Sec. 323. Development of solar and wind energy on covered land
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Not later than 180 days after the date of the enactment of this Act, the Secretary shall establish a wind and solar energy leasing pilot program under which the Secretary conducts lease sales of certain sites located on covered land for purposes of carrying out wind and solar energy projects. Not later than 90 days after the date the pilot program is established under paragraph (1), the Secretary shall select from covered land— 1 site for the development of a solar energy project; and 1 site for the development of a wind energy project.
In selecting sites under subparagraph (A), the Secretary shall— give a preference to sites that the Secretary determines— are likely to attract a high level of wind and solar energy industry interest; would likely have a positive impact on water supply through reducing water loss from evaporation by providing shade and temperature reductions, or beneficial impacts from energy production and infrastructure; and would serve as models for the expansion of the pilot program to other locations if the program is expanded under subsection (c); take into consideration the value of the multiple resources of the covered land on which such sites are located; and not select any site for which a right-of-way or special use permit for site testing or construction has been issued under title V of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1761 et seq. ).
Except as provided in paragraph (4)(B)(i), 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 under such terms and conditions as the Secretary requires. Bidding on a site offered for lease under this subsection shall be— limited to one round; open only to bidders who— submit a plan of development for such site together with the bid; and the Secretary determines are qualified under subparagraph (C)(ii); and conducted using a bidding system selected by the Secretary, including— a cash bonus bids system requiring payment of the royalty established under this Act; a variable royalty bids system based on a percentage of the gross proceeds from the sale of electricity produced from the site offered for lease, except that the royalty shall not be less than the royalty required under this Act, together with a fixed cash bonus; or such other bidding system as ensures a fair return to the public consistent with the royalty established under this Act.
The Secretary shall— before conducting any lease sale under this subsection, establish qualification requirements for bidders on a site offered for lease that ensure that such bidders, with respect to wind or solar energy projects— are able to expeditiously develop such a project on the site; possess the financial resources necessary to complete such a project; possess knowledge of the technology needed to complete such a project; meet eligibility requirements that are substantially similar to the eligibility requirements for leasing that apply under the first section of the Mineral Leasing Act ( 30 U.S.C. 181 et seq. ); and possess such other qualifications as the Secretary determines are necessary; and using the requirements established under clause (i), determine whether a person is qualified to be a bidder on a site offered for lease under this subsection.
In the case of a site offered for lease under this subsection with respect to which more than one bid is submitted on the date of the lease sale of such site, the Secretary shall give credit to each person who submitted a bid with respect to such site for expenditures such person incurred in the preparation of such bid. The Secretary may establish such lease terms and conditions, including the duration of the lease with respect to any site offered for lease under this subsection.
In carrying out this subsection, the Secretary shall— offer on a noncompetitive basis a short-term lease on not less than one site selected under paragraph
(2)for purposes of data collection; and upon the expiration of the short-term lease, offer on a competitive basis a long-term lease, giving credit toward the bonus bid submitted with respect to the long-term lease to the holder of the short-term lease for any qualified expenditures made by such holder to collect data or to develop the site during such short-term lease. Subject to section 324, the Secretary may collect bonus bids, royalties, fees, or other payments (except rental payments) with respect to sites offered for lease under this subsection. Not later than 90 days after the date on which the Secretary conducts the final lease sale under this subsection, 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 on the results of each lease sale conducted under this subsection, including— the level of competitive interest; a summary of bids and revenues received; and any other factors that may have impacted the lease sale. In offering sites for lease under this subsection, the Secretary concerned shall comply with— all Federal laws applicable to lands under the administrative jurisdiction of the Bureau of Land Management; and Federal or State environmental laws or any other relevant laws. Nothing in this subsection shall be construed so as to prohibit the Secretary from issuing rights-of-way or special use permits with respect to wind and solar energy projects in compliance with other Federal laws and regulations in effect on the date of the enactment of this Act. Sections 302(c) and 303 of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1732(c) , 1733) shall apply to activities conducted on sites on covered land offered for lease under this subsection. Nothing in this subsection shall be construed so as to reduce or limit the enforcement authority vested in the Secretary or the Attorney General on covered land under any other Federal law. Until final regulations are issued under subsection (c)(4), the Secretary shall continue to carry out the pilot program under subsection
(a)on the sites offered for lease under such subsection. The Secretary may extend any lease issued for such sites under subsection
(a)under the same terms and conditions applicable to such lease on the date of the lease sale as necessary until final regulations are issued under subsection (c)(4) with respect to such sites. Not later than 5 years after the date of the enactment of this Act, the Secretary shall determine whether to expand the pilot program established under subsection
(a)to apply to all covered land, including sites with respect to which leases were issued under subsection (a). In making such determination, the Secretary shall— take into consideration the results of the pilot program; consult with— the heads of Federal agencies and relevant State agencies (including State fish and wildlife agencies); interested States, Indian tribes, and local governments; representatives of the solar and wind energy industries; representatives of the environment, conservation, and outdoor sporting communities; and the public; and consider whether such expansion— provides an effective means of developing wind or solar energy; and is in the public interest. The Secretary shall expand pilot program only if the Secretary determined to expand the pilot program under paragraph (1). Not later than 60 days after making the determination under paragraph
(1)to expand the pilot program, 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 basis and findings for the determination. Not later than one year after making a determination to expand the pilot program under paragraph (1), the Secretary shall issue final regulations to implement this subtitle. Except as provided in subparagraph (B), paragraphs (3), (7), and
(8)of subsection
(a)shall apply to covered land offered for lease under this subsection in the same manner as such paragraphs apply to sites offered for lease under subsection (a). The requirement under subsection (a)(3) that a lease be sold on a competitive basis shall not apply to a lease issued under this subsection if the Secretary determines that— no competitive interest exists for the covered land offered for lease; the public interest would not be served by the competitive issuance of a lease with respect to such covered land; or the lease is for a purpose described in paragraph (7)(A)(ii). Subject to section 324, the Secretary shall establish fees, bonuses, or other payments (except rental payments) to ensure a fair return to the United States for any lease issued under this subsection. The Secretary may grant credit toward any bonus bid for a qualified expenditure by the holder of a lease described in paragraph (7)(A)(ii) in any competitive lease sale held for a long-term lease of the covered land that is the subject of the lease described in such paragraph. Royalties and other terms and conditions of a lease issued under this subsection 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. Effective on the first day of the first month beginning after the date of enactment of this Act and each year thereafter, the amount of royalties or other terms and conditions subject to readjustment under clause
(i)shall be adjusted to reflect changes for the 12-month period ending on the most recent date for which data are available in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. Except as provided in clause (ii), a lease issued under this subsection shall be for— an initial term of 25 years; and any additional period after the initial 25-year term during which electricity is being produced annually in commercial quantities from the lease. In the case of a lease issued under this subsection for the placement and operation of a meteorological or data collection facility or for the development or demonstration of a new wind or solar energy technology, such lease shall have a term of not more than 5 years. The Secretary of the Interior shall establish terms and conditions for the issuance, transfer, renewal, suspension, and cancellation of a lease issued under this subsection. Each lease issued under this subsection shall provide for readjustment in accordance with subparagraph (A). The Secretary shall issue regulations regarding surface-disturbing activities conducted under any lease issued under this subsection, including any reclamation and other actions necessary to conserve and to offset impacts to surface resources. The Secretary shall require that the holder of a lease issued under this subsection— furnish a surety bond or other form of security, as prescribed by the Secretary; provide for the reclamation and restoration of the covered land that is the subject of the lease; and comply with such other requirements as the Secretary considers 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 subsection.
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