H. Rept. 115-321 - PUBLIC LAND RENEWABLE ENERGY DEVELOPMENT ACT OF 2017115th Congress (2017-2018)
Committee Report
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115th Congress } { Rept. 115-321
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
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PUBLIC LAND RENEWABLE ENERGY DEVELOPMENT ACT OF 2017
_______
September 21, 2017.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Bishop of Utah, from the Committee on Natural Resources, submitted
the following
R E P O R T
[To accompany H.R. 825]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 825) to promote the development of renewable
energy on public land, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend 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 2017''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Covered land.--The term ``covered land'' means land that
is--
(A) public land 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 land.
(4) Fund.--The term ``Fund'' means the Renewable Energy
Resource Conservation Fund established by section 7(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.
(6) Public land.--The term ``public land'' has the meaning
given the term ``public lands'' 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. 3. EXTENSION OF FUNDING FOR IMPLEMENTATION OF GEOTHERMAL STEAM ACT
OF 1970.
(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 2018 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. 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.
(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 enactment of this Act.
(B) Solar energy.--For solar energy, 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.
(C) Wind energy.--For wind energy, the Secretary
shall establish priority areas as soon as practicable,
but not later than 3 years, after the date of 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 frequently than once every 10
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
projects 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
projects 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.--A requirement to prepare a
supplement to a programmatic environmental impact statement under this
section shall not result in any delay in processing an 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
transmission);
(2) likely to avoid or minimize conflict with habitat for
animals and plants, recreation, 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)).
(g) Removal From Classification.--In carrying out subsections (a)
through (e), if the Secretary determines an area previously suited for
development should be removed from priority or variance classification,
not later than 90 days after the date of the determination, the
Secretary shall submit to Congress a report on the determination.
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.).
(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 program to
improve Federal permit coordination with respect to renewable energy
projects on covered land.
(b) Memorandum of Understanding.--
(1) In general.--Not later than 180 days after the date of
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,
with--
(A) the Secretary of Agriculture; and
(B) the Assistant Secretary of the Army for Civil
Works.
(2) State participation.--The Secretary may request the
Governor of any interested State 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 an employee who has 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 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) planning under section 14 of the National Forest
Management Act of 1976 (16 U.S.C. 472a);
(E) the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq.);
(F) the Migratory Bird Treaty Act (16 U.S.C. 703 et
seq.); and
(G) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
(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, including
inspection and enforcement relating to renewable energy project
development on covered land, 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) Renewable Energy Coordination Offices.--In carrying out the
program established under subsection (a), the Secretary may--
(1) establish additional Bureau of Land Management Renewable
Energy Coordination Offices; or
(2) temporarily assign the qualified staff designated under
subsection (c) to a State, district, or field office of the
Bureau of Land Management to expedite the permitting of
renewable energy projects.
(f) Report to Congress.--
(1) In general.--Not later than February 1 of the first
fiscal year beginning after the date of 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. DISPOSITION OF REVENUES.
(a) Disposition of Revenues.--Beginning on January 1, 2018, without
further appropriation or fiscal year limitation, 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--
(1) 25 percent shall be paid by the Secretary of the Treasury
to the State within the boundaries of which the revenue is
derived;
(2) 25 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) to be deposited in the Treasury and be made available to
the Secretary to carry out the program established by section
6, 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, to expediting the issuance of
permits required for the development of renewable energy
projects in the States from which the revenues are derived--
(A) 25 percent for each of fiscal years 2018 through
2027;
(B) 20 percent for each of fiscal years 2028 through
2032;
(C) 15 percent for each of fiscal years 2033 through
2037; and
(D) 10 percent for fiscal year 2038 and each fiscal
year thereafter; and
(4) to be deposited in the Renewable Energy Resource
Conservation Fund established by subsection (c)--
(A) 25 percent for each of fiscal years 2018 through
2027;
(B) 30 percent for each of fiscal years 2028 through
2032;
(C) 35 percent for each of fiscal years 2033 through
2037; and
(D) 40 percent for fiscal year 2038 and each fiscal
year thereafter.
(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'', to be administered by the Secretary, in consultation
with the Secretary of Agriculture.
(2) Use of funds.--The Secretary may make funds in the Fund
available to Federal, State, 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) water resources 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 subparagraph (B) of paragraph
(2).
(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, 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. 8. SAVINGS CLAUSE.
Notwithstanding any other provision of this Act, the Secretary shall
continue to manage public land 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. 825 is to promote the development of
renewable energy on public land.
Background and Need for Legislation
Renewable energy generation comprises one of the many
facets of the Committee on Natural Resources' ``all-of-the-
above'' energy strategy to ensure American energy independence.
As such, the Committee supports expanding access for renewable
energy on onshore federal lands. H.R. 825 encourages the
development of renewable generation on federal land by
expediting the permitting process, while ensuring States and
their respective taxpayers receive fair value for the energy
produced.
The Bureau of Land Management (BLM) has identified 20.6
million acres of public land with wind potential and over 19
million acres with solar potential.\1\ However, the current
lack of a regulatory and statutory structure governing
renewable access to federal land has hindered the rapid
development of renewables, reflected by the fact that only 1.4%
of installed wind energy capacity in 2012 was found on public
lands.\2\
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\1\U.S. Department of Energy, WINDExchange, available at https://
apps2.eere.energy.gov/wind/windexchange/wind-projects-public-lands.asp;
U.S. Bureau of Land Management, Solar Energy, available at https://
www.blm.gov/programs/energy-and-minerals/renewable-energy/solar-energy.
\2\American Wind Energy Association, Public Lands and Wind Energy,
available at http://www.awea.org/Issues/Content.aspx?ItemNumber=858.
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Unlike the statutory leasing processes governing oil and
gas,\3\ or geothermal production,\4\ there exists no leasing
authority to encourage the use of federal land for wind or
solar energy. Rather, a land use planning statute, the Federal
Land Policy and Management Act of 1976 (FLPMA, 43 U.S.C. 1701
et seq.), governs the process to develop wind and solar on
federal land. Specifically, Title V of FLPMA authorizes the
acquisition of rights-of-way over federal lands for ``systems
for generation, transmission, and distribution of electric
energy.''\5\
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\3\Mineral Leasing Act of 1920, 30 U.S.C. Sec. 181 et seq.
\4\Geothermal Steam Act of 1970, 30 U.S.C. Sec. 1001 et seq.
\5\43 U.S.C. Sec. 1761(a)(4).
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Applying for a right-of-way is an often lengthy and
cumbersome process requiring environmental review under the
National Environmental Policy Act of 1969 (NEPA, 42 U.S.C. 4321
et seq.). Furthermore, BLM retains many rights over the land
once a right-of-way has been authorized. For instance, BLM may
access the lands covered by the right-of-way at any time, may
change the terms and conditions of the right-of-way pending
future regulatory or statutory changes, or require common use
of the land.\6\ In fact, holders of rights-of-way typically
have less control over the rented land than would a lessee
seeking the production of natural resources.
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\6\43 C.F.R. Sec. 2805.15.
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One additional concern is the lack of any revenue structure
that would ensure a fair return to the States and counties
affected by the development of renewable generation. In
contrast, geothermal currently has a revenue structure ensuring
fair payment to States and counties, and rental fees paid by
renewable developers are returned directly to the U.S.
Treasury.
The purposes of H.R. 825 are two-fold: first, to provide
certainty to renewable developers navigating the right-of-way
process on federal land; and second, to establish a fair
revenue structure that benefits the States and counties
affected by renewable development.
H.R. 825 achieves certainty for developers by limiting the
environmental review required by NEPA through the use of
programmatic environmental impact statements (PEIS), which
exist for each type of renewable generation. This bill requires
BLM to review and update each PEIS affecting geothermal, wind,
and solar development on federal land once every ten years, and
grant interested developers the ability to rely on the
respective PEIS. Developers would not need to initiate
environmental review for projects that would be covered by such
PEIS.
H.R. 825 also imposes a new revenue structure to ensure a
fair return to the States and counties affected by renewable
energy development. Bonus bids, rentals, fees, or other
payments returned to the federal government under a right-of-
way, permit or lease will be disbursed in the following manner:
25% to the affected State; 25% to the affected counties; 25% to
the U.S. Treasury; and 25% to a new Fund--the ``Renewable
Energy Resource Conservation Fun''. After 2027, the
disbursements to the Treasury and the Fund change and are as
follows: 20% to the Treasury and 30% to the Fund from 2028
through 2032; 15% to the Treasury and 35% to the Fund from 2033
through 2037; and 10% to the Treasury and 40% to the Fund from
2028 onward.
The bill establishes the Fund to mitigate the impacts of
renewable development. Specifically, the Fund can be used to
restore and protect fish and wildlife habitat and water
resources, and to improve recreational access to federal land.
Payments from the Fund cannot be used to purchase real property
for purposes not authorized in the bill. Finally, the Secretary
of the Interior must issue a report to Congress regarding the
amount collected in the Fund, how payments from the Fund are
expended, and the amount remaining in the Fund at the end of
each fiscal year.
Committee Action
H.R. 825 was introduced on February 2, 2017, by Congressman
Paul A. Gosar (R-AZ). The bill was referred to the Committee on
Natural Resources, and in addition to the Committee on
Agriculture. Within the Committee on Natural Resources, the
bill was referred to the Subcommittee on Energy and Mineral
Resources. On July 25, 2017, the Natural Resources Committee
met to consider the bill. The Subcommittee was discharged by
unanimous consent. Congressman Paul A. Gosar offered an
amendment designated 001; it was adopted by unanimous consent.
No further amendments were offered, and the bill, as amended,
was ordered favorably reported to the House of Representatives
by unanimous consent on July 26, 2017.
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
1. Cost of Legislation and the Congressional Budget Act of
1974. 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 enclosed cost estimate for
the bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 18, 2017.
Hon. Rob Bishop,
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. 825, the Public
Land Renewable Energy Development Act of 2017.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jeff LaFave.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 825--Public Land Renewable Energy Development Act of 2017
Summary: H.R. 825 would direct the Secretary of the
Interior to spend, without further appropriation, all proceeds
from geothermal, wind, and solar energy production on federal
lands. Under current law, most of the proceeds from those
activities are deposited in the general fund of the Treasury.
The bill also would require the Secretary to identify priority
areas on federal lands for the development of geothermal and
wind energy.
CBO estimates that enacting the bill would increase direct
spending by $415 million over the 2018-2027 period; therefore,
pay-as-you-go procedures apply. Enacting the bill would not
affect revenues. In addition, CBO estimates that implementing
H.R. 825 would cost $5 million over the 2018-2022 period; such
spending would be subject to the availability of appropriated
funds.
CBO estimates that enacting H.R. 825 would not increase net
direct spending or on-budget deficits by more than $5 billion
in any of the four consecutive 10-year periods beginning in
2028.
H.R. 825 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 825 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2017-2022 2017-2027
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INCREASES IN DIRECT SPENDING
Spending of Wind and Solar Proceeds:
Estimated Budget Authority....................... 0 22 32 35 40 42 44 45 46 47 48 171 399
Estimated Outlays................................ 0 17 27 32 37 40 43 44 45 46 47 153 378
Spending of Geothermal Proceeds:
Estimated Budget Authority....................... 0 3 3 3 4 4 4 4 4 4 4 17 37
Estimated Outlays................................ 0 3 3 3 4 4 4 4 4 4 4 17 37
Total Changes:
Estimated Budget Authority................... 0 25 35 38 44 46 48 49 50 51 52 188 436
Estimated Outlays............................ 0 20 30 35 41 44 47 48 49 50 51 170 415
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................ 0 1 1 1 1 1 0 0 0 0 0 5 5
Estimated Outlays.................................... 0 1 1 1 1 1 0 0 0 0 0 5 5
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Note: Components may not sum to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted in 2018 and that the necessary
amounts will be available for each fiscal year. Estimated
outlays are based on historical spending patterns for similar
activities.
Direct spending
CBO estimates that enacting H.R. 825 would increase direct
spending by $415 million over the 2018-2027 period.
Spending of Wind and Solar Proceeds. The bill would direct
the Secretary to spend all proceeds from the development of
wind and solar energy on federal lands. Under current law, CBO
estimates that those proceeds will total roughly $400 million
over the 2018-2027 period and under current law will be
deposited in the general fund of the Treasury and become
available to be spent only if appropriated.
Under the bill, the state and the county where the energy
is produced would each receive a payment equal to 25 percent of
the total proceeds. CBO estimates that those payments would
total $197 million over the next 10 years. The remaining 50
percent of the proceeds would be split evenly between two funds
established under the bill. One fund would be used to process
permits for the development of renewable energy. CBO estimates
that spending from that fund would total $97 million over the
next 10 years. The other fund (the Renewable Energy Resource
Conservation Fund) would be used to restore and protect fish
and wildlife habitat, water resources, and recreational access
in areas affected by renewable energy development. CBO
estimates that spending from that fund would total $84 million
over the next 10 years; those outlays would include the
spending of a portion of the interest credited to unspent
amounts in that fund.
Spending of geothermal proceeds. CBO estimates that
proceeds from geothermal energy leases on federal lands will
total $148 million over the 2018-2027 period. Under current
law, the Secretary distributes payments equal to 75 percent of
those amounts to the states and counties where the geothermal
resource is developed. The remaining 25 percent of proceeds are
deposited in the Treasury and can be spent only if
appropriated. Under the bill, the Secretary would be authorized
to spend that remaining 25 percent of the proceeds to cover
administrative costs associated with leasing federal lands for
the development of geothermal resources. Thus, CBO estimates
that enacting the bill would increase direct spending by $37
million over the next 10 years.
Spending subject to appropriation
H.R. 825 would require the Secretary of the Interior to
identify priority areas for the development of geothermal and
wind energy. Based on information regarding the cost of
conducting similar activities, CBO estimates that implementing
the bill would cost $5 million over the 2018-2022 period.
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 the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 825, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON JULY 26, 2017
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By fiscal year, in millions of dollars--
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2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2017-2022 2017-2027
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NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact....................... 0 20 30 35 41 44 47 48 49 50 51 170 415
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Increase in long term direct spending and deficits: CBO
estimates that enacting the legislation would not increase net
direct spending or on-budget deficits by more than $5 billion
in any of the four consecutive 10-year periods beginning in
2028.
Intergovernmental and private-sector impact: H.R. 825
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would benefit state and local
governments because it would require the federal government to
share revenues generated by renewable energy production with
state and local governments. Any costs incurred by public
entities would result from voluntary commitments.
Estimate prepared by: Federal costs: Jeff LaFave; Impact on
state, local, and tribal governments: Jon Sperl; Impact on the
private sector: Amy Petz.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to promote the development of
renewable energy on public land.
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.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Compliance With H. Res. 5
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of 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
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
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 2018
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.
* * * * * * *
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