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September 1, 2022

Offshore Energy Agency Appropriations, FY2023

Three entities in the Department of the Interior (DOI) share
responsibility for managing the nation's ocean energy
resources on almost 2.5 billion acres of the U.S. outer
continental shelf (OCS). The Bureau of Ocean Energy
Management (BOEM) administers offshore energy leasing
and mineral development; the Bureau of Safety and
Environmental Enforcement (BSEE) oversees offshore
operational safety and environmental protection; and the
Office of Natural Resources Revenue (ONRR) manages
public revenues from federally regulated offshore and
onshore energy and natural resource projects. BOEM,
BSEE, and ONRR receive appropriations in the annual
Interior, Environment, and Related Agencies appropriations
bill. Issues include determining the aggregate and program-
level appropriations for each entity.
On July 1, 2022, the House Committee on Appropriations
reported an FY2023 Interior appropriations bill, H.R. 8262
(H.Rept. 117-400), with funding for BOEM, BSEE, and
ONRR. On July 20, 2022, the House passed H.R. 8294, a
consolidated appropriations bill with the same amounts for
the three entities. On July 28, 2022, S. 4686 was introduced
in the Senate with FY2023 appropriations for the three
entities. The Senate Appropriations Committee majority
released a related draft explanatory statement (DES).
Total budget authority for BOEM and BSEE includes both
discretionary appropriations and offsetting collections
derived from a portion of OCS rental receipts, cost-
recovery fees, and (for BSEE) inspection fees. The
discretionary appropriations for each fiscal year are reduced
by the amount of eligible fees and receipts collected, so that
the final amount appropriated to each agency is the net of
those collections. Discussions of account- and activity-level
funding in the sections below refer to total budget authority,
regardless of offsets. ONRR's funding does not include
offsetting collections.
BOEM Appropriations
The Biden Administration requested $237.4 million in total
budget authority for BOEM for FY2023 (Table 1). This

was a 15% increase over total FY2022 budget authority of
$206.7 million provided in P.L. 117-103, the Consolidated
Appropriations Act, 2022. House-passed H.R. 8294 would
provide $229.8 million in total FY2023 budget authority for
BOEM, 11% more than FY2022 and 3% less than requested
by the Administration. (This total includes a $1 million
general increase from a House floor amendment to support
wind energy development.) S. 4686 would provide BOEM
with total budget authority of $232.6 million, 12% more
than FY2022 and 2% less than the request.
BOEM's funding is contained in a single budget account,
titled Ocean Energy Management. Within this account, the
Conventional Energy activity ($60.5 million FY2022;
$61.5 million House-passed H.R. 8294; $63.6 million
FY2023 requested and S. 4686) funds administration of oil
and gas leasing, including development of five-year leasing
programs. BOEM requested reduced funding for execution
of the five-year program but increased funding for baseline
workforce capacity, fixed costs, and addressing issues
related to receipt of fair market value for offshore leases.
The Renewable Energy activity ($36.8 million FY2022;
$51.7 million FY2023 requested and House-passed H.R.
8294; $44.8 million S. 4686) supports BOEM's
management of renewable ocean energy resources. BOEM
requested added funding to extend its workforce capacity
and invest in research and stakeholder engagement, among
other purposes. Both the House committee report and the
Senate committee majority's DES direct BOEM to continue
close consultation with stakeholders such as the fishing
industry for offshore wind siting and permitting.
The Environmental Assessment activity ($79.8 million
FY2022; $86.4 million FY2023 requested; $84.4 million
House-passed H.R. 8294; $88.4 million S. 4686) supports
BOEM's responsibilities for assessing the environmental
impacts of ocean energy activities to inform planning and
policy decisions. BOEM's requested increase was primarily
for its Environmental Studies Program.

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%

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