House Report 116-677 - PUBLIC LAND RENEWABLE ENERGY DEVELOPMENT ACT OF 2019

[House Report 116-677]
[From the U.S. Government Publishing Office]

116th Congress } { Rept. 116-677
HOUSE OF REPRESENTATIVES
2d Session } { Part 1

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PUBLIC LAND RENEWABLE ENERGY DEVELOPMENT ACT OF 2019

_______

December 18, 2020.--Ordered to be printed

_______

Mr. Grijalva, from the Committee on Natural Resources, submitted the
following

R E P O R T

[To accompany H.R. 3794]

[Including cost estimate of the Congressional Budget Office]

The Committee on Natural Resources, to whom was referred
the bill (H.R. 3794) to promote the development of renewable
energy on public lands, and for other purposes, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Public Land Renewable Energy
Development Act of 2019''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Land use planning; supplements to programmatic environmental
impact statements.
Sec. 5. Environmental review on covered land.
Sec. 6. Program to improve renewable energy project permit
coordination.
Sec. 7. Increasing economic certainty.
Sec. 8. Limited grandfathering.
Sec. 9. Renewable energy goal.
Sec. 10. Disposition of revenues.
Sec. 11. Promoting and enhancing development of geothermal energy.
Sec. 12. Facilitation of coproduction of geothermal energy on oil and
gas leases.
Sec. 13. Noncompetitive leasing of adjoining areas for development of
geothermal resources.
Sec. 14. Savings clause.

SEC. 3. DEFINITIONS.

In this Act:
(1) Covered land.--The term ``covered land'' means land that
is--
(A) public lands administered by the Secretary; and
(B) not excluded from the development of geothermal,
solar, or wind energy under--
(i) a land use plan established under the
Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701 et seq.); or
(ii) other Federal law.
(2) Exclusion area.--The term ``exclusion area'' means
covered land that is identified by the Bureau of Land
Management as not suitable for development of renewable energy
projects.
(3) Federal land.--The term ``Federal land'' means--
(A) land of the National Forest System (as defined in
section 11(a) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1609(a))); or
(B) public lands.
(4) Fund.--The term ``Fund'' means the Renewable Energy
Resource Conservation Fund established by section 10(c)(1).
(5) Priority area.--The term ``priority area'' means covered
land identified by the land use planning process of the Bureau
of Land Management as being a preferred location for a
renewable energy project, including a designated leasing area
(as defined in section 2801.5(b) of title 43, Code of Federal
Regulations (or a successor regulation)) that is identified
under the rule of the Bureau of Land Management entitled
``Competitive Processes, Terms, and Conditions for Leasing
Public Lands for Solar and Wind Energy Development and
Technical Changes and Corrections'' (81 Fed. Reg. 92122
(December 19, 2016)) (or a successor regulation).
(6) Public lands.--The term ``public lands'' has the meaning
given that term in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702).
(7) Renewable energy project.--The term ``renewable energy
project'' means a project carried out on covered land that uses
wind, solar, or geothermal energy to generate energy.
(8) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(9) Variance area.--The term ``variance area'' means covered
land that is--
(A) not an exclusion area;
(B) not a priority area; and
(C) identified by the Secretary as potentially
available for renewable energy development and could be
approved without a plan amendment, consistent with the
principles of multiple use (as that term is defined in
the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq.)).

SEC. 4. LAND USE PLANNING; SUPPLEMENTS TO PROGRAMMATIC ENVIRONMENTAL
IMPACT STATEMENTS.

(a) Priority Areas.--
(1) In general.--The Secretary, in consultation with the
Secretary of Energy, shall establish priority areas on covered
land for geothermal, solar, and wind energy projects. Projects
located in those priority areas shall be given the highest
priority for review, and shall be offered the opportunity to
participate in any regional mitigation plan developed for the
relevant priority areas.
(2) Deadline.--
(A) Geothermal energy.--For geothermal energy, the
Secretary shall establish priority areas as soon as
practicable, but not later than 5 years, after the date
of the enactment of this Act.
(B) Solar energy.--For solar energy, solar Designated
Leasing Areas, including the solar energy zones
established by the 2012 western solar plan of the
Bureau of Land Management and any subsequent land use
plan amendments, shall be considered to be priority
areas for solar energy projects. The Secretary shall
establish additional solar priority areas as soon as
practicable, but not later than 3 years, after the date
of the enactment of this Act.
(C) Wind energy.--For wind energy, the Secretary
shall establish additional wind priority areas as soon
as practicable, but not later than 3 years, after the
date of the enactment of this Act.
(b) Variance Areas.--To the maximum extent practicable, variance
areas shall be considered for renewable energy project development,
consistent with the principles of multiple use (as defined in the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et
seq.)).
(c) Review and Modification.--Not less than once every 5 years, the
Secretary shall--
(1) review the adequacy of land allocations for geothermal,
solar, and wind energy priority and variance areas for the
purpose of encouraging new renewable energy development
opportunities; and
(2) based on the review carried out under paragraph (1), add,
modify, or eliminate priority, variance, and exclusion areas.
(d) Compliance With the National Environmental Policy Act.--For
purposes of this section, compliance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall be accomplished--
(1) for geothermal energy, by supplementing the October 2008
final programmatic environmental impact statement for
geothermal leasing in the Western United States and
incorporating any additional regional analyses that have been
completed by Federal agencies since the programmatic
environmental impact statement was finalized;
(2) for solar energy, by supplementing the July 2012 final
programmatic environmental impact statement for solar energy
development and incorporating any additional regional analyses
that have been completed by Federal agencies since the
programmatic environmental impact statement was finalized; and
(3) for wind energy, by supplementing the July 2005 final
programmatic environmental impact statement for wind energy
development and incorporating any additional regional analyses
that have been completed by Federal agencies since the
programmatic environmental impact statement was finalized.
(e) No Effect on Processing Applications.--Any requirements to
prepare a supplement to a programmatic environmental impact statement
under this section shall not result in any delay in processing a
pending application for a renewable energy project.
(f) Coordination.--In developing a supplement required by this
section, the Secretary shall coordinate, on an ongoing basis, with
appropriate State, Tribal, and local governments, transmission
infrastructure owners and operators, developers, and other appropriate
entities to ensure that priority areas identified by the Secretary
are--
(1) economically viable (including having access to existing
and/or planned transmission lines);
(2) likely to avoid or minimize impacts to habitat for
animals and plants, recreation, cultural resources, and other
uses of covered land; and
(3) consistent with section 202 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1712), including
subsection (c)(9) of that section (43 U.S.C. 1712(c)(9)).

SEC. 5. ENVIRONMENTAL REVIEW ON COVERED LAND.

(a) In General.--If the Secretary determines that a proposed
renewable energy project has been sufficiently analyzed by a
programmatic environmental impact statement conducted under section
4(d), the Secretary shall not require any additional review under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). The
Secretary shall publish any such project determinations on a publicly
available website.
(b) Additional Environmental Review.--If the Secretary determines
that additional environmental review under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) is necessary for a proposed
renewable energy project, the Secretary shall rely on the analysis in
the programmatic environmental impact statement conducted under section
4(d), to the maximum extent practicable when analyzing the potential
impacts of the project.
(c) Relationship to Other Law.--Nothing in this section modifies or
supersedes any requirement under applicable law.

SEC. 6. PROGRAM TO IMPROVE RENEWABLE ENERGY PROJECT PERMIT
COORDINATION.

(a) Establishment.--The Secretary shall establish a national
Renewable Energy Coordination Office and State, district, or field
offices with responsibility to establish and implement a program to
improve Federal permit coordination with respect to renewable energy
projects on covered land and other activities deemed necessary by the
Secretary. In carrying out the program, the Secretary may temporarily
assign qualified staff to Renewable Energy Coordination Offices to
expedite the permitting of renewable energy projects.
(b) Memorandum of Understanding.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary shall enter into a
memorandum of understanding for purposes of this section,
including to specifically expedite the environmental analysis
of applications for projects proposed in a variance area or a
priority area, with the Secretary of Defense and the Secretary
of Agriculture.
(2) State and tribal participation.--The Secretary may
request the Governor of any interested State or any Tribal
leader of any interested Indian Tribe (as defined in section 4
of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 5304)) to be a signatory to the memorandum of
understanding under paragraph (1).
(c) Designation of Qualified Staff.--
(1) In general.--Not later than 30 days after the date on
which the memorandum of understanding under subsection (b) is
executed, all Federal signatories, as appropriate, shall
identify for each of the Bureau of Land Management Renewable
Energy Coordination Offices one or more employees who have
expertise in the regulatory issues relating to the office in
which the employee is employed, including, as applicable,
particular expertise in--
(A) consultation regarding, and preparation of,
biological opinions under section 7 of the Endangered
Species Act of 1973 (16 U.S.C. 1536);
(B) permits under section 404 of the Federal Water
Pollution Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air Act (42
U.S.C. 7401 et seq.);
(D) the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq.);
(E) the Migratory Bird Treaty Act (16 U.S.C. 703 et
seq.);
(F) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.);
(G) implementation of the requirements of section
306108 of title 54, United States Code (formerly known
as section 106 of the National Historic Preservation
Act);
(H) planning under section 14 of the National Forest
Management Act of 1976 (16 U.S.C. 472a);
(I) the Bald and Golden Eagle Protection Act (16
U.S.C. 668-668d); and
(J) section 100101(a), chapter 1003, and sections
100751(a), 100752, 100753 and 102101 of title 54 ,
United States Code (previously known as the ``National
Park Service Organic Act'').
(2) Duties.--Each employee assigned under paragraph (1)
shall--
(A) be responsible for addressing all issues relating
to the jurisdiction of the home office or agency of the
employee; and
(B) participate as part of the team of personnel
working on proposed energy projects, planning,
monitoring, inspection, enforcement, and environmental
analyses.
(d) Additional Personnel.--The Secretary may assign such additional
personnel for the Bureau of Land Management Renewable Energy
Coordination Offices as are necessary to ensure the effective
implementation of any programs administered by the offices in
accordance with the multiple use mandate of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701 et seq.).
(e) Clarification of Existing Authority.--Under section 307 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1737), the
Bureau of Land Management may--
(1) accept donations for the purposes of public lands
management; and
(2) accept donations from renewable energy companies working
on public lands to help cover the costs of environmental
reviews.
(f) Report to Congress.--
(1) In general.--Not later than February 1 of the first
fiscal year beginning after the date of the enactment of this
Act, and each February 1 thereafter, the Secretary shall submit
to the Committee on Energy and Natural Resources of the Senate
and the Committee on Natural Resources of the House of
Representatives a report describing the progress made under the
program established under subsection (a) during the preceding
year.
(2) Inclusions.--Each report under this subsection shall
include--
(A) projections for renewable energy production and
capacity installations; and
(B) a description of any problems relating to
leasing, permitting, siting, or production.

SEC. 7. INCREASING ECONOMIC CERTAINTY.

(a) Considerations.--The Secretary is authorized to and shall
consider acreage rental rates, capacity fees, and other recurring
annual fees in total when evaluating existing rates paid for the use of
Federal land by renewable energy projects.
(b) Increases in Base Rental Rates.--Once a base rental rate is
established upon the issuance of a right-of-way authorization,
increases in the base rent shall be limited to the Implicit Price
Deflator-Gross Domestic Product (IPD-GDP) index for the entire term of
the right-of-way authorization.
(c) Reductions in Base Rental Rates.--The Secretary is authorized to
reduce acreage rental rates and capacity fees, or both, for existing
and new wind and solar authorizations if the Secretary determines--
(1) that the existing rates--
(A) exceed fair market value;
(B) impose economic hardships;
(C) limit commercial interest in a competitive lease
sale or right-of-way grant; or
(D) are not competitively priced compared to other
available land; or
(2) that a reduced rental rate or capacity fee is necessary
to promote the greatest use of wind and solar energy resources,
especially those resources inside priority areas. Rental rates
and capacity fees for projects that are within the boundaries
of a Designated Leasing Area but not formally recognized as
being in such an area shall be equivalent to rents and fees for
new leases inside of a Designated Leasing Area.

SEC. 8. LIMITED GRANDFATHERING.

(a) Definition of Project.--In this section, the term ``project''
means a system described in section 2801.9(a)(4) of title 43, Code of
Federal Regulations (as in effect on the date of enactment of this
Act).
(b) Requirement To Pay Rents and Fees.--Unless otherwise agreed to by
the owner of a project, the owner of a project that applied for a
right-of-way under section 501 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1761) on or before December 19, 2016,
shall be obligated to pay with respect to the right-of-way all rents
and fees in effect before the effective date of the rule of the Bureau
of Land Management entitled ``Competitive Processes, Terms, and
Conditions for Leasing Public Lands for Solar and Wind Energy
Development and Technical Changes and Corrections'' (81 Fed. Reg. 92122
(December 19, 2016)).

SEC. 9. RENEWABLE ENERGY GOAL.

The Secretary and the Secretary of Agriculture shall seek to issue
permits that, in total, authorize production of not less than 25
gigawatts of electricity from wind, solar, and geothermal energy
projects by not later than 2025, through management of public lands and
administration of Federal laws.

SEC. 10. DISPOSITION OF REVENUES.

(a) Disposition of Revenues.--Beginning on January 1, 2020, of the
amounts collected as bonus bids, rentals, fees, or other payments under
a right-of-way, permit, lease, or other authorization (other than under
section 504(g) of the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1764(g))) for the development of wind or solar energy on
covered land or National Forest System land, the following shall be
made available without further appropriation or fiscal year limitation
as follows:
(1) Twenty-five percent shall be paid by the Secretary of the
Treasury to the State within the boundaries of which the
revenue is derived.
(2) Twenty-five percent shall be paid by the Secretary of the
Treasury to the one or more counties within the boundaries of
which the revenue is derived, to be allocated among the
counties based on the percentage of land from which the revenue
is derived.
(3) Fifteen percent shall be deposited in the Treasury and be
made available to the Secretary to carry out the program
established under this Act, including the transfer of the funds
by the Bureau of Land Management to other Federal agencies and
State agencies to facilitate the processing of renewable energy
permits on Federal land, with priority given to using the
amounts, to the maximum extent practicable without detrimental
impacts to emerging markets, to expediting the issuance of
permits required for the development of renewable energy
projects in the States from which the revenues are derived.
(4) Twenty-five percent shall be deposited in the Renewable
Energy Resource Conservation Fund established by subsection
(c).
(5) The remainder shall be deposited into the general fund of
the Treasury for purposes of reducing the annual Federal budget
deficit.
(b) Payments to States and Counties.--
(1) In general.--Amounts paid to States and counties under
subsection (a) shall be used consistent with section 35 of the
Mineral Leasing Act (30 U.S.C. 191).
(2) Payments in lieu of taxes.--A payment to a county under
paragraph (1) shall be in addition to a payment in lieu of
taxes received by the county under chapter 69 of title 31,
United States Code.
(c) Renewable Energy Resource Conservation Fund.--
(1) In general.--There is established in the Treasury a fund
to be known as the Renewable Energy Resource Conservation Fund,
which shall be administered by the Secretary, in consultation
with the Secretary of Agriculture.
(2) Use of funds.--The Secretary may make amounts in the Fund
available to Federal, State, local, and Tribal agencies to be
distributed in regions in which renewable energy projects are
located on Federal land, for the purposes of--
(A) restoring and protecting--
(i) fish and wildlife habitat for affected
species;
(ii) fish and wildlife corridors for affected
species; and
(iii) wetlands, streams, rivers, and other
natural water bodies in areas affected by wind,
geothermal, or solar energy development; and
(B) preserving and improving recreational access to
Federal land and water in an affected region through an
easement, right-of-way, or other instrument from
willing landowners for the purpose of enhancing public
access to existing Federal land and water that is
inaccessible or restricted.
(3) Restriction on use of funds.--No funds made available
under this subsection may be used for the purchase of real
property unless in fulfillment of paragraph (2)(B).
(4) Partnerships.--The Secretary may enter into cooperative
agreements with State and Tribal agencies, nonprofit
organizations, and other appropriate entities to carry out the
activities described in subparagraphs (A) and (B) of paragraph
(2).
(5) 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.
(6) Report to congress.--At the end of each fiscal year, the
Secretary shall report to the Committee on Natural Resources of
the House of Representatives and the Committee on Energy and
Natural Resources of the Senate--
(A) the amount collected as described in subsection
(a), by source, during that fiscal year;
(B) the amount and purpose of payments during that
fiscal year to each Federal, State, local, and Tribal
agency under paragraph (2); and
(C) the amount remaining in the Fund at the end of
the fiscal year.
(7) Intent of congress.--It is the intent of Congress that
the revenues deposited and used in the Fund shall supplement
(and not supplant) annual appropriations for activities
described in subparagraphs (A) and (B) of paragraph (2).

SEC. 11. PROMOTING AND ENHANCING DEVELOPMENT OF GEOTHERMAL ENERGY.

(a) In General.--Section 234(a) of the Energy Policy Act of 2005 (42
U.S.C. 15873(a)) is amended by striking ``in the first 5 fiscal years
beginning after the date of enactment of this Act'' and inserting
``through fiscal year 2022''.
(b) Authorization.--Section 234(b) of the Energy Policy Act of 2005
(42 U.S.C. 15873(b)) is amended--
(1) by striking ``Amounts'' and inserting the following:
``(1) In general.--Amounts''; and
(2) by adding at the end the following:
``(2) Authorization.--Effective for fiscal year 2019 and each
fiscal year thereafter, amounts deposited under subsection (a)
shall be available to the Secretary of the Interior for
expenditure, without further appropriation or fiscal year
limitation, to implement the Geothermal Steam Act of 1970 (30
U.S.C. 1001 et seq.) and this Act.''.

SEC. 12. FACILITATION OF COPRODUCTION OF GEOTHERMAL ENERGY ON OIL AND
GAS LEASES.

Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 1003(b))
is amended by adding at the end the following:
``(4) Land subject to oil and gas lease.--Land under an oil
and gas lease issued pursuant to the Mineral Leasing Act (30
U.S.C. 181 et seq.) or the Mineral Leasing Act for Acquired
Lands (30 U.S.C. 351 et seq.) that is subject to an approved
application for permit to drill and from which oil and gas
production is occurring may be available for noncompetitive
leasing under subsection (c) by the holder of the oil and gas
lease--
``(A) on a determination that geothermal energy will
be produced from a well producing or capable of
producing oil and gas; and
``(B) in order to provide for the coproduction of
geothermal energy with oil and gas.''.

SEC. 13. NONCOMPETITIVE LEASING OF ADJOINING AREAS FOR DEVELOPMENT OF
GEOTHERMAL RESOURCES.

Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 1003(b))
is further amended by adding at the end the following:
``(5) Adjoining land.--
``(A) Definitions.--In this paragraph:
``(i) Fair market value per acre.--The term
`fair market value per acre' means a dollar
amount per acre that--
``(I) except as provided in this
clause, shall be equal to the market
value per acre (taking into account the
determination under subparagraph
(B)(iii) regarding a valid discovery on
the adjoining land) as determined by
the Secretary under regulations issued
under this paragraph;
``(II) shall be determined by the
Secretary with respect to a lease under
this paragraph, by not later than the
end of the 180-day period beginning on
the date the Secretary receives an
application for the lease; and
``(III) shall be not less than the
greater of--
``(aa) 4 times the median
amount paid per acre for all
land leased under this Act
during the preceding year; or
``(bb) $50.
``(ii) Industry standards.--The term
`industry standards' means the standards by
which a qualified geothermal professional
assesses whether downhole or flowing
temperature measurements with indications of
permeability are sufficient to produce energy
from geothermal resources, as determined
through flow or injection testing or
measurement of lost circulation while drilling.
``(iii) Qualified federal land.--The term
`qualified Federal land' means land that is
otherwise available for leasing under this Act.
``(iv) Qualified geothermal professional.--
The term `qualified geothermal professional'
means an individual who is an engineer or
geoscientist in good professional standing with
at least 5 years of experience in geothermal
exploration, development, or project
assessment.
``(v) Qualified lessee.--The term `qualified
lessee' means a person who may hold a
geothermal lease under this Act (including
applicable regulations).
``(vi) Valid discovery.--The term `valid
discovery' means a discovery of a geothermal
resource by a new or existing slim hole or
production well, that exhibits downhole or
flowing temperature measurements with
indications of permeability that are sufficient
to meet industry standards.
``(B) Authority.--An area of qualified Federal land
that adjoins other land for which a qualified lessee
holds a legal right to develop geothermal resources may
be available for a noncompetitive lease under this
section to the qualified lessee at the fair market
value per acre, if--
``(i) the area of qualified Federal land--
``(I) consists of not less than 1
acre and not more than 640 acres; and
``(II) is not already leased under
this Act or nominated to be leased
under subsection (a);
``(ii) the qualified lessee has not
previously received a noncompetitive lease
under this paragraph in connection with the
valid discovery for which data has been
submitted under clause (iii)(I); and
``(iii) sufficient geological and other
technical data prepared by a qualified
geothermal professional has been submitted by
the qualified lessee to the applicable Federal
land management agency that would lead
individuals who are experienced in the subject
matter to believe that--
``(I) there is a valid discovery of
geothermal resources on the land for
which the qualified lessee holds the
legal right to develop geothermal
resources; and
``(II) that geothermal feature
extends into the adjoining areas.
``(C) Determination of fair market value.--
``(i) In general.--The Secretary shall--
``(I) publish a notice of any request
to lease land under this paragraph;
``(II) determine fair market value
for purposes of this paragraph in
accordance with procedures for making
those determinations that are
established by regulations issued by
the Secretary;
``(III) provide to a qualified lessee
and publish, with an opportunity for
public comment for a period of 30 days,
any proposed determination under this
subparagraph of the fair market value
of an area that the qualified lessee
seeks to lease under this paragraph;
and
``(IV) provide to the qualified
lessee and any adversely affected party
the opportunity to appeal the final
determination of fair market value in
an administrative proceeding before the
applicable Federal land management
agency, in accordance with applicable
law (including regulations).
``(ii) Limitation on nomination.--After
publication of a notice of request to lease
land under this paragraph, the Secretary may
not accept under subsection (a) any nomination
of the land for leasing unless the request has
been denied or withdrawn.
``(iii) Annual rental.--For purposes of
section 5(a)(3), a lease awarded under this
paragraph shall be considered a lease awarded
in a competitive lease sale.
``(D) Regulations.--Not later than 270 days after the
date of the enactment of this paragraph, the Secretary
shall issue regulations to carry out this paragraph.''.

SEC. 14. SAVINGS CLAUSE.

Notwithstanding any other provision of this Act, the Secretary shall
continue to manage public lands under the principles of multiple use
and sustained yield in accordance with title I of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.), including
due consideration of mineral and nonrenewable energy-related projects
and other nonrenewable energy uses, for the purposes of land use
planning, permit processing, and conducting environmental reviews.

Purpose of the Bill

The purpose of H.R. 3794 is to promote the development of
renewable energy on public lands.

Background and Need for Legislation

The urgent need to address climate change demands a rapid
transition away from fossil fuels and toward a clean-energy
economy. Renewable energy resources on public lands and waters
can and must play a leading role in driving this energy
transition.
Thanks to decades of innovation, steeply declining costs,
and smart policies at both the federal and state levels, the
amount of electricity generated by wind and solar in the United
States has increased tremendously. The United States currently
generates approximately 18 percent of its electricity from
renewable energy resources--two times more than a decade
ago.\1\ When President Obama took office, there were no solar
plants on public lands. By the time he left, thirty-six
projects had been approved. Including new wind and geothermal,
the Obama administration approved enough new renewable energy
to power more than five million homes. But despite the strong
growth of renewable energy nationally and millions of acres
still open for development, construction of wind, solar, and
geothermal projects on public lands has stalled in recent
years. At the time of H.R. 3794's consideration by the
Committee, the Trump administration had approved only two new
solar projects, one wind project, and zero new geothermal
plants on public lands. H.R. 3794 makes bipartisan reforms to
promote renewable energy projects on public lands that benefit
local communities while preserving access to recreation
opportunities and protecting wildlife habitat.
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\1\2019 Sustainable Energy in American Factbook. Business Council
for Sustainable Energy and Bloomberg New Energy Finance. https://
www.bcse.org/factbook/#.
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H.R. 3794 addresses concerns about the renewable energy
permitting process by codifying a ``smart from the start''
approach to renewable energy development. Until 2017, the
process for approving wind and solar projects on public lands
generally involved the Bureau of Land Management (BLM)
reviewing right-of-way applications from developers on a first-
come, first-serve basis. This system didn't do enough to ensure
a fair return to taxpayers and proved inefficient for
construction of large-scale infrastructure projects like wind
and solar projects, while allowing speculators to delay review
of more promising projects. To address these problems, the
Obama administration implemented an approach it dubbed ``smart
from the start'' that encouraged development in pre-screened
areas that have fewer conflicts with other activities on public
lands. The value of that approach was demonstrated in 2014,
when BLM held its first successful auction for a pre-screened
region, the Dry Lake Solar Energy Zone in Clark County, Nevada.
The auction brought in $5.8 million in winning bids to the U.S.
Treasury, and three projects inside the zone were reviewed and
approved in less than ten months, less than half the time of a
typical project.\2\
---------------------------------------------------------------------------
\2\``Interior Department Approves First Solar Energy Zone
Projects.'' U.S. Department of the Interior, 1 June 2015. https://
www.doi.gov/pressreleases/interior-department-approves-first-solar-
energy-zone-projects.
---------------------------------------------------------------------------
Under this legislation, the Department of the Interior
(DOI) will continue this ``smart from the start'' approach by
designating and periodically updating priority areas for wind,
solar, and geothermal energy on public lands. These priority
areas minimize both environmental impacts and conflicts with
other uses of public lands such as recreation, conservation,
and preservation of wildlife habitat, while maximizing the
economic potential for developers by, for example, being close
to existing or planned transmission infrastructure. Projects
proposed inside these priority areas will pay lower fees and
receive expedited permitting thanks to advanced preliminary
environmental review under the National Environmental Policy
Act (NEPA). Developers will not be prohibited from proposing
renewable energy projects outside of priority areas, but the
legislation is designed to encourage focused development in the
priority areas. By implementing this ``smart from the start''
approach, the Committee is confident that development of much-
needed renewable energy projects can successfully move forward
while the many other values provided by public lands to the
American people are protected.
The legislation makes several other changes to improve
permitting of projects on public lands, including requiring DOI
to permanently establish a Renewable Energy Coordination Office
that was first established by the Obama administration but
eliminated in early 2017. This office will reduce conflicts
between agencies within the Interior Department by providing a
bird's-eye view over all renewable energy development on public
lands, ensuring that permitting and interagency coordination is
happening in a timely manner, and making sure that the
Department is working toward the goal of permitting a total of
25 GW of wind, solar, and geothermal on public lands by 2025.
The bill also clarifies that DOI has the authority to accept
voluntary payments from clean energy companies to fund
environmental reviews, a common practice for the oil and gas
industry that is not widely used for renewables. These payments
are not to dictate a preferred outcome, but instead help
alleviate DOI resource constraints, provide regulatory
certainty, and allow for timely, comprehensive environmental
reviews. These payments are not a substitute for regular
appropriations from Congress, which has the ultimate
responsibility to ensuring that the Department has the proper
resources for all permitting activities.
A concern heard by the Committee when developing this
legislation was the continued high cost of development. In
January 2017, BLM implemented the Wind and Solar Leasing Rule,
which transitioned wind and solar development in part to a
competitive bidding system and set up a new process for
determining rents and capacity fees. The Committee supports the
continued use of competitive lease sales, rental payments, and
capacity payments to determine fair market value for American
taxpayers, but acknowledges that the industry finds that high
costs are making public lands less competitive with private
lands.\3\ These concerns about cost are reflected in the dearth
of new project proposals submitted to BLM; companies do not
appear to be actively pursuing new projects on public lands. At
the time of the Committee's markup of H.R. 3794 in November
2019, BLM had yet to approve any renewable energy projects that
had been proposed after 2016.
---------------------------------------------------------------------------
\3\Testimony by Abigail Ross Hopper of the Solar Energy Industries
Association. Subcommittee on Energy and Mineral Resources, July 25,
2019. https://naturalresources.house.gov/imo/media/doc/
1.%20Testimony%20-%20Abigail%20Ross%20Hopper%20-
%20EMR%20Leg%20Hrg%2007.25 .19.pdf.
---------------------------------------------------------------------------
The slowdown of renewable energy development on public
lands is an unacceptable trend if we are to seriously address
the climate crisis and transition our nation to a clean-energy
economy. H.R. 3794 gives the Secretary of the Interior more
discretion and flexibility to set fair, predictable rent and
fee schedules for developers while still ensuring that the
Department receives fair value for American taxpayers. Language
is included in the legislation to level the playing field
across industries and provide royalty relief options for
renewable energy that already exist for oil, gas, and coal
production on public lands. The bill also provides limited
grandfathering to renewable energy projects impacted by
unexpected rate increases under the Wind and Solar Leasing
Rule. It was brought to the Committee's attention, for example,
that one wind project's rental payments increased by more than
300 percent as a result of the rule and another expects to see
over $100 million in additional costs. Such significant cost
increases were not factored into the original business plans
and therefore not incorporated into contracts signed with
utility companies. Limited grandfathering allows these projects
to remain economically viable, ensuring that federal taxpayers
and local communities will receive their promised benefits.
Another disparity between fossil fuel and wind and solar
development on public lands is the distribution of revenues.
For oil, gas, coal, and other leasable minerals, states receive
roughly half of all bonus bids, rents, and royalties, creating
local support for, and even dependency on, such development for
budgetary reasons alone. Wind and solar revenues, in contrast,
flow exclusively to the federal government. By diverting some
of these revenues to states and counties, H.R. 3794 promises to
create additional local support for renewable energy projects
while also providing a source of funds that could allow some
states and localities to reduce their dependence on fossil fuel
derived income, potentially further accelerating the transition
to a clean energy economy.
Just like any other use of public lands, renewable energy
projects must be held to high standards for mitigating
environmental impacts and minimizing conflicts with other uses
of public lands. The existing NEPA and land-use planning
processes are designed to address this on a project-by-project
basis, but H.R. 3794 aims for a broader positive impact by
directing 25 percent of wind and solar energy revenues to a
newly established Renewable Energy Resource Conservation Fund,
which will make funds available to federal, state, and tribal
agencies for projects that restore and protect wildlife habitat
and improve recreation access on public lands.
Focusing on the energy of the past and ignoring the impacts
of climate change is not a formula for a healthy or sustainable
future. Instead, it will simply marginalize us internationally
and handicap us economically. H.R. 3794 is designed to strike
the appropriate balance between responsible renewable energy
development and conservation while also benefitting local
communities and federal taxpayers.

Committee Action

H.R. 3794 was introduced on July 17, 2019, by
Representative Paul Gosar (R-AZ). The bill was referred to the
Committee on Natural Resources, and in addition to the
Committee on Agriculture. Within the Natural Resources
Committee, the bill was referred to the Subcommittee on Energy
and Mineral Resources. On July 25, 2019, the Subcommittee held
a hearing on the bill. On November 20, 2019, the Natural
Resources Committee met to consider the bill. The Subcommittee
was discharged by unanimous consent. Representative Mike Levin
(D-CA) offered an amendment designated Levin #033. The
amendment was agreed to by voice vote. No additional amendments
were offered, and the bill, as amended, was adopted and ordered
favorably reported to the House of Representatives by voice
vote.
On July 1, 2020, the House of Representatives passed H.R.
2, the Moving Forward Act, which included a version of the text
of H.R. 3794.\4\
---------------------------------------------------------------------------
\4\H.R. 2, 116th Cong. (as passed by and engrossed in the House,
July 1, 2020).
---------------------------------------------------------------------------

Hearings

For the purposes of section 103(i) of H. Res. 6 of the
116th Congress--the following hearing was used to develop or
consider H.R. 3794: legislative hearing by the Subcommittee on
Energy and Mineral Resources held on July 25, 2019.

Section-by-Section Analysis

Section 1. Short title

This section provides the short title of the bill, the
``Public Land Renewable Energy Development Act of 2019''.

Section 2. Table of contents

This section provides the table of contents of the
legislation.

Section 3. Definitions

This section defines key terms in the bill. Definitions in
this section make clear that renewable energy development
continues to be prohibited inside national parks, wilderness
areas, and other federally protected public lands where energy
development is prohibited under existing federal law.

Section 4. Land use planning; supplements to programmatic environmental
impact statements

This section directs the Secretary of the Interior, in
consultation with the Secretary of Energy, to designate,
periodically review, and encourage development inside pre-
screened priority areas for wind, solar, and geothermal energy.
Projects inside designated leasing areas will receive faster
permit approvals, pay lower fees, and received highest priority
for review by the Bureau of Land Management. Land
classifications will be reviewed at least once every five
years, with modifications made if necessary. Solar priority
areas established in 2012 shall be reviewed within three years
of enactment. This section also directs DOI to coordinate with
states, tribes, local governments, transmission owners and
operators, developers, and other appropriate entities when
establishing priority areas. This section also clarifies that,
in accordance with current law, renewable energy permitting
activities can proceed under the current wind and solar
programmatic environmental impact statements (PEIS) with any
required additional environmental review while a supplement to
a PEIS is being prepared.

Section 5. Environmental review on covered land

This section states that a renewable energy project will
not need to undergo further environmental review if the
Secretary determines that it has been sufficiently analyzed by
a programmatic environmental impact statement. The Secretary
shall publish any such determinations on a publicly available
website as soon as possible. When additional review is
required, the Secretary shall rely on analysis from existing
programmatic environmental impact statements as much as
possible.

Section 6. Program to improve renewable energy project permit
coordination

This section outlines steps that the Secretary of the
Interior shall take to improve renewable energy permitting
programs. The Secretary shall establish a national Renewable
Energy Coordination Office and affiliated state and field
offices across the country where such expertise would be most
valuable. The Secretary is directed to sign a Memorandum of
Understanding (MOU) with the Secretary of Defense and the
Secretary of Agriculture for the purposes of improving
renewable energy permit reviews; governors and tribal leaders
may also be invited to join this MOU. All federal agencies that
sign the MOU must identify staff with expertise on regulatory
issues relevant to renewable energy project reviews. The
section also clarifies that BLM is authorized to accept
donations from renewable energy developers for environmental
reviews, authority that is routinely used by the oil and gas
industry but not by the renewable energy industry. The
Secretary of the Interior shall submit an annual report to
Congress that includes information on projects operating on
public lands and summaries of any problems that arise
throughout the leasing, permitting, and production processes.

Section 7. Increasing economic certainty

This section gives the Secretary authority to reduce wind
and solar rental rates and capacity fees if there is a
demonstrated economic need. This authority is modeled after
existing authorities already provided in statute for the coal,
oil, and gas industries. The Secretary shall limit increases in
base rental rates to the Implicit Price Deflator-Gross Domestic
Product for the entire life of a right-of-way authorization.
This section also allows the Secretary to reduce fees paid by
solar projects affected by the 2012 Western Solar Plan. It is
the Committee's understanding that a number of existing solar
projects found themselves inside Designated Leasing Areas under
the Western Solar Plan but are paying fees as if they were
located outside of such priority areas.

Section 8. Limited grandfathering

This section provides limited grandfathering to certain
wind and solar energy projects that had already applied for a
right-of-way before implementation of the Wind and Solar
Leasing Rule. This section is intended to address unexpected
changes to the fee structure for projects that had already
begun the permit application process before implementation of
the Wind and Solar Leasing Rule. This section is not intended
to limit BLM's ability to periodically review and increase
rental rates and fees over time. Project owners can choose to
opt-in or opt-out of this limited grandfathering.

Section 9. Renewable energy goal

This section establishes a goal of permitting 25 gigawatts
of renewable energy on public lands by 2025. This goal is
cumulative and shall include all previously permitted projects
on lands managed by the Department of the Interior and the
Department of Agriculture at the date of enactment. The
Secretary may not count any permitted offshore wind projects
toward this goal.

Section 10. Disposition of revenues

This section establishes the distribution of revenues from
wind and solar energy projects: 25 percent to states, 25
percent to counties, 25 percent to a new Renewable Energy
Resource Conservation Fund, 15 percent to BLM to assist with
renewable energy permitting, and 10 percent to the Treasury for
deficit reduction. Money in the new fund will be distributed by
the Secretary of the Interior to federal, state, local, and
tribal agencies for projects protecting and restoring fish and
wildlife habitat, or to ensure and improve access for hunting,
fishing, and other outdoor recreational activities.

Section 11. Promoting and enhancing development of geothermal energy

This section reauthorizes the Geothermal Steam Act, the
statute that governs geothermal energy production on public
lands.

Section 12. Facilitation of coproduction of geothermal energy on oil
and gas leases

This section allows holders of oil and gas leases to obtain
noncompetitive geothermal leases under the Geothermal Steam Act
to allow for the co-production of geothermal energy from an oil
and gas well.

Section 13. Noncompetitive leasing of adjoining areas for development
of geothermal resources

This section allows the Secretary of the Interior to award
non-competitive leases for geothermal energy production on
adjoining areas of an existing lease under specific conditions.
Non-competitive leases awarded in this manner will be required
to pay a fee determined by the Secretary of the Interior based
on fair market value with a determination subject to public
comment and appeal.

Section 14. Savings clause

This section states that nothing in the bill shall change
the Secretary's responsibility to manage public lands under the
principles of multiple use and sustained yield in accordance
with the Federal Land Policy and Management Act (FLPMA).

Committee Oversight Findings and Recommendations

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.

Compliance With House Rule XIII and Congressional Budget Act

1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:

U.S. Congress,
Congressional Budget Office,
Washington, DC, March 4, 2020.
Hon. Raul M. Grijalva,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3794, the Public
Land Renewable Energy Development Act of 2019.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Janani
Shankaran.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

The bill would
Authorize the Bureau of Land Management
(BLM) to spend income from renewable-energy projects
located on federal land without further appropriation
Reduce the rates charged for certain wind
and solar energy projects located on federal land
Direct BLM to establish priority areas on
federal land for renewable-energy projects
Estimated budgetary effects would primarily stem from
Spending of income from renewable-energy
projects
Forgone government income resulting from
reduced rates
Bill summary: H.R. 3794 would authorize the Bureau of Land
Management (BLM) to spend income received from renewable-energy
projects located on federal land without further appropriation.
The bill also would reduce the rates charged for certain wind
and solar energy projects located on federal land, and would
direct the BLM to establish priority areas on federal land for
renewable energy projects.
Estimated Federal cost: The estimated budgetary effect of
H.R. 3794 is shown in Table 1. The costs of the legislation
fall within budget functions 300 (natural resources and
environment) and 800 (general government).

TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3794
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
----------------------------------------------------
2020 2021 2022 2023 2024 2025 2020-2025
----------------------------------------------------------------------------------------------------------------
Increases in Direct Spending

Estimated Budget Authority................................. 27 30 31 27 28 29 172
Estimated Outlays.......................................... 12 25 29 30 32 29 157

Increases in Spending Subject to Appropriation

Estimated Authorization.................................... * 1 1 1 1 1 5
Estimated Outlays.......................................... * 1 1 1 1 1 5
----------------------------------------------------------------------------------------------------------------
*= between zero and $500,000.

Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted in 2020 and that the necessary
amounts will be provided in each year. Estimated outlays are
based on historical spending patterns for similar activities.
Background: Under current law, businesses that seek to
develop wind and solar energy projects on federal land apply to
BLM for a right-of-way grant. After obtaining a grant,
businesses pay the federal government annual rent based on land
values and a megawatt capacity fee. (If multiple businesses are
interested in the same parcel, BLM may issue a right-of-way
grant to the highest bidder.) Those payments, which totaled $28
million in 2019, are classified in the budget as offsetting
receipts, which are recorded as reductions in direct spending.
CBO projects that under current law, the government will
collect $341 million in receipts from wind and solar energy
projects over the 2020-2030 period. Spending of those receipts
is subject to appropriation.
BLM also administers geothermal leasing on federal land.
For all executed leases, lessees pay the federal government a
bonus bid (the amount that a business is willing to pay for the
right to extract geothermal resources), annual rent to retain
the lease, and royalties based on the value of any geothermal
resources produced. Those payments, which totaled $16 million
in 2019, are recorded in the budget as offsetting receipts. CBO
projects that the government will collect gross receipts of
$176 million from geothermal leasing over the 2020-2030 period.
Under current law, states and counties receive 75 percent of
those amounts; thus, net federal receipts will total $44
million over that same period.
Direct spending: CBO estimates that enacting H.R. 3794
would increase direct spending by $307 million over the 2020-
2030 period (see Table 2).

TABLE 2.--INCREASES IN DIRECT SPENDING UNDER H.R. 3794
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2020-2025 2020-2030
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rate Reductions for Certain Wind and Solar Projects:
Estimated Budget Authority....................... 2 6 6 6 6 6 6 6 6 6 6 32 62
Estimated Outlays................................ 2 6 6 6 6 6 6 6 6 6 6 32 62
Spending of Wind and Solar Proceeds:
Estimated Budget Authority....................... 17 20 21 21 22 23 23 24 24 25 25 124 245
Estimated Outlays................................ 10 16 19 20 22 22 23 23 24 25 25 109 229
Spending of Geothermal Proceeds:
Estimated Budget Authority....................... 8 4 4 0 0 0 0 0 0 0 0 16 16
Estimated Outlays................................ * 3 4 4 4 1 0 0 0 0 0 16 16
Total Changes:
Estimated Budget Authority................... 27 30 31 27 28 29 29 30 30 31 31 172 323
Estimated Outlays............................ 12 25 29 30 32 29 29 29 30 31 31 157 307
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

Rate reductions for certain wind and solar projects: In
December 2016, BLM issued a rule that increased rents and
megawatt capacity fees for wind and solar energy projects on
federal land. Operators that submitted right-of-way
applications or already had projects before BLM issued the rule
began to pay new rates in 2018. Section 8 would allow those
operators to pay the rates in effect before the rule. Using
information from BLM, CBO estimates that enacting the section
would reduce offsetting receipts by $6 million annually and by
$62 million over the 2020-2030 period.
Spending of wind and solar proceeds: Effective January 1,
2020, section 10 would make 90 percent of bonus bids, rents,
and capacity fees from wind and solar energy projects available
to spend without further appropriation. CBO estimates that
under the bill, the government would collect, on average, $25
million annually in receipts over the 2020-2030 period. Fifty
percent of receipts would be paid to states and counties where
those projects are located; 25 percent would be deposited into
a conservation fund for restoration activities; and 15 percent
would be available for processing permits. CBO assumes that
payments to states and counties would be made in the same year
that the receipts are collected.
H.R. 3794 would authorize the Department of the Treasury to
pay interest on any balances in the conservation fund that are
not needed for current expenditures; those amounts also would
be available to spend without further appropriation. CBO
estimates that enacting section 10 would increase direct
spending by $229 million over the 2020-2030 period; about $2
million of that amount would stem from interest credited to the
conservation fund.
Spending of geothermal proceeds: Section 11 would authorize
BLM to spend, without further appropriation, 25 percent of
gross receipts collected from geothermal leasing over the 2019-
2022 period. Those amounts would be available for administering
the program. CBO estimates that enacting the section would
increase direct spending by $16 million over the 2020-2030
period.
Other provisions: Section 12 would allow an operator with a
federal oil and gas lease to noncompetitively acquire the
rights to coproduce geothermal resources under that lease.
Section 13 of the bill would permit an operator with a federal
geothermal lease to noncompetitively lease land adjoining that
lease. CBO expects that allowing businesses to acquire such
rights noncompetitively would reduce bonus bids as some
businesses would now acquire leases without bidding for them.
However, the bill also could increase royalties from geothermal
leasing if businesses obtain noncompetitive leases on the land
they would not otherwise bid on. Using information from BLM,
CBO expects that enacting this provision would affect few
leases and that the net effect on direct spending would be
negligible.
Spending subject to appropriation: Section 4 would direct
BLM to establish priority areas on federal land for solar,
wind, and geothermal energy projects. Based on the costs of
similar tasks, CBO estimates that implementing the provision
would cost less than $500,000 in 2020 and about $1 million
annually over the 2021-2025 period. That amount reflects six
additional employees at an average annual cost of $150,000
each.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 3.

TABLE 3.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 3794, THE PUBLIC LAND RENEWABLE ENERGY DEVELOPMENT ACT OF 2019, AS ORDERED
REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON NOVEMBER 20, 2019
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2020-2025 2020-2030
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Increase in the Deficit

Pay-As-You-Go Effect................................. 12 25 29 30 32 29 29 29 30 31 31 157 307
--------------------------------------------------------------------------------------------------------------------------------------------------------

Increase in long-term deficits: CBO estimates that enacting
H.R. 3794 would not increase on-budget deficits by more than $5
billion in any of the four consecutive 10-year periods
beginning in 2031.
Mandates: None.
Estimate prepared by: Federal Costs: Janani Shankaran;
Mandates: Lilia Ledezma.
Estimate reviewed by: Kim P. Cawley, Chief, Natural and
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss,
Deputy Director of Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goals and
objectives of this bill are to promote the development of
renewable energy on public lands.

Earmark Statement

This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.

Unfunded Mandates Reform Act Statement

This bill contains no unfunded mandates.

Existing Programs

This bill does not establish or reauthorize a program of
the federal government known to be duplicative of another
program. Such program was not included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139. The Renewable Energy Resource
Conservation Fund established by this bill at section 10(c) is
related and complementary to, but not duplicative of, the
following programs identified in the most recent Catalog of
Federal Domestic Assistance published pursuant to 31 U.S.C.
Sec. 6104: Watershed Restoration and Enhancement Agreement
Authority (CFDA No. 10.693), Plant Conservation and Restoration
Management (CFDA No. 15.245), Fish and Wildlife Coordination
Act (CFDA No. 15.517), Recreation Resources Management (CFDA
No. 15.524), Sport Fish Restoration (CFDA No. 15.605), Wildlife
Restoration and Basic Hunter Education (CFDA No. 15.611),
Coastal Wetlands Planning, Protection and Restoration (CFDA No.
15.614), and North American Wetlands Conservation Fund (CFDA
No. 15.623).

Applicability to Legislative Branch

The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.

Preemption of State, Local, or Tribal Law

Any preemptive effect of this bill over state, local, or
tribal law is intended to be consistent with the bill's
purposes and text and the Supremacy Clause of Article VI of the
U.S. Constitution.

Changes in Existing Law Made by the Bill, as Reported

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):

ENERGY POLICY ACT OF 2005

* * * * * * *
TITLE II--RENEWABLE ENERGY

* * * * * * *

Subtitle B--Geothermal Energy

* * * * * * *

SEC. 234. DEPOSIT AND USE OF GEOTHERMAL LEASE REVENUES FOR 5 FISCAL
YEARS.

(a) Deposit of Geothermal Resources Leases.--Notwithstanding
any other provision of law, amounts received by the United
States [in the first 5 fiscal years beginning after the date of
enactment of this Act] through fiscal year 2022 as rentals,
royalties, and other payments required under leases under the
Geothermal Steam Act of 1970, excluding funds required to be
paid to State and county governments, shall be deposited into a
separate account in the Treasury.
(b) Use of Deposits.--[Amounts]
(1) In general._Amounts deposited under subsection
(a) shall be available to the Secretary of the Interior
for expenditure, without further appropriation and
without fiscal year limitation, to implement the
Geothermal Steam Act of 1970 and this Act.
(2) Authorization.--Effective for fiscal year 2019
and each fiscal year thereafter, amounts deposited
under subsection (a) shall be available to the
Secretary of the Interior for expenditure, without
further appropriation or fiscal year limitation, to
implement the Geothermal Steam Act of 1970 (30 U.S.C.
1001 et seq.) and this Act.
(c) Transfer of Funds.--For the purposes of coordination and
processing of geothermal leases and geothermal use
authorizations on Federal land the Secretary of the Interior
may authorize the expenditure or transfer of such funds as are
necessary to the Forest Service.

* * * * * * *

----------

GEOTHERMAL STEAM ACT OF 1970

* * * * * * *
SEC. 4. LEASING PROCEDURES.

(a) Nominations.--The Secretary shall accept nominations of
land to be leased at any time from qualified companies and
individuals under this Act.
(b) Competitive Lease Sale Required.--
(1) In general.--Except as otherwise specifically
provided by this Act, all land to be leased that is not
subject to leasing under subsection (c) shall be leased
as provided in this subsection to the highest
responsible qualified bidder, as determined by the
Secretary.
(2) Competitive lease sales.--The Secretary shall
hold a competitive lease sale at least once every 2
years for land in a State that has nominations pending
under subsection (a) if the land is otherwise available
for leasing.
(3) Lands subject to mining claims.--Lands that are
subject to a mining claim for which a plan of
operations has been approved by the relevant Federal
land management agency may be available for
noncompetitive leasing under this section to the mining
claim holder.
(4) Land subject to oil and gas lease.--Land under an
oil and gas lease issued pursuant to the Mineral
Leasing Act (30 U.S.C. 181 et seq.) or the Mineral
Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.)
that is subject to an approved application for permit
to drill and from which oil and gas production is
occurring may be available for noncompetitive leasing
under subsection (c) by the holder of the oil and gas
lease--
(A) on a determination that geothermal energy
will be produced from a well producing or
capable of producing oil and gas; and
(B) in order to provide for the coproduction
of geothermal energy with oil and gas.
(5) Adjoining land.--
(A) Definitions.--In this paragraph:
(i) Fair market value per acre.--The
term ``fair market value per acre''
means a dollar amount per acre that--
(I) except as provided in
this clause, shall be equal to
the market value per acre
(taking into account the
determination under
subparagraph (B)(iii) regarding
a valid discovery on the
adjoining land) as determined
by the Secretary under
regulations issued under this
paragraph;
(II) shall be determined by
the Secretary with respect to a
lease under this paragraph, by
not later than the end of the
180-day period beginning on the
date the Secretary receives an
application for the lease; and
(III) shall be not less than
the greater of--
(aa) 4 times the
median amount paid per
acre for all land
leased under this Act
during the preceding
year; or
(bb) $50.
(ii) Industry standards.--The term
``industry standards'' means the
standards by which a qualified
geothermal professional assesses
whether downhole or flowing temperature
measurements with indications of
permeability are sufficient to produce
energy from geothermal resources, as
determined through flow or injection
testing or measurement of lost
circulation while drilling.
(iii) Qualified federal land.--The
term ``qualified Federal land'' means
land that is otherwise available for
leasing under this Act.
(iv) Qualified geothermal
professional.--The term ``qualified
geothermal professional'' means an
individual who is an engineer or
geoscientist in good professional
standing with at least 5 years of
experience in geothermal exploration,
development, or project assessment.
(v) Qualified lessee.--The term
``qualified lessee'' means a person who
may hold a geothermal lease under this
Act (including applicable regulations).
(vi) Valid discovery.--The term
``valid discovery'' means a discovery
of a geothermal resource by a new or
existing slim hole or production well,
that exhibits downhole or flowing
temperature measurements with
indications of permeability that are
sufficient to meet industry standards.
(B) Authority.--An area of qualified Federal
land that adjoins other land for which a
qualified lessee holds a legal right to develop
geothermal resources may be available for a
noncompetitive lease under this section to the
qualified lessee at the fair market value per
acre, if--
(i) the area of qualified Federal
land--
(I) consists of not less than
1 acre and not more than 640
acres; and
(II) is not already leased
under this Act or nominated to
be leased under subsection (a);
(ii) the qualified lessee has not
previously received a noncompetitive
lease under this paragraph in
connection with the valid discovery for
which data has been submitted under
clause (iii)(I); and
(iii) sufficient geological and other
technical data prepared by a qualified
geothermal professional has been
submitted by the qualified lessee to
the applicable Federal land management
agency that would lead individuals who
are experienced in the subject matter
to believe that--
(I) there is a valid
discovery of geothermal
resources on the land for which
the qualified lessee holds the
legal right to develop
geothermal resources; and
(II) that geothermal feature
extends into the adjoining
areas.
(C) Determination of fair market value.--
(i) In general.--The Secretary
shall--
(I) publish a notice of any
request to lease land under
this paragraph;
(II) determine fair market
value for purposes of this
paragraph in accordance with
procedures for making those
determinations that are
established by regulations
issued by the Secretary;
(III) provide to a qualified
lessee and publish, with an
opportunity for public comment
for a period of 30 days, any
proposed determination under
this subparagraph of the fair
market value of an area that
the qualified lessee seeks to
lease under this paragraph; and
(IV) provide to the qualified
lessee and any adversely
affected party the opportunity
to appeal the final
determination of fair market
value in an administrative
proceeding before the
applicable Federal land
management agency, in
accordance with applicable law
(including regulations).
(ii) Limitation on nomination.--After
publication of a notice of request to
lease land under this paragraph, the
Secretary may not accept under
subsection (a) any nomination of the
land for leasing unless the request has
been denied or withdrawn.
(iii) Annual rental.--For purposes of
section 5(a)(3), a lease awarded under
this paragraph shall be considered a
lease awarded in a competitive lease
sale.
(D) Regulations.--Not later than 270 days
after the date of the enactment of this
paragraph, the Secretary shall issue
regulations to carry out this paragraph.
(c) Noncompetitive Leasing.--The Secretary shall make
available for a period of 2 years for noncompetitive leasing
any tract for which a competitive lease sale is held, but for
which the Secretary does not receive any bids in a competitive
lease sale.
(d) Pending Lease Applications.--
(1) In general.--It shall be a priority for the
Secretary, and for the Secretary of Agriculture with
respect to National Forest Systems land, to ensure
timely completion of administrative actions, including
amendments to applicable forest plans and resource
management plans, necessary to process applications for
geothermal leasing pending on the date of enactment of
this subsection. All future forest plans and resource
management plans for areas with high geothermal
resource potential shall consider geothermal leasing
and development.
(2) Administration.--An application described in
paragraph (1) and any lease issued pursuant to the
application--
(A) except as provided in subparagraph (B),
shall be subject to this section as in effect
on the day before the date of enactment of this
paragraph; or
(B) at the election of the applicant, shall
be subject to this section as in effect on the
effective date of this paragraph.
(e) Leases Sold as a Block.--If information is available to
the Secretary indicating a geothermal resource that could be
produced as 1 unit can reasonably be expected to underlie more
than 1 parcel to be offered in a competitive lease sale, the
parcels for such a resource may be offered for bidding as a
block in the competitive lease sale.
(f) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify
areas in which the land to be leased under this Act exclusively
for direct use of geothermal resources, without sale for
purposes other than commercial generation of electricity, may
be leased to any qualified applicant that first applies for
such a lease under regulations issued by the Secretary, if the
Secretary--
(1) publishes a notice of the land proposed for
leasing not later than 90 days before the date of the
issuance of the lease;
(2) does not receive during the 90-day period
beginning on the date of the publication any nomination
to include the land concerned in the next competitive
lease sale; and
(3) determines there is no competitive interest in
the geothermal resources in the land to be leased.
(g) Area Subject to Lease for Direct Use.--
(1) In general.--Subject to paragraph (2), a
geothermal lease for the direct use of geothermal
resources shall cover not more than the quantity of
acreage determined by the Secretary to be reasonably
necessary for the proposed use.
(2) Limitations.--The quantity of acreage covered by
the lease shall not exceed the limitations established
under section 7.

* * * * * * *

Supplemental, Minority, Additional, or Dissenting Views

None.