I 
112TH CONGRESS 
2D SESSION 
H. R. 5991 
To promote the development of renewable energy on public lands, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 21, 2012 
Mr. HECK (for himself and Mr. HEINRICH) introduced the following bill; 
which was referred to the Committee on Natural Resources, and in addi-
tion to the Committees on Armed Services and Agriculture, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To promote the development of renewable energy on public 
lands, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Public Lands Renewable Energy Development Act of 
2012’’. 
(1) TABLE OF CONTENTS.—The table of con-
tents for this Act is as follows: 
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Sec. 1. Short title; table of contents. 
TITLE I—GEOTHERMAL ENERGY 
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 plan-
ning. 
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. 
TITLE I—GEOTHERMAL ENERGY 
SEC. 101. EXTENSION OF FUNDING FOR IMPLEMENTATION 
OF GEOTHERMAL STEAM ACT OF 1970. 
(a) IN GENERAL.—Section 234(a) of the Energy Pol-
icy Act of 2005 (42 U.S.C. 15873(a)) is amended by strik-
ing ‘‘in the first 5 fiscal years beginning after the date 
of enactment of this Act’’ and inserting ‘‘through fiscal 
year 2020’’. 
(b) AUTHORIZATION.—Section 234(b) of the Energy 
Policy Act of 2005 (42 U.S.C. 15873(b)) is amended— 
(1) by striking ‘‘Amounts’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—Amounts’’; and 
(2) by adding at the end the following: 
‘‘(2) AUTHORIZATION.—Effective for fiscal year 
2012 and each fiscal year thereafter, amounts de-
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posited under subsection (a) shall be available to the 
Secretary of the Interior for expenditure, subject to 
appropriation and without fiscal year limitation, to 
implement the Geothermal Steam Act of 1970 (30 
U.S.C. 1001 et seq.) and this Act.’’. 
TITLE 
II—DEVELOPMENT 
OF 
SOLAR AND WIND ENERGY ON 
PUBLIC LAND 
SEC. 201. DEFINITIONS. 
In this title: 
(1) COVERED LAND.—The term ‘‘covered land’’ 
means land that is— 
(A)(i) public land administered by the Sec-
retary; or 
(ii) National Forest System land adminis-
tered by the Secretary of Agriculture; and 
(B) not excluded from the development of 
solar or wind energy under— 
(i) a land use plan established under 
the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1701 et seq.); 
(ii) a land use plan established under 
the National Forest Management Act of 
1976 (16 U.S.C. 1600 et seq.); or 
(iii) other law. 
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(2) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the wind and solar leasing pilot pro-
gram established under section 204(a). 
(3) PUBLIC
LAND.—The term ‘‘public land’’ 
has the meaning given the term ‘‘public lands’’ in 
section 103 of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1702). 
(4) SECRETARIES.—The term ‘‘Secretaries’’ 
means— 
(A) in the case of public land administered 
by the Secretary, the Secretary; and 
(B) in the case of National Forest System 
land administered by the Secretary of Agri-
culture, the Secretary of Agriculture. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
SEC. 
202. 
PROGRAMMATIC 
ENVIRONMENTAL 
IMPACT 
STATEMENTS AND LAND USE PLANNING. 
(a) PUBLIC LAND.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall— 
(1) complete and finalize the Programmatic En-
vironmental Impact Statement for Solar Energy De-
velopment in Six Southwestern States (BLM/DES 
10–59; DOE/EIS–0403) in accordance with the Na-
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tional Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) to analyze the potential impacts of— 
(A) a program to develop solar energy on 
land administered by the Secretary, acting 
through the Bureau of Land Management; and 
(B) any necessary amendments to land use 
plans for the land; and 
(2) amend any land use plans as appropriate to 
provide for the development of renewable energy in 
areas considered appropriate by the Secretary. 
(b) NATIONAL FOREST SYSTEM LAND.—As soon as 
practicable but not later than 2 years after the date of 
enactment of this Act, the Secretary of Agriculture shall— 
(1) prepare and publish in the Federal Register 
a notice of intent to prepare a programmatic envi-
ronmental impact statement in accordance with the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) to analyze the potential im-
pacts of— 
(A) a program to develop solar and wind 
energy on National Forest System land admin-
istered by the Secretary of Agriculture; and 
(B) any necessary amendments to land use 
plans for the land; and 
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(2) amend any land use plans as appropriate to 
provide for the development of renewable energy in 
areas considered appropriate by the Secretary of Ag-
riculture immediately on completion of the pro-
grammatic environmental impact statement. 
(c) EFFECT ON PROCESSING APPLICATIONS.—The 
requirement for completion of programmatic environ-
mental impact statements under this section shall not re-
sult in any delay in processing or approving applications 
for wind or solar development on public land administered 
by the Secretary or on National Forest System land. 
(d) MILITARY INSTALLATIONS.— 
(1) REPORT.— 
(A) IN GENERAL.—Not later than 2 years 
after the date of enactment of this Act, the Sec-
retary of Defense, in consultation with the Sec-
retary of the Interior, shall conduct a study, 
and prepare a report, that— 
(i) identifies locations on land with-
drawn from the public domain and re-
served for military purposes that— 
(I) exhibit a high potential for 
solar, wind, geothermal, or other re-
newable energy production; 
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(II) are disturbed or otherwise 
have comparatively low value for other 
resources; and 
(III) could be developed for re-
newable energy production in a man-
ner consistent with all present and 
reasonably foreseeable military train-
ing and operational missions and re-
search, development, testing, and eval-
uation requirements; and 
(ii) describes the administration of 
public land withdrawn for military pur-
poses for the development of commercial- 
scale renewable energy projects, including 
the legal authorities governing authoriza-
tion for that use. 
(B) 
RECOMMENDATIONS.—The 
report 
shall include recommendations on— 
(i) necessary changes in any law (in-
cluding regulations); 
(ii) whether the authorization for the 
use of the land for development of renew-
able energy projects should be pursuant to 
lease, contract, right-of-way, permit, or 
other form of authorization; 
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(iii) methods of improving coordina-
tion among the Federal, State, and local 
agencies, if any, involved in authorizing the 
projects; and 
(iv) disposition of revenues resulting 
from the development of renewable energy 
projects on the land. 
(2) ENVIRONMENTAL IMPACT ANALYSIS.—Not 
later than 1 year after the completion of the study 
required by paragraph (1), the Secretary of Defense, 
in consultation with the Secretary of the Interior, 
shall prepare and publish in the Federal Register a 
notice of intent to prepare an environmental impact 
analysis document to support a program to develop 
renewable energy on withdrawn military land identi-
fied in the study as suitable for the production. 
(3) REPORTS.—On completion of the report, 
the Secretary and the Secretary of Defense shall 
jointly submit the report required by paragraph (1) 
to— 
(A) the Committee on Armed Services of 
the Senate; 
(B) the Committee on Energy and Natural 
Resources of the Senate; 
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(C) the Committee on Armed Services of 
the House of Representatives; and 
(D) the Committee on Natural Resources 
of the House of Representatives. 
SEC. 203. DEVELOPMENT OF SOLAR AND WIND ENERGY ON 
PUBLIC LAND. 
(a) PILOT PROGRAM.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall establish a wind and solar leasing pilot 
program on covered land administered by the Sec-
retary. 
(2) SELECTION OF SITES.— 
(A) IN GENERAL.—Not later than 90 days 
after the date the pilot program is established 
under this subsection, the Secretary shall (tak-
ing into consideration the multiple resource val-
ues of the land) select 2 sites that are appro-
priate for the development of a solar energy 
project, and 2 sites that are appropriate for the 
development of a wind energy project, on cov-
ered land administered by the Secretary as part 
of the pilot program. 
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(B) SITE
SELECTION.—In carrying out 
subparagraph (A), the Secretary shall seek to 
select sites— 
(i) for which there is likely to be a 
high level of industry interest; 
(ii) that have a comparatively low 
value for other resources; and 
(iii) that are representative of sites on 
which solar or wind energy is likely to be 
developed on covered land. 
(C) INELIGIBLE
SITES.—The Secretary 
shall not select as part of the pilot program any 
site for which a right-of way for site testing or 
construction has been issued. 
(3) QUALIFICATIONS.—Prior to any lease sale, 
the Secretary shall establish qualifications for bid-
ders that ensure bidders— 
(A) are able to expeditiously develop a 
wind or solar energy project on the site for 
lease; 
(B) possess— 
(i) financial resources necessary to 
complete a project; 
(ii) knowledge of the applicable tech-
nology; and 
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(iii) such other qualifications as are 
determined appropriate by the Secretary; 
and 
(C) meet the eligibility requirements for 
leasing under the first section of the Mineral 
Leasing Act (30 U.S.C. 181). 
(4) LEASE SALES.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (D)(ii), not later than 180 days 
after the date sites are selected under para-
graph (2), the Secretary shall offer each site for 
competitive leasing to qualified bidders under 
such terms and conditions as are required by 
the Secretary. 
(B) BIDDING SYSTEMS.— 
(i) IN GENERAL.—In offering the sites 
for lease, the Secretary may vary the bid-
ding systems to be used at each lease sale, 
including— 
(I) cash bonus bids with a re-
quirement for payment of the royalty 
established under this Act; 
(II) variable royalty bids based 
on a percentage of the gross proceeds 
from the sale of electricity produced 
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from the lease, except that the royalty 
shall not be less than the royalty re-
quired under this Act, together with a 
fixed cash bonus; and 
(III) such other bidding system 
as ensures a fair return to the public 
consistent with the royalty established 
under this Act. 
(ii) ROUND.—The Secretary shall 
limit bidding to 1 round in any lease sale. 
(iii) EXPENDITURES.—In any case in 
which the land that is subject to lease has 
1 or more pending applications for the de-
velopment of wind or solar energy at the 
time of the lease sale, the Secretary shall 
give credit toward any bid submitted by 
the applicant for expenditures of the appli-
cant considered by the Secretary to be 
qualified and necessary for the preparation 
of the application. 
(C) REVENUES.—Bonus bids, royalties, 
rentals, fees, or other payments collected by the 
Secretary under this section shall be subject to 
section 5. 
(D) LEASE TERMS.— 
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(i) IN GENERAL.—As part of the pilot 
program, the Secretary may vary the 
length of the lease terms and establish 
such other lease terms and conditions as 
the Secretary considers appropriate. 
(ii) DATA COLLECTION.—As part of 
the pilot program, the Secretary shall— 
(I) offer on a noncompetitive 
basis on at least 1 site a short-term 
lease for data collection; and 
(II) on the expiration of the 
short-term lease, offer on a competi-
tive basis a long-term lease, giving 
credit toward the bonus bid to the 
holder of the short-term lease for any 
qualified expenditures to collect data 
to develop the site during the short- 
term lease. 
(5) COMPLIANCE WITH LAWS.—In offering for 
lease the selected sites under paragraph (4), the Sec-
retary shall comply with all applicable environmental 
and other laws. 
(6) REPORT.—The Secretary shall— 
(A) compile a report of the results of each 
lease sale under the pilot program, including— 
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(i) the level of competitive interest; 
(ii) a summary of bids and revenues 
received; and 
(iii) any other factors that may have 
impacted the lease sale process; and 
(B) not later than 90 days after the final 
lease sale, submit to the Committee on Energy 
and Natural Resources of the Senate and the 
Committee on Natural Resources of the House 
of Representatives the report described in sub-
paragraph (A). 
(7) RIGHTS-OF-WAY.—During the pendency of 
the pilot program, the Secretary shall continue to 
issue rights-of-way, in compliance with authority in 
effect on the date of enactment of this Act, for avail-
able sites not selected for the pilot program. 
(b) SECRETARIAL DETERMINATION.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretaries 
shall make a joint determination on whether to es-
tablish a leasing program under this section for wind 
or solar energy, or both, on all covered land. 
(2) SYSTEM.—If the Secretaries determine that 
a leasing program should be established, the pro-
gram shall apply to all covered land in accordance 
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with this Act and other provisions of law applicable 
to public land or National Forest System land. 
(3) ESTABLISHMENT.—The Secretaries shall 
establish a leasing program unless the Secretaries 
determine that the program— 
(A) is not in the public interest; and 
(B) does not provide an effective means of 
developing wind or solar energy. 
(4) CONSULTATION.—In making the determina-
tions required under this subsection, the Secretaries 
shall consult with— 
(A) the heads of other relevant Federal 
agencies; 
(B) interested States, Indian tribes, and 
local governments; 
(C) representatives of the solar and wind 
industries; 
(D) representatives of the environment, 
conservation, and outdoor sporting commu-
nities; 
(E) other users of the covered land; and 
(F) the public. 
(5) CONSIDERATIONS.—In making the deter-
minations required under this subsection, the Secre-
taries shall consider the results of the pilot program. 
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(6) REGULATIONS.—Not later than 1 year after 
the date on which any determination is made to es-
tablish a leasing program, the Secretaries shall joint-
ly promulgate final regulations to implement the 
program. 
(7) REPORT.—If the Secretaries determine that 
a leasing program should not be established, not 
later than 60 days after the date of the determina-
tion, the Secretaries shall jointly submit to the Com-
mittee on Energy and Natural Resources of the Sen-
ate and the Committee on Natural Resources of the 
House of Representatives a report describing the 
basis and findings for the determination. 
(c) TRANSITION.— 
(1) IN GENERAL.—If the Secretaries determine 
under subsection (b) that a leasing program should 
be established for covered land, until the program is 
established and final regulations for the program are 
issued— 
(A) the Secretary shall continue to accept 
applications for rights-of-way on covered land, 
and provide for the issuance of rights-of-way on 
covered land within the jurisdiction of the Sec-
retary for the development of wind or solar en-
ergy pursuant to each requirement described in 
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title V of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1761 et seq.) and 
other applicable law; and 
(B) the Secretary of Agriculture shall con-
tinue to accept applications for authorizations, 
and provide for the issuance of the authoriza-
tions, for the development of wind or solar en-
ergy on covered land within the jurisdiction of 
the Secretary pursuant to applicable law. 
(2) EXISTING RIGHTS-OF-WAY AND AUTHORIZA-
TIONS.— 
(A) IN GENERAL.—Effective beginning on 
the date on which the wind or solar leasing pro-
grams are established and final regulations are 
issued, the Secretaries shall not renew an exist-
ing right-of-way or other authorization for wind 
or solar energy development at the end of the 
term of the right-of-way or authorization. 
(B) LEASE.— 
(i) IN
GENERAL.—Subject to clause 
(ii), at the end of the term of the right-of- 
way or other authorization for the wind or 
solar energy project, the Secretary or, in 
the case of National Forest System land, 
the Secretary of Agriculture, shall grant, 
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without a competitive process, a lease to 
the holder of the right-of-way or other au-
thorization for the same covered land as 
was authorized under the right-of-way or 
other authorization if (as determined by 
the Secretary concerned)— 
(I) the holder of the right-of-way 
or other authorization has met the re-
quirements of diligent development; 
and 
(II) issuance of the lease is in the 
public interest and consistent with ap-
plicable law. 
(ii) TERMS
AND
CONDITIONS.—Any 
lease described in clause (i) shall be sub-
ject to— 
(I) terms and conditions that are 
consistent with this Act and the regu-
lations issued under this Act; and 
(II) the regulations in effect on 
the date of renewal and any other 
terms and conditions that the Sec-
retary considers necessary to protect 
the public interest. 
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(3) PENDING RIGHTS-OF-WAY.—Effective begin-
ning on the date on which the wind or solar leasing 
programs are established and final regulations for 
the programs are issued, the Secretary or, with re-
spect to National Forest System land, the Secretary 
of Agriculture shall provide any applicant that has 
filed a plan of development for a right-of-way or, in 
the case of National Forest System land, for an ap-
plicable authorization, for a wind or solar energy 
project with an option to acquire a lease on a non-
competitive basis, under such terms and conditions 
as are required by this Act, applicable regulations, 
and the Secretary concerned, for the same covered 
land included in the plan of development if— 
(A) the plan of development has been de-
termined by the Secretary concerned to be ade-
quate for the initiation of environmental review; 
(B) granting the lease is consistent with all 
applicable land use planning, environmental, 
and other laws; 
(C) the applicant has made a good faith ef-
fort to obtain a right-of-way or, in the case of 
National Forest System land, other authoriza-
tion, for the project; and 
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(D) issuance of the lease is in the public 
interest. 
(d) LEASING PROGRAM.—If the Secretaries deter-
mine under subsection (b) that a leasing program should 
be established, the program shall be established in accord-
ance with subsections (e) through (k). 
(e) COMPETITIVE LEASES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), leases for wind or solar energy develop-
ment under this section shall be issued on a competi-
tive basis with a single round of bidding in any lease 
sale. 
(2) EXCEPTIONS.—Paragraph (1) shall not 
apply if the Secretary or, with respect to National 
Forest System land, the Secretary of Agriculture de-
termines that— 
(A) no competitive interest exists for the 
covered land; 
(B) the public interest would not be served 
by the competitive issuance of a lease; 
(C) the lease is for the placement and op-
eration of a meteorological or data collection fa-
cility or for the development or demonstration 
of a new wind or solar technology and has a 
term of not more than 5 years; or 
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(D) the covered land is eligible to be grant-
ed a noncompetitive lease under subsection (c). 
(f) PAYMENTS.— 
(1) IN GENERAL.—The Secretaries shall jointly 
establish— 
(A) fees, rentals, bonuses, or other pay-
ments to ensure a fair return to the United 
States for any lease issued under this section; 
and 
(B) royalties pursuant to section 6 that 
apply to all leases issued under this section. 
(2) BONUS BIDS.—The Secretaries may grant 
credit toward any bonus bid for a qualified expendi-
ture by the holder of a lease described in subsection 
(e)(2)(C) in any competitive lease sale held for a 
long-term lease covering the same land covered by 
the lease described in subsection (e)(2)(C). 
(g) QUALIFICATIONS.—Prior to any lease sale, the 
Secretary shall establish qualifications for bidders that en-
sure bidders meet the requirements described in section 
4(a)(3). 
(h) REQUIREMENTS.—The Secretaries shall ensure 
that any activity under a leasing program is carried out 
in a manner that— 
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(1) is consistent with all applicable land use 
planning, environmental, and other laws; and 
(2) provides for— 
(A) safety; 
(B) protection of the environment and fish 
and wildlife habitat; 
(C) mitigation of impacts; 
(D) prevention of waste; 
(E) diligent development of the resource, 
with specific milestones to be met by the lessee 
as determined by the Secretaries; 
(F) coordination with applicable Federal 
agencies; 
(G) a fair return to the United States for 
any lease; 
(H) use of best management practices, in-
cluding planning and practices for mitigation of 
impacts; 
(I) public notice and comment on any pro-
posal submitted for a lease under this section; 
(J) oversight, inspection, research, moni-
toring, and enforcement relating to a lease 
under this section; 
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(K) the quantity of acreage to be commen-
surate with the size of the project covered by a 
lease; and 
(L) efficient use of water resources. 
(i) LEASE DURATION, SUSPENSION, AND CANCELLA-
TION.— 
(1) DURATION.—A lease under this section 
shall be for— 
(A) an initial term of 25 years; and 
(B) any additional period after the initial 
term during which electricity is being produced 
annually in commercial quantities from the 
lease. 
(2) ADMINISTRATION.—The Secretary shall es-
tablish terms and conditions for the issuance, trans-
fer, renewal, suspension, and cancellation of a lease 
under this section. 
(3) READJUSTMENT.— 
(A) IN GENERAL.—Royalties, rentals, and 
other terms and conditions of a lease under this 
section shall be subject to readjustment— 
(i) on the date that is 15 years after 
the date on which the lease is issued; and 
(ii) every 10 years thereafter. 
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(B) LEASE.—Each lease issued under this 
Act shall provide for readjustment in accord-
ance with subparagraph (A). 
(j) SURFACE-DISTURBING ACTIVITIES.—The Secre-
taries shall— 
(1) regulate all surface-disturbing activities con-
ducted pursuant to any lease issued under this sec-
tion; and 
(2) require any necessary reclamation and other 
actions under the lease as are required in the inter-
est of conservation of surface resources. 
(k) SECURITY.—The Secretaries shall require the 
holder of a lease issued under this section— 
(1) to furnish a surety bond or other form of 
security, as prescribed by the Secretaries; 
(2) to provide for the reclamation and restora-
tion of the area covered by the lease; and 
(3) to comply with such other requirements as 
the Secretaries consider necessary to protect the in-
terests of the public and the United States. 
(l) PERIODIC REVIEW.—Not less frequently than 
once every 5 years, the Secretary shall conduct a review 
of the adequacy of the surety bond or other form of secu-
rity provided by the holder of a lease issued under this 
section. 
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SEC. 204. DISPOSITION OF REVENUES. 
(a) DISPOSITION OF REVENUES.—Of the amounts 
collected as bonus bids, royalties, rentals, fees, or other 
payments under a right-of-way, permit, lease, or other au-
thorization for the development of wind or solar energy 
on covered land— 
(1) 25 percent shall be paid by the Secretary of 
the Treasury to the State within the boundaries of 
which the income is derived; 
(2) 25 percent shall be paid by the Secretary of 
the Treasury to the 1 or more counties within the 
boundaries of which the income is derived; 
(3) 15 percent shall— 
(A) for the period beginning on the date of 
enactment of this Act and ending on date the 
date that is 15 years after the date of enact-
ment of this Act, be deposited in the Treasury 
of the United States to help facilitate the proc-
essing of renewable energy permits by the Bu-
reau of Land Management, including the trans-
fer of the funds by the Bureau of Land Man-
agement to other Federal agencies and State 
agencies to facilitate the processing of renew-
able energy permits on Federal land; and 
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(B) beginning on the date that is 15 years 
after the date of enactment of this Act, be de-
posited in the Fund; and 
(4) 35 percent shall be deposited in the Renew-
able Energy Resource Conservation Fund estab-
lished by subsection (c). 
(b) PAYMENTS TO STATES AND COUNTIES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), amounts paid to States and counties 
under subsection (a) shall be used consistent with 
section 35 of the Mineral Leasing Act (30 U.S.C. 
191). 
(2) IMPACTS
ON
FEDERAL
LAND.—Not less 
than 33 percent of the amount paid to a State shall 
be used on an annual basis for the purposes de-
scribed in subsection (c)(2)(A). 
(c) RENEWABLE ENERGY RESOURCE CONSERVATION 
FUND.— 
(1) IN GENERAL.—There is established in the 
Treasury a fund, to be known as the ‘‘Renewable 
Energy Resource Conservation Fund’’, to be admin-
istered by the Secretary for use in regions impacted 
by the development of wind or solar energy. 
(2) USE.— 
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(A) IN GENERAL.—Amounts in the Fund 
shall be available to the Secretary, who may 
make amounts available to the Secretary of Ag-
riculture and to other Federal or State agen-
cies, as appropriate, for the purposes of— 
(i) addressing and offsetting the im-
pacts of wind or solar development on Fed-
eral land, including restoring and pro-
tecting— 
(I) fish and wildlife habitat for 
affected species; 
(II) fish and wildlife corridors for 
affected species; and 
(III) water resources in areas im-
pacted by wind or solar energy devel-
opment; 
(ii) securing recreational access to 
Federal land through an easement, right- 
of-way, or fee title acquisition from willing 
sellers for the purpose of providing en-
hanced public access to existing Federal 
land that is inaccessible or significantly re-
stricted; and 
(iii) carrying out activities authorized 
under the Land and Water Conservation 
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Fund Act of 1965 (16 U.S.C. 460l–4 et 
seq.) in the State. 
(B) ADVISORY
BOARD.—The Secretary 
shall establish an independent advisory board 
composed of key stakeholders and technical ex-
perts to provide recommendations and guidance 
on the disposition of any amounts expended 
from the Fund. 
(3) MITIGATION REQUIREMENTS.—The expend-
iture of funds under this subsection shall be in addi-
tion to any mitigation requirements imposed pursu-
ant to any law, regulation, or term or condition of 
any lease, right-of-way, or other authorization. 
(4) INVESTMENT OF FUND.— 
(A) IN GENERAL.—Any amounts deposited 
in the Fund shall earn interest in an amount 
determined by the Secretary of the Treasury on 
the basis of the current average market yield on 
outstanding marketable obligations of the 
United States of comparable maturities. 
(B) USE.—Any interest earned under sub-
paragraph (A) may be expended in accordance 
with this subsection. 
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SEC. 205. ROYALTIES. 
(a) IN GENERAL.—The Secretaries shall require as 
a term and condition of any lease, right-of-way, permit, 
or other authorization for the development of wind or solar 
energy on covered land the payment of a royalty estab-
lished by the Secretaries pursuant to a joint rulemaking 
that shall be a percentage of the gross proceeds from the 
sale of electricity at a rate that— 
(1) encourages production of solar or wind en-
ergy; 
(2) ensures a fair return to the public com-
parable to the return that would be obtained on 
State and private land; and 
(3) encourages the maximum energy generation 
while disturbing the least quantity of covered land 
and other natural resources, including water. 
(b) AMOUNT.—The royalty on electricity produced 
using wind or solar resources shall be— 
(1) not less than 1 percent, and not more than 
2.5 percent, of the gross proceeds from the sale of 
electricity produced from the resources during the 
first 10 years of production; and 
(2) not less than 2 percent, and not more than 
5 percent, of the gross proceeds from the sale of 
electricity produced from the resources during each 
year after that initial 10-year period. 
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(c) DIFFERENT ROYALTY RATES.—The Secretaries 
may establish— 
(1) a different royalty rate for wind or solar en-
ergy generation; and 
(2) a reduced royalty rate for projects located 
within a zone identified for development of solar or 
wind energy. 
(d) ROYALTY IN LIEU OF RENT.—During the period 
of production, a royalty shall be collected in lieu of any 
rent for the land from which the electricity is produced. 
(e) ROYALTY RELIEF.—To promote the generation of 
renewable energy, the Secretaries may reduce any royalty 
otherwise required on a showing by clear and convincing 
evidence by the person holding a lease, right-of-way, per-
mit, or other authorization for the development of wind 
or solar energy on covered land under which the genera-
tion of energy is or will be produced in commercial quan-
tities that— 
(1) collection of the full royalty would unreason-
ably burden energy generation; and 
(2) the royalty reduction is in the public inter-
est. 
(f) PERIODIC REVIEW AND REPORT.— 
(1) IN GENERAL.—Not later than 5 years after 
the date of enactment of this Act and every 5 years 
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