[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3534 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3534
To provide greater efficiencies, transparency, returns, and
accountability in the administration of Federal mineral and energy
resources by consolidating administration of various Federal energy
minerals management and leasing programs into one entity to be known as
the Office of Federal Energy and Minerals Leasing of the Department of
the Interior, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 8, 2009
Mr. Rahall introduced the following bill; which was referred to the
Committee on Natural Resources
_______________________________________________________________________
A BILL
To provide greater efficiencies, transparency, returns, and
accountability in the administration of Federal mineral and energy
resources by consolidating administration of various Federal energy
minerals management and leasing programs into one entity to be known as
the Office of Federal Energy and Minerals Leasing of the Department of
the Interior, and for other purposes.
Be it enacted by the Senate and House of Representatives 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 ``Consolidated Land,
Energy, and Aquatic Resources Act of 2009''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--CONSOLIDATION OF DEPARTMENT OF THE INTERIOR ENERGY AND
MINERALS LEASING PROGRAMS
Sec. 101. Establishment of the Office of Federal Energy and Minerals
Leasing.
Sec. 102. Officers and employees.
Sec. 103. Ethics.
TITLE II--OIL AND GAS ROYALTY REFORM
Sec. 201. Amendments to definitions.
Sec. 202. Compliance reviews.
Sec. 203. Clarification of liability for royalty payments.
Sec. 204. Required recordkeeping.
Sec. 205. Fines and penalties.
Sec. 206. Interest on overpayments.
Sec. 207. Adjustments and refunds.
Sec. 208. Conforming amendment.
Sec. 209. Obligation period.
Sec. 210. Notice regarding tolling agreements and subpoenas.
Sec. 211. Appeals and final agency action.
Sec. 212. Assessments.
Sec. 213. Collection and production accountability.
Sec. 214. Natural gas reporting.
Sec. 215. Penalty for late or incorrect reporting of data.
Sec. 216. Required recordkeeping.
Sec. 217. Limitation on royalty in-kind program.
Sec. 218. Shared civil penalties.
Sec. 219. Applicability to other minerals.
Sec. 220. Entitlements.
TITLE III--OIL AND GAS LEASING REFORMS
Sec. 301. Diligent development.
Sec. 302. Reporting requirements.
Sec. 303. Notice requirements.
Sec. 304. Oil and gas leasing system.
Sec. 305. Electronic reporting.
Sec. 306. Best management practices.
Sec. 307. Coal mine methane recovery.
Sec. 308. Environmental review.
Sec. 309. Amendments to Outer Continental Shelf Lands Act.
TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION FUND
Sec. 401. Amendments to the Land and Water Conservation Fund Act of
1965.
Sec. 402. Extension of the land and water conservation fund.
Sec. 403. Permanent funding.
Sec. 404. Allocation of funds.
TITLE V--NEW ONSHORE LEASING AUTHORITY
Subtitle A--Solar and Wind Leasing
Sec. 501. Authority to issue commercial leases for wind and solar
projects on Federal lands.
Sec. 502. Land management.
Sec. 503. Revenues.
Sec. 504. Recordkeeping and reporting requirements.
Sec. 505. Audits.
Sec. 506. Trade secrets.
Sec. 507. Interest and Substantial Underreporting Assessments.
Sec. 508. Indian savings provision.
Subtitle B--Uranium Leasing
Sec. 511. Federal lands uranium leasing.
TITLE VI--OUTER CONTINENTAL SHELF COORDINATION AND PLANNING
Sec. 601. Regional Outer Continental Shelf coordination.
Sec. 602. Regional Outer Continental Shelf Councils.
Sec. 603. Regional Outer Continental Shelf strategic plans.
Sec. 604. Regulations.
Sec. 605. Ocean Resources Conservation and Assistance Fund.
Sec. 606. Waiver.
Sec. 607. Transition period.
Sec. 608. Alternative energy on the Outer Continental Shelf.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Repeal of certain taxpayer subsidized royalty relief for the
oil and gas industry.
Sec. 702. Production incentive fee.
Sec. 703. Leasing on Indian lands.
Sec. 704. Offshore aquaculture clarification.
SEC. 2. DEFINITIONS.
For the purposes of this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the National Oceanic and Atmospheric
Administration.
(2) Affected indian tribe.--The term ``affected Indian
tribe'' means an Indian tribe that has federally reserved
rights that are affirmed by treaty, statute, Executive order,
Federal court order, or other Federal law in the area at issue.
(3) Alternative energy.--The term ``alternative energy''
means electricity generated by a renewable energy resource.
(4) Coastal state.--The term ``coastal State'' has the
meaning given the term in section 304 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1453).
(5) Director.--The term ``Director'' means the Director of
the Leasing Office, except as otherwise provided in this Act.
(6) Ecosystem-based management.--The term ``ecosystem-based
management'' means an integrated approach to management that--
(A) considers the entire ecosystem, including
humans, and accounts for interactions among the
ecosystem, the range of activities affecting the
ecosystem, and the management of such activities;
(B) aims to maintain ecosystems in a healthy,
productive, sustainable, and resilient condition so
that they can provide the services humans want and
need;
(C) emphasizes the protection of ecosystem
structure, function, patterns, and important processes;
(D) considers the impacts, including cumulative
impacts, of the range of activities affecting an
ecosystem that fall within geographical boundaries of
the ecosystem;
(E) explicitly accounts for the interconnectedness
within an ecosystem, such as food webs, and
acknowledges the interconnectedness among systems, such
as between air, land, and sea; and
(F) integrates ecological, social, economic,
cultural, and institutional perspectives, recognizing
their strong interdependencies.
(7) Function.--The term ``function'' includes authorities,
powers, rights, privileges, immunities, programs, projects,
activities, duties, and responsibilities.
(8) Important ecological area.--The term ``important
ecological area'' means an area that contributes significantly
to local or larger marine ecosystem health or is an especially
unique or sensitive marine ecosystem.
(9) Indian land.--The term ``Indian land'' has the meaning
given the term in section 502(a) of title V of Public Law 109-
58 (25 U.S.C. 3501(2)).
(10) Leasing office.--The term ``Leasing Office'' means the
Office of Federal Energy and Minerals Leasing established under
this Act.
(11) Marine ecosystem health.--The term ``marine ecosystem
health'' means the ability of an ecosystem in ocean and coastal
waters to support and maintain patterns, important processes,
and productive, sustainable, and resilient communities of
organisms, having a species composition, diversity, and
functional organization resulting from the natural habitat of
the region, such that it is capable of supporting a variety of
activities and providing a complete range of ecological
benefits. Such an ecosystem would be characterized by a variety
of factors, including--
(A) a complete diversity of native species and
habitat wherein each native species is able to maintain
an abundance, population structure, and distribution
supporting its ecological and evolutionary functions,
patterns, and processes; and
(B) a physical, chemical, geological, and microbial
environment that is necessary to achieve such
diversity.
(12) Mineral.--The term ``mineral'' has the same meaning
that the term ``minerals'' has in section 2(q) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1331(q)).
(13) Nonrenewable energy resource.--The term ``nonrenewable
energy resource'' means oil and natural gas.
(14) Outer continental shelf.--The term ``Outer Continental
Shelf'' has the meaning that the term ``outer Continental
Shelf'' has in the Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.).
(15) Public land state.--The term ``public land State''
means--
(A) each of the eleven contiguous Western States
(as that term is defined in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C.
1702)); and
(B) Alaska.
(16) Regional ocean partnership.--The term ``Regional Ocean
Partnership'' means voluntary, collaborative management
initiatives developed and entered into by the Governors of two
or more coastal States or created by an interstate compact to
implement policies and activities identified under special area
management plans or other agreements developed and approved by
the Governors through authority granted to them under the
Coastal Zone Management Act (16 U.S.C. 1451 et seq.).
(17) Renewable energy resource.--The term ``renewable
energy resource'' means each of the following:
(A) Wind energy.
(B) Solar energy.
(C) Geothermal energy.
(D) Biomass or landfill gas.
(E) A hydropower resource that is a qualified
energy resource (as that term is defined in section
45(c)(1) of the Internal Revenue of 1986, as amended by
section 1301(c) of the Energy Policy Act of 2005 (119
Stat. 987)).
(F) Marine and hydrokinetic renewable energy, as
that term is defined in section 632 of the Energy
Independence and Security Act of 2007 (42 U.S.C.
17211).
(18) Secretaries.--The term ``Secretaries'' means the
Secretary of the Interior and the Secretary of Commerce.
(19) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, except as otherwise provided in this Act.
(20) Surface use plan of operations.--The term ``surface
use plan of operations'' means a plan for surface use,
disturbance, and reclamation of Federal lands for energy
development that is submitted by a lessee and approved by the
relevant land management agency.
(21) Terms defined in other law.--Each of the terms
``Federal land'', ``lease'', ``lease site'', and ``mineral
leasing law'' has the meaning that term has under the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et
seq.).
(22) Tribe.--The term ``tribe'' has the same meaning as
that term has in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b(e)).
TITLE I--CONSOLIDATION OF DEPARTMENT OF THE INTERIOR ENERGY AND
MINERALS LEASING PROGRAMS
SEC. 101. ESTABLISHMENT OF THE OFFICE OF FEDERAL ENERGY AND MINERALS
LEASING.
(a) Establishment.--There is established in the Department of the
Interior the Office of Federal Energy and Minerals Leasing, which shall
be under the direction and control of the Director.
(b) Functions.--
(1) Transferred functions.--Within 1 year after the date of
enactment of this Act, the Secretary of the Interior shall
transfer to the Director of the Leasing Office--
(A) the functions of the Minerals Management
Service as it existed on June 1, 2009, except for the
auditing and compliance management section;
(B) the functions of the Oil and Gas Management
program of the Bureau of Land Management as in
existence as of June 1, 2009, except as provided by
this Act; and
(C) any other functions assigned by the Secretary
to those programs after June 1, 2009, and before the
date of the enactment of this Act.
(2) Other functions.--In addition to the functions
transferred under paragraph (1), the functions of the Office
shall include the following:
(A) Management of the leasing and development
otherwise authorized by law of all Federal waters on
the Outer Continental Shelf for purposes of mineral,
nonrenewable, and renewable energy resource
exploration, siting, production, and development in a
manner protective of the marine, coastal, and human
environment.
(B) Management of the following leasing activities
associated with development of renewable energy
resources and oil and natural gas energy resources
located on lands managed by the Bureau of Land
Management and the Forest Service in a manner
protective of natural ecosystems and the human
environment:
(i) Establishment of fair market value for
onshore lease sales.
(ii) Conduct of lease sales.
(iii) Issuance and oversight of onshore
leases.
(iv) Issuance of permits to drill on lands
that are within areas that have been approved
for energy development by the relevant land
management agency under a surface use plan of
operations.
(v) Compliance activities, including timely
payments of rentals, royalties and other fees,
production verification, inspection and
enforcement.
(C) Administration of a program to ensure the
timely and accurate collection, distribution, and
accounting for revenues owed by holders of mineral,
renewable, and nonrenewable energy leases on Federal
lands and offshore and Indian lands.
(c) Tribal Lands.--Except as provided in subsection (b)(2)(C),
nothing in this title shall apply with respect to Indian lands.
(d) Administration.--The Office shall administer its functions by
such means as are reasonably necessary to carry out the purposes of
this Act, the Outer Continental Shelf Lands Act (43 U.S.C. 1301 et
seq.), the Mineral Leasing Act (30 U.S.C. 181 et seq.), the Mineral
Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the Federal Oil
and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.), the
Energy Policy Act of 2005 (Public Law 109-58), the Federal Oil and Gas
Royalty Simplification and Fairness Act of 1996 (Public Law 104-185),
the Forest and Rangeland Renewable Resources Planning Act of 1974 (16
U.S.C. 1600 et seq.), the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq.), and all other applicable Federal laws.
(e) Land Use Planning.--Nothing in this title affects the land use
planning authorities of the Bureau of Land Management under the Federal
Land Policy and Management Act of 1976 or of the Forest Service under
the National Forest Management Act of 1976 (Public Law 94-588).
(f) Responsibilities of Land Management Agencies.--In addition to
the land use planning responsibilities authorized under the Federal
Land Policy Management Act of 1976, the National Forest Management Act
of 1976, and the Forest and Rangeland Renewable Resources Planning Act
of 1974, the Director of the Bureau of Land Management and the Chief of
the Forest Service shall be responsible for the following activities
related to energy leasing, exploration, and development on land under
his or her authority:
(1) Establishment of best management practices for
environmentally sound energy production.
(2) Review and approval of general land use plans that
identify areas in which energy development would not conflict
with other land uses.
(3) Determination and enforcement of conditions for surface
occupancy.
(4) Authorization of any modification, waiver, or exception
to a stipulation or other condition to be included in a lease
issued by the Leasing Office.
(5) Establishment and enforcement of reclamation
requirements.
(6) Establishment and enforcement of financial assurances
that shall be sufficient to assure the completion of
reclamation and restoration satisfying the requirements of
appropriate law if the work were to be performed by the
Secretary concerned in the event of forfeiture, including the
construction and maintenance costs for any treatment facilities
necessary to meet Federal and State environmental requirements.
The calculation of such amount shall take into account the
maximum level of financial exposure that may arise during the
leasing activity and administrative costs associated with a
government agency reclaiming the site.
(7) Inspection of areas of operation to ensure that
operations are in compliance with approved surface use land
plans.
(8) Issuance of notices of noncompliance lease cancellation
for noncompliance with terms of permits and plans.
(9) Such other activities that either of the Secretaries
determines are necessary to ensure that energy development on
Bureau of Land Management and Forest Service lands is
accomplished in a manner protective of natural ecosystems and
the human environment.
(g) Inspection Authority.--The responsibilities delineated in
subsection (f) do not limit the authority of the Director of the
Leasing Office to issue notices of non-compliance, assess civil
penalties, or provide for lease cancellation in the event that an
employee of the Leasing Office identifies violations of a surface use
plan of operations while conducting production inspections or other
inspections under the auspices of the Leasing Office.
(h) Audits.--In order to ensure that the fiduciary duties of the
United States on behalf of the American people, as they relate to
development of Federal energy and mineral resources, are fully
realized, no later than one year after the date of enactment, the
Secretary shall transfer to the Inspector General of the Department of
the Interior the functions of the Audit and Compliance Management
Section of the Minerals Management Service.
SEC. 102. OFFICERS AND EMPLOYEES.
(a) Director.--
(1) Appointment.--The Director shall be appointed by the
President, by and with the advice and consent of the Senate, on
the basis of--
(A) professional competence; and
(B) capacity to--
(i) administer the provisions of this Act;
and
(ii) ensure that the fiduciary duties of
the United States Government on behalf of the
American people, as they relate to development
of energy resources, are duly met.
(2) Compensation.--The Director shall be compensated at the
rate provided for Level V of the Executive Schedule under
section 5315 of title 5, United States Code.
(3) Conforming amendment.--Section 5315 of title 5, United
States Code, is amended by adding at the end the following new
item:
``Director, Office of Federal Energy and Minerals
Leasing.''.
(b) Other Officers and Employees.--
(1) In general.--There shall also be in the Leasing Office
such subordinate officers and employees as may be appropriated
for by Congress.
(2) Transfers.--Within one year after the date of enactment
of this Act, the Secretary shall permanently transfer from the
Bureau of Land Management and the Minerals Management Service
and or other bureaus of the Department of the Interior to the
Leasing Office such personnel as necessary to administer the
programs authorized to be carried out or managed by the Leasing
Office under this Act.
(c) Regulations.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall issue regulations that--
(1) require that all Leasing Office employees that conduct
audits or compliance reviews for the Leasing Office shall meet
professional auditor qualifications that are consistent with
the latest revision of the Government Auditing Standards
published by the Government Accountability Office; and
(2) ensure that all such audits conducted by the Department
of the Interior are performed in accordance with such
standards.
SEC. 103. ETHICS.
The Secretary shall certify annually that all Leasing Office
employees having regular, direct contact with lessees and operators as
a function of their official duties are in full compliance with all
Federal employee ethics laws and regulations, under the Ethics in
Government Act of 1978 (5 U.S.C. App.) and part 2635 of title 5, Code
of Federal Regulations.
TITLE II--OIL AND GAS ROYALTY REFORM
SEC. 201. AMENDMENTS TO DEFINITIONS.
Section 3 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1702) is amended--
(1) in paragraph (8), by striking the semicolon and
inserting ``including but not limited to the Act of October 20,
1914 (38 Stat. 741); the Act of February 25, 1920 (41 Stat.
437); the Act of April 17, 1926 (44 Stat. 301); the Act of
February 7, 1927 (44 Stat. 1057); and all Acts heretofore or
hereafter enacted that are amendatory of or supplementary to
any of the foregoing Acts;''
(2) in paragraph (20)(A), by striking ``: Provided, That''
and all that follows through ``subject of the judicial
proceeding'';
(3) in paragraph (20)(B), by striking ``(with written
notice to the lessee who designated the designee)'';
(4) in paragraph (23)(A), by striking ``(with written
notice to the lessee who designated the designee)'';
(5) by striking paragraph (24) and inserting the following:
``(24) `designee' means a person who pays, offsets, or
credits monies, makes adjustments, requests and receives
refunds, or submits reports with respect to payments a lessee
must make pursuant to section 102(a);'';
(6) in paragraph (25)(B)--
(A) by striking ``(subject to the provisions of
section 102(a) of this Act)''; and
(B) in clause (ii) by striking the matter after
subclause (IV) and inserting the following:
``that arises from or relates to any lease,
easement, right-of-way, permit, or other
agreement regardless of form administered by
the Secretary for, or any mineral leasing law
related to, the exploration, production, and
development of oil and gas or other energy
resource on Federal lands or the Outer
Continental Shelf;'';
(7) in paragraph (29), by inserting ``or permit'' after
``lease''; and
(8) by striking ``and'' after the semicolon at the end of
paragraph (32), by striking the period at the end of paragraph
(33) and inserting a semicolon, and by adding at the end the
following new paragraphs:
``(34) `compliance review' means a full-scope or a limited-
scope examination of a lessee's lease accounts to compare one
or all elements of the royalty equation (volume, value, royalty
rate, and allowances) against anticipated elements of the
royalty equation to test for variances; and
``(35) `marketing affiliate' means an affiliate of a lessee
whose function is to acquire the lessee's production and to
market that production.''.
SEC. 202. COMPLIANCE REVIEWS.
Section 101 of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1711) is amended by adding at the end the following new
subsection:
``(d) The Secretary may, as an adjunct to audits of accounts for
leases, utilize compliance reviews of accounts. Such reviews shall not
constitute nor substitute for audits of lease accounts. Any disparity
uncovered in such a compliance review shall be immediately referred to
a program auditor. The Secretary shall, before completion of a
compliance review, provide notice of the review to designees whose
obligations are the subject of the review.''.
SEC. 203. CLARIFICATION OF LIABILITY FOR ROYALTY PAYMENTS.
Section 102(a) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1712(a)) is amended to read as follows:
``(a) In order to increase receipts and achieve effective
collections of royalty and other payments, a lessee who is required to
make any royalty or other payment under a lease, easement, right-of-
way, permit, or other agreement, regardless of form, or under the
mineral leasing laws, shall make such payment in the time and manner as
may be specified by the Secretary or the applicable delegated State.
Any person who pays, offsets, or credits monies, makes adjustments,
requests and receives refunds, or submits reports with respect to
payments the lessee must make is the lessee's designee under this Act.
Notwithstanding any other provision of this Act to the contrary, a
designee shall be liable for any payment obligation of any lessee on
whose behalf the designee pays royalty under the lease. The person
owning operating rights in a lease and a person owning legal record
title in a lease shall be liable for that person's pro rata share of
payment obligations under the lease.''.
SEC. 204. REQUIRED RECORDKEEPING.
Section 103(b) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1712(a)) is amended by striking ``6'' and inserting
``7''.
SEC. 205. FINES AND PENALTIES.
Section 109 of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1719) is amended--
(1) in subsection (a) in the matter following paragraph
(2), by striking ``$500'' and inserting ``$1,000'';
(2) in subsection (a)(2)(B), by inserting ``(i)'' after
``such person'', and by striking the period at the end and
inserting ``; and (ii) has not received notice, pursuant to
paragraph (1), of more than two prior violations in the current
calendar year.'';
(3) in subsection (b), by striking ``$5,000'' and inserting
``$10,000'';
(4) in subsection (c)--
(A) in paragraph (2), by striking ``; or'' and
inserting ``, including any failure or refusal to
promptly tender requested documents;'';
(B) in paragraph (3)--
(i) by striking ``$10,000'' and inserting
``$20,000''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
``(4) knowingly or willfully fails to make any royalty
payment in the amount or value as specified by statute,
regulation, order, or terms of the lease; or
``(5) fails to correctly report and timely provide
operations or financial records necessary for the Secretary or
any authorized designee of the Secretary to accomplish lease
management responsibilities,'';
(5) in subsection (d), by striking ``$25,000'' and
inserting ``$50,000'';
(6) in subsection (h), by striking ``by registered mail''
and inserting ``a common carrier that provides proof of
delivery''; and
(7) by adding at the end the following subsection:
``(l)(1) Any determination by the Secretary or a designee of the
Secretary that a person has committed a violation under subsection (a),
(c), or (d)(1) shall toll any applicable statute of limitations for all
oil and gas leases held or operated by such person, until the later
of--
``(A) the date on which the person corrects the violation
and certifies that all violations of a like nature have been
corrected for all of the oil and gas leases held or operated by
such person; or
``(B) the date a final, nonappealable order has been issued
by the Secretary or a court of competent jurisdiction.
``(2) A person determined by the Secretary or a designee of the
Secretary to have violated subsection (a), (c), or (d)(1) shall
maintain all records with respect to the person's oil and gas leases
until the later of--
``(A) the date the Secretary releases the person from the
obligation to maintain such records; and
``(B) the expiration of the period during which the records
must be maintained under section 103(b).''.
SEC. 206. INTEREST ON OVERPAYMENTS.
Section 111 of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1721) is amended--
(1) by amending subsections (h) and (i) to read as follows:
``(h) Interest shall not be allowed nor paid nor credited on any
overpayment, and no interest shall accrue from the date such
overpayment was made.
``(i) A lessee or its designee may make a payment for the
approximate amount of royalties (hereinafter in this subsection
referred to as the `estimated payment') that would otherwise be due for
such lease by the date royalties are due for that lease. When an
estimated payment is made, actual royalties are payable at the end of
the month following the month in which the estimated payment is made.
If the estimated payment was less than the amount of actual royalties
due, interest is owed on the underpaid amount. If the lessee or its
designee makes a payment for such actual royalties, the lessee or its
designee may apply the estimated payment to future royalties. Any
estimated payment may be adjusted, recouped, or reinstated by the
lessee or its designee provided such adjustment, recoupment or
reinstation is made within the limitation period for which the date
royalties were due for that lease.'';
(2) by striking subsection (j); and
(3) in subsection (k)(4)--
(A) by striking ``or overpaid royalties and
associated interest''; and
(B) by striking ``, refunded, or credited''.
SEC. 207. ADJUSTMENTS AND REFUNDS.
Section 111A of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1721a) is amended--
(1) in subsection (a)(3), by inserting ``(A)'' after
``(3)'', and by striking the last sentence and inserting the
following:
``(B) Except as provided in subparagraph (C), no
adjustment may be made with respect to an obligation
that is the subject of an audit or compliance review
after completion of the audit or compliance review,
respectively, unless such adjustment is approved by the
Secretary or the applicable delegated State, as
appropriate.
``(C) If an overpayment is identified during an
audit, the Secretary shall allow a credit in the amount
of the overpayment.'';
(2) in subsection (a)(4)--
(A) by striking ``six'' and inserting ``four''; and
(B) by striking ``shall'' and inserting ``may'';
and
(3) in subsection (b)(1) by striking ``and'' after the
semicolon at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting ``; and'',
and by adding at the end the following:
``(E) is made within the adjustment period for that
obligation.''.
SEC. 208. CONFORMING AMENDMENT.
Section 114 of the Federal Oil and Gas Royalty Management Act of
1982 is repealed.
SEC. 209. OBLIGATION PERIOD.
Section 115(c) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1724(c)) is amended by adding at the end the following
new paragraph:
``(3) Adjustments.--In the case of an adjustment under
section 111A(a) in which a recoupment by the lessee results in
an underpayment of an obligation, for purposes of this Act the
obligation becomes due on the date the lessee or its designee
makes the adjustment.''.
SEC. 210. NOTICE REGARDING TOLLING AGREEMENTS AND SUBPOENAS.
(a) Tolling Agreements.--Section 115(d)(1) of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(1)) is amended by
striking ``(with notice to the lessee who designated the designee)''.
(b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by
striking ``(with notice to the lessee who designated the designee,
which notice shall not constitute a subpoena to the lessee)''.
SEC. 211. APPEALS AND FINAL AGENCY ACTION.
Paragraphs (1) and (2) of section 115(h) the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1724(h)) are amended by
striking ``33'' each place it appears and inserting ``48''.
SEC. 212. ASSESSMENTS.
Section 116 of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1724) is repealed.
SEC. 213. COLLECTION AND PRODUCTION ACCOUNTABILITY.
(a) Pilot Project.--Within two years after the date of enactment of
this Act, the Secretary shall complete a pilot project with willing
operators of oil and gas leases on the Outer Continental Shelf that
assesses the costs and benefits of automatic transmission of oil and
gas volume and quality data produced under Federal leases on the Outer
Continental Shelf in order to improve the production verification
systems used to ensure accurate royalty collection and audit.
(b) Report.--The Secretary shall submit to Congress a report on
findings and recommendations of the pilot project within 3 years after
the date of enactment of this Act.
SEC. 214. NATURAL GAS REPORTING.
The Secretary shall, within 180 days after the date of enactment of
this Act, implement the steps necessary to ensure accurate
determination and reporting of BTU values of natural gas from all
Federal oil and gas leases to ensure accurate royalty payments to the
United States. Such steps shall include, but not be limited to--
(1) establishment of consistent guidelines for onshore and
offshore BTU information from gas producers;
(2) development of a procedure to determine the potential
BTU variability of produced natural gas on a by-reservoir or
by-lease basis;
(3) development of a procedure to adjust BTU frequency
requirements for sampling and reporting on a case-by-case
basis;
(4) systematic and regular verification of BTU information;
and
(5) revision of the ``MMS-2014'' reporting form to record,
in addition to other information already required, the natural
gas BTU values that form the basis for the required royalty
payments.
SEC. 215. PENALTY FOR LATE OR INCORRECT REPORTING OF DATA.
(a) In General.--The Secretary shall issue regulations by not later
than 1 year after the date of enactment of this Act that establish a
civil penalty for late or incorrect reporting of data under the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.).
(b) Amount.--The amount of the civil penalty shall be--
(1) an amount (subject to paragraph (2)) that the Secretary
determines is sufficient to ensure filing of data in accordance
with that Act; and
(2) not less than $10 for each failure to file correct data
in accordance with that Act.
(c) Content of Regulations.--Except as provided in subsection (b),
the regulations issued under this section shall be substantially
similar to part 216.40 of title 30, Code of Federal Regulations, as
most recently in effect before the date of enactment of this Act.
SEC. 216. REQUIRED RECORDKEEPING.
Within 1 year after the date of enactment of this Act, the
Secretary shall publish final regulations concerning required
recordkeeping of natural gas measurement data as set forth in part
250.1203 of title 30, Code of Federal Regulations (as in effect on the
date of enactment of this Act), to include operators and other persons
involved in the transporting, purchasing, or selling of gas under the
requirements of that rule, under the authority provided in section 103
of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1713).
SEC. 217. LIMITATION ON ROYALTY IN-KIND PROGRAM.
(a) Mineral Leasing Act.--Section 36 of the Mineral Leasing Act (30
U.S.C. 192) is amended by inserting before the period at the end of the
first paragraph the following: ``, except that the Secretary shall not
conduct a regular program to take oil and gas lease royalties in oil or
gas''.
(b) Outer Continental Shelf Lands Act.--Section 27(a) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353(a)) is amended by striking
so much as precedes paragraph (2) and inserting the following:
``SEC. 27. FEDERAL PURCHASE AND DISPOSITION OF OIL AND GAS.
``Except as may be necessary to comply with sections 6 and 7 of
this Act, all royalties or net profit shares, or both, accruing to the
United States under any oil and gas lease issued or maintained in
accordance with this Act, shall, on demand of the Secretary, be paid in
oil or gas, except that the Secretary shall not conduct a regular
program to take oil and gas lease royalties in oil or gas.''.
SEC. 218. SHARED CIVIL PENALTIES.
Section 206 of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1724) is amended by striking ``Such amount shall be
deleted from any compensation due such State or Indian Tribe under
section 202 or section 205 or such State under section 205.''.
SEC. 219. APPLICABILITY TO OTHER MINERALS.
Section 304 of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1753) is amended by adding at the end the following new
subsection:
``(e) Applicability to Other Minerals.--
``(1) Notwithstanding any other provision of law, sections
107, 109, and 110 of this Act and the regulations duly
promulgated with respect thereto shall apply to any lease
authorizing the development of coal or any other solid mineral
on any Federal lands or Indian lands, to the same extent as if
such lease were an oil and gas lease, on the same terms and
conditions as those authorized for oil and gas leases.
``(2) Notwithstanding any other provision of law, sections
107, 109, and 110 of this Act and the regulations duly
promulgated with respect thereto shall apply with respect to
any lease, easement, right-of-way, or other agreement,
regardless of form (including any royalty, rent, or other
payment due thereunder)--
``(A) under section 8(k) or 8(p) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(k) and
1337(p)); or
``(B) under the Geothermal Steam Act (30 U.S.C.
1001 et seq.), to the same extent as if such lease,
easement, right-of-way, or other agreement were an oil
and gas lease on the same terms and conditions as those
authorized for oil and gas leases.
``(3) For the purposes of this subsection, the term `solid
mineral' means any mineral other than oil, gas, and geo-
pressured-geothermal resources, that is authorized by an Act of
Congress to be produced from public lands (as that term is
defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)).''.
SEC. 220. ENTITLEMENTS.
Not later than 180 days after the date of enactment of this Act,
the Secretary shall publish final regulations prescribing when a
Federal lessee or designee must report and pay royalties on the volume
of oil and gas it takes under either a Federal or Indian lease or on
the volume to which it is entitled to based upon its ownership interest
in the Federal or Indian lease. The Secretary shall give consideration
to requiring 100 percent entitlement reporting and paying based upon
the lease ownership.
TITLE III--OIL AND GAS LEASING REFORMS
SEC. 301. DILIGENT DEVELOPMENT.
(a) Regulations.--The Secretary shall issue regulations within one
year after the date of enactment of this Act that define ``diligent
development'' for purposes of all new leases issued under the Mineral
Leasing Act (30 U.S.C. 181 et seq.) and all new leases issued under the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.). Such
regulations shall--
(1) include benchmarks for oil and gas development that
will ensure that leaseholders take all appropriate measures
necessary to produce oil and gas from each lease that contains
commercial quantities of oil and gas within the original term
of the lease;
(2) require each leaseholder to submit to the Secretary a
diligent development plan showing how the lessee will meet the
benchmarks;
(3) provide accommodation for development delays, including
lease suspensions, directed by the Secretary that restrict
diligent development in order to meet environmental
stipulations and considerations; and
(4) require submission of diligent development plans in an
electronic format proscribed by the Secretary, which the
Secretary shall make available for public review.
(b) Failure To Comply With Requirements.--If any person fails to
comply with the requirements of any regulation issued under this
section, or any order issued to implement such a regulation, with
respect to a lease, such lease may be terminated by the Secretary.
SEC. 302. REPORTING REQUIREMENTS.
(a) Biannual Reports.--The Secretary shall require biannual reports
from each Federal oil and gas lessee that holds a nonproducing lease on
the actions the lessee has taken to diligently develop each Federal
lease the lessee holds.
(b) Electronic Database.--The Secretary shall establish and
maintain an electronic database that is available to the public that
identifies each Federal oil and gas lease, each lessee under such
lease, the acreage held by each such lessee, and the progress made
toward production under each such lease.
SEC. 303. NOTICE REQUIREMENTS.
Section 17(f) of the Mineral Leasing Act (30 U.S.C. 226(f)) is
amended--
(1) by striking all through the first 2 sentences and
inserting the following:
``(f)(1) At least 45 days before offering lands for lease under
this section, and at least 30 days before approving applications for
permits to drill under the provisions of a lease or substantially
modifying the terms of any lease issued under this section, the
Secretary shall provide notice of the proposed action to--
``(A) the general public by posting such notice in
the appropriate local office and on the electronic
website of the leasing and land management agencies
offering the lands for lease;
``(B) all surface land owners in the area of the
lands being offered for lease; and
``(C) the holders of special recreation permits for
commercial use, competitive events, and other organized
activities on the lands being offered for lease.
``(2)''; and
(2) by designating the last sentence as paragraph (3).
SEC. 304. OIL AND GAS LEASING SYSTEM.
(a) Onshore Oil and Gas Leasing.--Section 17(a) of the Mineral
Leasing Act (30 U.S.C. 226(a)) is amended to read as follows:
``(a)(1) All lands subject to disposition under this Act that are
known or believed to contain oil or gas deposits may be leased by the
Secretary.
``(2) Leasing activities under this Act shall be conducted to
assure receipt of fair market value for the lands and resources leased
and the rights conveyed by the Federal Government.''.
(b) Competitive Bidding.--Section 17(b) of the Mineral Leasing Act
(30 U.S.C. 226(b)), is amended by striking so much as precedes
paragraph (2) and inserting the following:
``(b)(1)(A) All lands to be leased shall be leased as provided in
this paragraph to the highest responsible qualified bidder by
competitive bidding under general regulations in units of not more than
2,560 acres, except in Alaska, where units shall be not more than 5,760
acres. Such units shall be as nearly compact as possible. Lease sales
shall be conducted by sealed bid. Lease sales shall be held for a State
on a statewide basis where eligible lands in such States are available
no more than 3 times per year per State, unless the Secretary of the
Interior determines additional sales are necessary. A lease shall be
conditioned upon the payment of a royalty at a rate of not less than
12.5 percent in amount or value of the production removed or sold from
the lease. The Secretary may issue a lease to the responsible qualified
bidder with the highest bid that is equal to or greater than the
national minimum acceptable bid, with evaluation of the value of the
lands proposed for lease. The Secretary shall decide whether to accept
a bid and issue a lease within 90 days following payment by the
successful bidder of the remainder of the bonus bid, if any, and the
annual rental for the first lease year. All bids for less than the
national minimum acceptable bid shall be rejected.
``(B)(i) The national minimum acceptable bid shall be $2.50 per
acre, except that the Secretary may establish a higher minimum
acceptable bid for leases of areas in a State for all leases awarded
after the 2-year period beginning on the date of enactment of the
Consolidated Land, Energy, and Aquatic Resources Act of 2009, if the
Secretary finds that such a higher amount is necessary--
``(I) to enhance financial returns to the United States;
and
``(II) to promote more efficient management of oil and gas
resources on Federal lands.
``(ii) The proposal or promulgation of any regulation to establish
a higher minimum acceptable bid for a State shall not be considered a
major Federal action that is subject to the requirements of section
102(2)(C) of the National Environmental Policy Act of 1969.''.
(c) Rentals.--Section 17(d) of the Mineral Leasing (30 U.S.C.
226(d)) is amended to read as follows:
``(d)(1) During the 2-year period beginning on the date of
enactment of the Consolidated Land, Energy, and Aquatic Resources Act
of 2009, all leases issued under this section shall be conditioned upon
payment by the lessee of a rental of not less than $2.50 per acre per
year for the first through fifth years of the lease and not less than
$3 per acre per year for each year thereafter. After the end of such 2-
year period, the Secretary may establish higher rental rates for all
subsequent years, if the Secretary finds that such action is
necessary--
``(A) to enhance financial returns to the United States;
and
``(B) to promote more efficient management of oil and gas
and alternative energy resources on Federal lands.
``(2) A minimum royalty in lieu of rental of not less than the
rental that otherwise would be required for that lease year shall be
payable at the expiration of each lease year beginning on or after a
discovery of oil or gas in paying quantities on the land leased.''.
(d) Elimination of Noncompetitive Leasing.--The Mineral Leasing Act
is amended--
(1) in section 17(b) (30 U.S.C. 226(b)), by striking
paragraph (3);
(2) in section 17 (30 U.S.C. 226) by striking subsection
(c);
(3) in section 17(e) (30 U.S.C. 226(e))--
(A) by striking ``Competitive and noncompetitive
leases'' and inserting ``Leases''; and
(B) by striking ``competitive'';
(4) in section 31(d)(1) (30 U.S.C. 188(d)(1) by striking
``or section 17(c)'';
(5) in section 31(e) (30 U.S.C. 188(e))--
(A) in paragraph (2) by striking ``, or the
inclusion'' and all that follows and inserting a
semicolon; and
(B) in paragraph (3) by striking ``(A)'' and by
striking subparagraph (B);
(6) by striking section 31(f) (30 U.S.C. 188(f)); and
(7) in section 31(g) (30 U.S.C. 188(g))--
(A) in paragraph (1) by striking ``a competitive''
and all that follows through the semicolon and
inserting ``in the same manner as the original lease
issued pursuant to section 17;'';
(B) by striking paragraph (2); and
(C) in paragraph (3) by striking ``, applicable to
leases issued under subsection 17(c) of this Act (30
U.S.C. 226(c)) except,'' and inserting ``, except''.
SEC. 305. ELECTRONIC REPORTING.
(a) Rights-of-way.--Section 28(w) of the Mineral Leasing Act (30
U.S.C. 185(w)) is amended by adding at the end the following:
``(4) Upon request of a Committee listed under paragraph
(1), that Committee may receive notifications under this
subsection in electronic format in addition to in writing, or
in electronic format alone. The Committee shall designate to
the Secretary the appropriate individual or individuals on the
Committee to receive such electronic notices.''.
(b) Lease Reinstatement.--Section 31(e) of the Mineral Leasing Act
(30 U.S.C. 188(e)) is amended by adding at the end the following:
``Upon request of such a Committee, that Committee may receive
notifications under this subsection in electronic format in addition to
in writing, or in electronic format alone. The Committee shall
designate to the Secretary the appropriate individual or individuals on
the Committee to receive such electronic notices.''.
SEC. 306. BEST MANAGEMENT PRACTICES.
Not later than one year after the date of enactment of this Act,
the Secretary of the Interior shall promulgate final regulations that
require oil and gas operators to use best management practices that
ensure the sound, efficient, and environmentally responsible
development of oil and gas on Federal lands in a manner that avoids
where practical, minimizes, and mitigates actual and anticipated
impacts to environmental habitat functions resulting from oil and gas
development. Such regulations may allow the Secretary to approve site-
specific adjustments to address unique issues and circumstances, on a
case-by-case basis. All such regulations shall be consistent with the
United States trust responsibility to Indian tribes.
SEC. 307. COAL MINE METHANE RECOVERY.
Section 2 of the Mineral Leasing Act (30 U.S.C. 201 et seq.) is
amended by adding at the end the following:
``(e) Notwithstanding any other provision of law, any Federal coal
lease and any modification of an existing coal lease issued under this
section shall include terms that establish the following:
``(1) Coal mine methane released in conjunction with mining
activities shall be deemed to be included within the scope of
the coal lease if the United States owns both the coal and gas
resources.
``(2) Any coal lease issued on lands for which the United
States owns both the coal and gas resources shall include a
requirement that the lessee recover the coal mine methane
associated with the leased coal resources to the maximum
feasible extent, taking into account the economics of both the
mining and methane capture operations.
``(3) Prior to the issuance of a lease for recovery of coal
by deep mining operations, the Secretary shall require an
analysis to determine the extent to which coal mine methane can
be economically captured and either put to productive use or
flared. The cost of the analysis shall be paid by the lessee
and carried out by a person chosen by the Secretary with
professional qualifications in the capture of coal mine methane
and without financial or other economic ties to the lessee.
``(4) If the Secretary determines that recovery or flaring
of coal mine methane under a lease is not economically feasible
pursuant to paragraph (2), or cannot be carried out in a manner
that assures the protection of mine workers, coal mining under
such lease may proceed without requiring recovery or flaring of
the coal mine methane.
``(5) Any coal lease that involves federally owned coal and
nonfederally owned gas resources shall require the coal
operator to make a reasonable effort to negotiate an
arrangement with the gas owner in advance of conducting any
mining operations. If the coal lessee and gas owner are unable
to arrange for the joint development of the coal and coal mine
methane, and if the joint development of those resources is
economically feasible, the Secretary may seek a court order to
allow coal mining and methane capture to proceed by the coal
lessee, subject to a reasonable division of the proceeds from
the sale of the coal and methane resources.
``(6) Any assessment of fair market value required by
subsection (a)(1) shall include the value of any Federal coal
mine methane that is associated with Federal coal resources and
subject to capture and use under this section.
``(7) Any Federal coal mine methane resources that are
captured and used or sold pursuant to a Federal coal lease
shall be subject to a royalty of not less than 12.5 percent.''.
SEC. 308. ENVIRONMENTAL REVIEW.
Section 390 of the Energy Policy Act of 2005 (Public Law 109-58; 42
U.S.C. 15942) is repealed.
SEC. 309. AMENDMENTS TO OUTER CONTINENTAL SHELF LANDS ACT.
(a) Clarification Relating to Alternative Energy Development.--
Section 8(p)(1) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(p)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``or other applicable law,''; and
(2) by amending subparagraph (D) to read as follows:
``(D) use, for energy-related purposes, facilities
currently or previously used for activities authorized
under this Act, except that any oil and gas energy-
related uses shall not be authorized in areas in which
oil and gas preleasing, leasing, and related activities
are prohibited by a moratorium.''.
(b) Noncompetitive Alternative Energy Lease Options.--Section
8(p)(3) of such Act (43 U.S.C. 1337(p)(3)) is amended to read as
follows:
``(3) Competitive or noncompetitive basis.--Any lease,
easement, right-of-way, or other authorization granted under
paragraph (1) shall be issued on a competitive basis, unless--
``(A) the lease, easement, right-of-way, or other
authorization relates to a project that meets the
criteria established under section 388(d) of the Energy
Policy Act of 2005 (43 U.S.C. 1337 note; Public Law
109-58);
``(B) the lease, easement, right-of-way, or other
authorization--
``(i) is for the placement and operation of
a meteorological or marine data collection
facility; and
``(ii) has a term of not more than 5 years;
or
``(C) the Secretary determines, after providing
public notice of a proposed lease, easement, right-of-
way, or other authorization, that no competitive
interest exists.''.
(c) Outer Continental Shelf Leasing Program.--Section 18(a) of such
Act (43 U.S.C. 1344(a)) is amended by adding at the end the following
new paragraph:
``(5) If a Strategic Plan has been approved under section
603 of the Consolidated Land, Energy, and Aquatic Resources Act
of 2009 for a region of the outer Continental Shelf before
publication of a proposed leasing program under subsection
(c)(3), the Secretary--
``(A) shall not include in such leasing program any
location in such region unless it is identified in that
Strategic Plan as being suitable for oil and gas
leasing; and
``(B) shall comply with any restrictions on the
timing of leasing of such location as are recommended
in that Strategic Plan.''.
(d) Deposits Into Ocean Resources Conservation and Assistance
Fund.--Section 8 of such Act (43 U.S.C. 1337) is amended by adding at
the end the following:
``(q) Deposits Into Ocean Resources Conservation and Assistance
Fund.--For fiscal year 2009 and for each fiscal year thereafter, 10
percent of the revenues generated by this section in that fiscal year
shall be deposited in the Ocean Resources Conservation and Assistance
Fund established by section 605 of the Consolidated Land, Energy, and
Aquatic Resources Act of 2009.''.
TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION FUND
SEC. 401. AMENDMENTS TO THE LAND AND WATER CONSERVATION FUND ACT OF
1965.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.).
SEC. 402. EXTENSION OF THE LAND AND WATER CONSERVATION FUND.
Section 2 (16 U.S.C. 460l-5) is amended by striking ``September 30,
2015'' both places it appears and inserting ``September 30, 2040''.
SEC. 403. PERMANENT FUNDING.
(a) In General.--Section 3 (16 U.S.C. 460l-6) is amended to read as
follows:
``appropriations
``Sec. 3. Of the moneys covered into the fund, $900,000,000 shall
be available each fiscal year for expenditure for the purposes of this
Act without further appropriation.''.
(b) Conforming Amendment.--Section 2(c)(2) (16 U.S.C. 460l-5(c)(2))
is amended by striking ``: Provided,'' and all that follows through the
end of the sentence and inserting a period.
SEC. 404. ALLOCATION OF FUNDS.
Section 5 (16 U.S.C. 460l-7) is amended to read as follows:
``allocation
``Sec. 5. Of the amounts made available for each fiscal year to
carry out this Act--
``(1) 50 percent shall be used to provide financial
assistance to States under section 6; and
``(2) 50 percent shall be used for Federal purposes under
section 7.''.
TITLE V--NEW ONSHORE LEASING AUTHORITY
Subtitle A--Solar and Wind Leasing
SEC. 501. COMMERCIAL WIND AND SOLAR LEASING PROGRAM.
(a) In General.--Pursuant to the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.) and the National Forest Management
Act of 1976 (16 U.S.C. 1600 et seq.), the Secretary, acting through the
Director, may issue leases, on a competitive basis, for commercial
solar or wind energy development on Federal lands under the
administrative jurisdiction of the Bureau of Land Management or of the
Forest Service, except that the Secretary may not issue any such lease
on National Forest System lands over the objection of the Secretary of
Agriculture.
(b) Final Regulations.--Not later than 18 months after the date of
enactment of this Act, the Secretary of the Interior shall publish
final regulations establishing a commercial wind and solar leasing
program under subsection (a).
(c) Commencement of Commercial Leasing for Solar and Wind Energy on
Public Lands.--Not later than 90 days after completion of regulations
required under subsection (b), or as soon as practicable thereafter,
and following consultation with affected governors and other
stakeholders, the Secretary shall conduct lease sales under the
regulations under this subtitle.
(d) Easements, Special-use Permits, and Rights-of-way.--Upon
completion of regulations required under subsection (b), easements,
special-use permits, and rights-of-way shall not be available for
commercial wind and solar projects on Federal lands under the
administrative jurisdiction of the Bureau of Land Management or Forest
Service, except for the placement and operation of testing or data
collection devices or facilities that will not result in the commercial
sale of electric power.
(e) Noncompetitive Leasing.--
(1) In general.--The Secretary may issue leases under this
section on a noncompetitive basis if--
(A) the lease is for resource data collection or
equipment testing;
(B) the lease will not result in the commercial
sale of electric power;
(C) the lease has a term of not more than 5 years;
and
(D) the Secretary, after public notice of a
proposed lease, determines that there is no competitive
interest.
(2) Preference.--In any competitive lease sale for lands
subject to a lease awarded under this subsection, the Secretary
may give a preference to the holder of the lease under this
subsection.
(f) Transition to Commercial Leasing.--The Secretary of the
Interior, for lands under the jurisdiction of the Bureau of Land
Management, and the Secretary of Agriculture, for lands under the
jurisdiction of the Forest Service, may issue an easement, special-use
permit, or right-of-way for a commercial wind or solar project for
which--
(1) a plan of development has been submitted to the
relevant Secretary before the date of enactment of this Act; or
(2) a meteorological testing tower or other data collection
device has been installed under an approved easement, special-
use permit, or right-of-way before the date of enactment of
this Act.
(g) Diligent Development Requirements.--The Secretary shall, by
regulation, designate work requirements and milestones to ensure that
diligent development is carried out under each lease issued under this
subtitle.
SEC. 502. LAND MANAGEMENT.
The Secretary, in consultation with the Director of the Bureau of
Land Management and the Chief of the Forest Service, shall issue
regulations that--
(1) establish the duration of leases under this subtitle;
(2) require the holder of a lease granted under this
subtitle to--
(A) furnish a surety bond or other form of
security, as prescribed by the Director;
(B) upon completion of activities authorized by the
lease provide for--
(i) the restoration of the area that is
subject to the lease to the condition in which
the area existed before the granting of the
lease; or
(ii) mitigation activities if restoration
to such condition is impractical; and
(C) comply with such other requirements as the
Director and affected Federal land manager consider
necessary to protect the interests of the public and
the United States; and
(3) establish best management practices and require
renewable energy operators to comply with those practices to
ensure the sound, efficient, and environmentally responsible
development of wind and solar resources on Federal lands in a
manner that shall avoid, minimize, and mitigate actual and
anticipated impacts to habitat and ecosystem function resulting
from such development and to areas proposed for wilderness or
other protection.
SEC. 503. REVENUES.
(a) Establishment of Payment Requirements.--The Secretary shall
establish royalties, fees, rentals, bonus bids, or other payments for
leases issued under this subtitle, that shall--
(1) encourage development of solar and wind energy on
public lands;
(2) ensure a fair return to the United States; and
(3) be commensurate with similar payments for the
development of solar and wind energy on State and private
lands.
(b) Deposit.--All revenues for payments established under this
section shall be deposited in the general fund of the Treasury.
SEC. 504. RECORDKEEPING AND REPORTING REQUIREMENTS.
(a) In General.--A lessee, permit holder, operator, or other person
directly involved in developing, producing, processing, transporting,
purchasing, or selling renewable energy under this title, through the
point of royalty computation, shall establish and maintain any records,
make any reports, and provide any information that the Secretary may
reasonably require for the purposes of implementing this section or
determining compliance with rules or orders under this section. Such
records shall include, but not be limited to, periodic reports,
records, documents, and other data. Such reports may include, but not
be limited to, pertinent technical and financial data relating to the
resources being developed under the lease. Upon the request of any
officer or employee duly designated by the Secretary conducting an
audit or investigation pursuant to this section, the appropriate
records, reports, or information that may be required by this section
shall be made available for inspection and duplication by such officer
or employee. Failure by a claim holder, operator, or other person
referred to in the first sentence to cooperate with such an audit,
provide data required by the Secretary, or grant access to information
may, at the discretion of the Secretary, result in involuntary
forfeiture of the lease or permit.
(b) Maintenance.--Records required by the Secretary under this
section shall be maintained for 7 years after release of financial
assurance unless the Secretary notifies the operator 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.
SEC. 505. AUDITS.
The Secretary may conduct such audits of all lessees and permit
holders, operators, transporters, purchasers, processors, or other
persons directly or indirectly involved in the production or sales of
renewable energy resources covered by this Act, as the Secretary deems
necessary for the purposes of ensuring compliance with the requirements
of this title. 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.
SEC. 506. TRADE SECRETS.
Trade secrets, proprietary information, 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.
SEC. 507. INTEREST AND SUBSTANTIAL UNDERREPORTING ASSESSMENTS.
(a) Interest.--In the case of renewable energy leases or permits
under which royalty payments are not received by the Secretary on the
date that such payments are due, the Secretary shall charge interest on
such underpayments at the same interest rate as the rate applicable
under section 6621(a)(2) of the Internal Revenue Code of 1986. In the
case of an underpayment, interest shall be computed and charged only on
the amount of the deficiency and not on the total amount.
(b) Penalty.--If there is any underreporting of royalty owed on
production from a lease or permit for any production month by any
person liable for royalty payments under this title, the Secretary
shall assess a penalty of not greater than 25 percent of the amount of
that underreporting.
(c) Underreporting Defined.--For the purposes of this section, 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.
(d) Waiver or Reduction.--
(1) In general.--The Secretary may waive or reduce the
assessment provided in subsection (b) 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.
(2) Required waiver.--The Secretary shall waive any portion
of an assessment under subsection (b) attributable to that
portion of the underreporting for which the person responsible
for paying the royalty demonstrates that--
(A) such person had written authorization from the
Secretary to report royalty on the value of the
production on basis on which it was reported;
(B) such person had substantial authority for
reporting royalty on the value of the production on the
basis on which it was reported;
(C) 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 that led to
the underreporting; or
(D) such person meets any other exception that the
Secretary may, by rule, establish.
(e) Expanded Royalty Obligations.--Each person liable for royalty
payments under this section shall be jointly and severally liable for
royalty on renewable energy resources produced under a lease issued
under this Act when such loss or waste is due to negligence on the part
of any person or due to the failure to comply with any rule,
regulation, or order issued under this section.
(f) Failure To Comply With Royalty Requirements.--Any person who
fails to comply with the requirements of this section or any regulation
or order issued to implement this section shall be liable for a civil
penalty under section 109 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1719) to the same extent as if the failure to
comply occurred under that Act.
(g) Deposit of Penalties.--All penalties collected under this
subsection shall be deposited in the general fund of the Treasury.
SEC. 508. INDIAN SAVINGS PROVISION.
Nothing in this subtitle shall abridge, diminish, or alter any
right or interest of any affected Indian tribe. Nothing in this
subtitle shall authorize any Federal agency or official to abridge,
diminish, or alter any right or interest of any affected Indian tribe.
Subtitle B--Uranium Leasing
SEC. 511. FEDERAL LANDS URANIUM LEASING.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
redesignating section 44 as section 45, and by inserting after section
43 the following new section:
``SEC. 44. LEASING OF LANDS FOR URANIUM MINING.
``(a) In General.--
``(1) Withdrawal from entry; leasing requirement.--
Effective upon the date of enactment of the Consolidated Land,
Energy, and Aquatic Resources Act of 2009, all Federal lands
are hereby permanently withdrawn from location and entry under
section 2319 of the Revised Statutes (30 U.S.C. 22 et seq.) for
uranium. After the end of the 2-year period beginning on such
date of enactment, no uranium may be produced from Federal
lands except pursuant to a lease issued under this Act.
``(2) Leasing.--The Secretary--
``(A) may divide any lands subject to this Act that
are not withdrawn from mineral leasing and that are
otherwise available for uranium leasing under
applicable law, including lands available under the
terms of land use plans prepared by the Federal agency
managing the land, into leasing tracts of such size as
the Secretary finds appropriate and in the public
interest; and
``(B) thereafter shall, in the Secretary's
discretion, upon the request of any qualified applicant
or on the Secretary's own motion, from time to time,
offer such lands for uranium leasing and award uranium
leases thereon by competitive bidding.
``(b) Fair Market Value Required.--
``(1) In general.--No bid for a uranium lease shall be
accepted that is less than the fair market value, as determined
by the Secretary, of the uranium subject to the lease.
``(2) Public comment.--Prior to the Secretary's
determination of the fair market value of the uranium subject
to the lease, the Secretary shall give opportunity for and
consideration to public comments on the fair market value.
``(3) Disclosure not required.--Nothing in this section
shall be construed to require the Secretary to make public the
Secretary's judgment as to the fair market value of the uranium
to be leased, or the comments the Secretary receives thereon
prior to the issuance of the lease.
``(c) Lands Under the Jurisdiction of Other Agencies.--Leases
covering lands the surface of which is under the jurisdiction of any
Federal agency other than the Department of the Interior may be issued
only--
``(1) upon consent of the head of the other Federal agency;
and
``(2) upon such conditions the head of such other Federal
agency may prescribe with respect to the use and protection of
the nonmineral interests in those lands.
``(d) Consideration of Effects of Mining.--Before issuing any
uranium lease, the Secretary shall consider effects that mining under
the proposed lease might have on an impacted community or area,
including impacts on the environment, on agricultural, on cultural
resources, and other economic activities, and on public services.
``(e) Notice of Proposed Lease.--No lease sale shall be held for
lands until after a notice of the proposed offering for lease has been
given once a week for three consecutive weeks in a newspaper of general
circulation in the county in which the lands are situated, or in
electronic format, in accordance with regulations prescribed by the
Secretary.
``(f) Auction Requirements.--All lands to be leased under this
section shall be leased to the highest responsible qualified bidder--
``(1) under general regulations;
``(2) in units of not more than 2,560 acres that are as
nearly compact as possible; and
``(3) by oral bidding.
``(g) Required Payments.--
``(1) In general.--A lease under this section shall be
conditioned upon the payment by the lessee of--
``(A) a royalty at a rate of not less than 12.5
percent in amount or value of the production removed or
sold under the lease; and
``(B) a rental of--
``(i) not less than $2.50 per acre per year
for the first through fifth years of the lease;
and
``(ii) not less than $3 per acre per year
for each year thereafter.
``(2) Use of revenues.--Amounts received as revenues under
this subsection with respect to a lease may be used by the
Secretary of the Interior, subject to the availability of
appropriations, for cleaning up uranium mill tailings and
reclaiming abandoned uranium mines on Federal lands in
accordance with the priorities and eligibility restrictions,
respectively, under subsections (c) and (d) of section 411 of
the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1240a).
``(h) Lease Term.--A lease under this section--
``(1) shall be effective for a primary term of 10 years;
and
``(2) shall continue in effect after such primary term for
so long is as uranium is produced under the lease in paying
quantities.
``(i) Exploration Licenses.--
``(1) In general.--The Secretary may, under such
regulations as the Secretary may prescribe, issue to any person
an exploration license. No person may conduct uranium
exploration for commercial purposes on lands subject to this
Act without such an exploration license. Each exploration
license shall be for a term of not more than two years and
shall be subject to a reasonable fee. An exploration license
shall confer no right to a lease under this Act. The issuance
of exploration licenses shall not preclude the Secretary from
issuing uranium leases at such times and locations and to such
persons as the Secretary deems appropriate. No exploration
license may be issued for any land on which a uranium lease has
been issued. A separate exploration license shall be required
for exploration in each State. An application for an
exploration license shall identify general areas and probable
methods of exploration. Each exploration license shall be
limited to specific geographic areas in each State as
determined by the Secretary, and shall contain such reasonable
conditions as the Secretary may require, including conditions
to ensure the protection of the environment, and shall be
subject to all applicable Federal, State, and local laws and
regulations. Upon violation of any such conditions or laws the
Secretary may revoke the exploration license.
``(2) Limitations.--A licensee may not cause substantial
disturbance to the natural land surface. A licensee may not
remove any uranium for sale but may remove a reasonable amount
of uranium from the lands subject to this Act included under
the Secretary's license for analysis and study. A licensee must
comply with all applicable rules and regulations of the Federal
agency having jurisdiction over the surface of the lands
subject to this Act. Exploration licenses covering lands the
surface of which is under the jurisdiction of any Federal
agency other than the Department of the Interior may be issued
only upon such conditions as it may prescribe with respect to
the use and protection of the nonmineral interests in those
lands.
``(3) Sharing of data.--The licensee shall furnish to the
Secretary copies of all data (including geological,
geophysical, and core drilling analyses) obtained during such
exploration. The Secretary shall maintain the confidentiality
of all data so obtained until after the areas involved have
been leased or until such time as the Secretary determines that
making the data available to the public would not damage the
competitive position of the licensee, whichever comes first.
``(4) Exploration without a license.--Any person who
willfully conducts uranium exploration for commercial purposes
on lands subject to this Act without an exploration license
issued under this subsection shall be subject to a fine of not
more than $1,000 for each day of violation. All data collected
by such person on any Federal lands as a result of such
violation shall be made immediately available to the Secretary,
who shall make the data available to the public as soon as it
is practicable. No penalty under this subsection shall be
assessed unless such person is given notice and opportunity for
a hearing with respect to such violation.
``(j) Conversion of Mining Claims to Mineral Leases.--
``(1) In general.--The owner of any mining claim (in this
subsection referred to as a `claimant') located prior to the
date of enactment of the Consolidated Land, Energy, and Aquatic
Resources Act of 2009 may, within two years after such date,
apply to the Secretary of the Interior to convert the claim to
a lease under this section. The Secretary shall issue a uranium
lease under this section to the claimant upon a demonstration
by the claimant, to the satisfaction of the Secretary, within
one year after the date of the application to the Secretary,
that the claim was, as of such date of enactment, supported by
the discovery of a valuable deposit of uranium on the claimed
land. The holder of a lease issued upon conversion from a
mining claim under this subsection shall be subject to all the
requirements of this section governing uranium leases, except
that the holder shall pay a royalty of 6.25 percent on the
value of the uranium produced under the lease, until beginning
ten years after the date the claim is converted to a lease.
``(2) Other claims extinguished.--All mining claims located
for uranium on Federal lands whose claimant does not apply to
the Secretary for conversion to a lease, or whose claimant
cannot make such a demonstration of discovery, shall become
null and void by operation of law three years after such date
of enactment.''.
TITLE VI--OUTER CONTINENTAL SHELF COORDINATION AND PLANNING
SEC. 601. REGIONAL OUTER CONTINENTAL SHELF COORDINATION.
(a) In General.--The purpose of this title is to promote
coordinated regional planning efforts, to require that decisions are
made using the best available science, and to ensure the protection and
maintenance of ecosystem health in decisions affecting the siting of
energy facilities and development of Federal renewable and nonrenewable
energy resources on, in, or above the Outer Continental Shelf for the
long-term economic and environmental benefit of the United States.
(b) Objectives of Regional Efforts.--Such regional efforts shall
achieve the following:
(1) Greater systematic communication and coordination among
Federal, coastal State, and affected tribal governments
concerned with the siting and development of Federal renewable
and nonrenewable energy resources on, in, or above the Outer
Continental Shelf.
(2) To the maximum extent feasible, greater reliance on a
multiobjective, science- and ecosystem-based, spatially
explicit management approach that integrates regional economic,
ecological, affected tribal, and social objectives into energy
development decisions.
(3) Identification and prioritization of shared State and
Federal energy development issues.
(4) Identification of data and information needed by the
Regional Outer Continental Shelf Councils established under
section 602.
(c) Regions.--There are hereby designated the following Outer
Continental Shelf Regions:
(1) Pacific outer continental shelf region.--The Pacific
Outer Continental Shelf Region, which shall consist of the
Outer Continental Shelf adjacent to the States of Washington,
Oregon, California, and Hawaii.
(2) Gulf of mexico outer continental shelf region.--The
Gulf of Mexico Outer Continental Shelf Region, which shall
consist of the Outer Continental Shelf adjacent to the States
of Texas, Louisiana, Mississippi, and Alabama, and the west
coast of Florida.
(3) Atlantic outer continental shelf region.--The Atlantic
Outer Continental Shelf Region, which shall consist of the
Outer Continental Shelf adjacent to the States of Maine, New
Hampshire, Massachusetts, Rhode Island, Connecticut, New York,
New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North
Carolina, South Carolina, and Georgia, the east coast of
Florida, and the Straits of Florida Planning Area.
(4) Alaska outer continental shelf region.--The Alaska
Outer Continental Shelf Region, which shall consist of the
Outer Continental Shelf adjacent to the State of Alaska.
SEC. 602. REGIONAL OUTER CONTINENTAL SHELF COUNCILS.
(a) In General.--Within 180 days after the date of enactment of
this Act, the Secretary of the Interior and the Secretary of Commerce,
in consultation with the affected coastal States and affected Indian
tribes, shall establish or designate a Regional Outer Continental Shelf
Council for each of the Outer Continental Shelf Regions designated by
section 601(c).
(b) Membership.--
(1) Federal representatives.--Within 90 days after the date
of enactment of this Act, the Secretary of the Interior, in
consultation with the Secretary of Commerce, shall publish the
titles of the officials of each Federal agency and department
that shall participate in each Council. The Secretary of the
Interior, in consultation with the Secretary of Commerce, shall
include in such officials representatives of each Federal
agency and department that has expertise in energy production
facility siting and development or ocean and coastal policy, or
engages in planning, management, or scientific activities that
significantly affect or inform the use of ocean waters, coastal
waters, or ocean resources or other affected uses. The
Secretary of the Interior, or at the Secretary of the
Interior's discretion, the Secretary of Commerce, shall serve
as the chairperson of each Council.
(2) Coastal state representatives.--
(A) Notice of intent to participate.--The Governor
of each coastal State within each Outer Continental
Shelf Region designated by section 601(c) shall within
3 months after the date of enactment of this Act,
inform the Secretary and the Secretary of Commerce
whether or not the State intends to participate in the
Council for the Outer Continental Shelf Region.
(B) Appointment of responsible state official.--If
the Governor of a coastal State informs the Secretaries
in accordance with subparagraph (A) that the State
intends to participate in such Council, the Governor
shall appoint an officer or employee of the coastal
State agency with primary responsibility for overseeing
ocean and coastal policy or resource management to that
Council.
(3) Regional fisheries representation.--The Chair of each
Regional Fishery Management Council with jurisdiction in the
Outer Continental Shelf Region of a Council and the executive
director of the interstate marine fisheries commission with
jurisdiction in the Outer Continental Shelf Region of a Council
shall each serve as a member of the Council.
(4) Regional ocean partnership representation.--A
representative of any Regional Ocean Partnership that has been
established for any part of the Outer Continental Shelf Region
of a Council may appoint a representative to serve on the
Council in addition to any Federal or State appointment.
(5) Tribal representation.--An appropriate tribal official
selected by affected Indian tribes situated in the affected
Outer Continental Shelf Region may elect to appoint a
representative of such tribes collectively to serve as a member
of the Council.
(6) Other representation.--The Director shall appoint such
other representatives to serve on a Council as the Director
determines appropriate to achieve balanced representation from
the energy, shipping and transportation, marine tourism, and
recreation industries, and from marine environmental
nongovernmental organizations, and scientific and educational
authorities with expertise in energy siting and development,
land and water resource management, and conservation of ocean
and coastal species and the habitat that they depend upon.
(c) Coordination With Existing Regional Ocean Partnerships and
Other Similar Programs.--Each Council shall build upon and complement
current State, multistate, and regional capacity and governance and
institutional mechanisms to manage and protect ocean waters, coastal
waters, and ocean resources.
SEC. 603. REGIONAL OUTER CONTINENTAL SHELF STRATEGIC PLANS.
(a) Initial Outer Continental Shelf Region Assessment.--
(1) In general.--The Secretary, in consultation with the
Secretary of Commerce and the heads of other Federal agencies
authorized to provide marine ecosystem science expertise,
shall, within one year after the date of enactment of this Act,
prepare an initial assessment of each Outer Continental Shelf
Region that shall identify deficiencies in data and information
necessary to informed decisionmaking. Each initial assessment
shall to the extent feasible--
(A) identify the Region's potential alternative
energy resources and energy-related mineral resources;
(B) identify the Region's existing infrastructure
and projections for future transmission requirements;
(C) document the health and relative environmental
sensitivity of the marine ecosystem including a
comprehensive survey of species, habitats, and
indicators of ecosystem health;
(D) identify marine habitat types and important
marine ecological areas within the Region;
(E) assess the Region's marine economy and cultural
attributes; and
(F) inventory other existing uses of the Outer
Continental Shelf in the Region.
(2) Data.--Each initial assessment shall--
(A) use the best available data;
(B) collect and provide data in a spatially
explicit manner wherever practicable and provide such
data to the interagency comprehensive digital mapping
initiative as described in section 2 of Public Law 109-
58 (42 U.S.C. 15801); and
(C) make publicly available any such data that is
not classified information.
(b) Regional Outer Continental Shelf Strategic Plans.--
(1) Requirement.--Each Council shall, within 2 years after
the completion of the initial Outer Continental Shelf Region
assessment, prepare and submit to the Secretaries a
multiobjective, science and ecosystem-based, spatially
explicit, integrated marine energy and energy-related mineral
resources Strategic Plan in accordance with this subsection.
(2) Management objective.--The management objective of the
Strategic Plans under this subsection shall be to foster
sustainable development of additional energy resources from the
Outer Continental Shelf, while protecting marine ecosystem
health and sustaining the long-term economic and ecosystem
values of the oceans.
(3) Contents.--Each Strategic Plan prepared by a Council
shall--
(A) be based on the Outer Continental Shelf Region
assessment and updates for the Region under subsections
(a) and (c), respectively;
(B) foster sustainable ocean energy development in
a manner that protects the health of marine ecosystems;
(C) identify areas with potential for siting and
developing renewable and nonrenewable energy resources
in the Outer Continental Shelf Region covered by the
Strategic Plan;
(D) identify and recommend long-term monitoring
needs for ecosystem health and socioeconomic variables
within the Outer Continental Shelf Region covered by
the Strategic Plan;
(E) identify existing State and Federal regulating
authorities within the Outer Continental Shelf Region
covered by the Strategic Plan;
(F) identify best available technologies that can
minimize adverse environmental impacts of construction
and operation of energy facilities in the Region;
(G) identify additional research, information, and
data needed to carry out the Strategic Plan;
(H) identify research, information, and data needed
to carry out the Strategic Plan;
(I) identify performance measures and benchmarks
for purposes of fulfilling the responsibilities under
this section to be used to evaluate the Strategic
Plan's effectiveness; and
(J) define responsibilities and include an analysis
of the gaps in authority, coordination, and resources,
including funding, that must be filled in order to
fully achieve those performance measures and
benchmarks.
(4) Public participation.--Each Council shall provide
adequate opportunities for review and input by stakeholders and
the general public during the development of the Strategic Plan
and any Strategic Plan revisions.
(c) Updated Outer Continental Shelf Region Assessments.--The
Secretary, in consultation with the Secretary of Commerce, and in
consultation with the appropriate Council and other experts, shall
update the initial Outer Continental Shelf Region assessment prepared
under subsection (a) in coordination with each plan revision under
subsection (e), to provide more detailed information regarding the
required elements of the assessment and to include any relevant new
information that has become available in the interim.
(d) Review and Approval.--
(1) Commencement of review.--Within 10 days after
transmittal of a Strategic Plan under this section, or any
revision to such a Strategic Plan, by a Council, the Secretary,
in consultation with the Secretary of Commerce, shall commence
a review of the Strategic Plan or the revised Strategic Plan,
respectively.
(2) Public notice and comment.--Immediately after receipt
of such a Strategic Plan or revision, the Secretary, in
consultation with the Secretary of Commerce, shall publish the
Strategic Plan or revision in the Federal Register and provide
an opportunity for the submission of public comment for a 90-
day period beginning on the date of such publication.
(3) Requirements for approval.--Before approving a
Strategic Plan, or any revision to a Strategic Plan, the
Secretary, in consultation with the Secretary of Commerce, must
find that the Strategic Plan or revision--
(A) is consistent with the Outer Continental Shelf
Lands Act;
(B) complies with subsection (b); and
(C) complies with the purposes of this title as
identified in section 601(a).
(4) Deadline for completion.--Within 180 days after
transmittal of a Strategic Plan, or a revision to a Strategic
Plan, the Secretary, in consultation with the Secretary of
Commerce, shall approve or disapprove the Strategic Plan or
revision by written notice to the Council that submitted the
Strategic Plan. If the Secretary disapproves the Strategic
Plan, the Secretary, in consultation with the Secretary of
Commerce, shall transmit to the Council that submitted the
strategic Plan an identification of the deficiencies in the
Strategic Plan and recommendations to improve the Strategic
Plan. The Council shall submit a revised Strategic Plan to the
Secretaries within 180 days after the Secretary transmits such
deficiencies and recommendations.
(e) Plan Revision.--Each Strategic Plan that is approved by the
Secretary of the Interior, in consultation with the Secretary of
Commerce, shall be reviewed and revised by the relevant Council at
least once every 5 years. Such review and revision shall be based on
the most recently updated Outer Continental Shelf Region assessment.
Any proposed revisions to the Strategic Plan shall be transmitted to
the Secretaries for review and approval pursuant to this section.
SEC. 604. REGULATIONS.
The Secretaries shall issue such regulations as the Secretaries
consider necessary to ensure proper administration of this title.
SEC. 605. OCEAN RESOURCES CONSERVATION AND ASSISTANCE FUND.
(a) Establishment.--
(1) In general.--There is established in the Treasury of
the United States a separate account to be known as the Ocean
Resources Conservation and Assistance Fund (in this section
referred to as the ``ORCA Fund'').
(2) Credits.--The ORCA Fund shall be credited with amounts
as specified in subsection (q) of section 8 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337), as amended by
section 401 of this Act.
(3) Allocation of the orca fund.--
(A) In general.--Of the amounts deposited in the
ORCA Fund each fiscal year--
(i) 50 percent shall be used by the
Secretary to make grants to coastal States and
affected Indian tribes under subsection (b);
(ii) 40 percent shall be allocated by the
Secretary to the Ocean, Coastal and Great Lakes
Grants Program established by subsection (c);
and
(iii) 10 percent shall be used by the
Secretary to make grants to Regional Ocean
Partnerships under subsection (d).
(B) Availability.--Amounts deposited in the Fund
shall be available to the Secretary of Commerce (in
this section referred to as the ``Secretary'') for
allocation under subparagraph (A) without further
appropriation.
(4) Procedures.--The Secretary shall establish application,
review, oversight, financial accountability, and performance
accountability procedures for each grant program to which funds
are allocated under this subsection.
(b) Grants to Coastal States.--
(1) Grant authority.--The Secretary may use amounts
allocated under subsection (a)(3)(A)(i) to make grants to--
(A) coastal States pursuant to the formula
established under section 306(c) of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1455(c)); and
(B) to affected Indian tribes based on and
proportional to any specific coastal and ocean
management authority granted to an affected tribe
pursuant to affirmation of a Federal reserved right.
(2) Eligibility.--To be eligible to receive a grant under
this subsection, a coastal State or affected Indian tribe must
prepare and revise a 5-year plan and annual work plans that--
(A) demonstrate that activities for which the
coastal State or affected Indian tribe will use the
funds are consistent with the eligible uses of the Fund
identified in subsection (e); and
(B) provide mechanisms to ensure that funding is
made available to government, nongovernment, and
academic entities to carry out eligible activities at
the county and local level.
(3) Approval of state and affected tribal plans.--Such
plans must be submitted to and approved by the Secretary.
(4) Public input and comment.--In determining whether to
approve such plans, the Secretary shall provide opportunity
for, and take into consideration, public input and comment on
the plans from stakeholders and the general public.
(5) Use of funds.--Any amounts provided as a grant under
this subsection may only be used for activities described in
subsection (e).
(c) Ocean and Coastal Grants Program.--
(1) Establishment.--The Secretary shall establish an Ocean,
Coastal, and Great Lakes Grants Program for the purposes of
allocating funds available under subsection (a)(3)(A)(ii).
(2) Ocean, coastal, and great lakes council.--
(A) In general.--The Secretary shall establish an
Ocean, Coastal, and Great Lakes Council (in this
section referred to as the ``Council''), which shall
consist of 12 members appointed by the Secretary with
expertise in the conservation and management of ocean,
coastal, and Great Lakes ecosystems and marine
resources. In appointing members to the Council, the
Secretary shall include a balanced diversity of
representatives of relevant Federal agencies, affected
Indian tribes, the private sector, nonprofit
organizations, and academia.
(B) Terms and vacancies.--The term of office of
members of the Council shall be 3 years, except the
Secretary shall designate shorter terms of initial
members of the Council so that the terms of subsequent
members are staggered. Whenever a vacancy occurs among
members of the Council, the Secretary shall appoint an
individual to fill that vacancy for the remainder of
the applicable term.
(C) Officers of the council.--The Council shall
have a Chair and a Vice Chair, both of whom shall be
elected by the Council by and from its members. The
Chair and Vice Chair shall serve for a 3-year term,
except that the first Chair and Vice Chair may be
elected for a term of less than 3 years, as determined
by the Council. The Council may elect any other
officers it deems necessary to carry out its duties
under this Act.
(D) Quorum.--Eight members of the Council shall
constitute a quorum for the transaction of business.
(E) Meetings.--The Council shall meet at the call
of the Chair at least twice per year. Each meeting
shall be open to the public.
(F) Staff.--The Chair of the Council may hire staff
as needed within the constraints of available
administrative funds to carry out its duties under this
Act.
(G) Functions.--The Council shall--
(i) in consultation with the Secretary,
establish procedures for applying for a grant
under this subsection and criteria for
evaluating applications for such grants
consistent with subsection (e);
(ii) receive and review in accordance with
those procedures and criteria grant
applications under this subsection;
(iii) make recommendations to the Secretary
regarding which grant applications should be
funded and the amount of each grant; and
(iv) establish any specific requirements,
conditions, or limitations on a grant
application recommended for funding.
(3) Eligibility for grants.--The Secretary shall establish
criteria in consultation with the Council to determine what
persons are eligible for grants under the program. Such persons
shall include but not be limited to Federal, State, affected
tribal, and local agencies, fishery or wildlife management
organizations, nonprofit organizations, and academic
institutions.
(4) Approval of grants.--The Secretary shall approve grant
applications on the basis of the Council's recommendations. If
the Secretary disapproves a grant recommended by the Council,
the Secretary shall explain that disapproval in writing.
(5) Use of grant funds.--Any amounts provided as a grant
under this subsection may only be used for activities described
in subsection (e).
(d) Grants to Regional Ocean Partnerships.--
(1) Grant authority.--The Secretary may use amounts
allocated under subsection (a)(3)(A)(iii) to make grants to
Regional Ocean Partnerships.
(2) Eligibility.--In order to be eligible to receive funds
under subsection (a)(3)(A)(iii), a Regional Ocean Partnership
must prepare and annually revise a plan that demonstrates that
activities to be carried out with such funds are consistent
with the eligible uses of the funds identified in subsection
(e).
(3) Approval by secretary.--Such plans must be submitted to
and approved by the Secretary.
(4) Public input and comment.--In determining whether to
approve such plans, the Secretary shall provide opportunity
for, and take into consideration, input and comment on the
plans from stakeholders and the general public.
(5) Use of funds.--Any amounts provided as a grant under
this subsection may only by used for activities described in
subsection (e).
(e) Eligible Use of Funds.--Any funds made available under this
section may only be used for activities that contribute to the
conservation, protection, maintenance, and restoration of ocean,
coastal, and Great Lakes ecosystems in a manner that is consistent with
Federal environmental laws and that avoids environmental degredation,
including--
(1) activities to conserve, protect, maintain, and restore
coastal, marine, and Great Lakes ecosystem health;
(2) activities to protect marine biodiversity and living
marine and coastal resources and their habitats, including fish
populations;
(3) the development and implementation of multiobjective,
science- and ecosystem-based plans for monitoring and managing
the wide variety of uses affecting ocean, coastal, and Great
Lakes ecosystems and resources that consider cumulative impacts
and are spatially explicit where appropriate;
(4) activities to improve the resiliency of those
ecosystems;
(5) activities to improve the ability of those ecosystems
to become more resilient, and to adapt to and withstand the
impacts of climate change and ocean acidification;
(6) planning for and managing coastal development to
minimize the loss of life and property associated with global
climate change and the coastal hazards resulting from it;
(7) research, assessment, monitoring, and dissemination of
information that contributes to the achievement of these
purposes; and
(8) research of, protection of, enhancement to, and
activities to improve the resiliency of culturally significant
areas and resources.
SEC. 606. WAIVER.
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply
to the Regional Outer Continental Shelf Councils established under
section 602.
SEC. 607. TRANSITION PERIOD.
(a) Activities Before Approval of Strategic Plan.--Prior to
approval by the Secretary of a Strategic Plan for an Outer Continental
Shelf Region under section 603(d), the following activities shall not
be affected by the preparation or proposal of such a Plan:
(1) Initiation of the process to develop a new 5-year
leasing plan or amendment to such plan pursuant to section 18
of the Outer Continental Shelf Lands Act.
(2) Ongoing planning processes being conducted for that
Region pursuant to section 18 of the Outer Continental Shelf
Lands Act.
(3) Administrative procedures necessary to approve a 5-year
plan developed pursuant to section 18 of the Outer Continental
Shelf Lands Act, including approval and adoption of a 5-year
plan.
(4) Leasing activity being conducted in that Region under a
5-year leasing plan approved by the Secretary of the Interior
pursuant to section 18 of the Outer Continental Shelf Lands
Act.
(5) Other activities that the Secretary may authorize
pursuant to the Outer Continental Shelf Lands Act.
(b) Failure To Produce a Plan.--Failure by a Council to produce a
Strategic Plan for an Outer Continental Shelf Region, or failure of the
Secretary, in consultation with the Secretary of Commerce, to approve a
Strategic Plan for such a Region, shall not delay the process of
preparing and approving any new 5-year drilling plan under the Outer
Continental Shelf Lands Act and shall not delay any activities being
conducted pursuant to an existing Outer Continental Shelf leasing
program prepared and approved by the Secretary under section 18 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1344) prior to the
enactment of this Act.
SEC. 608. ALTERNATIVE ENERGY ON THE OUTER CONTINENTAL SHELF.
(a) Prior to Approval of Strategic Plan.--Prior to approval of a
Strategic Plan for an Outer Continental Shelf Region under subsection
603(d), the Secretary of the Interior shall continue to implement
without delay the rule for Renewable Energy and Alternate Uses of
Existing Facilities on the Outer Continental Shelf, as published in the
Federal Register on April 29, 2009, in that Region.
(b) Approval of Strategic Plan.--The approval of a Strategic Plan
shall not affect--
(1) projects for which leases have been obtained under that
rule prior to submittal of the Plan for approval; and
(2) tracts of the Outer Continental Shelf for which the
competitive alternative energy leasing process under that rule
has been initiated prior to submittal of the Plan for approval.
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 701. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR THE
OIL AND GAS INDUSTRY.
(a) Repeal of Provisions of Energy Policy Act of 2005.--The
following provisions of the Energy Policy Act of 2005 (Public Law 109-
58) are repealed:
(1) Section 344 (42 U.S.C. 15904; relating to incentives
for natural gas production from deep wells in shallow waters of
the Gulf of Mexico).
(2) Section 345 (42 U.S.C. 15905; relating to royalty
relief for deep water production in the Gulf of Mexico).
(b) Provisions Relating to Planning Areas Offshore Alaska.--Section
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas
offshore Alaska'' after ``West longitude''.
(c) Provisions Relating to Naval Petroleum Reserve in Alaska.--
Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as
transferred, redesignated, moved, and amended by section 347 of the
Energy Policy Act of 2005 (119 Stat. 704)) is amended--
(1) in subsection (i) by striking paragraphs (2) through
(6); and
(2) by striking subsection (k).
SEC. 702. PRODUCTION INCENTIVE FEE.
(a) Establishment.--The Secretary shall, within 180 days after the
date of enactment of this Act, issue regulations to establish an annual
production incentive fee for all leases in effect on the date of
enactment of this Act, of Federal onshore and offshore lands for
production of oil or natural gas under which production is not
occurring in commercial quantities or is not included in a unitization
agreement under which production is not occuring in commercial
quantities.
(b) Amount.--The amount of the fee shall be, for each acre that is
subject to a lease from which oil or natural gas is not produced in a
calendar year, $4 per acre in 2009 dollars.
(c) Assessment and Collection.--The Secretary shall assess and
collect the fee established under this section.
(d) Regulations.--The Secretary may issue regulations to prevent
evasion of the fee under this section.
SEC. 703. LEASING ON INDIAN LANDS.
Nothing in this Act modifies, amends, or affects leasing on Indian
lands as currently carried out by the Bureau of Indian Affairs.
SEC. 704. OFFSHORE AQUACULTURE CLARIFICATION.
(a) No Authority.--The Secretary of Commerce, the Administrator of
the National Oceanic and Atmospheric Administration, or the Regional
Fishery Management Councils shall not develop or approve a fishery
management plan or fishery management plan amendment to permit or
regulate offshore aquaculture.
(b) Permits Invalid.--Any permit issued for the conduct of offshore
aquaculture, including the siting or operation of offshore aquaculture
facilities, under the Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1801 et seq.) shall be invalid upon enactment
of this Act.
(c) Definitions.--In this section:
(1) Offshore aquaculture.--The term ``offshore
aquaculture'' means all activities related to--
(A) the placement of any installation, facility, or
structure in the exclusive economic zone for the
purposes of propagation or rearing, or attempting to
propagate or rear, any species; or
(B) the operation of offshore aquaculture
facilities in the exclusive economic zone involved in
the propagation or rearing, or attempted propagation or
rearing, of species.
(2) Offshore aquaculture facility.--The term ``offshore
aquaculture facility'' means--
(A) a structure, installation, or other complex
used, in whole or in part, for offshore aquaculture; or
(B) an area of the seabed or the subsoil used for
offshore aquaculture.
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