II 

112TH CONGRESS 

1ST SESSION S. 1775 

To promote the development of renewable energy on public lands, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 1, 2011 

Mr. TESTER (for himself, Mr. RISCH, Mr. REID, Mr. UDALL of Colorado, and 

Mr. HELLER) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To promote the development of renewable energy on public 

lands, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Public Lands Renewable Energy Development Act of 

6 2011’’. 

7 (1) TABLE OF CONTENTS.—The table of con8 tents for this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—GEOTHERMAL ENERGY 


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Sec. 101. Extension of funding for implementation of Geothermal Steam Act of 

1970. 

TITLE II—DEVELOPMENT OF SOLAR AND WIND ENERGY ON 

PUBLIC LAND 

Sec. 201. Definitions. 

Sec. 202. Programmatic environmental impact statements and land use planning. 

Sec. 203. Development of solar and wind energy on public land. 

Sec. 204. Disposition of revenues. 

Sec. 205. Royalties. 

Sec. 206. Enforcement of royalty and payment provisions. 

Sec. 207. Enforcement. 

Sec. 208. Segregation from appropriation under mining and Federal land laws. 

Sec. 209. Report. 

Sec. 210. Applicability of law. 

1 TITLE I—GEOTHERMAL ENERGY 

2 SEC. 101. EXTENSION OF FUNDING FOR IMPLEMENTATION 

3 OF GEOTHERMAL STEAM ACT OF 1970. 

4 (a) IN GENERAL.—Section 234(a) of the Energy Pol5 icy Act of 2005 (42 U.S.C. 15873(a)) is amended by strik6 ing ‘‘in the first 5 fiscal years beginning after the date 

7 of enactment of this Act’’ and inserting ‘‘through fiscal 

8 year 2020’’. 

9 (b) AUTHORIZATION.—Section 234(b) of the Energy 

10 Policy Act of 2005 (42 U.S.C. 15873(b)) is amended— 

11 (1) by striking ‘‘Amounts’’ and inserting the 

12 following: 

13 ‘‘(1) IN GENERAL.—Amounts’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(2) AUTHORIZATION.—Effective for fiscal year 

16 2011 and each fiscal year thereafter, amounts de17 posited under subsection (a) shall be available to the 


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1 Secretary of the Interior for expenditure, subject to 

2 appropriation and without fiscal year limitation, to 

3 implement the Geothermal Steam Act of 1970 (30 

4 U.S.C. 1001 et seq.) and this Act.’’. 

5 TITLE II—DEVELOPMENT OF 

6 SOLAR AND WIND ENERGY ON 

7 PUBLIC LAND 

8 SEC. 201. DEFINITIONS. 

9 In this title: 

10 (1) COVERED LAND.—The term ‘‘covered land’’ 

11 means land that is— 

12 (A)(i) public land administered by the Sec13 retary; or 

14 (ii) National Forest System land adminis15 tered by the Secretary of Agriculture; and 

16 (B) not excluded from the development of 

17 solar or wind energy under— 

18 (i) a land use plan established under 

19 the Federal Land Policy and Management 

20 Act of 1976 (43 U.S.C. 1701 et seq.); 

21 (ii) a land use plan established under 

22 the National Forest Management Act of 

23 1976 (16 U.S.C. 1600 et seq.); or 

24 (iii) other law. 


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1 (2) PILOT PROGRAM.—The term ‘‘pilot pro2 gram’’ means the wind and solar leasing pilot pro3 gram established under section 204(a). 

4 (3) PUBLIC LAND.—The term ‘‘public land’’ 

5 has the meaning given the term ‘‘public lands’’ in 

6 section 103 of the Federal Land Policy and Manage7 ment Act of 1976 (43 U.S.C. 1702). 

8 (4) SECRETARIES.—The term ‘‘Secretaries’’ 

9 means— 

10 (A) in the case of public land administered 

11 by the Secretary, the Secretary; and 

12 (B) in the case of National Forest System 

13 land administered by the Secretary of Agri14 culture, the Secretary of Agriculture. 

15 (5) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of the Interior. 

17 SEC. 202. PROGRAMMATIC ENVIRONMENTAL IMPACT 

18 STATEMENTS AND LAND USE PLANNING. 

19 (a) PUBLIC LAND.—Not later than 1 year after the 

20 date of enactment of this Act, the Secretary shall— 

21 (1) complete and finalize the Programmatic En22 vironmental Impact Statement for Solar Energy De23 velopment in Six Southwestern States (BLM/DES 

24 10–59; DOE/EIS–0403) in accordance with the NaVerDate Mar 15 2010 02:00 Nov 03, 2011 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1775.IS S1775

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1 tional Environmental Policy Act of 1969 (42 U.S.C. 

2 4321 et seq.) to analyze the potential impacts of— 

3 (A) a program to develop solar energy on 

4 land administered by the Secretary, acting 

5 through the Bureau of Land Management; and 

6 (B) any necessary amendments to land use 

7 plans for the land; and 

8 (2) amend any land use plans as appropriate to 

9 provide for the development of renewable energy in 

10 areas considered appropriate by the Secretary. 

11 (b) NATIONAL FOREST SYSTEM LAND.—As soon as 

12 practicable but not later than 2 years after the date of 

13 enactment of this Act, the Secretary of Agriculture shall— 

14 (1) prepare and publish in the Federal Register 

15 a notice of intent to prepare a programmatic envi16 ronmental impact statement in accordance with the 

17 National Environmental Policy Act of 1969 (42 

18 U.S.C. 4321 et seq.) to analyze the potential im19 pacts of— 

20 (A) a program to develop solar and wind 

21 energy on National Forest System land admin22 istered by the Secretary of Agriculture; and 

23 (B) any necessary amendments to land use 

24 plans for the land; and 


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1 (2) amend any land use plans as appropriate to 

2 provide for the development of renewable energy in 

3 areas considered appropriate by the Secretary of Ag4 riculture immediately on completion of the pro5 grammatic environmental impact statement. 

6 (c) EFFECT ON PROCESSING APPLICATIONS.—The 

7 requirement for completion of programmatic environ8 mental impact statements under this section shall not re9 sult in any delay in processing or approving applications 

10 for wind or solar development on public land administered 

11 by the Secretary or on National Forest System land. 

12 (d) MILITARY INSTALLATIONS.— 

13 (1) REPORT.— 

14 (A) IN GENERAL.—Not later than 2 years 

15 after the date of enactment of this Act, the Sec16 retary of Defense, in consultation with the Sec17 retary of the Interior, shall conduct a study, 

18 and prepare a report, that— 

19 (i) identifies locations on land with20 drawn from the public domain and re21 served for military purposes that— 

22 (I) exhibit a high potential for 

23 solar, wind, geothermal, or other re24 newable energy production; 


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1 (II) are disturbed or otherwise 

2 have comparatively low value for other 

3 resources; and 

4 (III) could be developed for re5 newable energy production in a man6 ner consistent with all present and 

7 reasonably foreseeable military train8 ing and operational missions and re9 search, development, testing, and eval10 uation requirements; and 

11 (ii) describes the administration of 

12 public land withdrawn for military pur13 poses for the development of commercial14 scale renewable energy projects, including 

15 the legal authorities governing authoriza16 tion for that use. 

17 (B) RECOMMENDATIONS.—The report 

18 shall include recommendations on— 

19 (i) necessary changes in any law (in20 cluding regulations); 

21 (ii) whether the authorization for the 

22 use of the land for development of renew23 able energy projects should be pursuant to 

24 lease, contract, right-of-way, permit, or 

25 other form of authorization; 


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1 (iii) methods of improving coordina2 tion among the Federal, State, and local 

3 agencies, if any, involved in authorizing the 

4 projects; and 

5 (iv) disposition of revenues resulting 

6 from the development of renewable energy 

7 projects on the land. 

8 (2) ENVIRONMENTAL IMPACT ANALYSIS.—Not 

9 later than 1 year after the completion of the study 

10 required by paragraph (1), the Secretary of Defense, 

11 in consultation with the Secretary of the Interior, 

12 shall prepare and publish in the Federal Register a 

13 notice of intent to prepare an environmental impact 

14 analysis document to support a program to develop 

15 renewable energy on withdrawn military land identi16 fied in the study as suitable for the production. 

17 (3) REPORTS.—On completion of the report, 

18 the Secretary and the Secretary of Defense shall 

19 jointly submit the report required by paragraph (1) 

20 to— 

21 (A) the Committee on Armed Services of 

22 the Senate; 

23 (B) the Committee on Energy and Natural 

24 Resources of the Senate; 


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1 (C) the Committee on Armed Services of 

2 the House of Representatives; and 

3 (D) the Committee on Natural Resources 

4 of the House of Representatives. 

5 SEC. 203. DEVELOPMENT OF SOLAR AND WIND ENERGY ON 

6 PUBLIC LAND. 

7 (a) PILOT PROGRAM.— 

8 (1) IN GENERAL.—Not later than 180 days 

9 after the date of enactment of this Act, the Sec10 retary shall establish a wind and solar leasing pilot 

11 program on covered land administered by the Sec12 retary. 

13 (2) SELECTION OF SITES.— 

14 (A) IN GENERAL.—Not later than 90 days 

15 after the date the pilot program is established 

16 under this subsection, the Secretary shall (tak17 ing into consideration the multiple resource val18 ues of the land) select 2 sites that are appro19 priate for the development of a solar energy 

20 project, and 2 sites that are appropriate for the 

21 development of a wind energy project, on cov22 ered land administered by the Secretary as part 

23 of the pilot program. 


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1 (B) SITE SELECTION.—In carrying out 

2 subparagraph (A), the Secretary shall seek to 

3 select sites— 

4 (i) for which there is likely to be a 

5 high level of industry interest; 

6 (ii) that have a comparatively low 

7 value for other resources; and 

8 (iii) that are representative of sites on 

9 which solar or wind energy is likely to be 

10 developed on covered land. 

11 (C) INELIGIBLE SITES.—The Secretary 

12 shall not select as part of the pilot program any 

13 site for which a right-of way for site testing or 

14 construction has been issued. 

15 (3) QUALIFICATIONS.—Prior to any lease sale, 

16 the Secretary shall establish qualifications for bid17 ders that ensure bidders— 

18 (A) are able to expeditiously develop a 

19 wind or solar energy project on the site for 

20 lease; 

21 (B) possess— 

22 (i) financial resources necessary to 

23 complete a project; 

24 (ii) knowledge of the applicable tech25 nology; and 


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1 (iii) such other qualifications as are 

2 determined appropriate by the Secretary; 

3 and 

4 (C) meet the eligibility requirements for 

5 leasing under the first section of the Mineral 

6 Leasing Act (30 U.S.C. 181). 

7 (4) LEASE SALES.— 

8 (A) IN GENERAL.—Except as provided in 

9 subparagraph (D)(ii), not later than 180 days 

10 after the date sites are selected under para11 graph (2), the Secretary shall offer each site for 

12 competitive leasing to qualified bidders under 

13 such terms and conditions as are required by 

14 the Secretary. 

15 (B) BIDDING SYSTEMS.— 

16 (i) IN GENERAL.—In offering the sites 

17 for lease, the Secretary may vary the bid18 ding systems to be used at each lease sale, 

19 including— 

20 (I) cash bonus bids with a re21 quirement for payment of the royalty 

22 established under this Act; 

23 (II) variable royalty bids based 

24 on a percentage of the gross proceeds 

25 from the sale of electricity produced 


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1 from the lease, except that the royalty 

2 shall not be less than the royalty re3 quired under this Act, together with a 

4 fixed cash bonus; and 

5 (III) such other bidding system 

6 as ensures a fair return to the public 

7 consistent with the royalty established 

8 under this Act. 

9 (ii) ROUND.—The Secretary shall 

10 limit bidding to 1 round in any lease sale. 

11 (iii) EXPENDITURES.—In any case in 

12 which the land that is subject to lease has 

13 1 or more pending applications for the de14 velopment of wind or solar energy at the 

15 time of the lease sale, the Secretary shall 

16 give credit toward any bid submitted by 

17 the applicant for expenditures of the appli18 cant considered by the Secretary to be 

19 qualified and necessary for the preparation 

20 of the application. 

21 (C) REVENUES.—Bonus bids, royalties, 

22 rentals, fees, or other payments collected by the 

23 Secretary under this section shall be subject to 

24 section 5. 

25 (D) LEASE TERMS.— 


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1 (i) IN GENERAL.—As part of the pilot 

2 program, the Secretary may vary the 

3 length of the lease terms and establish 

4 such other lease terms and conditions as 

5 the Secretary considers appropriate. 

6 (ii) DATA COLLECTION.—As part of 

7 the pilot program, the Secretary shall— 

8 (I) offer on a noncompetitive 

9 basis on at least 1 site a short-term 

10 lease for data collection; and 

11 (II) on the expiration of the 

12 short-term lease, offer on a competi13 tive basis a long-term lease, giving 

14 credit toward the bonus bid to the 

15 holder of the short-term lease for any 

16 qualified expenditures to collect data 

17 to develop the site during the short18 term lease. 

19 (5) COMPLIANCE WITH LAWS.—In offering for 

20 lease the selected sites under paragraph (4), the Sec21 retary shall comply with all applicable environmental 

22 and other laws. 

23 (6) REPORT.—The Secretary shall— 

24 (A) compile a report of the results of each 

25 lease sale under the pilot program, including— 


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1 (i) the level of competitive interest; 

2 (ii) a summary of bids and revenues 

3 received; and 

4 (iii) any other factors that may have 

5 impacted the lease sale process; and 

6 (B) not later than 90 days after the final 

7 lease sale, submit to the Committee on Energy 

8 and Natural Resources of the Senate and the 

9 Committee on Natural Resources of the House 

10 of Representatives the report described in sub11 paragraph (A). 

12 (7) RIGHTS-OF-WAY.—During the pendency of 

13 the pilot program, the Secretary shall continue to 

14 issue rights-of-way, in compliance with authority in 

15 effect on the date of enactment of this Act, for avail16 able sites not selected for the pilot program. 

17 (b) SECRETARIAL DETERMINATION.— 

18 (1) IN GENERAL.—Not later than 2 years after 

19 the date of enactment of this Act, the Secretaries 

20 shall make a joint determination on whether to es21 tablish a leasing program under this section for wind 

22 or solar energy, or both, on all covered land. 

23 (2) SYSTEM.—If the Secretaries determine that 

24 a leasing program should be established, the pro25 gram shall apply to all covered land in accordance 


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1 with this Act and other provisions of law applicable 

2 to public land or National Forest System land. 

3 (3) ESTABLISHMENT.—The Secretaries shall 

4 establish a leasing program unless the Secretaries 

5 determine that the program— 

6 (A) is not in the public interest; and 

7 (B) does not provide an effective means of 

8 developing wind or solar energy. 

9 (4) CONSULTATION.—In making the determina10 tions required under this subsection, the Secretaries 

11 shall consult with— 

12 (A) the heads of other relevant Federal 

13 agencies; 

14 (B) interested States, Indian tribes, and 

15 local governments; 

16 (C) representatives of the solar and wind 

17 industries; 

18 (D) representatives of the environment, 

19 conservation, and outdoor sporting commu20 nities; 

21 (E) other users of the covered land; and 

22 (F) the public. 

23 (5) CONSIDERATIONS.—In making the deter24 minations required under this subsection, the Secre25 taries shall consider the results of the pilot program. 


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1 (6) REGULATIONS.—Not later than 1 year after 

2 the date on which any determination is made to es3 tablish a leasing program, the Secretaries shall joint4 ly promulgate final regulations to implement the 

5 program. 

6 (7) REPORT.—If the Secretaries determine that 

7 a leasing program should not be established, not 

8 later than 60 days after the date of the determina9 tion, the Secretaries shall jointly submit to the Com10 mittee on Energy and Natural Resources of the Sen11 ate and the Committee on Natural Resources of the 

12 House of Representatives a report describing the 

13 basis and findings for the determination. 

14 (c) TRANSITION.— 

15 (1) IN GENERAL.—If the Secretaries determine 

16 under subsection (b) that a leasing program should 

17 be established for covered land, until the program is 

18 established and final regulations for the program are 

19 issued— 

20 (A) the Secretary shall continue to accept 

21 applications for rights-of-way on covered land, 

22 and provide for the issuance of rights-of-way on 

23 covered land within the jurisdiction of the Sec24 retary for the development of wind or solar en25 ergy pursuant to each requirement described in 


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1 title V of the Federal Land Policy and Manage2 ment Act of 1976 (43 U.S.C. 1761 et seq.) and 

3 other applicable law; and 

4 (B) the Secretary of Agriculture shall con5 tinue to accept applications for authorizations, 

6 and provide for the issuance of the authoriza7 tions, for the development of wind or solar en8 ergy on covered land within the jurisdiction of 

9 the Secretary pursuant to applicable law. 

10 (2) EXISTING RIGHTS-OF-WAY AND AUTHORIZA11 TIONS.— 

12 (A) IN GENERAL.—Effective beginning on 

13 the date on which the wind or solar leasing pro14 grams are established and final regulations are 

15 issued, the Secretaries shall not renew an exist16 ing right-of-way or other authorization for wind 

17 or solar energy development at the end of the 

18 term of the right-of-way or authorization. 

19 (B) LEASE.— 

20 (i) IN GENERAL.—Subject to clause 

21 (ii), at the end of the term of the right-of22 way or other authorization for the wind or 

23 solar energy project, the Secretary or, in 

24 the case of National Forest System land, 

25 the Secretary of Agriculture, shall grant, 


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1 without a competitive process, a lease to 

2 the holder of the right-of-way or other au3 thorization for the same covered land as 

4 was authorized under the right-of-way or 

5 other authorization if (as determined by 

6 the Secretary concerned)— 

7 (I) the holder of the right-of-way 

8 or other authorization has met the re9 quirements of diligent development; 

10 and 

11 (II) issuance of the lease is in the 

12 public interest and consistent with ap13 plicable law. 

14 (ii) TERMS AND CONDITIONS.—Any 

15 lease described in clause (i) shall be sub16 ject to— 

17 (I) terms and conditions that are 

18 consistent with this Act and the regu19 lations issued under this Act; and 

20 (II) the regulations in effect on 

21 the date of renewal and any other 

22 terms and conditions that the Sec23 retary considers necessary to protect 

24 the public interest. 


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1 (3) PENDING RIGHTS-OF-WAY.—Effective begin2 ning on the date on which the wind or solar leasing 

3 programs are established and final regulations for 

4 the programs are issued, the Secretary or, with re5 spect to National Forest System land, the Secretary 

6 of Agriculture shall provide any applicant that has 

7 filed a plan of development for a right-of-way or, in 

8 the case of National Forest System land, for an ap9 plicable authorization, for a wind or solar energy 

10 project with an option to acquire a lease on a non11 competitive basis, under such terms and conditions 

12 as are required by this Act, applicable regulations, 

13 and the Secretary concerned, for the same covered 

14 land included in the plan of development if— 

15 (A) the plan of development has been de16 termined by the Secretary concerned to be ade17 quate for the initiation of environmental review; 

18 (B) granting the lease is consistent with all 

19 applicable land use planning, environmental, 

20 and other laws; 

21 (C) the applicant has made a good faith ef22 fort to obtain a right-of-way or, in the case of 

23 National Forest System land, other authoriza24 tion, for the project; and 


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1 (D) issuance of the lease is in the public 

2 interest. 

3 (d) LEASING PROGRAM.—If the Secretaries deter4 mine under subsection (b) that a leasing program should 

5 be established, the program shall be established in accord6 ance with subsections (e) through (k). 

7 (e) COMPETITIVE LEASES.— 

8 (1) IN GENERAL.—Except as provided in para9 graph (2), leases for wind or solar energy develop10 ment under this section shall be issued on a competi11 tive basis with a single round of bidding in any lease 

12 sale. 

13 (2) EXCEPTIONS.—Paragraph (1) shall not 

14 apply if the Secretary or, with respect to National 

15 Forest System land, the Secretary of Agriculture de16 termines that— 

17 (A) no competitive interest exists for the 

18 covered land; 

19 (B) the public interest would not be served 

20 by the competitive issuance of a lease; 

21 (C) the lease is for the placement and op22 eration of a meteorological or data collection fa23 cility or for the development or demonstration 

24 of a new wind or solar technology and has a 

25 term of not more than 5 years; or 


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1 (D) the covered land is eligible to be grant2 ed a noncompetitive lease under subsection (c). 

3 (f) PAYMENTS.— 

4 (1) IN GENERAL.—The Secretaries shall jointly 

5 establish— 

6 (A) fees, rentals, bonuses, or other pay7 ments to ensure a fair return to the United 

8 States for any lease issued under this section; 

9 and 

10 (B) royalties pursuant to section 6 that 

11 apply to all leases issued under this section. 

12 (2) BONUS BIDS.—The Secretaries may grant 

13 credit toward any bonus bid for a qualified expendi14 ture by the holder of a lease described in subsection 

15 (e)(2)(C) in any competitive lease sale held for a 

16 long-term lease covering the same land covered by 

17 the lease described in subsection (e)(2)(C). 

18 (g) QUALIFICATIONS.—Prior to any lease sale, the 

19 Secretary shall establish qualifications for bidders that en20 sure bidders meet the requirements described in section 

21 4(a)(3). 

22 (h) REQUIREMENTS.—The Secretaries shall ensure 

23 that any activity under a leasing program is carried out 

24 in a manner that— 


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1 (1) is consistent with all applicable land use 

2 planning, environmental, and other laws; and 

3 (2) provides for— 

4 (A) safety; 

5 (B) protection of the environment and fish 

6 and wildlife habitat; 

7 (C) mitigation of impacts; 

8 (D) prevention of waste; 

9 (E) diligent development of the resource, 

10 with specific milestones to be met by the lessee 

11 as determined by the Secretaries; 

12 (F) coordination with applicable Federal 

13 agencies; 

14 (G) a fair return to the United States for 

15 any lease; 

16 (H) use of best management practices, in17 cluding planning and practices for mitigation of 

18 impacts; 

19 (I) public notice and comment on any pro20 posal submitted for a lease under this section; 

21 (J) oversight, inspection, research, moni22 toring, and enforcement relating to a lease 

23 under this section; 


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1 (K) the quantity of acreage to be commen2 surate with the size of the project covered by a 

3 lease; and 

4 (L) efficient use of water resources. 

5 (i) LEASE DURATION, SUSPENSION, AND CANCELLA6 TION.— 

7 (1) DURATION.—A lease under this section 

8 shall be for— 

9 (A) an initial term of 25 years; and 

10 (B) any additional period after the initial 

11 term during which electricity is being produced 

12 annually in commercial quantities from the 

13 lease. 

14 (2) ADMINISTRATION.—The Secretary shall es15 tablish terms and conditions for the issuance, trans16 fer, renewal, suspension, and cancellation of a lease 

17 under this section. 

18 (3) READJUSTMENT.— 

19 (A) IN GENERAL.—Royalties, rentals, and 

20 other terms and conditions of a lease under this 

21 section shall be subject to readjustment— 

22 (i) on the date that is 15 years after 

23 the date on which the lease is issued; and 

24 (ii) every 10 years thereafter. 


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1 (B) LEASE.—Each lease issued under this 

2 Act shall provide for readjustment in accord3 ance with subparagraph (A). 

4 (j) SURFACE-DISTURBING ACTIVITIES.—The Secre5 taries shall— 

6 (1) regulate all surface-disturbing activities con7 ducted pursuant to any lease issued under this sec8 tion; and 

9 (2) require any necessary reclamation and other 

10 actions under the lease as are required in the inter11 est of conservation of surface resources. 

12 (k) SECURITY.—The Secretaries shall require the 

13 holder of a lease issued under this section— 

14 (1) to furnish a surety bond or other form of 

15 security, as prescribed by the Secretaries; 

16 (2) to provide for the reclamation and restora17 tion of the area covered by the lease; and 

18 (3) to comply with such other requirements as 

19 the Secretaries consider necessary to protect the in20 terests of the public and the United States. 

21 (l) PERIODIC REVIEW.—Not less frequently than 

22 once every 5 years, the Secretary shall conduct a review 

23 of the adequacy of the surety bond or other form of secu24 rity provided by the holder of a lease issued under this 

25 section. 


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1 SEC. 204. DISPOSITION OF REVENUES. 

2 (a) DISPOSITION OF REVENUES.—Of the amounts 

3 collected as bonus bids, royalties, rentals, fees, or other 

4 payments under a right-of-way, permit, lease, or other au5 thorization for the development of wind or solar energy 

6 on covered land— 

7 (1) 25 percent shall be paid by the Secretary of 

8 the Treasury to the State within the boundaries of 

9 which the income is derived; 

10 (2) 25 percent shall be paid by the Secretary of 

11 the Treasury to the 1 or more counties within the 

12 boundaries of which the income is derived; 

13 (3) 15 percent shall— 

14 (A) for the period beginning on the date of 

15 enactment of this Act and ending on date the 

16 date that is 15 years after the date of enact17 ment of this Act, be deposited in the Treasury 

18 of the United States to help facilitate the proc19 essing of renewable energy permits by the Bu20 reau of Land Management, including the trans21 fer of the funds by the Bureau of Land Man22 agement to other Federal agencies and State 

23 agencies to facilitate the processing of renew24 able energy permits on Federal land; and 


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1 (B) beginning on the date that is 15 years 

2 after the date of enactment of this Act, be de3 posited in the Fund; and 

4 (4) 35 percent shall be deposited in the Renew5 able Energy Resource Conservation Fund estab6 lished by subsection (c). 

7 (b) PAYMENTS TO STATES AND COUNTIES.— 

8 (1) IN GENERAL.—Except as provided in para9 graph (2), amounts paid to States and counties 

10 under subsection (a) shall be used consistent with 

11 section 35 of the Mineral Leasing Act (30 U.S.C. 

12 191). 

13 (2) IMPACTS ON FEDERAL LAND.—Not less 

14 than 33 percent of the amount paid to a State shall 

15 be used on an annual basis for the purposes de16 scribed in subsection (c)(2)(A). 

17 (c) RENEWABLE ENERGY RESOURCE CONSERVATION

18 FUND.— 

19 (1) IN GENERAL.—There is established in the 

20 Treasury a fund, to be known as the ‘‘Renewable 

21 Energy Resource Conservation Fund’’, to be admin22 istered by the Secretary for use in regions impacted 

23 by the development of wind or solar energy. 

24 (2) USE.— 


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1 (A) IN GENERAL.—Amounts in the Fund 

2 shall be available to the Secretary, who may 

3 make amounts available to the Secretary of Ag4 riculture and to other Federal or State agen5 cies, as appropriate, for the purposes of— 

6 (i) addressing and offsetting the im7 pacts of wind or solar development on Fed8 eral land, including restoring and pro9 tecting— 

10 (I) fish and wildlife habitat for 

11 affected species; 

12 (II) fish and wildlife corridors for 

13 affected species; and 

14 (III) water resources in areas im15 pacted by wind or solar energy devel16 opment; 

17 (ii) securing recreational access to 

18 Federal land through an easement, right19 of-way, or fee title acquisition from willing 

20 sellers for the purpose of providing en21 hanced public access to existing Federal 

22 land that is inaccessible or significantly re23 stricted; and 

24 (iii) carrying out activities authorized 

25 under the Land and Water Conservation 


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1 Fund Act of 1965 (16 U.S.C. 460l–4 et 

2 seq.) in the State. 

3 (B) ADVISORY BOARD.—The Secretary 

4 shall establish an independent advisory board 

5 composed of key stakeholders and technical ex6 perts to provide recommendations and guidance 

7 on the disposition of any amounts expended 

8 from the Fund. 

9 (3) MITIGATION REQUIREMENTS.—The expend10 iture of funds under this subsection shall be in addi11 tion to any mitigation requirements imposed pursu12 ant to any law, regulation, or term or condition of 

13 any lease, right-of-way, or other authorization. 

14 (4) INVESTMENT OF FUND.— 

15 (A) IN GENERAL.—Any amounts deposited 

16 in the Fund shall earn interest in an amount 

17 determined by the Secretary of the Treasury on 

18 the basis of the current average market yield on 

19 outstanding marketable obligations of the 

20 United States of comparable maturities. 

21 (B) USE.—Any interest earned under sub22 paragraph (A) may be expended in accordance 

23 with this subsection. 


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1 SEC. 205. ROYALTIES. 

2 (a) IN GENERAL.—The Secretaries shall require as 

3 a term and condition of any lease, right-of-way, permit, 

4 or other authorization for the development of wind or solar 

5 energy on covered land the payment of a royalty estab6 lished by the Secretaries pursuant to a joint rulemaking 

7 that shall be a percentage of the gross proceeds from the 

8 sale of electricity at a rate that— 

9 (1) encourages production of solar or wind en10 ergy; 

11 (2) ensures a fair return to the public com12 parable to the return that would be obtained on 

13 State and private land; and 

14 (3) encourages the maximum energy generation 

15 while disturbing the least quantity of covered land 

16 and other natural resources, including water. 

17 (b) AMOUNT.—The royalty on electricity produced 

18 using wind or solar resources shall be— 

19 (1) not less than 1 percent, and not more than 

20 2.5 percent, of the gross proceeds from the sale of 

21 electricity produced from the resources during the 

22 first 10 years of production; and 

23 (2) not less than 2 percent, and not more than 

24 5 percent, of the gross proceeds from the sale of 

25 electricity produced from the resources during each 

26 year after that initial 10-year period. 


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1 (c) DIFFERENT ROYALTY RATES.—The Secretaries 

2 may establish— 

3 (1) a different royalty rate for wind or solar en4 ergy generation; and 

5 (2) a reduced royalty rate for projects located 

6 within a zone identified for development of solar or 

7 wind energy. 

8 (d) ROYALTY IN LIEU OF RENT.—During the period 

9 of production, a royalty shall be collected in lieu of any 

10 rent for the land from which the electricity is produced. 

11 (e) ROYALTY RELIEF.—To promote the generation of 

12 renewable energy, the Secretaries may reduce any royalty 

13 otherwise required on a showing by clear and convincing 

14 evidence by the person holding a lease, right-of-way, per15 mit, or other authorization for the development of wind 

16 or solar energy on covered land under which the genera17 tion of energy is or will be produced in commercial quan18 tities that— 

19 (1) collection of the full royalty would unreason20 ably burden energy generation; and 

21 (2) the royalty reduction is in the public inter22 est. 

23 (f) PERIODIC REVIEW AND REPORT.— 

24 (1) IN GENERAL.—Not later than 5 years after 

25 the date of enactment of this Act and every 5 years 


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1 thereafter, the Secretary, in consultation with the 

2 Secretary of Agriculture, shall— 

3 (A) complete a review of collections and 

4 impacts of the royalty and fees provided under 

5 this Act; and 

6 (B) submit to the Committee on Energy 

7 and Natural Resources of the Senate and the 

8 Committee on Natural Resources of the House 

9 of Representatives a report describing the re10 sults of the review. 

11 (2) TOPICS.—The report shall address— 

12 (A) the total revenues received (by cat13 egory) on an annual basis as royalties from 

14 wind, solar, and geothermal development and 

15 production (specified by energy source) on cov16 ered land; 

17 (B) whether the revenues received for the 

18 development of wind, solar, and geothermal de19 velopment are comparable to the revenues re20 ceived for similar development on State and pri21 vate land; 

22 (C) any impact on the development of 

23 wind, solar, and geothermal development and 

24 production on covered land as a result of the 

25 royalties; and 


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1 (D) any recommendations with respect to 

2 changes in Federal law (including regulations) 

3 relating to the amount or method of collection 

4 (including auditing, compliance, and enforce5 ment) of the royalties. 

6 (g) REGULATIONS.—Not later than 1 year after the 

7 date of enactment of this Act, the Secretaries shall jointly 

8 issue final regulations to carry out this section. 

9 SEC. 206. ENFORCEMENT OF ROYALTY AND PAYMENT PRO10 VISIONS. 

11 (a) DUTIES OF THE SECRETARY.—The Secretary 

12 shall establish a comprehensive inspection, collection, fis13 cal, and production accounting and auditing system— 

14 (1) to accurately determine royalties, rentals, 

15 interest, fines, penalties, fees, deposits, and other 

16 payments owed under this Act; and 

17 (2) to collect and account for the payments in 

18 a timely manner. 

19 (b) APPLICABILITY OF OTHER LAW.—The Federal 

20 Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 

21 1701 et seq.) (including the civil and criminal enforcement 

22 provisions of that Act) shall apply to leases, permits, 

23 rights-of-way, or other authorizations issued for the devel24 opment of solar or wind energy on covered land and the 

25 holders and operators of the leases, permits, rights-of-way, 


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1 or other authorizations (and designees) under this title, 

2 except that in applying that Act— 

3 (1) ‘‘wind or solar leases, permits, rights-of4 way, or other authorizations’’ shall be substituted 

5 for ‘‘oil and gas leases’’; 

6 (2) ‘‘electricity generated from wind or solar re7 sources’’ shall be substituted for ‘‘oil and gas’’ 

8 (when used as nouns); 

9 (3) ‘‘lease, permit, right-of-way, or other au10 thorization for the development of wind or solar en11 ergy’’ shall be substituted for ‘‘lease’’ and ‘‘lease for 

12 oil and gas’’ (when used as nouns); and 

13 (4) ‘‘lessee, permittee, right-of-way holder, or 

14 holder of an authorization for the development of 

15 wind or solar energy’’ shall be substituted for ‘‘les16 see’’. 

17 SEC. 207. ENFORCEMENT. 

18 (a) IN GENERAL.—Sections 302(c) and 303 of the 

19 Federal Land Policy and Management Act of 1976 (43 

20 U.S.C. 1732(c), 1733) shall apply to activities conducted 

21 on covered land under this title. 

22 (b) APPLICABILITY OF OTHER ENFORCEMENT PRO23 VISIONS.—Nothing in this title reduces or limits the en24 forcement authority vested in the Secretary or the Attor25 ney General by any other law. 


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1 SEC. 208. SEGREGATION FROM APPROPRIATION UNDER 

2 MINING AND FEDERAL LAND LAWS. 

3 (a) IN GENERAL.—On covered land identified by the 

4 Secretary or the Secretary of Agriculture for the develop5 ment of solar or wind power under this title or other appli6 cable law, the Secretary or the Secretary of Agriculture 

7 may temporarily segregate the identified land from appro8 priation under the mining and public land laws. 

9 (b) ADMINISTRATION.—Segregation of covered land 

10 under this section— 

11 (1) may only be made for a period not to exceed 

12 10 years; and 

13 (2) shall be subject to valid existing rights as 

14 of the date of the segregation. 

15 SEC. 209. REPORT. 

16 (a) STUDY.— 

17 (1) IN GENERAL.—Not later than 180 days 

18 after the date of enactment of this Act, the Secre19 taries shall carry out a study on the siting, develop20 ment, and management of projects to determine the 

21 feasibility of carrying out a conservation banking 

22 program on land administered by the Secretaries. 

23 (2) CONTENTS.—The study under paragraph 

24 (1) shall— 

25 (A) identify areas in which— 


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1 (i) privately owned land is not avail2 able to offset the impacts of solar or wind 

3 energy development on federally adminis4 tered land; or 

5 (ii) mitigation investments on feder6 ally administered land are likely to provide 

7 greater conservation value for impacts of 

8 solar or wind energy development on feder9 ally administered land; and 

10 (B) examine— 

11 (i) the effectiveness of laws (including 

12 regulations) and policies in effect on the 

13 date of enactment of this Act in facili14 tating the development of conservation 

15 banks; 

16 (ii) the advantages and disadvantages 

17 of using conservation banks on Federal 

18 land to mitigate impacts to natural re19 sources on private land; and 

20 (iii) any changes in Federal law (in21 cluding regulations) or policy necessary to 

22 further develop a Federal conservation 

23 banking program. 

24 (b) REPORT TO CONGRESS.—Not later than 18 

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1 taries shall jointly submit to Congress a report that in2 cludes— 

3 (1) the recommendations of the Secretaries re4 lating to— 

5 (A) the most effective system for Federal 

6 land described in subsection (a)(2)(A) to meet 

7 the goals of facilitating the development of a 

8 conservation banking program on Federal land; 

9 and 

10 (B) any change to Federal law (including 

11 regulations) or policy necessary to address more 

12 effectively the siting, development, and manage13 ment of conservation banking programs on Fed14 eral land to mitigate impacts to natural re15 sources on private land; and 

16 (2) any administrative action to be taken by the 

17 Secretaries in response to the recommendations. 

18 (c) AVAILABILITY TO THE PUBLIC.—Not later than 

19 30 days after the date on which the report described in 

20 subsection (b) is submitted to Congress, the Secretaries 

21 shall make the results of the study available to the public. 

22 SEC. 210. APPLICABILITY OF LAW. 

23 (a) RENTAL FEE EXEMPTION.—Wind or solar gen24 eration projects with a capacity of 20 megawatts or more 

25 that are issued a lease, right-of-way, permit, or other auVerDate Mar 15 2010 02:00 Nov 03, 2011 Jkt 019200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1775.IS S1775

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1 thorization under applicable law shall not be subject to 

2 the rental fee exemption for rights-of-way under section 

3 504(g) of the Federal Land Policy and Management Act 

4 of 1976 (43 U.S.C. 1764(g)). 

5 (b) FEES, CHARGES, AND COMMISSIONS.—Section 

6 304 of the Federal Land Policy and Management Act of 

7 1976 (43 U.S.C. 1734) shall apply to an application made 

8 under section 4. 

Æ 


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