110 HR 5805 IH: Zeroing In American Energy Act of U.S. House of Representatives 2008-04-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5805 IN THE HOUSE OF REPRESENTATIVES April 15, 2008 Mr. Pearce introduced the following bill; which was referred to the Committee on Natural Resources A BILL To establish a new solar energy future for America through public-private partnership and energy leasing for reliable and affordable energy for the American people, and for other purposes.

1.

Short title

This Act may be cited as the Zeroing In American Energy Act of 2008.

2.

Findings

The Congress makes the following findings: (1)Establishing a clean energy future requires new innovative technologies. (2)Solar energy offers the United States tremendous domestic energy opportunities. (3)The Southwestern United States is the Saudi Arabia of solar energy. (4)The publication Scientific American, in its January of 2008 issue, theorized a Grand Plan for Solar that suggests theoretically solar power could provide 69 percent of America’s electricity by 2050. (5)Establishing a new solar energy future will require a strong public-private partnership.

3.

Developing solar energy on Federal lands

(a)

In general

The Secretary of the Interior shall carry out in accordance with this section a program for the leasing of Federal lands for the the advancement, development, assessment, installation, and operation of commercial photovoltaic and concentrating solar power energy systems. (b)

Identification of lands for leasing

(1)

Lands selection

The Secretary of the Interior, acting through the Director of the Bureau of Land Management and in consultation with the Secretary of Energy, shall— (A)identify lease sites comprising a total of 6,400,000 acres of Federal lands under the jurisdiction of the Bureau of Land Management in the States of Arizona, California, New Mexico, Nevada, and Utah, that are suitable and feasible for the installation and operation of photovoltaic and concentrating solar power energy systems, subject to valid existing rights; and (B)incorporate solar energy development into the relevant agency land use and resource management plans or equivalent plans for the lands identified under subparagraph (A). (2)

Minimum and maximum acreage of sites

Each individual lease site identified under paragraph (1)(A) shall be a minimum of 1280 acres and shall not exceed 12,800 acres. (3)

Lands released for leasing

The Secretary shall release for leasing under this section lease sites identified under paragraph (1), in acreages that meet the following annual milestones: (A)By 2010, 79,012 acres. (B)By 2011, 316,049 acres. (C)By 2012, 711,111 acres. (D)By 2013, 1,300,000 acres. (E)By 2014, 2,000,000 acres. (F)By 2015, 2,800,000 acres. (G)By 2016, 3,700,000 acres. (H)By 2017, 4,650,000 acres. (I)By 2018, 5,800,000 acres. (J)By 2019, 6,400,000 acres. (4)

Lands not included

The following Federal lands shall not be included within a solar lands leasing program: (A)Components of the National Landscape Conservation System. (B)Wilderness and Wilderness Study Areas. (C)Wild and Scenic Rivers. (D)National Scenic and Historic Trails. (E)Monuments. (F)Resource Natural Areas. (c)

Competitive lease sale requirements leasing procedures

(1)

Nominations

The Secretary shall accept at any time nominations of land identified under subsection (b) for leasing under this Act, from any qualified person. (2)

Competitive Lease Sale Required

(A)

In general

Except as otherwise specifically provided by this Act, all land to be leased under this Act that is not subject to leasing under subsection (3) shall be leased to the highest responsible qualified bidder, as determined by the Secretary. (B)

Annual sales required

The Secretary shall hold a competitive lease sale under this Act at least once every year for land in a State with respect to which there is a nomination pending under paragraph (1) of land otherwise available for leasing. (3)

Noncompetitive Leasing

The Secretary shall make available for a period of 2 years for noncompetitive leasing any tract for which a competitive lease sale is held under paragraph (2), but for which the Secretary does not receive any bids in such sale. (4)

Pending Lease Applications

It shall be a priority for the Secretary to ensure timely completion of administrative actions and process applications for leasing of Federal lands described in subsection (b)(1)(A) for installation and operation of photovoltaic and concentrating solar power energy systems, that are pending on the date of enactment of this subsection. (d)

Leasing time period

Any lease of lands under this section shall be effective for a period of 30 years, with an option to renew once for an additional period of 30 years.

4.

Royalty

(a)

Reservation of Royalty

(1)

In general

Production of solar energy under a lease under this Act shall be subject to a royalty described in paragraph (2), which shall be assessed and collected by the Secretary of the Interior, acting through the Minerals Management Service. The leaseholder shall be liable for payment of such royalty. (2)

Royalty for projects under the federal solar lands leasing program

The royalty under paragraph (1) shall be— (A)0.25 percent per kw/h on energy produced undert the lease in years 1 through 5 of the lease; (B)0.5 percent per kw/h on energy produced under the lease in years 5 through 15 of the lease; (C)1 percent per kw/h on energy produced under the lease in years 15 through 30 of the lease; and (D)1 percent per kw/h on energy produced under the lease after year 30. (3)

Revenue Sharing

Of the amount received by the United States as royalty under this subsection for a leased tract— (A)one-third shall be paid to the State in which the lands are located; and (B)one-third shall be paid to the county in which the lands are located. (b)

Duties of leaseholders

(1)

Payment of royalty

A person who is required to make any royalty payment under this section shall make such payments to the United States at such times and in such manner as the Secretary may by rule prescribe. (2)

Joint and severable liability

Any person liable for royalty payments under this section who assigns any payment obligation shall remain jointly and severally liable for all royalty payments due for the claim for the period. (3)

Affirmation of payment responsibility

Any person paying royalties under this section shall file a written instrument, together with the first royalty payment, affirming that such person is responsible for making proper payments for all amounts due for all time periods for which such person has a payment responsibility. Such responsibility for the periods referred to in the preceding sentence shall include any and all additional amounts billed by the Secretary and determined to be due by final agency or judicial action. (4)

Recordkeeping

Records required by the Secretary under this section shall be maintained for 7 years after release of financial assurance unless the Secretary notifies the leaseholder that the Secretary has initiated an audit or investigation involving such records and that such records must be maintained for a longer period. In any case when an audit or investigation is underway, records shall be maintained until the Secretary releases the operator of the obligation to maintain such records. (5)

Audits

The Secretary may conduct such audits of all leaseholders directly or indirectly involved in the production of solar energy on lands leased under this section as the Secretary considers necessary for the purposes of ensuring compliance with the requirements of this section. For purposes of performing such audits, the Secretary shall, at reasonable times and upon request, have access to, and may copy, all books, papers, and other documents that relate to compliance with any provision of this section by any person. (6)

Provision of protected information

Trade secrets, proprietary, and other confidential information protected from disclosure under section 552 of title 5, United States Code, popularly known as the Freedom of Information Act, shall be made available by the Secretary to other Federal agencies as necessary to assure compliance with this Act and other Federal laws. (7)

Underreporting

(A)

Penalty

If there is any underreporting of royalty owed on energy produced under a lease for any production month by any person liable for royalty payments under this section, the Secretary shall assess a penalty of not greater than 10 percent of the amount of that underreporting. (B)

Waiver or reduction authorized

The Secretary may waive or reduce a penalty assessed under this paragraph if the person liable for royalty payments under this section corrects the underreporting before the date such person receives notice from the Secretary that an underreporting may have occurred, or before 90 days after the date of the enactment of this section, whichever is later. (C)

Waiver required

The Secretary shall waive any portion of an assessment under this paragraph attributable to that portion of the underreporting for which the person responsible for paying the royalty demonstrates that— (i)such person had written authorization from the Secretary to report royalty on the value of the production on basis on which it was reported; (ii)such person had substantial authority for reporting royalty on the value of the production on the basis on which it was reported; (iii)such person previously had notified the Secretary, in such manner as the Secretary may by rule prescribe, of relevant reasons or facts affecting the royalty treatment of specific production which led to the underreporting; or (iv)such person meets any other exception which the Secretary may, by rule, establish. (D)

Treatment as Federal share

Subsection (b)(4) shall not apply to penalties received by the United States under this paragraph. (E)

Underreporting defined

For the purposes of this subsection, the term underreporting means the difference between the royalty on the value of the production that should have been reported and the royalty on the value of the production that was reported, if the value that should have been reported is greater than the value that was reported.

5.

Programmatic environmental impact statement

(a)

In general

Not later than 18 months after the date of enactment of this Act, in accordance with section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the Secretary of the Interior shall complete a programmatic environmental impact statement for the solar leasing program under section 3. (b)

Final regulation

Not later than 6 months after the completion of the programmatic environmental impact statement under this section, the Secretary shall publish a final regulation implementing this section.

6.

Study

Not later than 2 years after the date of enactment of this Act, the Secretary of the Interior shall complete a study of— (1)Federal lands available for possible consideration of leasing for a compressed air energy storage system; (2)barriers to additional access to Federal lands for transimission of energy produced under leases awarded under the solar energy leasing program under this Act; and (3)the need for energy transmission corridors on public lands to address identified congestion or constraints.