Offshore Energy Modernization Act of 2022
Bill: H.R.9641 | Sponsor: Rep. Tonko, Paul (D-NY)
Policy area: Energy

Summary:
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.

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).
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