1.Short title; table of
contents
(a)This Act may be cited
as the Clean Fuels Innovation Act of
2012
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Programmatic environmental impact statements and land
use planning on covered land.
Sec. 4. Pilot program for development of renewable energy on
public land and expansion of pilot program to covered land.
Sec. 5. Royalties.
Sec. 6. Disposition of royalty revenue.
Sec. 7. Report and environmental impact analysis on development
of renewable energy on military installations.
Sec. 8. Study and report on mitigation banking.
2.In this title:
(1)The term covered land means land that
is—
(A)public land or National Forest System land;
and
(B)not excluded from
the development of renewable energy under—
(i)a final land use plan established under the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.);
(ii)a final land and resource management plan
established under the Forest and Rangeland Renewable Resources Planning Act of
1974 (16 U.S.C. 1600 et seq.); or
(iii)Federal law.
(2)The term Fund means the
Renewable Energy Resource Conservation Fund established under section
6(b).
(3)The term military installation has the
meaning given such term in section 2801(c) of title 10, United States
Code.
(4)The term public land has the meaning given the
term public lands in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702).
(5)The term renewable energy means energy
derived from—
(A)a renewable energy source (as defined in
section 2924 of title 10, United States Code); or
(B)algae.
(6)The term Secretary concerned means—
(A)the Secretary of
the Interior, with respect to public land; and
(B)the Secretary of
Agriculture, with respect to National Forest System land.
3.Programmatic
environmental impact statements and land use planning on covered land
(a)Programmatic
environmental impact statements for public landNot later than
one year after the date of the enactment of this Act, the Secretary of the
Interior shall, with respect to public land—
(1)complete the Programmatic Environmental
Impact Statement for Solar Energy Development in Six Southwestern States
(BLM/DES 10–59; DOE/EIS–0403) in accordance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) to analyze the potential impacts of
the development of renewable energy on such land and any amendments to the land
use plans in effect on such land on the date of the enactment of this Act
required for such development; and
(2)after conducting the analysis under
paragraph (1), amend the land use plans referred to in such paragraph, as the
Secretary determines is appropriate.
(b)Programmatic
environmental impact statements for National Forest System landNot later than two years after the date of
the enactment of this Act, the Secretary of Agriculture shall, with respect to
National Forest System land—
(1)publish in the Federal Register a notice of
intent to prepare a programmatic environmental impact statement in accordance
with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) to
analyze the potential impacts of the development of renewable energy on such
land and any amendments to the land use plans in effect on such land on the
date of the enactment of this Act required for such development; and
(2)after conducting the analysis under
paragraph (1), amend the land use plans referred to in such paragraph, as the
Secretary determines is appropriate.
(c)Effect on
processing applicationsThe requirement for completion of
programmatic environmental impact statements under this section shall not
result in any delay in processing or approving of applications for the
development of renewable energy on covered land.
4.Pilot program for
development of renewable energy on public land and expansion of pilot program
to covered land
(a)Pilot program on
selected public land
(1)Not
later than 180 days after the date of the enactment of this Act, the Secretary
of the Interior shall establish a renewable energy leasing pilot program under
which the Secretary conducts lease sales of certain sites located on covered
land administered by the Secretary for purposes of carrying out renewable
energy projects.
(2)Selection of
sites on covered land
(A)Not later than 90
days after the date the pilot program is established under paragraph (1), the
Secretary shall select from covered land administered by the Secretary two
sites for the development of renewable energy projects in each of the five
regional areas of the United States, as follows:
(i)The Northeast region, consisting of the
States of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire,
New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.
(ii)The Southeast region, consisting of the
District of Columbia and the States of Alabama, Florida, Georgia, Mississippi,
North Carolina, South Carolina, Tennessee, Virginia, and West Virginia.
(iii)The Central region, consisting of the
States of Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana,
Michigan, Missouri, Nebraska, Ohio, and Wisconsin.
(iv)The Southwest region, consisting of the
States of Arizona, California, Colorado, Hawaii, Nevada, New Mexico, Oklahoma,
and Texas.
(v)The Northwest region, consisting of the
States of Alaska, Idaho, Minnesota, Montana, North Dakota, Oregon, South
Dakota, Utah, Washington, and Wyoming.
(B)In selecting sites under subparagraph (A), the
Secretary shall—
(i)give
a preference to sites that the Secretary determines—
(I)are likely to
attract a high level of renewable energy industry interest;
(II)have a
comparatively low value for resources other than renewable energy; and
(III)would serve as
models for the expansion of the pilot program to other locations if the program
is expanded under subsection (c);
(ii)take into
consideration the value of the multiple resources of the covered land on which
such sites are located; and
(iii)not select any
site for which a right-of-way for site testing or construction has been issued
under title V of the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1761 et seq.).
(3)Lease sales of
project sites
(A)Except as provided in paragraph (4)(B)(i), not later than
180 days after the date on which sites are selected under paragraph (2), the
Secretary shall offer each site for competitive leasing under such terms and
conditions as the Secretary requires.
(B)Bidding on a site offered for lease under
this subsection shall be—
(i)limited to one
round;
(ii)open only to bidders who—
(I)submit a plan of
development for such site together with the bid; and
(II)the Secretary
determines are qualified under subparagraph (C)(ii); and
(iii)conducted using
a bidding system selected by the Secretary, including—
(I)a
cash bonus bids system requiring payment of the royalty established under this
title;
(II)a variable royalty bids system based on a
percentage of the gross proceeds from the sale of electricity produced from the
site offered for lease, except that the royalty shall not be less than the
royalty required under this title, together with a fixed cash bonus; or
(III)such other
bidding system as ensures a fair return to the public consistent with the
royalty established under this title.
(C)The Secretary shall—
(i)before conducting any lease sale under this
subsection, establish qualification requirements for bidders on a site offered
for lease that ensure that such bidders, with respect to renewable energy
projects—
(I)are able to
expeditiously develop such a project on the site;
(II)possess the
financial resources necessary to complete such a project;
(III)possess
knowledge of the technology needed to complete such a project;
(IV)meet the
eligibility requirements for leasing under the first section of the Mineral
Leasing Act (30 U.S.C. 181); and
(V)possess such other
qualifications as the Secretary determines are necessary; and
(ii)using the
requirements established under clause (i), determine whether a person is
qualified to be a bidder on a site offered for lease under this
subsection.
(D)Credit for bid
preparation expendituresIn
the case of a site offered for lease under this subsection with respect to
which more than one bid is submitted on the date of the lease sale of such
site, the Secretary shall give credit to each person who submitted a bid with
respect to such site for expenditures such person incurred in the preparation
of such bid.
(E)Fees, charges,
and commissionsSection 304
of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1734) shall
apply to a bid submitted under this subsection.
(4)
(A)The Secretary may establish such lease terms and
conditions, including the duration of the lease with respect to any site
offered for lease under this subsection.
(B)Short-term
leases for data collectionIn carrying out this subsection, the
Secretary shall—
(i)offer on a noncompetitive basis a
short-term lease on not less than one site selected under paragraph (2) for
purposes of data collection; and
(ii)upon the
expiration of the short-term lease, offer on a competitive basis a long-term
lease, giving credit toward the bonus bid submitted with respect to the
long-term lease to the holder of the short-term lease for any qualified
expenditures made by such holder to collect data or to develop the site during
such short-term lease.
(5)Subject
to section 5, the Secretary may collect bonus bids, royalties, fees, or other
payments (except rental payments) with respect to sites offered for lease under
this subsection.
(6)Not later than 90 days after the date on
which the Secretary conducts the final lease sale under this subsection, 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 on the results of each lease sale conducted under this subsection,
including—
(A)the level of
competitive interest;
(B)a summary of bids
and revenues received; and
(C)any other factors
that may have impacted the lease sale.
(7)
(A)Compliance with
land management and environmental lawsIn offering sites for
lease under this subsection, the Secretary shall comply with—
(i)all
Federal laws applicable to public land or National Forest System land;
and
(ii)Federal or State
environmental laws or any other relevant laws.
(B)Applicability to
renewable energy projects under other Federal lawsNothing
in this subsection shall be construed so as to prohibit the Secretary from
issuing rights-of-way with respect to renewable energy projects in compliance
with other Federal laws and regulations in effect on the date of the enactment
of this Act.
(8)Enforcement of
Federal land policy management
(A)Sections 302(c) and
303 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1732(c),
1733) shall apply to activities conducted on sites offered for lease under this
subsection.
(B)Effect on
enforcement authority under other Federal lawNothing in this
subsection shall be construed so as to reduce or limit the enforcement
authority vested in the Secretary of the Interior or the Attorney General on
covered land under any other Federal law.
(b)Temporary
extension of pilot programUntil final regulations are issued
under subsection (c)(4), the Secretary of the Interior shall continue to carry
out the pilot program under subsection (a) on the sites offered for lease under
such subsection. The Secretary may extend any lease issued for such sites under
subsection (a) under the same terms and conditions applicable to such lease on
the date of the lease sale as necessary until final regulations are issued
under subsection (c)(4) with respect to such sites.
(c)Expansion of
pilot program to all covered land
(1)Joint
determination requiredNot later than 5 years after the date of
the enactment of this Act, the Secretary of the Interior and the Secretary of
Agriculture shall jointly determine whether to expand the pilot program
established under subsection (a) to apply to all covered land, including sites
with respect to which leases were issued under subsection (a). In making such
determination, the Secretary of the Interior and the Secretary of Agriculture
shall—
(A)take into
consideration the results of the pilot program;
(B)consult
with—
(i)the
heads of Federal agencies and relevant State agencies (including State fish and
wildlife agencies);
(ii)interested
States, Indian tribes, and local governments;
(iii)representatives of the renewable energy
industries;
(iv)representatives of the environment,
conservation, and outdoor sporting communities; and
(v)the
public; and
(C)consider whether
such expansion—
(i)provides an effective means of developing
renewable energy; and
(ii)is
in the public interest.
(2)The pilot program
shall be expanded only if the Secretary of the Interior and the Secretary of
Agriculture determined to expand the pilot program under paragraph (1).
(3)Report on joint
determinationNot later than
60 days after making the determination under paragraph (1) to expand the pilot
program, the Secretary of the Interior and the Secretary of Agriculture shall
jointly submit to the Committee on Energy and Natural Resources of the Senate
and the Committee on Natural Resources of the House of Representatives a report
describing the basis and findings for the determination.
(4)Regulations to
implement expansionNot later than one year after making a
determination to expand the pilot program under paragraph (1), the Secretary of
the Interior and the Secretary of Agriculture shall jointly issue final
regulations to implement such expansion on covered land.
(5)Applicability of
provisions of pilot program to expanded program
(A)Except as provided in subparagraph (B), paragraphs (3),
(7), and (8) of subsection (a) shall apply to covered land offered for lease
under this subsection in the same manner as such paragraphs apply to sites
offered for lease under subsection (a), except that such paragraphs shall apply
as if the terms Secretary of the Interior and
Secretary read Secretary concerned
.
(B)Competitive
leasing not required under certain circumstancesThe requirement
under subsection (a)(3) that a lease be sold on a competitive basis shall not
apply to a lease issued under this subsection if the Secretary concerned
determines that—
(i)no
competitive interest exists for the covered land offered for lease;
(ii)the public interest would not be served by
the competitive issuance of a lease with respect to such covered land;
or
(iii)the lease is for a purpose described in
paragraph (7)(A)(ii).
(6)
(A)Subject to section 5,
the Secretary of the Interior and the Secretary of Agriculture shall jointly
establish fees, bonuses, or other payments (except rental payments) to ensure a
fair return to the United States for any lease issued under this
subsection.
(B)The Secretary concerned
may grant credit toward any bonus bid for a qualified expenditure by the holder
of a lease described in paragraph (7)(A)(ii) in any competitive lease sale held
for a long-term lease of the covered land that is the subject of the lease
described in such paragraph.
(C)
(i)Royalties and other terms and conditions of a lease
issued under this subsection shall be subject to readjustment—
(I)on the date that
is 15 years after the date on which the lease is issued; and
(II)every 10 years
thereafter.
(ii)Effective on the first day of the first
month beginning after the date of enactment of this Act and each year
thereafter, the amount of royalties or other terms and conditions subject to
readjustment under clause (i) shall be adjusted to reflect changes for the
12-month period ending on the most recent date for which data are available in
the Consumer Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.
(7)Lease duration,
administration, and readjustment
(A)
(i)Except as provided in clause (ii), a lease issued under
this subsection shall be for—
(I)an initial term of
25 years; and
(II)any additional
period after the initial 25-year term during which electricity is being
produced annually in commercial quantities from the lease.
(ii)In the case of a lease
issued under this subsection for the placement and operation of a
meteorological or data collection facility or for the development or
demonstration of a new renewable energy technology, such lease shall have a
term of not more than 5 years.
(B)The
Secretary of the Interior and the Secretary of Agriculture shall jointly
establish terms and conditions for the issuance, transfer, renewal, suspension,
and cancellation of a lease issued under this subsection.
(C)Readjustment
provision requiredEach lease
issued under this subsection shall provide for readjustment in accordance with
subparagraph (A).
(8)Surface-Disturbing
activitiesThe Secretary of
the Interior and the Secretary of Agriculture shall jointly issue regulations
regarding surface-disturbing activities conducted under any lease issued under
this subsection, including any reclamation and other actions necessary for the
conservation of surface resources.
(9)
(A)The Secretary
concerned shall require that the holder of a lease issued under this
subsection—
(i)furnish a surety
bond or other form of security, as prescribed by the Secretary;
(ii)provide for the
reclamation and restoration of the covered land that is the subject of the
lease; and
(iii)comply with such
other requirements as the Secretary considers necessary to protect the
interests of the public and the United States.
(B)Not less frequently than once every 5 years, the Secretary
concerned shall conduct a review of the adequacy of the surety bond or other
form of security provided by the holder of a lease issued under this
subsection.
5.
(a)The Secretary
concerned shall require as a term and condition of any lease issued under
section 4, the payment of a royalty. The Secretary of the Interior and the
Secretary of Agriculture shall establish such royalty pursuant to a joint
rulemaking that shall be a percentage of the gross proceeds from the sale of
electricity produced on covered land that is the subject of such lease at a
rate that—
(1)encourages production of renewable
energy;
(2)ensures a fair
return to the public comparable to the return that would be obtained on State
or private land; and
(3)encourages the
maximum energy generation while disturbing the least quantity of covered land
and other natural resources, including water.
(b)In establishing the royalty under
subsection (a), the Secretary of the Interior and the Secretary of Agriculture
shall consider the relative capacity factors of the source of the renewable
energy.
(c)Exclusive
payment on sale of electricityThe royalty under subsection (a) shall be
the only rent, royalty, or similar payment to the Federal Government required
with respect to the sale of electricity produced under a lease issued under
section 4.
(d)The Secretary
concerned may reduce the royalty rate established under subsection (a) if the
holder of a lease issued under this title shows by clear and convincing
evidence that—
(1)collection of the
full royalty would unreasonably burden energy generation on covered land that
is the subject of the lease; and
(2)the royalty
reduction is in the public interest.
(e)
(1)The Secretary of the
Interior and the Secretary of Agriculture shall jointly establish a
comprehensive inspection, collection, fiscal, and production accounting and
auditing system—
(A)to accurately
determine royalties, interest, fines, penalties, fees, deposits, and other
payments owed under this title; and
(B)to collect and account for the payments in
a timely manner.
(2)Applicability of
Federal Oil and Royalty Management ActThe provisions of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.) (including the civil
and criminal enforcement provisions of such Act) shall apply to leases issued
under this title with respect to renewable energy projects in the same manner
as such provisions apply to oil and gas leases.
(f)Not later than 5 years after the date of the enactment
of this Act and every 5 years thereafter, the Secretary of the Interior, in
consultation with the Secretary of Agriculture, shall submit to the Committee
on Energy and Natural Resources of the Senate and the Committee on Natural
Resources of the House of Representatives a report consisting of a review of
the collections and impacts of the royalties and fees collected under this
title, including—
(1)the total revenues received (by category)
on an annual basis as royalties from renewable energy development and
production (specified by energy source) on covered land;
(2)whether the revenues received from the
development of renewable energy development are comparable to the revenues
received for similar development on State or private land;
(3)any impact on the development of renewable
energy development and production on covered land as a result of the royalties;
and
(4)any recommendations with respect to changes
in Federal law (including regulations) relating to the amount or method of
collection (including auditing, compliance, and enforcement) of the
royalties.
(g)Not
later than one year after the date of the enactment of this Act, the Secretary
of the Interior and the Secretary of Agriculture shall jointly issue final
regulations to carry out this section.
6.Disposition of
royalty revenue
(a)Effective beginning on the date of the enactment of this
Act, all amounts collected by the Secretary concerned as royalties or bonuses
under subsection (a)(5) or (c)(6) of section 4, shall be distributed as
follows:
(1)Twenty-five percent shall be paid by the
Secretary of the Treasury to States within the boundaries of which the
royalties or bonuses are derived, to be allocated among such States based on
the percentage of covered land from which such royalties or bonuses are derived
in each State.
(2)Twenty-five percent shall be paid by the
Secretary of the Treasury to the counties within the boundaries of which the
royalties or bonuses are derived, to be allocated among such counties based on
the percentage of covered land from which such royalties or bonuses are derived
in each county.
(3)Twenty-five
percent shall be deposited in the Fund (established by subsection (b)).
(4)For the period that begins on the date of
the enactment of this Act and ending on the date that is 15 years after the
date of the enactment of this Act, 15 percent shall be paid by the Secretary of
the Treasury directly to the State offices of the Bureau of Land Management in
States within the boundaries of which the royalties or bonuses are derived for
purposes of reducing the number of renewable energy permits that have not been
processed before the date of the enactment of this Act, to be allocated among
such State offices based on the percentage of covered land from which the
royalties or bonuses are derived in each State.
(5)The remainder
shall be deposited into the general fund of the Treasury for purposes of
reducing the annual Federal budget deficit.
(b)Renewable Energy
Resource Conservation Fund
(1)There
is established in the Treasury of the United States a Renewable Energy Resource
Conservation Fund to be administered by the Secretary of the Interior.
(2)The Secretary shall use amounts in the Fund to make
payments to State agencies, Federal agencies, or other interested persons for
use for—
(A)mitigating the impacts of renewable energy
on Federal land, including—
(i)protecting fish
and wildlife corridors and other sensitive land; and
(ii)restoring fish
and wildlife habitat; and
(B)carrying out any activity authorized under
Public Law 88–578 (16 U.S.C. 460l–4 et seq.) in the State, except for the
acquisition of land, water, or interests therein within such State.
(3)Amounts in the Fund shall be available for expenditure,
in accordance with this subsection, without further appropriation and without
fiscal year limitation.
(4)
(A)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)Any
interest earned under subparagraph (A) may be expended in accordance with this
subsection.
(c) Allocation for
permitting after expiration of 15-Year period
(1)Certification by
SecretaryAt the end of the
15-year period described in subsection (a)(4), the Secretary shall certify
whether the State offices referred to in such subsection have adequately
reduced the renewable energy permitting backlog referred to in such
subsection.
(2)Allocation after
certificationIf the Secretary certifies under paragraph (1)
that—
(A)the State offices
referred to in such paragraph have not adequately reduced the backlog referred
to in such paragraph—
(i)the
15-year period described in subsection (a)(4) shall be extended by an
additional 15-year period; and
(ii)payments shall
continue to be made during that period as described in such subsection;
or
(B)the State offices referred to in such
paragraph have adequately reduced such backlog—
(i)two-thirds of the amount otherwise required
to be paid under subsection (a)(4) shall be added to the amount deposited in
the Fund established under subsection (b); and
(ii)one-third of such amount shall be deposited
into the general fund of the Treasury for purposes of reducing the annual
Federal budget deficit.
(d)Payments to
States and countiesAmounts
paid to States and counties under subsection (a) shall be used in a manner that
is consistent with section 35 of the Mineral Leasing Act (30 U.S.C.
191).
7.Report and
environmental impact analysis on development of renewable energy on military
installations
(a)Not later than two years after the date of
the enactment of this Act, the Secretary of Defense, in consultation with the
Secretary of the Interior, shall submit to the Committee on Armed Services and
the Committee on Natural Resources of the House of Representatives and the
Committee on Armed Services and the Committee on Energy and Natural Resources
of the Senate a report that—
(1)identifies
locations on military installations in the United States that—
(A)exhibit a high
potential for renewable energy production;
(B)are disturbed or otherwise have a
comparatively low value for uses other than for renewable energy production;
and
(C)could be developed for renewable energy
production in a manner consistent with all present and reasonably foreseeable
military training and operational missions and research, development, testing,
and evaluation requirements;
(2)describes the actions necessary for the
administration of the development of commercial-scale renewable energy projects
on military installations in the United States, including the legal authorities
governing authorization for that use; and
(3)makes
recommendations regarding—
(A)necessary changes
to Federal law (including regulations) for the development of renewable energy
projects;
(B)the legal
instruments available to carry out such development, including a lease,
contract, right-of-way, permit, or other form of authorization;
(C)methods of
improving coordination among the Federal, State, and local agencies, if any,
involved in authorizing such development; and
(D)the disposition of
revenues resulting from such development.
(b)Environmental
impact analysisNot later than one year after the report is
submitted under subsection (a), the Secretary of Defense, in consultation with
the Secretary of the Interior, shall publish in the Federal Register a notice
of intent to prepare an environmental impact analysis to support the
development of renewable energy on the locations identified in the report
submitted under subsection (a) as suitable for renewable energy
production.
8.Study and report
on mitigation banking
(a)
(1)Not later than 180
days after the date of enactment of this Act, the Secretary of the Interior and
the Secretary of Agriculture shall carry out a study to determine the
feasibility of carrying out a mitigation banking program on Federal land
administered by the Secretary of the Interior or the Secretary of Agriculture
for purposes of offsetting the impacts of renewable energy on such Federal
land.
(2)The
study under paragraph (1) shall—
(A)identify areas in
which—
(i)privately owned land is not available to
offset the impacts of renewable energy development on Federal land administered
by the Secretary of the Interior or the Secretary of Agriculture; or
(ii)mitigation investments on such Federal land
are likely to provide greater conservation value for the impacts of renewable
energy development on such Federal land; and
(B)examine—
(i)the
effectiveness of laws (including regulations) and policies in effect on the
date of the enactment of this Act in facilitating the development of mitigation
banks;
(ii)the
advantages and disadvantages of using mitigation banks on such Federal land to
mitigate impacts to natural resources on private land; and
(iii)any changes in
Federal law (including regulations) or policy necessary to further develop a
Federal mitigation banking program.
(b)Not later than 18
months after the date of the enactment of this Act, the Secretary of the
Interior and the Secretary of Agriculture shall jointly submit to Congress a
report that includes—
(1)the recommendations of the Secretary of the
Interior and the Secretary of Agriculture relating to—
(A)the most effective system for Federal land
administered by the Secretary of the Interior or the Secretary of Agriculture
to meet the goals of facilitating the development of a mitigation banking
program on such Federal land; and
(B)any change to
Federal law (including regulations) or policy necessary to address more
effectively the siting, development, and management of mitigation banking
programs on such Federal land to mitigate impacts to natural resources on
private land; and
(2)any administrative
action to be taken by the Secretary of the Interior and the Secretary of
Agriculture in response to the recommendations.
(c)Availability to
the publicNot later than 30
days after the date on which the report described in subsection (b) is
submitted to Congress, the Secretary of the Interior and the Secretary of
Agriculture shall make the results of the study available to the public.