(iii) not select any site for which a 
right-of-way for site testing or construction 
has been issued under title V of the Fed-
eral 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. 
(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— 
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(I) a cash bonus bids system re-
quiring payment of the royalty estab-
lished under this title; 
(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 title, together with a fixed 
cash bonus; or 
(III) such other bidding system 
as ensures a fair return to the public 
consistent with the royalty established 
under this title. 
(C) BIDDER
QUALIFICATIONS.—The Sec-
retary shall— 
(i) before conducting any lease sale 
under this subsection, establish qualifica-
tion requirements for bidders on a site of-
fered for lease that ensure that such bid-
ders, with respect to wind or solar energy 
projects— 
(I) are able to expeditiously de-
velop such a project on the site; 
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(II) possess the financial re-
sources necessary to complete such a 
project; 
(III) possess knowledge of the 
technology needed to complete such a 
project; 
(IV) meet the eligibility require-
ments for leasing under the first sec-
tion of the Mineral Leasing Act (30 
U.S.C. 181); and 
(V) possess such other qualifica-
tions as the Secretary determines are 
necessary; and 
(ii) using the requirements established 
under clause (i), determine whether a per-
son is qualified to be a bidder on a site of-
fered for lease under this subsection. 
(D) CREDIT FOR BID PREPARATION EX-
PENDITURES.—In the case of a site offered for 
lease under this subsection with respect to 
which more than one bid is submitted on the 
date of the lease sale of such site, the Secretary 
shall give credit to each person who submitted 
a bid with respect to such site for expenditures 
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such person incurred in the preparation of such 
bid. 
(E) FEES, CHARGES, AND COMMISSIONS.— 
Section 304 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1734) 
shall apply to a bid submitted under this sub-
section. 
(4) LEASE TERMS.— 
(A) IN GENERAL.—The Secretary may es-
tablish such lease terms and conditions, includ-
ing the duration of the lease with respect to any 
site offered for lease under this subsection. 
(B) SHORT-TERM LEASES FOR DATA COL-
LECTION.—In carrying out this subsection, the 
Secretary shall— 
(i) offer on a noncompetitive basis a 
short-term lease on not less than one site 
selected under paragraph (2) for purposes 
of data collection; and 
(ii) upon the expiration of the short- 
term lease, offer on a competitive basis a 
long-term lease, giving credit toward the 
bonus bid submitted with respect to the 
long-term lease to the holder of the short- 
term lease for any qualified expenditures 
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made by such holder to collect data or to 
develop the site during such short-term 
lease. 
(5) REVENUES.—Subject to section 203, the 
Secretary may collect bonus bids, royalties, fees, or 
other payments (except rental payments) with re-
spect to sites offered for lease under this subsection. 
(6) REPORT.—Not later than 90 days after the 
date on which the Secretary conducts the final lease 
sale under this subsection, the Secretary shall sub-
mit to the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Natural 
Resources of the House of Representatives a report 
on the results of each lease sale conducted under 
this subsection, including— 
(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 shall comply with— 
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(i) all Federal laws applicable to pub-
lic land or National Forest System land; 
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 with respect to wind and 
solar energy projects in compliance with other 
Federal laws and regulations in effect on the 
date of the enactment of this Act. 
(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 of-
fered for lease under this subsection. 
(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 of the Interior or the Attorney 
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General on covered land under any other Fed-
eral law. 
(b) TEMPORARY EXTENSION OF PILOT PROGRAM.— 
Until final regulations are issued under subsection (c)(4), 
the Secretary of the Interior 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 regula-
tions are issued under subsection (c)(4) with respect to 
such sites. 
(c) EXPANSION OF PILOT PROGRAM TO ALL COV-
ERED LAND.— 
(1) JOINT
DETERMINATION
REQUIRED.—Not 
later than 5 years after the date of the enactment 
of this Act, the Secretary of the Interior and the 
Secretary of Agriculture shall jointly determine 
whether to expand the pilot program established 
under subsection (a) to apply to all covered land, in-
cluding sites with respect to which leases were issued 
under subsection (a). In making such determination, 
the Secretary of the Interior and the Secretary of 
Agriculture shall— 
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(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 
(ii) is in the public interest. 
(2) EXPANSION AUTHORIZED.—The pilot pro-
gram shall be expanded only if the Secretary of the 
Interior and the Secretary of Agriculture determined 
to expand the pilot program under paragraph (1). 
(3) REPORT ON JOINT DETERMINATION.—Not 
later than 60 days after making the determination 
under paragraph (1) to expand the pilot program, 
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the Secretary of the Interior and the Secretary of 
Agriculture shall jointly submit to the Committee on 
Energy 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 of the Interior and the Sec-
retary of Agriculture shall jointly issue final regula-
tions to implement such expansion on covered land. 
(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 
same manner as such paragraphs apply to sites 
offered for lease under subsection (a), except 
that such paragraphs shall apply as if the terms 
‘‘Secretary of the Interior’’ and ‘‘Secretary’’ 
read ‘‘Secretary concerned’’. 
(B) COMPETITIVE LEASING NOT REQUIRED 
UNDER
CERTAIN
CIRCUMSTANCES.—The re-
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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 concerned 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 203, 
the Secretary of the Interior and the Secretary 
of Agriculture shall jointly establish fees, bo-
nuses, or other payments (except rental pay-
ments) to ensure a fair return to the United 
States for any lease issued under this sub-
section. 
(B) BONUS
BIDS.—The Secretary con-
cerned may grant credit toward any bonus bid 
for a qualified expenditure by the holder of a 
lease described in paragraph (7)(A)(ii) in any 
competitive lease sale held for a long-term lease 
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of the covered land that is the subject of the 
lease described 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. 
(7) LEASE DURATION, ADMINISTRATION, AND 
READJUSTMENT.— 
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(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 technology, such lease 
shall have a term of not more than 5 
years. 
(B) ADMINISTRATION.—The Secretary of 
the Interior and the Secretary of Agriculture 
shall jointly establish terms and conditions for 
the issuance, transfer, renewal, suspension, and 
cancellation of a lease issued under this sub-
section. 
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(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 of the Interior and the Secretary of Agri-
culture shall jointly issue regulations regarding sur-
face-disturbing activities conducted under any lease 
issued under this subsection, including any reclama-
tion and other actions necessary for the conservation 
of surface resources. 
(9) SECURITY.— 
(A) IN
GENERAL.—The Secretary con-
cerned shall require 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 
to protect the interests of the public and 
the United States. 
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(B) PERIODIC
REVIEW.—Not less fre-
quently than once every 5 years, the Secretary 
concerned shall conduct a review of the ade-
quacy of the surety bond or other form of secu-
rity provided by the holder of a lease issued 
under this subsection. 
SEC. 203. ROYALTIES. 
(a) IN GENERAL.—The Secretary concerned shall re-
quire as a term and condition of any lease issued under 
section 202, the payment of a royalty. The Secretary of 
the Interior and the Secretary of Agriculture shall estab-
lish such royalty pursuant to a joint rulemaking that 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. 
(b) CONSIDERATION.—In establishing the royalty 
under subsection (a), the Secretary of the Interior and the 
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Secretary of Agriculture shall consider the relative capac-
ity 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 202. 
(d) ROYALTY RELIEF.—The Secretary concerned 
may reduce the royalty rate established under subsection 
(a) if the holder of a lease issued under this title 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 of the 
Interior and the Secretary of Agriculture shall joint-
ly establish a comprehensive inspection, collection, 
fiscal, and production accounting and auditing sys-
tem— 
(A) to accurately determine royalties, in-
terest, fines, penalties, fees, deposits, and other 
payments owed under this title; 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.—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 title with re-
spect 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 of the Interior, in consultation 
with the Secretary of Agriculture, shall submit to the 
Committee on Energy and Natural Resources of the Sen-
ate and the Committee on Natural Resources of the House 
of Representatives a report consisting of a review of the 
collections and impacts of the royalties and fees collected 
under this title, including— 
(1) the total revenues received (by category) on 
an annual basis as royalties from wind, solar, and 
geothermal development and production (specified by 
energy source) on covered land; 
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(2) whether the revenues received for the devel-
opment of wind, solar, and geothermal development 
are comparable to the revenues received for similar 
development on State or private land; 
(3) any impact on the development of wind, 
solar, and geothermal development and production 
on covered land as a result of the royalties; 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 of the 
Interior and the Secretary of Agriculture shall jointly issue 
final regulations to carry out this section. 
SEC. 204. DISPOSITION OF ROYALTY REVENUE. 
(a) ALLOCATION OF REVENUE.—Effective beginning 
on the date of the enactment of this Act, all amounts col-
lected by the Secretary concerned as royalties or bonuses 
under subsection (a)(5) or (c)(6) of section 202, shall be 
distributed as follows: 
(1) Twenty-five percent shall be paid by the 
Secretary of the Treasury to States within the 
boundaries of which the royalties or bonuses are de-
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