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September 24, 2021
Offshore Energy Agency Appropriations, FY2022
Three entities in the Department of the Interior (DOI) share
increase over the total FY2021 budget authority of $192.8
responsibility for managing the nation’s ocean energy
million provided in P.L. 116-260, the Consolidated
resources on almost 2.5 billion acres of the U.S. outer
Appropriations Act, 2021. House-passed H.R. 4502 would
continental shelf (OCS). The Bureau of Ocean Energy
provide $223.9 million in total FY2022 budget authority for
Management (BOEM) administers offshore energy leasing
BOEM, 16% more than FY2021 and 2% less than requested
and mineral development; the Bureau of Safety and
by the Administration (Table 1). The total budget authority
Environmental Enforcement (BSEE) oversees offshore
consists of discretionary appropriations and offsetting
operational safety and environmental protection; and the
collections (see below).
Office of Natural Resources Revenue (ONRR) manages
public revenues from federally regulated offshore and
BOEM’s funding is contained in a single budget account,
onshore energy and natural resource projects. BOEM,
titled Ocean Energy Management. Within this account, the
BSEE, and ONRR receive appropriations in the annual
Conventional Energy budget activity ($60.5 million
Interior, Environment, and Related Agencies appropriations
FY2021; $62.3 million FY2022 request; $58.5 million
bill. Issues include determining the aggregate and program-
House-passed H.R. 4502) funds administration of oil and
level appropriations for each entity.
gas leasing, including the development of forward-looking
five-year leasing programs. BOEM sought a funding
On July 6, 2021, the House Committee on Appropriations
increase primarily to support fixed costs such as health and
reported an FY2022 Interior appropriations bill, H.R. 4372
retirement benefits.
(H.Rept. 117-83), with funding for BOEM, BSEE, and
ONRR. On July 29, 2021, the House passed H.R. 4502, a
The Renewable Energy activity ($28.5 million FY2021;
consolidated appropriations bill with the same amounts for
$45.8 million FY2022 requested; $45.8 million House-
the three entities.
passed H.R. 4502) supports BOEM’s management of
renewable ocean energy resources. BOEM requested added
Total budget authority for BOEM and BSEE includes both
funding to boost its workforce capacity and invest in
discretionary appropriations and offsetting collections
research and stakeholder engagement, among other
derived from a portion of OCS rental receipts, cost-
purposes. The House committee report expressed support
recovery fees, and (for BSEE) inspection fees. The
for BOEM’s “commitment” and “urge[d] BOEM to
discretionary appropriations for each fiscal year are reduced
continue its engagement with states, local communities, and
by the amount of eligible fees and receipts collected, so that
other stakeholders in this process.”
the final amount appropriated to each agency is the net of
those collections. Discussions of account- and activity-level
The Environmental Assessment activity ($75.9 million
funding in the sections below refer to total budget authority,
FY2021; $86.8 million FY2022 requested; $86.8 million
regardless of offsets. ONRR’s funding does not include
House-passed H.R. 4502) supports BOEM’s responsibilities
offsetting collections.
for assessing the environmental impacts of ocean energy
activities to inform planning and policy decisions. BOEM’s
BOEM Appropriations
requested funding increase mainly would support its
The Biden Administration requested $227.8 million in total
Environmental Studies Program.
budget authority for BOEM for FY2022. This was an 18%
Table 1. BOEM, BSEE, and ONRR Appropriations, FY2021 and FY2022
($ mil ions)
FY2021 Enacted
House-Passed
House Bill % Change
Agency
(P.L. 116-260)
FY2022 Request
H.R. 4502
from FY2021
BOEM Total Budget Authority
192.8
227.8
223.9
+16%
BOEM Net Appropriation
127.8
184.8
180.9
+42%
BSEE Total Budget Authority
198.7
253.4
228.4
+15%
BSEE Net Appropriation
125.1
195.4
170.4
+36%
ONRR Total Appropriation
148.5
169.6
153.5
+3%
Source and Notes: Data from House Committee on Appropriations. Net appropriations reflect estimated reductions to discretionary
appropriations based on offsetting col ections. Table does not reflect an additional $1.0 mil ion for the “Decommissioning BOEM Account,”
provided in relation to a general provision in H.R. 4502.
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The Marine Minerals activity ($10.8 million FY2021;
House-passed H.R. 4502) supports BSEE’s compliance
$15.0 million FY2022 requested; $15.0 million House-
with environmental statutes and its oversight and
passed H.R. 4502) supports management of offshore non-
enforcement of environmental compliance by operators on
energy minerals, particularly sand and gravel, as well as
the OCS. BSEE stated that the requested FY2022 increase
BOEM’s assessment of critical minerals on the OCS. The
was for its renewable energy program.
House committee report stated that its funding increase was
to support BOEM’s National Offshore Sand Inventory, “a
The activities for Administrative Operations ($18.2 million
key component of coastal mitigation efforts and an
FY2021; $20.2 million FY2022 requested; $20.2 million
increasingly important resource for states.”
House-passed H.R. 4502) and Executive Direction ($18.1
million FY2021; $18.4 million FY2022 requested; $18.4
The Executive Direction activity ($17.2 million FY2021;
million House-passed H.R. 4502) fund a range of
$17.9 million FY2022 requested; $17.9 million House-
administrative services as well as BSEE’s executive offices.
passed H.R. 4502) covers leadership, budgeting,
BSEE’s FY2022 request included funding for zero-
technology, and related activities. The requested increase
emission vehicles and the DOI-wide Diversity, Equity,
was primarily for fixed costs and to implement a DOI-wide
Inclusion, and Accessibility Initiative, among others.
Diversity, Equity, Inclusion, and Accessibility Initiative.
BSEE also proposed a new budget activity under the OSEE
Net of estimated offsetting collections, the FY2022 request
account, titled Offshore Decommissioning. BSEE
was $184.8 million, 45% more than the net appropriation of
requested $30.0 million to “properly” decommission
$127.8 million for BOEM in FY2021. The greater
orphaned well and pipeline infrastructure. H.R. 4502 would
percentage change from last year in the net versus total
provide $5.0 million. The House committee report stated
request reflects that BOEM anticipates less in offsetting
that it “strongly disagrees that the ultimate responsibility for
rental receipts and cost-recovery fees for FY2022 than were
these activities should fall to the American taxpayer.” The
collected in FY2021. The House-passed bill also reflects
committee would require a briefing on BSEE’s plans for
lower estimated offsetting collections in FY2022 than in
obtaining financial assurance from operators regarding
FY2021. Net of offsetting collections, H.R. 4502 would
infrastructure decommissioning.
provide $180.9 million for BOEM, 42% more than enacted
for FY2021 and 2% less than requested.
The second BSEE account, Oil Spill Research ($14.9
million FY2021; $15.1 million FY2022 request; $15.1
Separately, BOEM proposed and the House included in
million House-passed H.R. 4502), funds research and
H.R. 4502 a general provision (Section 126) establishing a
planning for oil spill responses and supports Ohmsett, the
new offshore decommissioning account for BOEM. H.R.
National Oil Spill Response Research and Renewable
4502 would appropriate $1.0 million for this account.
Energy Test Facility. BSEE stated that the added funding
for FY2022 would go toward research on the safety and
BSEE Appropriations
sustainability of renewable energy operations.
The Administration requested $253.4 million in total budget
authority for BSEE for FY2022, a 28% increase over the
BSEE’s requested net appropriations after offsetting
FY2021 total budget authority of $198.7 million in P.L.
collections were $195.4 million, 56% more than the
116-260. House-passed H.R. 4502 would provide BSEE
FY2021 net appropriations of $125.1 million. Net of
with total FY2022 budget authority of $228.4 million, 10%
offsetting collections, H.R. 4502 would provide $170.4
less than the request and 15% more than the FY2021 total
million, 13% less than the request and 36% more than
budget authority (Table 1).
FY2021.
BSEE’s funding is appropriated under two budget accounts,
ONRR Appropriations
Offshore Safety and Environmental Enforcement (OSEE)
ONRR, which manages revenues from both offshore and
and Oil Spill Research. Under the OSEE account, the
onshore energy, is funded within the broader appropriation
Operations, Safety, and Regulation activity ($152.8
for DOI’s Department-Wide Programs. For FY2022, the
million FY2021; $164.1 million FY2022 requested; $164.1
Administration requested $169.6 million for ONRR, an
million House-passed H.R. 4502) supports BSEE’s
increase of 14% over the FY2021 funding of $148.5 million
development of regulations and safety standards, review
(Table 1). The requested increase was mainly for
and approval of OCS operating permits, inspections of
information technology (IT) modernization. House-passed
facilities and equipment, and oversight of operator safety
H.R. 4502 would provide $153.5 million, 3% more than the
programs, among other activities. The House committee
FY2021 amount and 10% less than the request.
report stated that the increased funding was to support
BSEE’s development of an offshore renewable energy
Laura B. Comay, Specialist in Natural Resources Policy
program, per the agency’s request.
IF11933
The Environmental Enforcement activity ($4.8 million
FY2021; $5.5 million FY2022 requested; $5.5 million
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Offshore Energy Agency Appropriations, FY2022
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https://crsreports.congress.gov | IF11933 · VERSION 1 · NEW