H.R. 3742

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3742 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 3742

To amend the Outer Continental Shelf Lands Act to support the 
responsible development of offshore renewable energy projects, 
establish the Offshore Power Administration, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 4, 2025

Mr. Tonko introduced the following bill; which was referred to the 
Committee on Natural Resources, and in addition to the Committees on 
Energy and Commerce, and Science, Space, and Technology, for a period 
to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
committee concerned

_______________________________________________________________________

A BILL

To amend the Outer Continental Shelf Lands Act to support the 
responsible development of offshore renewable energy projects, 
establish the Offshore Power Administration, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Offshore Energy 
Modernization Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. National offshore wind permitting goals.
Sec. 3. Responsible development of offshore renewable energy projects.
Sec. 4. Offshore renewable energy compensation fund.
Sec. 5. Improving environmental and cultural reviews to ensure timely 
permitting decisions.
Sec. 6. Report on decommissioning of offshore renewable energy 
projects.
Sec. 7. Offshore Power Administration.
Sec. 8. Offshore transmission infrastructure studies and 
recommendations.
Sec. 9. Interoperability of offshore electric transmission 
infrastructure.
Sec. 10. Offshore wind shipbuilding.
Sec. 11. Access to offshore renewable energy areas.
Sec. 12. Definitions.

SEC. 2. NATIONAL OFFSHORE WIND PERMITTING GOALS.

(a) In General.--The Secretary of the Interior shall, in 
consultation with the Secretary of Energy and other relevant Federal 
agencies and State governments, establish and periodically update 
national goals for offshore wind energy production on the outer 
Continental Shelf.
(b) Minimum Production Requirements for 2030 and 2035.--Through 
management of the outer Continental Shelf and administration of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), the 
Secretary of the Interior shall seek to issue permits that, in total, 
authorize production of electricity from offshore wind energy projects 
of not less than--
(1) 30 gigawatts of electricity by not later than 2030; and
(2) 50 gigawatts of electricity by not later than 2035.

SEC. 3. RESPONSIBLE DEVELOPMENT OF OFFSHORE RENEWABLE ENERGY PROJECTS.

(a) Definitions.--Section 2 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331) is amended--
(1) in the definition for the term ``State'', as added by 
section 50251(b)(1)(A)(iv) of Public Law 117-169--
(A) by redesignating such definition as subsection 
(t); and
(B) by inserting after the enumerator ``State.--''; 
and
(2) by adding at the end the following:
``(u) Offshore Renewable Energy Project.--The term `offshore 
renewable energy project' means a project to carry out an activity 
described in section 8(p)(1)(C) related to wind, solar, wave, or tidal 
energy.''.
(b) National Policy for the Outer Continental Shelf.--Section 3 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1332) is amended--
(1) by amending paragraph (3) to read as follows:
``(3) the outer Continental Shelf is a vital national 
resource reserve held by the Federal Government for the public, 
which should be made available for expeditious and orderly 
development, subject to environmental safeguards and 
coexistence with other ocean users, in a manner which 
includes--
``(A) supporting the generation, transmission, and 
storage of zero-emission electricity; and
``(B) the maintenance of competition and other 
national needs, including the need to achieve State, 
Tribal, and Federal zero-emission electricity or 
renewable energy mandates, targets, and goals;'';
(2) by redesignating paragraphs (5) and (6) as paragraphs 
(6) and (7), respectively; and
(3) by inserting after paragraph (4) the following:
``(5) the identification, development, and production of 
lease areas for offshore renewable energy projects should be 
determined by a robust and transparent stakeholder process that 
incorporates engagement and input from a diverse group of ocean 
users and other impacted stakeholders, as well as Federal, 
State, Tribal, and local governments;''.
(c) Leases, Easements, and Rights-of-Way on the Outer Continental 
Shelf.--Section 8(p) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(p)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (B)--
(i) by striking ``27'' and inserting 
``17'';
(ii) by striking ``three'' and inserting 
``100''; and
(iii) by striking ``15'' and inserting 
``100''; and
(B) by adding at the end the following:
``(C) Payments for conservation and mitigation 
activities.--
``(i) In general.--Notwithstanding section 9, the 
Secretary shall, without appropriation or fiscal year 
limitation, use 10 percent of the revenue received by 
the Federal Government from royalties, fees, rents, 
bonuses, and other payments from any lease, easement, 
or right-of-way granted under this subsection to 
provide grants to--
``(I) State, local, and Tribal governments, 
and regional partnerships thereof, including 
regional ocean partnerships, regional wildlife 
science collaboratives, and similar 
organizations; and
``(II) nonprofit organizations.
``(ii) Use of grants.--Grants provided under clause 
(i) shall be used for carrying out activities related 
to marine and coastal habitat protection and 
restoration, mitigation of damage to natural and 
cultural resources and marine life resulting from 
activities authorized by this subsection, relevant 
research and data sharing initiatives, or increasing 
the organizational capacity of an entity described in 
subclause (I) or (II) of clause (i) to increase the 
effectiveness of entities that carry out such 
activities.
``(D) Offshore renewable energy compensation fund.--
Notwithstanding section 9, the Secretary shall, without 
appropriation or fiscal year limitation, deposit 10 percent of 
the revenue received by the Federal Government from royalties, 
fees, rents, bonuses, and other payments from any lease, 
easement, or right-of-way granted under this subsection into 
the Offshore Renewable Energy Compensation Fund established 
under section 34.'';
(2) by amending paragraph (3) to read as follows:
``(3) Leasing.--
``(A) Competitive or noncompetitive basis.--The 
Secretary shall issue a lease, easement, or right-of-
way under paragraph (1) on a competitive basis unless 
the Secretary determines after public notice of a 
proposed lease, easement, or right-of-way that there is 
no competitive interest.
``(B) Schedule of offshore renewable energy lease 
sales.--The Secretary shall, after providing an 
opportunity for public notice and comment, publish and 
periodically update a schedule of areas that may be 
available for leasing in the future for offshore 
renewable energy projects, indicating, to the extent 
possible, the timing of site identification activities, 
the timing of designation of any area to be leased, the 
anticipated size of such areas, the timing of lease 
sales, and the location of leasing activities.
``(C) Multi-factor bidding.--
``(i) In general.--The Secretary may 
consider non-monetary factors when 
competitively awarding leases under paragraph 
(1), which may include commitments made by the 
bidder to--
``(I) support educational, 
training, and skills development, 
including supporting or increasing 
access to registered apprenticeship 
programs, pre-apprenticeship programs, 
and Tribal apprenticeships programs 
that have an articulation agreement 
with a registered apprenticeship 
program for offshore renewable energy 
projects;
``(II) support development of 
domestic supply chains for offshore 
renewable energy projects, including 
development of ports and other energy 
infrastructure necessary to facilitate 
offshore renewable energy projects;
``(III) establish a community 
benefit agreement with one or more 
community or stakeholder groups that 
may be impacted by the development and 
operation of an offshore renewable 
project, which may include covered 
entities;
``(IV) make investments to 
evaluate, monitor, improve, and 
mitigate impacts to the health and 
biodiversity of ecosystems and wildlife 
from the development and operation of 
an offshore renewable energy project;
``(V) support the development and 
use of shared transmission 
infrastructure connecting to offshore 
renewable energy projects;
``(VI) make investments in the 
preservation of Tribal cultural 
resources and mitigate any impacts from 
the development and operation of an 
offshore renewable energy project on 
such resources; and
``(VII) make other investments 
determined appropriate by the 
Secretary.
``(ii) Contractual commitments.--When 
considering non-monetary factors under this 
subparagraph, the Secretary may--
``(I) evaluate the quality of 
commitments made by the bidder; and
``(II) reward finalized binding 
agreements above assurances for future 
commitments.
``(iii) Definitions.--In this subparagraph:
``(I) Covered entity.--The term 
`covered entity' has the meaning given 
such term in section 34(k).
``(II) Registered apprenticeship 
program.--The term `registered 
apprenticeship program' means an 
apprenticeship program registered under 
the Act of August 16, 1937 (commonly 
known as the National Apprenticeship 
Act; 50 Stat. 664, chapter 663; 29 
U.S.C. 50 et seq.).'';
(3) by amending paragraph (4) to read as follows:
``(4) Requirements.--
``(A) In general.--The Secretary shall ensure that 
any activity under this subsection is carried out in a 
manner that provides for--
``(i) safety;
``(ii) protection of the environment, which 
includes facilitation of the generation, 
transmission, and storage of zero-emission 
electricity;
``(iii) prevention of waste;
``(iv) conservation of the natural 
resources of the outer Continental Shelf;
``(v) conservation of Tribal cultural 
resources of the outer Continental Shelf;
``(vi) coordination with relevant Federal 
agencies and State, Tribal, and local 
governments;
``(vii) protection of national security 
interests of the United States;
``(viii) protection of correlative rights 
in the outer Continental Shelf;
``(ix) a fair return to the United States 
for any lease, easement, or right-of-way under 
this subsection;
``(x) accommodation of reasonable uses (as 
determined by the Secretary) of the exclusive 
economic zone, the high seas, and the 
territorial seas;
``(xi) consideration of--
``(I) the location of, and any 
schedule relating to, a lease, 
easement, or right-of-way for an area 
of the outer Continental Shelf; and
``(II) any other use of the sea or 
seabed, including use for a fishery, a 
sealane, a potential site of a 
deepwater port, or navigation;
``(xii) public notice and comment, and 
Tribal consultation in accordance with 
paragraph (7), on any proposal submitted for a 
lease, easement, or right-of-way under this 
subsection;
``(xiii) oversight, inspection, research, 
monitoring, and enforcement relating to a 
lease, easement, or right-of-way under this 
subsection; and
``(xiv) satisfaction or partial 
satisfaction of any applicable State and 
Federal renewable and clean energy mandates, 
targets, and goals.
``(B) Project labor agreements.--
``(i) In general.--Beginning not later than 
January 1, 2027, the Secretary shall require, 
as a term or condition of each lease, right-of-
way, and easement, as applicable, for an 
offshore renewable energy project, that the 
holder of the lease, right-of-way, or easement, 
(and any successor or assignee) and its agents, 
contractors, and subcontractors engaged in the 
construction of any facilities for such 
offshore renewable energy project agree, for 
purposes of such construction, to negotiate and 
become a party to a project labor agreement 
with one or more labor organizations. A project 
labor agreement shall bind all contractors and 
subcontractors on the project through the 
inclusion of appropriate specifications in all 
relevant solicitation provisions and contract 
documents. The Secretary shall not approve a 
construction and operations plan with respect 
to any offshore renewable energy project until 
being assured by the lessee that such project 
labor agreement will be maintained for the 
duration of the project.
``(ii) Definitions.--In this subparagraph:
``(I) Construction.--The term 
`construction' includes reconstruction, 
rehabilitation, modernization, 
alteration, conversion, extension, 
repair, or improvement of any facility, 
structure, or other real property 
(including any onshore facilities) for 
an offshore renewable energy project.
``(II) Labor organization.--The 
term `labor organization' means a labor 
organization as defined in section 2(5) 
of the National Labor Relations Act (29 
U.S.C. 152(5))--
``(aa) of which building 
and construction employees are 
members; and
``(bb) that directly, or 
through its affiliates, 
sponsors a registered 
apprenticeship program.
``(III) Project labor agreement.--
The term `project labor agreement' 
means a pre-hire collective bargaining 
agreement with one or more labor 
organizations that establishes the 
terms and conditions of employment for 
a specific construction project and is 
an agreement described in section 8(e) 
and (f) of the National Labor Relations 
Act (29 U.S.C. 158(f)).
``(IV) Registered apprenticeship 
program.--The term `registered 
apprenticeship program' means an 
apprenticeship program registered under 
the Act of August 16, 1937 (commonly 
known as the National Apprenticeship 
Act; 50 Stat. 664, chapter 663; 29 
U.S.C. 50 et seq.).
``(C) Domestic content.--
``(i) In general.--With respect to the 
construction of facilities for an offshore 
renewable energy project that begins after 
January 1, 2033, the Secretary shall require 
that--
``(I) all structural iron and steel 
products that are (upon completion of 
construction) components of such 
facilities shall be produced in the 
United States; and
``(II) not less than 65 percent of 
the total costs of all manufactured 
products that are (upon completion of 
construction) components of such 
facilities shall be attributable to 
manufactured products which are mined, 
produced, or manufactured in the United 
States.
``(ii) Waiver.--The Secretary may waive the 
requirements of clause (i) in any case or 
category of cases in which the Secretary finds 
that--
``(I) applying clause (i) would be 
inconsistent with the public interest;
``(II) such products are not 
produced in the United States in 
sufficient and reasonably available 
quantities and of a satisfactory 
quality; or
``(III) the use of such products 
will increase the cost of the overall 
project by more than 25 percent.
``(iii) Public notification.--If the 
Secretary receives a request for a waiver under 
clause (ii), the Secretary shall make available 
to the public a copy of the request and 
information available to the Secretary 
concerning the request, and shall allow for 
informal public input on the request for at 
least 15 business days prior to making a 
finding based on the request. The Secretary 
shall make the request and accompanying 
information available to the public by 
electronic means, including on the official 
public internet site of the Department of the 
Interior.
``(iv) International agreements.--This 
subparagraph shall be applied in a manner 
consistent with United States obligations under 
international agreements.
``(v) Definition of produced in the united 
states.--In this subparagraph, the term 
`produced in the United States' means, in the 
case of iron or steel products, that all 
manufacturing processes, from the initial 
melting stage through the application of 
coatings, occurred in the United States.'';
(4) by amending paragraph (7) to read as follows:
``(7) Coordination and consultation.--
``(A) State and local governments.--The Secretary 
shall provide for coordination and consultation with 
the Governor of any State or the executive of any local 
government that may be affected by a lease, easement, 
or right-of-way under this subsection.
``(B) Tribal consultation.--
``(i) Requirement.--The Secretary shall 
conduct meaningful and timely consultation with 
Indian Tribes (following the procedures of 
Executive Order 13175 (25 U.S.C. 5301 note), 
the President's Memorandum of Uniform Standards 
for Tribal Consultation, issued on November 30, 
2022, or any subsequent order) before 
undertaking any activities under this 
subsection, including holding a lease sale, 
that may have a direct, indirect, or cumulative 
impact on--
``(I) the land, including allotted, 
ceded, or traditional land, or 
interests in such land of an Indian 
Tribe or member of an Indian Tribe;
``(II) Tribal land, cultural 
practices, resources, or access to 
traditional areas of cultural or 
religious importance;
``(III) any part of any Federal 
land that shares a border with Indian 
country, as such term is defined in 
section 1151 of title 18, United States 
Code;
``(IV) the protected rights of an 
Indian Tribe, whether or not such 
rights are enumerated in a treaty, 
including water, hunting, gathering, 
and fishing rights;
``(V) the ability of an Indian 
Tribe to govern or provide services to 
members of the Indian Tribe;
``(VI) the relationship between the 
Federal Government and an Indian Tribe; 
or
``(VII) the trust responsibility of 
the Federal Government to an Indian 
Tribe.
``(ii) Confidential and sensitive 
information.--
``(I) Closed meeting.--
Notwithstanding any other provision of 
law, at the request of the applicable 
Indian Tribe or Tribal government, any 
Tribal consultation process conducted 
for the purpose of carrying out this 
subparagraph shall be closed to the 
public.
``(II) Treatment of designated 
information.--Notwithstanding any other 
provision of law, during a Tribal 
consultation process conducted for the 
purpose of carrying out this 
subparagraph, if the applicable Indian 
Tribe or Tribal government designates 
any information, such as the location 
of a sacred site or other detail of a 
cultural or religious practice, as 
sensitive, that information shall be 
protected by law as confidential and 
withheld from any public disclosure or 
publication made as part of such Tribal 
consultation process or in any other 
process of carrying out this Act.
``(III) Access to designated 
information.--If information has been 
designated as sensitive under subclause 
(II), the Secretary shall determine, in 
consultation with the applicable Indian 
Tribe or Tribal government, who may 
have access to the information for the 
purposes of carrying out this Act.'';
(5) by amending paragraph (10) to read as follows:
``(10) Applicability.--
``(A) In general.--This subsection does not apply 
to any area on the outer Continental Shelf within the 
exterior boundaries of any unit of the National Park 
System, National Wildlife Refuge System, or National 
Marine Sanctuary System, or any National Monument.
``(B) Certain transmission infrastructure.--
``(i) In general.--Notwithstanding 
subparagraph (A), if otherwise authorized 
pursuant to the National Marine Sanctuaries Act 
(16 U.S.C. 1431 et seq.), the Secretary may 
issue a lease, easement, or right-of-way to 
enable the transmission of electricity 
generated by an offshore renewable energy 
project.
``(ii) Terms and conditions.--In issuing a 
lease, easement, or right-of-way under clause 
(i), the Secretary may approve and regulate, as 
necessary, the construction and operation of 
transmission facilities and related 
infrastructure for the transmission of 
electricity generated by an offshore renewable 
energy project in a manner that minimizes 
environmental impacts and harm to Tribal 
cultural resources.
``(iii) Coordination.--In approving and 
regulating the construction and operation of 
facilities under clause (ii), the Secretary 
shall coordinate with the Secretary of Commerce 
to ensure the duration of any necessary 
authorizations of such facilities under the 
National Marine Sanctuaries Act aligns with the 
duration of the relevant leases, easements, or 
rights-of-way issued under clause (i).''; and
(6) by adding at the end the following:
``(11) Planning area impact studies.--
``(A) In general.--Beginning three years after the 
date of enactment of this paragraph, before holding any 
lease sale pursuant to paragraph (1) for an area, the 
Secretary shall conduct a study of such area, or the 
wider planning area that includes such area, in order 
to establish information needed for assessment and 
management of the environmental impacts on the human, 
marine, and coastal environments, and the Tribal 
cultural resources, of the outer Continental Shelf and 
the coastal areas which may be affected by offshore 
renewable energy projects in such area or planning 
area.
``(B) Inclusions.--A study conducted under 
subparagraph (A) shall--
``(i) incorporate the best available 
existing science and data, including Tribal 
Traditional Ecological Knowledge;
``(ii) identify areas for which there is 
insufficient science and data; and
``(iii) include consideration of the 
cumulative impacts (including potential 
navigational impacts) of offshore renewable 
energy projects on human, marine, and coastal 
environments.
``(C) Use of data and assessments.--The Secretary 
shall use the data and assessments from studies 
conducted under this paragraph, as appropriate, when 
deciding--
``(i) which portions of an area or region 
are most appropriate to make available for 
leasing; and
``(ii) whether to issue any permit or other 
authorization that is necessary to carry out an 
offshore renewable energy project.
``(D) NEPA applicability.--The Secretary shall not 
consider a study conducted under subparagraph (A) to be 
a major Federal action under section 102(2)(C) of the 
National Environmental Policy Act of 1969.
``(12) Capacity building and community engagement.--
``(A) In general.--The Secretary, in consultation 
with the Secretary of Commerce, may award grants to 
entities to build organizational capacity and enhance 
engagement opportunities related to offshore renewable 
energy project development, including environmental and 
cultural reviews and permitting activities of such 
projects.
``(B) Purposes.--Grants awarded under subparagraph 
(A) shall be for--
``(i) enabling States, Indian Tribes, 
affected ocean users, and nonprofit 
associations that represent affected ocean 
users to compile data, conduct analyses, 
educate stakeholders, and complete other 
activities relating to offshore renewable 
energy project development;
``(ii) engaging in planning activities 
related to the development of offshore 
renewable energy projects to--
``(I) determine potential economic, 
social, public health, environmental, 
and cultural benefits and impacts 
resulting from offshore renewable 
energy projects; and
``(II) identify opportunities to 
mitigate such impacts;
``(iii) facilitating siting of offshore 
renewable energy projects and associated 
electric transmission infrastructure; and
``(iv) hiring and training of personnel, 
and other activities designed to increase the 
capacity of States, Indian Tribes, and 
nonprofit associations, as applicable, to carry 
out activities described in clauses (i) through 
(iii).
``(C) Prioritization.--When awarding grants under 
subparagraph (A), the Secretary shall prioritize 
awarding grants that will be used to build 
organizational capacity and enhance community 
engagement opportunities of Indian Tribes.
``(D) Authorization of appropriations.--There are 
authorized to be appropriated to the Secretary to carry 
out this paragraph $25,000,000 for each of fiscal years 
2026 through 2030.''.
(d) Reservations.--Section 12(a) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1341(a)) is amended to read as follows:
``(a) Withdrawal of Unleased Lands by the President.--
``(1) In general.--The President of the United States may, 
from time to time, withdraw from disposition any of the 
unleased lands of the outer Continental Shelf.
``(2) Modification for certain offshore renewable energy 
projects.--With respect to a withdrawal under paragraph (1) of 
unleased lands from disposition, the President may modify such 
a withdrawal only to allow for leasing under section 8(p)(1)(C) 
and only if the President determines that environmental, 
Tribal, national security, or national or regional energy 
conditions or demands have changed such that a modification 
would be in the public interest.''.
(e) Citizen Suits, Court Jurisdiction, and Judicial Review.--
Section 23(c)(2) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1349(c)(2)) is amended to read as follows:
``(2) Any action of the Secretary to approve, require modification 
of, or disapprove any exploration plan or development and production 
plan under this Act, or any plan, final lease, easement, or right-of-
way granted pursuant to section (8)(p)(1) (and any related final 
Federal agency actions), shall be subject to judicial review only in a 
United States court of appeals for a circuit in which an affected State 
or Indian Tribe is located.''.

SEC. 4. OFFSHORE RENEWABLE ENERGY COMPENSATION FUND.

The Outer Continental Shelf Lands Act (43 U.S.C. 1331) is amended 
by adding at the end the following:

``SEC. 34. OFFSHORE RENEWABLE ENERGY COMPENSATION FUND.

``(a) Establishment.--There is established in the Treasury of the 
United States the Offshore Renewable Energy Compensation Fund, which 
shall be used by the Secretary, or a third party the Secretary enters 
into a contract with, to provide to covered entities--
``(1) payments for claims--
``(A) described under subsection (f)(1); and
``(B) verified pursuant to subsection (d)(1); and
``(2) grants to carry out mitigation activities described 
in subsection (f)(2).
``(b) Availability of Fund.--The Fund shall be available to the 
Secretary without fiscal year limitations for the purpose of providing 
payments and grants under subsection (a).
``(c) Accounts.--The Fund shall--
``(1) consist of the royalties, fees, rents, bonuses, and 
other payments deposited under section 8(p)(2)(D); and
``(2) be divided into separate area accounts from which 
payments and grants shall be provided based on the area in 
which damages occur.
``(d) Regulations.--The Secretary shall establish, by regulation, a 
process to--
``(1) file, process, and verify claims for purposes of 
providing payments under subsection (a)(1); and
``(2) apply for a grant provided under subsection (a)(2).
``(e) Payment Amount.--Payments provided under subsection (a)(1) 
shall--
``(1) be based on the scope of the verified claim;
``(2) be fair and provided efficiently and in a transparent 
manner; and
``(3) if the covered entity receiving the payment has or 
will receive direct compensation for the verified claim 
pursuant to a community benefit agreement or other agreement 
between such covered entity and a holder of a lease, easement, 
or right-of-way, be reduced by an amount that is equal to the 
amount of such direct compensation.
``(f) Claims; Mitigation Grants.--
``(1) Claims.--A payment may be provided under subsection 
(a)(1) for a verified claim to--
``(A) replace or repair gear that was lost or 
damaged by the development, construction, operation, or 
decommissioning of an offshore renewable energy 
project; or
``(B) replace income that was lost from the 
development, construction, operation, or 
decommissioning of an offshore renewable energy 
project.
``(2) Mitigation grants.--If the Secretary determines that 
there are sufficient amounts in an area account of the Fund to 
provide payments for all verified claims at any given time, the 
Secretary may use amounts in the Fund to provide grants to 
covered entities, and other entities determined appropriate by 
the Secretary, to mitigate the potential effects of 
development, construction, operation, and decommissioning of an 
offshore renewable energy project, including by paying for gear 
changes, navigation technology improvements, and other measures 
to enhance the safety and resiliency of the covered entities 
and such other entities.
``(g) Advisory Group.--
``(1) In general.--The Secretary shall establish and 
regularly convene an advisory group that shall provide 
recommendations on the development and administration of this 
section.
``(2) Membership.--The advisory group shall--
``(A) be comprised of individuals--
``(i) appointed by the Secretary; and
``(ii) representing the geographic 
diversity of areas impacted by the development, 
construction, operation, or decommissioning of 
offshore renewable energy projects; and
``(B) include representatives from--
``(i) recreational fishing interests;
``(ii) commercial fishing interests;
``(iii) Tribal interest;
``(iv) the National Marine Fisheries 
Service;
``(v) the fisheries science community; and
``(vi) other fields of expertise necessary 
to effectively develop and administer this 
section, as determined by the Secretary.
``(3) Travel expenses.--The Secretary may provide amounts 
to any member of the advisory group to pay for travel expenses, 
including per diem in lieu of subsistence, at rates authorized 
for an employee of an agency under section 5703 of title 5, 
United States Code, while away from the home or regular place 
of business of the member in the performance of the duties of 
the advisory group.
``(h) Insufficient Funds.--
``(1) In general.--If the Secretary determines that an area 
account does not contain a sufficient amount to provide 
payments under subsection (a)(1), the Secretary may, not more 
than once each calendar year, require any holder of an offshore 
renewable energy lease located within the area covered by the 
area account to pay an amount specified by the Secretary, which 
shall be deposited into such area account.
``(2) Amount.--No holder of an offshore renewable energy 
lease shall be required to pay an amount under paragraph (1) in 
excess of $3 per acre of the leased land described in paragraph 
(1).
``(j) Administrative Expenses.--The Secretary may use up to 15 
percent of the amount deposited into the Fund under section 8(p)(2)(D) 
during a fiscal year for administrative expenses to carry out this 
section.
``(j) Annual Report.--The Secretary shall submit to Congress, and 
make publicly available, an annual report on activities carried out 
under this section, including a description of claims filed and the 
amount of payments and grants provided.
``(k) Definitions.--In this section:
``(1) Covered entity.--The term `covered entity' means--
``(A) a community, stakeholder, or Tribal 
interest--
``(i) that uses a geographic space of a 
lease area, including for Tribal cultural and 
religious uses, or uses resources harvested 
from a geographic space of a lease area; and
``(ii) for which such use is directly and 
adversely impacted by the development, 
construction, operation, or decommissioning of 
an offshore renewable energy project located in 
such leased area; or
``(B) a regional association, cooperative, non-
profit organization, commission, or corporation that--
``(i) serves a community, stakeholder, or 
Tribal interest described in subparagraph (A); 
and
``(ii) acts on behalf of such a community, 
stakeholder, or Tribal interest for purposes of 
this section, including by submitting a claim 
for a covered entity under this section.
``(2) Fund.--The term `Fund' means the Offshore Renewable 
Energy Compensation Fund established under subsection (a).
``(3) Lease area.--The term `lease area' means an area 
covered by an offshore renewable energy lease.
``(4) Offshore renewable energy lease.--The term `offshore 
renewable energy lease' means a lease, easement, or right-of-
way granted under section 8(p)(1)(C).''.

SEC. 5. IMPROVING ENVIRONMENTAL AND CULTURAL REVIEWS TO ENSURE TIMELY 
PERMITTING DECISIONS.

(a) Bureau of Ocean Energy Management.--In addition to amounts 
otherwise available, there is appropriated to the Secretary of the 
Interior for fiscal year 2026, out of any money in the Treasury not 
otherwise appropriated, $50,000,000 to remain available until expended, 
to provide for the hiring and training of personnel, the development of 
programmatic environmental documents, the procurement of technical or 
scientific services for environmental and cultural reviews, the 
development of cultural competency for Tribal consultations, support of 
regional ocean data portals, the development of environmental data or 
information systems (including efforts to standardize, establish a 
baseline for, publish, or otherwise improve the consistency of 
environmental data), the development of pre-application components, 
stakeholder and community engagement, updates to the Marine Cadastre 
for advancements in spatial data analysis and deconfliction, the 
purchase of new equipment for environmental analysis, and coordination 
(including through the public tracking of Federal authorizations and 
reviews) to facilitate timely, efficient, and responsible permitting 
and review of offshore renewable energy projects.
(b) National Oceanic and Atmospheric Administration.--In addition 
to amounts otherwise available, there is appropriated to the Secretary 
of Commerce for fiscal year 2026, out of any money in the Treasury not 
otherwise appropriated, $45,000,000 to remain available until expended, 
to provide for the hiring and training of personnel, the development of 
programmatic environmental documents, the procurement of technical or 
scientific services for environmental and cultural reviews, the 
development of cultural competency for Tribal consultations, support of 
regional ocean data portals, the development of environmental data or 
information systems (including efforts to standardize, baseline, 
publish, or otherwise improve the consistency of environmental data), 
stakeholder and community engagement, updates to the Marine Cadastre 
for advancements in spatial data analysis and deconfliction, adaptation 
of scientific and fisheries surveys, and the purchase of new equipment 
for environmental analysis to facilitate timely, efficient, and 
responsible environmental reviews for the permitting of offshore 
renewable energy projects.

SEC. 6. REPORT ON DECOMMISSIONING OF OFFSHORE RENEWABLE ENERGY 
PROJECTS.

Not later than 10 years after the date of enactment of this Act, 
the Secretary of the Interior shall submit to Congress, and make 
publicly available, a report evaluating decommissioning options for 
offshore renewable energy projects (and associated electric 
transmission infrastructure), including an assessment of the potential 
for the holder of a lease, easement, or right-of-way to keep facilities 
in place or otherwise convert such facilities to artificial reefs to 
support marine habitats, provided that such facilities will not 
adversely impact navigation, national security, the marine environment, 
Tribal uses, or other competing uses of the outer Continental Shelf.

SEC. 7. OFFSHORE POWER ADMINISTRATION.

(a) Establishment.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of Energy shall establish the 
Offshore Power Administration.
(b) Authorities.--
(1) In general.--The Offshore Power Administration may, 
subject to paragraphs (2) and (3)--
(A) construct, finance, facilitate, plan, operate, 
maintain, acquire, and study covered transmission 
infrastructure; and
(B) support construction, financing, facilitation, 
planning, operation, maintenance, acquisition, and 
study of covered transmission infrastructure.
(2) Limitation on construction.--
(A) In general.--The Offshore Power Administration 
may not construct covered transmission infrastructure 
in any region until the Secretary of Energy has made a 
determination (in consultation with the Secretary of 
the Interior) that the relevant State governments, 
regional transmission organizations, offshore renewable 
energy project developers, and other stakeholders in 
such region have failed to adequately coordinate and 
cooperate on the development and use of shared covered 
transmission infrastructure.
(B) Initial delay.--The Secretary of Energy may not 
make a determination under this paragraph sooner than 3 
years after the date of enactment of this Act.
(3) Leases, easements, and rights-of way.--In carrying out 
any activity under paragraph (1), the Offshore Power 
Administration shall be subject to the requirements to obtain a 
lease, easement, or right-of-way under section 8(p) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337).
(c) Governance.--
(1) Organization.--The Offshore Power Administration shall 
be preserved as a separate and distinct organizational entity 
within the Department of Energy and shall be headed by an 
Administrator appointed by the Secretary of Energy.
(2) Regional offices.--The Administrator shall establish 
and maintain such regional offices as necessary to facilitate 
the performance of the Offshore Power Administration.
(d) Loans.--
(1) In general.--Notwithstanding any other provision of 
law, the Secretary of the Treasury shall, without appropriation 
and without fiscal year limitation, make loans to the Offshore 
Power Administration that, in the judgment of the 
Administrator, are required to carry out the activities listed 
in subsection (b)(1).
(2) Terms and conditions.--
(A) In general.--Subject to subparagraphs (B) and 
(C), loans made by the Secretary of the Treasury under 
paragraph (1) shall include such terms and conditions 
that the Administrator and Secretary of the Treasury 
may agree to.
(B) Interest.--The rate of interest to be charged 
in connection with any loan made under paragraph (1) 
shall be fixed by the Secretary of the Treasury, taking 
into consideration market yields on outstanding 
marketable obligations of the United States of 
comparable maturities as of the date on which the loan 
is made.
(C) Limitation.--Loans made by the Secretary of the 
Treasury under paragraph (1) may not result in, in the 
aggregate (including deferred interest), 
$10,000,000,000 in outstanding repayable balances at 
any one time.
(3) Refinancing.--The Administrator may refinance loans 
made pursuant to this section with the Secretary of the 
Treasury in accordance with paragraph (2).
(e) Agreements and Partnerships.--The Administrator may enter into 
agreements and partnerships with other entities to carry out any of the 
activities listed in subsection (b)(1).
(f) Disposition of Revenue.--
(1) In general.--With respect to covered transmission 
infrastructure owned and operated by the Offshore Power 
Administration pursuant to this section, the Administrator 
shall use qualified revenue to pay the principal and interest 
of the loan made by Secretary of the Treasury with respect to 
such covered transmission infrastructure.
(2) Qualified revenue.--In this subsection, the term 
``qualified revenue'' means--
(A) all revenue received by the Offshore Power 
Administration from the operation of the covered 
transmission infrastructure; less
(B) the amount the Administrator determines 
necessary to--
(i) pay the costs of operating and 
maintaining the covered transmission 
infrastructure, including expenses described in 
subsection (g)(2); and
(ii) pay for any ancillary services that 
are used by the Offshore Power Administration.
(g) Forgiveness of Balances.--
(1) In general.--If, at the end of the useful life of any 
covered transmission infrastructure acquired, constructed, 
maintained, or operated by the Offshore Power Administration 
pursuant to this section there is a remaining balance owed to 
the Treasury for a loan made under this section for any such 
purpose, such balance shall be forgiven.
(2) Studies.--A loan made under this section for purposes 
of studying covered transmission infrastructure that is not 
constructed shall be forgiven upon notification under paragraph 
(3).
(3) Notification.--The Administrator shall notify the 
Secretary of the Treasury of such amounts as are to be forgiven 
under this subsection.
(h) Administration.--
(1) Accounts and audits.--
(A) In general.--The Administrator shall keep 
complete and accurate accounts of the operation of 
covered transmission infrastructure owned and operated 
by the Offshore Power Administration, including all 
funds expended and received in connection with 
transmission of electric energy by the Offshore Power 
Administration.
(B) Audits.--The Administrator shall, after the 
close of each fiscal year, obtain an independent 
commercial-type audit of such accounts.
(2) Expenses.--The Administrator may make such expenditures 
for offices, vehicles, furnishings, equipment, supplies, books, 
travel for attendance at meetings, and for such other 
facilities and services as the Administrator determines 
necessary to carry out this section.
(i) Prevailing Wage.--All laborers and mechanics employed by 
contractors and subcontractors in the performance of construction work 
carried out or funded by in whole or in part by the Offshore Power 
Administration shall be paid wages at rates not less than those 
prevailing on projects of a character similar in the locality as 
determined by the Secretary of Labor in accordance with subchapter IV 
of chapter 31 of title 40, United States Code. With respect to the 
labor standards in this subsection, the Secretary of Labor shall have 
the authority and functions set forth in Reorganization Plan Number 14 
of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, 
United States Code.
(j) Coordination and Consultation.--
(1) State and local governments.--The Administrator shall 
provide for coordination and consultation with the Governor of 
any State or the executive of any local government that may be 
affected by activities under this section.
(2) Tribal consultation.--
(A) In general.--The Administrator shall conduct 
meaningful and timely consultation with Indian Tribes 
(following the procedures of Executive Order 13175 (25 
U.S.C. 5301 note), the President's Memorandum of 
Uniform Standards for Tribal Consultation, issued on 
November 30, 2022, or any subsequent order) before 
undertaking any activities under this section that may 
have a direct, indirect, or cumulative impact on--
(i) the land, including allotted, ceded, or 
traditional land, or interests in such land of 
an Indian Tribe or member of an Indian Tribe;
(ii) Tribal land, cultural practices, 
resources, or access to traditional areas of 
cultural or religious importance;
(iii) any part of any Federal land that 
shares a border with Indian country, as such 
term is defined in section 1151 of title 18, 
United States Code;
(iv) the protected rights of an Indian 
Tribe, whether or not such rights are 
enumerated in a treaty, including water, 
hunting, gathering, and fishing rights;
(v) the ability of an Indian Tribe to 
govern or provide services to members of the 
Indian Tribe;
(vi) the relationship between the Federal 
Government and an Indian Tribe; or
(vii) the trust responsibility of the 
Federal Government to an Indian Tribe.
(B) Confidential and sensitive information.--
(i) Closed meeting.--Notwithstanding any 
other provision of law, at the request of the 
applicable Indian Tribe or Tribal government, 
any Tribal consultation process conducted for 
the purpose of carrying out this subsection 
shall be closed to the public.
(ii) Treatment of designated information.--
Notwithstanding any other provision of law, 
during a Tribal consultation process conducted 
for the purpose of carrying out this 
subsection, if the applicable Indian Tribe or 
Tribal government designates any information, 
such as the location of a sacred site or other 
detail of a cultural or religious practice, as 
sensitive, that information shall be protected 
by law as confidential and withheld from any 
public disclosure or publication made as part 
of such Tribal consultation process or in any 
other process of carrying out this section.
(iii) Access to designated information.--If 
information has been designated as sensitive 
under clause (ii), the Secretary shall 
determine, in consultation with the applicable 
Indian Tribe or Tribal government, who may have 
access to the information for the purposes of 
carrying out this section.
(k) Annual Report to Congress.--Beginning January 1, 2027, and each 
year thereafter, not later than 180 days after the end of each year, 
the Administrator shall submit to Congress a report for the previous 
year that includes--
(1) a description of the activities of the Offshore Power 
Administration;
(2) an accounting of the use of loans made under this 
section; and
(3) an assessment of the coordination and cooperation by 
relevant State and Tribal governments, regional transmission 
organizations, offshore renewable energy project developers, 
and other stakeholders the Secretary of Energy determines are 
relevant in each region to develop and use shared covered 
transmission infrastructure.
(l) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the 
Administrator of the Offshore Power Administration.
(2) Covered transmission infrastructure.--The term 
``covered transmission infrastructure''--
(A) means electric power transmission 
infrastructure, and any related facilities thereof, 
that serves at least one offshore renewable energy 
project; and
(B) includes onshore facilities that enable the 
interconnection of offshore renewable energy projects.

SEC. 8. OFFSHORE TRANSMISSION INFRASTRUCTURE STUDIES AND 
RECOMMENDATIONS.

(a) Studies and Recommendations.--The Secretary of Energy, in 
consultation with the Secretary of the Interior, the interagency 
comprehensive digital mapping initiative established under section 
388(b) of the Energy Policy Act of 2005, and other relevant Federal, 
State, Tribal, and local agencies, shall periodically conduct studies 
and make recommendations available to the public on the potential 
siting of offshore transmission infrastructure in a manner that--
(1) achieves sufficient transmission capacity to support 
offshore energy development to meet State, Tribal, or Federal 
renewable or clean electricity mandates, targets, or goals;
(2) promotes safety, national security, Tribal sovereignty, 
and environmental protection while minimizing impacts to 
cultural and living marine resources, including Tribal cultural 
resources; and
(3) leads to efficient development of onshore points of 
interconnection.
(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this section 
$10,000,000, to remain available until expended.

SEC. 9. INTEROPERABILITY OF OFFSHORE ELECTRIC TRANSMISSION 
INFRASTRUCTURE.

(a) Study.--Not later than 2 years after the date of enactment of 
this Act, the Secretary of Energy shall complete and publish on the 
website of the Department of Energy a study that assesses the need to, 
and challenges of, developing and standardizing interoperable electric 
grid components, systems, and technologies in support of shared 
offshore transmission networks. Such study shall include 
recommendations for Congress, State, Tribal, and local governments, 
manufacturers of electric grid components, systems, and technologies, 
regional transmission organizations, offshore electricity generation 
project developers, and appropriate standards organizations to help 
ensure interoperability of electric grid components, systems, and 
technologies across seams between offshore electricity generation 
projects and shared offshore infrastructure connecting to onshore 
transmission systems.
(b) Interoperability Standard Development Program.--
(1) In general.--The Secretary of Energy shall establish 
and implement a program to identify, develop, support, 
document, and encourage the adoption of a set of standards 
necessary to maximize the interoperability of electric grid 
components, systems, and technologies to accelerate the 
implementation and delivery of electricity generated by 
offshore electricity generation projects through shared 
transmission infrastructure.
(2) Goals.--The goals of establishing and implementing the 
program under paragraph (1) shall be--
(A) to harmonize and standardize functional 
specifications of electric grid components, systems, 
and technologies to maximize the interoperability of 
electric grid components, systems, and technologies 
across technologies and manufacturers;
(B) to hasten adoption of shared transmission 
infrastructure for offshore electricity generation by 
encouraging cooperation among manufacturers of electric 
grid components, systems, or technologies in order to--
(i) maximize interoperability of such 
manufacturers' electric grid components, 
systems, and technologies;
(ii) reduce offshore electricity generation 
project delays and cost overruns;
(iii) manage power grid complexity; and
(iv) enhance electric grid resilience, 
reliability, and cybersecurity; and
(C) to identify common technical specifications to 
effectively and securely measure, monitor, control, and 
protect offshore electricity generation and 
transmission infrastructure from the point of 
generation to load centers.
(3) Grants.--Under the program established and implemented 
under paragraph (1), the Secretary may provide grants to 
entities to--
(A) engage equipment manufacturers and industry 
stakeholders in collaborative platforms, including 
workshops and forums;
(B) identify current challenges and propose 
solutions to improve interoperability of electric grid 
components, systems, and technologies; and
(C) develop a set of voluntary industry standards 
to maximize interoperability of electric grid 
components, systems, and technologies that meet the 
goals described in paragraph (2).
(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this section 
$5,000,000, to remain available until expended.

SEC. 10. OFFSHORE WIND SHIPBUILDING.

(a) Offshore Wind Shipyard Grant Program.--
(1) In general.--The Secretary of Energy shall establish a 
program to support the refurbishment, retooling, expansion, 
modernization, and establishment of shipyards and other 
manufacturing facilities by providing grants for the 
fabrication, repair, and conversion of vessels needed for the 
pre-construction assessment, construction, operation, and 
maintenance of offshore wind energy projects.
(2) Recipients.--Under the program established under 
paragraph (1), the Secretary of Energy may provide grants to 
shipyard owners and operators, fabricators of the vessels 
described in paragraph (1), and relevant component suppliers.
(3) Prevailing wage.--The Secretary of Energy shall take 
such action as may be necessary to ensure all laborers and 
mechanics employed by contractors or subcontractors during 
construction, alteration, or repair that is supported, in whole 
or in part, by grants provided under this section shall be paid 
wages at rates not less than those prevailing on similar 
construction in the locality, as determined by the Secretary of 
Labor in accordance with subchapter IV of chapter 31 of title 
40, United States Code. With respect to the labor standards in 
this subsection, the Secretary of Labor shall have the 
authority and functions set forth in Reorganization Plan Number 
14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of 
title 40, United States Code.
(4) Cost share.--Section 988(c) of the Energy Policy Act of 
2005 (42 U.S.C. 16352(c)) shall apply to a grant provided under 
this section as if such grant were a demonstration or 
commercial application activity described in section 988(a) of 
such Act.
(5) Authorization of appropriations.--There are authorized 
to be appropriated to the Secretary of Energy to carry out this 
section $100,000,000, to remain available until expended.
(b) Loan Guarantees for Wind Turbine Installation Vessels.--Section 
1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is 
amended by adding at the end the following:
``(14) Notwithstanding subsection (a)(1), projects that 
increase the supply of domestically produced vessels needed for 
the pre-construction assessment, construction, operation, and 
maintenance of offshore wind energy projects, including wind 
turbine installation vessels.''.

SEC. 11. ACCESS TO OFFSHORE RENEWABLE ENERGY AREAS.

It is the sense of Congress that fishing and boating access, and 
Tribal cultural activities and lifeways, in and around offshore 
renewable energy projects will be maintained with narrow exceptions for 
construction and maintenance activities.

SEC. 12. DEFINITIONS.

In this Act, the terms ``offshore renewable energy project'' and 
``outer Continental Shelf'' have the meanings given such terms in 
section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331).
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