Sec. 203. Royalties
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The Secretary concerned shall require as a term and condition of any lease issued under section 202, the payment of a royalty. The Secretary of the Interior and the Secretary of Agriculture shall establish such royalty pursuant to a joint rulemaking that shall be a percentage of the gross proceeds from the sale of electricity produced on covered land that is the subject of such lease at a rate that— encourages production of solar or wind energy; ensures a fair return to the public comparable to the return that would be obtained on State or private land; and encourages the maximum energy generation while disturbing the least quantity of covered land and other natural resources, including water.
In establishing the royalty under subsection (a), the Secretary of the Interior and the Secretary of Agriculture shall consider the relative capacity factors of wind and solar energy projects. The royalty under subsection
(a)shall be the only rent, royalty, or similar payment to the Federal Government required with respect to the sale of electricity produced under a lease issued under section 202. The Secretary concerned may reduce the royalty rate established under subsection
(a)if the holder of a lease issued under this title shows by clear and convincing evidence that— collection of the full royalty would unreasonably burden energy generation on covered land that is the subject of the lease; and the royalty reduction is in the public interest. The Secretary of the Interior and the Secretary of Agriculture shall jointly establish a comprehensive inspection, collection, fiscal, and production accounting and auditing system— to accurately determine royalties, interest, fines, penalties, fees, deposits, and other payments owed under this title; and to collect and account for the payments in a timely manner. The provisions of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1701 et seq. ) (including the civil and criminal enforcement provisions of such Act) shall apply to leases issued under this title with respect to wind and solar energy projects in the same manner as such provisions apply to oil and gas leases. Not later than 5 years after the date of enactment of this Act and every 5 years thereafter, the Secretary of the Interior, in consultation with the Secretary of Agriculture, shall submit to the Committee on Energy and Natural Resources and the Committee on Agriculture of the Senate and the Committee on Natural Resources and the Committee on Agriculture of the House of Representatives a report consisting of a review of the collections and impacts of the royalties and fees collected under this title, including— the total revenues received (by category) on an annual basis as royalties from wind, solar, and geothermal development and production (specified by energy source) on covered land; whether the revenues received for the development of wind, solar, and geothermal development are comparable to the revenues received for similar development on State or private land; any impact on the development of wind, solar, and geothermal development and production on covered land as a result of the royalties; and any recommendations with respect to changes in Federal law (including regulations) relating to the amount or method of collection (including auditing, compliance, and enforcement) of the royalties. Not later than one year after the date of the enactment of this Act, the Secretary of the Interior and the Secretary of Agriculture shall jointly issue final regulations to carry out this section.
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