Overview
Title
To provide for offshore wind energy development, and for other purposes.
ELI5 AI
The COLLABORATE Act is like a big teamwork plan to make windmills in the ocean to get energy, and it aims to fix how these windmills work with fish and the sea. It also wants to make sure everyone plays fair when getting the right to make these windmills and has money set aside to check how the ocean is doing with the windmills around.
Summary AI
S. 5441, named the COLLABORATE Act, aims to support offshore wind energy development in the U.S. by establishing regulatory frameworks and financial programs. The bill focuses on creating task forces for efficient planning and permitting processes, boosting offshore wind transmission and infrastructure, and ensuring coexistence with fisheries. It seeks to establish a compensation fund for fisheries affected by wind projects and support research on the environmental impacts of offshore wind energy. Additionally, it outlines pathways for State and Federal coordination to better integrate offshore wind energy into the national grid.
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AnalysisAI
The COLLABORATE Act is a proposed piece of legislation focusing on the development and regulation of offshore wind energy projects. Comprising several titles and sections, the bill aims to establish frameworks for the leadership and coordination of offshore wind initiatives, outline procedures for leasing and generating offshore wind energy, and integrate these activities with state and national energy policies. It further seeks to address the impact of wind energy development on fishing communities by creating funds and initiating research programs to ensure coexistence and mitigate adverse impacts.
General Summary of the Bill
The bill primarily deals with the establishment of structures and guidelines for offshore wind energy projects. It covers areas such as the coordination and leadership of wind projects, the process for leasing offshore land for wind energy purposes, and the planning and development of necessary transmission infrastructure. In addition, it addresses environmental and societal impacts through sections on research, cooperation with coastal states, and support for affected fisheries.
Summary of Significant Issues
The bill faces notable challenges, one of which is its complex name and acronym—the COLLABORATE Act—which may be difficult to remember and reference in discussions and communications. Additionally, the provision exempting area impact studies from being considered major actions under NEPA raises concerns, as it might bypass the depth of environmental evaluations typically required, potentially leading to environmental and legal issues.
The concept of ensuring a "fair return" to the United States within the context of offshore wind leasing is subjective and could be contentious, lacking clear criteria, which might lead to disputes during the lease bidding process. Similarly, the presence of multiple regional task forces might lead to redundancy and increased administrative costs without clear protocols for resolving conflicts. Another issue is the lack of detailed criteria for fund allocations between oil, gas, and offshore wind energy activities, raising potential issues of mismanagement.
Impact on the General Public
The legislation could affect the general public in a variety of ways. By facilitating the development of offshore wind energy, it aims to increase the availability of renewable energy sources, potentially leading to reduced carbon emissions and environmental benefits. However, concerns about the bill's potential to bypass thorough environmental evaluations might lead to unaddressed ecological impacts.
Additionally, the bill's mandates for leasing and energy distribution might influence energy prices or reliability in areas near these developments, thereby affecting consumers.
Impact on Specific Stakeholders
The bill is positioned to have significant impacts on specific groups, including the wind energy industry, environmental advocates, and fishing communities. For wind energy developers, the bill provides pathways and incentives to engage in long-term offshore projects, encouraging growth and investment in the sector. This is positive from an industry perspective, yet it requires adequate oversight to ensure these developments are sustainable and equitable.
From an environmental standpoint, the lack of comprehensive impact studies could be seen as a drawback, raising the possibility of negative consequences for marine ecosystems and coastal environments.
Fishing communities are provided some protective measures through compensation funds aimed at mitigating the impacts of offshore wind developments. However, the administration and equitable distribution of such funds could become complex, especially if the criteria remain unclear or if potential conflicts of interest are not adequately addressed.
In summary, the COLLABORATE Act is a robust legislative attempt to bolster offshore renewable energy efforts, addressing various facets from development to ecological impact. However, as constructed, it opens up issues of transparency, environmental oversight, and fair resource distribution that require thoughtful consideration to ensure balanced and responsible implementation.
Financial Assessment
The COLLABORATE Act includes several financial provisions related to offshore wind energy development, addressing appropriations, grants, and funds. Here is a detailed commentary on these aspects:
Spending and Appropriations
The Act outlines multiple areas where funds are authorized:
Capacity Grant Funding: Section 121 authorizes up to $25,000,000 annually from 2026 to 2030 for capacity grants to engage relevant individuals and entities in environmental reviews and permitting activities. At least 2% of this funding is earmarked for Indian Tribes and Tribal organizations.
Offshore Wind Transmission Research and Development:
- Section 131 includes an appropriation of $5,000,000 for fiscal year 2026 to support network-ready design standards for offshore equipment.
- It also allocates $100,000,000 for fiscal year 2026 for establishing the Center of Excellence for Multiterminal High-Voltage Direct Current Testing and Certification.
Furthermore, $100,000,000 per fiscal year from 2026 through 2030 is authorized for research and development of offshore wind transmission technology.
Offshore Wind Transmission Planning: Section 132 appropriates $100,000,000 annually from 2025 through 2030 to fund survey work and planning activities for offshore wind transmission corridors.
Fisheries Compensation and Coexistence Funds:
- Section 201 enables the use of up to $20,000,000 from the Offshore Wind Energy Fisheries Compensation Fund for mitigation grants.
The Offshore Wind and Fisheries Coexistence Fund (Section 204) is allocated $30,000,000 per year from 2025 to 2035 for grants supporting research and technology development to aid coexistence with wind projects.
Research on Fisheries Impacts: Section 203 authorizes $30,000,000 annually from 2025 through 2035 for grants focused on understanding the impacts of offshore wind energy on fisheries resources.
Relation to Identified Issues
Several issues intersect with the financial provisions outlined in the Act:
Complex Acronym Usage: While the "COLLABORATE Act" acronym is cumbersome, the clarity in funding specifics may ease some concerns, ensuring stakeholders know exactly how and where the funds are directed.
Environmental and Legal Concerns (NEPA): Though there are exemptions from NEPA, large sums of money, such as the $30,000,000 annually for fisheries impact research, aim to address potential environmental concerns proactively.
Fair Return Clause and Lease Bidding Process: The Act discusses "fair return to the United States" (Section 122) but lacks explicit financial benchmarks. This could result in discrepancies during lease bidding, though the bidding credit system indirectly impacts financial appropriations and requires careful management to prevent perceived unfairness.
Redundancy in Task Force Establishment and Related Costs: The establishment of multiple task forces could contribute to overlapping administrative costs. However, allocated funds across various sections aim to coordinate efforts and prevent redundancy.
Time Constraints on Agency Decisions: The time-bound decision-making process (150 days, Section 123) might pressure agencies but also indicates an efficient use of allocated resources to meet these tight timelines.
The financial references throughout the Act are substantial and suggest a comprehensive approach to integrate offshore wind energies in a manner that aligns with environmental, economic, and social priorities. Balancing these appropriations with the identified issues will be crucial in achieving the bill’s objectives efficiently and effectively.
Issues
The acronym 'COLLABORATE Act' in Section 1 is overly complex and may be difficult to remember or reference, which could impact public engagement and clarity in communication.
The provision in Section 121(v)(V) that exempts area impact studies from being considered a major Federal action under the National Environmental Policy Act (NEPA) raises concerns about bypassing thorough environmental reviews, potentially leading to environmental and legal challenges.
In Section 122(c)(4)(H), the concept of providing a 'fair return to the United States' is subjective and lacks explicit benchmarks, which could lead to disputes and perceptions of unfairness in the lease bidding process.
Section 202 lacks detailed criteria and guidelines for fund disbursement allocation between oil, gas, and offshore wind energy activities, potentially leading to mismanagement and disputes between stakeholders.
Section 141 does not clarify the financial implications of the amendments to the Outer Continental Shelf Lands Act, leaving potential costs unaddressed, which could impact legal proceedings and stakeholders.
The provision in Section 134 does not specify consequences if the Electric Reliability Organization fails to file the required reliability standard, which could affect the reliability and safety of offshore transmission systems.
In Section 111, the establishment of multiple regional offshore wind transmission task forces in addition to a national task force may lead to bureaucratic redundancy and increased administrative costs without clear mechanisms for conflict resolution.
Section 123 mandates a decision timeline of 150 days for all participating agencies, which might lead to rushed decisions and compromise comprehensive and thorough permit assessments.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title; table of contents Read Opens in new tab
Summary AI
The COLLABORATE Act outlines measures for the development and management of offshore wind energy, including leadership, leasing, and transmission planning, as well as integrating wind energy with coastal states. It also addresses the impact on fisheries by establishing funds and research programs to support fishermen and study the effects of offshore development.
101. Definitions Read Opens in new tab
Summary AI
The text provides definitions for terms used in the bill related to offshore wind energy and infrastructure. It clarifies roles, equipment, and areas involved in the development and transmission of offshore wind energy, including terms like "Administrator," "applicant," "offshore wind generation facility," and "outer Continental Shelf."
111. Offshore Wind Transmission Task Force Read Opens in new tab
Summary AI
The section establishes the Offshore Wind Transmission Task Force, which can be national or regional, to coordinate the development and siting of offshore wind transmission facilities. It includes members from various federal and state agencies, and Indian Tribes, and focuses on advising on preferred routes for transmission cables, evaluating transmission availability, and supporting domestic manufacturing and policies related to offshore wind energy.
121. Offshore wind generation and leasing Read Opens in new tab
Summary AI
The section outlines new guidelines for leasing offshore areas for wind energy. It includes defining key terms, establishing a five-year leasing plan with regular updates, involving liaisons to communicate with local groups and tribes, requiring environmental impact studies and public comments, and providing grants to aid community engagement. Additionally, it mandates that these wind energy projects consider power capacity, viability, and potential impacts on existing ocean uses, and that they incorporate compensation for affected fisheries.
Money References
- “(III) CAPACITY GRANT FUNDING.—There is authorized to be appropriated to the Secretary to carry out this clause $25,000,000 for each of fiscal years 2026 through 2030, of which not less than 2 percent shall be allocated each fiscal year for use by Indian Tribes and Tribal organizations.
122. Offshore wind lease auctions Read Opens in new tab
Summary AI
The section outlines the process for awarding offshore wind leases, allowing the Secretary to offer bidding credits for certain non-monetary commitments, such as supporting apprenticeship programs and environmental protection measures. It also sets a cap on these credits at 25% of the bid amount, ensures activities balance safety and environmental protection, designates project managers, and establishes site control for lease holders to submit grid connection requests.
123. Offshore wind permitting and authorizations Read Opens in new tab
Summary AI
The section discusses requirements for offshore wind energy project plans that must be reviewed and approved, specifying that the plans include a list of consulted agencies, meeting details, necessary permits, and feedback from affected groups. Additionally, all agencies are required to decide on pending permits within 150 days after the Secretary's decision, and state reviews for coastal zones should begin soon after a draft environmental impact statement is issued.
131. Offshore wind transmission research and development Read Opens in new tab
Summary AI
The bill directs the Secretary of Energy to develop voluntary design standards for offshore wind transmission, study the need for interoperable systems, and create a standard for equipment compatibility. It establishes a Center of Excellence for testing high-voltage direct current components and allocates funding for research and development of offshore wind transmission technology, including for testing, certification, and interoperability improvements.
Money References
- (D) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out the program $5,000,000 for fiscal year 2026, to remain available until expended.
- (3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $100,000,000 for fiscal year 2026, to remain available until expended.
- — (1) IN GENERAL.—Not later than 270 days after the date of enactment of this Act, the Secretary shall establish a program for, or modify an existing program to include, the research, development, demonstration, and deployment of offshore wind transmission technology, including with respect to— (A) high-voltage direct current technology; (B) offshore transmission, including floating transmission components; (C) transmission optimization through grid-enhancing technologies; and (D) capabilities of inverter-based resources, including to increase the reliability and resilience of offshore and onshore transmission and the needed models, data, and tools. (2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out the program established under paragraph (1) $100,000,000 for each of fiscal years 2026 through 2030. ---
132. Offshore wind transmission planning Read Opens in new tab
Summary AI
The section outlines a plan for identifying and reviewing routes for offshore wind transmission cables between wind facilities and onshore grids. It also designates these routes as "Offshore Wind Transmission Corridors," making them eligible for funding and assistance, and establishes a program to fund surveys to assess their feasibility, while clarifying that these actions aren't considered major Federal actions under NEPA.
Money References
- (iv) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary of Energy to carry out this subsection $100,000,000 for each of fiscal years 2025 through 2030.
133. Offshore wind transmission siting, permitting, and authorizations Read Opens in new tab
Summary AI
The bill assigns the Department of the Interior as the lead agency to coordinate Federal authorizations for offshore wind transmission facilities, requiring the establishment of deadlines and rules within 18 months to streamline the process. It also includes amendments to existing laws to regulate the issuance of leases, easements, and rights-of-way, allowing them to be granted competitively or noncompetitively as needed.
134. Reliability standards for offshore transmission Read Opens in new tab
Summary AI
The section outlines a requirement for the Federal Energy Regulatory Commission to direct the Electric Reliability Organization to create and submit a reliability standard for offshore transmission planning. This standard must address potential issues such as multiple undersea cable failures, complex power systems, and large energy generation setups.
135. Inclusion of offshore wind energy in interregional transmission planning Read Opens in new tab
Summary AI
The section requires the Federal Energy Regulatory Commission to ensure that any planning or rulemaking about interregional transmission includes the integration of offshore wind energy. This includes considering the costs, benefits, and reliability of linking offshore wind power with existing transmission systems, and it applies to public utility providers, regional organizations, and system operators involved in transmission planning.
136. Coastal State integration of offshore wind energy Read Opens in new tab
Summary AI
The section outlines amendments to the Public Utility Regulatory Policies Act of 1978, requiring coastal states to integrate offshore wind energy into their electricity systems. It sets guidelines for states to consider points of interconnection, update resource plans, and establish design standards, while detailing compliance timelines and applicability to U.S. territories and affiliated states.
141. Judicial review Read Opens in new tab
Summary AI
The section amends the Outer Continental Shelf Lands Act to include decisions about leases, easements, or construction plans under judicial review, which means that these actions can be challenged in court if the relevant action happens after the law takes effect. Actions filed before the law's enactment are not affected.
201. Offshore Wind Energy Fisheries Compensation Fund Read Opens in new tab
Summary AI
The bill establishes the Offshore Wind Energy Fisheries Compensation Fund to compensate those affected by offshore wind projects, like fishermen, for their losses. It requires wind energy developers to contribute to the fund, which will be used to process claims for damages, exclude certain types of damage, and handle insufficient fund situations, while also allowing grants for safety and other mitigation efforts. An advisory group will guide the fund's administration, and a report on activities will be submitted annually.
Money References
- “(2) MITIGATION GRANTS.—If the Secretary of Commerce determines that there are sufficient amounts in a geographic area account of the Fund, as described in subsection (a)(6), to provide payments for all verified claims at any given time, the Secretary may use not more than $20,000,000 of amounts in the geographic area account of the Fund that are in excess of the amount necessary to provide payments for all verified claims to provide grants to eligible recipients, and other entities determined appropriate by the Secretary, to mitigate the potential effects of development of an offshore wind energy project, including by paying for gear modifications, navigation technology improvements, and other measures, including training, to enhance safety.
- “(2) LIMIT.—No holder of an offshore wind energy lease shall be required to pay an amount under paragraph (1) that is in excess of $3 per acre per year of the leased area.
34. Offshore Wind Energy Fisheries Compensation Fund Read Opens in new tab
Summary AI
The Offshore Wind Energy Fisheries Compensation Fund is created to compensate communities and organizations for losses due to offshore wind projects affecting their fishing areas. The fund is supported by contributions from wind lease holders and is managed by the Secretary of Commerce, who distributes payments for verified claims and ensures transparency and fairness. States can participate in the fund voluntarily, and there are specific guidelines on how the money can be invested and used for claims and grants. Additionally, an advisory group will help offer suggestions for the fund's management, and annual reports will provide updates on its activities.
Money References
- (2) MITIGATION GRANTS.—If the Secretary of Commerce determines that there are sufficient amounts in a geographic area account of the Fund, as described in subsection (a)(6), to provide payments for all verified claims at any given time, the Secretary may use not more than $20,000,000 of amounts in the geographic area account of the Fund that are in excess of the amount necessary to provide payments for all verified claims to provide grants to eligible recipients, and other entities determined appropriate by the Secretary, to mitigate the potential effects of development of an offshore wind energy project, including by paying for gear modifications, navigation technology improvements, and other measures, including training, to enhance safety.
- (2) LIMIT.—No holder of an offshore wind energy lease shall be required to pay an amount under paragraph (1) that is in excess of $3 per acre per year of the leased area.
202. Fishermen's Contingency Fund Read Opens in new tab
Summary AI
The section amends several parts of the Outer Continental Shelf Lands Act Amendments of 1978 to include offshore wind energy, with changes encompassing updated definitions, payment guidelines, and responsibilities for leaseholders and the Secretary. The amendments ensure separate allocation of funds and responsibilities for oil, gas, and offshore wind energy activities.
401. Definitions Read Opens in new tab
Summary AI
The section labeled "SEC. 401. Definitions" indicates that it will explain the meanings of specific terms used in this part of the document.
203. Grant program for research on the impacts of offshore wind development on fisheries resources Read Opens in new tab
Summary AI
The bill establishes a grant program managed by the Secretary of Commerce in consultation with the Secretary of the Interior to fund research on the impact of offshore wind energy on fisheries and marine ecosystems. The program emphasizes including fishermen in the research process, making data publicly accessible, and covers topics such as the environmental and socioeconomic effects of wind farms, requiring a total authorization of $30 million annually from 2025 to 2035.
Money References
- (f) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $30,000,000 for each of fiscal years 2025 through 2035, to remain available until expended.
204. Offshore Wind and Fisheries Coexistence Fund Read Opens in new tab
Summary AI
The Offshore Wind and Fisheries Coexistence Fund is created to support the coexistence of offshore wind energy and ocean activities like fishing. It provides grants for research and development, prioritizing collaborative projects, with a portion reserved for Indian Tribes, and is funded with $30 million annually from 2025 to 2035.
Money References
- (c) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $30,000,000 for each of fiscal years 2025 through 2035, to be deposited in the Fund, to remain available until expended.