Responsible development of offshore renewable energy

(a) Definitions Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) is amended— (1) in the second subsection (r), as added by section 50251(b)(1)(A)(iv) of Public Law 117–169 — (A) by redesignating such subsection (r) 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 can be made available for 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 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 and development 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, and 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 other 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 resources and marine life that results 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 not less frequently than every 5 years 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 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 1 or more community or stakeholder groups that may be impacted by the development and operation of an offshore renewable energy 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; and (VI) 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) 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, 2026, 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 1 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 1 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 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 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 paragraph shall be applied in a manner consistent with United States obligations under international agreements.; (4) by amending paragraph (7) to read as follows: (7) Coordination and consultation The Secretary shall provide for coordination and consultation with— (A) 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; and (B) Indian Tribes (following the procedures of the President’s Memorandum of Uniform Standards for Tribal Consultation, issued on November 30, 2022 (87 Fed. Reg. 74479), or any subsequent order) before undertaking any activities under this subsection 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.; (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 the construction and operation of such transmission facilities (including electrical substations and other related infrastructure) for the transmission of electricity generated by such projects in a manner that minimizes environmental impacts. (iii) Coordination In regulating the construction and operation of transmission facilities and related infrastructure 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 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; (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 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 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 (42 U.S.C. 4332(2)(C)). (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 reviews and permitting activities of such projects. (B) Purposes Grants awarded under subparagraph (A) shall be used by entities to— (i) enable 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) engage in planning activities and in the development of offshore wind projects for the purposes of— (I) determining potential economic, social, public health, and environmental benefits and impacts; and (II) identifying opportunities to mitigate such impacts; (iii) facilitate siting of offshore renewable energy projects and associated electric transmission infrastructure; and (iv) hire and train 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) 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 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 is located.. (f) 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. (g) Updating regulations Not later than 270 days after the date of enactment of this section, the Secretary of the Interior shall issue any necessary regulations to carry out this section and the amendments made by this section.