House
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.
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.
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.
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