H.R. 1335 — what changed
Transparency, Accountability, Permitting, and Production of American Resources Act
From Introduced in House to Reported in House. 13 sections amended and 4 added between Introduced in House and Reported in House.
Sec. 105 Administrative protest process reform
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is further amended by adding at the end the following:
“(s) Protest filing fee
“(1) In general—Before processing any protest filed under this section, the Secretary shall collect a filing fee in the amount described in paragraph (2) from the protestor to recover the cost for processing documents filed for each administrative protest.
“(2) Amount—The amount described in this paragraph is calculated as follows:
“(A) For each protest filed in a submission not exceeding 10 pages in length, the base filing fee shall be $150.
“(B) For each submission exceeding 10 pages in length, in addition to the base filing fee, an assessment of $5 per page in excess of 10 pages shall apply.
“(C) For protests that include more than one oil and gas lease parcel, right-of-way, or application for permit to drill in a submission, an additional assessment of $10 per additional lease parcel, right-of-way, or application for permit to drill shall apply.
“(3) Adjustment
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“(A) In general—Beginning on January 1, 2022, 2024, and annually thereafter, the Secretary shall adjust the filing fees established in this subsection to whole dollar amounts to reflect changes in the Producer Price Index, as published by the Bureau of Labor Statistics, for the previous 12 months.
“(B) Publication of adjusted filing fees—At least 30 days before the filing fees as adjusted under this paragraph take effect, the Secretary shall publish notification of the adjustment of such fees in the Federal Register.”
Sec. 106 Leasing and permitting transparency
“(t) Public availability of data
“(1) Expressions of interest—Not later than 30 days after the date of the enactment of this subsection, and each month thereafter, the Secretary shall publish on the website of the Department of the Interior the number of pending, approved, and not approved expressions of interest in nominated parcels for future onshore oil and gas lease sales in the preceding month.
“(2) Applications for permits to drill—Not later than 30 days after the date of the enactment of this subsection, and each month thereafter, the Secretary shall publish on the website of the Department of the Interior the number of pending and approved applications for permits to drill in the preceding month in each State office.
“(3) Past data—Not later than 30 days after the date of the enactment of this subsection, the Secretary shall publish on the website of the Department of the Interior, with respect to each month during the 5-year period ending on the date of the enactment of this subsection—
“(A) the number of approved and not approved expressions of interest for onshore oil and gas lease sales during such 5-year period; and
“(B) the number of approved and not approved applications for permits to drill during such 5-year period.”
“(q) Public availability of data
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“(1) Offshore geological and geophysical survey licenses—Not later than 30 days after the date of the enactment of this subsection, and each month thereafter, the Secretary shall publish on the website of the Department of the Interior the number of pending and approved applications for licenses for offshore to geological and geophysical surveys in the preceding month.
“(2) Applications for permits to drill—Not later than 30 days after the date of the enactment of this subsection, and each month thereafter, the Secretary shall publish on the website of the Department of the Interior the number of pending and approved applications for permits to drill on the outer Continental Shelf in the preceding month in each regional office.
“(3) Past data—Not later than 30 days after the date of the enactment of this subsection, the Secretary shall publish on the website of the Department of the Interior, with respect each month during the 5-year period ending on the date of the enactment of this subsection—
“(A) the number of approved applications for licenses for offshore geological and geophysical surveys; and
“(B) the number of approved applications for permits to drill on the outer Continental Shelf.”
Sec. 113 Prohibition on Chinese communist party ownership interest
addedadded Notwithstanding any other provision of law, the Communist Party of China (or a person acting on behalf of the Community Party of China) may not acquire any interest with respect to lands leased for oil or gas under the Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
Sec. 114 Effect on other law
addedadded Nothing in this Act, or any amendments made by this Act, shall affect—
Sec. 202 BUILDER Act
“(i) reasonably foreseeable environmental effects with a reasonably close causal relationship to the proposed agency action;
“(ii) any reasonably foreseeable adverse environmental effects which cannot be avoided should the proposal be implemented;
“(iii) a reasonable number of alternatives to the proposed agency action, including an analysis of any negative environmental impacts of not implementing the proposed agency action in the case of a no action alternative, that are technically and economically feasible, are within the jurisdiction of the agency, meet the purpose and need of the proposal, and, where applicable, meet the goals of the applicant;
“(iv) the relationship between local short-term uses of man's environment and the maintenance and enhancement of long-term productivity; and
“(v) any irreversible and irretrievable commitments of Federal resources which would be involved in the proposed agency action should it be implemented.”
“(D) ensure the professional integrity, including scientific integrity, of the discussion and analysis in an environmental document;
“(E) make use of reliable existing data and resources in carrying out this Act;”
“(G) consistent with the provisions of this Act, study, develop, and describe technically and economically feasible alternatives within the jurisdiction and authority of the agency;”
“106. Procedure for determination of level of review
“(a) Threshold determinations—An agency is not required to prepare an environmental document with respect to a proposed agency action if—
“(1) the proposed agency action is not a final agency action within the meaning of such term in chapter 5 of title 5, United States Code;
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“(2) the proposed agency action is covered by a categorical exclusion established by a the agency, another Federal agency agency, or by another provision of law;
“(3) the preparation of such document would clearly and fundamentally conflict with the requirements of another provision of law;
“(4) the proposed agency action is, in whole or in part, a nondiscretionary action with respect to which such agency does not have authority to take environmental factors into consideration in determining whether to take the proposed action;
“(5) the proposed agency action is a rulemaking that is subject to section 553 of title 5, United States Code; or
“(6) the proposed agency action is an action for which such agency’s compliance with another statute’s requirements serve the same or similar function as the requirements of this Act with respect to such action.
“(b) Levels of review
“(1) Environmental impact statement—An agency shall issue an environmental impact statement with respect to a proposed agency action that has a significant effect on the quality of the human environment.
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“(2) Environmental assessment—An agency shall prepare an environmental assessment with respect to a proposed agency action that is not likely to have a significant effect on the quality of the human environment, or if the significance of such effect is unknown. unknown, unless the agency finds that a categorical exclusion established by the agency, another Federal agency, or another provision of law applies. Such environmental assessment shall be a concise public document prepared by a Federal agency to set forth the basis of such agency’s finding of no significant impact.
“(3) Sources of information—In making a determination under this subsection, an agency—
“(A) may make use of any reliable data source; and
“(B) is not required to undertake new scientific or technical research.
“107. Timely and unified Federal reviews
“(a) Lead agency
“(1) Designation
“(A) In general—If there are two or more involved Federal agencies, such agencies shall determine, by letter or memorandum, which agency shall be the lead agency based on consideration of the following factors:
“(i) Magnitude of agency’s involvement.
“(ii) Project approval or disapproval authority.
“(iii) Expertise concerning the action’s environmental effects.
“(iv) Duration of agency’s involvement.
“(v) Sequence of agency’s involvement.
“(B) Joint lead agencies—In making a determination under subparagraph (A), the involved Federal agencies may, in addition to a Federal agency, appoint such Federal, State, Tribal, or local agencies as joint lead agencies as the involved Federal agencies shall determine appropriate. Joint lead agencies shall jointly fulfill the role described in paragraph (2).
“(C) Mineral projects—This paragraph shall not apply with respect to a mineral exploration or mine permit.
“(2) Role—A lead agency shall, with respect to a proposed agency action—
“(A) supervise the preparation of an environmental document if, with respect to such proposed agency action, there is more than one involved Federal agency;
“(B) request the participation of each cooperating agency at the earliest practicable time;
“(C) in preparing an environmental document, give consideration to any analysis or proposal created by a cooperating agency with jurisdiction by law or a cooperating agency with special expertise;
“(D) develop a schedule, in consultation with each involved cooperating agency, the applicant, and such other entities as the lead agency determines appropriate, for completion of any environmental review, permit, or authorization required to carry out the proposed agency action;
“(E) if the lead agency determines that a review, permit, or authorization will not be completed in accordance with the schedule developed under subparagraph (D), notify the agency responsible for issuing such review, permit, or authorization of the discrepancy and request that such agency take such measures as such agency determines appropriate to comply with such schedule; and
“(F) meet with a cooperating agency that requests such a meeting.
“(3) Cooperating agency—The lead agency may, with respect to a proposed agency action, designate any involved Federal agency or a State, Tribal, or local agency as a cooperating agency. A cooperating agency may, not later than a date specified by the lead agency, submit comments to the lead agency. Such comments shall be limited to matters relating to the proposed agency action with respect to which such agency has special expertise or jurisdiction by law with respect to an environmental issue.
“(4) Request for designation—Any Federal, State, Tribal, or local agency or person that is substantially affected by the lack of a designation of a lead agency with respect to a proposed agency action under paragraph (1) may submit a written request for such a designation to an involved Federal agency. An agency that receives a request under this paragraph shall transmit such request to each involved Federal agency and to the Council.
“(5) Council designation
“(A) Request—Not earlier than 45 days after the date on which a request is submitted under paragraph (4), if no designation has been made under paragraph (1), a Federal, State, Tribal, or local agency or person that is substantially affected by the lack of a designation of a lead agency may request that the Council designate a lead agency. Such request shall consist of—
“(i) a precise description of the nature and extent of the proposed agency action; and
“(ii) a detailed statement with respect to each involved Federal agency and each factor listed in paragraph (1) regarding which agency should serve as lead agency.
“(B) Transmission—The Council shall transmit a request received under subparagraph (A) to each involved Federal agency.
“(C) Response—An involved Federal agency may, not later than 20 days after the date of the submission of a request under subparagraph (A), submit to the Council a response to such request.
“(D) Designation—Not later than 40 days after the date of the submission of a request under subparagraph (A), the Council shall designate the lead agency with respect to the relevant proposed agency action.
“(b) One document
“(1) Document—To the extent practicable, if there are 2 or more involved Federal agencies with respect to a proposed agency action and the lead agency has determined that an environmental document is required, such requirement shall be deemed satisfied with respect to all involved Federal agencies if the lead agency issues such an environmental document.
“(2) Consideration timing—In developing an environmental document for a proposed agency action, no involved Federal agency shall be required to consider any information that becomes available after the sooner of, as applicable—
“(A) receipt of a complete application with respect to such proposed agency action; or
“(B) publication of a notice of intent or decision to prepare an environmental impact statement for such proposed agency action.
“(3) Scope of review—In developing an environmental document for a proposed agency action, the lead agency and any other involved Federal agencies shall only consider the effects of the proposed agency action that—
“(A) occur on Federal land; or
“(B) are subject to Federal control and responsibility.
“(c) Request for public comment—Each notice of intent to prepare an environmental impact statement under section 102 shall include a request for public comment on alternatives or impacts and on relevant information, studies, or analyses with respect to the proposed agency action.
“(d) Statement of purpose and need—Each environmental impact statement shall include a statement of purpose and need that briefly summarizes the underlying purpose and need for the proposed agency action.
“(e) Estimated total cost—The cover sheet for each environmental impact statement shall include a statement of the estimated total cost of preparing such environmental impact statement, including the costs of agency full-time equivalent personnel hours, contractor costs, and other direct costs.
“(f) Page limits
“(1) Environmental impact statements
“(A) In general—Except as provided in subparagraph (B), an environmental impact statement shall not exceed 150 pages, not including any citations or appendices.
“(B) Extraordinary complexity—An environmental impact statement for a proposed agency action of extraordinary complexity shall not exceed 300 pages, not including any citations or appendices.
“(2) Environmental assessments—An environmental assessment shall not exceed 75 pages, not including any citations or appendices.
“(g) Sponsor preparation—A lead agency shall allow a project sponsor to prepare an environmental assessment or an environmental impact statement upon request of the project sponsor. Such agency may provide such sponsor with appropriate guidance and assist in the preparation. The lead agency shall independently evaluate the environmental document and shall take responsibility for the contents upon adoption.
“(h) Deadlines
“(1) In general—Except as provided in paragraph (2), with respect to a proposed agency action, a lead agency shall complete, as applicable—
“(A) the environmental impact statement not later than the date that is 2 years after the sooner of, as applicable—
“(i) the date on which such agency determines that section 102(2)(C) requires the issuance of an environmental impact statement with respect to such action;
“(ii) the date on which such agency notifies the applicant that the application to establish a right-of-way for such action is complete; and
“(iii) the date on which such agency issues a notice of intent to prepare the environmental impact statement for such action; and
“(B) the environmental assessment not later than the date that is 1 year after the sooner of, as applicable—
“(i) the date on which such agency determines that section 106(b)(2) requires the preparation of an environmental assessment with respect to such action;
“(ii) the date on which such agency notifies the applicant that the application to establish a right-of-way for such action is complete; and
“(iii) the date on which such agency issues a notice of intent to prepare the environmental assessment for such action.
“(2) Delay—A lead agency that determines it is not able to meet the deadline described in paragraph (1) may extend such deadline with the approval of the applicant. If the applicant approves such an extension, the lead agency shall establish a new deadline that provides only so much additional time as is necessary to complete such environmental impact statement or environmental assessment.
“(3) Expenditures for delay—If a lead agency is unable to meet the deadline described in paragraph (1) or extended under paragraph (2), the lead agency must pay $100 per day, to the extent funding is provided in advance in an appropriations Act, out of the office of the head of the department of the lead agency to the applicant starting on the first day immediately following the deadline described in paragraph (1) or extended under paragraph (2) up until the date that an applicant approves a new deadline. This paragraph does not apply when the lead agency misses a deadline solely due to delays caused by litigation.
“(i) Report
“(1) In general—The head of each lead agency shall annually submit to the Committee on Natural Resources of the House of Representatives and the Committee on Environment and Public Works of the Senate a report that—
“(A) identifies any environmental assessment and environmental impact statement that such lead agency did not complete by the deadline described in subsection (h); and
“(B) provides an explanation for any failure to meet such deadline.
“(2) Inclusions—Each report submitted under paragraph (1) shall identify, as applicable—
“(A) the office, bureau, division, unit, or other entity within the Federal agency responsible for each such environmental assessment and environmental impact statement;
“(B) the date on which—
“(i) such lead agency notified the applicant that the application to establish a right-of-way for the major Federal action is complete;
“(ii) such lead agency began the scoping for the major Federal action; or
“(iii) such lead agency issued a notice of intent to prepare the environmental assessment or environmental impact statement for the major Federal action; and
“(C) when such environmental assessment and environmental impact statement is expected to be complete.
“108. Judicial review
“(a) Limitations on claims—Notwithstanding any other provision of law, a claim arising under Federal law seeking judicial review of compliance with this Act, of a determination made under this Act, or of Federal action resulting from a determination made under this Act, shall be barred unless—
“(1) in the case of a claim pertaining to a proposed agency action for which—
“(A) an environmental document was prepared and an opportunity for comment was provided;
“(B) the claim is filed by a party that participated in the administrative proceedings regarding such environmental document; and
“(C) the claim—
“(i) is filed by a party that submitted a comment during the public comment period for such administrative proceedings and such comment was sufficiently detailed to put the lead agency on notice of the issue upon which the party seeks judicial review; and
“(ii) is related to such comment;
“(2) except as provided in subsection (b), such claim is filed not later than 120 days after the date of publication of a notice in the Federal Register of agency intent to carry out the proposed agency action;
“(3) such claim is filed after the issuance of a record of decision or other final agency action with respect to the relevant proposed agency action;
“(4) such claim does not challenge the establishment or use of a categorical exclusion under section 102; and
“(5) such claim concerns—
“(A) an alternative included in the environmental document; or
“(B) an environmental effect considered in the environmental document.
“(b) Supplemental environmental impact statement
“(1) Separate final agency action—The issuance of a Federal action resulting from a final supplemental environmental impact statement shall be considered a final agency action for the purposes of chapter 5 of title 5, United States Code, separate from the issuance of any previous environmental impact statement with respect to the same proposed agency action.
“(2) Deadline for filing a claim—A claim seeking judicial review of a Federal action resulting from a final supplemental environmental review issued under section 102(2)(C) shall be barred unless—
“(A) such claim is filed within 120 days of the date on which a notice of the Federal agency action resulting from a final supplemental environmental impact statement is issued; and
“(B) such claim is based on information contained in such supplemental environmental impact statement that was not contained in a previous environmental document pertaining to the same proposed agency action.
“(c) Prohibition on injunctive relief—Notwithstanding any other provision of law, a violation of this Act shall not constitute the basis for injunctive relief.
“(d) Rule of construction—Nothing in this section shall be construed to create a right of judicial review or place any limit on filing a claim with respect to the violation of the terms of a permit, license, or approval.
“(e) Remand—Notwithstanding any other provision of law, no proposed agency action for which an environmental document is required shall be vacated or otherwise limited, delayed, or enjoined unless a court concludes allowing such proposed action will pose a risk of an imminent and substantial environmental harm and there is no other equitable remedy available as a matter of law.
“109. Definitions
“In this title:
“(1) Categorical exclusion—The term categorical exclusion means a category of actions that a Federal agency has determined normally does not significantly affect the quality of the human environment within the meaning of section 102(2)(C).
“(2) Cooperating agency—The term cooperating agency means any Federal, State, Tribal, or local agency that has been designated as a cooperating agency under section 107(a)(3).
“(3) Council—The term Council means the Council on Environmental Quality established in title II.
“(4) Environmental assessment—The term environmental assessment means an environmental assessment prepared under section 106(b)(2).
“(5) Environmental document—The term environmental document means an environmental impact statement, an environmental assessment, or a finding of no significant impact.
“(6) Environmental impact statement—The term environmental impact statement means a detailed written statement that is required by section 102(2)(C).
“(7) Finding of no significant impact—The term finding of no significant impact means a determination by a Federal agency that a proposed agency action does not require the issuance of an environmental impact statement.
“(8) Involved Federal agency—The term involved Federal agency means an agency that, with respect to a proposed agency action—
“(A) proposed such action; or
“(B) is involved in such action because such action is directly related, through functional interdependence or geographic proximity, to an action such agency has taken or has proposed to take.
“(9) Lead agency
“(A) In general—Except as provided in subparagraph (B), the term lead agency means, with respect to a proposed agency action—
“(i) the agency that proposed such action; or
“(ii) if there are 2 or more involved Federal agencies with respect to such action, the agency designated under section 107(a)(1).
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“(B) Specification for mineral exploration or mine permits—With respect to a proposed mineral exploration or mine permit, the term ‘lead agency’ lead agency has the meaning given such term in section 40206(a) of the Infrastructure Investment and Jobs Act.
“(10) Major Federal action
“(A) In general—The term major Federal action means an action that the agency carrying out such action determines is subject to substantial Federal control and responsibility.
“(B) Exclusion—The term major Federal action does not include—
“(i) a non-Federal action—
“(I) with no or minimal Federal funding;
“(II) with no or minimal Federal involvement where a Federal agency cannot control the outcome of the project; or
“(III) that does not include Federal land;
“(ii) funding assistance solely in the form of general revenue sharing funds which do not provide Federal agency compliance or enforcement responsibility over the subsequent use of such funds;
“(iii) loans, loan guarantees, or other forms of financial assistance where a Federal agency does not exercise sufficient control and responsibility over the effect of the action;
“(iv) farm ownership and operating loan guarantees by the Farm Service Agency pursuant to sections 305 and 311 through 319 of the Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1925 and 1941 through 1949);
“(v) business loan guarantees provided by the Small Business Administration pursuant to section 7(a) or (b) and of the Small Business Act (15 U.S.C. 636(a)), or title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.);
“(vi) bringing judicial or administrative civil or criminal enforcement actions; or
“(vii) extraterritorial activities or decisions, which means agency activities or decisions with effects located entirely outside of the jurisdiction of the United States.
“(C) Additional exclusions—An agency action may not be determined to be a major Federal action on the basis of—
“(i) an interstate effect of the action or related project; or
“(ii) the provision of Federal funds for the action or related project.
“(11) Mineral exploration or mine permit—The term mineral exploration or mine permit has the meaning given such term in section 40206(a) of the Infrastructure Investment and Jobs Act.
“(12) Proposal—The term proposal means a proposed action at a stage when an agency has a goal, is actively preparing to make a decision on one or more alternative means of accomplishing that goal, and can meaningfully evaluate its effects.
“(13) Reasonably foreseeable—The term reasonably foreseeable means likely to occur—
“(A) not later than 10 years after the lead agency begins preparing the environmental document; and
“(B) in an area directly affected by the proposed agency action such that an individual of ordinary prudence would take such occurrence into account in reaching a decision.
“(14) Special expertise—The term special expertise means statutory responsibility, agency mission, or related program experience.”
Sec. 204 Non-major Federal actions
Sec. 208 Terms of rights-of-way
“(e) Any right-of-way granted, issued, amended, or renewed under subsection (a)(4) may be limited to a term of not more than 50 years before such right-of-way is subject to renewal or amendment.”
Sec. 209 Funding to process permits and develop information technology
Sec. 212 Processing and terms of applications for permits to drill
“(4) Effect of pending civil action on processing applications for permits to drill—Pursuant to the requirements of paragraph (2), notwithstanding the existence of any pending civil actions affecting the application or related lease, the Secretary shall process an application for a permit to drill or other authorizations or approvals under a valid existing lease, unless a United States Federal court vacated such lease. Nothing in this paragraph shall be construed as providing authority to a Federal court to vacate a lease.”
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“(u) Term of permit To to drill—A permit to drill issued under this section after the date of the enactment of this subsection shall be valid for one four-year term from the date that the permit is approved, or until the lease regarding which the permit is issued expires, whichever occurs first.”
Sec. 220 E-Nepa
addedSec. 302 Minerals supply chain and reliability
Section 40206 of the Infrastructure Investment and Jobs Act (30 U.S.C. 1607) is amended—
“(a) Definitions—In this section:
“(1) Lead agency—The term lead agency means the Federal agency with primary responsibility for issuing a mineral exploration or mine permit or lease for a mineral project.
“(2) Mineral—The term mineral has the meaning given such term in section 301 of the TAPP American Resources Act.
“(3) Mineral exploration or mine permit—The term mineral exploration or mine permit means—
“(A) an authorization of the Bureau of Land Management or the Forest Service, as applicable, for exploration for minerals that requires analysis under the National Environmental Policy Act of 1969;
“(B) a plan of operations for a mineral project approved by the Bureau of Land Management or the Forest Service; or
“(C) any other Federal permit or authorization for a mineral project.
“(4) Mineral project—The term mineral project means a project—
“(A) located on—
“(i) a mining claim, millsite claim, or tunnel site claim for any mineral;
“(ii) lands open to mineral entry; or
“(iii) a Federal mineral lease; and
“(B) for the purposes of exploring for or producing minerals.”
“(10) deferring to and relying on baseline data, analyses, and reviews performed by State agencies with jurisdiction over the environmental or reclamation permits for the proposed mineral project.”
“(h) Other requirements
changed “(1) Memorandum of agreement—For purposes of maximizing efficiency and effectiveness of the Federal permitting and review processes described under subsection (c), the lead agency in the Federal permitting and review processes of a mineral project shall (in consultation with any other Federal agency involved in such Federal permitting and review processes, and upon request of the project applicant, an affected State government, local government, or an Indian Tribe, or other entity such lead agency determines appropriate) enter into a memorandum of agreement with a project applicant where requested by the applicant to carry out the activities described in subsection (c).
“(2) Timelines and schedules for NEPA reviews
“(A) Extension—A project applicant may enter into 1 or more agreements with a lead agency to extend the deadlines described in subparagraphs (A) and (B) of subsection (h)(1) of section 107 of title I of the National Environmental Policy Act of 1969 by, with respect to each such agreement, not more than 6 months.
“(B) Adjustment of timelines—At the request of a project applicant, the lead agency and any other entity which is a signatory to a memorandum of agreement under paragraph (1) may, by unanimous agreement, adjust—
“(i) any deadlines described in subparagraph (A); and
“(ii) any deadlines extended under subparagraph (B).
“(3) Effect on pending applications—Upon a written request by a project applicant, the requirements of this subsection shall apply to any application for a mineral exploration or mine permit or mineral lease that was submitted before the date of the enactment of the TAPP American Resources Act.”
Sec. 305 Treatment of actions under presidential determination 2022–11 for Federal permitting improvement purposes
Sec. 309 Barring foreign bad actors from operating on Federal lands
addedadded A mining claimant shall be barred from the right to use, occupy, and conduct operations on Federal land if the Secretary of the Interior finds the claimant has a foreign parent company that has (including through a subsidiary)—
Sec. 401 Federal land use planning and withdrawals
Sec. 501 Incentivizing domestic production
“(d) All leases issued under this section, as amended by the Federal Onshore Oil and Gas Leasing Reform Act of 1987, shall be conditioned upon payment by the lessee of a rental of not less than $1.50 per acre per year for the first through fifth years of the lease and not less than $2 per acre per year for each year thereafter. A minimum royalty in lieu of rental of not less than the rental which otherwise would be required for that lease year shall be payable at the expiration of each lease year beginning on or after a discovery of oil or gas in paying quantities on the lands leased.”
“(3)
“(A) If the United States held a vested future interest in a mineral estate that, immediately prior to becoming a vested present interest, was subject to a lease under which oil or gas was being produced, or had a well capable of producing, in paying quantities at an annual average production volume per well per day of either not more than 15 barrels per day of oil or condensate, or not more than 60,000 cubic feet of gas, the holder of the lease may elect to continue the lease as a noncompetitive lease under subsection (c)(1).
“(B) An election under this paragraph is effective—
“(i) in the case of an interest which vested after January 1, 1990, and on or before October 24, 1992, if the election is made before the date that is 1 year after October 24, 1992;
“(ii) in the case of an interest which vests within 1 year after October 24, 1992, if the election is made before the date that is 2 years after October 24, 1992; and
“(iii) in any case other than those described in clause (i) or (ii), if the election is made prior to the interest becoming a vested present interest.”
“(c) Lands subject to leasing under subsection (b); first qualified applicant
“(1) If the lands to be leased are not leased under subsection (b)(1) of this section or are not subject to competitive leasing under subsection (b)(2) of this section, the person first making application for the lease who is qualified to hold a lease under this chapter shall be entitled to a lease of such lands without competitive bidding, upon payment of a non-refundable application fee of at least $75. A lease under this subsection shall be conditioned upon the payment of a royalty at a rate of 12.5 percent in amount or value of the production removed or sold from the lease. Leases shall be issued within 60 days of the date on which the Secretary identifies the first responsible qualified applicant.
“(2)
“(A) Lands (i) which were posted for sale under subsection (b)(1) of this section but for which no bids were received or for which the highest bid was less than the national minimum acceptable bid and (ii) for which, at the end of the period referred to in subsection (b)(1) of this section no lease has been issued and no lease application is pending under paragraph (1) of this subsection, shall again be available for leasing only in accordance with subsection (b)(1) of this section.
“(B) The land in any lease which is issued under paragraph (1) of this subsection or under subsection (b)(1) of this section which lease terminates, expires, is cancelled or is relinquished shall again be available for leasing only in accordance with subsection (b)(1) of this section.”
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“(e) Primary term—Competitive and noncompetitive leases issued under this section shall be for a primary term of 10 years: Provided, however, That competitive leases issued in special tar sand areas shall also be for a primary term of ten 10 years. Each such lease shall continue so long after its primary term as oil or gas is produced in paying quantities. Any lease issued under this section for land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced prior to the end of its primary term and are being diligently prosecuted at that time shall be extended for two years and so long thereafter as oil or gas is produced in paying quantities.”
“(3)
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“(A) payment of back royalties and the inclusion in a reinstated lease issued pursuant to the provisions of section 17(b) of this Act of a requirement for future royalties at a rate of not less than 162/3 percent computed on a sliding scale based upon the average production per well per day, at a rate which shall be not less than 4 percentage points greater than the competitive royality royalty schedule then in force and used for royalty determination for competitive leases issued pursuant to such section as determined by the Secretary: Provided, That royalty on such reinstated lease shall be paid on all production removed or sold from such lease subsequent to the termination of the original lease;
“(B) payment of back royalties and inclusion in a reinstated lease issued pursuant to the provisions of section 17(c) of this Act of a requirement for future royalties at a rate not less than 162/3 percent: Provided, That royalty on such reinstated lease shall be paid on all production removed or sold from such lease subsequent to the cancellation or termination of the original lease; and”
“(2) Except as otherwise provided in this section, the issuance of a lease in lieu of an abandoned patented oil placer mining claim shall be treated as a noncompetitive oil and gas lease issued pursuant to section 17(c) of this Act.”
“(h) Royalty reductions
“(1) In acting on a petition to issue a noncompetitive oil and gas lease, under subsection (f) of this section or in response to a request filed after issuance of such a lease, or both, the Secretary is authorized to reduce the royalty on such lease if in his judgment it is equitable to do so or the circumstances warrant such relief due to uneconomic or other circumstances which could cause undue hardship or premature termination of production.
“(2) In acting on a petition for reinstatement pursuant to subsection (d) of this section or in response to a request filed after reinstatement, or both, the Secretary is authorized to reduce the royalty in that reinstated lease on the entire leasehold or any tract or portion thereof segregated for royalty purposes if, in his judgment, there are uneconomic or other circumstances which could cause undue hardship or premature termination of production; or because of any written action of the United States, its agents or employees, which preceded, and was a major consideration in, the lessee's expenditure of funds to develop the property under the lease after the rent had become due and had not been paid; or if in the judgment of the Secretary it is equitable to do so for any reason.”
changed
“(f) Issuance of noncompetitive oil and gas lease; conditions—Where an unpatented oil placer mining claim validly located prior to February 24, 1920, which has been or is currently producing or is capable of producing oil or gas, has been or is hereafter deemed conclusively abandoned for failure to file timely the required instruments or copies of instruments required by section 1744 of title 43, and it is shown to the satisfaction of the Secretary that such failure was inadvertent, justifiable, or not due to lack of reasonable diligence on the part of the owner, the Secretary may issue, for the lands covered by the abandoned unpatented oil placer mining claim, a noncompetitive oil and gas lease, consistent with the provisions of section 17(e) of this Act, to be effective from the statutory date the claim was deemed conclusively abandoned. Issuance of such a lease shall be conditioned upon—upon:
“(1) a petition for issuance of a noncompetitive oil and gas lease, together with the required rental and royalty, including back rental and royalty accruing from the statutory date of abandonment of the oil placer mining claim, being filed with the Secretary- (A) with respect to any claim deemed conclusively abandoned on or before January 12, 1983, on or before the one hundred and twentieth day after January 12, 1983, or (B) with respect to any claim deemed conclusively abandoned after January 12, 1983, on or before the one hundred and twentieth day after final notification by the Secretary or a court of competent jurisdiction of the determination of the abandonment of the oil placer mining claim;
“(2) a valid lease not having been issued affecting any of the lands covered by the abandoned oil placer mining claim prior to the filing of such petition: Provided, however, That after the filing of a petition for issuance of a lease under this subsection, the Secretary shall not issue any new lease affecting any of the lands covered by such abandoned oil placer mining claim for a reasonable period, as determined in accordance with regulations issued by him;
“(3) a requirement in the lease for payment of rental, including back rentals accruing from the statutory date of abandonment of the oil placer mining claim, of not less than $5 per acre per year;
“(4) a requirement in the lease for payment of royalty on production removed or sold from the oil placer mining claim, including all royalty on production made subsequent to the statutory date the claim was deemed conclusively abandoned, of not less than 121/2 percent; and
“(5) compliance with the notice and reimbursement of costs provisions of paragraph (4) of subsection (e) but addressed to the petition covering the conversion of an abandoned unpatented oil placer mining claim to a noncompetitive oil and gas lease.”
Sec. 601 Gulf of Mexico Outer Continental Shelf revenue
added “(f) Treatment of amounts—Amounts disbursed to a Gulf producing State under this section shall be treated as revenue sharing and not as a Federal award or grant for the purposes of part 200 of title 2, Code of Federal Regulations.”
Sec. 602 Parity in offshore wind revenue sharing
“(A) In general—Subject to subparagraphs (B) and (C), the Secretary”
“(B) Disposition of revenues for projects located within 3 nautical miles seaward of state submerged land—The Secretary”
“(C) Disposition of revenues for offshore wind projects in certain areas
“(i) Definitions—In this subparagraph:
“(I) Covered offshore wind project—The term covered offshore wind project means a wind powered electric generation project in a wind energy area on the outer Continental Shelf that is not wholly or partially located within an area subject to subparagraph (B).
“(II) Eligible State—The term eligible State means a State a point on the coastline of which is located within 75 miles of the geographic center of a covered offshore wind project.
“(III) Qualified outer Continental Shelf revenues—The term qualified outer Continental Shelf revenues means all royalties, fees, rentals, bonuses, or other payments from covered offshore wind projects carried out pursuant to this subsection on or after the date of enactment of this subparagraph.
“(ii) Requirement
“(I) In general—The Secretary of the Treasury shall deposit—
“(aa) 12.5 percent of qualified outer Continental Shelf revenues in the general fund of the Treasury;
“(bb) 37.5 percent of qualified outer Continental Shelf revenues in the North American Wetlands Conservation Fund; and
“(cc) 50 percent of qualified outer Continental Shelf revenues in a special account in the Treasury from which the Secretary shall disburse to each eligible State an amount determined pursuant to subclause (II).
“(II) Allocation
“(aa) In general—Subject to item (bb), for each fiscal year beginning after the date of enactment of this subparagraph, the amount made available under subclause (I)(cc) shall be allocated to each eligible State in amounts (based on a formula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each eligible State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract.
“(bb) Minimum Allocation—The amount allocated to an eligible State each fiscal year under item (aa) shall be at least 10 percent of the amounts made available under subclause (I)(cc).
“(cc) Payments to Coastal Political Subdivisions
“(AA) In general—The Secretary shall pay 20 percent of the allocable share of each eligible State, as determined pursuant to item (aa), to the coastal political subdivisions of the eligible State.
“(BB) Allocation—The amount paid by the Secretary to coastal political subdivisions under subitem (AA) shall be allocated to each coastal political subdivision in accordance with subparagraphs (B) and (C) of section 31(b)(4) of this Act.
“(iii) Timing—The amounts required to be deposited under subclause (I) of clause (ii) for the applicable fiscal year shall be made available in accordance with such subclause during the fiscal year immediately following the applicable fiscal year.
“(iv) Authorized uses
“(I) In general—Subject to subclause (II), each eligible State shall use all amounts received under clause (ii)(II) in accordance with all applicable Federal and State laws, only for 1 or more of the following purposes:
“(aa) Projects and activities for the purposes of coastal protection and resiliency, including conservation, coastal restoration, estuary management, beach nourishment, hurricane and flood protection, and infrastructure directly affected by coastal wetland losses.
“(bb) Mitigation of damage to fish, wildlife, or natural resources, including through fisheries science and research.
“(cc) Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.
“(dd) Mitigation of the impact of outer Continental Shelf activities through the funding of onshore infrastructure projects.
“(ee) Planning assistance and the administrative costs of complying with this section.
added “(ff) Infrastructure improvements at ports, including modifications to Federal navigation channels, to support installation of offshore wind energy projects.
“(II) Limitation—Of the amounts received by an eligible State under clause (ii)(II), not more than 3 percent shall be used for the purposes described in subclause (I)(ee).
“(v) Administration—Subject to clause (vi)(III), amounts made available under items (aa) and (cc) of clause (ii)(I) shall—
“(I) be made available, without further appropriation, in accordance with this subparagraph;
“(II) remain available until expended; and
“(III) be in addition to any amount appropriated under any other Act.
“(vi) Reporting requirement
“(I) In general—Not later than 180 days after the end of each fiscal year, the Governor of each eligible State that receives amounts under clause (ii)(II) for the applicable fiscal year shall submit to the Secretary a report that describes the use of the amounts by the eligible State during the period covered by the report.
“(II) Public availability—On receipt of a report submitted under subclause (I), the Secretary shall make the report available to the public on the website of the Department of the Interior.
added “(III) Limitation—If the Governor of an eligible State that receives amounts under clause (ii)(II) fails to submit the report required under subclause (I) by the deadline specified in that subclause, any amounts that would otherwise be provided to the eligible State under clause (ii)(II) for the succeeding fiscal year shall be deposited in the Treasury.
added “(vii) Treatment of amounts—Amounts disbursed to an eligible State under this subsection shall be treated as revenue sharing and not as a Federal award or grant for the purposes of part 200 of title 2, Code of Federal Regulations.”
added “(b) Wind lease sale procedure—Any wind lease granted pursuant to this section shall be considered a wind lease granted under section 8(p), including for purposes of the disposition of revenues pursuant to subparagraphs (B) and (C) of section 8(p)(2).”
removed
“(III) Limitation—If the Governor of an eligible State that receives amounts under clause (ii)(II) fails to submit the report required under subclause (I) by the deadline specified in that subclause, any amounts that would otherwise be provided to the eligible State under clause (ii)(II) for the succeeding fiscal year shall be deposited in the Treasury.”