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115th Congress     }                                {   Rept. 115-321
                        HOUSE OF REPRESENTATIVES
 1st Session       }                                {           Part 1
======================================================================



 
          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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \6\43 C.F.R. Sec. 2805.15.
---------------------------------------------------------------------------
    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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              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
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2017   2018   2019   2020   2021   2022   2023   2024   2025   2026   2027  2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.......................      0     20     30     35     41     44     47     48     49     50     51       170        415
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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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