Offshore Energy Agency Appropriations, FY2022

Offshore Energy Agency Appropriations, FY2022

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Updated May 17, 2022
Offshore Energy Agency Appropriations, FY2022
Three entities in the Department of the Interior (DOI) share
regardless of offsets. ONRR’s funding does not include
responsibility for managing the nation’s ocean energy
offsetting collections.
resources on almost 2.5 billion acres of the U.S. outer
continental shelf (OCS). The Bureau of Ocean Energy
BOEM Appropriations
Management (BOEM) administers offshore energy leasing
The Biden Administration requested $227.8 million in total
and mineral development; the Bureau of Safety and
BOEM budget authority for FY2022 (Table 1). This was an
Environmental Enforcement (BSEE) oversees offshore
18% increase over the total FY2021 budget authority of
operational safety and environmental protection; and the
$192.8 million provided in P.L. 116-260, the Consolidated
Office of Natural Resources Revenue (ONRR) manages
Appropriations Act, 2021. P.L. 117-103 provided $206.7
public revenues from federally regulated offshore and
million in total FY2021 budget authority for BOEM, 7%
onshore energy and natural resource projects. BOEM,
more than the FY2021 total budget authority and 11% less
BSEE, and ONRR receive appropriations in the annual
than requested by the Administration. House-passed H.R.
Interior, Environment, and Related Agencies appropriations
4502 would have provided $223.9 million, and S. 3034
bill. Issues include determining the aggregate and program-
contained $227.8 million. The total budget authority
level appropriations for each entity.
consists of discretionary appropriations and offsetting
collections (see below).
FY2022 appropriations for BOEM, BSEE, and ONRR were
contained in P.L. 117-103, the Consolidated Appropriations
BOEM’s funding is contained in a single budget account,
Act, 2022, enacted on March 15, 2022. Because
titled Ocean Energy Management. Within this account, the
appropriations were not enacted by the start of the fiscal
Conventional Energy budget activity ($60.5 million
year, several continuing resolutions had earlier provided
FY2021; $62.3 million FY2022 request; $60.5 million
appropriations at FY2021 levels. Also, on July 29, 2021,
enacted) funds administration of oil and gas leasing,
the House had passed H.R. 4502 with FY2022 consolidated
including the development of forward-looking five-year
appropriations (also see H.Rept. 117-83 on H.R. 4372, an
leasing programs. BOEM had sought a funding increase
earlier stand-alone House bill). On October 18, 2021, the
primarily to support fixed costs such as health and
chair of the Senate Committee on Appropriations released a
retirement benefits.
majority draft bill, later introduced as S. 3034, with
appropriations for Interior and related agencies.
The Renewable Energy activity ($28.5 million FY2021;
$45.8 million FY2022 request; $36.8 million enacted)
Total budget authority for BOEM and BSEE includes both
supports BOEM’s management of renewable ocean energy
discretionary appropriations and offsetting collections
resources. BOEM requested added funding to boost its
derived from a portion of OCS rental receipts, cost-
workforce capacity and invest in research and stakeholder
recovery fees, and (for BSEE) inspection fees. The
engagement. The joint explanatory statement for P.L. 117-
discretionary appropriations for each fiscal year are reduced
103 directed BOEM to consult “early and often with the
by the amount of eligible fees and receipts collected, so that
commercial fishing industry and other stakeholders” on
the final amount appropriated to each agency is the net of
offshore wind siting decisions and to partner with
those collections. Discussions of account- and activity-level
cooperating federal agencies on these decisions.
funding in the sections below refer to total budget authority,
Table 1. BOEM, BSEE, and ONRR Appropriations, FY2021 and FY2022
($ mil ions)
FY2021 Enacted
FY2022
House-Passed
Senate
FY2022 Enacted
% Change from
Agency
(P.L. 116-260)
Request
H.R. 4502
S. 3034
(P.L. 117-103)
FY2021
BOEM Total Budget Authority
192.8
227.8
223.9
227.8
206.7
+7%
BOEM Net Appropriation
127.8
184.8
180.9
184.8
163.7
+28%
BSEE Total Budget Authority
198.7
253.4
228.4
252.7
210.9
+6%
BSEE Net Appropriation
125.1
195.4
170.4
194.7
155.9
+25%
ONRR Total Appropriation
148.5
169.6
153.5
169.6
169.6
+14%
Source: Data from House and Senate Committees on Appropriations; joint explanatory statement for P.L. 117-103.
Notes: Net appropriations reflect estimated reductions to discretionary appropriations based on offsetting col ections.
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The Environmental Assessment activity ($75.9 million
The activities for Administrative Operations ($18.2 million
FY2021; $86.8 million FY2022 request; $79.8 million
FY2021; $20.2 million FY2022 request; $18.8 million
enacted) supports BOEM’s responsibilities for assessing the
enacted) and Executive Direction ($18.1 million FY2021;
environmental impacts of ocean energy activities to inform
$18.4 million FY2022 requested and enacted) fund a range
planning and policy decisions. BOEM’s requested funding
of administrative services as well as BSEE’s executive
increase mainly was to support its Environmental Studies
offices. BSEE’s FY2022 request included funding for zero-
Program.
emission vehicles and the DOI-wide Diversity, Equity,
Inclusion, and Accessibility Initiative, among others.
The Marine Minerals activity ($10.8 million FY2021;
$15.0 million FY2022 request; $11.8 million enacted)
BSEE also proposed a new budget activity under the OSEE
supports management of offshore non-energy minerals,
account, titled Offshore Decommissioning. BSEE
particularly sand and gravel, as well as BOEM’s assessment
requested $30.0 million to “properly” decommission
of critical minerals on the OCS. The joint explanatory
orphaned well and pipeline infrastructure. P.L. 117-103
statement specified that BOEM’s critical minerals activities
provided $3.0 million. The joint explanatory statement
should continue at “not less than” FY2021 enacted levels.
directed compliance with certain text from the House
Appropriations Committee report, requiring a briefing on
The Executive Direction activity ($17.2 million FY2021;
BSEE’s plans for obtaining financial assurance from
$17.9 million FY2022 requested and enacted) covers
operators regarding infrastructure decommissioning, and
leadership, budgeting, technology, and related activities.
expressing that the committee “strongly disagrees that the
The requested increase was primarily for fixed costs and to
ultimate responsibility for these activities should fall to the
implement a DOI-wide Diversity, Equity, Inclusion, and
American taxpayer.”
Accessibility Initiative.
The second BSEE account, Oil Spill Research ($14.9
Net of estimated offsetting collections, the FY2022 request
million FY2021; $15.1 million FY2022 requested and
was $184.8 million, 45% more than the net appropriation in
enacted) funds research and planning for oil spill responses
FY2021. P.L. 117-103 provided $163.7 million as the net
and supports Ohmsett, the National Oil Spill Response
appropriation, 28% more than FY2021. The greater
Research and Renewable Energy Test Facility. BSEE stated
percentage increase from last year in the net versus total
that the added funding for FY2022 would go toward
appropriation reflects that BOEM anticipates less in
research on the safety and sustainability of renewable
offsetting rental receipts and cost-recovery fees for FY2022
energy operations.
than were collected in FY2021.
BSEE’s requested net appropriation after offsetting
BSEE Appropriations
collections was $195.4 million, 56% more than the FY2021
The Administration requested $253.4 million in total budget
net appropriation. P.L. 117-103 provided $155.9 million as
authority for BSEE for FY2022, a 28% increase over the
the net appropriation, 25% more than FY2021.
FY2021 total budget authority of $198.7 million in P.L.
116-260 (Table 1). P.L. 117-103 provided BSEE with total
ONRR Appropriations
budget authority of $210.9 million, 6% more than FY2021
ONRR, which manages revenues from both offshore and
and 17% less than requested. House-passed H.R. 4502
onshore energy, is funded within the broader appropriation
would have provided BSEE with total FY2022 budget
for DOI’s Department-Wide Programs. For FY2022, the
authority of $228.4 million, and S. 3034 would have
Administration requested $169.6 million for ONRR, an
provided $252.7 million.
increase of 14% over the FY2021 funding of $148.5 million
(Table 1). The requested increase was mainly for
BSEE’s funding is appropriated under two budget accounts,
information technology (IT) modernization. P.L. 117-103
Offshore Safety and Environmental Enforcement (OSEE)
provided the requested amount.
and Oil Spill Research. Under the OSEE account, the
Operations, Safety, and Regulation activity ($152.8
General Provisions
million FY2021; $164.1 million FY2022 request; $160.1
Similar to previous Interior appropriations acts, P.L. 117-
million enacted) supports BSEE’s development of
103 included a general provision (Section 107) authorizing
regulations and safety standards, review and approval of
BSEE to collect specified fees for inspections of offshore
OCS operating permits, inspections of facilities and
facilities. BSEE had requested that the fee amounts be
equipment, and oversight of operator safety programs,
increased to account for inflation, but P.L. 117-103 did not
among other activities. BSEE requested increased funding
alter the fee amounts from recent years.
to support its offshore renewable energy program.
For Additional Reading
The Environmental Enforcement activity ($4.8 million
For a broader overview of FY2022 Interior appropriations,
FY2021; $5.5 million FY2022 requested and enacted)
see CRS Report R46908, Interior, Environment, and
supports BSEE’s compliance with environmental statutes
Related Agencies: Overview of FY2022 Appropriations.
and its oversight and enforcement of environmental
compliance by operators on the OCS. BSEE stated that the
Laura B. Comay, Specialist in Natural Resources Policy
requested FY2022 increase was for its renewable energy
program.
IF11933
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Offshore Energy Agency Appropriations, FY2022

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https://crsreports.congress.gov | IF11933 · VERSION 3 · UPDATED