Offshore Energy Modernization Act of 2025

The Offshore Energy Modernization Act of 2025 aims to significantly expand offshore renewable energy development by amending the Outer Continental Shelf Lands Act. It establishes ambitious national goals for offshore wind energy production, targeting 30 gigawatts by 2030 and 50 gigawatts by 2035, to be achieved through the issuance of permits by the Secretary of the Interior. The bill redefines national policy for the Outer Continental Shelf to prioritize zero-emission electricity generation and storage, alongside environmental safeguards and robust stakeholder engagement. It introduces multi-factor bidding for leases, allowing consideration of non-monetary factors such as workforce development, domestic supply chain support, community benefit agreements, and investments in environmental and Tribal cultural resource preservation. To ensure responsible development, the legislation mandates project labor agreements for construction activities starting in 2027 and imposes domestic content requirements for structural iron, steel, and manufactured products in facilities built after 2033, with provisions for waivers. It also strengthens requirements for meaningful and timely Tribal consultation , including confidentiality for sensitive information, and requires planning area impact studies before lease sales to assess environmental and cultural impacts. A significant provision is the establishment of the Offshore Renewable Energy Compensation Fund , funded by 10% of project revenues. This fund will provide payments for verified claims of lost gear or income and grants for mitigation activities to communities, stakeholders, and Tribal interests impacted by offshore renewable energy projects. An advisory group will guide the fund's administration, and a mechanism exists for leaseholders to contribute if funds are insufficient. The Act creates the Offshore Power Administration within the Department of Energy, tasked with constructing, financing, operating, and studying offshore transmission infrastructure. This Administration can intervene if regional stakeholders fail to coordinate on shared transmission, with a $10 billion loan authority from the Treasury. It also requires prevailing wages for construction and extensive coordination with State, local, and Tribal governments. To support the permitting process, the bill appropriates $95 million to the Department of the Interior and the National Oceanic and Atmospheric Administration for hiring, training, environmental reviews, and data systems. It also authorizes funding for studies on offshore transmission infrastructure siting and a program to develop interoperability standards for electric grid components. Finally, the Act establishes an Offshore Wind Shipyard Grant Program with $100 million authorized to bolster domestic shipbuilding capacity for offshore wind projects and expands loan guarantees for wind turbine installation vessels.