[Congressional Record Volume 156, Number 87 (Thursday, June 10, 2010)]
[Senate]
[Pages S4856-S4857]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID:
  S. 3482. A bill to provide for the development of solar pilot project 
areas on public land in Lincoln County, Nevada; to the Committee on 
Energy and Natural Resources.
  Mr. REID. Mr. President, today I rise to introduce the American Solar 
Energy Pilot Leasing Act of 2010. Solar energy development is a 
critical factor in creating jobs and making the United States energy 
independent. This legislation will provide a pilot program for the 
Department of the Interior to develop a solar leasing program in 
Nevada.
  The Secretary of the Interior, though the Bureau of Land Management, 
BLM, is currently developing a west wide solar energy program based on 
existing laws and regulations. The BLM, however, does not currently 
have the legal authority to lease public lands for solar development. 
This bill will establish, in Lincoln County, the first Federal solar 
leasing program in the U.S., which will serve as a pilot project for 
the Department of the Interior in order to guide development of solar 
leasing throughout the west in the years to come.
  The American Solar Energy Pilot Leasing Act designates two solar 
development zones in Lincoln County for commercial solar energy 
development. The 10,945 acre Dry Lake zone and the 2,845 acre Delamar 
Valley zone are within high solar potential areas identified by the BLM 
and were selected by Lincoln County based on extensive public input. 
Since the solar zones border the Southwest Intertie Project, SWIP, 
transmission corridor, these projects will create the opportunity for 
southern Nevada and California to tap directly into Lincoln County's 
abundant renewable power resources.
  Our bill directs the agency to consult with the County and local 
stakeholders before offering both parcels for lease not more than 60 
days after the bill becomes law. In order to ensure efficient and wise 
development throughout the west, the BLM is also directed to establish 
diligent development requirements to ensure leased areas are 
efficiently developed and to promulgate regulations to guide 
development of the burgeoning solar leasing program.
  The act directs the BLM to set a royalty rate at a level that will 
encourage efficient production of solar energy and ensure a fair return 
to the public for the necessary development of the public lands. As 
part of this program, the BLM is given the flexibility to charge a 
lower royalty, or even no royalty, for up to five years after energy 
generation begins as an incentive to promote the maximum generation of 
solar energy.
  Royalties and fees from these solar leasing pilot projects will be 
disbursed into four accounts. Thirty-five percent will be deposited 
into the Renewable Energy Mitigation Fish and Wildlife Fund--
established by this act to protect and restore wildlife and their 
habitat and to implement the Land and Water Conservation Fund in 
Nevada. The State of Nevada and Lincoln County will each receive 25 
percent of the collected royalties and fees. The last 15 percent will 
be directed to the BLM to fund renewable energy permit processing over 
the next 10 years. At the end of that 10-year period, this 15 percent 
will be directed to the Renewable Energy Mitigation Fish and Wildlife 
Fund, in addition to the 35 percent initially set aside for this 
account.
  As you know, I have been a longtime champion for the development of 
clean, renewable energy resources. Nevada has unparalleled potential 
for solar energy development and is poised to lead our Nation in clean 
energy development and innovation. This is a significant step toward 
moving our country away from dirty fossil fuels and creating a new job 
market in the west. The model established by this legislation will also 
reinvest a responsible portion of the royalties and fees from solar 
energy development into the states and rural communities whose land is 
being used to power our Nation.
  I would like to thank Lincoln County and a great number of sportsmen, 
ranchers, and conservationists who have helped us shape this 
legislation. I am pleased to bring this bill to the committee and I 
look forward to working with Chairman Bingaman, Ranking Member 
Murkowski and the other distinguished members to move this bill through 
the legislative process.
  Mr. President, I ask for unanimous consent that the text of the bill 
be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3482

       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 ``American Solar Energy Pilot 
     Leasing Act of 2010''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) County.--The term ``County'' means Lincoln County, 
     Nevada.
       (2) Federal land.--The term ``Federal land'' means any of 
     the Federal land in the State under the administrative 
     jurisdiction of the Bureau of Land Management that is 
     identified as a ``solar development zone'' on the maps.

[[Page S4857]]

       (3) Fund.--The term ``Fund'' means the Renewable Energy 
     Mitigation and Fish and Wildlife Fund established by section 
     3(d)(5)(A).
       (4) Map.--The term ``map'' means each of--
       (A) the map entitled ``Dry Lake Valley Solar Development 
     Zone'' and dated May 25, 2010; and
       (B) the map entitled ``Delamar Valley Solar Development 
     Zone'' and dated May 25, 2010.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Director of the Bureau of 
     Land Management.
       (6) State.--The term ``State'' means the State of Nevada.

     SEC. 3. DEVELOPMENT OF SOLAR PILOT PROJECT AREAS ON PUBLIC 
                   LAND IN LINCOLN COUNTY, NEVADA.

       (a) Designation.--In accordance with sections 201 and 202 
     of the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1711, 1712) and subject to valid existing rights, the 
     Secretary shall designate the Federal land as a solar pilot 
     project area.
       (b) Applicable Law.--The designation of the solar pilot 
     project area under subsection (a) shall be subject to the 
     requirements of--
       (1) this Act;
       (2) the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1701 et seq.); and
       (3) any other applicable law (including regulations).
       (c) Solar Lease Sales.--
       (1) In general.--The Secretary shall conduct lease sales 
     and issue leases for commercial solar energy development on 
     the Federal land, in accordance with this subsection.
       (2) Deadline for lease sales.--Not later than 60 days after 
     the date of enactment of this Act, the Secretary, after 
     consulting with affected governments and other stakeholders, 
     shall conduct lease sales for the Federal land.
       (3) Easements, special-use permits, and rights-of-way.--
     Except for the temporary placement and operation of testing 
     or data collection devices, as the Secretary determines to be 
     appropriate, and the rights-of-way granted under section 
     301(b)(1) of the Lincoln County Conservation, Recreation, and 
     Development Act of 2004 (Public Law 108-424; 118 Stat. 2413) 
     and BLM Case File N-78803, no new easements, special-use 
     permits, or rights-of-way shall be allowed on the Federal 
     land during the period beginning on the date of enactment of 
     this Act and ending on the date of the issuance of a lease 
     for the Federal land.
       (4) Diligent development requirements.--In issuing a lease 
     under this subsection, the Secretary shall include work 
     requirements and mandatory milestones--
       (A) to ensure that diligent development is carried out 
     under the lease; and
       (B) to reduce speculative behavior.
       (5) Land management.--The Secretary shall--
       (A) establish the duration of leases issued under this 
     subsection;
       (B) include provisions in the lease requiring the holder of 
     a lease granted under this subsection--
       (i) to furnish a reclamation bond or other form of security 
     determined to be appropriate by the Secretary;
       (ii) on completion of the activities authorized by the 
     lease--

       (I) to restore the Federal land that is subject to the 
     lease to the condition in which the Federal land existed 
     before the lease was granted; or
       (II) to conduct mitigation activities if restoration of the 
     land to the condition described in subclause (I) is 
     impracticable; and

       (iii) to comply with such other requirements as the 
     Secretary considers necessary to protect the interests of the 
     public and the United States; and
       (C)(i) establish best management practices to ensure the 
     sound, efficient, and environmentally responsible development 
     of solar resources on the Federal land in a manner that would 
     avoid, minimize, and mitigate actual and anticipated impacts 
     to habitat and ecosystem function resulting from the 
     development; and
       (ii) include provisions in the lease requiring renewable 
     energy operators to comply with the practices established 
     under clause (i).
       (d) Royalties.--
       (1) In general.--The Secretary shall establish royalties, 
     fees, rentals, bonuses, and any other payments the Secretary 
     determines to be appropriate to ensure a fair return to the 
     United States for any lease issued under this section.
       (2) Rate.--Any lease issued under this section shall 
     require the payment of a royalty established by the Secretary 
     by regulation in an amount that is equal to a percentage of 
     the gross proceeds from the sale of electricity at a rate 
     that--
       (A) encourages production of solar energy;
       (B) ensures a fair return to the public comparable to the 
     return that would be obtained on State and private land; and
       (C) encourages the maximum energy generation practicable 
     using the least amount of land and other natural resources, 
     including water.
       (3) Royalty relief.--To promote the maximum generation of 
     renewable energy, the Secretary may provide that no royalty 
     or a reduced royalty is required under a lease for a period 
     not to exceed 5 years beginning on the date on which 
     generation is initially commenced on the Federal land subject 
     to the lease.
       (4) Disposition of proceeds.--
       (A) In general.--Of the amounts collected as royalties, 
     fees, rentals, bonuses, or other payments under a lease 
     issued under this section--
       (i) 25 percent shall be paid by the Secretary of the 
     Treasury to the State within the boundaries of which the 
     income is derived;
       (ii) 25 percent shall be paid by the Secretary of the 
     Treasury to the 1 or more counties within the boundaries of 
     which the income is derived;
       (iii) 15 percent shall--

       (I) for the period beginning on the date of enactment of 
     this Act and ending on the date specified in subclause (II), 
     be deposited in the Treasury of the United States to help 
     facilitate the processing of renewable energy permits by the 
     Bureau of Land Management in the State, subject to 
     subparagraph (B)(i)(I); and
       (II) beginning on the date that is 10 years after the date 
     of enactment of this Act, be deposited in the Fund; and

       (iv) 35 percent shall be deposited in the Fund.
       (B) Limitations.--
       (i) Renewable energy permits.--For purposes of subclause 
     (I) of subparagraph (A)(iii)--

       (I) not more than $10,000,000 shall be deposited in the 
     Treasury at any 1 time under that subclause; and
       (II) the following shall be deposited in the Fund:

       (aa) Any amounts collected under that subclause that are 
     not obligated by the date specified in subparagraph 
     (A)(iii)(II).
       (bb) Any amounts that exceed the $10,000,000 deposit limit 
     under subclause (I).
       (ii) Fund.--Any amounts deposited in the Fund under clause 
     (i)(II) or subparagraph (A)(iii)(II) shall be in addition to 
     amounts deposited in the Fund under subparagraph (A)(iv).
       (5) Renewable energy mitigation and fish and wildlife 
     fund.--
       (A) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Renewable 
     Energy Mitigation and Fish and Wildlife Fund'', to be 
     administered by the Secretary, for use in the State.
       (B) Use of funds.--Amounts in the Fund shall be available 
     to the Secretary, who may make the amounts available to the 
     State or other interested parties for the purposes of--
       (i) mitigating impacts of renewable energy on public land, 
     with priority given to land affected by the solar development 
     zones designated under this Act, including--

       (I) protecting wildlife corridors and other sensitive land; 
     and
       (II) fish and wildlife habitat restoration; and

       (ii) carrying out activities authorized under the Land and 
     Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et 
     seq.) in the State.
       (C) Availability of amounts.--Amounts in the Fund shall be 
     available for expenditure, in accordance with this paragraph, 
     without further appropriation, and without fiscal year 
     limitation.
       (D) Investment of fund.--
       (i) 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.
       (ii) Use.--Any interest earned under clause (i) may be 
     expended in accordance with this paragraph.
       (e) Priority Development.--
       (1) In general.--Within the County, the Secretary shall 
     give highest priority consideration to implementation of the 
     solar lease sales provided for under this Act.
       (2) Evaluation.--The Secretary shall evaluate other solar 
     development proposals in the County not provided for under 
     this Act in consultation with the State, County, and other 
     interested stakeholders.

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