Offshore Energy Modernization Act of 2025
Sponsored By: Representative Tonko, Paul [D-NY-20]
Introduced
Summary
Accelerate U.S. offshore renewable energy deployment. This bill would set national targets and new rules to scale wind, solar, wave, and tidal projects on the Outer Continental Shelf while funding mitigation, workforce rules, and domestic supply chain support.
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- Workers and unions: Would require project labor agreements for construction starting January 1, 2027 and push apprenticeship programs tied to registered apprenticeships, making union-negotiated labor standards a condition of buildout.
- Coastal communities, fishers, and Tribes: Would create an Offshore Renewable Energy Compensation Fund funded by 10% of lease, easement, and right-of-way revenue to pay verified claims and mitigation grants, and allow area accounts to request up to $3 per acre from leaseholders once per year if funds fall short.
- Manufacturers, shipyards, and grid planners: Would impose a 65% domestic manufactured-cost requirement for projects beginning construction after January 1, 2033 with a 25% cost waiver and a 15-business-day public input period; it would authorize $100 million for shipyard grants plus $10 million and $5 million for transmission siting and interoperability activities respectively.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 7 benefits, 0 costs, 0 mixed.
New offshore leasing rules and targets
If enacted, offshore leases would usually be awarded through competitive sales, and Interior would publish a leasing schedule. Lease awards could weigh non‑money commitments like training, domestic supply chains, community benefit agreements, ecosystem investments, shared transmission, and Tribal cultural protection. The bill asks Interior to seek permits enabling at least 30 gigawatts by 2030 and 50 gigawatts by 2035. It would define offshore renewable projects to cover wind, solar, wave, and tidal. Interior would also report within 10 years on options to remove or keep structures, including turning them into artificial reefs when safe and appropriate.
New federal office for offshore power
If enacted, DOE would create an Offshore Power Administration within one year to plan, finance, and build shared offshore transmission. The Treasury would lend to it without yearly limits, but total outstanding loans could not exceed $10 billion at any time; some balances could be forgiven at the end of a project's useful life or if only studies are done. OPA could not start building in a region until at least three years after enactment and only if the Secretary finds coordination has failed. Construction funded by OPA would pay Davis‑Bacon wages, and by January 1, 2027, project labor agreements would be required on offshore renewable leases. Annual reports to Congress would begin by January 1, 2027.
Compensation and grants from offshore leases
If enacted, 10% of offshore lease revenues would go into a new fund that could pay people and businesses for lost gear or income tied to offshore projects. Payments would come from area accounts and would be reduced by any direct payments already received from a project. The government could use up to 15% of deposits for admin costs and could require leaseholders to add up to $3 per acre once a year if an area account runs short. Another 10% of lease revenues would fund grants for States, Tribal and local governments, regional groups, and nonprofits to protect habitat, mitigate impacts, and support research and capacity. These set‑asides would not expire each fiscal year.
Grants and loans for wind vessels
If enacted, DOE would offer $100 million in grants to upgrade shipyards and build or convert vessels for offshore wind work. Shipyards, vessel fabricators, and key suppliers could apply, and workers must be paid Davis‑Bacon prevailing wages. Standard DOE cost‑share rules would apply. The bill would also let federal loan guarantees support projects that increase the supply of U.S.-made offshore wind vessels, including installation ships.
More funding to speed permit reviews
If enacted, Interior would receive $50 million in fiscal year 2026 and NOAA would receive $45 million. The money would hire and train staff, develop program‑level environmental documents, buy scientific services and equipment, support Tribal consultation, and build data systems like regional portals and the Marine Cadastre. Funds would remain available until spent to help complete responsible, on‑time reviews for offshore renewable energy projects.
Stronger Tribal consultation and protections
If enacted, agencies would have to consult early and meaningfully with Tribes before actions that could affect Tribal lands, culture, resources, or rights. At a Tribe’s request, meetings would be closed to the public. Tribes could mark sensitive information confidential, and agencies would have to withhold it from public release. Consultations would follow Executive Order 13175 and later federal standards.
Studies and standards for offshore transmission
If enacted, DOE would finish a study within two years on making offshore grid parts work together and could fund voluntary standards work. The bill authorizes $5 million for this standards program. DOE would also run periodic studies on where to place offshore transmission and how to connect onshore, with $10 million authorized. The work would consider safety, national security, Tribal rights, the environment, and resilience.
Sponsors & CoSponsors
Sponsor
Tonko, Paul [D-NY-20]
NY • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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