[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2666 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2666
To promote the development of renewable energy on public land, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 22, 2019
Ms. McSally (for herself, Mr. Heinrich, Mr. Gardner, Mr. Udall, Mr.
Daines, Mr. Tester, Mr. Risch, and Mr. Bennet) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To promote the development of renewable energy on public land, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Public Land Renewable Energy
Development Act of 2019''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Covered land.--The term ``covered land'' means land
that is--
(A) public land; and
(B) not excluded from the development of
geothermal, solar, or wind energy under--
(i) a land use plan established under the
Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701 et seq.); or
(ii) other Federal law.
(2) Exclusion area.--The term ``exclusion area'' means
covered land that is identified by the Bureau of Land
Management as not suitable for development of renewable energy
projects.
(3) Federal land.--The term ``Federal land'' means--
(A) National Forest System land; and
(B) public land.
(4) Fund.--The term ``Fund'' means the Renewable Energy
Resource Conservation Fund established by section 9(c)(1).
(5) National forest system.--The term ``National Forest
System'' has the meaning given the term in section 11(a) of the
Forest and Rangeland Renewable Resources Planning Act of 1974
(16 U.S.C. 1609(a)).
(6) Priority area.--The term ``priority area'' means
covered land identified by the land use planning process of the
Bureau of Land Management as being a preferred location for a
renewable energy project, including a designated leasing area
(as defined in section 2801.5(b) of title 43, Code of Federal
Regulations (or a successor regulation)) that is identified
under the rule of the Bureau of Land Management entitled
``Competitive Processes, Terms, and Conditions for Leasing
Public Lands for Solar and Wind Energy Development and
Technical Changes and Corrections'' (81 Fed. Reg. 92122
(December 19, 2016)) (or a successor regulation).
(7) Public land.--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).
(8) Renewable energy project.--The term ``renewable energy
project'' means a project carried out on covered land that uses
wind, solar, or geothermal energy to generate energy.
(9) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(10) Variance area.--The term ``variance area'' means
covered land that--
(A) is not an exclusion area; and
(B) is not a priority area.
SEC. 3. LAND USE PLANNING; SUPPLEMENTS TO PROGRAMMATIC ENVIRONMENTAL
IMPACT STATEMENTS.
(a) Priority Areas.--
(1) In general.--The Secretary, in consultation with the
Secretary of Energy, shall establish priority areas on covered
land for geothermal, solar, and wind energy projects.
(2) Deadline.--
(A) Geothermal energy.--For geothermal energy, the
Secretary shall establish priority areas as soon as
practicable, but not later than 5 years, after the date
of enactment of this Act.
(B) Solar energy.--For solar energy, the Secretary
shall establish additional priority areas as soon as
practicable, but not later than 3 years, after the date
of enactment of this Act.
(C) Wind energy.--For wind energy, the Secretary
shall establish priority areas as soon as practicable,
but not later than 3 years, after the date of enactment
of this Act.
(b) Variance Areas.--To the maximum extent practicable, variance
areas shall be considered for renewable energy project development,
consistent with the principles of multiple use (as defined in section
103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1702)).
(c) Review and Modification.--Not less frequently than once every 5
years, the Secretary shall--
(1) review the adequacy of land allocations for geothermal,
solar, and wind energy priority and variance areas for the
purpose of encouraging new renewable energy development
opportunities; and
(2) based on the review carried out under paragraph (1),
add, modify, or eliminate priority, variance, and exclusion
areas.
(d) Compliance With the National Environmental Policy Act.--For
purposes of this section, compliance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall be accomplished--
(1) for geothermal energy, by supplementing the October
2008 final programmatic environmental impact statement for
geothermal leasing in the Western United States, including by
incorporating any additional regional analyses that were
completed by Federal agencies after the date on which the
programmatic environmental impact statement was finalized;
(2) for solar energy, by supplementing the July 2012 final
programmatic environmental impact statement for the Solar
Energy Program of the Bureau of Land Management, including by
incorporating any additional regional analyses that were
completed by Federal agencies after the date on which the
programmatic environmental impact statement was finalized; and
(3) for wind energy, by supplementing the July 2005 final
programmatic environmental impact statement for wind energy
development, including by incorporating any additional regional
analyses that were completed by Federal agencies after the date
on which the programmatic environmental impact statement was
finalized.
(e) No Effect on Processing Applications.--A requirement to prepare
a supplement to a programmatic environmental impact statement under
this section shall not result in any delay in processing an application
for a renewable energy project.
(f) Coordination.--In developing a supplement required by this
section, the Secretary shall coordinate, on an ongoing basis, with
appropriate State, Tribal, and local governments, transmission
infrastructure owners and operators, developers, and other appropriate
entities to ensure that priority areas identified by the Secretary
are--
(1) economically viable (including having access to
existing or planned transmission capacity);
(2) likely to avoid or minimize conflict with habitat for
animals and plants, recreation, cultural resources, and other
uses of covered land; and
(3) consistent with section 202 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1712), including
subsection (c)(9) of that section (43 U.S.C. 1712(c)(9)).
SEC. 4. ENVIRONMENTAL REVIEW ON COVERED LAND.
(a) In General.--If the Secretary determines that a proposed
renewable energy project has been sufficiently analyzed by a
programmatic environmental impact statement conducted under section
3(d), the Secretary shall not require any additional review under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(b) Additional Environmental Review.--If the Secretary determines
that additional environmental review under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) is necessary for a proposed
renewable energy project, the Secretary shall rely on the analysis in
the programmatic environmental impact statement conducted under section
3(d) to the maximum extent practicable when analyzing the potential
impacts of the project.
(c) Relationship to Other Law.--Nothing in this section modifies or
supersedes any requirement under applicable law.
SEC. 5. PROGRAM TO IMPROVE RENEWABLE ENERGY PROJECT PERMIT
COORDINATION.
(a) Establishment.--
(1) In general.--The Secretary shall establish and
implement, through the offices established under paragraph (2),
a program to improve Federal permit coordination with respect
to renewable energy projects on covered land.
(2) Establishment of offices.--To establish and implement
the program described in paragraph (1), and to carry out other
necessary activities, as determined by the Secretary, the
Secretary shall establish--
(A) an office to serve as the National Renewable
Energy Coordination Office; and
(B) State, district, or field Renewable Energy
Coordination Offices, for such time as the Secretary
determines to be appropriate.
(b) Memorandum of Understanding.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall enter into a
memorandum of understanding for purposes of this section,
including to specifically expedite the environmental analysis
of applications for projects proposed in a variance area or a
priority area, with--
(A) the Secretary of Defense; and
(B) the Secretary of Agriculture.
(2) State participation.--The Secretary may request the
Governor of any interested State to be a signatory to the
memorandum of understanding under paragraph (1).
(c) Designation of Qualified Staff.--
(1) In general.--Not later than 30 days after the date on
which the memorandum of understanding under subsection (b) is
executed, all Federal signatories, as appropriate, shall
identify for the National Renewable Energy Coordination Office
established under subsection (a)(2)(A) and each Renewable
Energy Coordination Office established under subsection
(a)(2)(B) 1 or more employees who have expertise in the
regulatory issues relating to the office in which the employee
is employed, including, as applicable, particular expertise
in--
(A) consultation regarding, and preparation of,
biological opinions under section 7 of the Endangered
Species Act of 1973 (16 U.S.C. 1536);
(B) permits under section 404 of the Federal Water
Pollution Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air Act (42
U.S.C. 7401 et seq.);
(D) the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq.);
(E) the Migratory Bird Treaty Act (16 U.S.C. 703 et
seq.);
(F) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.);
(G) implementation of the requirements of section
306108 of title 54, United States Code (formerly known
as section 106 of the National Historic Preservation
Act);
(H) planning under section 14 of the National
Forest Management Act of 1976 (16 U.S.C. 472a); and
(I) the Act of June 8, 1940 (54 Stat. 250, chapter
278; 16 U.S.C. 668 et seq.) (commonly known as the
``Bald Eagle Protection Act'').
(2) Duties.--Each employee assigned under paragraph (1)
shall--
(A) be responsible for addressing all issues
relating to the jurisdiction of the home office or
agency of the employee; and
(B) participate as part of the team of personnel
working on proposed energy projects, planning,
monitoring, inspection, enforcement, and environmental
analyses.
(d) Clarification of Existing Authority.--Section 307 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1737) is
amended by adding at the end the following:
``(h) Donations.--The Secretary, in accordance with subsection (c),
may accept donations from renewable energy companies working on public
lands, including donations to help cover the costs of environmental
reviews.''.
(e) Report to Congress.--
(1) In general.--Not later than February 1 of the first
fiscal year beginning after the date of enactment of this Act,
and each February 1 thereafter, the Secretary shall submit to
the Committee on Energy and Natural Resources of the Senate and
the Committee on Natural Resources of the House of
Representatives a report describing the progress made under the
program established under subsection (a)(1) during the
preceding year.
(2) Inclusions.--Each report under paragraph (1) shall
include--
(A) projections for renewable energy production and
capacity installations; and
(B) a description of any problems relating to
leasing, permitting, siting, or production.
SEC. 6. INCREASING ECONOMIC CERTAINTY.
(a) In General.--The Secretary shall consider the total amount paid
in acreage rental rates, capacity fees, and other recurring annual fees
in evaluating existing rates paid by renewable energy projects for the
use of Federal land.
(b) Increases in Base Rental Rates.--After a base rental rate is
established on an issuance of a right-of-way authorization, for the
entire term of the right-of-way authorization, any increase in the base
rental rate shall be limited to the Implicit Price Deflator-Gross
Domestic Product Index published by the Bureau of Economic Analysis of
the Department of Commerce on the date of issuance of the right-of-way
authorization.
(c) Reductions in Base Rental Rates.--The Secretary may reduce
acreage rental rates and capacity fees for existing and new wind and
solar authorizations if the Secretary determines--
(1) that the existing rates--
(A) exceed fair market value;
(B) impose economic hardships;
(C) limit commercial interest in a competitive
lease sale or right-of-way grant; or
(D) are not competitively priced compared to other
available land; or
(2) that a reduced rental rate or capacity fee is necessary
to promote the greatest use of wind and solar energy resources,
especially inside priority areas.
SEC. 7. LIMITED GRANDFATHERING.
(a) Definition of Project.--In this section, the term ``project''
means a system described in section 2801.9(a)(4) of title 43, Code of
Federal Regulations (as in effect on the date of enactment of this
Act).
(b) Requirement To Pay Rents and Fees.--The owner of a project that
applied for a right-of-way under section 501 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1761) on or before December 19,
2016, shall be obligated to pay with respect to the right-of-way all
rents and fees in effect before the effective date of the rule of the
Bureau of Land Management entitled ``Competitive Processes, Terms, and
Conditions for Leasing Public Lands for Solar and Wind Energy
Development and Technical Changes and Corrections'' (81 Fed. Reg. 92122
(December 19, 2016)).
SEC. 8. RENEWABLE ENERGY GOAL.
The Secretary and the Secretary of Agriculture, through management
of public land and administration of Federal laws, shall seek to issue
permits that, in total, authorize production of not less than 25
gigawatts of electricity from wind, solar, and geothermal energy
projects by not later than December 31, 2025.
SEC. 9. DISPOSITION OF REVENUES.
(a) Disposition of Revenues.--Without further appropriation or
fiscal year limitation, of the amounts collected as bonus bids,
rentals, fees, or other payments under a right-of-way, permit, lease,
or other authorization (other than under section 504(g) of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1764(g))) for the
development of wind or solar energy on covered land or National Forest
System land--
(1) for the period beginning on January 1, 2020, and ending
on December 31, 2039--
(A) 25 percent shall be paid by the Secretary of
the Treasury to the State within the boundaries of
which the revenue is derived;
(B) 25 percent shall be paid by the Secretary of
the Treasury to the 1 or more counties within the
boundaries of which the revenue is derived, to be
allocated among the counties based on the percentage of
land from which the revenue is derived;
(C) 15 percent shall be deposited in the Treasury
and be made available to the Secretary to carry out the
program established under section 5(a), including the
transfer of the funds by the Bureau of Land Management
to other Federal agencies and State agencies to
facilitate the processing of renewable energy permits
on Federal land, with priority given to using the
amounts, to the maximum extent practicable without
detrimental impacts to emerging markets, to expediting
the issuance of permits required for the development of
renewable energy projects in the States from which the
revenues are derived; and
(D) 35 percent shall be deposited in the Fund; and
(2) beginning on January 1, 2040--
(A) 25 percent shall be paid by the Secretary of
the Treasury to the State within the boundaries of
which the revenue is derived;
(B) 25 percent shall be paid by the Secretary of
the Treasury to the 1 or more counties within the
boundaries of which the revenue is derived, to be
allocated among the counties based on the percentage of
land from which the revenue is derived;
(C) 10 percent shall be deposited in the Treasury
and be made available to the Secretary to carry out the
program established under section 5(a), including the
transfer of the funds by the Bureau of Land Management
to other Federal agencies and State agencies to
facilitate the processing of renewable energy permits
on Federal land, with priority given to using the
amounts, to the maximum extent practicable without
detrimental impacts to emerging markets, to expediting
the issuance of permits required for the development of
renewable energy projects in the States from which the
revenues are derived; and
(D) 40 percent shall be deposited in the Fund.
(b) Payments to States and Counties.--
(1) In general.--Amounts paid to States and counties under
subsection (a) shall be used consistent with section 35 of the
Mineral Leasing Act (30 U.S.C. 191).
(2) Payments in lieu of taxes.--A payment to a county under
paragraph (1) shall be in addition to a payment in lieu of
taxes received by the county under chapter 69 of title 31,
United States Code.
(c) Renewable Energy Resource Conservation Fund.--
(1) In general.--There is established in the Treasury a
fund, to be known as the ``Renewable Energy Resource
Conservation Fund'', which shall be administered by the
Secretary, in consultation with the Secretary of Agriculture.
(2) Use of funds.--The Secretary may make amounts in the
Fund available to Federal, State, local, and Tribal agencies to
be distributed in regions in which renewable energy projects
are located on Federal land, for the purposes of--
(A) restoring and protecting--
(i) fish and wildlife habitat for affected
species;
(ii) fish and wildlife corridors for
affected species; and
(iii) water resources in areas affected by
wind, geothermal, or solar energy development;
and
(B) preserving and improving recreational access to
Federal land and water in an affected region through an
easement, right-of-way, or other instrument from
willing landowners for the purpose of enhancing public
access to existing Federal land and water that is
inaccessible or restricted.
(3) Partnerships.--The Secretary may enter into cooperative
agreements with State, local, and Tribal agencies, nonprofit
organizations, and other appropriate entities to carry out the
activities described in subparagraphs (A) and (B) of paragraph
(2).
(4) Investment of fund.--
(A) In general.--Any amounts deposited in the Fund
shall earn interest in an amount determined by the
Secretary of the Treasury on the basis of the current
average market yield on outstanding marketable
obligations of the United States of comparable
maturities.
(B) Use.--Any interest earned under subparagraph
(A) may be expended in accordance with this subsection.
(5) Report to congress.--At the end of each fiscal year,
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
identifying--
(A) the amounts described in subsection (a) that
were collected during that fiscal year, organized by
source;
(B) the amount and purpose of payments made to each
Federal, State, local, and Tribal agency under
paragraph (2) during that fiscal year; and
(C) the amount remaining in the Fund at the end of
the fiscal year.
(6) Intent of congress.--It is the intent of Congress that
the revenues deposited and used in the Fund shall supplement
(and not supplant) annual appropriations for activities
described in subparagraphs (A) and (B) of paragraph (2).
SEC. 10. PROMOTING AND ENHANCING DEVELOPMENT OF GEOTHERMAL ENERGY.
(a) In General.--Section 234(a) of the Energy Policy Act of 2005
(42 U.S.C. 15873(a)) is amended by striking ``in the first 5 fiscal
years beginning after the date of enactment of this Act'' and inserting
``through fiscal year 2022''.
(b) Authorization.--Section 234(b) of the Energy Policy Act of 2005
(42 U.S.C. 15873(b)) is amended--
(1) by striking ``Amounts'' and inserting the following:
``(1) In general.--Amounts''; and
(2) by adding at the end the following:
``(2) Authorization.--Effective for fiscal year 2020 and
each fiscal year thereafter, amounts deposited under subsection
(a) shall be available to the Secretary of the Interior for
expenditure, without further appropriation or fiscal year
limitation, to implement the Geothermal Steam Act of 1970 (30
U.S.C. 1001 et seq.) and this Act.''.
SEC. 11. FACILITATION OF COPRODUCTION OF GEOTHERMAL ENERGY ON OIL AND
GAS LEASES.
Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) is
amended--
(1) in subsection (c), by striking ``The Secretary'' and
inserting the following:
``(1) In general.--The Secretary'';
(2) in subsection (b), by redesignating paragraph (3) as
paragraph (2) and moving the paragraph so as to appear after
paragraph (1) of subsection (c) (as designated by paragraph
(1)); and
(3) in subsection (c) (as amended by paragraphs (1) and
(2)), by adding at the end the following:
``(3) Land subject to oil and gas lease.--
``(A) Definition of land.--In this paragraph, the
term `land' means land that--
``(i) is under an oil and gas lease issued
pursuant to the Mineral Leasing Act (30 U.S.C.
181 et seq.) or the Mineral Leasing Act for
Acquired Lands (30 U.S.C. 351 et seq.);
``(ii) is subject to an approved
application for permit to drill; and
``(iii) from which oil and gas production
is occurring.
``(B) Geothermal energy.--Land may be available for
noncompetitive leasing under this section to the holder
of an oil and gas lease described in subparagraph
(A)(i)--
``(i) if the Secretary determines that
geothermal energy will be produced from a well
that is producing or is capable of producing
oil and gas; and
``(ii) to provide for the coproduction of
geothermal energy with oil and gas.''.
SEC. 12. NONCOMPETITIVE LEASING OF ADJOINING AREAS FOR DEVELOPMENT OF
GEOTHERMAL RESOURCES.
Section 4(c) of the Geothermal Steam Act of 1970 (30 U.S.C.
1003(c)) (as amended by section 11) is amended by adding at the end the
following:
``(4) Adjoining land.--
``(A) Definitions.--In this paragraph:
``(i) Fair market value per acre.--The term
`fair market value per acre' means a dollar
amount per acre that--
``(I) subject to subclause (II), is
equal to the market value per acre, as
determined by the Secretary--
``(aa) under regulations
promulgated under this
paragraph;
``(bb) taking into account
the data described in
subparagraph (B)(iii) regarding
a valid discovery under
subclause (I) of that
subparagraph; and
``(cc) not later than 180
days after the date on which
the Secretary receives an
application for a lease under
this paragraph; and
``(II) shall be not less than the
greater of--
``(aa) 4 times the median
amount paid per acre for all
land leased under this Act
during the preceding year; or
``(bb) $50.
``(ii) Industry standards.--The term
`industry standards' means the standards by
which a qualified geothermal professional
assesses whether downhole or flowing
temperature measurements with indications of
permeability are sufficient to produce energy
from geothermal resources, as determined
through flow or injection testing or
measurement of lost circulation while drilling.
``(iii) Qualified federal land.--The term
`qualified Federal land' means land that is
available for leasing under this Act.
``(iv) Qualified geothermal professional.--
The term `qualified geothermal professional'
means an individual who is an engineer or
geoscientist in good professional standing with
at least 5 years of experience in geothermal
exploration, development, or project
assessment.
``(v) Qualified lessee.--The term
`qualified lessee' means a person that is
eligible to hold a geothermal lease under this
Act (including applicable regulations).
``(vi) Valid discovery.--The term `valid
discovery' means a discovery, by a new or
existing slim hole or production well, of a
geothermal resource that exhibits downhole or
flowing temperature measurements with
indications of permeability that are sufficient
to meet industry standards.
``(B) Authority.--An area of qualified Federal land
that adjoins other land for which a qualified lessee
holds a legal right to develop geothermal resources may
be available for a noncompetitive lease under this
section to the qualified lessee at the fair market
value per acre, if--
``(i) the area of qualified Federal land--
``(I) consists of not less than 1
acre and not more than 640 acres; and
``(II) is not already leased under
this Act or nominated to be leased
under subsection (a);
``(ii) the qualified lessee has not
previously received a noncompetitive lease
under this paragraph in connection with the
valid discovery for which data has been
submitted under clause (iii)(I); and
``(iii) sufficient geological and other
technical data prepared by a qualified
geothermal professional has been submitted by
the qualified lessee to the applicable Federal
land management agency that would lead
individuals who are experienced in the subject
matter to believe that--
``(I) there is a valid discovery of
geothermal resources on the land for
which the qualified lessee holds the
legal right to develop geothermal
resources; and
``(II) those geothermal resources
extend into the adjoining areas.
``(C) Regulations for determining fair market
value.--The Secretary shall promulgate regulations
establishing a procedure to determine fair market value
per acre under subparagraph (A)(i)(I) for purposes of
this paragraph.
``(D) Administration.--
``(i) In general.--The Secretary shall--
``(I) publish a notice of any
request to lease land under this
paragraph;
``(II) provide to a qualified
lessee and publish, with an opportunity
for public comment for a period of 30
days, any proposed determination under
this paragraph of the fair market value
per acre of an area that the qualified
lessee seeks to lease under this
paragraph; and
``(III) provide to the qualified
lessee and any adversely affected party
the opportunity to appeal the final
determination of the fair market value
per acre of the area in an
administrative proceeding before the
applicable Federal land management
agency, in accordance with applicable
law (including regulations).
``(ii) Limitation on nomination.--After
publication of a notice of request to lease
land under this paragraph, the Secretary may
not accept any nomination to lease that land
under subsection (a) unless the request has
been denied or withdrawn.
``(iii) Annual rental.--For purposes of
section 5(a)(3), a lease awarded under this
paragraph shall be considered a lease awarded
in a competitive lease sale.
``(E) Regulations.--Not later than 270 days after
the date of enactment of the Public Land Renewable
Energy Development Act of 2019, the Secretary shall
issue regulations to carry out this paragraph.''.
SEC. 13. SAVINGS CLAUSE.
Notwithstanding any other provision of this Act, the Secretary
shall continue to manage public land under the principles of multiple
use and sustained yield in accordance with title I of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.), including
due consideration of mineral and nonrenewable energy-related projects
and other nonrenewable energy uses, for the purposes of land use
planning, permit processing, and conducting environmental reviews.
<all>