[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