[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3587 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3587

  To require the Secretary of the Interior to establish a competitive 
leasing program for wind and solar energy development on Federal land, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2010

 Mr. Reid (for himself and Mr. Tester) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To require the Secretary of the Interior to establish a competitive 
leasing program for wind and solar energy development on Federal land, 
                        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.

    This Act may be cited as the ``Clean Energy, Community Investment, 
and Wildlife Conservation Act''.

SEC. 2. DEVELOPMENT OF WIND AND SOLAR ENERGY ON FEDERAL LAND.

    (a) Definitions.--In this section:
            (1) Federal land.--The term ``Federal land'' means any 
        Federal land under the administrative jurisdiction of the 
        Bureau of Land Management or the Forest Service.
            (2) Fund.--The term ``Fund'' means the Renewable Energy 
        Mitigation and Fish and Wildlife Fund established by section 
        3(b).
            (3) Pilot program.--The term ``pilot program'' means the 
        wind and solar leasing pilot program established under 
        subsection (b).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (5) State.--The term ``State'' means the State within the 
        boundaries of which income is derived under a lease issued 
        under this section.
    (b) Wind and Solar Leasing Pilot Program.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish a wind and 
        solar leasing pilot program for Federal land.
            (2) Selection of sites.--
                    (A) In general.--Not later than 90 days after the 
                date on which the pilot program is established, the 
                Secretary shall select not fewer than 2 sites that are 
                appropriate for the development of a solar energy 
                project, and not fewer than 2 sites that are 
                appropriate for the development of a wind energy 
                project, on Federal land as part of the pilot program.
                    (B) Site selection.--In carrying out subparagraph 
                (A), the Secretary shall seek to select sites on 
                Federal land--
                            (i) for which there is likely to be a high 
                        level of industry interest; and
                            (ii) that has comparatively low value for 
                        other resources.
                    (C) Exclusions.--For purposes of this Act only, 
                Federal land suitable for wind and solar development 
                does not include--
                            (i) any unit of the National Wildlife 
                        Refuge System;
                            (ii) any component of the National Wild and 
                        Scenic Rivers System;
                            (iii) any part of the National Landscape 
                        Conservation System;
                            (iv) any designated wilderness area, 
                        wilderness study area, or other area managed 
                        for wilderness characteristics;
                            (v) any inventoried roadless area within 
                        the National Forest System;
                            (vi) any National Historic Landmark;
                            (vii) any National Historic District or an 
                        Archaeological District eligible for or listed 
                        in the National Register of Historic Places; or
                            (viii) other sensitive land, as determined 
                        by the Secretary.
                    (D) Coordination with counties.--In selecting sites 
                under the pilot program, the Secretary shall--
                            (i) coordinate site selection activities 
                        with the county and State land management and 
                        wildlife agencies in whose jurisdiction the 
                        Federal land is located; and
                            (ii) take into consideration local land use 
                        planning and zoning requirements and 
                        recommendations.
            (3) Consultation.--In establishing the pilot program and 
        the wind or solar leasing programs under subsection (c), the 
        Secretary shall consult with--
                    (A) appropriate Federal agencies, including the 
                Department of Defense;
                    (B) affected States and counties;
                    (C) Indian tribes;
                    (D) representatives of the wind and solar 
                industries;
                    (E) representatives of the environmental, 
                conservation, and fish and wildlife conservation 
                communities;
                    (F) representatives of the motorized and 
                nonmotorized outdoor recreation communities;
                    (G) representatives of the ranching and 
                agricultural communities; and
                    (H) the public.
            (4) Wind and solar lease sales.--
                    (A) In general.--Except as provided in subparagraph 
                (C)(ii), not later than 180 days after the date on 
                which sites are selected under paragraph (2), the 
                Secretary shall offer each site for competitive leasing 
                to qualified bidders under such terms and conditions as 
                are required by the Secretary.
                    (B) Bidding systems.--In offering the sites for 
                lease, the Secretary--
                            (i) may vary the bidding systems to be used 
                        at each lease sale; but
                            (ii) shall limit bidding to 1 round in any 
                        lease sale.
                    (C) Lease terms.--
                            (i) In general.--As part of the pilot 
                        program, the Secretary may vary the length of 
                        the lease terms and establish such other lease 
                        terms and conditions as the Secretary considers 
                        appropriate.
                            (ii) Data collection.--As part of the pilot 
                        program, the Secretary shall--
                                    (I) offer on a noncompetitive basis 
                                on at least 1 site a short-term lease 
                                for data collection; and
                                    (II) on the expiration of the 
                                short-term lease, offer on a 
                                competitive basis a long-term lease, 
                                giving credit toward the bonus bid to 
                                the holder of the short-term lease for 
                                any qualified expenditures to collect 
                                data to develop the site during the 
                                short-term lease.
                    (D) Qualifications.--Prior to any lease sale, the 
                Secretary shall establish qualifications for bidders 
                that ensures bidders--
                            (i) are able to expeditiously develop a 
                        wind or solar energy project on the site for 
                        lease; and
                            (ii) possess--
                                    (I) financial resources necessary 
                                to complete a project;
                                    (II) knowledge of the applicable 
                                technology; and
                                    (III) such other qualifications as 
                                determined appropriate by the 
                                Secretary.
            (5) Compliance with laws.--In offering for lease the 
        selected sites under (4), the Secretary shall comply with all 
        applicable environmental and other laws.
            (6) Report.--The Secretary shall--
                    (A) compile a report of the results of each lease 
                sale under the pilot program, including--
                            (i) the level of competitive interest;
                            (ii) a summary of bids and revenues 
                        received; and
                            (iii) any other factors that may have 
                        impacted the lease sale process; and
                    (B) not later than 90 days after the final lease 
                sale, submit to the Committee on Energy and Natural 
                Resources of the Senate and the Committee on Natural 
                Resources of the House of Representatives the report 
                described in subparagraph (A).
    (c) Leasing Program for Wind and Solar Energy.--
            (1) Determinations.--
                    (A) In general.--Not later than 2 years after the 
                date of enactment of this Act, the Secretary shall 
                determine whether to establish leasing programs under 
                this section for wind and solar energy.
                    (B) Requirements.--Not later than 180 days after 
                the date on which any determination under subparagraph 
                (A) is made, the Secretary shall establish a leasing 
                program if the Secretary determines that the program--
                            (i) is in the public interest; and
                            (ii) provides an effective means of 
                        developing wind or solar energy on Federal 
                        land.
                    (C) Report.--If the Secretary determines that a 
                leasing program should not be established, not later 
                than 60 days after the date of the determination, the 
                Secretary shall submit to the Committee on Energy and 
                Natural Resources of the Senate and the Committee on 
                Natural Resources of the House of Representatives a 
                report describing the reasons and findings for that 
                determination.
            (2) Leases for certain federal land.--
                    (A) In general.--If the Secretary makes the 
                determination to establish a leasing program under this 
                section, except as provided in subparagraph (B) and 
                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 may develop policy and regulations for, 
                and issue leases on, Federal land under the 
                administrative jurisdiction of the Bureau of Land 
                Management and the Forest Service.
                    (B) Exception.--The Secretary may not issue any 
                lease on National Forest System land under subparagraph 
                (A) over the objection of the Secretary of Agriculture.
            (3) Consultation and considerations.--In making the 
        determinations required under this subsection, the Secretary 
        shall--
                    (A) consult with--
                            (i) appropriate Federal agencies, including 
                        the Department of Defense;
                            (ii) affected States and counties;
                            (iii) Indian tribes;
                            (iv) representatives of the wind and solar 
                        industry;
                            (v) representatives of the environmental, 
                        conservation, and fish and wildlife 
                        conservation communities;
                            (vi) representatives of the motorized and 
                        nonmotorized outdoor recreation communities;
                            (vii) representatives of the ranching and 
                        agricultural communities; and
                            (viii) the public; and
                    (B) consider the results of the report provided 
                under subsection (b)(6) and the results of the pilot 
                program.
            (4) Requirements.--If the Secretary determines under this 
        subsection that a leasing program should be established, the 
        program shall be carried out in accordance with subsections (d) 
        through (i).
    (d) Competitive Leases.--
            (1) In general.--Except as provided in paragraph (2), 
        leases for wind or solar energy development under this section 
        shall be issued on a competitive basis with a single round of 
        bidding in any lease sale.
            (2) Exceptions.--Paragraph (1) shall not apply to Federal 
        land if the Secretary determines that--
                    (A) there is no competitive interest for the 
                Federal land;
                    (B) the public interest would not be served by the 
                competitive issuance of a lease;
                    (C) the lease is for the placement and operation of 
                a meteorological or data collection facility or for the 
                development or demonstration of a new wind or solar 
                technology and has a term of not more than 5 years;
                    (D) meteorological testing tower or other data 
                collection device has been installed under an approved 
                easement, special-use permit, or right-of-way issued 
                before the date of enactment of this Act; or
                    (E) the Federal land is eligible to be granted a 
                noncompetitive lease under subsection (e)(3).
    (e) Transition to Leasing.--
            (1) In general.--The Secretary shall continue to accept 
        applications for rights-of-way, review the applications, and 
        provide for the issuance of rights-of-way for the development 
        of wind or solar energy on Federal land in accordance with each 
        requirement described in title V of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1761 et seq.) during the 
        pilot program and until the Secretary determines to establish 
        wind and solar leasing programs under subsection (c).
            (2) Administration.--If the Secretary determines under 
        subsection (c) that a leasing program should be established, 
        the Secretary shall provide for a reasonable transition from 
        the use of rights-of-way to leases, taking into account 
        paragraphs (3) and (4) and the status of the project, including 
        whether--
                    (A) rights-of-way for testing or construction have 
                been granted;
                    (B) a plan of development has been submitted; or
                    (C) a draft environmental impact statement has been 
                published.
            (3) Existing rights-of-way.--
                    (A) In general.--Effective beginning on the date on 
                which the wind and solar leasing programs are 
                established, the Secretary shall not renew an existing 
                right-of-way authorization for wind and solar energy 
                development at the end of the term of the 
                authorization.
                    (B) Lease.--
                            (i) In general.--Subject to clause (ii), at 
                        the end of the term of the right-of-way 
                        authorization for the wind or solar energy 
                        project, the Secretary may grant, without a 
                        competitive process, a lease to the holder of 
                        the right-of-way for the same Federal land as 
                        was authorized under the right-of-way 
                        authorization.
                            (ii) Terms and conditions.--Any lease 
                        described in clause (i) shall be subject to the 
                        terms and conditions generally applicable to 
                        other lease sales for similar projects at the 
                        time the lease is issued.
            (4) Pending rights-of-way.--Effective beginning on the date 
        on which the wind and solar leasing programs are established, 
        the Secretary may provide any applicant that has filed a plan 
        of development for a right-of-way for a wind or solar energy 
        project with an option to acquire a noncompetitive lease, under 
        such terms and conditions as are required by this section and 
        the Secretary, for the same Federal land included in the plan 
        of development, if--
                    (A) the plan of development has been determined by 
                the Secretary to be adequate for the initiation of 
                environmental review; and
                    (B) granting the lease is consistent with all 
                applicable land use planning, environmental, and other 
                laws.
    (f) Requirements.--If the Secretary establishes a leasing program 
under subsection (c), the Secretary shall ensure that any activity 
under the wind and solar leasing program is carried out in a manner 
that--
            (1) is consistent with all applicable land use planning, 
        environmental, and other laws; and
            (2) provides for--
                    (A) safety;
                    (B) protection of the environment;
                    (C) prevention of waste;
                    (D) diligent development of the resource, with 
                specific milestones determined by the Secretary;
                    (E) coordination with applicable Federal agencies;
                    (F) use of best management practices, including 
                planning and practices for mitigation of impacts;
                    (G) public notice and comment on any proposal 
                submitted for a lease under this section;
                    (H) oversight, inspection, research, monitoring, 
                and enforcement relating to a lease under this section;
                    (I) protection of fish and wildlife habitat; and
                    (J) efficient use of water resources.
    (g) Lease Duration, Suspension, and Cancellation.--
            (1) In general.--If the Secretary establishes a leasing 
        program under subsection (c), subject to paragraph (2), the 
        Secretary shall establish terms and conditions for the 
        duration, issuance, transfer, renewal, suspension, and 
        cancellation of a lease under this section.
            (2) Minimum term.--A wind or solar project with a total 
        capacity of 100 megawatts or more shall be leased for not less 
        than 30 years under this section.
    (h) Security.--If the Secretary establishes a leasing program under 
subsection (c), the Secretary shall require the holder of a lease 
issued under this section--
            (1) to furnish a reclamation bond or other form of security 
        determined to be appropriate by the Secretary;
            (2) on completion of the activities authorized by the 
        lease--
                    (A) to restore the Federal land that is subject to 
                the lease to the condition in which the Federal land 
                existed before the lease was granted; or
                    (B) to conduct mitigation activities (or payment of 
                funds to be transferred to the Fund in lieu of the 
                activities) if the Secretary determines that 
                restoration of the Federal land to the condition 
                described in subparagraph (A) is impracticable; and
            (3) to comply with such other requirements as the Secretary 
        considers necessary to protect the interests of the public and 
        the United States.
    (i) Best Management Practices.--The Secretary shall--
            (1) establish best management practices to ensure the 
        sound, efficient, and environmentally responsible development 
        of wind and solar resources on the Federal land in a manner 
        that will minimize consumptive water use, and avoid, minimize, 
        and mitigate actual and anticipated impacts to fish and 
        wildlife habitat and ecosystem function, resulting from 
        development under a lease issued under this section; and
            (2) include--
                    (A) provisions in the lease requiring renewable 
                energy operators to comply with the practices 
                established under paragraph (1); and
                    (B) such other provisions as the Secretary 
                considers appropriate.
    (j) Payments.--
            (1) In general.--The Secretary shall establish royalties, 
        fees, rentals, bonuses, or other payments to ensure a fair 
        return to the United States, States, and counties for any 
        right-of-way or lease issued for a wind or solar project on 
        Federal land.
            (2) Collection of payments.--
                    (A) In general.--Prior to the collection of 
                royalties under paragraph (4), the Secretary shall 
                collect payments for wind and solar projects in 
                accordance with section 504(g) of the Federal Land 
                Policy and Management Act of 1976 (43 U.S.C. 1764(g)).
                    (B) Exception.--Wind or solar energy leases issued 
                under this section shall not be subject to the rental 
                fee exemption for rights-of-way under section 504(g) of 
                the Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1764(g)).
            (3) Bonus bids.--The Secretary may grant credit toward any 
        bonus bid for a qualified expenditure by the holder of a lease 
        described in subsection (d)(2)(C) in any competitive lease sale 
        held for a long-term lease covering the same Federal land 
        covered by the lease described in subsection (d)(2)(C).
            (4) Royalties.--Except as provided in paragraph (6), the 
        Secretary shall develop and enforce a royalty on electricity 
        produced by wind and solar projects on Federal land that--
                    (A) encourages production of wind or solar energy;
                    (B) encourages the maximum energy generation using 
                the least quantity of Federal land and other natural 
                resources, including water;
                    (C) ensures a fair return (comparable to the return 
                that would be obtained on State and private land) to 
                the public, States, and counties eligible to receive a 
                portion of the revenues under section 3(a); and
                    (D) encourages the use of energy storage 
                technologies that increase the capacity factor of wind 
                or solar energy generation facilities.
            (5) Rulemaking.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall complete a 
        rulemaking for wind energy and solar energy royalty rates.
            (6) Royalty relief.--Subject to paragraph (2)(B), to 
        promote the greatest generation of renewable energy, the 
        Secretary may, until fiscal year 2040, provide that no royalty 
        or a reduced royalty is required for a period not to exceed 5 
        years beginning on the date on which wind or solar generation 
        is initially commenced on the Federal land.
    (k) Segregation From Appropriation Under Mining and Federal Land 
Laws.--
            (1) In general.--On selection of Federal land for leasing 
        under this section, the Secretary may temporarily segregate the 
        selected Federal land from appropriation under the mining and 
        public land laws.
            (2) Administration.--Segregation of Federal land under this 
        subsection--
                    (A) may only be made for a period of not to exceed 
                10 years; and
                    (B) shall be subject to valid existing rights as of 
                the date of the segregation.

SEC. 3. DISPOSITION OF REVENUE.

    (a) Distribution of Proceeds and Payments.--
            (1) In general.--Effective beginning on the date of 
        enactment of this Act, all amounts collected by the Secretary 
        as royalties, fees, rentals, bonuses, or other payments for 
        wind and solar projects on Federal land, including any fees 
        associated with wind and solar energy rights-of-way, shall be 
        distributed as follows:
                    (A) 25 percent shall be paid by the Secretary of 
                the Treasury to the State within the boundaries of 
                which the income is derived.
                    (B) 25 percent shall be paid by the Secretary of 
                the Treasury to the 1 or more counties within the 
                boundaries of which the income is derived.
                    (C) 15 percent shall--
                            (i) for the period beginning on the date of 
                        enactment of this Act and ending on the date 
                        specified in clause (ii), be deposited in the 
                        Treasury of the United States to help 
                        facilitate the processing of renewable energy 
                        permits by the Bureau of Land Management, 
                        subject to paragraph (2)(A)(i), including the 
                        transfer of the funds by the Bureau of Land 
                        Management to other Federal and State agencies 
                        to facilitate the processing of renewable 
                        energy permits on Federal land; and
                            (ii) beginning on the date that is 10 years 
                        after the date of enactment of this Act, be 
                        deposited in the Fund.
                    (D) 35 percent shall be deposited in the Fund.
            (2) Limitations.--
                    (A) Renewable energy permits.--For purposes of 
                clause (i) of paragraph (1)(C):
                            (i) Not more than $50,000,000 shall be 
                        deposited in the Treasury at any 1 time under 
                        that clause.
                            (ii) The following shall be deposited in 
                        the Fund:
                                    (I) Any amounts collected under 
                                that subclause that are not obligated 
                                by the date specified in paragraph 
                                (1)(C)(ii).
                                    (II) Any amounts that exceed the 
                                $50,000,000 deposit limit under clause 
                                (i).
                                    (III) Any amounts provided by the 
                                lease holder pursuant to section 
                                2(h)(2)(B).
                    (B) Fund.--Any amounts deposited in the Fund under 
                subparagraph (A)(ii) or paragraph (1)(C)(ii) shall be 
                in addition to amounts deposited in the Fund under 
                paragraph (1)(D).
            (3) Availability of funds.--Funds under this subsection 
        shall be available for expenditure without further 
        appropriation and without fiscal year limitation.
    (b) Renewable Energy Mitigation and Fish and Wildlife Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a fund, to be known as the ``Renewable Energy 
        Mitigation and Fish and Wildlife Fund'', to be administered by 
        the Secretary, for use in the State.
            (2) Use of funds.--Amounts in the Fund shall be available 
        to the Secretary, who may make the amounts available to the 
        State, Federal agencies, or other interested parties for the 
        purposes of--
                    (A) mitigating impacts of renewable energy on 
                Federal land, including--
                            (i) protecting fish and wildlife corridors 
                        and other sensitive land;
                            (ii) restoring fish and wildlife habitat; 
                        and
                            (iii) securing recreational access to 
                        Federal land through easement, right of way, or 
                        fee title acquisition from willing sellers for 
                        the purpose of providing enhanced public access 
                        to existing Federal land that is inaccessible 
                        or significantly restricted; and
                    (B) carrying out activities authorized under the 
                Land and Water Conservation Fund Act of 1965 (16 U.S.C. 
                460l-4 et seq.) in the State.
            (3) Availability of amounts.--Amounts in the Fund shall be 
        available for expenditure, in accordance with this subsection, 
        without further appropriation, and without fiscal year 
        limitation.
            (4) Investment of fund.--
                    (A) In general.--Any amounts deposited in the Fund 
                shall earn interest in an amount determined by the 
                Secretary of the Treasury on the basis of the current 
                average market yield on outstanding marketable 
                obligations of the United States of comparable 
                maturities.
                    (B) Use.--Any interest earned under subparagraph 
                (A) may be expended in accordance with this subsection.

SEC. 4. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
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