[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 539 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 539

 To amend the Federal Power Act to require the President to designate 
certain geographical areas as national renewable energy zones, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 5, 2009

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

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Power Act to require the President to designate 
certain geographical areas as national renewable energy zones, 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 Renewable Energy and Economic 
Development Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) electricity produced from renewable resources--
                    (A) helps to reduce emissions of greenhouse gases 
                and other air pollutants;
                    (B) enhances national energy security;
                    (C) conserves water and finite resources; and
                    (D) provides substantial economic benefits, 
                including job creation and technology development;
            (2) the potential exists for a far greater percentage of 
        electricity generation in the United States to be achieved 
        through the use of renewable resources, as compared to the 
        percentage of electricity generation using renewable resources 
        in existence as of the date of enactment of this Act;
            (3) the President has set out a goal that at least 25 
        percent of the electricity used in the United States by 2025 
        come from renewable sources;
            (4) many of the best potential renewable energy resources 
        are located in rural areas far from population centers;
            (5) the lack of adequate electric transmission capacity is 
        a primary obstacle to the development of electric generation 
        facilities fueled by renewable energy resources;
            (6) the economies of many rural areas would substantially 
        benefit from the increased development of water-efficient 
        electric generation facilities fueled by renewable energy 
        resources;
            (7) more efficient use of existing transmission capacity, 
        better integration of resources, and greater investments in 
        distributed renewable generation and off-grid solutions may 
        increase the availability of transmission and distribution 
        capacity for adding renewable resources and help keep ratepayer 
        costs low;
            (8) the Federal Government has not adequately supported or 
        implemented an integrated approach to accelerating the 
        development, commercialization, and deployment of renewable 
        energy technologies, renewable electricity generation, and 
        transmission to bring renewable energy to market, including 
        through enhancing distributed renewable generation or through 
        vehicle and transportation sector use;
            (9) it is in the national interest for the Federal 
        Government to implement policies that would enhance the 
        quantity of electric transmission capacity available to take 
        full advantage of the renewable energy resources available to 
        generate electricity, and to more fully integrate renewable 
        energy into the energy policies of the United States, and to 
        address the tremendous national security and global warming 
        challenges of the United States; and
            (10) existing transmission planning processes are 
        fragmented across many jurisdictions, which results in 
        difficult coordination between jurisdictions, delays in 
        implementation of plans, and complex negotiations on sharing of 
        costs.

SEC. 3. NATIONAL RENEWABLE ENERGY ZONES AND GREEN TRANSMISSION.

    (a) In General.--The Federal Power Act (16 U.S.C. 791a et seq.) is 
amended by adding at the end the following:

   ``PART IV--NATIONAL RENEWABLE ENERGY ZONES AND GREEN TRANSMISSION

``SEC. 401. DEFINITIONS.

    ``In this part:
            ``(1) Biomass.--
                    ``(A) In general.--The term `biomass' means--
                            ``(i) any lignin waste material that is 
                        segregated from other waste materials and is 
                        determined to be nonhazardous by the 
                        Administrator of the Environmental Protection 
                        Agency; and
                            ``(ii) any solid, nonhazardous, cellulosic 
                        material that is derived from--
                                    ``(I) mill residue, precommercial 
                                thinnings, slash, brush, or 
                                nonmerchantable material;
                                    ``(II) solid wood waste materials, 
                                including a waste pallet, a crate, 
                                dunnage, manufacturing and construction 
                                wood wastes, and landscape or right-of-
                                way tree trimmings;
                                    ``(III) agriculture waste, 
                                including an orchard tree crop, a 
                                vineyard, a grain, a legume, sugar, 
                                other crop byproducts or residues, and 
                                livestock waste nutrients; or
                                    ``(IV) a plant that is grown 
                                exclusively as a fuel for the 
                                production of electric energy.
                    ``(B) Inclusions.--The term `biomass' includes 
                animal waste that is converted to a fuel rather than 
                directly combusted, the residue of which is converted 
                to a biological fertilizer, oil, or activated carbon.
                    ``(C) Exclusions.--The term `biomass' does not 
                include--
                            ``(i) municipal solid waste from which 
                        hazardous and recyclable materials have not 
                        been separated;
                            ``(ii) paper that is commonly recycled; or
                            ``(iii) pressure-treated, chemically-
                        treated, or painted wood waste.
            ``(2) Distributed renewable generation.--The term 
        `distributed renewable generation' means--
                    ``(A) reduced electric energy consumption from the 
                electric grid because of use by a customer of renewable 
                energy generated at or near a customer site; and
                    ``(B) electric energy or thermal energy production 
                from a renewable energy resource for a customer that is 
                not connected to an electric grid or thermal energy 
                source pipeline.
            ``(3) Electricity-consuming area.--The term `electricity-
        consuming area' means an area of significant electrical load.
            ``(4) Electricity from renewable energy.--The term 
        `electricity from renewable energy' means electric energy 
        generated from--
                    ``(A) solar energy, wind, biomass, landfill gas, 
                renewable biogas, or geothermal energy;
                    ``(B) new hydroelectric generation capacity 
                achieved from increased efficiency, or an addition of 
                new capacity, at an existing hydroelectric project; or
                    ``(C) hydrokinetic energy, including--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas;
                            ``(ii) free flowing water in rivers, lakes, 
                        and streams;
                            ``(iii) free flowing water in man-made 
                        channels, including projects that use 
                        nonmechanical structures to accelerate the flow 
                        of water for electric power production 
                        purposes; or
                            ``(iv) differentials in ocean temperature 
                        through ocean thermal energy conversion.
            ``(5) ERCOT.--The term `ERCOT' means the Electric 
        Reliability Council of Texas.
            ``(6) Federal land management agency.--The term `Federal 
        land management agency' means--
                    ``(A) the Department of the Interior and the 
                bureaus of the Department that manage Federal land and 
                water, including--
                            ``(i) the Bureau of Land Management;
                            ``(ii) the Bureau of Reclamation;
                            ``(iii) the United States Fish and Wildlife 
                        Service; and
                            ``(iv) the National Park Service;
                    ``(B) the Forest Service of the Department of 
                Agriculture; and
                    ``(C) if applicable and appropriate, the Department 
                of Defense.
            ``(7) Federal transmitting utility.--The term `Federal 
        transmitting utility' means--
                    ``(A) a Federal power marketing agency that owns or 
                operates an electric transmission facility; and
                    ``(B) the Tennessee Valley Authority.
            ``(8) Green transmission grid project.--
                    ``(A) In general.--The term `green transmission 
                grid project' means a project for--
                            ``(i) a new transmission facility rated at 
                        or above 345 kilovolts that is part of an 
                        Interconnection-wide plan developed pursuant to 
                        section 403 for an extra high voltage 
                        transmission grid to enable transmission of 
                        electricity from renewable energy (including 
                        existing or projected renewable generation) to 
                        electricity-consuming areas; or
                            ``(ii) a new renewable feeder line that an 
                        Interconnection-wide plan or the Commission 
                        determines is needed to connect renewable 
                        generation to the extra high voltage 
                        transmission grid.
                    ``(B) Inclusions.--The term `green transmission 
                grid project' includes any network upgrades associated 
                with a facility described in clause (i) or (ii) of 
                subparagraph (A) that are required to ensure the 
                reliability or efficiency of the underlying 
                transmission network, including inverters, substations, 
                transformers, switching units, storage units, and 
                related facilities necessary for the development, 
                siting, transmission, storage, and integration of 
                electricity generated from renewable energy sources.
            ``(9) Grid-enabled vehicle.--The term `grid-enabled 
        vehicle' means an electric drive vehicle or fuel cell vehicle 
        that has the ability to communicate electronically with an 
        electric power provider or with a localized energy storage 
        system with respect to charging or discharging an onboard 
        energy storage device, such as a battery.
            ``(10) Indian land.--The term `Indian land' means--
                    ``(A) any land within the limits of any Indian 
                reservation, pueblo, or rancheria;
                    ``(B) any land not within the limits of any Indian 
                reservation, pueblo, or rancheria title to which was, 
                on the date of enactment of this part--
                            ``(i) held in trust by the United States 
                        for the benefit of any Indian tribe or 
                        individual; or
                            ``(ii) held by any Indian tribe or 
                        individual subject to restriction by the United 
                        States against alienation;
                    ``(C) any dependent Indian community; and
                    ``(D) any land conveyed to any Alaska Native 
                corporation under the Alaska Native Claims Settlement 
                Act (42 U.S.C. 1601 et seq.).
            ``(11) Interconnection.--The term `Interconnection' has the 
        meaning given the term in section 215(a) of the Federal Power 
        Act (16 U.S.C. 824o(a)).
            ``(12) Load-serving entity.--The term `load-serving entity' 
        means any person, Federal, State, or local agency or 
        instrumentality, or electric cooperative that delivers electric 
        energy to end-use customers.
            ``(13) Regional planning entity.--The term `regional 
        planning entity' means an entity certified by the Commission to 
        coordinate regional planning for an Interconnection.
            ``(14) Renewable feeder line.--
                    ``(A) In general.--The term `renewable feeder line' 
                means all transmission facilities and equipment within 
                a national renewable energy zone owned, controlled, or 
                operated by a transmission provider that are capable of 
                being used to deliver electricity from multiple 
                renewable energy resources to the point at which the 
                transmission provider connects to a high-voltage 
                transmission facility.
                    ``(B) Inclusions.--The term `renewable feeder line' 
                includes any associated modifications, additions, or 
                upgrades to or associated with the facilities and 
                equipment described in subparagraph (A).
                    ``(C) Exclusions.--The term `renewable feeder line' 
                does not include--
                            ``(i) a generator lead line capable of 
                        connecting only 1 generator; or
                            ``(ii) equipment owned by a generator.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Energy.
            ``(16) Transmission provider.--The term `transmission 
        provider' means an entity that owns, controls, or operates a 
        transmission facility.

``SEC. 402. DESIGNATION OF NATIONAL RENEWABLE ENERGY ZONES.

    ``(a) Designations.--
            ``(1) In general.--Except as provided in paragraph (2), not 
        later than 90 days after the date of enactment of this part for 
        the Western Interconnection and not later than 270 days after 
        the date of enactment of this part for the Eastern 
        Interconnection, the President shall designate as a national 
        renewable energy zone each geographical area that, as 
        determined by the President--
                    ``(A) has the potential to generate in excess of 1 
                gigawatt of electricity (or a lower quantity of 
                electricity determined by the President) from renewable 
                energy, a significant portion of which could be 
                generated in a rural area or on Federal land within the 
                geographical area;
                    ``(B) has an insufficient level of electric 
                transmission capacity to achieve the potential 
                described in subparagraph (A); and
                    ``(C) has the capability to contain additional 
                renewable energy electric generating facilities that 
                would generate electric energy consumed in 1 or more 
                electricity-consuming areas if there were a sufficient 
                level of transmission capacity.
            ``(2) Inclusion.--The President may include in any national 
        renewable energy zone designated under paragraph (1) a military 
        installation.
            ``(3) Exclusions.--The President shall not include in any 
        national renewable energy zone designated under paragraph (1) 
        any of the following areas:
                    ``(A) National parks, national marine sanctuaries, 
                reserves, recreation areas, and other similar units of 
                the National Park System.
                    ``(B) Designated wilderness, designated wilderness 
                study areas, and other areas managed for wilderness 
                characteristics.
                    ``(C) National historic sites and historic parks.
                    ``(D) Inventoried roadless areas and significant 
                noninventoried roadless areas within the National 
                Forest System.
                    ``(E) National monuments.
                    ``(F) National conservation areas.
                    ``(G) National wildlife refuges and areas of 
                critical environmental concern.
                    ``(H) National historic and national scenic trails.
                    ``(I) Areas designated as critical habitat.
                    ``(J) National wild, scenic, and recreational 
                rivers.
                    ``(K) Any area in which Federal law prohibits 
                energy development, or that the Federal agency or 
                official exercising authority over the area exempts 
                from inclusion in a national renewable energy zone 
                through land use, planning, or other public process.
                    ``(L) Any area in which applicable State law 
                enacted prior to the date of enactment of this section 
                prohibits energy development.
    ``(b) Renewable Energy Requirements.--In making the designations 
required by subsection (a), the President shall take into account 
Federal and State requirements for utilities to incorporate renewable 
energy as part of meeting the load of load-serving entities.
    ``(c) Consultation.--Before making any designation under subsection 
(a) or (e), the President shall consult with--
            ``(1) the Governors of affected States;
            ``(2) the public;
            ``(3) Federal transmitting utilities, public utilities and 
        transmission providers, and cooperatives;
            ``(4) State regulatory authorities and regional electricity 
        planning organizations;
            ``(5) Federal land management agencies, Federal energy and 
        environmental agencies, and State land management, energy, and 
        environmental agencies;
            ``(6) renewable energy companies;
            ``(7) local government officials;
            ``(8) renewable energy and energy efficiency interest 
        groups;
            ``(9) Indian tribes; and
            ``(10) environmental protection and land, water, and 
        wildlife conservation groups.
    ``(d) Recommendations.--Not earlier than 3 years after the date of 
enactment of this part, and triennially thereafter, the Secretary and 
the Secretary of the Interior shall, after consultation with the 
Federal transmitting utilities, the Commission, the Chief of the Forest 
Service, the Secretary of Commerce, the Secretary of Defense, the 
Council on Environmental Quality, and the Governors of the States, 
shall recommend to the President and Congress--
            ``(1) specific areas with the greatest potential for 
        environmentally acceptable renewable energy resource 
        development that the President could designate as renewable 
        energy zones, considering such factors as the impact on 
        sensitive wildlife species, the impact on sensitive resource 
        areas, and the presence of already disturbed or developed land; 
        and
            ``(2) any modifications of laws (including regulations) and 
        resource management plans necessary to fully achieve that 
        potential, including identifying improvements to permit 
        application processes involving military and civilian agencies.
    ``(e) Existing Processes.--In carrying out this section, the 
President may use existing processes that designate renewable energy 
zones.
    ``(f) Revision of Designations.--The President may modify the 
designation of renewable energy zones, including modification based on 
the recommendations received under subsection (d).
    ``(g) Election.--The ERCOT Interconnection may elect to participate 
in the process described in this section.
    ``(h) Administration.--The designation of a renewable energy zone 
shall not be considered a major Federal action under Federal law.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section (including renewable energy 
resource assessments) $25,000,000 for each of fiscal years 2009 through 
2019.

``SEC. 403. INTERCONNECTION-WIDE GREEN TRANSMISSION GRID PROJECT 
              PLANNING.

    ``(a) In General.--To achieve Interconnection-wide coordination of 
planning to integrate renewable energy resources from renewable energy 
zones into the interstate electric transmission grid and make the 
renewable energy resources fully deliverable to electricity consuming 
areas, not later than 60 days after the date of enactment of this part, 
the Commission shall, by regulation or order, issue a request for 1 or 
more organizations to be certified as the regional planning entity for 
each Interconnection.
    ``(b) Contents of Application.--The application shall include 
proposals for provisions for an open, inclusive, transparent, and 
nondiscriminatory planning process that--
            ``(1) includes consultation with affected Federal land 
        management agencies and States within the Interconnection;
            ``(2) builds on planning undertaken by States, Federal 
        transmitting utilities, regional transmission organizations, 
        independent system operators, utilities, and other interested 
        parties;
            ``(3) takes account of corridor designation work and other 
        planning carried out by Federal land management agencies, the 
        Department of Energy, and other interested parties;
            ``(4) solicits input from transmission owners, regional 
        transmission organizations, independent system operators, 
        States, generator owners, prospective developers of new 
        transmission and generation resources, regional entities, 
        Federal land management agencies, environmental protection and 
        land, water, and wildlife conservation groups, and other 
        interested parties; and
            ``(5) includes an interim process to expeditiously evaluate 
        whether new renewable feeder lines should be added to the green 
        transmission grid project plan.
    ``(c) Designation.--Not later than 120 days after the date of 
enactment of this part, the Commission shall designate 1 or more 
appropriate organizations to serve as the regional planning entity to 
represent the Interconnection under this part.
    ``(d) Interconnection-Wide Green Transmission Grid Project Plan.--
Not later than 1 year after the date of the deadline for designations 
under section 402(a), the regional planning entity in each 
Interconnection shall produce and submit to the Commission an 
Interconnection-wide green transmission grid project plan.
    ``(e) Term; Requirements.--An Interconnection-wide green 
transmission grid project plan shall--
            ``(1) enhance transmission access for electricity from 
        renewable energy in renewable energy zones;
            ``(2) include identification of green transmission grid 
        projects (both high-voltage and renewable feeder lines) needed 
        to interconnect renewable energy zones with electricity-
        consuming areas;
            ``(3) fully consider national reliability, economic, 
        environmental, and security needs;
            ``(4) take into account transmission infrastructure 
        required for efficient and reliable delivery of the output of 
        new renewable generation resources needed to meet established 
        and projected Federal and State renewable energy policies and 
        targets;
            ``(5) provide a plan for a period of at least 10 years into 
        the future;
            ``(6) consider alternatives to new transmission, including 
        energy efficiency, demand response, energy storage, and 
        distributed renewable generation;
            ``(7) include a timeline for construction of projects; and
            ``(8) be filed with the Commission annually for approval 
        consistent with this section.
    ``(f) Participation of Secretary.--The Secretary shall provide 
technical expertise to States and regional planning entities in 
development of Interconnection-wide plans through--
            ``(1) analysis for the green transmission grid project 
        planning process; and
            ``(2) demonstration and commercial application activities 
        of new technologies in the green transmission grid project 
        plan.
    ``(g) Participation of Federal Transmitting Utilities.--
            ``(1) In general.--A Federal transmitting utility shall 
        participate in the planning process in the applicable 
        Interconnection.
            ``(2) Green transmission grid project facilities.--Not 
        later than 1 year after the date a regional planning entity 
        files a plan, a Federal transmitting utility that owns or 
        operates 1 or more electric transmission facilities in a State 
        with a national renewable energy zone shall identify specific 
        green transmission grid project facilities that are required to 
        substantially increase the generation of electricity from 
        renewable energy in the national renewable energy zone.
    ``(h) Failure To Submit Plan.--
            ``(1) In general.--If a State in an Interconnection does 
        not participate in a timely manner in an Interconnection-wide 
        green transmission grid project planning process in accordance 
        with this section, or if such a planning process is established 
        but fails to result in the submission by the regional planning 
        entity of the requisite components of the Interconnection-wide 
        green transmission grid project plan by the date specified in 
        subsection (d), the Commission shall develop through a 
        rulemaking, after consultation with the Secretary, Federal 
        transmitting utilities, the Secretary of the Interior, regional 
        transmission organizations, the electric reliability 
        organization, regional entities, and municipal and cooperative 
        entities, an Interconnection-wide green transmission grid 
        project plan on behalf of the 1 or more nonsubmitting States or 
        regional planning entity in the Interconnection.
            ``(2) Deadline.--Any final rule required under paragraph 
        (1) shall be completed not later than 1 year after the date on 
        which the Commission determines that--
                    ``(A) the regional planning entity has failed to 
                submit an Interconnection-wide green transmission 
                project plan on a timely basis; or
                    ``(B) a State has failed to participate in a timely 
                manner in the planning process.
    ``(i) Evaluation and Recommendations.--The Commission shall--
            ``(1) periodically evaluate whether green transmission grid 
        projects to enable the delivery of renewable energy are being 
        constructed in accordance with the Interconnection-wide green 
        transmission grid project plan for both the Western and Eastern 
        Interconnections;
            ``(2) take any necessary actions to address any identified 
        obstacles to investment, siting, and construction of projects 
        identified as needed under an Interconnection-wide plan; and
            ``(3) not later than 2 years after the date of enactment of 
        this part, submit to Congress recommendations for any further 
        actions or authority needed to ensure the effective and timely 
        development of transmission infrastructure necessary to ensure 
        the integration and deliverability of renewable energy from 
        renewable energy zones to electricity-consuming areas in the 
        United States.
    ``(j) Recovery of Costs Associated With Interconnection-Wide Green 
Transmission Grid Project Planning.--
            ``(1) In general.--A regional planning entity and a State 
        shall be permitted to recover prudently incurred costs to carry 
        out Interconnection-wide planning activities required under 
        this section pursuant to a Federal transmission surcharge that 
        will be established by the Commission for the purposes of 
        carrying out this section.
            ``(2) Surcharge.--A regional planning entity, in 
        consultation with States in an Interconnection, shall--
                    ``(A) recommend the Federal transmission surcharge 
                based on a formula rate that is submitted to the 
                Commission for approval; and
                    ``(B) adjust the formula and surcharge on an annual 
                basis.
            ``(3) Cost responsibility.--Cost responsibility under the 
        surcharge shall be assigned based on energy usage to all load-
        serving entities within the United States portion of the 
        Eastern and Western Interconnections.
            ``(4) Limitation.--The total amount of surcharges that may 
        be imposed or collected nationally under this subsection shall 
        not exceed $80,000,000 in any calendar year.
            ``(5) Distribution.--The Secretary shall, in accordance 
        with the regulations promulgated under paragraph (1), 
        distribute on an equitable basis funds received under that 
        paragraph among States and planning entities, if the Governor 
        of the receiving State--
                    ``(A) in the case of the first year of 
                distribution, certifies to the Secretary that the State 
                will participate in an Interconnection-wide green 
                transmission grid project planning process; and
                    ``(B) in the case of the second and subsequent 
                years of distribution--
                            ``(i) is part of an Interconnection-wide 
                        planning process that submits to the Commission 
                        timely Interconnection-wide green transmission 
                        grid project plans under this section; and
                            ``(ii) certifies annually to the Secretary 
                        that all load-serving entities in the State--
                                    ``(I) offer a fairly-priced 
                                renewable power purchase option to all 
                                the customers of the entities; or
                                    ``(II) have demonstrated an 
                                increase in the number of customers 
                                above the previous year participating 
                                in a demand-side management program 
                                that reduces peak demand, increases 
                                reliability, and reduces consumer 
                                costs.
            ``(6) Applicability.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), this subsection applies to all users, owners, and 
                operators of the bulk-power system within the United 
                States portion of the Eastern and Western 
                Interconnections.
                    ``(B) Exclusions.--This subsection does not apply 
                to the State of Alaska or Hawaii or to the ERCOT, 
                unless the State or ERCOT voluntarily elects to 
                participate in the planning process, and to be 
                responsible for a pro rata portion of the Federal 
                transmission surcharge imposed under this subsection.
                    ``(C) Project developers.--Nothing in this section 
                or part prevents a project developer from carrying out 
                a transmission project to enable renewable development 
                if the project developer assumes all of the risk and 
                cost of the proposed project.

``SEC. 404. FEDERAL SITING OF GREEN TRANSMISSION GRID PROJECT 
              FACILITIES.

    ``(a) In General.--The Commission, after consultation with affected 
States, may issue 1 or more permits for the construction or 
modification of an electric transmission facility if the Commission 
finds that--
            ``(1) the transmission facility--
                    ``(A) is included in an Interconnection-wide green 
                transmission grid project plan submitted under section 
                403; or
                    ``(B) is proposed by a project developer to 
                integrate renewable energy resources from renewable 
                energy zones or to integrate renewable resources from 
                other geographic areas, if the project developer 
                assumes all of the risk and cost of the proposed 
                facilities;
            ``(2) the transmission facility optimizes transmission 
        capability based on the assessment by the Commission of 
        technical constraints, project economics, land use limitations, 
        and the potential generation capacity of renewable energy zones 
        interconnected to the project; and
            ``(3) the owner or operator of the transmission facility 
        has failed to make reasonable progress in siting the facility 
        based on timelines in the plan.
    ``(b) Evidence of Need.--Inclusion of a project in an 
Interconnection-wide green transmission grid project plan submitted 
under section 403 shall be considered to be sufficient evidence of need 
for the project to warrant the granting of a construction permit under 
subsection (a).
    ``(c) Permit Application.--
            ``(1) In general.--A permit application under subsection 
        (a) shall be made in writing to the Commission.
            ``(2) Administration.--The Commission shall promulgate 
        regulations specifying--
                    ``(A) the form of the application;
                    ``(B) the information to be contained in the 
                application; and
                    ``(C) the manner of service of notice of the permit 
                application on interested persons.
    ``(d) Granting of Construction Permit.--
            ``(1) In general.--A construction permit may be issued to 
        any applicant described in subsection (a)(1)(B) if the 
        Commission finds that--
                    ``(A) the applicant is able and willing to take 
                actions and perform the services proposed in accordance 
                with this part (including the requirements, rules, and 
                regulations of the Commission under this part); and
                    ``(B) the proposed operation, construction, or 
                expansion is or will be required by the present or 
                future public convenience and necessity.
            ``(2) Administration.--The Commission shall have the power 
        to attach to the issuance of the construction permit, and to 
        the exercise of rights granted under the permit, such 
        reasonable terms and conditions as the public convenience and 
        necessity may require.
    ``(e) Construction Permit for an Area Already Being Served.--
Nothing in this section limits the power of the Commission to grant 
construction permits for service of an area already being served by 
another transmission provider.
    ``(f) Rights-of-Way.--
            ``(1) In general.--In the case of a permit under subsection 
        (a) for an electric transmission facility to be located on 
        property other than property owned by the United States, if the 
        permit holder cannot acquire by contract, or is unable to agree 
        with the owner of the property to the compensation to be paid 
        for, the necessary right-of-way to construct or modify the 
        transmission facility, the permit holder may acquire the right-
        of-way by the exercise of the right of eminent domain in the 
        United States district court for the district in which the 
        property concerned is located, or in the appropriate court for 
        the State in which the property is located.
            ``(2) Use.--Any right-of-way acquired under paragraph (1) 
        shall be used exclusively for the construction, modification, 
        operation, or maintenance of an electric transmission facility, 
        and any appropriate mitigation measures or other uses approved 
        by the Commission, within a reasonable period of time after 
        acquisition of the right-of-way.
            ``(3) Practice and procedure.--The practice and procedure 
        in any action or proceeding under this subsection in the United 
        States district court shall conform, to the maximum extent 
        practicable, to the practice and procedure in a similar action 
        or proceeding in the courts of the State in which the property 
        is located.
            ``(4) Limitations.--
                    ``(A) In general.--Nothing in this subsection 
                authorizes the use of eminent domain to acquire a 
                right-of-way for any purpose other than the 
                construction, modification, operation, or maintenance 
                of an electric transmission facility included in a 
                green transmission grid project plan or related 
                facility.
                    ``(B) Administration.--The right-of-way--
                            ``(i) shall not be used for any purpose not 
                        described in subparagraph (A) or paragraph (2); 
                        and
                            ``(ii) shall terminate on the termination 
                        of the use for which the right-of-way is 
                        acquired.
    ``(g) State Authority.--
            ``(1) In general.--Except as provided in paragraph (3), in 
        granting a construction permit under subsection (a), the 
        Commission shall--
                    ``(A) permit State regulatory agencies to identify 
                siting constraints and mitigation measures, based on 
                habitat protection, environmental considerations, or 
                cultural site protection; and
                    ``(B)(i) incorporate those identified constraints 
                or measures in the construction permit; or
                    ``(ii) if the Commission determines that such a 
                constraint or measure is inconsistent with the purposes 
                of this part, infeasible, or not cost-effective--
                            ``(I) consult with State regulatory 
                        agencies to seek to resolve the issue; and
                            ``(II) incorporate into the construction 
                        permit such siting constraints and mitigation 
                        measures as are determined to be appropriate by 
                        the Commission, based on consultation by the 
                        Commission with State regulatory agencies, the 
                        purposes of this part, and the record before 
                        the Commission.
            ``(2) Nonadoption of recommendations.--If, after taking the 
        actions required under paragraph (1), the Commission does not 
        adopt in whole or in part a recommendation of an agency, the 
        Commission shall publish a statement of a finding that the 
        adoption of the recommendation is infeasible, not cost-
        effective, or inconsistent with this part or other applicable 
        provisions of law.
            ``(3) Interconnection-wide green transmission grid project 
        planning process.--The Commission shall not be required to 
        include constraints or measures described in paragraph (1) that 
        are identified by a State that does not participate in an 
        Interconnection-wide green transmission grid project planning 
        process under section 403.
    ``(h) Environmental Reviews.--
            ``(1) In general.--With respect to any project or group of 
        projects for which a construction permit is granted under 
        subsection (a), the Commission shall--
                    ``(A) serve as the lead agency for purposes of 
                coordinating any Federal authorizations and 
                environmental reviews or analyses required for the 
                project, including those required under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.);
                    ``(B) in consultation with other affected agencies, 
                prepare a single environmental review document that 
                would be used as the basis for all decisions under 
                Federal law relating to the proposed project, in 
                accordance with section 216(h) of this Act, including 
                siting constraints and mitigation measures;
                    ``(C) not later than 90 days after the date of 
                filing of an application for a permit under this 
                section, enter into a memorandum of understanding with 
                affected Federal agencies to carry out this subsection, 
                including--
                            ``(i) a schedule for environmental review 
                        and a budget necessary to comply with the 
                        schedule for each project or group of projects; 
                        and
                            ``(ii) the budget resources necessary to 
                        carry out the memorandum; and
                    ``(D) ensure that, once an application has been 
                submitted with such data as the Commission considers to 
                be necessary, all permit decisions and related 
                environmental reviews under applicable Federal laws 
                shall be completed not later than 1 year after the date 
                of submission of a complete application.
            ``(2) Appeal.--If any Federal agency has denied a Federal 
        authorization required for a certified project under this part 
        or has failed to determine whether to issue the authorization 
        not later than 1 year after the date of submission of a 
        complete application, the applicant or any State in which the 
        facility would be located may file an appeal with the 
        President, who shall, in consultation with the affected agency, 
        review the denial or failure to take action on the pending 
        application.
    ``(i) Restricted Areas.--In granting a construction permit under 
subsection (a), the Commission shall consider and, to the maximum 
extent practicable, select alternative routes to avoid areas described 
in section 402(a)(3).
    ``(j) Access to Transmission.--
            ``(1) In general.--Subject to paragraph (2), the owner or 
        operator of any project described in subsection (a) that 
        traverses multiple States that participate in an 
        Interconnection-wide green transmission grid project planning 
        process under section 403 shall ensure that each State in which 
        the green transmission grid project traverses shall have access 
        to transmission under the project, unless the access would make 
        the project technically or economically impractical.
            ``(2) Additional funds.--If a project owner or operator 
        described in paragraph (1) cannot make the assurances described 
        in that paragraph for a State, the State shall be eligible for 
        additional funds under section 405.
    ``(k) Minimum Renewable Requirement.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), the transmission provider for a green transmission grid 
        project sited through the granting of a construction permit 
        under subsection (a) shall certify annually to the Commission, 
        in accordance with regulations promulgated by the Commission, 
        that at least 75 percent of the transmission capacity of the 
        project is available to renewable resources.
            ``(2) Application.--The requirements shall be applicable 
        only to generators directly interconnecting to the project.
            ``(3) Adjustment.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Commission may reduce the minimum percentage specified 
                in paragraph (1) in any case in which the Commission 
                determines that it is necessary for a specific 
                renewable feeder line to have less than 75 percent of 
                generation resources interconnecting to the renewable 
                feeder line be renewable resources in order to maintain 
                compliance with Commission-approved reliability 
                standards.
                    ``(B) Cost-effective energy storage options.--In 
                making a determination on a reduction for a proposed 
                project under subparagraph (A), the Commission shall 
                consider cost-effective energy storage options in the 
                area covered by the project, including detailed reports 
                developed by the project developer or interconnecting 
                generators at the direction of the Commission.
    ``(l) Firm Transmission Rights.--The Commission shall adopt, by 
rule, regulations requiring transmission providers to offer, on a 
priority basis, firm or equivalent financial transmission rights for 
any green transmission grid project sited under this section for 
transmission of energy from renewable resources to a load-serving 
entity that contracts to purchase renewable resources, or to renewable 
energy generation owners.
    ``(m) Administration.--Nothing in this section waives the 
application of any applicable Federal environmental law.
    ``(n) State Siting Authority.--Nothing in this section precludes a 
transmission project developer from seeking siting authority from a 
State.

``SEC. 405. GRANTS FOR INTERCONNECTION-WIDE GREEN TRANSMISSION GRID 
              PROJECT PLANS.

    ``(a) In General.--The Secretary, in consultation with the 
Commission, shall make grants to States and planning entities that 
submit or implement Interconnection-wide green transmission grid 
project plans required to be developed pursuant to this part in a 
timely manner for (as appropriate)--
            ``(1) implementation of sections 403 and 404;
            ``(2) transmission improvements (including smart grid 
        investments) for States and planning entities that meet 
        deadlines in implementing those plans;
            ``(3) training for State regulatory authority staff and 
        local workforces relating to renewable generation resources, 
        smart grid, or new transmission technologies;
            ``(4) mitigation of landowner concerns and impacts;
            ``(5) habitat and wildlife conservation;
            ``(6) security upgrades to the transmission system and 
        authorized uses under title XIII of the Energy Independence and 
        Security Act of 2007 (15 U.S.C. 17381 et seq.);
            ``(7) energy storage, reliability, or distributed renewable 
        generation projects; and
            ``(8) other programs and projects that are consistent with 
        the purposes of this part.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000, including amounts 
made available--
            ``(1) under the American Recovery and Reinvestment Act of 
        2009; or
            ``(2) through the sale of carbon allowances in a law 
        enacted after the date of enactment of this Act that imposes a 
        limitation on greenhouse gas emissions.

``SEC. 406. COST ALLOCATION.

    ``(a) In General.--As part of an Interconnection-wide green 
transmission grid project plan submitted under section 403, the 
regional planning entity, after consultation with affected State 
regulatory authorities, shall file with the Commission under this 
section a cost allocation plan for sharing the costs of developing and 
operating green transmission grid projects that are identified and 
built pursuant to an Interconnection-wide green transmission project 
plan to enable delivery of electric energy from renewable energy 
resources in renewable energy zones.
    ``(b) Approval.--Not later than 90 days after the date of filing, 
the Commission shall approve a cost allocation plan proposed under 
subsection (a) unless the Commission determines that--
            ``(1) taking into account the users of the transmission 
        facilities, the plan will result in rates that are unduly 
        discriminatory or preferential or are not just and reasonable;
            ``(2) the plan would unduly inhibit the development of 
        renewable energy electric generation projects; or
            ``(3) the plan would not allow the transmission provider 
        providing service over the facilities or the entity 
        constructing or financing the project, as appropriate, the 
        opportunity to recover prudently incurred costs, including a 
        reasonable return on investment, associated with the 
        transmission facilities the transmission provider has committed 
        to build pursuant to the Interconnection-wide green 
        transmission plan.
    ``(c) Failure To Submit a Cost Allocation Plan.--
            ``(1) In general.--If a regional planning entity is unable, 
        for whatever reason, to develop and propose an acceptable cost 
        allocation plan at the time the regional planning entity files 
        an Interconnection-wide green transmission grid project plan, 
        the Commission shall institute, on the motion of the 
        Commission, a proceeding to initially allocate the costs of new 
        transmission facilities built pursuant to an Interconnection-
        wide green transmission project plan.
            ``(2) Cost allocation.--The Commission shall allocate the 
        costs of green transmission grid projects--
                    ``(A) broadly to all load-serving entities in the 
                Interconnection; or
                    ``(B) to load-serving entities within a part of the 
                Interconnection.
            ``(3) Renewable feeder lines.--
                    ``(A) In general.--A renewable feeder line may be 
                included in a broad cost allocation if the Commission 
                finds that the renewable feeder line--
                            ``(i) would be used by renewable energy 
                        resources remote from existing transmission and 
                        load centers;
                            ``(ii) will likely result in multiple 
                        individual renewable energy electric generation 
                        projects being developed by multiple competing 
                        developers; and
                            ``(iii) has at least 1 project subscribed 
                        through an executed generator Interconnection 
                        agreement with the transmission provider and 
                        has tangible demonstration of additional 
                        interest.
                    ``(B) New renewable generation projects.--
                            ``(i) In general.--As new renewable 
                        generation projects are constructed and 
                        interconnected to a renewable feeder line under 
                        subparagraph (A), the 1 or more new 
                        transmission services contract holders shall be 
                        liable for a pro rata share of the facility 
                        costs of the transmission grid project.
                            ``(ii) Transmission revenues.--The 
                        transmission revenues shall be applied as a 
                        credit to the initial allocation of project 
                        costs.
    ``(d) Cost Allocation Rate Filings.--If a cost allocation plan is 
approved by the Commission in accordance with this section--
            ``(1) any public utility that has rates that are affected 
        by the approved cost allocation plan shall file the allocation 
        plan with the Commission pursuant to section 205; and
            ``(2) the cost allocation plan shall be presumed lawful 
        under section 205 on filing, without notice or further 
        opportunity for comment or hearing.
    ``(e) Applicability.--
            ``(1) In general.--Except as provided in paragraph (3), the 
        authority of the Commission under this section and section 403 
        to approve transmission plans and to allocate costs incurred 
        pursuant to the plans applies to all transmission providers, 
        generators, and users, owners, and operators of the power 
        system within the Eastern and Western Interconnections of the 
        United States, including entities described in section 201(f).
            ``(2) Regional planning entities.--The Commission shall 
        have authority over regional planning entities to the extent 
        necessary to carry out this section and section 403.
            ``(3) Exclusions.--
                    ``(A) In general.--This section does not apply in 
                the State of Alaska or Hawaii or to the ERCOT, unless 
                the State or ERCOT voluntarily elects to participate in 
                a cost allocation plan under this section.
                    ``(B) Existing cost allocation agreements.--A 
                project for which a cost allocation or cost recovery 
                agreement was accepted by the Commission before the 
                date of enactment of this part shall not be included in 
                cost allocation under this section.

``SEC. 407. FEDERAL TRANSMITTING UTILITIES ENCOURAGING CLEAN ENERGY 
              DEVELOPMENT IN NATIONAL RENEWABLE ENERGY ZONES.

    ``(a) Lack of Private Funds.--If, by the date that is 3 years after 
the date of enactment of this part, no privately-funded entity has 
committed to financing (through self-financing or through a third-party 
financing arrangement with a Federal transmitting utility) to ensure 
the construction and operation of a green transmission grid project 
(which the Commission has identified as an essential part of an 
Interconnection-wide green transmission project plan) by a specified 
date, the Federal transmitting utility responsible for the 
identification under section 403(d) shall finance such a transmission 
facility if the Federal transmitting utility has sufficient bonding 
authority under subsection (b).
    ``(b) Bonding Authority.--
            ``(1) In general.--In addition to any other authority to 
        issue and sell bonds, notes, and other evidence of 
        indebtedness, a Federal transmitting utility may issue and sell 
        bonds, notes, and other evidence of indebtedness in an amount 
        not to exceed, at any 1 time, an aggregate outstanding balance 
        of $10,000,000,000, to finance the construction of transmission 
        facilities described in subsection (a) for the principal 
        purposes of--
                    ``(A) increasing the generation of electricity from 
                renewable energy; and
                    ``(B) conveying that electric energy to an 
                electricity-consuming area.
            ``(2) Recovery of costs.--A Federal transmitting utility 
        shall recover the costs of green transmission grid project 
        facilities financed pursuant to subsection (a) from entities 
        using the transmission facilities over a period of 50 years.
            ``(3) Nonliability of certain customers.--Individuals and 
        entities that, as of the date of enactment of this part, are 
        customers of a Federal transmitting utility shall not be liable 
        for the costs, in the form of increased rates charged for 
        electric energy or transmission, of green transmission grid 
        project facilities constructed pursuant to this section, except 
        to the extent the customers are treated in a manner similar to 
        all other users of the green transmission grid project 
        facilities.

``SEC. 408. FEDERAL POWER MARKETING AGENCIES.

    ``(a) Promotion of Renewable Energy and Energy Efficiency.--Each 
Federal transmitting utility shall--
            ``(1) identify and take steps to promote energy 
        conservation and renewable energy electric resource development 
        in the regions served by the Federal transmitting utility; and
            ``(2) identify opportunities to promote the development of 
        facilities generating electricity from renewable energy on 
        Indian land within the service territory of the Federal 
        transmitting utility.
    ``(b) Wind Integration Programs.--The Bonneville Power 
Administration and the Western Area Power Administration shall each 
establish a program focusing on the improvement of the integration of 
wind energy into the transmission grids of those Administrations 
through the development of transmission products, including through the 
use of Federal hydropower resources, that--
            ``(1) take into account the intermittent nature of wind 
        electric generation; and
            ``(2) do not impair electric reliability.
    ``(c) Solar Integration Program.--Each of the Federal Power 
Marketing Administrations and the Tennessee Valley Authority shall 
establish a program to carry out projects focusing on the integration 
of solar energy, through photovoltaic, concentrating solar power 
systems and other forms and systems, into the respective transmission 
grids and into remote and distributed applications in the respective 
service territories of the Federal Power Marketing Administrations and 
Tennessee Valley Authority, that--
            ``(1) take into account the solar energy cycle;
            ``(2) consider the appropriate use of Federal land for 
        generation or energy storage, where appropriate; and
            ``(3) do not impair electric reliability.
    ``(d) Geothermal Integration Program.--The Bonneville Power 
Administration and the Western Area Power Administration shall 
establish a joint program to carry out projects focusing on the 
development and integration of geothermal energy and enhanced 
geothermal system resources into the respective transmission grids of 
the Bonneville Power Administration and the Western Area Power 
Administration, as well as non-grid, distributed applications in those 
service territories, including projects combining geothermal energy 
resources with biofuels production or other industrial or commercial 
uses requiring process heat inputs, that--
            ``(1) consider the appropriate use of Federal land for the 
        projects and activities;
            ``(2) displace fossil fuel baseload generation or petroleum 
        imports; and
            ``(3) do not impair electric reliability.
    ``(e) Renewable Electricity and Energy Security Projects.--
            ``(1) In general.--The Federal transmitting utilities, 
        shall, in consultation with the Commission, the Secretary, the 
        States, and such other individuals and entities as are 
        necessary, undertake geographically diverse projects within the 
        respective service territories of the Federal transmitting 
        utilities to acquire and demonstrate grid-enabled and nongrid-
        enabled plug-in electric and plug-in hybrid electric vehicles 
        and related technologies as part of their fleets of vehicles.
            ``(2) Increase in renewable energy use.--To the maximum 
        extent practicable, each project conducted pursuant to any of 
        subsections (b) through (d) shall include a component to 
        develop vehicle technology, utility systems, batteries, power 
        electronics, or such other related devices as are able to 
        substitute, as the main fuel source for vehicles, 
        transportation-sector petroleum consumption with electricity 
        from renewable energy sources.
    ``(f) Reregulating Dams and Pumped Storage Study.--The Secretary of 
the Interior and the Secretary of the Army (acting through Chief of 
Engineers), in consultation with the Secretary of Energy, shall--
            ``(1) study the potential for reregulating facilities and 
        pumped storage units at Federal dams to identify the facilities 
        and units that are most worthy of further evaluation; and
            ``(2) submit to Congress a report on the results of the 
        study, including recommendations on the next steps that should 
        be taken.
    ``(g) Wind or Solar-hydro Integration Demonstration Project.--
            ``(1) In general.--The Western Area Power Administration 
        may fund the construction of wind or solar generation to supply 
        firming energy to Western Area Power Administration to test the 
        economic feasibility of wind-hydro or solar-hydro integration.
            ``(2) Tribal land.--In carrying out this subsection, the 
        Western Area Power Administration shall consider locating the 
        wind or solar generation facilities on tribal land.
            ``(3) Nonreimbursable costs.--All costs associated with a 
        demonstration under this subsection shall be considered 
        nonreimbursable to electric energy customers of the Western 
        Area Power Administration.

``SEC. 409. SOLAR ENERGY RESERVE PILOT PROJECT.

    ``(a) Purpose.--The purpose of this section is to establish a solar 
energy reserve pilot program on Federal land for the advancement, 
development, assessment, and installation of commercial utility-scale 
solar electric energy systems that will function as a potential model 
for the future development of renewable energy zones identified under 
this Act.
    ``(b) Site Selection.--The Secretary of Energy and the Secretary of 
the Interior, in consultation with the Secretary of Defense, the 
Commission, States, and tribal and local units of government (as 
appropriate), shall--
            ``(1) identify 1 or more areas of Federal land under the 
        jurisdiction of the Bureau of Land Management or land withdrawn 
        by the Secretary of Energy for other purposes that is feasible 
        and suitable for the installation of solar electric energy 
        systems that are sufficient to generate not less than 4 
        gigawatts and not more than 25 gigawatts;
            ``(2) not later than 180 days after the date of enactment 
        of this part, initiate the process for withdrawal of 1 or more 
        tracts of land to the Secretary of Energy pursuant to section 
        204 of the Federal Land Policy and Management Act of 1976 (43 
        U.S.C. 1714) for the purpose of creating solar energy reserves 
        or the designation of land withdrawn to the Secretary of Energy 
        for other purposes as a solar energy reserve; and
            ``(3) identify the needed transmission upgrades to connect 
        the solar energy reserves to the transmission grid.
    ``(c) Ineligible Federal Land.--A solar energy reserve shall not be 
established under this section on any land excluded for designation 
under section 402(a)(2).
    ``(d) Development Within Reserves.--The Secretary of Energy shall--
            ``(1) have the sole authority to issue land use 
        authorizations for land withdrawn under subsection (b);
            ``(2) establish criteria for approving applications and 
        developing infrastructure for solar reserves;
            ``(3) not later than 2 years after the date of enactment of 
        this part, work with Federal agencies, States, and other 
        interested persons to ensure, to the maximum extent 
        practicable, that adequate infrastructure is available for 
        operation of the first solar energy reserve;
            ``(4) provide, to the maximum extent practicable, for a 
        variety of utility-scale solar electric energy technologies; 
        and
            ``(5) ensure, to the maximum extent practicable, that all 
        solar energy reserves pursuant to this section are permitted 
        using an expedited permitting process.
    ``(e) Developing Solar Energy Reserves.--
            ``(1) In general.--Subject to paragraph (2), in carrying 
        out this section, the Secretary may--
                    ``(A) install appropriate infrastructure, 
                including--
                            ``(i) roads;
                            ``(ii) renewable feeder lines that connect 
                        to transmission lines; and
                            ``(iii) equipment to access public or 
                        private utility systems;
                    ``(B) recover reasonable costs to pay for the 
                management of the solar energy reserves and maintenance 
                of the infrastructure relating to the use of the land, 
                except that the Secretary shall not recover costs to 
                pay for infrastructure if the costs have or will be 
                paid for by Federal funds, to remain available until 
                expended; and
                    ``(C) negotiate agreements on behalf of all solar 
                electricity systems within the solar energy reserve 
                for--
                            ``(i) the purchase of materials and 
                        equipment;
                            ``(ii) the provision of public utility 
                        services and other services; and
                            ``(iii) access to electric transmission 
                        facilities.
            ``(2) Opting out.--A developer of a solar electricity 
        system shall have the option, prior to the effective date of 
        the agreement, to opt out of any agreement negotiated by the 
        Secretary under paragraph (1)(C).
    ``(f) Royalties and Fees.--
            ``(1) In general.--In lieu of rental fees, each solar 
        electricity system developer shall pay to the Secretary a 
        royalty on the sale of electricity produced from a solar 
        electricity system placed into service on a solar energy 
        reserve established under this section.
            ``(2) Amount of royalty.--The amount of the royalty payable 
        for a solar electricity system placed into service on a solar 
        energy reserve under this subsection shall be equal to 1.0 mil 
        per kilowatt-hour of electricity generated by the facility.
            ``(3) Deposit in treasury.--All royalties received by the 
        United States from royalties under this subsection shall be 
        deposited in the Treasury.
            ``(4) Use of royalties.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), of the amount of royalties deposited in the 
                Treasury from a solar energy reserve for a fiscal year 
                under paragraph (3)--
                            ``(i) 20 percent shall be paid to the 1 or 
                        more States within the boundaries of which the 
                        solar energy reserve is located;
                            ``(ii) 30 percent shall be paid to the 1 or 
                        more counties within the boundaries of which 
                        the solar energy reserve is located;
                            ``(iii) 20 percent shall be deposited in a 
                        separate account in the Treasury, to be known 
                        as the `BLM Solar Energy Permit Processing 
                        Improvement Fund', except that if the Fund 
                        equals $10,000,000 or more, no additional 
                        royalties under this subsection shall be 
                        deposited in the Fund; and
                            ``(iv) 5 percent shall be deposited into a 
                        separate account in the Treasury, to be known 
                        as the `Solar Energy Land Reclamation, 
                        Remediation, and Restoration Fund'.
                    ``(B) BLM solar energy permit processing 
                improvement fund.--Amounts deposited under subparagraph 
                (A)(iii) shall be available to the Secretary of the 
                Interior for expenditure, without further appropriation 
                and without fiscal year limitation, for the purpose of 
                paying for the coordination and processing of solar 
                energy right-of-way permit and land use applications 
                and planning for solar energy development on land under 
                the jurisdiction of the Bureau of Land Management.
                    ``(C) Solar energy land reclamation, remediation, 
                and restoration fund.--Amounts deposited under 
                subparagraph (A)(iv) shall be available to the 
                Secretary of Energy for expenditure, without further 
                appropriation and without fiscal year limitation, for 
                the purpose of reclaiming, remediating, and restoring 
                land within a solar energy reserve on which a solar 
                electricity facility has permanently ceased operation 
                before disposal or for withdrawn land that is returned 
                to the Department of the Interior.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy and the Secretary of the 
Interior such sums as are necessary to carry out this section.

``SEC. 410. RELATIONSHIP TO OTHER LAWS.

    ``Nothing in this part supersedes or affects any Federal 
environmental, public health or public land protection, or historic 
preservation law, including--
            ``(1) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.);
            ``(2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.); and
            ``(3) the National Historic Preservation Act (16 U.S.C. 470 
        et seq.).

``SEC. 411. REGULATIONS.

    ``Except as otherwise provided in this part, not later than 1 year 
after the date of enactment of this part, the Commission shall 
promulgate such regulations as are necessary to carry out this part.''.
    (b) Green Transmission Infrastructure Incentive Rates.--Section 
219(a) of the Federal Power Act (16 U.S.C. 824s(a)) is amended by 
striking ``purpose of'' and all that follows through the end of the 
subsection and inserting ``purpose of--
            ``(1) benefitting consumers by ensuring reliability and 
        reducing the cost of delivered power by reducing transmission 
        congestion; or
            ``(2) integrating renewable energy resources into the 
        transmission system.''.
    (c) Maximum Funding Amount for Third-Party Finance.--Section 1222 
of the Energy Policy Act of 2005 (42 U.S.C. 16421) is amended by 
striking subsection (g) and inserting the following:
    ``(g) Maximum Funding Amount.--The Secretary shall not accept and 
use more than $2,500,000,000 under subsection (c)(1) for the period of 
fiscal years 2009 through 2018.''.
    (d) Enforcement.--Section 316A of the Federal Power Act (16 U.S.C. 
825o-1) is amended by striking ``part II'' each place it appears and 
inserting ``part II or IV''.

SEC. 4. RENEWABLE ENERGY PILOT PROJECT OFFICES.

    (a) In General.--Section 365 of the Energy Policy Act of 2005 (42 
U.S.C. 15924) is amended by adding at the end the following:
    ``(k) Pilot Project Office To Improve Federal Permit Coordination 
for Renewable Energy.--
            ``(1) Definition of renewable energy.--In this subsection, 
        the term `renewable energy' means energy derived from a wind, 
        solar, geothermal, or biomass source.
            ``(2) Field project offices.--As part of the Pilot Project, 
        the Secretary shall designate 1 or more field offices of the 
        Bureau of Land Management in each of the following States to 
        serve as Renewable Energy Pilot Project Offices for 
        coordination of Federal permits for renewable energy projects 
        and renewable energy transmission involving Federal land (other 
        than permits issued by the Federal Energy Regulatory 
        Commission):
                    ``(A) Arizona.
                    ``(B) California.
                    ``(C) Colorado.
                    ``(D) Oregon or Washington.
                    ``(E) New Mexico.
                    ``(F) Nevada.
                    ``(G) Montana.
                    ``(H) Wyoming.
            ``(3) Memorandum of understanding.--
                    ``(A) In general.--Not later than 90 days after the 
                date of enactment of this subsection, the Secretary 
                shall enter into an amended memorandum of understanding 
                under subsection (b) to provide for the inclusion of 
                the additional Renewable Energy Pilot Project Offices 
                in the Pilot Project.
                    ``(B) Signatures by governors.--The Secretary may 
                request that the Governors of each of the States 
                described in paragraph (2) be signatories to the 
                amended memorandum of understanding.
                    ``(C) Designation of qualified staff.--Not later 
                than 30 days after the date of the signing of the 
                amended memorandum of understanding, all Federal 
                signatory parties shall, if appropriate, assign to each 
                Renewable Energy Pilot Project Offices designated under 
                paragraph (2) an employee described in subsection (c) 
                to carry out duties described in that subsection.
                    ``(D) Additional personnel.--The Secretary shall 
                assign to each Renewable Energy Pilot Project Office 
                additional personnel under subsection (f).''.
    (b) Permit Processing Improvement Fund.--Section 35(c)(3) of the 
Mineral Leasing Act (30 U.S.C. 191(c)(3)) is amended--
            (1) by striking ``use authorizations'' and inserting ``and 
        renewable energy use authorizations''; and
            (2) by striking ``section 365(d)'' and inserting 
        ``subsections (d) and (k)(2) of section 365''.
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