Offshore Wind Bill Sets 50 GW Goal, Mandates Labor Pacts, and Creates $10B Infrastructure Bank

The newly introduced Offshore Energy Modernization Act of 2025 is a massive piece of legislation designed to radically speed up the build-out of offshore renewable energy, primarily wind power. Think of it as the federal government putting a giant foot on the gas pedal for ocean wind farms.

This bill sets hard national targets for the Secretary of the Interior: they must authorize enough projects to generate at least 30 gigawatts (GW) of electricity by the end of 2030, jumping up to 50 GW by the end of 2035 (Sec. 2). For context, 50 GW is enough to power tens of millions of homes. To hit these numbers, the bill doesn't just ask nicely; it overhauls the entire process, impacting everything from labor rules to who pays for the transmission lines.

Clearing the Bureaucratic Traffic Jam

One of the biggest headaches for any major energy project is the permitting process. This bill tries to fix that by throwing money at the agencies responsible for the environmental reviews. The Bureau of Ocean Energy Management (BOEM) gets an extra $50 million and the National Oceanic and Atmospheric Administration (NOAA) gets $45 million for Fiscal Year 2026 (Sec. 5). This funding is specifically for hiring staff, conducting studies, and updating data systems. The idea is simple: if you hire enough people to read the environmental impact statements, you can make decisions faster. For anyone who drives a truck or manages a warehouse, this is like hiring more staff to process inventory—it cuts down on the wait time.

Labor, Local Content, and the Fine Print

If you work in construction or manufacturing, pay attention to Section 3. Starting January 1, 2027, any company that gets an offshore lease must sign a Project Labor Agreement (PLA) with a qualified union for the construction phase. This is a huge win for organized labor, ensuring high-wage standards and predictable work conditions. But the bill goes further: for construction starting after January 1, 2033, there are strict domestic content rules. All structural iron and steel must be U.S.-made, and at least 65% of the total cost of manufactured products must be sourced domestically (Sec. 3). This is designed to jumpstart a U.S. supply chain, meaning new factories and shipyard jobs. However, the Secretary can waive these rules if they raise the project cost by more than 25%—a provision that could become a loophole if not carefully monitored.

The $10 Billion Federal Transmission Bank

Perhaps the most controversial part is the creation of the Offshore Power Administration (OPA) within the Department of Energy (Sec. 7). This new federal agency is tasked with planning, building, and financing the massive transmission lines needed to bring offshore power to the grid. To do this, the Treasury is mandated to lend the OPA money whenever it’s needed, up to a total outstanding balance of $10 billion. Crucially, this loan authority is automatic and not subject to annual budget fights in Congress.

Here’s the kicker for taxpayers: if the OPA-built infrastructure reaches the end of its useful life, any remaining debt owed to the Treasury is completely forgiven. If the OPA studies a project that never gets built, that debt is also forgiven. While the OPA can only build if the Secretary finds that private developers and grid operators haven't cooperated adequately on shared infrastructure, this effectively creates a federally backed, zero-risk infrastructure bank. It’s a huge incentive to get wires in the water, but it also puts taxpayers on the hook for up to $10 billion in potential write-offs.

Who Pays for the Damage?

The bill acknowledges that these massive projects will impact other ocean users, particularly commercial fishers and coastal communities. To address this, it establishes the Offshore Renewable Energy Compensation Fund (Sec. 4). This fund is financed by taking 10% of all lease revenue (royalties, fees, etc.) and is used to pay verified claims for lost gear or income caused by the projects. It can also issue grants for mitigation, like funding new navigation technology for fishing fleets.

This is a direct mechanism for financial relief, which is good. However, if the fund runs low, the Secretary can require lease holders to pay an extra fee, up to $3 per acre, once per year, to cover the shortfall. Furthermore, while the bill guarantees that access for fishing, boating, and Tribal cultural activities must be maintained, it allows for temporary restrictions only during active construction or maintenance (Sec. 11). For a commercial fisher, even temporary restrictions during peak season can mean the difference between profit and loss, so how “temporary” these restrictions are in practice will matter a lot.