To promote the Sensible Development of Renewable Energy in the Waters of the Coastal Zone, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coastal Zone Renewable Energy 
Promotion Act of 2003''.

SEC. 2. FINDINGS; PURPOSES AND OBJECTIVES.

    (a) Findings.--The Congress finds that--
            (1) There is an increasing need for the production of 
        electricity from energy facilities that use renewable resources 
        and some of these facilities may be located in waters under the 
        jurisdiction of the United States, including the coastal zone;
            (2) Energy companies have already sought to construct 
        energy facilities in State and Federal waters that will use 
        renewable wind energy resources;
            (3) Nationwide there are more than 50 proposals to 
        construct and operate ``wind farms'' for producing electricity 
        in State and Federal waters, and some of these proposals 
        include anchoring more than five hundred wind towers to the 
        ocean seabed within sight of land;
            (4) Existing Federal and State law does not provide a 
        process to address the unique issues raised by proposals to 
        locate energy facilities for renewable resources in the marine 
        environment, thereby hindering or jeopardizing sensible 
        development of these renewable energy resources; and
            (5) New Federal and State policies are needed to ensure the 
        timely and sensible development of renewable energy resources 
        that are accessible in the marine environment and to provide a 
        mechanism to resolve the significant public trust issues 
        involved in resource allocation and multiple uses in the marine 
        environment.
    (b) Purposes and Objectives.--The purposes and objectives of this 
Act are to--
            (1) promote the sensible development of energy facilities 
        that use renewable energy resources in the marine environment 
        by authorizing the Secretary of Commerce to establish a 
        licensing regime and permitting process to ensure due 
        consideration of the public trust issues involved in resource 
        allocation, multiple use, and impacts on the marine 
        environment;
            (2) direct the Secretary of Commerce, acting through the 
        Administrator of the National Oceanic and Atmospheric 
        Administration (NOAA), to use NOAA's expertise about the marine 
        environment and coastal zone to develop new Federal rules and 
        regulations to authorize and govern the sensible development of 
        renewable energy resources in a manner that provides for public 
        safety, safe navigation, protection of the marine environment, 
        prevention of waste, conservation of natural resources, access 
        to important commercial and recreational fishing areas, the 
        protection of correlative rights, protection of national 
        security interests, and payments to the Federal Government for 
        constructing and operating renewable energy facilities in 
        waters under the jurisdiction of the United States seaward of 
        the coastal zone; and
            (3) encourage coastal States to amend their coastal zone 
        management plans to include policies and procedures that 
        address--
                    (A) issues arising from the location in the marine 
                environment of energy facilities that utilize renewable 
                energy sources;
                    (B) conflicting and competing resource allocation 
                and multiple use issues; and
                    (C) any adverse impacts from such facilities on the 
                marine environment, commercial and recreational fishing 
                and other activities, the boating community and 
                aesthetic, cultural and historic values.

SEC. 3. DEFINITIONS; EFFECTIVE DATE.

    (a) Definitions.--
            (1) Except where provided otherwise, any term used in this 
        Act that is defined in the Coastal Zone Management Act of 1972 
        (16 U.S.C. 1453 et seq.) shall have the same meaning as 
        provided in that Act (as amended by this Act).
            (2) Section 304 of the Coastal Zone Management Act of 1972 
        (16 U.S.C. 1453) is amended by--
                    (A) renumbering paragraphs (16) through (18) as 
                paragraphs (18) through (20), respectively;
                    (B) inserting after paragraph (15) the following 
                new paragraphs--
            ``(16) The term `renewable energy facility' means any 
        equipment or facility which is or will be used primarily--
                    ``(A) in the development, production, conversion, 
                storage, transfer, processing, or transportation of any 
                renewable energy resource; or
                    ``(B) for the manufacture, production, or assembly 
                of equipment, machinery, products, or devices which are 
                involved in any activity described in subparagraph (A).
            ``(17) The term `renewable energy resource' means a source 
        of energy that is regenerative and is produced without 
        depleting or otherwise diminishing the resource from which such 
        energy is derived. Such term includes, but is not limited to, 
        solar, thermal, and wind energy sources.''; and
                    (C) inserting after paragraph (20) (as renumbered 
                by subparagraph (A)) the following new paragraph:
            ``(21) The term `wind energy facility' means a facility or 
        equipment that converts the kinetic energy of wind into 
        electricity. Such term includes all necessary components for 
        the generation and transmission of such wind energy.''.
    (b) Effective Date.--The amendments made to the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1451 et seq.) by this Act shall be 
effective on the date of enactment of this Act.

                   TITLE I--COASTAL STATE MANAGEMENT

SEC. 101. COASTAL ZONE ENHANCEMENT OBJECTIVES.

    Section 309 of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1456b) is amended--
            (1) in subsection (a) by inserting at the end the following 
        new paragraph--
            ``(8) The procedures and enforceable policies adopted to 
        facilitate the location of renewable energy facilities in the 
        marine environment, including any wind energy facility, shall, 
        among other things--
                    ``(A) identify priority locations for renewable 
                energy facilities in the coastal zone;
                    ``(B) ensure continued access to commercial and 
                recreational fishing areas, including shellfish beds;
                    ``(C) include an environmental review of the 
                potential impacts on--
                            ``(i) marine mammals and endangered species 
                        and their designated critical habitat;
                            ``(ii) birds;
                            ``(iii) the marine environment including 
                        the seabed;
                            ``(iv) aesthetic, cultural and historical 
                        resource values; and
                            ``(v) the cumulative impacts of multiple 
                        renewable energy facilities;
                    ``(D) evaluate navigational and public safety 
                concerns, including but not limited to aviation safety, 
                and ensure continued access to important traditional 
                recreational boating areas;
                    ``(E) include obligations for the payment of funds 
                necessary to pay for the decommissioning and removal of 
                renewable energy facilities;
                    ``(F) include an assessment of the need for the 
                energy produced by renewable energy facilities; and
                    ``(G) take into account national security 
                interests.'';
            (2) in subsection (c) by inserting at the end the following 
        new sentence: ``In making funding decisions, the Secretary 
        shall give special consideration to those proposals for 
        management program changes related to the implementation of the 
        objectives identified in paragraph (a)(8) in States with 
        pending renewable energy facility proposals.''.

           TITLE II--FEDERAL MARINE RENEWABLE ENERGY PROGRAM

SEC. 201. LICENSE FOR THE OPERATION OF RENEWABLE ENERGY FACILITIES IN 
              WATERS UNDER THE JURISDICTION OF THE UNITED STATES 
              SEAWARD OF THE COASTAL ZONE.

    The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) is 
amended by adding at the end the following new section--

``SEC. 314. RENEWABLE ENERGY FACILITIES.

    ``(a) License Requirement.--No person may construct or operate a 
renewable energy facility in waters under the jurisdiction of the 
United States seaward of the coastal zone except in accordance with a 
license issued pursuant to this section.
    ``(b) Letter of Intent, Public Notice and Request for Proposals.--
            ``(1) Any person who seeks to apply for a license under 
        this section shall notify the Secretary in writing of their 
        intent to apply for a license under this section. A letter of 
        intent shall include, at a minimum, a description of the 
        proposed renewable energy facility, the specific location where 
        the applicant proposes to construct the facility, the proposed 
        timeframe for construction and operation of the facility and 
        the names of the applicant, owners and operators of the 
        proposed facility.
            ``(2) Within 30 days of receipt of a letter of intent, the 
        Secretary shall publish in the Federal Register notice 
        containing the requirements for a license application in the 
        area identified in the notice issued under paragraph (2), and a 
        request for proposals from all persons who seek a license to 
        construct and operate a renewable energy facility in the same 
        location. The Secretary shall determine the time within which 
        proposals must be submitted, but shall not set the submission 
        date less than 60 days from the date notice is published in the 
        Federal Register.
    ``(c) Public Interest Evaluation.--In evaluating applications 
received under this section, the Secretary shall consider the amount of 
energy the proposed project will produce, the economic impact to the 
region where the facility will be located, the environmental impacts of 
the proposed facility, the displacement of competing uses of the 
proposed site and other relevant factors to determine which proposed 
project best serves the public interest.
    ``(d) License Issuance Prerequisites.--The Secretary may only issue 
a license under this section after the Secretary determines that--
            ``(1) based on recommendations from the Secretary of 
        Defense, the facility will be consistent with national security 
        needs;
            ``(2) based on recommendations from the Corps of Engineers 
        and the Coast Guard, the facility will not create an 
        obstruction to navigation;
            ``(3) the application is consistent with the approved 
        management programs of affected states;
            ``(4) construction or operation of the facility will not 
        unduly restrict access to commercial and recreational fishing 
        areas, including shellfish beds, and recreational boating 
        areas;
            ``(5) the facility will not adversely affect marine 
        mammals, threatened or endangered species, migratory birds, or 
        designated critical habitat;
            ``(6) construction or operation of the facility will not 
        adversely affect aesthetic, cultural, or historical resources 
        recognized or protected under Federal law or the laws of the 
        affected coastal States;
            ``(7) after consultation with the Secretary of 
        Transportation, that the renewable energy facility does not 
        pose a threat to aviation safety;
            ``(8) as a result of the Environmental Impact Statement, 
        the facility can be constructed or operated in a manner that 
        minimizes any adverse impact on the marine environment, 
        including the seabed and any other natural resources;
            ``(9) after consultation with the Secretary of Energy, that 
        the electricity that will be produced by the facility is 
        needed;
            ``(10) the location of the facility is not within the 
        boundaries of a National Marine Sanctuary or Marine Protected 
        Area;
            ``(11) the applicant will pay the fees required in the 
        application; and
            ``(12) the application was determined by the Secretary 
        under subsection (c) to best serve the public interest.
    ``(e) License Terms and Conditions.--
            ``(1) In issuing a license for the construction and 
        operation of a renewable energy facility the Secretary shall 
        prescribe the conditions necessary to carry out the provisions 
        of this Act and any other law, and such license shall only be 
        issued if the applicant agrees to comply with the conditions 
        the Secretary may prescribe in accordance with the provisions 
        of this Act.
            ``(2) No license issued under this section may be sold, 
        transferred, or materially changed in any other manner without 
        the prior written approval of the Secretary. The Secretary 
        shall ensure that any such sale, transfer or change is 
        consistent with the management plans of affected coastal States 
        before issuing an approval.
            ``(3) The Secretary shall establish such bonding 
        requirements or other assurances as may be necessary to assure 
        that, upon revocation, termination, relinquishment, 
        abandonment, transfer, sale, or surrender of the license, the 
        licensee will dispose of or remove all components of the 
        renewable energy facility as directed by the Secretary. The 
        Secretary may waive the disposal or removal requirements for 
        any submerged component of the renewable energy facility on or 
        below the seabed if he finds that such removal is not otherwise 
        necessary and that such component does not constitute a threat 
        to the environment, or impede navigation, fishing, or use of 
        the seabed.
    ``(f) Hearing and Public Comment.--The Secretary may issue a 
license under this section only after public notice and opportunity for 
comment, and after conducting during the comment period at least one 
public hearing in the coastal area affected by the facility for which a 
license is proposed to be issued.
    ``(g) Fees and Royalties.--The Secretary shall require the payment 
of an application fee when a completed license application is accepted 
in an amount sufficient to cover the administrative expenses of 
processing the application. The Secretary shall also, after notice and 
public comment, establish an annual royalty fee to be paid by the 
holder of a license issued pursuant to this section during any year in 
which electricity is produced under such license. To the extent 
practicable, the Secretary shall set the royalty fee to recoup the 
market value of the site for use as a renewable energy facility, taking 
into account the size of the facility, any impacts on the marine 
environment and other natural resources, the amount of electricity 
produced, the value of the site to competing uses, whether or not the 
renewable energy facility is located in a priority area and any other 
relevant factors; provided, however, that the Secretary may set a 
royalty fee at less than market value if he determines that it is 
necessary and appropriate to encourage (a) small-scale developers; (b) 
reduced environmental impacts, or (c) the siting of renewable energy 
facilities in designated priority areas. Royalty fees and impact fees 
assessed under subsection (b) shall be deposited in the Coastal Zone 
Management Fund established under section 309.
    ``(h) No Right or Title.--No provision of this Act or any other law 
shall be construed to limit the authority of the Secretary to terminate 
or limit, without compensation to the holder, any license issued 
pursuant to this section if the Secretary determines that such 
termination or limitation is necessary to further the purposes of this 
Act or to implement or enforce this Act or any other law.''.

SEC. 202. PRIORITY SITE IDENTIFICATION AND EVALUATION.

    (a) Priority Site Identification and Evaluation.--To accelerate the 
sensible development of renewable energy facilities in the marine 
environment, the Secretary shall immediately begin to identify, list, 
and evaluate those locations within the marine waters under the 
jurisdiction of the United States seaward of the coastal zone that have 
the greatest potential, consistent with this Act and section 309(a)(8) 
of the Coastal Zone Management Act of 1972, as added by section 101 of 
this Act, for producing energy from renewable energy facilities. In 
identifying and listing these priority areas the Secretary shall 
consult with the Secretary of Energy, the Coast Guard, the 
Administrator of the Environmental Protection Agency, affected coastal 
states and other public and private institutions and companies with 
relevant expertise. In evaluating potential sites to be listed, the 
Secretary shall, to the maximum extent possible, consult with the 
Office of Energy Efficiency and Renewable Energy and the National 
Renewable Energy Laboratory of the Department of Energy.
    (b) Preference for Priority Sites.--The Secretary may not approve 
an application filed under section 314 of the Coastal Zone Management 
Act of 1972, as added by section 201 of this Act, that proposes to 
construct and operate a renewable energy facility outside the 
boundaries of a site identified under subsection (a) unless the 
Secretary determines, in writing, that the location of the proposed 
facility otherwise satisfies the criteria used in designating priority 
sites under section 202(a) of this Act.

SEC. 203. REGULATIONS AND OTHER LAWS.

    (a) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out the purposes and objectives of this Act 
within 12 months after the date of enactment of this Act.
    (b) Savings Clause.--Nothing in this Act shall be construed to 
displace, supercede, limit, or modify the jurisdiction, responsibility, 
or authority of any Federal or State agency under any other Federal 
law.

Summary: Coastal Zone Renewable Energy Promotion Act of 2003 - Amends the Coastal Zone Management Act of 1972 to expand statutory procedures and policies for the location of renewable energy facilities in the marine environment. Prescribes licensing requirements for the operation of renewable energy facilities in waters under Federal jurisdiction seaward of the coastal zone. Instructs the Secretary of Commerce immediately to identify and evaluate locations within such waters that have the greatest potential for producing energy from renewable energy facilities.