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: 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)..