link to page 1


September 1, 2022
Offshore Energy Agency Appropriations, FY2023
Three entities in the Department of the Interior (DOI) share
was a 15% increase over total FY2022 budget authority of
responsibility for managing the nation’s ocean energy
$206.7 million provided in P.L. 117-103, the Consolidated
resources on almost 2.5 billion acres of the U.S. outer
Appropriations Act, 2022. House-passed H.R. 8294 would
continental shelf (OCS). The Bureau of Ocean Energy
provide $229.8 million in total FY2023 budget authority for
Management (BOEM) administers offshore energy leasing
BOEM, 11% more than FY2022 and 3% less than requested
and mineral development; the Bureau of Safety and
by the Administration. (This total includes a $1 million
Environmental Enforcement (BSEE) oversees offshore
general increase from a House floor amendment to support
operational safety and environmental protection; and the
wind energy development.) S. 4686 would provide BOEM
Office of Natural Resources Revenue (ONRR) manages
with total budget authority of $232.6 million, 12% more
public revenues from federally regulated offshore and
than FY2022 and 2% less than the request.
onshore energy and natural resource projects. BOEM,
BSEE, and ONRR receive appropriations in the annual
BOEM’s funding is contained in a single budget account,
Interior, Environment, and Related Agencies appropriations
titled Ocean Energy Management. Within this account, the
bill. Issues include determining the aggregate and program-
Conventional Energy activity ($60.5 million FY2022;
level appropriations for each entity.
$61.5 million House-passed H.R. 8294; $63.6 million
FY2023 requested and S. 4686) funds administration of oil
On July 1, 2022, the House Committee on Appropriations
and gas leasing, including development of five-year leasing
reported an FY2023 Interior appropriations bill, H.R. 8262
programs. BOEM requested reduced funding for execution
(H.Rept. 117-400), with funding for BOEM, BSEE, and
of the five-year program but increased funding for baseline
ONRR. On July 20, 2022, the House passed H.R. 8294, a
workforce capacity, fixed costs, and addressing issues
consolidated appropriations bill with the same amounts for
related to receipt of fair market value for offshore leases.
the three entities. On July 28, 2022, S. 4686 was introduced
in the Senate with FY2023 appropriations for the three
The Renewable Energy activity ($36.8 million FY2022;
entities. The Senate Appropriations Committee majority
$51.7 million FY2023 requested and House-passed H.R.
released a related draft explanatory statement (DES).
8294; $44.8 million S. 4686) supports BOEM’s
management of renewable ocean energy resources. BOEM
Total budget authority for BOEM and BSEE includes both
requested added funding to extend its workforce capacity
discretionary appropriations and offsetting collections
and invest in research and stakeholder engagement, among
derived from a portion of OCS rental receipts, cost-
other purposes. Both the House committee report and the
recovery fees, and (for BSEE) inspection fees. The
Senate committee majority’s DES direct BOEM to continue
discretionary appropriations for each fiscal year are reduced
close consultation with stakeholders such as the fishing
by the amount of eligible fees and receipts collected, so that
industry for offshore wind siting and permitting.
the final amount appropriated to each agency is the net of
those collections. Discussions of account- and activity-level
The Environmental Assessment activity ($79.8 million
funding in the sections below refer to total budget authority,
FY2022; $86.4 million FY2023 requested; $84.4 million
regardless of offsets. ONRR’s funding does not include
House-passed H.R. 8294; $88.4 million S. 4686) supports
offsetting collections.
BOEM’s responsibilities for assessing the environmental
impacts of ocean energy activities to inform planning and
BOEM Appropriations
policy decisions. BOEM’s requested increase was primarily
The Biden Administration requested $237.4 million in total
for its Environmental Studies Program.
budget authority for BOEM for FY2023 (Table 1). This
Table 1. BOEM, BSEE, and ONRR Appropriations, FY2022 and FY2023 ($ millions)
FY2022 Enacted FY2023
House-Passed House Bill % Change
Senate Senate Bill % Change
Agency
(P.L. 117-103)
Request
H.R. 8294
from FY2022
S. 4686
from FY2022
BOEM Total Budget Authority
206.7
237.4
229.8
+11%
232.6
+12%
BOEM Net Appropriation
163.7
200.4
192.8
+18%
195.6
+19%
BSEE Total Budget Authority
210.9
261.2
234.2
+11%
235.0
+11%
BSEE Net Appropriation
155.9
198.2
171.2
+10%
172.0
+10%
ONRR Total Appropriation
169.6
175.0
175.0
+3%
175.0
+3%
https://crsreports.congress.gov

---

link to page 1 link to page 1 Offshore Energy Agency Appropriations, FY2023
Source and Notes: Data from House Appropriations Committee. Net appropriations reflect estimated reductions to discretionary
appropriations from offsetting col ections. BOEM totals reflect a $1 mil ion increase from a House floor amendment to support offshore wind.
The Marine Minerals activity ($11.8 million FY2022;
The activities for Administrative Operations ($18.7 million
$15.4 million FY2023 requested and S. 4686; $12.4 million
FY2022; $20.5 million FY2023 requested and House-
House-passed H.R. 8294) supports management of offshore
passed H.R. 8294; $19.3 million S. 4686) and Executive
non-energy minerals, particularly sand and gravel, as well
Direction ($18.4 million FY2022; $18.8 million FY2023
as BOEM’s assessment of critical minerals on the OCS.
requested, House-passed H.R. 8294, and S. 4686) fund a
BOEM requested increased funds for its National Offshore
range of administrative services as well as BSEE’s
Sand Inventory. The House committee report described the
executive offices. BSEE’s FY2023 request included
inventory as “increasingly important” for state coastal
funding for zero-emission vehicles and the DOI-wide
mitigation efforts. The Senate committee majority’s DES
Diversity, Equity, Inclusion, and Accessibility Initiative,
directed continued levels of critical minerals assessment.
among others.
The Executive Direction activity ($17.9 million FY2022;
BSEE’s Offshore Decommissioning activity ($3.0 million
$20.3 million FY2023 requested and S. 4686; $19.8 million
FY2022; $30.0 million FY2023 requested; $5.0 million
House-passed H.R. 8294) covers leadership, budgeting,
House-passed H.R. 8294 and S. 4686) was established as a
technology, and related activities. The requested increase
separate line item in FY2022, supporting closure and
was primarily to enhance program support for the
removal of offshore energy infrastructure when leases reach
Administration’s clean energy priorities.
the end of their lifetimes. BSEE requested $30.0 million for
FY2023 to “properly plug and abandon” orphaned wells
Net of estimated offsetting collections, BOEM’s FY2023
and pipelines that no liable party is available to
request was $200.4 million, 22% more than the net
decommission. H.R. 8294 and S. 4686 would provide less
appropriation of $163.7 million for BOEM in FY2022. The
($5.0 million). The House committee report expressed
22% increase in the net request, compared with the 15%
“strong disagreement that the ultimate responsibility for
increase in the total request, reflects that BOEM anticipates
these activities should fall to the American taxpayer” and
less in offsetting rental receipts and cost-recovery fees for
would require a briefing on BSEE’s plans for obtaining
FY2023 than were collected in FY2022. Net of offsetting
financial assurance from operators to avoid future costs.
collections, H.R. 8294 would provide $192.8 million for
BOEM, 18% more than enacted for FY2022 and 4% less
The second BSEE account, Oil Spill Research ($15.1
than requested. S. 4686 would provide $195.6 million, 19%
million FY2022, FY2023 request, House-passed H.R. 8294,
more than FY2022 and 2% less than requested.
and S. 4686), funds research and planning for oil spill
responses and supports Ohmsett, the National Oil Spill
BSEE Appropriations
Response Research and Renewable Energy Test Facility.
The Administration requested $261.2 million in total budget
BSEE would focus funding on renewable energy research
authority for BSEE for FY2023, a 24% increase over the
in addition to oil spills.
FY2022 total budget authority of $210.9 million in P.L.
117-103. House-passed H.R. 8294 would provide BSEE
BSEE’s requested net appropriations after offsetting
with total FY2023 budget authority of $234.2 million, 10%
collections were $198.2 million, 27% more than the
less than the request and 11% more than the FY2022 total
FY2022 net appropriations of $155.9 million. Net of
budget authority (Table 1). S. 4686 would provide BSEE
offsetting collections, H.R. 8294 would provide $171.2
with total budget authority of $235.0 million, also 10% less
million, 14% less than the request and 10% more than
than requested and 11% more than FY2022.
FY2022. S. 4686 would provide net appropriations of
$172.0 million, 13% less than the request and 10% more
BSEE’s funding is appropriated under two budget accounts,
than FY2022.
Offshore Safety and Environmental Enforcement (OSEE)
and Oil Spill Research. Under the OSEE account, the
BSEE’s budget proposed a legislative provision to raise
Operations, Safety, and Regulation activity ($160.1
inspection fees to adjust for inflation and to change facility
million FY2022; $170.9 million FY2023 requested and S.
inspection fees from a per-year to a per-visit basis. H.R.
4686; $168.9 million House-passed H.R. 8294) supports
8294 and S. 4686 generally reflect the requested changes.
BSEE’s development of regulations and safety standards,
review and approval of OCS operating permits, inspections
ONRR Appropriations
of facilities and equipment, and oversight of operator safety
ONRR, which manages revenues from both offshore and
programs, among other activities. Most of BSEE’s
onshore energy, is funded within the broader appropriation
requested increase was for its renewable energy program.
for DOI’s Department-Wide Programs. For FY2023, the
Administration requested $175.0 million for ONRR, an
The Environmental Enforcement activity ($5.5 million
increase of 3% over the FY2022 funding of $169.6 million
FY2022; $5.9 million FY2023 requested, House-passed
(Table 1). The requested increase was mainly for
H.R. 8294, and S. 4686) supports BSEE’s compliance with
information technology (IT) modernization. House-passed
environmental statutes and its oversight and enforcement of
H.R. 8294 as well as S. 4686 would provide the requested
environmental compliance by operators on the OCS.
amount.
BSEE’s requested increase was for its renewable energy
program.
Laura B. Comay, Specialist in Natural Resources Policy
IF12204
https://crsreports.congress.gov

---

Offshore Energy Agency Appropriations, FY2023


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF12204 · VERSION 1 · NEW

---