Sec. 203. Development of solar and wind energy on public land
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Not later than 180 days after the date of enactment of this Act, the Secretary shall establish a wind and solar leasing pilot program on covered land administered by the Secretary. Not later than 90 days after the date the pilot program is established under this subsection, the Secretary shall (taking into consideration the multiple resource values of the land) select 2 sites that are appropriate for the development of a solar energy project, and 2 sites that are appropriate for the development of a wind energy project, on covered land administered by the Secretary as part of the pilot program.
In carrying out subparagraph (A), the Secretary shall seek to select sites— for which there is likely to be a high level of industry interest; that have a comparatively low value for other resources; and that are representative of sites on which solar or wind energy is likely to be developed on covered land. The Secretary shall not select as part of the pilot program any site for which a notice of intent has been issued. Prior to any lease sale, the Secretary shall establish qualifications for bidders that ensure bidders— are able to expeditiously develop a wind or solar energy project on the site for lease; possess— financial resources necessary to complete a project; knowledge of the applicable technology; and such other qualifications as are determined appropriate by the Secretary; and meet the eligibility requirements for leasing under the first section of the Mineral Leasing Act ( 30 U.S.C. 181 ).
Except as provided in subparagraph (D)(ii), not later than 180 days after the date 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. In offering the sites for lease, the Secretary may vary the bidding systems to be used at each lease sale, to ensure a fair return to the public, including— cash bonus bids with a requirement for payment of the royalty established under this Act; variable royalty bids based on a percentage of the gross proceeds from the sale of electricity produced from the lease, except that the royalty shall not be less than the royalty required under this Act, together with a fixed cash bonus; and such other bidding system as ensures a fair return to the public consistent with the royalty established under this Act.
The Secretary shall limit bidding to 1 round in any lease sale. In any case in which the land that is subject to lease has 1 or more pending applications for the development of wind or solar energy at the time of the lease sale, the Secretary shall give credit toward any bid submitted by the applicant for expenditures of the applicant considered by the Secretary to be qualified and necessary for the preparation of the application. Bonus bids, royalties, rentals, fees, or other payments collected by the Secretary under this section shall be subject to section 204.
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. As part of the pilot program, the Secretary shall— offer on a noncompetitive basis on at least 1 site a short-term lease for data collection; and 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.
In offering for lease the selected sites under paragraph (4), the Secretary shall comply with all applicable environmental and other laws. The Secretary shall— compile a report of the results of each lease sale under the pilot program, including— the level of competitive interest; a summary of bids and revenues received; and any other factors that may have impacted the lease sale process; and 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).
During the pendency of the pilot program, the Secretary shall continue to issue rights-of-way, in compliance with authority in effect on the date of enactment of this Act, for available sites not selected for the pilot program. Not later than 2 years after the date of enactment of this Act, the Secretaries shall make a joint determination on whether to establish a leasing program under this section for wind or solar energy, or both, on all covered land. If the Secretaries determine that a leasing program should be established, the program shall apply to all covered land in accordance with this Act and other provisions of law applicable to public land or National Forest System land.
The Secretaries shall establish a leasing program unless the Secretaries determine that the program— is not in the public interest; and does not provide an effective means of developing wind or solar energy. In making the determinations required under this subsection, the Secretaries shall consult with— the heads of other relevant Federal agencies; interested States, Indian tribes, and local governments; representatives of the solar and wind industries; representatives of the environment, conservation, and outdoor sporting communities; other users of the covered land; and the public.
In making the determinations required under this subsection, the Secretaries shall consider the results of the pilot program. Not later than 1 year after the date on which any determination is made to establish a leasing program, the Secretaries shall jointly promulgate final regulations to implement the program. If the Secretaries determine that a leasing program should not be established, not later than 60 days after the date of the determination, the Secretaries shall jointly 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 basis and findings for the determination.
If the Secretaries determine under subsection
(b)that a leasing program should be established for covered land, until the program is established and final regulations for the program are issued— the Secretary shall continue to accept applications for rights-of-way on covered land, and provide for the issuance of rights-of-way on covered land within the jurisdiction of the Secretary for the development of wind or solar energy pursuant to each requirement described in title V of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1761 et seq. ) and other applicable law; and the Secretary of Agriculture shall continue to accept applications for authorizations, and provide for the issuance of the authorizations, for the development of wind or solar energy on covered land within the jurisdiction of the Secretary pursuant to applicable law. Effective beginning on the date on which the wind or solar leasing programs are established and final regulations are issued, the Secretaries shall not renew an existing right-of-way or other authorization for wind or solar energy development at the end of the term of the right-of-way or authorization. Subject to clause (ii), at the end of the term of the right-of-way or other authorization for the wind or solar energy project, the Secretary or, in the case of National Forest System land, the Secretary of Agriculture, shall grant, without a competitive process, a lease to the holder of the right-of-way or other authorization for the same covered land as was authorized under the right-of-way or other authorization if (as determined by the Secretary concerned)— the holder of the right-of-way or other authorization has met the requirements of diligent development; and issuance of the lease is in the public interest and consistent with applicable law. Any lease described in clause
(i)shall be subject to— terms and conditions that are consistent with this Act and the regulations issued under this Act; and the regulations in effect on the date of renewal and any other terms and conditions that the Secretary considers necessary to protect the public interest. Effective beginning on the date on which the wind or solar leasing programs are established and final regulations for the programs are issued, the Secretary or, with respect to National Forest System land, the Secretary of Agriculture shall provide any applicant that has filed a plan of development for a right-of-way or, in the case of National Forest System land, for an applicable authorization, for a wind or solar energy project with an option to acquire a lease on a noncompetitive basis, under such terms and conditions as are required by this Act, applicable regulations, and the Secretary concerned, for the same covered land included in the plan of development if— the plan of development has been determined by the Secretary concerned to be adequate for the initiation of environmental review; granting the lease is consistent with all applicable land use planning, environmental, and other laws; the applicant has made a good faith effort to obtain a right-of-way or, in the case of National Forest System land, other authorization, for the project; and issuance of the lease is in the public interest. If the Secretaries determine under subsection
(b)that a leasing program should be established, the program shall be established in accordance with subsections
(e)through (k). 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. Paragraph
(1)shall not apply if the Secretary or, with respect to National Forest System land, the Secretary of Agriculture determines that— no competitive interest exists for the covered land; the public interest would not be served by the competitive issuance of a lease; 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; or the covered land is eligible to be granted a noncompetitive lease under subsection (c). The Secretaries shall jointly establish— fees, rentals, bonuses, or other payments to ensure a fair return to the United States for any lease issued under this section; and royalties pursuant to section 205 that apply to all leases issued under this section. The Secretaries may grant credit toward any bonus bid for a qualified expenditure by the holder of a lease described in subsection (e)(2)(C) in any competitive lease sale held for a long-term lease covering the same land covered by the lease described in subsection (e)(2)(C). Prior to any lease sale, the Secretary shall establish qualifications for bidders that ensure bidders meet the requirements described in subsection (a)(3). The Secretaries shall ensure that any activity under a leasing program is carried out in a manner that— is consistent with all applicable land use planning, environmental, and other laws; and provides for— safety; protection of the environment and fish and wildlife habitat; mitigation of impacts; prevention of waste; diligent development of the resource, with specific milestones to be met by the lessee as determined by the Secretaries; coordination with applicable Federal agencies; a fair return to the United States for any lease; use of best management practices, including planning and practices for mitigation of impacts; public notice and comment on any proposal submitted for a lease under this section; oversight, inspection, research, monitoring, and enforcement relating to a lease under this section; the quantity of acreage to be commensurate with the size of the project covered by a lease; and efficient use of water resources. A lease under this section shall be for— an initial term of 25 years; and any additional period after the initial term during which electricity is being produced annually in commercial quantities from the lease. The Secretary shall establish terms and conditions for the issuance, transfer, renewal, suspension, and cancellation of a lease under this section. Royalties, rentals, and other terms and conditions of a lease under this section shall be subject to readjustment— on the date that is 15 years after the date on which the lease is issued; and every 10 years thereafter. Each lease issued under this Act shall provide for readjustment in accordance with subparagraph (A). The Secretaries shall— regulate all surface-disturbing activities conducted pursuant to any lease issued under this section; and require any necessary reclamation and other actions under the lease as are required in the interest of conservation of surface resources. The Secretaries shall require the holder of a lease issued under this section— to furnish a surety bond or other form of security, as prescribed by the Secretaries; to provide for the reclamation and restoration of the area covered by the lease; and to comply with such other requirements as the Secretaries consider necessary to protect the interests of the public and the United States. Not less frequently than once every 5 years, the Secretary shall conduct a review of the adequacy of the surety bond or other form of security provided by the holder of a lease issued under this section.
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