Offshore Wind Provisions in the Inflation Reduction Act (CRS Report for Congress)
| Release Date |
Revised Oct. 22, 2024 |
| Report Number |
IN11980 |
| Report Type |
Insight |
| Authors |
Laura B. Comay, Corrie E. Clark, Molly F. Sherlock |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
P.L. 117-169, commonly known as the Inflation Reduction Act of 2022 (IRA), addressed U.S. offshore
wind development with provisions on leasing, transmission planning, and tax credits. Congress and the
Administration have undertaken multiple activities in response to these provisions.
Leasing Authority. Section 50265 of the IRA sets limits on the Department of the Interior’s (DOI’s)
authority to issue offshore wind leases. During the 10-year period following the IRA’s enactment, DOI’s
Bureau of Ocean Energy Management (BOEM) may not issue a lease for offshore wind development
unless the agency has offered at least 60 million acres for oil and gas leasing on the outer continental shelf
(OCS) in the previous year. This could affect future federal offshore wind leasing. BOEM’s 2024-2029
offshore oil and gas leasing program scheduled three oil and gas lease sales of sufficient acreage to satisfy
the IRA wind leasing criterion—in 2025, 2027, and 2029. Because other years would not have a
qualifying oil and gas lease sale, BOEM would be prohibited from issuing offshore wind leases during
some periods. In the 118th Congress, bills such as H.R. 5616 and S. 4753 would require additional oil and
gas lease sales, which could open more opportunities for offshore wind leasing under the IRA. H.R. 4936
and S. 3026 would repeal the IRA’s requirement that a qualifying offshore oil and gas sale must be held in
order for offshore wind leasing to be authorized.
Wind Leasing in the Mid- to South Atlantic and Eastern Gulf of Mexico. On September 8 and
September 25, 2020, President Trump withdrew from energy leasing disposition—from July 2022 through
June 2032—areas off the coasts of North Carolina, South Carolina, Georgia, and Florida in the Atlantic
and off of Florida in the Gulf of Mexico. President Biden announced his Administration’s interest in
furthering offshore wind leasing in the withdrawn areas. Section 50251(a) of the IRA authorizes the
Secretary of the Interior to issue renewable energy leases in these areas despite the presidential
withdrawal. Oil and gas leasing remains prohibited in these areas. In the 118th Congress, H.R. 970 and S.
279 would reinstitute the prohibition on offshore wind leasing in the Eastern Gulf of Mexico through June
2032.
Offshore Wind for U.S. Territories. IRA Section 50251(b) amends definitions of the OCS in the Outer
Continental Shelf Lands Act to include specified submerged lands adjacent to U.S. territories. The IRA
directs the Secretary of the Interior to issue calls for interest in offshore wind leasing off territorial coasts
and authorizes wind lease sales in areas deemed feasible and of interest, after the Secretary has consulted
with the territorial governor. In April 2024 hearing testimony, DOI stated that BOEM had “started to
engage with territorial governors” on potential offshore wind development for Puerto Rico, Guam, and
the U.S. Virgin Islands. In June 2024, BOEM issued a request for statements of interest and a request for
information related to offshore wind leasing off U.S. territories.
