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October 10, 2024


Offshore Energy Agency Appropriations, FY2025


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 and considering certain
Biden Administration proposals.

On July 24, 2024, the House passed an FY2025 Interior
appropriations bill, H.R. 8998 (H.Rept. 118-581), with
funding for BOEM, BSEE,  and ONRR.  On  July 25, 2024,
the Senate Committee on Appropriations reported S. 4802
(S.Rept. 118-201) with FY2025 appropriations for the three
entities.

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 $242.0 million in total
budget authority for BOEM for FY2025 (Table 1). This


would be a 15% increase over total FY2024 budget
authority of $211.2 million provided in P.L. 118-42, the
Consolidated Appropriations Act, 2024. House-passed H.R.
8998 would provide $199.1 million in total FY2025 budget
authority for BOEM, 6% less than FY2024 and 18% less
than requested by the Administration. Senate committee-
reported S. 4802 would provide BOEM with total budget
authority of $216.0 million, 2% more than FY2024 and
11%  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 ($59.0 million FY2024
enacted; $67.5 million FY2025 requested; $60.0 million
H.R. 8998; $61.0 million S. 4802) funds administration of
oil and gas leasing, including development of five-year
leasing programs. BOEM's requested funding increase was
to maintain baseline capacity and develop an offshore
carbon sequestration program, as authorized in P.L. 117-58,
the Infrastructure Investment and Jobs Act (IIJA).

The Renewable  Energy activity ($41.1 million FY2024
enacted; $52.0 million FY2025 requested; $28.0 million
H.R. 8998; $41.9 million S. 4802) supports BOEM's
management  of renewable ocean energy resources.
BOEM's   requested changes were to maintain baseline
capacity, expedite permitting, increase tribal engagement,
advance wind energy leasing off U.S. territories, and
improve information management.

The Environmental Assessment  activity ($79.1 million
FY2024  enacted; $86.7 million FY2025 requested; $79.1
million H.R. 8998; $80.2 million S. 4802) supports
BOEM's   responsibilities for assessing the environmental
impacts of ocean energy activities to inform planning and
policy decisions. BOEM sought increases to maintain
baseline capacity, enhance its Environmental Studies
Program, support tribal co-stewardship, and develop an
offshore carbon sequestration program.


      Table I. BOEM,  BSEE,  and ONRR   Appropriations,  FY2024  and FY2025  ($ millions)
                          FY2024  Enacted  FY2025   House-Passed   House  Bill % Change Senate-Reported  Sen. Bill % Change
Agency                      (P.L. 118-42)  Request    H.R. 8998        from FY2024          S. 4802         from FY2024
BOEM  Total Budget Authority   211.2        242.0        199.1              -6%               216.0             +2%
BOEM  Net Appropriation         155.2       187.0        144.1              -7%               161.0             +4%
BSEE Total Budget Authority    220.4        252.6        220.4              -                 226.0             +3%
BSEE Net Appropriation          154.4       181.6        156.4             +1%                162.0             +5%
ONRR  Total Appropriation       167.9       176.0        I60.4              -4%               169.4             +1%
      Source and Notes: Data from House and Senate Appropriations Committees. Net appropriations reflect estimated reductions to
      discretionary appropriations from offsetting collections.

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