[Congressional Record Volume 156, Number 104 (Wednesday, July 14, 2010)]
[Senate]
[Pages S5851-S5858]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CARPER (for himself and Mr. Bennett):
  S. 3579. A bill to protect information relating to consumers, to 
require notice of security breaches, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. CARPER. Mr. President, I rise today with my colleague Senator 
Bennett to introduce an important and bipartisan piece of legislation 
that will help protect American's from identity and financial theft.
  As you may have heard in the news, in 2009 Heartland Payment 
Systems--a national company that processes payments for retailers and 
restaurants located in nearly all 50 states--was hacked, leaving 
possibly 100 million people at risk of identity fraud or financial 
theft. These types of scenarios happen more than we would like and have 
the potential to keep American's from getting a loan, a new bank 
account, or--in worst case scenarios--from even paying the monthly 
bills. This situation is simply unacceptable and this bill will help 
address these serious problems.
  Our bill requires entities such as financial institutions, retailers, 
and Federal agencies to safeguard sensitive information before it is 
compromised, investigate possible security breaches, and to notify 
customers when there is a substantial risk of identity theft or account 
fraud.
  For example, these new requirements would apply to retailers who take 
credit card information, data brokers who compile private information, 
and government agencies that possess nonpublic personal information.
  My colleague and I modeled our legislation after the data security 
and breach-response regime established under the Gramm-Leach-Bliley Act 
of 1999, and subsequent regulations. It also builds on existing law to 
better ensure federal and state regulators comply with the law and to 
make certain that data security procedures are uniformly applied.
  Lastly, we need to replace the current patchwork of State and Federal 
regulations for identity theft with a national law, like this one, that 
provides uniform protections across the country. Our comprehensive 
approach will better serve consumers by making it easier for businesses 
and government agencies to take the steps necessary to adequately 
protect all Americans from identity theft and account fraud.
  I look forward to working with my colleagues to get this important 
and necessary bill enacted before it is too late. I think everyone can 
agree that our identities and bank accounts are some of the most 
important aspects of our lives and that, if stolen, can at a minimum 
make life extremely difficult.
  Mr. President, I ask 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. 3579

       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 ``Data Security Act of 2010''.

     SEC. 2. DEFINITIONS.

       For purposes of this Act, the following definitions shall 
     apply:
       (1) Affiliate.--The term ``affiliate'' means any company 
     that controls, is controlled by, or is under common control 
     with another company.
       (2) Agency.--The term ``agency'' has the same meaning as in 
     section 551(1) of title 5, United States Code.
       (3) Breach of data security.--
       (A) In general.--The term ``breach of data security'' means 
     the unauthorized acquisition of sensitive account information 
     or sensitive personal information.
       (B) Exception for data that is not in usable form.--
       (i) In general.--The term ``breach of data security'' does 
     not include the unauthorized acquisition of sensitive account 
     information or sensitive personal information that is 
     maintained or communicated in a manner that is not usable--

       (I) to commit identity theft; or
       (II) to make fraudulent transactions on financial accounts.

       (ii) Rule of construction.--For purposes of this 
     subparagraph, information that is maintained or communicated 
     in a manner that is not usable includes any information that 
     is maintained or communicated in an encrypted, redacted, 
     altered, edited, or coded form.
       (4) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (5) Consumer.--The term ``consumer'' means an individual.
       (6) Consumer reporting agency that compiles and maintains 
     files on consumers on a nationwide basis.--The term 
     ``consumer reporting agency that compiles and maintains files 
     on consumers on a nationwide basis'' has the same meaning as 
     in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 
     1681a(p)).
       (7) Covered entity.--
       (A) In general.--The term ``covered entity'' means any--

[[Page S5852]]

       (i) entity, the business of which is engaging in financial 
     activities, as described in section 4(k) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1843(k));
       (ii) financial institution, including any institution 
     described in section 313.3(k) of title 16, Code of Federal 
     Regulations, as in effect on the date of enactment of this 
     Act;
       (iii) entity that maintains or otherwise possesses 
     information that is subject to section 628 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681w); or
       (iv) other individual, partnership, corporation, trust, 
     estate, cooperative, association, or entity that maintains or 
     communicates sensitive account information or sensitive 
     personal information.
       (B) Exception.--The term ``covered entity'' does not 
     include any agency or any other unit of Federal, State, or 
     local government or any subdivision of such unit.
       (8) Financial institution.--The term ``financial 
     institution'' has the same meaning as in section 509 of the 
     Gramm-Leach-Bliley Act (15 U.S.C. 6809).
       (9) Sensitive account information.--The term ``sensitive 
     account information'' means a financial account number 
     relating to a consumer, including a credit card number or 
     debit card number, in combination with any security code, 
     access code, password, or other personal identification 
     information required to access the financial account.
       (10) Sensitive personal information.--
       (A) In general.--The term ``sensitive personal 
     information'' means the first and last name, address, or 
     telephone number of a consumer, in combination with any of 
     the following relating to such consumer:
       (i) Social security account number.
       (ii) Driver's license number or equivalent State 
     identification number.
       (iii) Taxpayer identification number.
       (B) Exception.--The term ``sensitive personal information'' 
     does not include publicly available information that is 
     lawfully made available to the general public from--
       (i) Federal, State, or local government records; or
       (ii) widely distributed media.
       (11) Substantial harm or inconvenience.--
       (A) In general.--The term ``substantial harm or 
     inconvenience'' means--
       (i) material financial loss to, or civil or criminal 
     penalties imposed on, a consumer, due to the unauthorized use 
     of sensitive account information or sensitive personal 
     information relating to such consumer; or
       (ii) the need for a consumer to expend significant time and 
     effort to correct erroneous information relating to the 
     consumer, including information maintained by a consumer 
     reporting agency, financial institution, or government 
     entity, in order to avoid material financial loss, increased 
     costs, or civil or criminal penalties, due to the 
     unauthorized use of sensitive account information or 
     sensitive personal information relating to such consumer.
       (B) Exception.--The term ``substantial harm or 
     inconvenience'' does not include--
       (i) changing a financial account number or closing a 
     financial account; or
       (ii) harm or inconvenience that does not result from 
     identity theft or account fraud.

     SEC. 3. PROTECTION OF INFORMATION AND SECURITY BREACH 
                   NOTIFICATION.

       (a) Security Procedures Required.--
       (1) In general.--Each covered entity shall implement, 
     maintain, and enforce reasonable policies and procedures to 
     protect the confidentiality and security of sensitive account 
     information and sensitive personal information which is 
     maintained or is being communicated by or on behalf of a 
     covered entity, from the unauthorized use of such information 
     that is reasonably likely to result in substantial harm or 
     inconvenience to the consumer to whom such information 
     relates.
       (2) Limitation.--Any policy or procedure implemented or 
     maintained under paragraph (1) shall be appropriate to the--
       (A) size and complexity of a covered entity;
       (B) nature and scope of the activities of such entity; and
       (C) sensitivity of the consumer information to be 
     protected.
       (b) Investigation Required.--
       (1) In general.--If a covered entity determines that a 
     breach of data security has or may have occurred in relation 
     to sensitive account information or sensitive personal 
     information that is maintained or is being communicated by, 
     or on behalf of, such covered entity, the covered entity 
     shall conduct an investigation--
       (A) to assess the nature and scope of the breach;
       (B) to identify any sensitive account information or 
     sensitive personal information that may have been involved in 
     the breach; and
       (C) to determine if such information is reasonably likely 
     to be misused in a manner causing substantial harm or 
     inconvenience to the consumers to whom the information 
     relates.
       (2) Neural networks and information security programs.--In 
     determining the likelihood of misuse of sensitive account 
     information under paragraph (1)(C), a covered entity shall 
     consider whether any neural network or security program has 
     detected, or is likely to detect or prevent, fraudulent 
     transactions resulting from the breach of security.
       (c) Notice Required.--If a covered entity determines under 
     subsection (b)(1)(C) that sensitive account information or 
     sensitive personal information involved in a breach of data 
     security is reasonably likely to be misused in a manner 
     causing substantial harm or inconvenience to the consumers to 
     whom the information relates, such covered entity, or a third 
     party acting on behalf of such covered entity, shall--
       (1) notify, in the following order--
       (A) the appropriate agency or authority identified in 
     section 5;
       (B) an appropriate law enforcement agency;
       (C) any entity that owns, or is obligated on, a financial 
     account to which the sensitive account information relates, 
     if the breach involves a breach of sensitive account 
     information;
       (D) each consumer reporting agency that compiles and 
     maintains files on consumers on a nationwide basis, if the 
     breach involves sensitive personal information relating to 
     5,000 or more consumers; and
       (E) all consumers to whom the sensitive account information 
     or sensitive personal information relates; and
       (2) take reasonable measures to restore the security and 
     confidentiality of the sensitive account information or 
     sensitive personal information involved in the breach.
       (d) Compliance.--
       (1) In general.--A financial institution shall be deemed to 
     be in compliance with--
       (A) subsection (a), and any regulations prescribed under 
     such subsection, if such institution maintains policies and 
     procedures to protect the confidentiality and security of 
     sensitive account information and sensitive personal 
     information that are consistent with the policies and 
     procedures of such institution that are designed to comply 
     with the requirements of section 501(b) of the Gramm-Leach-
     Bliley Act (15 U.S.C. 6801(b)) and any regulations or 
     guidance prescribed under that section that are applicable to 
     such institution; and
       (B) subsections (b) and (c), and any regulations prescribed 
     under such subsections, if such institution--
       (i)(I) maintains policies and procedures to investigate and 
     provide notice to consumers of breaches of data security that 
     are consistent with the policies and procedures of such 
     institution that are designed to comply with the 
     investigation and notice requirements established by 
     regulations or guidance under section 501(b) of the Gramm-
     Leach-Bliley Act (15 U.S.C. 6801(b)) that are applicable to 
     such institution; or
       (II) is an affiliate of a bank holding company that 
     maintains policies and procedures to investigate and provide 
     notice to consumers of breaches of data security that are 
     consistent with the policies and procedures of a bank that is 
     an affiliate of such institution, and that bank's policies 
     and procedures are designed to comply with the investigation 
     and notice requirements established by any regulations or 
     guidance under section 501(b) of the Gramm-Leach-Bliley Act 
     (15 U.S.C. 6801(b)) that are applicable to that bank; and
       (ii) provides for notice to the entities described under 
     subparagraphs (B), (C), and (D) of subsection (c)(1), if 
     notice is provided to consumers pursuant to the policies and 
     procedures of such institution described in clause (i).
       (2) Definitions.--For purposes of this subsection, the 
     terms ``bank holding company'' and ``bank'' shall have the 
     same meaning given such terms under section 2 of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841).

     SEC. 4. IMPLEMENTING REGULATIONS.

       (a) In General.--Except as provided under section 6, the 
     agencies and authorities identified in section 5, with 
     respect to the covered entities that are subject to the 
     respective enforcement authority of such agencies and 
     authorities, shall prescribe regulations to implement this 
     Act.
       (b) Coordination.--Each agency and authority required to 
     prescribe regulations under subsection (a) shall consult and 
     coordinate with each other agency and authority identified in 
     section 5 so that, to the extent possible, the regulations 
     prescribed by each agency and authority are consistent and 
     comparable.
       (c) Method of Providing Notice to Consumers.--The 
     regulations required under subsection (a) shall--
       (1) prescribe the methods by which a covered entity shall 
     notify a consumer of a breach of data security under section 
     3; and
       (2) allow a covered entity to provide such notice by--
       (A) written, telephonic, or e-mail notification; or
       (B) substitute notification, if providing written, 
     telephonic, or e-mail notification is not feasible due to--
       (i) lack of sufficient contact information for the 
     consumers that must be notified; or
       (ii) excessive cost to the covered entity.
       (d) Content of Consumer Notice.--The regulations required 
     under subsection (a) shall--
       (1) prescribe the content that shall be included in a 
     notice of a breach of data security that is required to be 
     provided to consumers under section 3; and
       (2) require such notice to include--
       (A) a description of the type of sensitive account 
     information or sensitive personal information involved in the 
     breach of data security;
       (B) a general description of the actions taken by the 
     covered entity to restore the security and confidentiality of 
     the sensitive account information or sensitive personal 
     information involved in the breach of data security; and

[[Page S5853]]

       (C) the summary of rights of victims of identity theft 
     prepared by the Commission under section 609(d) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681g), if the breach of data 
     security involves sensitive personal information.
       (e) Timing of Notice.--The regulations required under 
     subsection (a) shall establish standards for when a covered 
     entity shall provide any notice required under section 3.
       (f) Law Enforcement Delay.--The regulations required under 
     subsection (a) shall allow a covered entity to delay 
     providing notice of a breach of data security to consumers 
     under section 3 if a law enforcement agency requests such a 
     delay in writing.
       (g) Service Providers.--The regulations required under 
     subsection (a) shall--
       (1) require any party that maintains or communicates 
     sensitive account information or sensitive personal 
     information on behalf of a covered entity to provide notice 
     to that covered entity if such party determines that a breach 
     of data security has, or may have, occurred with respect to 
     such information; and
       (2) ensure that there is only 1 notification responsibility 
     with respect to a breach of data security.
       (h) Timing of Regulations.--The regulations required under 
     subsection (a) shall--
       (1) be issued in final form not later than 6 months after 
     the date of enactment of this Act; and
       (2) take effect not later than 6 months after the date on 
     which they are issued in final form.

     SEC. 5. ADMINISTRATIVE ENFORCEMENT.

       (a) In General.--Section 3, and the regulations required 
     under section 4, shall be enforced exclusively under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) a national bank, a Federal branch or Federal agency of 
     a foreign bank, or any subsidiary thereof (other than a 
     broker, dealer, person providing insurance, investment 
     company, or investment adviser), by the Office of the 
     Comptroller of the Currency;
       (B) a member bank of the Federal Reserve System (other than 
     a national bank), a branch or agency of a foreign bank (other 
     than a Federal branch, Federal agency, or insured State 
     branch of a foreign bank), a commercial lending company owned 
     or controlled by a foreign bank, an organization operating 
     under section 25 or 25A of the Federal Reserve Act (12 U.S.C. 
     601,604), or a bank holding company and its nonbank 
     subsidiary or affiliate (other than a broker, dealer, person 
     providing insurance, investment company, or investment 
     adviser), by the Board of Governors of the Federal Reserve 
     System;
       (C) a bank, the deposits of which are insured by the 
     Federal Deposit Insurance Corporation (other than a member of 
     the Federal Reserve System), an insured State branch of a 
     foreign bank, or any subsidiary thereof (other than a broker, 
     dealer, person providing insurance, investment company, or 
     investment adviser), by the Board of Directors of the Federal 
     Deposit Insurance Corporation; and
       (D) a savings association, the deposits of which are 
     insured by the Federal Deposit Insurance Corporation, or any 
     subsidiary thereof (other than a broker, dealer, person 
     providing insurance, investment company, or investment 
     adviser), by the Director of the Office of Thrift 
     Supervision;
       (2) the Federal Credit Union Act (12 U.S.C. 1751 et seq.), 
     by the National Credit Union Administration Board with 
     respect to any federally insured credit union;
       (3) the Securities Exchange Act of 1934 (15 U.S.C.78a et 
     seq.), by the Securities and Exchange Commission with respect 
     to any broker or dealer;
       (4) the Investment Company Act of 1940 (15 U.S.C. 80a-1 et 
     seq.), by the Securities and Exchange Commission with respect 
     to any investment company;
       (5) the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et 
     seq.), by the Securities and Exchange Commission with respect 
     to any investment adviser registered with the Securities and 
     Exchange Commission under that Act;
       (6) the Commodity Exchange Act (7 U.S.C. 1 et seq.), by the 
     Commodity Futures Trading Commission with respect to any 
     futures commission merchant, commodity trading advisor, 
     commodity pool operator, or introducing broker;
       (7) the provisions of title XIII of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 4501 et seq.), 
     by the Director of Federal Housing Enterprise Oversight (and 
     any successor to such functional regulatory agency) with 
     respect to the Federal National Mortgage Association, the 
     Federal Home Loan Mortgage Corporation, and any other entity 
     or enterprise (as defined in that title) subject to the 
     jurisdiction of such functional regulatory agency under that 
     title, including any affiliate of any such enterprise;
       (8) State insurance law, in the case of any person engaged 
     in providing insurance, by the applicable State insurance 
     authority of the State in which the person is domiciled; and
       (9) the Federal Trade Commission Act (15 U.S.C. 41 et 
     seq.), by the Commission for any other covered entity that is 
     not subject to the jurisdiction of any agency or authority 
     described under paragraphs (1) through (8).
       (b) Extension of Federal Trade Commission Enforcement 
     Authority.--The authority of the Commission to enforce 
     compliance with section 3, and the regulations required under 
     section 4, under subsection (a)(8) shall--
       (1) notwithstanding the Federal Aviation Act of 1958 (49 
     U.S.C. App. 1301 et seq.), include the authority to enforce 
     compliance by air carriers and foreign air carriers; and
       (2) notwithstanding the Packers and Stockyards Act (7 
     U.S.C. 181 et seq.), include the authority to enforce 
     compliance by persons, partnerships, and corporations subject 
     to the provisions of that Act.
       (c) No Private Right of Action.--
       (1) In general.--This Act, and the regulations prescribed 
     under this Act, may not be construed to provide a private 
     right of action, including a class action with respect to any 
     act or practice regulated under this Act.
       (2) Civil and criminal actions.--No civil or criminal 
     action relating to any act or practice governed under this 
     Act, or the regulations prescribed under this Act, shall be 
     commenced or maintained in any State court or under State 
     law, including a pendent State claim to an action under 
     Federal law.

     SEC. 6. PROTECTION OF INFORMATION AT FEDERAL AGENCIES.

       (a) Data Security Standards.--Each agency shall implement 
     appropriate standards relating to administrative, technical, 
     and physical safeguards--
       (1) to insure the security and confidentiality of the 
     sensitive account information and sensitive personal 
     information that is maintained or is being communicated by, 
     or on behalf of, that agency;
       (2) to protect against any anticipated threats or hazards 
     to the security of such information; and
       (3) to protect against misuse of such information, which 
     could result in substantial harm or inconvenience to a 
     consumer.
       (b) Security Breach Notification Standards.--Each agency 
     shall implement appropriate standards providing for 
     notification of consumers when such agency determines that 
     sensitive account information or sensitive personal 
     information that is maintained or is being communicated by, 
     or on behalf of, such agency--
       (1) has been acquired without authorization; and
       (2) is reasonably likely to be misused in a manner causing 
     substantial harm or inconvenience to the consumers to whom 
     the information relates.

     SEC. 7. RELATION TO STATE LAW.

       No requirement or prohibition may be imposed under the laws 
     of any State with respect to the responsibilities of any 
     person to--
       (1) protect the security of information relating to 
     consumers that is maintained or communicated by, or on behalf 
     of, such person;
       (2) safeguard information relating to consumers from 
     potential misuse;
       (3) investigate or provide notice of the unauthorized 
     access to information relating to consumers, or the potential 
     misuse of such information for fraudulent, illegal, or other 
     purposes; or
       (4) mitigate any loss or harm resulting from the 
     unauthorized access or misuse of information relating to 
     consumers.

     SEC. 8. DELAYED EFFECTIVE DATE FOR CERTAIN PROVISIONS.

       (a) Covered Entities.--Sections 3 and 7 shall take effect 
     on the later of--
       (1) 1 year after the date of enactment of this Act; or
       (2) the effective date of the final regulations required 
     under section 4.
       (b) Agencies.--Section 6 shall take effect 1 year after the 
     date of enactment of this Act.
                                 ______
                                 
      By Mr. LUGAR:
  S. 3581. A bill to implement certain defense trade treaties; to the 
Committee on Foreign Relations.
  Mr. LUGAR. Mr. President, I rise today to introduce the Defense Trade 
Treaty Implementation Act of 2010.
  The purpose of this bill is to provide authority to implement two 
treaties on defense trade cooperation currently pending before the 
Senate--one with the United Kingdom and one with Australia. These 
treaties would facilitate defense cooperation with two close allies by 
eliminating licensing requirements for certain categories of defense 
articles.
  I have long supported the objectives of these treaties. Indeed, in 
2003--before the treaties were negotiated--I introduced legislation 
that would have provided the President the authority to waive licensing 
requirements for similar defense trade with the United Kingdom and 
Australia.
  Subsequently, the Bush administration negotiated these treaties, and 
they were submitted to the Senate in 2007. To date, the Senate has not 
been able to act on the treaties, in significant part because of 
confusion and uncertainty about how they would be implemented and 
enforced in U.S. law.
  This legislation would address the problem by providing clear 
legislative authority under the Arms Export Control Act to implement 
and enforce the treaties. In particular, it would provide authority to 
exempt from licensing requirements under the Arms Export Control Act 
exports of defense articles made in connection with the treaties.

[[Page S5854]]

It would provide authority for the President to issue regulations 
pursuant to the Arms Export Control Act to implement and enforce the 
treaties. It would provide authority to allow violations or abuses of 
the treaty to be prosecuted under enforcement provisions of the Arms 
Export Control Act. It would provide for notification to the Congress 
of significant exports of defense articles made pursuant to the 
treaties.
  Previous efforts by both the Bush and Obama administrations to 
develop a viable approach for implementing and enforcing the treaties 
without new legislation have been unsuccessful to date, and have 
created unfortunate delays in bringing these treaties into force. I 
believe that this legislation will put the implementation and 
enforcement of the treaties on a far sounder and more certain footing, 
and eliminate the confusion that has led to these delays.
  I look forward to working with other members and with the 
administration on this legislation. It is my hope that passage of this 
legislation, together with a resolution of advice and consent to the 
treaties containing appropriate protections for the Senate's role in 
overseeing arms exports and approving significant future changes to the 
treaty regime, may allow the treaties to enter into force this year.
  Mr. President, I ask 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. 3581

       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 ``Defense Trade Treaty 
     Implementation Act of 2010''.

     SEC. 2. EXEMPTION FROM REQUIREMENTS FOR BILATERAL AGREEMENTS.

       Section 38(j)(1) of the Arms Export Control Act (22 U.S.C. 
     2778(j)(1)) is amended--
       (1) in the subparagraph heading for subparagraph (B), by 
     inserting ``for canada'' after ``Exception''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) Exception for defense trade cooperation treaties.--
     The requirement to conclude a bilateral agreement in 
     accordance with subparagraph (A) shall not apply with respect 
     to an exemption from the licensing requirements of this Act 
     for the export of defense items to give effect to any of the 
     following defense trade cooperation treaties, provided that 
     the treaty has entered into force pursuant to Article II, 
     Section 2, clause 2 of the Constitution of the United States:
       ``(i) The Treaty Between the Government of the United 
     States of America and the Government of the United Kingdom of 
     Great Britain and Northern Ireland Concerning Defense Trade 
     Cooperation, done at Washington and London June 21 and 26, 
     2007 (and any implementing arrangement thereto).
       ``(ii) The Treaty Between the Government of the United 
     States of America and the Government of Australia Concerning 
     Defense Trade Cooperation, done at Sydney September 23, 2007 
     (and any implementing arrangement thereto).''.

     SEC. 3. ENFORCEMENT.

       (a) Criminal Violations.--Section 38(c) of such Act is 
     amended by striking ``this section or section 39, or any rule 
     or regulation issued under either section'' and inserting 
     ``this section, section 39, a treaty referred to in 
     subsection (j)(1)(C), or any rule or regulation issued under 
     this section or section 39, including any rule or regulation 
     issued under this section to implement or enforce a treaty 
     referred to in subsection (j)(1)(C) or an implementing 
     arrangement pursuant to such treaty''.
       (b) Enforcement Powers of President.--Section 38(e) of such 
     Act is amended by striking ``defense services,'' and 
     inserting ``defense services, including defense articles and 
     defense services exported or imported pursuant to a treaty 
     referred to in subsection (j)(1)(C),''.
       (c) Notification Regarding Exemptions From Licensing 
     Requirements.--Section 38(f) of such Act is amended by adding 
     at the end the following new paragraph:
       ``(4) Paragraph (2) shall not apply with respect to an 
     exemption under subsection (j)(1)(A) to give effect to a 
     treaty referred to in subsection (j)(1)(C) (and any 
     implementing arrangements to such treaty), provided that the 
     President promulgates regulations to implement and enforce 
     such treaty under this section and section 39.''.

     SEC. 4. CONGRESSIONAL NOTIFICATION.

       (a) Eligibility for Defense Articles or Defense Articles.--
     Section 3(d)(3)(A) of such Act (22 U.S.C. 2753(d)(3)(A)) is 
     amended by inserting after ``approved under section 38 of 
     this Act'' the following: ``or has been exempted from the 
     licensing requirements of this Act pursuant to section 38(j) 
     of this Act''.
       (b) Presidential Certifications.--
       (1) Export licenses.--Section 36(c) of such Act (22 U.S.C. 
     2776(c)) is amended by adding at the end the following new 
     paragraph:
       ``(6) An export pursuant to a treaty referred to in section 
     38(j)(1)(C) of this Act to which the provisions of paragraph 
     (1) would apply absent an exemption granted under section 
     38(j)(1) of this Act shall not take place until 15 days after 
     the President has submitted a certification with respect to 
     such export in a similar manner, and containing comparable 
     information, as required under paragraph (1).''.
       (2) Commercial technical assistance or manufacturing 
     licensing agreements.--Section 36(d) of such Act (22 U.S.C. 
     2776(d)) is amended by adding at the end the following new 
     paragraph:
       ``(6) An export pursuant to a treaty referred to in section 
     38(j)(1)(C) of this Act to which the provisions of paragraph 
     (1) would apply absent an exemption granted under section 
     38(j)(1) of this Act shall not take place until 15 days after 
     the President has submitted a certification with respect to 
     such export in a similar manner, and containing comparable 
     information, as required under paragraph (1).''.

     SEC. 5. IMPLEMENTING REGULATIONS.

       The President is authorized to issue regulations pursuant 
     to the Arms Export Control Act (22 U.S.C. 2751 et seq.) to 
     implement and enforce the Treaty Between the Government of 
     the United States of America and the Government of the United 
     Kingdom of Great Britain and Northern Ireland Concerning 
     Defense Trade Cooperation, done at Washington and London June 
     21 and 26, 2007 (and any implementing arrangement thereto), 
     and the Treaty Between the Government of the United States of 
     America and the Government of Australia Concerning Defense 
     Trade Cooperation, done at Sydney September 23, 2007 (and any 
     implementing arrangement thereto), consistent with other 
     applicable provisions of the Arms Export Control Act, as 
     amended by this Act, and with the terms of any resolution of 
     advice and consent adopted by the Senate with respect to 
     either treaty.

     SEC. 6. RULE OF CONSTRUCTION.

       Nothing in this Act, or in the Treaty Between the 
     Government of the United States of America and the Government 
     of the United Kingdom of Great Britain and Northern Ireland 
     Concerning Defense Trade Cooperation, done at Washington and 
     London on June 21 and 26, 2007 (and any implementing 
     arrangement thereto), or in the Treaty Between the Government 
     of the United States of America and the Government of 
     Australia Concerning Defense Trade Cooperation, done at 
     Sydney, September 23, 2007 (and any implementing arrangement 
     thereto), or in any regulation issued to implement either 
     treaty, shall be construed to modify or supersede any 
     provision of law or regulation other than the Arms Export 
     Control Act (22 U.S.C. 2751 et seq.), as amended by this Act, 
     and regulations issued pursuant to such Act.
                                 ______
                                 
      By Mr. UDALL of Colorado (for himself and Mr. Bennet):
  S. 3585. A bill to amend title 10, United States Code, to reform 
Department of Defense energy policy, and for other purposes; to the 
Committee on Armed Services.
  Mr. UDALL of Colorado. Mr. President, today I am introducing 
legislation to help the Pentagon turn energy from a source of risk to a 
source of advantage. The Department of Defense, DOD, Energy Security 
Act would decrease the Pentagon's consumption of petroleum, reduce 
reliance on the grid, and help plan for the future. All of this would 
help achieve an important goal that we all support: enhancing our 
national security.
  I am grateful to my former colleague on the House Armed Services 
Committee, Representative Gabrielle Giffords of Arizona, who introduced 
the counterpart bill in the House of Representatives. I am also 
grateful to Senator Bennet for cosponsoring this legislation. I look 
forward to continuing to work with both of them on this important 
legislation and on this important issue.
  As a member of the Senate Armed Services Committee and of the Energy 
and Natural Resources Committee, I have focused on the intersection of 
defense and energy for some time.
  The United States is the world's largest consumer of energy. We 
depend on foreign imports for nearly 60 percent of our oil. Nearly 
every military challenge we face is either derived from or impacted by 
our reliance on fossil fuels and foreign energy sources.
  The Pentagon is a large microcosm of this even larger problem. The 
U.S. military is the single largest consumer of energy in the world--
consuming more energy per day than 85 percent of the world's countries. 
It is the largest electricity consumer in the federal government and 
the single largest buyer of fuel in the United States--using 2 percent 
of our total national consumption.
  Energy supply security affects DOD's ability to accomplish its 
mission, and

[[Page S5855]]

efforts to secure supply lines and deliver fuel in-theater directly 
result in the deaths of service members charged with protecting it. But 
our military's reliance is not just on the battlefield. At home, 
defense facilities rely on a fragile national grid, leaving critical 
assets vulnerable. The Defense Science Board found in its 2008 report 
``More Fight--Less Fuel'' that ``critical national security and 
homeland defense missions are at an unacceptably high risk of extended 
outage from failure of the grid.''
  The Pentagon's energy consumption has serious national security 
implications, but it also presents opportunities. As the Logistics 
Management Institute wrote, ``Aggressively developing and applying 
energy-saving technologies to military applications would potentially 
do more to solve the most pressing long-term challenges facing DOD and 
our national security than any other single investment area.''
  That is why I am introducing this legislation. The Department of 
Defense Energy Security Act addresses energy supply and use by 
decreasing consumption by facilities and vehicles and increasing the 
use of renewable electricity sources to relieve the Department's 
reliance on external power sources. In addition, the bill sets 
overarching policies to implement sustainable acquisition practices, 
sets new DOD Energy Performance Goals, and requires DOD to develop an 
Energy Performance Plan and an implementation assessment for 
accomplishing its goal of deriving 25 percent of its electricity from 
renewable sources by 2025.
  Utilizing alternative energy sources and energy efficiency 
technologies can help our military increase energy reliability and 
reduce its dependence on oil; improve efficiency in operations, 
platforms, and vehicles; reduce the costs to taxpayers of military-
consumed electricity and fuel; expand portable clean technology options 
for use in combat and logistics; act as an anchor customer for the 
alternative fuels and energy efficiency industries; and reduce grid 
vulnerabilities at our military installations.
  Reducing our reliance on fossil fuels and foreign sources of energy 
is a goal we all share. Helping the Defense Department achieve this 
goal should be a national priority. I urge my colleagues--of both 
parties--to join me in supporting this legislation.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Tester, Mr. Merkley, Mr. Udall of 
        Colorado, and Mr. Begich):
  S. 3586. A bill to promote the mapping and development of United 
States geothermal resources by establishing a direct loan program for 
high risk geothermal exploration wells; to the Committee on Energy and 
Natural Resources.
  Mr. REID. Mr. President, I ask 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. 3586

       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 ``Geothermal Exploration Act 
     of 2010''.

     SEC. 2. GEOTHERMAL EXPLORATORY DRILLING LOAN PROGRAM.

       (a) Definitions.--In this section:
       (1) Fund.--The term ``Fund'' means the Geothermal 
     Investment Fund established under subsection (h).
       (2) Program.--The term ``program'' means the direct loan 
     program for high risk geothermal exploration wells 
     established under this section.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy
       (b) Establishment.--The Secretary shall establish a direct 
     loan program for high risk geothermal exploration wells.
       (c) Applications.--An applicant that seeks to receive a 
     loan under the program may submit to the Secretary an 
     application for the loan at such time, in such form, and 
     containing such information as the Secretary may prescribe.
       (d) Project Criteria.--
       (1) In general.--In selecting applicants for loans under 
     this section to carry out projects under the program, the 
     Secretary shall consider--
       (A) the potential for unproven geothermal resources that 
     would be explored and developed under a project;
       (B) the expertise and experience of an applicant in 
     developing geothermal resources; and
       (C) the importance of the project in meeting the goals of 
     the Department of Energy.
       (2) Preference.--In selecting applicants for loans under 
     this section to carry out projects under the program, the 
     Secretary shall provide a preference for previously 
     unexplored, underexplored, or unproven geothermal resources 
     in a variety of geologic and geographic settings.
       (e) Data Sharing.--Data from all exploratory wells that are 
     carried out under the program shall be provided to the 
     Secretary and the Secretary of the Interior for use in 
     mapping national geothermal resources and other uses, 
     including--
       (1) subsurface geologic data;
       (2) metadata;
       (3) borehole temperature data; and
       (4) inclusion in the National Geothermal Data System of the 
     Department of Energy.
       (f) Administration.--
       (1) Cost share.--
       (A) In general.--The Secretary shall determine the cost 
     share for a loan made under this section.
       (B) Higher risks.--The Secretary may base the cost share 
     percentage for loans made under this section on a sliding 
     scale, with higher Federal shares awarded to projects with 
     higher risks.
       (2) Number of wells.--The Secretary shall determine the 
     number of wells for each selected geothermal project for 
     which a loan may be made under this section.
       (3) Unproductive projects.--The Secretary may grant further 
     delays or dispense with the repayment obligation on a 
     demonstration that a selected geothermal project is 
     unproductive.
       (g) Loan Repayment.--
       (1) Commencement.--The recipient of a loan made under this 
     section for a geothermal facility shall commence repayment of 
     the loan beginning on the earlier of--
       (A) the date that is 4 years after the date the loan is 
     made; or
       (B) the date on which the geothermal facility enters into 
     commercial production.
       (2) Term.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term of a loan made under this section shall be 4 years 
     beginning on the applicable loan repayment commencement date 
     under paragraph (1).
       (B) Extension.--The Secretary may extend the term of a loan 
     under this section for not more than 4 years.
       (3) Use of loan repayments.--Amounts repaid on loans made 
     under this section shall be deposited in the Fund.
       (h) Geothermal Investment Fund.--
       (1) Establishment of fund.--There is established in the 
     Treasury of the United States a fund to be known as the 
     ``Geothermal Investment Fund'', to be administered by the 
     Secretary, to be available without fiscal year limitation and 
     not subject to appropriation, to carry out this section.
       (2) Transfers to fund.--The Fund shall consist of such 
     amounts as are appropriated to the Fund under subsection (j).
       (3) Prohibition.--Amounts in the Fund may not be made 
     available for any purpose other than a purpose described in 
     paragraph (1).
       (4) Annual reports.--
       (A) In general.--Not later than 60 days after the end of 
     each fiscal year beginning with fiscal year 2011, the 
     Secretary of Energy shall submit to the the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Energy and Commerce of the House of Representatives a 
     report on the operation of the Fund during the fiscal year.
       (B) Contents.--Each report shall include, for the fiscal 
     year covered by the report, the following:
       (i) A statement of the amounts deposited into the Fund.
       (ii) A description of the expenditures made from the Fund 
     for the fiscal year, including the purpose of the 
     expenditures.
       (iii) Recommendations for additional authorities to fulfill 
     the purpose of the Fund.
       (iv) A statement of the balance remaining in the Fund at 
     the end of the fiscal year.
       (i) Guidelines.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall develop guidelines 
     for the implementation of the program.
       (j) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as are 
     necessary for each of fiscal years 2011 through 2020.
                                 ______
                                 
      By Mr. REID (for himself and Mr. Tester):
  S. 3587. A bill to require the Secretary of the Interior to establish 
a competitive leasing program for wind and solar energy development on 
Federal land, and for other purposes; to the Committee on Energy and 
Natural Resources.
  Mr. REID. Mr. President, I ask 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. 3587

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

[[Page S5856]]

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

       (a) Definitions.--In this section:
       (1) Federal land.--The term ``Federal land'' means any 
     Federal land under the administrative jurisdiction of the 
     Bureau of Land Management or the Forest Service.
       (2) Fund.--The term ``Fund'' means the Renewable Energy 
     Mitigation and Fish and Wildlife Fund established by section 
     3(b).
       (3) Pilot program.--The term ``pilot program'' means the 
     wind and solar leasing pilot program established under 
     subsection (b).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (5) State.--The term ``State'' means the State within the 
     boundaries of which income is derived under a lease issued 
     under this section.
       (b) Wind and Solar Leasing Pilot Program.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall establish a wind 
     and solar leasing pilot program for Federal land.
       (2) Selection of sites.--
       (A) In general.--Not later than 90 days after the date on 
     which the pilot program is established, the Secretary shall 
     select not fewer than 2 sites that are appropriate for the 
     development of a solar energy project, and not fewer than 2 
     sites that are appropriate for the development of a wind 
     energy project, on Federal land as part of the pilot program.
       (B) Site selection.--In carrying out subparagraph (A), the 
     Secretary shall seek to select sites on Federal land--
       (i) for which there is likely to be a high level of 
     industry interest; and
       (ii) that has comparatively low value for other resources.
       (C) Exclusions.--For purposes of this Act only, Federal 
     land suitable for wind and solar development does not 
     include--
       (i) any unit of the National Wildlife Refuge System;
       (ii) any component of the National Wild and Scenic Rivers 
     System;
       (iii) any part of the National Landscape Conservation 
     System;
       (iv) any designated wilderness area, wilderness study area, 
     or other area managed for wilderness characteristics;
       (v) any inventoried roadless area within the National 
     Forest System;
       (vi) any National Historic Landmark;
       (vii) any National Historic District or an Archaeological 
     District eligible for or listed in the National Register of 
     Historic Places; or
       (viii) other sensitive land, as determined by the 
     Secretary.
       (D) Coordination with counties.--In selecting sites under 
     the pilot program, the Secretary shall--
       (i) coordinate site selection activities with the county 
     and State land management and wildlife agencies in whose 
     jurisdiction the Federal land is located; and
       (ii) take into consideration local land use planning and 
     zoning requirements and recommendations.
       (3) Consultation.--In establishing the pilot program and 
     the wind or solar leasing programs under subsection (c), the 
     Secretary shall consult with--
       (A) appropriate Federal agencies, including the Department 
     of Defense;
       (B) affected States and counties;
       (C) Indian tribes;
       (D) representatives of the wind and solar industries;
       (E) representatives of the environmental, conservation, and 
     fish and wildlife conservation communities;
       (F) representatives of the motorized and nonmotorized 
     outdoor recreation communities;
       (G) representatives of the ranching and agricultural 
     communities; and
       (H) the public.
       (4) Wind and solar lease sales.--
       (A) In general.--Except as provided in subparagraph 
     (C)(ii), not later than 180 days after the date on which 
     sites are selected under paragraph (2), the Secretary shall 
     offer each site for competitive leasing to qualified bidders 
     under such terms and conditions as are required by the 
     Secretary.
       (B) Bidding systems.--In offering the sites for lease, the 
     Secretary--
       (i) may vary the bidding systems to be used at each lease 
     sale; but
       (ii) shall limit bidding to 1 round in any lease sale.
       (C) Lease terms.--
       (i) In general.--As part of the pilot program, the 
     Secretary may vary the length of the lease terms and 
     establish such other lease terms and conditions as the 
     Secretary considers appropriate.
       (ii) Data collection.--As part of the pilot program, the 
     Secretary shall--

       (I) offer on a noncompetitive basis on at least 1 site a 
     short-term lease for data collection; and
       (II) on the expiration of the short-term lease, offer on a 
     competitive basis a long-term lease, giving credit toward the 
     bonus bid to the holder of the short-term lease for any 
     qualified expenditures to collect data to develop the site 
     during the short-term lease.

       (D) Qualifications.--Prior to any lease sale, the Secretary 
     shall establish qualifications for bidders that ensures 
     bidders--
       (i) are able to expeditiously develop a wind or solar 
     energy project on the site for lease; and
       (ii) possess--

       (I) financial resources necessary to complete a project;
       (II) knowledge of the applicable technology; and
       (III) such other qualifications as determined appropriate 
     by the Secretary.

       (5) Compliance with laws.--In offering for lease the 
     selected sites under (4), the Secretary shall comply with all 
     applicable environmental and other laws.
       (6) Report.--The Secretary shall--
       (A) compile a report of the results of each lease sale 
     under the pilot program, including--
       (i) the level of competitive interest;
       (ii) a summary of bids and revenues received; and
       (iii) any other factors that may have impacted the lease 
     sale process; and
       (B) not later than 90 days after the final lease sale, 
     submit to the Committee on Energy and Natural Resources of 
     the Senate and the Committee on Natural Resources of the 
     House of Representatives the report described in subparagraph 
     (A).
       (c) Leasing Program for Wind and Solar Energy.--
       (1) Determinations.--
       (A) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall determine whether 
     to establish leasing programs under this section for wind and 
     solar energy.
       (B) Requirements.--Not later than 180 days after the date 
     on which any determination under subparagraph (A) is made, 
     the Secretary shall establish a leasing program if the 
     Secretary determines that the program--
       (i) is in the public interest; and
       (ii) provides an effective means of developing wind or 
     solar energy on Federal land.
       (C) Report.--If the Secretary determines that a leasing 
     program should not be established, not later than 60 days 
     after the date of the determination, the Secretary shall 
     submit to the Committee on Energy and Natural Resources of 
     the Senate and the Committee on Natural Resources of the 
     House of Representatives a report describing the reasons and 
     findings for that determination.
       (2) Leases for certain federal land.--
       (A) In general.--If the Secretary makes the determination 
     to establish a leasing program under this section, except as 
     provided in subparagraph (B) and pursuant to the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) 
     and the National Forest Management Act of 1976 (16 U.S.C. 
     1600 et seq.), the Secretary may develop policy and 
     regulations for, and issue leases on, Federal land under the 
     administrative jurisdiction of the Bureau of Land Management 
     and the Forest Service.
       (B) Exception.--The Secretary may not issue any lease on 
     National Forest System land under subparagraph (A) over the 
     objection of the Secretary of Agriculture.
       (3) Consultation and considerations.--In making the 
     determinations required under this subsection, the Secretary 
     shall--
       (A) consult with--
       (i) appropriate Federal agencies, including the Department 
     of Defense;
       (ii) affected States and counties;
       (iii) Indian tribes;
       (iv) representatives of the wind and solar industry;
       (v) representatives of the environmental, conservation, and 
     fish and wildlife conservation communities;
       (vi) representatives of the motorized and nonmotorized 
     outdoor recreation communities;
       (vii) representatives of the ranching and agricultural 
     communities; and
       (viii) the public; and
       (B) consider the results of the report provided under 
     subsection (b)(6) and the results of the pilot program.
       (4) Requirements.--If the Secretary determines under this 
     subsection that a leasing program should be established, the 
     program shall be carried out in accordance with subsections 
     (d) through (i).
       (d) Competitive Leases.--
       (1) In general.--Except as provided in paragraph (2), 
     leases for wind or solar energy development under this 
     section shall be issued on a competitive basis with a single 
     round of bidding in any lease sale.
       (2) Exceptions.--Paragraph (1) shall not apply to Federal 
     land if the Secretary determines that--
       (A) there is no competitive interest for the Federal land;
       (B) the public interest would not be served by the 
     competitive issuance of a lease;
       (C) the lease is for the placement and operation of a 
     meteorological or data collection facility or for the 
     development or demonstration of a new wind or solar 
     technology and has a term of not more than 5 years;
       (D) meteorological testing tower or other data collection 
     device has been installed under an approved easement, 
     special-use permit, or right-of-way issued before the date of 
     enactment of this Act; or
       (E) the Federal land is eligible to be granted a 
     noncompetitive lease under subsection (e)(3).
       (e) Transition to Leasing.--
       (1) In general.--The Secretary shall continue to accept 
     applications for rights-of-way, review the applications, and 
     provide for the issuance of rights-of-way for the development 
     of wind or solar energy on Federal land in accordance with 
     each requirement described in title V of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1761 et seq.) 
     during the pilot program and until the

[[Page S5857]]

     Secretary determines to establish wind and solar leasing 
     programs under subsection (c).
       (2) Administration.--If the Secretary determines under 
     subsection (c) that a leasing program should be established, 
     the Secretary shall provide for a reasonable transition from 
     the use of rights-of-way to leases, taking into account 
     paragraphs (3) and (4) and the status of the project, 
     including whether--
       (A) rights-of-way for testing or construction have been 
     granted;
       (B) a plan of development has been submitted; or
       (C) a draft environmental impact statement has been 
     published.
       (3) Existing rights-of-way.--
       (A) In general.--Effective beginning on the date on which 
     the wind and solar leasing programs are established, the 
     Secretary shall not renew an existing right-of-way 
     authorization for wind and solar energy development at the 
     end of the term of the authorization.
       (B) Lease.--
       (i) In general.--Subject to clause (ii), at the end of the 
     term of the right-of-way authorization for the wind or solar 
     energy project, the Secretary may grant, without a 
     competitive process, a lease to the holder of the right-of-
     way for the same Federal land as was authorized under the 
     right-of-way authorization.
       (ii) Terms and conditions.--Any lease described in clause 
     (i) shall be subject to the terms and conditions generally 
     applicable to other lease sales for similar projects at the 
     time the lease is issued.
       (4) Pending rights-of-way.--Effective beginning on the date 
     on which the wind and solar leasing programs are established, 
     the Secretary may provide any applicant that has filed a plan 
     of development for a right-of-way for a wind or solar energy 
     project with an option to acquire a noncompetitive lease, 
     under such terms and conditions as are required by this 
     section and the Secretary, for the same Federal land included 
     in the plan of development, if--
       (A) the plan of development has been determined by the 
     Secretary to be adequate for the initiation of environmental 
     review; and
       (B) granting the lease is consistent with all applicable 
     land use planning, environmental, and other laws.
       (f) Requirements.--If the Secretary establishes a leasing 
     program under subsection (c), the Secretary shall ensure that 
     any activity under the wind and solar leasing program is 
     carried out in a manner that--
       (1) is consistent with all applicable land use planning, 
     environmental, and other laws; and
       (2) provides for--
       (A) safety;
       (B) protection of the environment;
       (C) prevention of waste;
       (D) diligent development of the resource, with specific 
     milestones determined by the Secretary;
       (E) coordination with applicable Federal agencies;
       (F) use of best management practices, including planning 
     and practices for mitigation of impacts;
       (G) public notice and comment on any proposal submitted for 
     a lease under this section;
       (H) oversight, inspection, research, monitoring, and 
     enforcement relating to a lease under this section;
       (I) protection of fish and wildlife habitat; and
       (J) efficient use of water resources.
       (g) Lease Duration, Suspension, and Cancellation.--
       (1) In general.--If the Secretary establishes a leasing 
     program under subsection (c), subject to paragraph (2), the 
     Secretary shall establish terms and conditions for the 
     duration, issuance, transfer, renewal, suspension, and 
     cancellation of a lease under this section.
       (2) Minimum term.--A wind or solar project with a total 
     capacity of 100 megawatts or more shall be leased for not 
     less than 30 years under this section.
       (h) Security.--If the Secretary establishes a leasing 
     program under subsection (c), the Secretary shall require the 
     holder of a lease issued under this section--
       (1) to furnish a reclamation bond or other form of security 
     determined to be appropriate by the Secretary;
       (2) on completion of the activities authorized by the 
     lease--
       (A) to restore the Federal land that is subject to the 
     lease to the condition in which the Federal land existed 
     before the lease was granted; or
       (B) to conduct mitigation activities (or payment of funds 
     to be transferred to the Fund in lieu of the activities) if 
     the Secretary determines that restoration of the Federal land 
     to the condition described in subparagraph (A) is 
     impracticable; and
       (3) to comply with such other requirements as the Secretary 
     considers necessary to protect the interests of the public 
     and the United States.
       (i) Best Management Practices.--The Secretary shall--
       (1) establish best management practices to ensure the 
     sound, efficient, and environmentally responsible development 
     of wind and solar resources on the Federal land in a manner 
     that will minimize consumptive water use, and avoid, 
     minimize, and mitigate actual and anticipated impacts to fish 
     and wildlife habitat and ecosystem function, resulting from 
     development under a lease issued under this section; and
       (2) include--
       (A) provisions in the lease requiring renewable energy 
     operators to comply with the practices established under 
     paragraph (1); and
       (B) such other provisions as the Secretary considers 
     appropriate.
       (j) Payments.--
       (1) In general.--The Secretary shall establish royalties, 
     fees, rentals, bonuses, or other payments to ensure a fair 
     return to the United States, States, and counties for any 
     right-of-way or lease issued for a wind or solar project on 
     Federal land.
       (2) Collection of payments.--
       (A) In general.--Prior to the collection of royalties under 
     paragraph (4), the Secretary shall collect payments for wind 
     and solar projects in accordance with section 504(g) of the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1764(g)).
       (B) Exception.--Wind or solar energy leases issued under 
     this section shall not be subject to the rental fee exemption 
     for rights-of-way under section 504(g) of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1764(g)).
       (3) Bonus bids.--The Secretary may grant credit toward any 
     bonus bid for a qualified expenditure by the holder of a 
     lease described in subsection (d)(2)(C) in any competitive 
     lease sale held for a long-term lease covering the same 
     Federal land covered by the lease described in subsection 
     (d)(2)(C).
       (4) Royalties.--Except as provided in paragraph (6), the 
     Secretary shall develop and enforce a royalty on electricity 
     produced by wind and solar projects on Federal land that--
       (A) encourages production of wind or solar energy;
       (B) encourages the maximum energy generation using the 
     least quantity of Federal land and other natural resources, 
     including water;
       (C) ensures a fair return (comparable to the return that 
     would be obtained on State and private land) to the public, 
     States, and counties eligible to receive a portion of the 
     revenues under section 3(a); and
       (D) encourages the use of energy storage technologies that 
     increase the capacity factor of wind or solar energy 
     generation facilities.
       (5) Rulemaking.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall complete a 
     rulemaking for wind energy and solar energy royalty rates.
       (6) Royalty relief.--Subject to paragraph (2)(B), to 
     promote the greatest generation of renewable energy, the 
     Secretary may, until fiscal year 2040, provide that no 
     royalty or a reduced royalty is required for a period not to 
     exceed 5 years beginning on the date on which wind or solar 
     generation is initially commenced on the Federal land.
       (k) Segregation From Appropriation Under Mining and Federal 
     Land Laws.--
       (1) In general.--On selection of Federal land for leasing 
     under this section, the Secretary may temporarily segregate 
     the selected Federal land from appropriation under the mining 
     and public land laws.
       (2) Administration.--Segregation of Federal land under this 
     subsection--
       (A) may only be made for a period of not to exceed 10 
     years; and
       (B) shall be subject to valid existing rights as of the 
     date of the segregation.

     SEC. 3. DISPOSITION OF REVENUE.

       (a) Distribution of Proceeds and Payments.--
       (1) In general.--Effective beginning on the date of 
     enactment of this Act, all amounts collected by the Secretary 
     as royalties, fees, rentals, bonuses, or other payments for 
     wind and solar projects on Federal land, including any fees 
     associated with wind and solar energy rights-of-way, shall be 
     distributed as follows:
       (A) 25 percent shall be paid by the Secretary of the 
     Treasury to the State within the boundaries of which the 
     income is derived.
       (B) 25 percent shall be paid by the Secretary of the 
     Treasury to the 1 or more counties within the boundaries of 
     which the income is derived.
       (C) 15 percent shall--
       (i) for the period beginning on the date of enactment of 
     this Act and ending on the date specified in clause (ii), be 
     deposited in the Treasury of the United States to help 
     facilitate the processing of renewable energy permits by the 
     Bureau of Land Management, subject to paragraph (2)(A)(i), 
     including the transfer of the funds by the Bureau of Land 
     Management to other Federal and State agencies to facilitate 
     the processing of renewable energy permits on Federal land; 
     and
       (ii) beginning on the date that is 10 years after the date 
     of enactment of this Act, be deposited in the Fund.
       (D) 35 percent shall be deposited in the Fund.
       (2) Limitations.--
       (A) Renewable energy permits.--For purposes of clause (i) 
     of paragraph (1)(C):
       (i) Not more than $50,000,000 shall be deposited in the 
     Treasury at any 1 time under that clause.
       (ii) The following shall be deposited in the Fund:

       (I) Any amounts collected under that subclause that are not 
     obligated by the date specified in paragraph (1)(C)(ii).
       (II) Any amounts that exceed the $50,000,000 deposit limit 
     under clause (i).
       (III) Any amounts provided by the lease holder pursuant to 
     section 2(h)(2)(B).

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       (B) Fund.--Any amounts deposited in the Fund under 
     subparagraph (A)(ii) or paragraph (1)(C)(ii) shall be in 
     addition to amounts deposited in the Fund under paragraph 
     (1)(D).
       (3) Availability of funds.--Funds under this subsection 
     shall be available for expenditure without further 
     appropriation and without fiscal year limitation.
       (b) Renewable Energy Mitigation and Fish and Wildlife 
     Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Renewable 
     Energy Mitigation and Fish and Wildlife Fund'', to be 
     administered by the Secretary, for use in the State.
       (2) Use of funds.--Amounts in the Fund shall be available 
     to the Secretary, who may make the amounts available to the 
     State, Federal agencies, or other interested parties for the 
     purposes of--
       (A) mitigating impacts of renewable energy on Federal land, 
     including--
       (i) protecting fish and wildlife corridors and other 
     sensitive land; and
       (ii) restoring fish and wildlife habitat; and
       (iii) securing recreational access to Federal land through 
     easement, right of way, or fee title acquisition from willing 
     sellers for the purpose of providing enhanced public access 
     to existing Federal land that is inaccessible or 
     significantly restricted; and
       (B) carrying out activities authorized under the Land and 
     Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et 
     seq.) in the State.
       (3) Availability of amounts.--Amounts in the Fund shall be 
     available for expenditure, in accordance with this 
     subsection, without further appropriation, and without fiscal 
     year limitation.
       (4) Investment of fund.--
       (A) In general.--Any amounts deposited in the Fund shall 
     earn interest in an amount determined by the Secretary of the 
     Treasury on the basis of the current average market yield on 
     outstanding marketable obligations of the United States of 
     comparable maturities.
       (B) Use.--Any interest earned under subparagraph (A) may be 
     expended in accordance with this subsection.

     SEC. 4. BUDGETARY EFFECTS.

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

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