Offshore Energy Agency Appropriations, FY2023

Offshore Energy Agency Appropriations, FY2023

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Updated July 13, 2023
Offshore Energy Agency Appropriations, FY2023
Three entities in the Department of the Interior (DOI) share
BOEM Appropriations
responsibility for managing the nation’s ocean energy
The Biden Administration requested $237.4 million in total
resources on almost 2.5 billion acres of the U.S. outer
budget authority for BOEM for FY2023 (Table 1). This
continental shelf (OCS). The Bureau of Ocean Energy
would have been a 15% increase over total FY2022 budget
Management (BOEM) administers offshore energy leasing
authority of $206.7 million. P.L. 117-328 provided $220.0
and mineral development; the Bureau of Safety and
million in total FY2023 budget authority for BOEM, 6%
Environmental Enforcement (BSEE) oversees offshore
more than the FY2022 total budget authority and 7% less
operational safety and environmental protection; and the
than requested by the Administration. House-passed H.R.
Office of Natural Resources Revenue (ONRR) manages
8294 would have provided $229.8 million, and S. 4686
public revenues from federally regulated offshore and
contained $232.6 million.
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
act. Issues for FY2023 included determining the aggregate
Conventional Energy activity ($60.5 million FY2022;
and program-level appropriations for each entity and
$63.6 million FY2023 request; $61.5 million enacted) funds
considering several Biden Administration proposals.
administration of oil and gas leasing, including the
development of five-year leasing programs. The joint
P.L. 117-328, the Consolidated Appropriations Act, 2023,
explanatory statement (JES) for P.L. 117-328 directed that
was enacted on December 29, 2022, with FY2023
at least $2.0 million of enacted BOEM FY2023 funding be
appropriations for BOEM, BSEE, and ONRR. Because
used for work on geologic carbon sequestration and that
appropriations were not enacted by the start of the fiscal
BOEM build and support necessary expertise on this topic
year, several continuing resolutions had earlier provided
using funds from the budgets for Conventional Energy and
appropriations at FY2022 levels. Earlier House and Senate
Environmental Programs (also called Environmental
bills with FY2023 appropriations for the three entities
Assessment).
included H.R. 8294, a consolidated appropriations measure
passed by the House on July 20, 2022 (also see H.Rept.
The Renewable Energy activity ($36.8 million FY2022;
117-400 on H.R. 8262, a stand-alone Interior bill), and S.
$51.7 million FY2023 request; $42.8 million enacted)
4686, introduced in the Senate on July 28, 2022.
supports BOEM’s management of renewable ocean energy
resources. BOEM requested added funding to extend its
Total budget authority for BOEM and BSEE includes both
workforce capacity and invest in research and stakeholder
discretionary appropriations and offsetting collections
engagement, among other purposes. The JES directed
derived from a portion of OCS rental receipts, cost-
BOEM to collaborate with maritime users and stakeholder
recovery fees, and (for BSEE) inspection fees. The
groups in drawing project boundaries.
discretionary appropriations for each fiscal year are reduced
by the amount of eligible fees and receipts collected, so that
The Environmental Assessment activity ($79.8 million
the final amount appropriated to each agency is the net of
FY2022; $86.4 million FY2023 request; $82.4 million
those collections. Discussions of account- and activity-level
enacted) supports BOEM’s assessments of environmental
funding in the sections below refer to total budget authority,
impacts of ocean energy activities. The JES directed that up
regardless of offsets. ONRR’s funding does not include
to $5.0 million of the enacted funds be used to establish a
offsetting collections.
center for paleoenvironmental records of extreme events.
Table 1. BOEM, BSEE, and ONRR Appropriations, FY2022 and FY2023 ($ millions)
FY2022 Enacted FY2023
House-Passed
Senate
FY2023 Enacted
Agency
(P.L. 117-103)
Request
H.R. 8294
S. 4686
(P.L. 117-328 )
% Change from FY2022
BOEM Total Budget Authority
206.7
237.4
229.8
232.6
220.0
+6%
BOEM Net Appropriation
163.7
200.4
192.8
195.6
183.0
+12%
BSEE Total Budget Authority
210.9
261.2
234.2
235.0
229.0
+9%
BSEE Net Appropriation
155.9
198.2
171.2
172.0
172.0
+10%
ONRR Total Appropriation
169.6
175.0
175.0
175.0
174.9
+3%
Source and Notes: JES for P.L. 117-328. Net appropriations reflect estimated offsetting col ections. BSEE total budget authority for FY2022
includes a $10.0 mil ion rescission and excludes supplemental appropriations of $0.2 mil ion in P.L. 117-43 to address natural disasters.
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The Marine Minerals activity ($11.8 million FY2022;
Diversity, Equity, Inclusion, and Accessibility Initiative,
$15.4 million FY2023 request; $14.4 million enacted)
among other activities.
supports management of offshore non-energy minerals,
particularly sand and gravel, as well as BOEM’s assessment
BSEE’s Offshore Decommissioning activity ($3.0 million
of critical minerals on the OCS. BOEM requested increased
FY2022; $30.0 million FY2023 request; $3.0 million
funds for its National Offshore Sand Inventory.
enacted) was established as a separate line item in FY2022,
supporting closure and removal of offshore energy
The Executive Direction activity ($17.9 million FY2022;
infrastructure when leases reach the end of their lifetimes.
$20.3 million FY2023 request; $18.9 million enacted)
BSEE requested $30.0 million for FY2023 to “properly
covers leadership, budgeting, technology, and related
plug and abandon” orphaned wells and pipelines for which
activities. The requested increase was primarily to enhance
no potentially liable party is available to decommission.
program support for the Administration’s clean energy
However, P.L. 117-328 provided funding at the FY2022
priorities.
level of $3.0 million. The House committee report
expressed “strong disagreement that the ultimate
Net of estimated offsetting collections, BOEM’s FY2023
responsibility for these activities should fall to the
request was $200.4 million, 22% more than the net
American taxpayer.”
appropriation of $163.7 million in FY2022. P.L. 117-328
provided $183.0 million as the net FY2023 appropriation,
The second BSEE account, Oil Spill Research ($15.1
12% more than FY2022. The greater percentage increase
million FY2022; $15.1 million FY2023 request; $15.1
from FY2022 in the net appropriation (+12%) versus the
million enacted), funds research and planning for oil spill
total budget authority discussed above (+6%) reflects that
responses and supports Ohmsett, the National Oil Spill
BOEM anticipated less in offsetting rental receipts and
Response Research and Renewable Energy Test Facility.
cost-recovery fees for FY2023 than were collected in
BSEE stated in its request that it would focus funding on
FY2022.
renewable energy research in addition to oil spills. The JES
directed BSEE to continue to work on facilities to test
BSEE Appropriations
Arctic marine conditions for oil spill detection and
The Administration requested $261.2 million in total budget
response.
authority for BSEE for FY2023, a 24% increase over the
FY2022 total budget authority of $210.9 million in P.L.
BSEE’s requested net appropriation after offsetting
117-103 (Table 1). P.L. 117-328 provided BSEE with total
collections was $198.2 million, 27% more than the FY2022
FY2023 budget authority of $229.0 million, 9% more than
net appropriation of $155.9 million. P.L. 117-328 provided
FY2022 and 12% less than requested. House-passed H.R.
$172.0 million as the net FY2023 appropriation, 10% more
8294 would have provided BSEE with total FY2023 budget
than FY2022.
authority of $234.2 million, and S. 4686 would have
provided $235.0 million.
ONRR Appropriations
ONRR, which manages revenues from both offshore and
BSEE’s funding is appropriated under two budget accounts,
onshore energy, is funded within the broader appropriation
Offshore Safety and Environmental Enforcement (OSEE)
for DOI’s Department-Wide Programs. For FY2023, the
and Oil Spill Research. Under the OSEE account, the
Administration requested $175.0 million for ONRR, an
Operations, Safety, and Regulation activity ($160.1
increase of 3% over the FY2022 funding of $169.6 million
million FY2022; $170.9 million FY2023 request; $166.9
(Table 1). The requested increase was mainly for
million enacted) supports BSEE’s development of
information technology (IT) modernization. P.L. 117-328
regulations and safety standards, review and approval of
provided $174.9 million, roughly even with the request
OCS operating permits, inspections of facilities and
(less than 1% difference) and 3% more than FY2022.
equipment, and oversight of operator safety programs,
among other activities. Most of BSEE’s requested increase
General Provisions
was for its renewable energy program.
Similar to previous Interior appropriations acts, P.L. 117-
328 included a general provision (Section 107) authorizing
The Environmental Enforcement activity ($5.5 million
BSEE to collect specified fees for inspections of offshore
FY2022; $5.9 million FY2023 request; $5.9 million
facilities. BSEE had requested that the fee amounts be
enacted) supports BSEE’s compliance with environmental
increased to account for inflation, but P.L. 117-328 did not
statutes and its oversight and enforcement of environmental
alter the fee amounts from recent years. BSEE had made a
compliance by operators on the OCS. BSEE’s requested
similar request in FY2022, which also was not adopted.
increase was for its renewable energy program.
Additional Reading
The activities for Administrative Operations ($18.8 million
For a broader overview of FY2023 Interior appropriations,
FY2022; $20.5 million FY2023 request; $19.3 million
see CRS Report R47253, Interior, Environment, and
enacted) and Executive Direction ($18.4 million FY2022;
Related Agencies: Overview of FY2023 Appropriations.
$18.8 million FY2023 request; $18.8 million enacted) fund
a range of administrative services as well as BSEE’s
Laura B. Comay, Specialist in Natural Resources Policy
executive offices. BSEE’s FY2023 request included
funding for zero-emission vehicles and the DOI-wide
IF12204
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Offshore Energy Agency Appropriations, FY2023

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