[Congressional Record Volume 156, Number 104 (Wednesday, July 14, 2010)]
[Senate]
[Pages S5855-S5858]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      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).

[[Page S5858]]

       (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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