(j) CHANGE TO OPERATIONS MANUAL.—Not later 
than 180 days after the completion of a change to the 
operations manual or flood control rule curves, the Sec-
retary shall submit a report to the appropriate committees 
of Congress regarding the components of the forecast- 
based reservoir operations plan incorporated into the 
change. 
Subtitle C—Reclamation Projects 
for Renewable Energy To Re-
duce Evaporation Loss 
SEC. 320. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds that— 
(1) evaporative loss along Bureau of Reclama-
tion reservoirs, canals, and other conveyance systems 
reduces the quantity and reliability of water deliv-
eries; 
(2) drought and extreme aridity from changing 
weather patterns will contribute to increased evapo-
rative loss in the future; and 
(3) existing Central Valley Project operations 
assume a conveyance loss for evaporation and seep-
age south of the Delta of 150,000 acre-feet annu-
ally. 
(b) PURPOSE.—The purpose of this subtitle is to ex-
pand investments in infrastructure for Bureau of Rec-
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lamation reservoirs, canals, and other conveyance systems, 
that will provide shade, reduce evaporative loss, and in-
crease water supplies in the arid western States. 
SEC. 321. DEFINITIONS. 
In this subtitle: 
(1) COVERED LAND.—The term ‘‘covered land’’ 
means land that is— 
(A) land under the administrative jurisdic-
tion of the Bureau of Reclamation; and 
(B) not excluded from the development of 
solar or wind energy under— 
(i) a final land use plan established 
under the Federal Land Policy and Man-
agement Act of 1976 (43 U.S.C. 1701 et 
seq.); or 
(ii) Federal law. 
(2) FUND.—The term ‘‘Fund’’ means the Fish 
and Wildlife Restoration Fund established under 
section 324. 
(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) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
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SEC. 322. EVALUATION AND REPORT. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary shall com-
plete an evaluation and report to Congress on the potential 
for developing rights-of-way along Bureau of Reclamation 
canals and infrastructure, including reservoirs, for solar 
or wind energy production through leasing of lands or 
other means. 
(b) REPORT.—The report to Congress shall specify— 
(1) the location of potential rights-of-way for 
energy production; 
(2) estimates of water losses due to evaporation 
that would be reduced due to shade and other bene-
fits from energy production; 
(3) the total acreage available for energy pro-
duction; 
(4) existing transmission infrastructure at such 
locations; 
(5) estimates of fair market leasing value of po-
tential energy sites; and 
(6) estimates of energy development potential 
at sites. 
SEC. 323. DEVELOPMENT OF SOLAR AND WIND ENERGY ON 
COVERED LAND. 
(a) PILOT
PROGRAM
ON
SELECTED
COVERED 
LAND.— 
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(1) ESTABLISHMENT.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary shall establish a wind and solar energy leas-
ing pilot program under which the Secretary con-
ducts lease sales of certain sites located on covered 
land for purposes of carrying out wind and solar en-
ergy projects. 
(2) SELECTION OF SITES ON COVERED LAND.— 
(A) IN GENERAL.—Not later than 90 days 
after the date the pilot program is established 
under paragraph (1), the Secretary shall select 
from covered land— 
(i) 1 site for the development of a 
solar energy project; and 
(ii) 1 site for the development of a 
wind energy project. 
(B) SITE SELECTION.—In selecting sites 
under subparagraph (A), the Secretary shall— 
(i) give a preference to sites that the 
Secretary determines— 
(I) are likely to attract a high 
level of wind and solar energy indus-
try interest; 
(II) would likely have a positive 
impact on water supply through re-
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ducing water loss from evaporation by 
providing shade and temperature re-
ductions, or beneficial impacts from 
energy production and infrastructure; 
and 
(III) would serve as models for 
the expansion of the pilot program to 
other locations if the program is ex-
panded under subsection (c); 
(ii) take into consideration the value 
of the multiple resources of the covered 
land on which such sites are located; and 
(iii) not select any site for which a 
right-of-way or special use permit for site 
testing or construction has been issued 
under title V of the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 
1761 et seq.). 
(3) LEASE SALES OF PROJECT SITES.— 
(A) IN GENERAL.—Except as provided in 
paragraph (4)(B)(i), not later than 180 days 
after the date on which sites are selected under 
paragraph (2), the Secretary shall offer each 
site for competitive leasing under such terms 
and conditions as the Secretary requires. 
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(B) BIDDING.—Bidding on a site offered 
for lease under this subsection shall be— 
(i) limited to one round; 
(ii) open only to bidders who— 
(I) submit a plan of development 
for such site together with the bid; 
and 
(II) the Secretary determines are 
qualified under subparagraph (C)(ii); 
and 
(iii) conducted using a bidding system 
selected by the Secretary, including— 
(I) a cash bonus bids system re-
quiring payment of the royalty estab-
lished under this Act; 
(II) a variable royalty bids sys-
tem based on a percentage of the 
gross proceeds from the sale of elec-
tricity produced from the site offered 
for lease, except that the royalty shall 
not be less than the royalty required 
under this Act, together with a fixed 
cash bonus; or 
(III) such other bidding system 
as ensures a fair return to the public 
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(A) the level of competitive interest; 
(B) a summary of bids and revenues re-
ceived; and 
(C) any other factors that may have im-
pacted the lease sale. 
(7) OTHER LAWS.— 
(A) COMPLIANCE
WITH
LAND
MANAGE-
MENT AND ENVIRONMENTAL LAWS.—In offer-
ing sites for lease under this subsection, the 
Secretary concerned shall comply with— 
(i) all Federal laws applicable to lands 
under the administrative jurisdiction of the 
Bureau of Land Management; and 
(ii) Federal or State environmental 
laws or any other relevant laws. 
(B) APPLICABILITY TO WIND AND SOLAR 
ENERGY
PROJECTS
UNDER
OTHER
FEDERAL 
LAWS.—Nothing in this subsection shall be con-
strued so as to prohibit the Secretary from 
issuing rights-of-way or special use permits with 
respect to wind and solar energy projects in 
compliance with other Federal laws and regula-
tions in effect on the date of the enactment of 
this Act. 
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(8) ENFORCEMENT OF FEDERAL LAND POLICY 
MANAGEMENT.— 
(A) IN
GENERAL.—Sections 302(c) and 
303 of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1732(c), 1733) 
shall apply to activities conducted on sites on 
covered land offered for lease under this sub-
section. 
(B) EFFECT ON ENFORCEMENT AUTHOR-
ITY UNDER OTHER FEDERAL LAW.—Nothing in 
this subsection shall be construed so as to re-
duce or limit the enforcement authority vested 
in the Secretary or the Attorney General on 
covered land under any other Federal law. 
(b) TEMPORARY EXTENSION OF PILOT PROGRAM.— 
Until final regulations are issued under subsection (c)(4), 
the Secretary shall continue to carry out the pilot program 
under subsection (a) on the sites offered for lease under 
such subsection. The Secretary may extend any lease 
issued for such sites under subsection (a) under the same 
terms and conditions applicable to such lease on the date 
of the lease sale as necessary until final regulations are 
issued under subsection (c)(4) with respect to such sites. 
(c) EXPANSION OF PILOT PROGRAM TO ALL COV-
ERED LAND.— 
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(1) JOINT
DETERMINATION
REQUIRED.—Not 
later than 5 years after the date of the enactment 
of this Act, the Secretary shall determine whether to 
expand the pilot program established under sub-
section (a) to apply to all covered land, including 
sites with respect to which leases were issued under 
subsection (a). In making such determination, the 
Secretary shall— 
(A) take into consideration the results of 
the pilot program; 
(B) consult with— 
(i) the heads of Federal agencies and 
relevant State agencies (including State 
fish and wildlife agencies); 
(ii) interested States, Indian tribes, 
and local governments; 
(iii) representatives of the solar and 
wind energy industries; 
(iv) representatives of the environ-
ment, conservation, and outdoor sporting 
communities; and 
(v) the public; and 
(C) consider whether such expansion— 
(i) provides an effective means of de-
veloping wind or solar energy; and 
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(ii) is in the public interest. 
(2) EXPANSION AUTHORIZED.—The Secretary 
shall expand pilot program only if the Secretary de-
termined to expand the pilot program under para-
graph (1). 
(3) REPORT ON JOINT DETERMINATION.—Not 
later than 60 days after making the determination 
under paragraph (1) to expand the pilot program, 
the Secretary shall submit to the Committee on En-
ergy and Natural Resources of the Senate and the 
Committee on Natural Resources of the House of 
Representatives a report describing the basis and 
findings for the determination. 
(4) REGULATIONS
TO
IMPLEMENT
EXPAN-
SION.—Not later than one year after making a de-
termination to expand the pilot program under para-
graph (1), the Secretary shall issue final regulations 
to implement this subtitle. 
(5) APPLICABILITY OF PROVISIONS OF PILOT 
PROGRAM TO EXPANDED PROGRAM.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), paragraphs (3), (7), and (8) 
of subsection (a) shall apply to covered land of-
fered for lease under this subsection in the 
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same manner as such paragraphs apply to sites 
offered for lease under subsection (a). 
(B) COMPETITIVE LEASING NOT REQUIRED 
UNDER
CERTAIN
CIRCUMSTANCES.—The re-
quirement under subsection (a)(3) that a lease 
be sold on a competitive basis shall not apply 
to a lease issued under this subsection if the 
Secretary determines that— 
(i) no competitive interest exists for 
the covered land offered for lease; 
(ii) the public interest would not be 
served by the competitive issuance of a 
lease with respect to such covered land; or 
(iii) the lease is for a purpose de-
scribed in paragraph (7)(A)(ii). 
(6) PAYMENTS.— 
(A) IN GENERAL.—Subject to section 324, 
the Secretary shall establish fees, bonuses, or 
other payments (except rental payments) to en-
sure a fair return to the United States for any 
lease issued under this subsection. 
(B) BONUS
BIDS.—The Secretary may 
grant credit toward any bonus bid for a quali-
fied expenditure by the holder of a lease de-
scribed in paragraph (7)(A)(ii) in any competi-
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tive lease sale held for a long-term lease of the 
covered land that is the subject of the lease de-
scribed in such paragraph. 
(C) READJUSTMENT.— 
(i) IN GENERAL.—Royalties and other 
terms and conditions of a lease issued 
under this subsection 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. 
(ii) INDEXING.—Effective on the first 
day of the first month beginning after the 
date of enactment of this Act and each 
year thereafter, the amount of royalties or 
other terms and conditions subject to read-
justment under clause (i) shall be adjusted 
to reflect changes for the 12-month period 
ending on the most recent date for which 
data are available in the Consumer Price 
Index for All Urban Consumers published 
by the Bureau of Labor Statistics of the 
Department of Labor. 
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(7) LEASE DURATION, ADMINISTRATION, AND 
READJUSTMENT.— 
(A) DURATION.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), a lease issued under this sub-
section shall be for— 
(I) an initial term of 25 years; 
and 
(II) any additional period after 
the initial 25-year term during which 
electricity is being produced annually 
in commercial quantities from the 
lease. 
(ii) DATA
COLLECTION
LEASES.—In 
the case of a lease issued under this sub-
section for the placement and operation of 
a meteorological or data collection facility 
or for the development or demonstration of 
a new wind or solar energy technology, 
such lease shall have a term of not more 
than 5 years. 
(B) ADMINISTRATION.—The Secretary of 
the Interior shall establish terms and conditions 
for the issuance, transfer, renewal, suspension, 
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and cancellation of a lease issued under this 
subsection. 
(C) 
READJUSTMENT
PROVISION
RE-
QUIRED.—Each lease issued under this sub-
section shall provide for readjustment in ac-
cordance with subparagraph (A). 
(8) SURFACE-DISTURBING
ACTIVITIES.—The 
Secretary shall issue regulations regarding surface- 
disturbing activities conducted under any lease 
issued under this subsection, including any reclama-
tion and other actions necessary to conserve and to 
offset impacts to surface resources. 
(9) SECURITY.— 
(A) IN GENERAL.—The Secretary shall re-
quire that the holder of a lease issued under 
this subsection— 
(i) furnish a surety bond or other 
form of security, as prescribed by the Sec-
retary; 
(ii) provide for the reclamation and 
restoration of the covered land that is the 
subject of the lease; and 
(iii) comply with such other require-
ments as the Secretary considers necessary 
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to protect the interests of the public and 
the United States. 
(B) PERIODIC
REVIEW.—Not less fre-
quently than once every 5 years, the Secretary 
shall conduct a review of the adequacy of the 
surety bond or other form of security provided 
by the holder of a lease issued under this sub-
section. 
SEC. 324. ROYALTIES. 
(a) IN GENERAL.—The Secretary shall require as a 
term and condition of any lease issued under section 323, 
the payment of a royalty. The Secretary shall establish 
such royalty pursuant to a rulemaking. The royalty shall 
be a percentage of the gross proceeds from the sale of elec-
tricity produced on covered land that is the subject of such 
lease, 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 or private land; and 
(3) encourages the maximum energy generation 
while disturbing the least quantity of covered land 
and other natural resources, including water. 
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(b) CONSIDERATION.—In establishing the royalty 
under subsection (a), the Secretary shall consider the rel-
ative capacity factors of wind and solar energy projects. 
(c) EXCLUSIVE
PAYMENT
ON
SALE
OF
ELEC-
TRICITY.—The royalty under subsection (a) shall be the 
only rent, royalty, or similar payment to the Federal Gov-
ernment required with respect to the sale of electricity pro-
duced under a lease issued under section 323. 
(d) ROYALTY RELIEF.—The Secretary may reduce 
the royalty rate established under subsection (a) if the 
holder of a lease issued under this Act shows by clear and 
convincing evidence that— 
(1) collection of the full royalty would unreason-
ably burden energy generation on covered land that 
is the subject of the lease; and 
(2) the royalty reduction is in the public inter-
est. 
(e) ENFORCEMENT.— 
(1) AUDITING
SYSTEM.—The Secretary shall 
establish a comprehensive inspection, collection, fis-
cal, and production accounting and auditing sys-
tem— 
(A) to accurately determine royalties, in-
terest, fines, penalties, fees, deposits, and other 
payments owed under this subtitle; and 
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(B) to collect and account for the pay-
ments in a timely manner. 
(2) APPLICABILITY OF FEDERAL OIL AND ROY-
ALTY MANAGEMENT ACT OF 1982.—The provisions of 
the Federal Oil and Gas Royalty Management Act 
of 1982 (30 U.S.C. 1701 et seq.) (including the civil 
and criminal enforcement provisions of such Act) 
shall apply to leases issued under this subtitle with 
respect to wind and solar energy projects in the 
same manner as such provisions apply to oil and gas 
leases. 
(f) REPORT ON ROYALTIES.—Not later than 5 years 
after the date of enactment of this Act and every 5 years 
thereafter, the Secretary shall submit to the Committee 
on Energy and Natural Resources of the Senate and the 
Committee on Natural Resources of the House of Rep-
resentatives a report consisting of a review of the collec-
tions and impacts of the royalties and fees collected under 
this subtitle, including— 
(1) the total revenues received (by category) on 
an annual basis as royalties from wind and solar en-
ergy development and production (specified by en-
ergy source) on covered land; 
(2) whether the revenues received for the devel-
opment of wind and solar energy development are 
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comparable to the revenues received for similar de-
velopment on State or private land; 
(3) any impact on the development of wind and 
solar energy on covered land as a result of the royal-
ties; and 
(4) any recommendations with respect to 
changes in Federal law (including regulations) relat-
ing to the amount or method of collection (including 
auditing, compliance, and enforcement) of the royal-
ties. 
(g) REGULATIONS.—Not later than one year after the 
date of the enactment of this Act, the Secretary shall issue 
final regulations to carry out this section. 
SEC. 325. DISPOSITION OF ROYALTY REVENUE. 
(a) ALLOCATION OF REVENUE.—All amounts col-
lected by the Secretary as royalties or bonuses under sub-
section (a)(5) or (c)(6) of section 323 shall be distributed 
as follows: 
(1) 25 percent shall be paid by the Secretary of 
the Treasury to States within the boundaries of 
which the royalties or bonuses are derived, to be al-
located among such States based on the percentage 
of covered land from which such royalties or bonuses 
are derived in each State. 
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(5) The remainder shall be deposited into the 
general fund of the Treasury for purposes of reduc-
ing the annual Federal budget deficit. 
(b) FISH AND WILDLIFE RESTORATION FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury a Fish and Wildlife Restoration Fund 
to be administered by the Secretary of the Interior 
for use in regions impacted by the development of 
hydropower by Federal agencies, including the Bu-
reau of Reclamation, and the development of wind or 
solar energy on Bureau of Reclamation land. 
(2) USE OF FUNDS.—The Secretary shall use 
amounts in the Fund to take actions and to make 
payments to State agencies, Federal agencies, or 
other interested persons in such regions for— 
(A) protecting and restoring important fish 
and wildlife habitat and native populations in 
such regions, including corridors, water re-
sources, and other sensitive land; and 
(B) improving fish species habitat or na-
tive population within the boundaries and down-
stream of a Bureau of Reclamation project. 
(3) AVAILABILITY OF AMOUNTS.—Amounts in 
the Fund shall be available for expenditure, in ac-
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cordance with this subsection, without further appro-
priation and without fiscal year limitation. 
(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) DEPOSIT.—Any interest earned under 
subparagraph (A) shall be deposited into the 
Fund. 
(5) MITIGATION REQUIREMENTS.—The expend-
iture of funds under this subsection shall be sepa-
rate and distinct from any mitigation requirements 
imposed pursuant to any law, regulation, or term or 
condition of any lease, right-of-way, or other author-
ization. 
(c) ALLOCATION FOR PERMITTING AFTER EXPIRA-
TION OF 15-YEAR PERIOD.— 
(1) CERTIFICATION
BY
SECRETARY.—At the 
end of the period described in subsection (a)(4), the 
Secretary shall certify whether the State offices re-
ferred to in such subsection have adequately reduced 
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the renewable energy permitting backlog referred to 
in such subsection. 
(2) ALLOCATION
AFTER
CERTIFICATION.—If 
the Secretary certifies under paragraph (1) that— 
(A) the State offices referred to in such 
paragraph have not adequately reduced the 
backlog referred to in such paragraph— 
(i) the period described in subsection 
(a)(4) shall be extended by an additional 
15-year period; and 
(ii) payments shall continue to be 
made during that period as described in 
such subsection; or 
(B) the State offices referred to in such 
paragraph have adequately reduced such back-
log— 
(i) two-thirds of the amount otherwise 
required to be paid under subsection (a)(4) 
shall be added to the amount deposited in 
the Fund established under subsection (b); 
and 
(ii) one-third of such amount shall be 
deposited into the general fund of the 
Treasury for purposes of reducing the an-
nual Federal budget deficit. 
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(d) PAYMENTS TO STATES AND COUNTIES.— 
(1) IN GENERAL.—Amounts paid to States and 
counties under subsection (a) shall be used in a 
manner that is consistent with section 35 of the 
Mineral Leasing Act (30 U.S.C. 191). 
(2) IMPACTS.—Not less than 35 percent of the 
amount paid to a State each fiscal year shall be used 
for the purposes described in subsection (b)(2). 
Subtitle D—Improved Reclamation 
Crop Data 
SEC. 331. DEFINITIONS. 
For the purposes of this subtitle: 
(1) AGRICULTURAL
WATER
CONTRACT.—The 
term ‘‘agricultural water contract’’ means any con-
tract or arrangement, including water service con-
tracts, repayment contracts, water rights settlement 
contracts, exchange contracts, or other form of 
agreement, through which agricultural users receive 
water and deliveries through a facility owned, oper-
ated, or constructed in whole or in part by the Bu-
reau of Reclamation, including contracts under the 
Reclamation Act of 1902 (ch.1093; 32 Stat. 388) as 
amended and supplemented. 
(2) 
DROUGHT
EMERGENCY.—The 
term 
‘‘drought emergency’’ means a period when a state 
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of drought emergency declared by the Governor of 
the State is in effect. 
(3) FEDERALLY
DEVELOPED
WATER
SUP-
PLIES.—The term ‘‘federally developed water sup-
plies’’ means water supplies derived from a project 
developed by the Secretary pursuant to Federal law. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the 
Commissioner of the Bureau of Reclamation. 
(5) WATER-INTENSE PERMANENT CROP.—The 
term ‘‘water-intense permanent crop’’ means any 
crop considered by the Secretary, after consultation 
with 
the 
Secretary 
of 
Agriculture, 
to 
be 
unsustainable for an area given its expected level of 
rainfall in the absence of the federally developed 
water supply. 
SEC. 332. DETERMINATION OF PLANTING OF WATER-IN-
TENSE PERMANENT CROPS. 
The Secretary shall survey agricultural water con-
tracts related to federally developed water supplies to de-
termine if water-intense permanent crops have been plant-
ed by or on behalf of the customers or beneficiaries of any 
agricultural water contract during a drought emergency. 
The survey shall include the examination of all such con-
tracts in effect at any time during the period from the 
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