I 
119TH CONGRESS 
1ST SESSION H. R. 3742 
To amend the Outer Continental Shelf Lands Act to support the responsible 
development of offshore renewable energy projects, establish the Offshore 
Power Administration, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2025 
Mr. TONKO introduced the following bill; which was referred to the Committee 
on Natural Resources, and in addition to the Committees on Energy and 
Commerce, and Science, Space, and Technology, for a period to be subse-
quently 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Offshore Energy Modernization Act of 2025’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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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 permit-
ting decisions. 
Sec. 6. Report on decommissioning of offshore renewable energy projects. 
Sec. 7. Offshore Power Administration. 
Sec. 8. Offshore transmission infrastructure studies and recommendations. 
Sec. 9. Interoperability of offshore electric transmission infrastructure. 
Sec. 10. Offshore wind shipbuilding. 
Sec. 11. Access to offshore renewable energy areas. 
Sec. 12. Definitions. 
SEC. 2. NATIONAL OFFSHORE WIND PERMITTING GOALS. 
(a) IN GENERAL.—The Secretary of the Interior 
shall, in consultation with the Secretary of Energy and 
other relevant Federal agencies and State governments, 
establish and periodically update national goals for off-
shore wind energy production on the outer Continental 
Shelf. 
(b) MINIMUM PRODUCTION REQUIREMENTS
FOR 
2030 AND 2035.—Through management of the outer Con-
tinental 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 en-
ergy 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. 
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SEC. 3. RESPONSIBLE DEVELOPMENT OF OFFSHORE RE-
NEWABLE ENERGY PROJECTS. 
(a) DEFINITIONS.—Section 2 of the Outer Conti-
nental 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 CONTI-
NENTAL 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 fol-
lows: 
‘‘(3) the outer Continental Shelf is a vital na-
tional resource reserve held by the Federal Govern-
ment for the public, which should be made available 
for expeditious and orderly development, subject to 
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environmental safeguards and coexistence with other 
ocean users, in a manner which includes— 
‘‘(A) supporting the generation, trans-
mission, 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, tar-
gets, and goals;’’; 
(2) by redesignating paragraphs (5) and (6) as 
paragraphs (6) and (7), respectively; and 
(3) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) the identification, development, and pro-
duction of lease areas for offshore renewable energy 
projects should be determined by a robust and trans-
parent stakeholder process that incorporates engage-
ment 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— 
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(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 MITI-
GATION ACTIVITIES.— 
‘‘(i) IN
GENERAL.—Notwithstanding sec-
tion 9, the Secretary shall, without appropria-
tion or fiscal year limitation, use 10 percent of 
the revenue received by the Federal Govern-
ment 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 govern-
ments, and regional partnerships thereof, 
including regional ocean partnerships, re-
gional wildlife science collaboratives, and 
similar organizations; and 
‘‘(II) nonprofit organizations. 
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‘‘(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 dam-
age to natural and cultural resources and ma-
rine life resulting from activities authorized by 
this subsection, relevant research and data 
sharing initiatives, or increasing the organiza-
tional capacity of an entity described in sub-
clause (I) or (II) of clause (i) to increase the 
effectiveness of entities that carry out such ac-
tivities. 
‘‘(D) OFFSHORE
RENEWABLE
ENERGY
COM-
PENSATION 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 sub-
section into the Offshore Renewable Energy Com-
pensation Fund established under section 34.’’; 
(2) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) LEASING.— 
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‘‘(A) COMPETITIVE
OR
NONCOMPETITIVE 
BASIS.—The Secretary shall issue a lease, ease-
ment, or right-of-way under paragraph (1) on a 
competitive basis unless the Secretary deter-
mines after public notice of a proposed lease, 
easement, or right-of-way that there is no com-
petitive interest. 
‘‘(B) SCHEDULE
OF
OFFSHORE
RENEW-
ABLE
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 avail-
able for leasing in the future for offshore re-
newable energy projects, indicating, to the ex-
tent 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 para-
graph (1), which may include commitments 
made by the bidder to— 
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‘‘(I) support educational, train-
ing, and skills development, including 
supporting or increasing access to reg-
istered apprenticeship programs, pre- 
apprenticeship programs, and Tribal 
apprenticeships programs that have 
an articulation agreement with a reg-
istered apprenticeship program for 
offshore renewable energy projects; 
‘‘(II) support development of do-
mestic supply chains for offshore re-
newable energy projects, including de-
velopment 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 renew-
able project, which may include cov-
ered entities; 
‘‘(IV) make investments to evalu-
ate, monitor, improve, and mitigate 
impacts to the health and biodiversity 
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of ecosystems and wildlife from the 
development and operation of an off-
shore renewable energy project; 
‘‘(V) support the development 
and use of shared transmission infra-
structure connecting to offshore re-
newable energy projects; 
‘‘(VI) make investments in the 
preservation of Tribal cultural re-
sources 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 Sec-
retary. 
‘‘(ii) CONTRACTUAL COMMITMENTS.— 
When considering non-monetary factors 
under this subparagraph, the Secretary 
may— 
‘‘(I) evaluate the quality of com-
mitments made by the bidder; and 
‘‘(II) reward finalized binding 
agreements above assurances for fu-
ture commitments. 
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‘‘(iii) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) 
COVERED
ENTITY.—The 
term ‘covered entity’ has the meaning 
given such term in section 34(k). 
‘‘(II) REGISTERED APPRENTICE-
SHIP PROGRAM.—The term ‘registered 
apprenticeship program’ means an ap-
prenticeship program registered under 
the Act of August 16, 1937 (com-
monly known as the National Appren-
ticeship Act; 50 Stat. 664, chapter 
663; 29 U.S.C. 50 et seq.).’’; 
(3) by amending paragraph (4) to read as fol-
lows: 
‘‘(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 genera-
tion, transmission, and storage of zero- 
emission electricity; 
‘‘(iii) prevention of waste; 
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‘‘(iv) conservation of the natural re-
sources of the outer Continental Shelf; 
‘‘(v) conservation of Tribal cultural 
resources of the outer Continental Shelf; 
‘‘(vi) coordination with relevant Fed-
eral 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, ease-
ment, 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 
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sealane, a potential site of a deep-
water 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 satisfac-
tion of any applicable State and Federal 
renewable and clean energy mandates, tar-
gets, 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 en-
ergy project, that the holder of the lease, 
right-of-way, or easement, (and any suc-
cessor or assignee) and its agents, contrac-
tors, and subcontractors engaged in the 
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construction of any facilities for such off-
shore 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 organi-
zations. A project labor agreement shall 
bind all contractors and subcontractors on 
the project through the inclusion of appro-
priate specifications in all relevant solicita-
tion provisions and contract documents. 
The Secretary shall not approve a con-
struction 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 subpara-
graph: 
‘‘(I) CONSTRUCTION.—The term 
‘construction’ includes reconstruction, 
rehabilitation, modernization, alter-
ation, conversion, extension, repair, or 
improvement of any facility, structure, 
or other real property (including any 
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onshore facilities) for an offshore re-
newable energy project. 
‘‘(II) LABOR
ORGANIZATION.— 
The term ‘labor organization’ means a 
labor organization as defined in sec-
tion 2(5) of the National Labor Rela-
tions Act (29 U.S.C. 152(5))— 
‘‘(aa) of which building and 
construction employees are mem-
bers; and 
‘‘(bb) 
that 
directly, 
or 
through its affiliates, sponsors a 
registered 
apprenticeship 
pro-
gram. 
‘‘(III) PROJECT
LABOR
AGREE-
MENT.—The 
term 
‘project 
labor 
agreement’ means a pre-hire collective 
bargaining agreement with one or 
more labor organizations that estab-
lishes the terms and conditions of em-
ployment 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)). 
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‘‘(IV) REGISTERED APPRENTICE-
SHIP PROGRAM.—The term ‘registered 
apprenticeship program’ means an ap-
prenticeship program registered under 
the Act of August 16, 1937 (com-
monly known as the National Appren-
ticeship Act; 50 Stat. 664, chapter 
663; 29 U.S.C. 50 et seq.). 
‘‘(C) DOMESTIC CONTENT.— 
‘‘(i) IN
GENERAL.—With respect to 
the construction of facilities for an offshore 
renewable energy project that begins after 
January 1, 2033, the Secretary shall re-
quire that— 
‘‘(I) all structural iron and steel 
products that are (upon completion of 
construction) components of such fa-
cilities 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 fa-
cilities shall be attributable to manu-
factured products which are mined, 
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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 Sec-
retary finds that— 
‘‘(I) applying clause (i) would be 
inconsistent with the public interest; 
‘‘(II) such products are not pro-
duced in the United States in suffi-
cient and reasonably available quan-
tities 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 re-
quest and information available to the Sec-
retary concerning the request, and shall 
allow for informal public input on the re-
quest for at least 15 business days prior to 
making a finding based on the request. 
The Secretary shall make the request and 
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