§ 1004. Rents and royalties

Footnotes

1. 1 So in original. The semicolon probably should be a period.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1970

   Geothermal Steam Act of 1970

   Pub. L. 91–581 § 5 · 84 Stat. 1566

   Enacted · 30 U.S.C. § 1004

   Pub. L. 91–581, § 5, Dec. 24, 1970, 84 Stat. 1567

   Source evidence

   Code source credit
   Pub. L. 91–581, § 5, Dec. 24, 1970, 84 Stat. 1567

   Enacted provision · exact public law section
   Sec. 5. Geothermal leases shall provide for— Lease provisions. Royalties. (a) a royalty of not less than 10 per centum or more than 15 per centum of the amount or value of steam, or any other form of heat or energy derived from production under the lease and sold or utilized by the lessee or reasonably, susceptible to sale or utilization by the lessee; (b) a royalty of not more than 5 per centum of the value of any byproduct derived from production under the lease and sold or utilized or reasonably susceptible of sale or utilization by the lessee, except that as to any byproduct which is a mineral named in section 1 of the Mineral Leasing Act of February 25, 1920, as amended (30 U.S.C. 181), the rate of royalty for such mineral 41 Stat. 437. shall be the same as that provided in that Act and the maximum rate of royalty for such mineral shall not exceed the maximum royalty applicable under that Act; (c) payment in advance of an annual rental of not less than $1 Rent. per acre or fraction thereof for each year of the lease. If there is no well on the leased lands capable of producing geothermal resources in commercial quantities, the failure to pay rental on or before the anniversary date shall terminate the lease by operation of law: Provided, however, That whenever the Secretary discovers that the rental payment due under a lease is paid timely but the amount of the payment is deficient because of an error or other reason and the deficiency is nominal, as determined by the Secretary pursuant to regulations prescribed by him, he shall notify the lessee of the deficiency and such lease shall not automatically terminate unless the lessee fails to pay the deficiency within the period prescribed in the notice: Provided further, That, where any lease has been terminated automatically by operation of law under this section for failure to pay rental timely and it is shown to the satisfaction of the Secretary of the Interior that the failure to pay timely the lease rental was justifiable or not due to a lack of reasonable diligence, he in his judgment may reinstate the lease if— (1) a petition for reinstatement, together with the required rental, is filed with the Secretary of the Interior; and (2) no valid lease has been issued affecting any of the lands in the terminated lease prior to the filing of the petition for reinstatement; and (d) a minimum royalty of $2 per acre or fraction thereof in lieu of rental payable at the expiration of each lease year for each producing lease, commencing with the lease year beginning on or after the commencement of production in commercial quantities. For the purpose of determining royalties hereunder the value of any geothermal steam and byproduct used by the lessee and not sold and reasonably susceptible of sale shall be determined by the Secretary, who shall take into consideration the cost of exploration and production and the economic value of the resource in terms of its ultimate utilization.

2. 2005

   Energy Policy Act of 2005

   Pub. L. 109–58 title II · 119 Stat. 594

   1. Inserted · 30 U.S.C. § 1004

      Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), inserted section catchline

   2. Amended · 30 U.S.C. § 1004

      Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), designated existing provisions as subsec. (a)

   3. Inserted · 30 U.S.C. § 1004

      Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), inserted heading

   4. Redesignated · 30 U.S.C. § 1004

      Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), redesignated subpars. (1) and (2) of par. (c) as subpars. (A) and (B), respectively

   5. Redesignated · 30 U.S.C. § 1004

      Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), redesignated pars. (a) to (d) as pars. (1) to (4), respectively, of subsec. (a)

   6. Added · 30 U.S.C. § 1004

      Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), added new pars. (1) to (3) of subsec. (a)

   7. Struck · 30 U.S.C. § 1004

      Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), struck out former pars. (1) to (4) of subsec. (a) which related to royalties for amount or value of steam or other form of heat energy, royalty for value of byproducts, payment of annual rental, and royalties in lieu of rentals

   Source evidence

   Code amendment note
   Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), inserted section catchline, designated existing provisions as subsec. (a) and inserted heading, redesignated subpars. (1) and (2) of par. (c) as subpars. (A) and (B), respectively, redesignated pars. (a) to (d) as pars. (1) to (4), respectively, of subsec. (a), added new pars. (1) to (3) of subsec. (a) and struck out former pars. (1) to (4) of subsec. (a) which related to royalties for amount or value of steam or other form of heat energy, royalty for value of byproducts, payment of annual rental, and royalties in lieu of rentals.

   Enacted provision · exact public law
   TITLE II— RENEWABLE ENERGY Subtitle A— General Provisions SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES. (a) Resource Assessment.— Not Deadlines. later than 6 months after the date of enactment of this Act, and each year thereafter, the Secretary shall review the available assessments of renewable energy resources within the United States, including solar, wind, biomass, ocean (including tidal, wave, current, and thermal), geothermal, and hydroelectric energy resources, and undertake new assessments as necessary, taking into account changes in market conditions, available technologies, and other relevant factors. (b) Contents of Reports.— Not later than 1 year after the date of enactment of this Act, and each year thereafter, the Secretary shall publish a report based on the assessment under subsection (a). The report shall contain— (1) a detailed inventory describing the available amount and characteristics of the renewable energy resources; and (2) such other information as the Secretary believes would be useful in developing such renewable energy resources, including descriptions of surrounding terrain, population and load centers, nearby energy infrastructure, location of energy and water resources, and available estimates of the costs needed to develop each resource, together with an identification of any barriers to providing adequate transmission for remote sources of renewable energy resources to current and emerging markets, recommendations for removing or addressing such barriers, and ways to provide access to the grid that do not unfairly disadvantage renewable or other energy producers. (c) Authorization of Appropriations.— For 42 USC 13311 note. the purposes of this section, there are authorized to be appropriated to the Secretary $10,000,000 for each of fiscal years 2006 through 2010. SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE. (a) Incentive Payments.— Section 1212(a) of the Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is amended— (1) by striking the last sentence; (2) by designating the first, second, and third sentences as paragraphs (1), (2), and (3), respectively; (3) in paragraph (3) (as so designated), by striking “and which satisfies” and all that follows through “deems necessary”; and (4) by adding at the end the following: “(4) (A) Subject to subparagraph (B), if there are insufficient appropriations to make full payments for electric production from all qualified renewable energy facilities for a fiscal year, the Secretary shall assign— “(i) 60 percent of appropriated funds for the fiscal year to facilities that use solar, wind, ocean (including tidal, wave, current, and thermal), geothermal, or closed-loop (dedicated energy crops) biomass technologies to generate electricity; and “(ii) 40 percent of appropriated funds for the fiscal year to other projects. “(B) After submitting to Congress an explanation of the reasons for the alteration, the Secretary may alter the percentage requirements of subparagraph (A).” . (b) Qualified Renewable Energy Facility.— Section 1212(b) of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended— (1) by striking “a State or any political” and all that follows through “nonprofit electrical cooperative” and inserting “a not-for-profit electric cooperative, a public utility described in section 115 of the Internal Revenue Code of 1986, a State, Commonwealth, territory, or possession of the United States, or the District of Columbia, or a political subdivision thereof, an Indian tribal government or subdivision thereof, or a Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602)),”; and (2) by inserting “landfill gas, livestock methane, ocean (including tidal, wave, current, and thermal),” after “wind, biomass,”. (c) Eligibility Window.— Section 1212(c) of the Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by striking “during the 10-fiscal year period beginning with the first full fiscal year occurring after the enactment of this section” and inserting “before October 1, 2016”. (d) Payment Period.— Section 1212(d) of the Energy Policy Act of 1992 (42 U.S.C. 13317(d)) is amended in the second sentence by inserting “, or in which the Secretary determines that all necessary Federal and State authorizations have been obtained to begin construction of the facility” after “eligible for such payments”. (e) Amount of Payment.— Section 1212(e)(1) of the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended in the first sentence by inserting “landfill gas, livestock methane, ocean (including tidal, wave, current, and thermal),” after “wind, biomass,”. (f) Termination of Authority.— Section 1212(f) of the Energy Policy Act of 1992 (42 U.S.C. 13317(f)) is amended by striking “the expiration of” and all that follows through “of this section” and inserting “September 30, 2026”. (g) Authorization of Appropriations.— Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is amended by striking subsection (g) and inserting the following: “(g) Authorization of Appropriations.— There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2006 through 2026, to remain available until expended.” . SEC. 203. FEDERAL PURCHASE REQUIREMENT. (a) Requirement.— The President. President, acting through the Secretary, shall seek to ensure that, to the extent economically feasible and technically practicable, of the total amount of electric energy the Federal Government consumes during any fiscal year, the following amounts shall be renewable energy: (1) Not less than 3 percent in fiscal years 2007 through 2009. (2) Not less than 5 percent in fiscal years 2010 through 2012. (3) Not less than 7.5 percent in fiscal year 2013 and each fiscal year thereafter. (b) Definitions.— In this section: (1) Biomass.— The term “biomass” means any lignin waste material that is segregated from other waste materials and is determined to be nonhazardous by the Administrator of the Environmental Protection Agency and any solid, nonhazardous, cellulosic material that is derived from— (A) any of the following forest-related resources: mill residues, precommercial thinnings, slash, and brush, or nonmerchantable material; (B) solid wood waste materials, including waste pallets, crates, dunnage, manufacturing and construction wood wastes (other than pressure-treated, chemically-treated, or painted wood wastes), and landscape or right-of-way tree trimmings, but not including municipal solid waste (garbage), gas derived from the biodegradation of solid waste, or paper that is commonly recycled; (C) agriculture wastes, including orchard tree crops, vineyard, grain, legumes, sugar, and other crop by-products or residues, and livestock waste nutrients; or (D) a plant that is grown exclusively as a fuel for the production of electricity. (2) Renewable energy.— The term “renewable energy” means electric energy generated from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project. (c) Calculation.— For purposes of determining compliance with the requirement of this section, the amount of renewable energy shall be doubled if— (1) the renewable energy is produced and used on-site at a Federal facility; (2) the renewable energy is produced on Federal lands and used at a Federal facility; or (3) the renewable energy is produced on Indian land as defined in title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.) and used at a Federal facility. (d) Report.— Not later than April 15, 2007, and every 2 years thereafter, the Secretary shall provide a report to Congress on the progress of the Federal Government in meeting the goals established by this section. SEC. 204. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS. (a) In General.— Subchapter VI of chapter 31 of title 40, United States Code, is amended by adding at the end the following: “§ 3177. Use of photovoltaic energy in public buildings “(a) Photovoltaic Energy Commercialization Program.— “(1) In general.— The Administrator of General Services may establish a photovoltaic energy commercialization program for the procurement and installation of photovoltaic solar electric systems for electric production in new and existing public buildings. “(2) Purposes.— The purposes of the program shall be to accomplish the following: “(A) To accelerate the growth of a commercially viable photovoltaic industry to make this energy system available to the general public as an option which can reduce the national consumption of fossil fuel. “(B) To reduce the fossil fuel consumption and costs of the Federal Government. “(C) To attain the goal of installing solar energy systems in 20,000 Federal buildings by 2010, as contained in the Federal Government’s Million Solar Roof Initiative of 1997. “(D) To stimulate the general use within the Federal Government of life-cycle costing and innovative procurement methods. “(E) To develop program performance data to support policy decisions on future incentive programs with respect to energy. “(3) Acquisition of photovoltaic solar electric systems.— “(A) In general.— The program shall provide for the acquisition of photovoltaic solar electric systems and associated storage capability for use in public buildings. “(B) Acquisition levels.— The acquisition of photovoltaic electric systems shall be at a level substantial enough to allow use of low-cost production techniques with at least 150 megawatts (peak) cumulative acquired during the 5 years of the program. “(4) Administration.— The Administrator shall administer the program and shall— “(A) issue such rules and regulations as may be appropriate to monitor and assess the performance and operation of photovoltaic solar electric systems installed pursuant to this subsection; “(B) Reports. develop innovative procurement strategies for the acquisition of such systems; and “(C) transmit to Congress an annual report on the results of the program. “(b) Photovoltaic Systems Evaluation Program.— “(1) In general.— Not Deadline. later than 60 days after the date of enactment of this section, the Administrator shall establish a photovoltaic solar energy systems evaluation program to evaluate such photovoltaic solar energy systems as are required in public buildings. “(2) Program requirement.— In evaluating photovoltaic solar energy systems under the program, the Administrator shall ensure that such systems reflect the most advanced technology. “(c) Authorization of Appropriations.— “(1) Photovoltaic energy commercialization program.— There are authorized to be appropriated to carry out subsection (a) $50,000,000 for each of fiscal years 2006 through 2010. Such sums shall remain available until expended. “(2) Photovoltaic systems evaluation program.— There are authorized to be appropriated to carry out subsection (b) $10,000,000 for each of fiscal years 2006 through 2010. Such sums shall remain available until expended.” . (b) Conforming Amendment.— The table of sections for the National Energy Conservation Policy Act is amended by inserting after the item relating to section 569 the following: “Sec. 570.  Use of photovoltaic energy in public buildings.”. SEC. 205. BIOBASED PRODUCTS.   Section 9002(c)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended by inserting “or such items that comply with the regulations issued under section 103 of Public Law 100–556 (42 U.S.C. 6914b–1)” after “practicable”. SEC. 206. RENEWABLE ENERGY SECURITY. (a) Weatherization Assistance.— Section 415(c) of the Energy Conservation and Production Act (42 U.S.C. 6865(c)) is amended— (1) in paragraph (1), by striking “in paragraph (3)” and inserting “in paragraphs (3) and (4)”; (2) in paragraph (3), by striking “$2,500 per dwelling unit average provided in paragraph (1)” and inserting “dwelling unit averages provided in paragraphs (1) and (4)”; and (3) by adding at the end the following new paragraphs: “(4) The expenditure of financial assistance provided under this part for labor, weatherization materials, and related matters for a renewable energy system shall not exceed an average of $3,000 per dwelling unit. “(5) (A) Regulations. The Secretary shall by regulations— “(i) establish the criteria which are to be used in prescribing performance and quality standards under paragraph (6)(A)(ii) or in specifying any form of renewable energy under paragraph (6)(A)(i)(I); and “(ii) establish a procedure under which a manufacturer of an item may request the Secretary to certify that the item will be treated, for purposes of this paragraph, as a renewable energy system. “(B) The Secretary shall make a final determination with respect to any request filed under subparagraph (A)(ii) within 1 year after the filing of the request, together with any information required to be filed with such request under subparagraph (A)(ii). “(C) Reports. Each month the Secretary shall publish a report of any request under subparagraph (A)(ii) which has been denied during the preceding month and the reasons for the denial. “(D) The Secretary shall not specify any form of renewable energy under paragraph (6)(A)(i)(I) unless the Secretary determines that— “(i) there will be a reduction in oil or natural gas consumption as a result of such specification; “(ii) such specification will not result in an increased use of any item which is known to be, or reasonably suspected to be, environmentally hazardous or a threat to public health or safety; and “(iii) available Federal subsidies do not make such specification unnecessary or inappropriate (in the light of the most advantageous allocation of economic resources). “(6) In this subsection— “(A) the term ‘renewable energy system’ means a system which— “(i) when installed in connection with a dwelling, transmits or uses— “(I) solar energy, energy derived from the geothermal deposits, energy derived from biomass, or any other form of renewable energy which the Secretary specifies by regulations, for the purpose of heating or cooling such dwelling or providing hot water or electricity for use within such dwelling; or “(II) wind energy for nonbusiness residential purposes; “(ii) meets the performance and quality standards (if any) which have been prescribed by the Secretary by regulations; “(iii) in the case of a combustion rated system, has a thermal efficiency rating of at least 75 percent; and “(iv) in the case of a solar system, has a thermal efficiency rating of at least 15 percent; and “(B) the term ‘biomass’ means any organic matter that is available on a renewable or recurring basis, including agricultural crops and trees, wood and wood wastes and residues, plants (including aquatic plants), grasses, residues, fibers, and animal wastes, municipal wastes, and other waste materials.” . (b) District Heating and Cooling Programs.— Section 172 of the Energy Policy Act of 1992 (42 U.S.C. 13451 note) is amended— (1) in subsection (a)— (A) by striking “and” at the end of paragraph (3); (B) by striking the period at the end of paragraph (4) and inserting “; and”; and (C) by adding at the end the following new paragraph: “(5) evaluate the use of renewable energy systems (as such term is defined in section 415(c) of the Energy Conservation and Production Act (42 U.S.C. 6865(c))) in residential buildings.” ; and (2) in subsection (b), by striking “this Act” and inserting “the Energy Policy Act of 2005”. (c) Rebate Program.— (1) Establishment.— The Secretary shall establish a program providing rebates for consumers for expenditures made for the installation of a renewable energy system in connection with a dwelling unit or small business. (2) Amount of rebate.— Rebates provided under the program established under paragraph (1) shall be in an amount not to exceed the lesser of— (A) 25 percent of the expenditures described in paragraph (1) made by the consumer; or (B) $3,000. (3) Definition.— For purposes of this subsection, the term “renewable energy system” has the meaning given that term in section 415(c)(6)(A) of the Energy Conservation and Production Act (42 U.S.C. 6865(c)(6)(A)), as added by subsection (a)(3) of this section. (4) Authorization of appropriations.— There are authorized to be appropriated to the Secretary for carrying out this subsection, to remain available until expended— (A) $150,000,000 for fiscal year 2006; (B) $150,000,000 for fiscal year 2007; (C) $200,000,000 for fiscal year 2008; (D) $250,000,000 for fiscal year 2009; and (E) $250,000,000 for fiscal year 2010. (d) Renewable Fuel Inventory.— Not Deadline. Reports. later than 180 days after the date of enactment of this Act, the Secretary shall transmit to Congress a report containing— (1) an inventory of renewable fuels available for consumers; and (2) a projection of future inventories of renewable fuels based on the incentives provided in this section. SEC. 207. INSTALLATION OF PHOTOVOLTAIC SYSTEM.   There Appropriation authorization. is authorized to be appropriated to the General Services Administration to install a photovoltaic system, as set forth in the Sun Wall Design Project, for the headquarters building of the Department of Energy located at 1000 Independence Avenue Southwest in the District of Columbia, commonly know as the Forrestal Building, $20,000,000 for fiscal year 2006. Such sums shall remain available until expended. SEC. 208. SUGAR CANE ETHANOL PROGRAM. (a) Definition of Program.— In this section, the term “program” means the Sugar Cane Ethanol Program established by subsection (b). (b) Establishment.— There is established within the Environmental Protection Agency a program to be known as the “Sugar Cane Ethanol Program”. (c) Project.— (1) In general.— Subject to the availability of appropriations under subsection (d), in carrying out the program, the Administrator of the Environmental Protection Agency shall establish a project that is— (A) carried out in multiple States— (i) in each of which is produced cane sugar that is eligible for loans under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), or a similar subsequent authority; and (ii) at the option of each such State, that have an incentive program that requires the use of ethanol in the State; and (B) designed to study the production of ethanol from cane sugar, sugarcane, and sugarcane byproducts. (2) Requirements.— A project described in paragraph (1) shall— (A) be limited to sugar producers and the production of ethanol in the States of Florida, Louisiana, Texas, and Hawaii, divided equally among the States, to demonstrate that the process may be applicable to cane sugar, sugarcane, and sugarcane byproducts; (B) include information on the ways in which the scale of production may be replicated once the sugar cane industry has located sites for, and constructed, ethanol production facilities; and (C) not last more than 3 years. (d) Authorization of Appropriations.— There is authorized to be appropriated to carry out this section $36,000,000, to remain available until expended. SEC. 209. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.   The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended in title VI by adding at the end the following: “SEC. 609. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS. “(a) Definitions.— In this section: “(1) The term ‘eligible grantee’ means a local government or municipality, peoples’ utility district, irrigation district, and cooperative, nonprofit, or limited-dividend association in a rural area. “(2) The term ‘incremental hydropower’ means additional generation achieved from increased efficiency after January 1, 2005, at a hydroelectric dam that was placed in service before January 1, 2005. “(3) The term ‘renewable energy’ means electricity generated from— “(A) a renewable energy source; or “(B) hydrogen, other than hydrogen produced from a fossil fuel, that is produced from a renewable energy source. “(4) The term ‘renewable energy source’ means— “(A) wind; “(B) ocean waves; “(C) biomass; “(D) solar; “(E) landfill gas; “(F) incremental hydropower; “(G) livestock methane; or “(H) geothermal energy. “(5) The term ‘rural area’ means a city, town, or unincorporated area that has a population of not more than 10,000 inhabitants. “(b) Grants.— The Secretary, in consultation with the Secretary of Agriculture and the Secretary of the Interior, may provide grants under this section to eligible grantees for the purpose of— “(1) increasing energy efficiency, siting or upgrading transmission and distribution lines serving rural areas; or “(2) providing or modernizing electric generation facilities that serve rural areas. “(c) Grant Administration.— (1) The Secretary shall make grants under this section based on a determination of cost-effectiveness and the most effective use of the funds to achieve the purposes described in subsection (b). “(2) For each fiscal year, the Secretary shall allocate grant funds under this section equally between the purposes described in paragraphs (1) and (2) of subsection (b). “(3) In making grants for the purposes described in subsection (b)(2), the Secretary shall give preference to renewable energy facilities. “(d) Authorization of Appropriations.— There is authorized to be appropriated to the Secretary to carry out this section $20,000,000 for each of fiscal years 2006 through 2012.” . SEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, AND OTHER COMMERCIAL PURPOSES. (a) Definitions.— In this section: (1) Biomass.— The term “biomass” means nonmerchantable materials or precommercial thinnings that are byproducts of preventive treatments, such as trees, wood, brush, thinnings, chips, and slash, that are removed— (A) to reduce hazardous fuels; (B) to reduce or contain disease or insect infestation; or (C) to restore forest health. (2) Indian tribe.— The term “Indian tribe” has the meaning given the term in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)). (3) Nonmerchantable.— For purposes of subsection (b), the term “nonmerchantable” means that portion of the byproducts of preventive treatments that would not otherwise be used for higher value products. (4) Person.— The term “person” includes— (A) an individual; (B) a community (as determined by the Secretary concerned); (C) an Indian tribe; (D) a small business or a corporation that is incorporated in the United States; and (E) a nonprofit organization. (5) Preferred community.— The term “preferred community” means— (A) any Indian tribe; (B) any town, township, municipality, or other similar unit of local government (as determined by the Secretary concerned) that— (i) has a population of not more than 50,000 individuals; and (ii) the Secretary concerned, in the sole discretion of the Secretary concerned, determines contains or is located near Federal or Indian land, the condition of which is at significant risk of catastrophic wildfire, disease, or insect infestation or which suffers from disease or insect infestation; or (C) any county that— (i) is not contained within a metropolitan statistical area; and (ii) the Secretary concerned, in the sole discretion of the Secretary concerned, determines contains or is located near Federal or Indian land, the condition of which is at significant risk of catastrophic wildfire, disease, or insect infestation or which suffers from disease or insect infestation. (6) Secretary concerned.— The term “Secretary concerned” means the Secretary of Agriculture or the Secretary of the Interior. (b) Biomass Commercial Use Grant Program.— (1) In general.— The Secretary concerned may make grants to any person in a preferred community that owns or operates a facility that uses biomass as a raw material to produce electric energy, sensible heat, or transportation fuels to offset the costs incurred to purchase biomass for use by such facility. (2) Grant amounts.— A grant under this subsection may not exceed $20 per green ton of biomass delivered. (3) Monitoring of grant recipient activities.— As a condition of a grant under this subsection, the grant recipient shall keep such records as the Secretary concerned may require to fully and correctly disclose the use of the grant funds and all transactions involved in the purchase of biomass. Upon notice by a representative of the Secretary concerned, the grant recipient shall afford the representative reasonable access to the facility that purchases or uses biomass and an opportunity to examine the inventory and records of the facility. (c) Improved Biomass Use Grant Program.— (1) In general.— The Secretary concerned may make grants to persons to offset the cost of projects to develop or research opportunities to improve the use of, or add value to, biomass. In making such grants, the Secretary concerned shall give preference to persons in preferred communities. (2) Selection.— The Secretary concerned shall select a grant recipient under paragraph (1) after giving consideration to— (A) the anticipated public benefits of the project, including the potential to develop thermal or electric energy resources or affordable energy; (B) opportunities for the creation or expansion of small businesses and micro-businesses; (C) the potential for new job creation; (D) the potential for the project to improve efficiency or develop cleaner technologies for biomass utilization; and (E) the potential for the project to reduce the hazardous fuels from the areas in greatest need of treatment. (3) Grant amount.— A grant under this subsection may not exceed $500,000. (d) Authorization of Appropriations.— There are authorized to be appropriated $50,000,000 for each of the fiscal years 2006 through 2016 to carry out this section. (e) Report.— Not later than October 1, 2010, the Secretary of Agriculture, in consultation with the Secretary of the Interior, shall submit to the Committee on Energy and Natural Resources and the Committee on Agriculture, Nutrition, and Forestry of the Senate, and the Committee on Resources, the Committee on Energy and Commerce, and the Committee on Agriculture of the House of Representatives, a report describing the results of the grant programs authorized by this section. The report shall include the following: (1) An identification of the size, type, and use of biomass by persons that receive grants under this section. (2) The distance between the land from which the biomass was removed and the facility that used the biomass. (3) The economic impacts, particularly new job creation, resulting from the grants to and operation of the eligible operations. SEC. 211. SENSE OF CONGRESS REGARDING GENERATION CAPACITY OF ELECTRICITY FROM RENEWABLE ENERGY RESOURCES ON PUBLIC LANDS.   It is the sense of the Congress that the Secretary of the Interior should, before the end of the 10-year period beginning on the date of enactment of this Act, seek to have approved non-hydropower renewable energy projects located on the public lands with a generation capacity of at least 10,000 megawatts of electricity. Subtitle B— Geothermal Energy SEC. 221. SHORT TITLE.   This subtitle may be cited as the “John Rishel Geothermal Steam Act Amendments of 2005”. SEC. 222. COMPETITIVE LEASE SALE REQUIREMENTS.   Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) is amended to read as follows: “SEC. 4. LEASING PROCEDURES. “(a) Nominations.— The Secretary shall accept nominations of land to be leased at any time from qualified companies and individuals under this Act. “(b) Competitive Lease Sale Required.— “(1) In general.— Except as otherwise specifically provided by this Act, all land to be leased that is not subject to leasing under subsection (c) shall be leased as provided in this subsection to the highest responsible qualified bidder, as determined by the Secretary. “(2) Competitive lease sales.— The Secretary shall hold a competitive lease sale at least once every 2 years for land in a State that has nominations pending under subsection (a) if the land is otherwise available for leasing. “(3) Lands subject to mining claims.— Lands that are subject to a mining claim for which a plan of operations has been approved by the relevant Federal land management agency may be available for noncompetitive leasing under this section to the mining claim holder. “(c) Noncompetitive Leasing.— The Secretary shall make available for a period of 2 years for noncompetitive leasing any tract for which a competitive lease sale is held, but for which the Secretary does not receive any bids in a competitive lease sale. “(d) Pending Lease Applications.— “(1) In general.— It shall be a priority for the Secretary, and for the Secretary of Agriculture with respect to National Forest Systems land, to ensure timely completion of administrative actions, including amendments to applicable forest plans and resource management plans, necessary to process applications for geothermal leasing pending on the date of enactment of this subsection. All future forest plans and resource management plans for areas with high geothermal resource potential shall consider geothermal leasing and development. “(2) Administration.— An application described in paragraph (1) and any lease issued pursuant to the application— “(A) except as provided in subparagraph (B), shall be subject to this section as in effect on the day before the date of enactment of this paragraph; or “(B) at the election of the applicant, shall be subject to this section as in effect on the effective date of this paragraph. “(e) Leases Sold as a Block.— If information is available to the Secretary indicating a geothermal resource that could be produced as 1 unit can reasonably be expected to underlie more than 1 parcel to be offered in a competitive lease sale, the parcels for such a resource may be offered for bidding as a block in the competitive lease sale.” . SEC. 223. DIRECT USE. (a) Fees for Direct Use.— Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is amended— (1) in subsection (c), by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (2) by redesignating subsections (a) through (d) as paragraphs (1) through (4), respectively; (3) by inserting “(a) In General.—” after “Sec. 5.”; and (4) by adding at the end the following: “(b) Direct Use.— “(1) In general.— Notwithstanding Fees. subsection (a)(1), the Secretary shall establish a schedule of fees, in lieu of royalties for geothermal resources, that a lessee or its affiliate— “(A) uses for a purpose other than the commercial generation of electricity; and “(B) does not sell. “(2) Schedule of fees.— The schedule of fees— “(A) may be based on the quantity or thermal content, or both, of geothermal resources used; “(B) shall ensure a fair return to the United States for use of the resource; and “(C) shall encourage development of the resource. “(3) State, tribal, or local governments.— If a State, tribal, or local government is the lessee and uses geothermal resources without sale and for public purposes other than commercial generation of electricity, the Secretary shall charge only a nominal fee for use of the resource. “(4) Final regulation.— In issuing any final regulation establishing a schedule of fees under this subsection, the Secretary shall seek— “(A) to provide lessees with a simplified administrative system; “(B) to facilitate development of direct use of geothermal resources; and “(C) to contribute to sustainable economic development opportunities in the area.” . (b) Leasing for Direct Use.— Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) (as amended by section 222) is further amended by adding at the end the following: “(f) Leasing for Direct Use of Geothermal Resources.— Notwithstanding subsection (b), the Secretary may identify areas in which the land to be leased under this Act exclusively for direct use of geothermal resources, without sale for purposes other than commercial generation of electricity, may be leased to any qualified applicant that first applies for such a lease under regulations issued by the Secretary, if the Secretary— “(1) Notice. Deadline. publishes a notice of the land proposed for leasing not later than 90 days before the date of the issuance of the lease; “(2) does not receive during the 90-day period beginning on the date of the publication any nomination to include the land concerned in the next competitive lease sale; and “(3) determines there is no competitive interest in the geothermal resources in the land to be leased. “(g) Area Subject to Lease for Direct Use.— “(1) In general.— Subject to paragraph (2), a geothermal lease for the direct use of geothermal resources shall cover not more than the quantity of acreage determined by the Secretary to be reasonably necessary for the proposed use. “(2) Limitations.— The quantity of acreage covered by the lease shall not exceed the limitations established under section 7.” . (c) Application of New Lease Terms.— The 30 USC 1004 note. schedule of fees established under the amendment made by subsection (a)(4) shall apply with respect to payments under a lease converted under this subsection that are due and owing, and have been paid, on or after July 16, 2003. This subsection shall not require the refund of royalties paid to a State under section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of this Act. SEC. 224. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES. (a) Royalty.— Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is further amended— (1) in subsection (a) by striking paragraph (1) and inserting the following: “(1) a royalty on electricity produced using geothermal resources, other than direct use of geothermal resources, that shall be— “(A) not less than 1 percent and not more than 2.5 percent of the gross proceeds from the sale of electricity produced from such resources during the first 10 years of production under the lease; and “(B) not less than 2 and not more than 5 percent of the gross proceeds from the sale of electricity produced from such resources during each year after such 10-year period;” ; and (2) by adding at the end the following: “(c) Final Regulation Establishing Royalty Rates.— In issuing any final regulation establishing royalty rates under this section, the Secretary shall seek— “(1) to provide lessees a simplified administrative system; “(2) to encourage new development; and “(3) to achieve the same level of royalty revenues over a 10-year period as the regulation in effect on the date of enactment of this subsection. “(d) Credits for In-Kind Payments of Electricity.— The Secretary may provide to a lessee a credit against royalties owed under this Act, in an amount equal to the value of electricity provided under contract to a State or county government that is entitled to a portion of such royalties under section 20 of this Act, section 35 of the Mineral Leasing Act (30 U.S.C. 191), except as otherwise provided by this section, or section 6 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 355), if— “(1) the Secretary has approved in advance the contract between the lessee and the State or county government for such in-kind payments; “(2) the contract establishes a specific methodology to determine the value of such credits; and “(3) the maximum credit will be equal to the royalty value owed to the State or county that is a party to the contract and the electricity received will serve as the royalty payment from the Federal Government to that entity.” . (b) Disposal of Moneys From Sales, Bonuses, Royalties, and Rents.— Section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) is amended to read as follows: “SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND ROYALTIES. “(a) In General.— Except with respect to lands in the State of Alaska, all monies received by the United States from sales, bonuses, rentals, and royalties under this Act shall be paid into the Treasury of the United States. Of amounts deposited under this subsection, subject to the provisions of subsection (b) of section 35 of the Mineral Leasing Act (30 U.S.C. 191(b)) and section 5(a)(2) of this Act— “(1) 50 percent shall be paid to the State within the boundaries of which the leased lands or geothermal resources are or were located; and “(2) 25 percent shall be paid to the county within the boundaries of which the leased lands or geothermal resources are or were located. “(b) Use of Payments.— Amounts paid to a State or county under subsection (a) shall be used consistent with the terms of section 35 of the Mineral Leasing Act (30 U.S.C. 191).” . (c) Near-Term Production Incentive for Existing Leases.— (1) In general.— Notwithstanding section 5(a) of the Geothermal Steam Act of 1970, the royalty required to be paid shall be 50 percent of the amount of the royalty otherwise required, on any lease issued before the date of enactment of this Act that does not convert to new royalty terms under subsection (e)— (A) with respect to commercial production of energy from a facility that begins such production in the 6-year period beginning on the date of enactment of this Act; or (B) on qualified expansion geothermal energy. (2) 4-year application.— Paragraph (1) applies only to new commercial production of energy from a facility in the first 4 years of such production. (d) Definition of Qualified Expansion Geothermal Energy.— In this section, the term “qualified expansion geothermal energy” means geothermal energy produced from a generation facility for which— (1) the production is increased by more than 10 percent as a result of expansion of the facility carried out in the 6-year period beginning on the date of enactment of this Act; and (2) such production increase is greater than 10 percent of the average production by the facility during the 5-year period preceding the expansion of the facility (as such average is adjusted to reflect any trend in changes in production during that period). (e) Royalty Under Existing Leases.— (1) In general.— Any lessee under a lease issued under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) before the date of enactment of this Act may, within the time period specified in paragraph (2), submit to the Secretary of the Interior a request to modify the terms of the lease relating to payment of royalties to provide— (A) in the case of a lease that meets the requirements of subsection (b) of section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by section 223), that royalties be based on the schedule of fees established under that section; and (B) in the case of any other lease, that royalties be computed on a percentage of the gross proceeds from the sale of electricity, at a royalty rate that is expected to yield total royalty payments equivalent to payments that would have been received for comparable production under the royalty rate in effect for the lease before the date of enactment of this subsection. (2) Timing.— A Deadlines. request for a modification under paragraph (1) shall be submitted to the Secretary of the Interior by the date that is not later than— (A) in the case of a lease for direct use, 18 months after the effective date of the schedule of fees established by the Secretary of the Interior under section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004); or (B) in the case of any other lease, 18 months after the effective date of the final regulation issued under subsection (a). (3) Application of modification.— If the lessee requests modification of a lease under paragraph (1)— (A) Deadline. the Secretary of the Interior shall, within 180 days after the receipt of the request for modification, modify the lease to comply with— (i) in the case of a lease for direct use, the schedule of fees established by the Secretary under section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004); or (ii) in the case of any other lease, the royalty for the lease established under paragraph (1)(B); and (B) the modification shall apply to any use of geothermal resources to which subsection (a) applies that occurs after the date of the modification. (4) Consultation.— The Secretary of the Interior shall consult with the State and local governments affected by any proposed changes in lease royalty terms under this subsection. SEC. 225. COORDINATION OF GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LANDS. (a) In General.— Not Deadline. Memorandum. later than 180 days after the date of enactment of this section, the Secretary of the Interior and the Secretary of Agriculture shall enter into and submit to Congress a memorandum of understanding in accordance with this section, the Geothermal Steam Act of 1970 (as amended by this Act), and other applicable laws, regarding coordination of leasing and permitting for geothermal development of public lands and National Forest System lands under their respective jurisdictions. (b) Lease and Permit Applications.— The memorandum of understanding shall— (1) establish an administrative procedure for processing geothermal lease applications, including lines of authority, steps in application processing, and time limits for application procession; (2) establish a 5-year program for geothermal leasing of lands in the National Forest System, and a process for updating that program every 5 years; and (3) Effective date. establish a program for reducing the backlog of geothermal lease application pending on January 1, 2005, by 90 percent within the 5-year period beginning on the date of enactment of this Act, including, as necessary, by issuing leases, rejecting lease applications for failure to comply with the provisions of the regulations under which they were filed, or determining that an original applicant (or the applicant’s assigns, heirs, or estate) is no longer interested in pursuing the lease application. (c) Data Retrieval System.— The memorandum of understanding shall establish a joint data retrieval system that is capable of tracking lease and permit applications and providing to the applicant information as to their status within the Departments of the Interior and Agriculture, including an estimate of the time required for administrative action. SEC. 226. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.   Not later than 3 years after the date of enactment of this Act and thereafter as the availability of data and developments in technology warrants, the Secretary of the Interior, acting through the Director of the United States Geological Survey and in cooperation with the States, shall— (1) update the Assessment of Geothermal Resources made during 1978; and (2) submit to Congress the updated assessment. SEC. 227. COOPERATIVE OR UNIT PLANS.   Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C. 1017) is amended to read as follows: “SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS. “(a) Adoption of Units by Lessees.— “(1) In general.— For the purpose of more properly conserving the natural resources of any geothermal reservoir, field, or like area, or any part thereof (whether or not any part of the geothermal reservoir, field, or like area, is subject to any cooperative plan of development or operation (referred to in this section as a ‘unit agreement’)), lessees thereof and their representatives may unite with each other, or jointly or separately with others, in collectively adopting and operating under a unit agreement for the reservoir, field, or like area, or any part thereof, including direct use resources, if determined and certified by the Secretary to be necessary or advisable in the public interest. “(2) Majority interest of single leases.— A majority interest of owners of any single lease shall have the authority to commit the lease to a unit agreement. “(3) Initiative of secretary.— The Secretary may also initiate the formation of a unit agreement, or require an existing Federal lease to commit to a unit agreement, if in the public interest. “(4) Modification of lease requirements by secretary.— “(A) In general.— The Secretary may, in the discretion of the Secretary and with the consent of the holders of leases involved, establish, alter, change, or revoke rates of operations (including drilling, operations, production, and other requirements) of the leases and make conditions with respect to the leases, with the consent of the lessees, in connection with the creation and operation of any such unit agreement as the Secretary may consider necessary or advisable to secure the protection of the public interest. “(B) Unlike terms or rates.— Leases with unlike lease terms or royalty rates shall not be required to be modified to be in the same unit. “(b) Requirement of Plans Under New Leases.— The Secretary may— “(1) provide that geothermal leases issued under this Act shall contain a provision requiring the lessee to operate under a unit agreement; and “(2) prescribe the unit agreement under which the lessee shall operate, which shall adequately protect the rights of all parties in interest, including the United States. “(c) Modification of Rate of Prospecting, Development, and Production.— The Secretary may require that any unit agreement authorized by this section that applies to land owned by the United States contain a provision under which authority is vested in the Secretary, or any person, committee, or State or Federal officer or agency as may be designated in the unit agreement to alter or modify, from time to time, the rate of prospecting and development and the quantity and rate of production under the unit agreement. “(d) Exclusion From Determination of Holding or Control.— Any land that is subject to a unit agreement approved or prescribed by the Secretary under this section shall not be considered in determining holdings or control under section 7. “(e) Pooling of Certain Land.— If separate tracts of land cannot be independently developed and operated to use geothermal resources pursuant to any section of this Act— “(1) the land, or a portion of the land, may be pooled with other land, whether or not owned by the United States, for purposes of development and operation under a communitization agreement providing for an apportionment of production or royalties among the separate tracts of land comprising the production unit, if the pooling is determined by the Secretary to be in the public interest; and “(2) operation or production pursuant to the communitization agreement shall be treated as operation or production with respect to each tract of land that is subject to the communitization agreement. “(f) Unit Agreement Review.— “(1) In general.— Not Deadlines. later than 5 years after the date of approval of any unit agreement and at least every 5 years thereafter, the Secretary shall— “(A) review each unit agreement; and “(B) after notice and opportunity for comment, eliminate from inclusion in the unit agreement any land that the Secretary determines is not reasonably necessary for unit operations under the unit agreement. “(2) Basis for elimination.— The elimination shall— “(A) be based on scientific evidence; and “(B) occur only if the elimination is determined by the Secretary to be for the purpose of conserving and properly managing the geothermal resource. “(3) Extension.— Any land eliminated under this subsection shall be eligible for an extension under section 6(g) if the land meets the requirements for the extension. “(g) Drilling or Development Contracts.— “(1) In general.— The Secretary may, on such conditions as the Secretary may prescribe, approve drilling or development contracts made by one or more lessees of geothermal leases, with one or more persons, associations, or corporations if, in the discretion of the Secretary, the conservation of natural resources or the public convenience or necessity may require or the interests of the United States may be best served by the approval. “(2) Holdings or control.— Each lease operated under an approved drilling or development contract, and interest under the contract, shall be excepted in determining holdings or control under section 7. “(h) Coordination With State Governments.— The Secretary shall coordinate unitization and pooling activities with appropriate State agencies.” . SEC. 228. ROYALTY ON BYPRODUCTS.   Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by section 223(a)) is further amended in subsection (a) by striking paragraph (2) and inserting the following: “(2) a royalty on any byproduct that is a mineral specified in the first section of the Mineral Leasing Act (30 U.S.C. 181), and that is derived from production under the lease, at the rate of the royalty that applies under that Act to production of the mineral under a lease under that Act;” . SEC. 229. AUTHORITIES OF SECRETARY TO READJUST TERMS, CONDITIONS, RENTALS, AND ROYALTIES.   Section 8(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) is amended in the 30 USC 1007. second sentence by striking “period, and in no event” and all that follows through the end of the sentence and inserting “period”. SEC. 230. CREDITING OF RENTAL TOWARD ROYALTY.   Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by sections 223 and 224) is further amended— (1) in subsection (a)(2) by inserting “and” after the semicolon at the end; (2) in subsection (a)(3) by striking “; and” and inserting a period; (3) by striking paragraph (4) of subsection (a); and (4) by adding at the end the following: “(e) Crediting of Rental Toward Royalty.— Any annual rental under this section that is paid with respect to a lease before the first day of the year for which the annual rental is owed shall be credited to the amount of royalty that is required to be paid under the lease for that year.” . SEC. 231. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.   Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) is amended— (1) by striking so much as precedes subsection (c), and striking subsections (e), (g), (h), (i), and (j); (2) by redesignating subsections (c), (d), and (f) in order as subsections (g), (h), and (i); and (3) by inserting before subsection (g), as so redesignated, the following: “SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS. “(a) In General.— “(1) Primary term.— A geothermal lease shall be for a primary term of 10 years. “(2) Initial extension.— The Secretary shall extend the primary term of a geothermal lease for 5 years if, for each year after the 10th year of the lease— “(A) the Secretary determined under subsection (b) that the lessee satisfied the work commitment requirements that applied to the lease for that year; or “(B) the lessee paid in annual payments accordance with subsection (c). “(3) Additional extension.— The Secretary shall extend the primary term of a geothermal lease (after an initial extension under paragraph (2)) for an additional 5 years if, for each year of the initial extension under paragraph (2), the Secretary determined under subsection (b) that the lessee satisfied the minimum work requirements that applied to the lease for that year. “(b) Requirement to Satisfy Annual Minimum Work Requirement.— “(1) In general.— The lessee for a geothermal lease shall, for each year after the 10th year of the lease, satisfy minimum work requirements prescribed by the Secretary that apply to the lease for that year. “(2) Prescription of minimum work requirements.— The Secretary shall issue regulations prescribing minimum work requirements for geothermal leases, that— “(A) establish a geothermal potential; and “(B) if a geothermal potential has been established, confirm the existence of producible geothermal resources. “(c) Payments in Lieu of Minimum Work Requirements.— In lieu of the minimum work requirements set forth in subsection (b)(2), the Secretary shall by regulation establish minimum annual payments which may be made by the lessee for a limited number of years that the Secretary determines will not impair achieving diligent development of the geothermal resource, but in no event shall the number of years exceed the duration of the extension period provided in subsection (a). “(d) Transition Rules for Leases Issued Prior to Enactment of Energy Policy Act of 2005.— The Secretary shall by regulation establish transition rules for leases issued before the date of the enactment of this subsection, including terms under which a lease that is near the end of its term on the date of enactment of this subsection may be extended for up to 2 years— “(1) to allow achievement of production under the lease; or “(2) to allow the lease to be included in a producing unit. “(e) Geothermal Lease Overlying Mining Claim.— “(1) Exemption.— The lessee for a geothermal lease of an area overlying an area subject to a mining claim for which a plan of operations has been approved by the relevant Federal land management agency is exempt from annual work requirements established under this Act, if development of the geothermal resource subject to the lease would interfere with the mining operations under such claim. “(2) Termination of exemption.— An exemption under this paragraph expires upon the termination of the mining operations. “(f) Termination of Application of Requirements.— Minimum work requirements prescribed under this section shall not apply to a geothermal lease after the date on which the geothermal resource is utilized under the lease in commercial quantities.” . SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.   Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by sections 223, 224, and 230) is further amended by adding at the end the following: “(f) Advanced Royalties Required for Cessation of Production.— “(1) In general.— Subject to paragraphs (2) and (3), if, at any time after commercial production under a lease is achieved, production ceases for any reason, the lease shall remain in full force and effect for a period of not more than an aggregate number of 10 years beginning on the date production ceases, if, during the period in which production is ceased, the lessee pays royalties in advance at the monthly average rate at which the royalty was paid during the period of production. “(2) Reduction.— The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advanced royalties paid under the lease to the extent that the advance royalties have not been used to reduce production royalties for a prior year. “(3) Exceptions.— Paragraph (1) shall not apply if the cessation in production is required or otherwise caused by— “(A) the Secretary; “(B) the Secretary of the Air Force; “(C) the Secretary of the Army; “(D) the Secretary of the Navy; “(E) a State or a political subdivision of a State; or “(F) a force majeure.” . SEC. 233. ANNUAL RENTAL. (a) Annual Rental Rate.— Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by section 223(a)) is further amended in subsection (a) by striking paragraph (3) and inserting the following: “(3) payment in advance of an annual rental of not less than— “(A) for each of the 1st through 10th years of the lease— “(i) in the case of a lease awarded in a noncompetitive lease sale, $1 per acre or fraction thereof; or “(ii) in the case of a lease awarded in a competitive lease sale, $2 per acre or fraction thereof for the 1st year and $3 per acre or fraction thereof for each of the 2nd through 10th years; and “(B) for each year after the 10th year of the lease, $5 per acre or fraction thereof;” . (b) Termination of Lease for Failure to Pay Rental.— Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by sections 223, 224, 230, and 232) is further amended by adding at the end the following: “(g) Termination of Lease for Failure to Pay Rental.— “(1) In general.— The Secretary shall terminate any lease with respect to which rental is not paid in accordance with this Act and the terms of the lease under which the rental is required, on the expiration of the 45-day period beginning on the date of the failure to pay the rental. “(2) Notification.— The Secretary shall promptly notify a lessee that has not paid rental required under the lease that the lease will be terminated at the end of the period referred to in paragraph (1). “(3) Reinstatement.— A lease that would otherwise terminate under paragraph (1) shall not terminate under that paragraph if the lessee pays to the Secretary, before the end of the period referred to in paragraph (1), the amount of rental due plus a late fee equal to 10 percent of the amount.” . 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 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 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. (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. SEC. 235. ACREAGE LIMITATIONS.   Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) is amended— (1) by striking “sec. 7.”, and by inserting immediately before and above the first paragraph the following: “SEC. 7. ACREAGE LIMITATIONS.” ; (2) in the first paragraph— (A) by striking “two thousand five hundred and sixty acres” and inserting “5,120 acres”; and (B) by striking “twenty thousand four hundred and eighty acres” and inserting “51,200 acres”; and (3) by striking the second paragraph. SEC. 236. TECHNICAL AMENDMENTS.   The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is further amended as follows: (1) 30 USC 1001, 1002, 1005, 1020, 1022, 1024–1026. By striking “geothermal steam and associated geothermal resources” each place it appears and inserting “geothermal resources”. (2) Section 2 (30 U.S.C. 1001) is amended by adding at the end the following: “(g) ‘direct use’ means utilization of geothermal resources for commercial, residential, agricultural, public facilities, or other energy needs other than the commercial production of electricity; and” . (3) Section 21 (30 U.S.C. 1020) is amended by striking “(a) Within one hundred” and all that follows through “(b) Geothermal” and inserting “Geothermal”. (4) The first section (30 U.S.C. 1001 note) is amended by striking “That this” and inserting the following: “SEC. 1. SHORT TITLE.   “This” . (5) Section 2 (30 U.S.C. 1001) is amended by striking “sec. 2. As” and inserting the following: “SEC. 2. DEFINITIONS.   “As” . (6) Section 3 (30 U.S.C. 1002) is amended by striking “sec. 3. Subject” and inserting the following: “SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEASING.   “Subject” . (7) Section 5 (30 U.S.C. 1004) is further amended by striking “sec. 5.”, and by inserting immediately before and above subsection (a) the following: “SEC. 5. RENTS AND ROYALTIES.” . (8) Section 8 (30 U.S.C. 1007) is amended by striking “sec. 8. (a) The” and inserting the following: “SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS. “(a) The” . (9) Section 9 (30 U.S.C. 1008) is amended by striking “sec. 9. If” and inserting the following: “SEC. 9. BYPRODUCTS.   “If” . (10) Section 10 (30 U.S.C. 1009) is amended by striking “sec. 10. The” and inserting the following: “SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.   “The” . (11) Section 11 (30 U.S.C. 1010) is amended by striking “sec. 11. The” and inserting the following: “SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.   “The” . (12) Section 12 (30 U.S.C. 1011) is amended by striking “sec. 12. Leases” and inserting the following: “SEC. 12. TERMINATION OF LEASES.   “Leases” . (13) Section 13 (30 U.S.C. 1012) is amended by striking “sec. 13. The” and inserting the following: “SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR ROYALTY.   “The” . (14) Section 14 (30 U.S.C. 1013) is amended by striking “sec. 14. Subject” and inserting the following: “SEC. 14. SURFACE LAND USE.   “Subject” . (15) Section 15 (30 U.S.C. 1014) is amended by striking “sec. 15. (a) Geothermal” and inserting the following: “SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING. “(a) Geothermal” . (16) Section 16 (30 U.S.C. 1015) is amended by striking “sec. 16. Leases” and inserting the following: “SEC. 16. REQUIREMENT FOR LESSEES.   “Leases” . (17) Section 17 (30 U.S.C. 1016) is amended by striking “sec. 17. Administration” and inserting the following: “SEC. 17. ADMINISTRATION.   “Administration” . (18) Section 19 (30 U.S.C. 1018) is amended by striking “sec. 19. Upon” and inserting the following: “SEC. 19. DATA FROM FEDERAL AGENCIES.   “Upon” . (19) Section 21 (30 U.S.C. 1020) is further amended by striking “sec. 21.”, and by inserting immediately before and above the remainder of that section the following: “SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL RIGHTS.” . (20) Section 22 (30 U.S.C. 1021) is amended by striking “sec. 22. Nothing” and inserting the following: “SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.   “Nothing” . (21) Section 23 (30 U.S.C. 1022) is amended by striking “sec. 23. (a) All” and inserting the following: “SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY. “(a) All” . (22) Section 24 (30 U.S.C. 1023) is amended by striking “sec. 24. The” and inserting the following: “SEC. 24. RULES AND REGULATIONS.   “The” . (23) Section 25 (30 U.S.C. 1024) is amended by striking “sec. 25. As” and inserting the following: “SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN OTHER LAWS.   “As” . (24) Section 26 30 USC 530. is amended by striking “sec. 26. The” and inserting the following: “SEC. 26. AMENDMENT.   “The” . (25) Section 27 (30 U.S.C. 1025) is amended by striking “sec. 27. The” and inserting the following: “SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.   “The” . (26) Section 28 (30 U.S.C. 1026) is amended by striking “sec. 28. (a)(1) The” and inserting the following: “SEC. 28. SIGNIFICANT THERMAL FEATURES. “(a) (1) The” . (27) Section 29 (30 U.S.C. 1027) is amended by striking “sec. 29. The” and inserting the following: “SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.   “The” . SEC. 237. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM. (a) Participation Authorized.— The Secretary, acting through the Idaho National Laboratory, may participate in a consortium described in subsection (b) to address science and science policy issues surrounding the expanded discovery and use of geothermal energy, including from geothermal resources on public lands. (b) Members.— The Establishment. consortium referred to in subsection (a) shall— (1) be known as the “Intermountain West Geothermal Consortium”; (2) be a regional consortium of institutions and government agencies that focuses on building collaborative efforts among the universities in the State of Idaho, other regional universities, State agencies, and the Idaho National Laboratory; (3) include Boise State University, the University of Idaho (including the Idaho Water Resources Research Institute), the Oregon Institute of Technology, the Desert Research Institute with the University and Community College System of Nevada, and the Energy and Geoscience Institute at the University of Utah; (4) be hosted and managed by Boise State University; and (5) have a director appointed by Boise State University, and associate directors appointed by each participating institution. (c) Financial Assistance.— The Secretary, acting through the Idaho National Laboratory and subject to the availability of appropriations, will provide financial assistance to Boise State University for expenditure under contracts with members of the consortium to carry out the activities of the consortium. Subtitle C— Hydroelectric SEC. 241. ALTERNATIVE CONDITIONS AND FISHWAYS. (a) Federal Reservations.— Section 4(e) of the Federal Power Act (16 U.S.C. 797(e)) is amended by inserting after “adequate protection and utilization of such reservation.” at the end of the first proviso the following: “The license applicant and any party to the proceeding shall be entitled to a determination on the record, after opportunity for an agency trial-type hearing of no more than 90 days, on any disputed issues of material fact with respect to such conditions. All disputed issues of material fact raised by any party shall be determined in a single trial-type hearing to be conducted by the relevant resource agency in accordance with the regulations promulgated under this subsection and within the time frame established by the Commission for each license proceeding. Within Deadline. Regulations. Procedures. 90 days of the date of enactment of the Energy Policy Act of 2005, the Secretaries of the Interior, Commerce, and Agriculture shall establish jointly, by rule, the procedures for such expedited trial-type hearing, including the opportunity to undertake discovery and cross-examine witnesses, in consultation with the Federal Energy Regulatory Commission.”. (b) Fishways.— Section 18 of the Federal Power Act (16 U.S.C. 811) is amended by inserting after “and such fishways as may be prescribed by the Secretary of Commerce.” the Deadline. following: “The license applicant and any party to the proceeding shall be entitled to a determination on the record, after opportunity for an agency trial-type hearing of no more than 90 days, on any disputed issues of material fact with respect to such fishways. All disputed issues of material fact raised by any party shall be determined in a single trial-type hearing to be conducted by the relevant resource agency in accordance with the regulations promulgated under this subsection and within the time frame established by the Commission for each license proceeding. Deadline. Regulations. Procedures. Within 90 days of the date of enactment of the Energy Policy Act of 2005, the Secretaries of the Interior, Commerce, and Agriculture shall establish jointly, by rule, the procedures for such expedited trial-type hearing, including the opportunity to undertake discovery and cross-examine witnesses, in consultation with the Federal Energy Regulatory Commission.”. (c) Alternative Conditions and Prescriptions.— Part I of the Federal Power Act (16 U.S.C. 791a et seq.) is amended by adding the following new section at the end thereof: “SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. “(a) Alternative Conditions.— (1) Whenever any person applies for a license for any project works within any reservation of the United States, and the Secretary of the department under whose supervision such reservation falls (referred to in this subsection as the ‘Secretary’) deems a condition to such license to be necessary under the first proviso of section 4(e), the license applicant or any other party to the license proceeding may propose an alternative condition. “(2) Notwithstanding the first proviso of section 4(e), the Secretary shall accept the proposed alternative condition referred to in paragraph (1), and the Commission shall include in the license such alternative condition, if the Secretary determines, based on substantial evidence provided by the license applicant, any other party to the proceeding, or otherwise available to the Secretary, that such alternative condition— “(A) provides for the adequate protection and utilization of the reservation; and “(B) will either, as compared to the condition initially by the Secretary— “(i) cost significantly less to implement; or “(ii) result in improved operation of the project works for electricity production. “(3) In making a determination under paragraph (2), the Secretary shall consider evidence provided for the record by any party to a licensing proceeding, or otherwise available to the Secretary, including any evidence provided by the Commission, on the implementation costs or operational impacts for electricity production of a proposed alternative. “(4) Public information. Records. The Secretary concerned shall submit into the public record of the Commission proceeding with any condition under section 4(e) or alternative condition it accepts under this section, a written statement explaining the basis for such condition, and reason for not accepting any alternative condition under this section. The written statement must demonstrate that the Secretary gave equal consideration to the effects of the condition adopted and alternatives not accepted on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in addition to the preservation of other aspects of environmental quality); based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others. The Secretary shall also submit, together with the aforementioned written statement, all studies, data, and other factual information available to the Secretary and relevant to the Secretary’s decision. “(5) If the Commission finds that the Secretary’s final condition would be inconsistent with the purposes of this part, or other applicable law, the Commission may refer the dispute to the Commission’s Dispute Resolution Service. Deadline. The Dispute Resolution Service shall consult with the Secretary and the Commission and issue a non-binding advisory within 90 days. The Secretary may accept the Dispute Resolution Service advisory unless the Secretary finds that the recommendation will not adequately protect the reservation. Records. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding. “(b) Alternative Prescriptions.— (1) Whenever the Secretary of the Interior or the Secretary of Commerce prescribes a fishway under section 18, the license applicant or any other party to the license proceeding may propose an alternative to such prescription to construct, maintain, or operate a fishway. “(2) Notwithstanding section 18, the Secretary of the Interior or the Secretary of Commerce, as appropriate, shall accept and prescribe, and the Commission shall require, the proposed alternative referred to in paragraph (1), if the Secretary of the appropriate department determines, based on substantial evidence provided by the license applicant, any other party to the proceeding, or otherwise available to the Secretary, that such alternative— “(A) will be no less protective than the fishway initially prescribed by the Secretary; and “(B) will either, as compared to the fishway initially prescribed by the Secretary— “(i) cost significantly less to implement; or “(ii) result in improved operation of the project works for electricity production. “(3) In making a determination under paragraph (2), the Secretary shall consider evidence provided for the record by any party to a licensing proceeding, or otherwise available to the Secretary, including any evidence provided by the Commission, on the implementation costs or operational impacts for electricity production of a proposed alternative. “(4) Public information. Records. The Secretary concerned shall submit into the public record of the Commission proceeding with any prescription under section 18 or alternative prescription it accepts under this section, a written statement explaining the basis for such prescription, and reason for not accepting any alternative prescription under this section. The written statement must demonstrate that the Secretary gave equal consideration to the effects of the prescription adopted and alternatives not accepted on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in addition to the preservation of other aspects of environmental quality); based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others. The Secretary shall also submit, together with the aforementioned written statement, all studies, data, and other factual information available to the Secretary and relevant to the Secretary’s decision. “(5) If the Commission finds that the Secretary’s final prescription would be inconsistent with the purposes of this part, or other applicable law, the Commission may refer the dispute to the Commission’s Dispute Resolution Service. Deadline. The Dispute Resolution Service shall consult with the Secretary and the Commission and issue a non-binding advisory within 90 days. The Secretary may accept the Dispute Resolution Service advisory unless the Secretary finds that the recommendation will not adequately protect the fish resources. Records. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding.” . SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES. (a) Incentive Payments.— For electric energy generated and sold by a qualified hydroelectric facility during the incentive period, the Secretary shall make, subject to the availability of appropriations, incentive payments to the owner or operator of such facility. The amount of such payment made to any such owner or operator shall be as determined under subsection (e) of this section. Payments under this section may only be made upon receipt by the Secretary of an incentive payment application which establishes that the applicant is eligible to receive such payment and which satisfies such other requirements as the Secretary deems necessary. Such application shall be in such form, and shall be submitted at such time, as the Secretary shall establish. (b) Definitions.— For purposes of this section: (1) Qualified hydroelectric facility.— The term “qualified hydroelectric facility” means a turbine or other generating device owned or solely operated by a non-Federal entity which generates hydroelectric energy for sale and which is added to an existing dam or conduit. (2) Existing dam or conduit.— The term “existing dam or conduit” means any dam or conduit the construction of which was completed before the date of the enactment of this section and which does not require any construction or enlargement of impoundment or diversion structures (other than repair or reconstruction) in connection with the installation of a turbine or other generating device. (3) Conduit.— The term “conduit” has the same meaning as when used in section 30(a)(2) of the Federal Power Act (16 U.S.C. 823a(a)(2)). The Applicability. terms defined in this subsection shall apply without regard to the hydroelectric kilowatt capacity of the facility concerned, without regard to whether the facility uses a dam owned by a governmental or nongovernmental entity, and without regard to whether the facility begins operation on or after the date of the enactment of this section. (c) Eligibility Window.— Payments may be made under this section only for electric energy generated from a qualified hydroelectric facility which begins operation during the period of 10 fiscal years beginning with the first full fiscal year occurring after the date of enactment of this subtitle. (d) Incentive Period.— A qualified hydroelectric facility may receive payments under this section for a period of 10 fiscal years (referred to in this section as the “incentive period”). Such period shall begin with the fiscal year in which electric energy generated from the facility is first eligible for such payments. (e) Amount of Payment.— (1) In general.— Payments made by the Secretary under this section to the owner or operator of a qualified hydroelectric facility shall be based on the number of kilowatt hours of hydroelectric energy generated by the facility during the incentive period. For any such facility, the amount of such payment shall be 1.8 cents per kilowatt hour (adjusted as provided in paragraph (2)), subject to the availability of appropriations under subsection (g), except that no facility may receive more than $750,000 in 1 calendar year. (2) Adjustments.— The amount of the payment made to any person under this section as provided in paragraph (1) shall be adjusted for inflation for each fiscal year beginning after calendar year 2005 in the same manner as provided in the provisions of section 29(d)(2)(B) of the Internal Revenue Code of 1986, except that in applying such provisions the calendar year 2005 shall be substituted for calendar year 1979. (f) Sunset.— No payment may be made under this section to any qualified hydroelectric facility after the expiration of the period of 20 fiscal years beginning with the first full fiscal year occurring after the date of enactment of this subtitle, and no payment may be made under this section to any such facility after a payment has been made with respect to such facility for a period of 10 fiscal years. (g) Authorization of Appropriations.— There are authorized to be appropriated to the Secretary to carry out the purposes of this section $10,000,000 for each of the fiscal years 2006 through 2015. SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT. (a) Incentive Payments.— The Secretary shall make incentive payments to the owners or operators of hydroelectric facilities at existing dams to be used to make capital improvements in the facilities that are directly related to improving the efficiency of such facilities by at least 3 percent. (b) Limitations.— Incentive payments under this section shall not exceed 10 percent of the costs of the capital improvement concerned and not more than 1 payment may be made with respect to improvements at a single facility. No payment in excess of $750,000 may be made with respect to improvements at a single facility. (c) Authorization of Appropriations.— There are authorized to be appropriated to carry out this section not more than $10,000,000 for each of the fiscal years 2006 through 2015. SEC. 244. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.   Section 32 of the Federal Power Act (16 U.S.C. 823c) is amended— (1) in subsection (a)(3)(C), by inserting “except as provided in subsection (j),” before “conditions”; and (2) by adding at the end the following: “(j) Fish and Wildlife.— If the State of Alaska determines that a recommendation under subsection (a)(3)(C) is inconsistent with paragraphs (1) and (2) of subsection (a), the State of Alaska may decline to adopt all or part of the recommendations in accordance with the procedures established under section 10(j)(2).” . SEC. 245. FLINT CREEK HYDROELECTRIC PROJECT. (a) Extension of Time.— Notwithstanding Applicability. Effective dates. the time period specified in section 5 of the Federal Power Act (16 U.S.C. 798) that would otherwise apply to the Federal Energy Regulatory Commission (referred to in this section as the “Commission”) project numbered 12107, the Commission shall— (1) if the preliminary permit is in effect on the date of enactment of this Act, extend the preliminary permit for a period of 3 years beginning on the date on which the preliminary permit expires; or (2) if the preliminary permit expired before the date of enactment of this Act, on request of the permittee, reinstate the preliminary permit for an additional 3-year period beginning on the date of enactment of this Act. (b) Limitation on Certain Fees.— Notwithstanding section 10(e)(1) of the Federal Power Act (16 U.S.C. 803(e)(1)) or any other provision of Federal law providing for the payment to the United States of charges for the use of Federal land for the purposes of operating and maintaining a hydroelectric development licensed by the Commission, any political subdivision of the State of Montana that holds a Commission license for the Commission project numbered 12107 in Granite and Deer Lodge Counties, Montana, shall be required to pay to the United States for the use of that land for each year during which the political subdivision continues to hold the license for the project, the lesser of— (1) $25,000; or (2) such annual charge as the Commission or any other department or agency of the Federal Government may assess. SEC. 246. SMALL HYDROELECTRIC POWER PROJECTS.   Section 408(a)(6) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2708(a)(6)) is amended by striking “April 20, 1977” and inserting “July 22, 2005”. Subtitle D— Insular Energy SEC. 251. INSULAR AREAS ENERGY SECURITY.   Section 604 of the Act entitled “An Act to authorize appropriations for certain insular areas of the United States, and for other purposes”, approved December 24, 1980 (48 U.S.C. 1492), is amended— (1) in subsection (a)(4) by striking the period and inserting a semicolon; (2) by adding at the end of subsection (a) the following new paragraphs: “(5) electric power transmission and distribution lines in insular areas are inadequate to withstand damage caused by the hurricanes and typhoons which frequently occur in insular areas and such damage often costs millions of dollars to repair; and “(6) the refinement of renewable energy technologies since the publication of the 1982 Territorial Energy Assessment prepared pursuant to subsection (c) reveals the need to reassess the state of energy production, consumption, infrastructure, reliance on imported energy, opportunities for energy conservation and increased energy efficiency, and indigenous sources in regard to the insular areas.” ; (3) by amending subsection (e) to read as follows: “(e) (1) The Secretary of the Interior, in consultation with the Secretary of Energy and the head of government of each insular area, shall update the plans required under subsection (c) by— “(A) updating the contents required by subsection (c); “(B) drafting long-term energy plans for such insular areas with the objective of reducing, to the extent feasible, their reliance on energy imports by the year 2012, increasing energy conservation and energy efficiency, and maximizing, to the extent feasible, use of indigenous energy sources; and “(C) drafting long-term energy transmission line plans for such insular areas with the objective that the maximum percentage feasible of electric power transmission and distribution lines in each insular area be protected from damage caused by hurricanes and typhoons. “(2) In carrying out this subsection, the Secretary of Energy shall identify and evaluate the strategies or projects with the greatest potential for reducing the dependence on imported fossil fuels as used for the generation of electricity, including strategies and projects for— “(A) improved supply-side efficiency of centralized electrical generation, transmission, and distribution systems; “(B) improved demand-side management through— “(i) the application of established standards for energy efficiency for appliances; “(ii) the conduct of energy audits for business and industrial customers; and “(iii) the use of energy savings performance contracts; “(C) increased use of renewable energy, including— “(i) solar thermal energy for electric generation; “(ii) solar thermal energy for water heating in large buildings, such as hotels, hospitals, government buildings, and residences; “(iii) photovoltaic energy; “(iv) wind energy; “(v) hydroelectric energy; “(vi) wave energy; “(vii) energy from ocean thermal resources, including ocean thermal-cooling for community air conditioning; “(viii) water vapor condensation for the production of potable water; “(ix) fossil fuel and renewable hybrid electrical generation systems; and “(x) other strategies or projects that the Secretary may identify as having significant potential; and “(D) fuel substitution and minimization with indigenous biofuels, such as coconut oil. “(3) In carrying out this subsection, for each insular area with a significant need for distributed generation, the Secretary of Energy shall identify and evaluate the most promising strategies and projects described in subparagraphs (C) and (D) of paragraph (2) for meeting that need. “(4) In assessing the potential of any strategy or project under paragraphs (2) and (3), the Secretary of Energy shall consider— “(A) the estimated cost of the power or energy to be produced, including— “(i) any additional costs associated with the distribution of the generation; and “(ii) the long-term availability of the generation source; “(B) the capacity of the local electrical utility to manage, operate, and maintain any project that may be undertaken; and “(C) other factors the Secretary of Energy considers to be appropriate. “(5) Deadline. Not later than 1 year after the date of enactment of this subsection, the Secretary of the Interior shall submit to the Committee on Energy and Natural Resources of the Senate, the Committee on Resources of the House of Representatives, and the Committee on Energy and Commerce of the House of Representatives, the updated plans for each insular area required by this subsection.” ; and (4) by amending subsection (g)(4) to read as follows: “(4) Power line grants for insular areas.— “(A) In general.— The Secretary of the Interior is authorized to make grants to governments of insular areas of the United States to carry out eligible projects to protect electric power transmission and distribution lines in such insular areas from damage caused by hurricanes and typhoons. “(B) Eligible projects.— The Secretary of the Interior may award grants under subparagraph (A) only to governments of insular areas of the United States that submit written project plans to the Secretary for projects that meet the following criteria: “(i) The project is designed to protect electric power transmission and distribution lines located in 1 or more of the insular areas of the United States from damage caused by hurricanes and typhoons. “(ii) The project is likely to substantially reduce the risk of future damage, hardship, loss, or suffering. “(iii) The project addresses 1 or more problems that have been repetitive or that pose a significant risk to public health and safety. “(iv) The project is not likely to cost more than the value of the reduction in direct damage and other negative impacts that the project is designed to prevent or mitigate. The cost benefit analysis required by this criterion shall be computed on a net present value basis. “(v) The project design has taken into consideration long-term changes to the areas and persons it is designed to protect and has manageable future maintenance and modification requirements. “(vi) The project plan includes an analysis of a range of options to address the problem it is designed to prevent or mitigate and a justification for the selection of the project in light of that analysis. “(vii) The applicant has demonstrated to the Secretary that the matching funds required by subparagraph (D) are available. “(C) Priority.— When making grants under this paragraph, the Secretary of the Interior shall give priority to grants for projects which are likely to— “(i) have the greatest impact on reducing future disaster losses; and “(ii) best conform with plans that have been approved by the Federal Government or the government of the insular area where the project is to be carried out for development or hazard mitigation for that insular area. “(D) Matching requirement.— The Federal share of the cost for a project for which a grant is provided under this paragraph shall not exceed 75 percent of the total cost of that project. The non-Federal share of the cost may be provided in the form of cash or services. “(E) Treatment of funds for certain purposes.— Grants provided under this paragraph shall not be considered as income, a resource, or a duplicative program when determining eligibility or benefit levels for Federal major disaster and emergency assistance. “(F) Authorization of appropriations.— There are authorized to be appropriated to carry out this paragraph $6,000,000 for each fiscal year beginning after the date of the enactment of this paragraph.” . SEC. 252. PROJECTS ENHANCING INSULAR ENERGY INDEPENDENCE. (a) Project Feasibilty Studies.— (1) In general.— On a request described in paragraph (2), the Secretary shall conduct a feasibility study of a project to implement a strategy or project identified in the plans submitted to Congress pursuant to section 604 of the Act entitled “An Act to authorize appropriations for certain insular areas of the United States, and for other purposes”, approved December 24, 1980 (48 U.S.C. 1492), as having the potential to— (A) significantly reduce the dependence of an insular area on imported fossil fuels; or (B) provide needed distributed generation to an insular area. (2) Request.— The Secretary shall conduct a feasibility study under paragraph (1) on— (A) the request of an electric utility located in an insular area that commits to fund at least 10 percent of the cost of the study; and (B) if the electric utility is located in the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau, written support for that request by the President or the Ambassador of the affected freely associated state. (3) Consultation.— The Secretary shall consult with regional utility organizations in— (A) conducting feasibility studies under paragraph (1); and (B) determining the feasibility of potential projects. (4) Feasibility.— For the purpose of a feasibility study under paragraph (1), a project shall be determined to be feasible if the project would significantly reduce the dependence of an insular area on imported fossil fuels, or provide needed distributed generation to an insular area, at a reasonable cost. (b) Implementation.— (1) In general.— On a determination by the Secretary (in consultation with the Secretary of the Interior) that a project is feasible under subsection (a) and a commitment by an electric utility to operate and maintain the project, the Secretary may provide such technical and financial assistance as the Secretary determines is appropriate for the implementation of the project. (2) Regional utility organizations.— In providing assistance under paragraph (1), the Secretary shall consider providing the assistance through regional utility organizations. (c) Authorization of Appropriations.— (1) In general.— There are authorized to be appropriated to the Secretary— (A) $500,000 for each fiscal year for project feasibility studies under subsection (a); and (B) $4,000,000 for each fiscal year for project implementation under subsection (b). (2) Limitation of funds received by insular areas.— No insular area may receive, during any 3-year period, more than 20 percent of the total funds made available during that 3-year period under subparagraphs (A) and (B) of paragraph (1) unless the Secretary determines that providing funding in excess of that percentage best advances existing opportunities to meet the objectives of this section.

   Effective date note
   Pub. L. 109–58, title II, § 223(c), Aug. 8, 2005, 119 Stat. 662, provided that: “The schedule of fees established under the amendment made by subsection (a)(4) [amending this section] shall apply with respect to payments under a lease converted under this subsection that are due and owing, and have been paid, on or after July 16, 2003. This subsection shall not require the refund of royalties paid to a State under section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of this Act [Aug. 8, 2005].”

3. 2005

   John Rishel Geothermal Steam Act Amendments of 2005

   Pub. L. 109–58 § 223(a)(4) · 119 Stat. 594

   Added · 30 U.S.C. § 1004(b)

   Pub. L. 109–58, § 223(a)(4), added subsec. (b)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 109–58, § 223(a)(4), added subsec. (b).

   Enacted provision · exact public law section
   (4) by adding at the end the following: “(b) Direct Use.— “(1) In general.— Notwithstanding Fees. subsection (a)(1), the Secretary shall establish a schedule of fees, in lieu of royalties for geothermal resources, that a lessee or its affiliate— “(A) uses for a purpose other than the commercial generation of electricity; and “(B) does not sell. “(2) Schedule of fees.— The schedule of fees— “(A) may be based on the quantity or thermal content, or both, of geothermal resources used; “(B) shall ensure a fair return to the United States for use of the resource; and “(C) shall encourage development of the resource. “(3) State, tribal, or local governments.— If a State, tribal, or local government is the lessee and uses geothermal resources without sale and for public purposes other than commercial generation of electricity, the Secretary shall charge only a nominal fee for use of the resource. “(4) Final regulation.— In issuing any final regulation establishing a schedule of fees under this subsection, the Secretary shall seek— “(A) to provide lessees with a simplified administrative system; “(B) to facilitate development of direct use of geothermal resources; and “(C) to contribute to sustainable economic development opportunities in the area.” .

   Effective date note
   Pub. L. 109–58, title II, § 223(c), Aug. 8, 2005, 119 Stat. 662, provided that: “The schedule of fees established under the amendment made by subsection (a)(4) [amending this section] shall apply with respect to payments under a lease converted under this subsection that are due and owing, and have been paid, on or after July 16, 2003. This subsection shall not require the refund of royalties paid to a State under section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of this Act [Aug. 8, 2005].”

4. 2005

   John Rishel Geothermal Steam Act Amendments of 2005

   Pub. L. 109–58 § 224(a)(2) · 119 Stat. 594

   Added · 30 U.S.C. § 1004(c); 30 U.S.C. § 1004(d)

   Pub. L. 109–58, § 224(a)(2), added subsecs. (c) and (d)

   Source evidence

   Code amendment note
   Subsecs. (c), (d). Pub. L. 109–58, § 224(a)(2), added subsecs. (c) and (d).

   Enacted provision · exact public law section
   (2) by adding at the end the following: “(c) Final Regulation Establishing Royalty Rates.— In issuing any final regulation establishing royalty rates under this section, the Secretary shall seek— “(1) to provide lessees a simplified administrative system; “(2) to encourage new development; and “(3) to achieve the same level of royalty revenues over a 10-year period as the regulation in effect on the date of enactment of this subsection. “(d) Credits for In-Kind Payments of Electricity.— The Secretary may provide to a lessee a credit against royalties owed under this Act, in an amount equal to the value of electricity provided under contract to a State or county government that is entitled to a portion of such royalties under section 20 of this Act, section 35 of the Mineral Leasing Act (30 U.S.C. 191), except as otherwise provided by this section, or section 6 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 355), if— “(1) the Secretary has approved in advance the contract between the lessee and the State or county government for such in-kind payments; “(2) the contract establishes a specific methodology to determine the value of such credits; and “(3) the maximum credit will be equal to the royalty value owed to the State or county that is a party to the contract and the electricity received will serve as the royalty payment from the Federal Government to that entity.” .

   Effective date note
   Pub. L. 109–58, title II, § 223(c), Aug. 8, 2005, 119 Stat. 662, provided that: “The schedule of fees established under the amendment made by subsection (a)(4) [amending this section] shall apply with respect to payments under a lease converted under this subsection that are due and owing, and have been paid, on or after July 16, 2003. This subsection shall not require the refund of royalties paid to a State under section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of this Act [Aug. 8, 2005].”

5. 2005

   John Rishel Geothermal Steam Act Amendments of 2005

   Pub. L. 109–58 § 230(4) · 119 Stat. 594

   Added · 30 U.S.C. § 1004(e)

   Pub. L. 109–58, § 230(4), added subsec. (e)

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 109–58, § 230(4), added subsec. (e).

   Enacted provision · exact public law section
   (4) by adding at the end the following: “(e) Crediting of Rental Toward Royalty.— Any annual rental under this section that is paid with respect to a lease before the first day of the year for which the annual rental is owed shall be credited to the amount of royalty that is required to be paid under the lease for that year.” .

   Effective date note
   Pub. L. 109–58, title II, § 223(c), Aug. 8, 2005, 119 Stat. 662, provided that: “The schedule of fees established under the amendment made by subsection (a)(4) [amending this section] shall apply with respect to payments under a lease converted under this subsection that are due and owing, and have been paid, on or after July 16, 2003. This subsection shall not require the refund of royalties paid to a State under section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of this Act [Aug. 8, 2005].”

6. 2005

   John Rishel Geothermal Steam Act Amendments of 2005

   Pub. L. 109–58 § 232 · 119 Stat. 594

   Added · 30 U.S.C. § 1004(f)

   Pub. L. 109–58, § 232, added subsec. (f)

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 109–58, § 232, added subsec. (f).

   Enacted provision · exact public law section
   SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.   Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by sections 223, 224, and 230) is further amended by adding at the end the following: “(f) Advanced Royalties Required for Cessation of Production.— “(1) In general.— Subject to paragraphs (2) and (3), if, at any time after commercial production under a lease is achieved, production ceases for any reason, the lease shall remain in full force and effect for a period of not more than an aggregate number of 10 years beginning on the date production ceases, if, during the period in which production is ceased, the lessee pays royalties in advance at the monthly average rate at which the royalty was paid during the period of production. “(2) Reduction.— The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advanced royalties paid under the lease to the extent that the advance royalties have not been used to reduce production royalties for a prior year. “(3) Exceptions.— Paragraph (1) shall not apply if the cessation in production is required or otherwise caused by— “(A) the Secretary; “(B) the Secretary of the Air Force; “(C) the Secretary of the Army; “(D) the Secretary of the Navy; “(E) a State or a political subdivision of a State; or “(F) a force majeure.” .

   Effective date note
   Pub. L. 109–58, title II, § 223(c), Aug. 8, 2005, 119 Stat. 662, provided that: “The schedule of fees established under the amendment made by subsection (a)(4) [amending this section] shall apply with respect to payments under a lease converted under this subsection that are due and owing, and have been paid, on or after July 16, 2003. This subsection shall not require the refund of royalties paid to a State under section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of this Act [Aug. 8, 2005].”

7. 2005

   John Rishel Geothermal Steam Act Amendments of 2005

   Pub. L. 109–58 § 233(b) · 119 Stat. 594

   Added · 30 U.S.C. § 1004(g)

   Pub. L. 109–58, § 233(b), added subsec. (g)

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 109–58, § 233(b), added subsec. (g).

   Enacted provision · exact public law section
   (b) Termination of Lease for Failure to Pay Rental.— Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by sections 223, 224, 230, and 232) is further amended by adding at the end the following: “(g) Termination of Lease for Failure to Pay Rental.— “(1) In general.— The Secretary shall terminate any lease with respect to which rental is not paid in accordance with this Act and the terms of the lease under which the rental is required, on the expiration of the 45-day period beginning on the date of the failure to pay the rental. “(2) Notification.— The Secretary shall promptly notify a lessee that has not paid rental required under the lease that the lease will be terminated at the end of the period referred to in paragraph (1). “(3) Reinstatement.— A lease that would otherwise terminate under paragraph (1) shall not terminate under that paragraph if the lessee pays to the Secretary, before the end of the period referred to in paragraph (1), the amount of rental due plus a late fee equal to 10 percent of the amount.” .

   Effective date note
   Pub. L. 109–58, title II, § 223(c), Aug. 8, 2005, 119 Stat. 662, provided that: “The schedule of fees established under the amendment made by subsection (a)(4) [amending this section] shall apply with respect to payments under a lease converted under this subsection that are due and owing, and have been paid, on or after July 16, 2003. This subsection shall not require the refund of royalties paid to a State under section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of this Act [Aug. 8, 2005].”

6 of 13 references resolved to an enrolled provision · 7 partial