Sec. 7. Offshore power administration
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Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall establish the Offshore Power Administration. The Offshore Power Administration may, subject to paragraphs
(2)and (3)— construct, finance, facilitate, plan, operate, maintain, acquire, and study covered transmission infrastructure; and support construction, financing, facilitation, planning, operation, maintenance, acquisition, and study of covered transmission infrastructure. 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. The Secretary of Energy may not make a determination under this paragraph sooner than 3 years after the date of enactment of this Act. 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 ). 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. The Administrator shall establish and maintain such regional offices as necessary to facilitate the performance of the Offshore Power Administration. 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). 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. 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. 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. The Administrator may refinance loans made pursuant to this section with the Secretary of the Treasury in accordance with paragraph (2). The Administrator may enter into agreements and partnerships with other entities to carry out any of the activities listed in subsection (b)(1). 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. In this subsection, the term qualified revenue means— all revenue received by the Offshore Power Administration from the operation of the covered transmission infrastructure; less the amount the Administrator determines necessary to— pay the costs of operating and maintaining the covered transmission infrastructure, including expenses described in subsection (g)(2); and pay for any ancillary services that are used by the Offshore Power Administration. 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. 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). The Administrator shall notify the Secretary of the Treasury of such amounts as are to be forgiven under this subsection. 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. The Administrator shall, after the close of each fiscal year, obtain an independent commercial-type audit of such accounts. 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. 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. 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. 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— 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 subsection 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 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. 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. 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— a description of the activities of the Offshore Power Administration; an accounting of the use of loans made under this section; and 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. In this section: The term Administrator means the Administrator of the Offshore Power Administration. The term covered transmission infrastructure — means electric power transmission infrastructure, and any related facilities thereof, that serves at least one offshore renewable energy project; and includes onshore facilities that enable the interconnection of offshore renewable energy projects.
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- 64 Stat. 1267
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