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Code · BILL · 119th Congress · H.R. 3742 (Introduced in House) — To amend the Outer Continental Shelf Lands Act to support the responsible development of offshore renewable energy pr... · Sec. 3

Sec. 3. Responsible development of offshore renewable energy projects

2,990 words·~14 min read·/bill/119/hr/3742/ih/section-3

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Section 2 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 ) is amended— in the definition for the term State , as added by section 50251(b)(1)(A)(iv) of Public Law 117–169 — by redesignating such definition as subsection (t); and by inserting after the enumerator ; and State. — by adding at the end the following: 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. . Section 3 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1332 ) is amended— by amending paragraph
(3)to read as follows: 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— supporting the generation, transmission, and storage of zero-emission electricity; and 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; ; by redesignating paragraphs
(5)and
(6)as paragraphs
(6)and (7), respectively; and by inserting after paragraph
(4)the following: 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; . Section 8(p) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(p) ) is amended— in paragraph (2)— in subparagraph (B)— by striking 27 and inserting 17 ; by striking three and inserting 100 ; and by striking 15 and inserting 100 ; and by adding at the end the following: 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— State, local, and Tribal governments, and regional partnerships thereof, including regional ocean partnerships, regional wildlife science collaboratives, and similar organizations; and nonprofit organizations. 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. 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. ; by amending paragraph
(3)to read as follows: 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. 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. The Secretary may consider non-monetary factors when competitively awarding leases under paragraph (1), which may include commitments made by the bidder to— 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; 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; 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; 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; support the development and use of shared transmission infrastructure connecting to offshore renewable energy projects; 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 make other investments determined appropriate by the Secretary. When considering non-monetary factors under this subparagraph, the Secretary may— evaluate the quality of commitments made by the bidder; and reward finalized binding agreements above assurances for future commitments. In this subparagraph: The term covered entity has the meaning given such term in section 34(k). 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. ). ; by amending paragraph
(4)to read as follows: The Secretary shall ensure that any activity under this subsection is carried out in a manner that provides for— safety; protection of the environment, which includes facilitation of the generation, transmission, and storage of zero-emission electricity; prevention of waste; conservation of the natural resources of the outer Continental Shelf; conservation of Tribal cultural resources of the outer Continental Shelf; coordination with relevant Federal agencies and State, Tribal, and local governments; protection of national security interests of the United States; protection of correlative rights in the outer Continental Shelf; a fair return to the United States for any lease, easement, or right-of-way under this subsection; accommodation of reasonable uses (as determined by the Secretary) of the exclusive economic zone, the high seas, and the territorial seas; consideration of— the location of, and any schedule relating to, a lease, easement, or right-of-way for an area of the outer Continental Shelf; and any other use of the sea or seabed, including use for a fishery, a sealane, a potential site of a deepwater port, or navigation; 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; oversight, inspection, research, monitoring, and enforcement relating to a lease, easement, or right-of-way under this subsection; and satisfaction or partial satisfaction of any applicable State and Federal renewable and clean energy mandates, targets, and goals. 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. In this subparagraph: 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. 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) )— of which building and construction employees are members; and that directly, or through its affiliates, sponsors a registered apprenticeship program. 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) ). 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. ). With respect to the construction of facilities for an offshore renewable energy project that begins after January 1, 2033, the Secretary shall require that— all structural iron and steel products that are (upon completion of construction) components of such facilities shall be produced in the United States; and 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. The Secretary may waive the requirements of clause
(i)in any case or category of cases in which the Secretary finds that— applying clause
(i)would be inconsistent with the public interest; such products are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or the use of such products will increase the cost of the overall project by more than 25 percent. 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. This subparagraph shall be applied in a manner consistent with United States obligations under international agreements. 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. ; by amending paragraph
(7)to read as follows: 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. 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— the land, including allotted, ceded, or traditional land, or interests in such land of an Indian Tribe or member of an Indian Tribe; Tribal land, cultural practices, resources, or access to traditional areas of cultural or religious importance; 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; the protected rights of an Indian Tribe, whether or not such rights are enumerated in a treaty, including water, hunting, gathering, and fishing rights; the ability of an Indian Tribe to govern or provide services to members of the Indian Tribe; the relationship between the Federal Government and an Indian Tribe; or the trust responsibility of the Federal Government to an Indian Tribe. 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. 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. 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. ; by amending paragraph
(10)to read as follows: 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. 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. 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. 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 by adding at the end the following: 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. A study conducted under subparagraph
(A)shall— incorporate the best available existing science and data, including Tribal Traditional Ecological Knowledge; identify areas for which there is insufficient science and data; and include consideration of the cumulative impacts (including potential navigational impacts) of offshore renewable energy projects on human, marine, and coastal environments. The Secretary shall use the data and assessments from studies conducted under this paragraph, as appropriate, when deciding— which portions of an area or region are most appropriate to make available for leasing; and whether to issue any permit or other authorization that is necessary to carry out an offshore renewable energy project. EPA 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. 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. Grants awarded under subparagraph
(A)shall be for— 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; engaging in planning activities related to the development of offshore renewable energy projects to— determine potential economic, social, public health, environmental, and cultural benefits and impacts resulting from offshore renewable energy projects; and identify opportunities to mitigate such impacts; facilitating siting of offshore renewable energy projects and associated electric transmission infrastructure; and 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). 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. 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. . Section 12(a) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1341(a) ) is amended to read as follows: The President of the United States may, from time to time, withdraw from disposition any of the unleased lands of the outer Continental Shelf. 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. . Section 23(c)(2) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1349(c)(2) ) is amended to read as follows: 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. .
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