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<PRE>[DOCID: f:s1930is.txt]






107th CONGRESS
  2d Session
                                S. 1930

             To promote the production of energy from wind.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 11, 2002

  Mr. Conrad introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
             To promote the production of energy from wind.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wind Energy Promotion Act of 2002''.

SEC. 2. 5-YEAR EXTENSION OF CREDIT FOR PRODUCING ELECTRICITY FROM WIND.

    (a) In General.--Section 45(c)(3)(A) of the Internal Revenue Code 
of 1986 (relating to wind facility) is amended by striking ``January 1, 
2002'' and inserting ``January 1, 2007''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2001.

SEC. 3. WIND ENERGY DEVELOPMENT ASSISTANCE PROGRAM.

    (a) In General.--The Secretary of Agriculture, acting through the 
Rural Business Cooperative Service (referred to in this section as the 
``Secretary''), in addition to exercising authority to make loans and 
loan guarantees under other law, shall establish a program under which 
the Secretary shall competitively make grants and low-interest loans to 
assist farmers and ranchers in projects in establishing new farmer or 
rancher cooperatives or other rural business ventures to construct wind 
energy facilities.
    (b) Ownership Requirement.--At least 50 percent of the interest in 
a rural business venture assisted with a grant or loan under subsection 
(a) shall be owned by farmers or ranchers.
    (c) Use of Assistance.--
            (1) Permitted uses.--Under subsection (a)--
                    (A) a recipient of a grant may use the grant funds 
                to develop a business plan or perform a feasibility 
                study to establish a viable marketing opportunity for 
                wind energy generation and sale; and
                    (B) a recipient of a loan may use the loan funds to 
                carry out a project described in subsection (a).
            (2) Prohibited uses.--A recipient of a grant or loan under 
        subsection (a) shall not use the grant or loan funds for 
        planning, repair, rehabilitation, acquisition, or construction 
        of a building or other facility.
    (d) Maximum Amount of Grants and Loans.--
            (1) Grants.--The amount of a grant made to a recipient 
        under subsection (a) shall not exceed $200,000 for a fiscal 
        year.
            (2) Loans.--
                    (A) Principal.--The amount of a loan made to a 
                recipient under subsection (a) shall not exceed 
                $10,000,000 for a fiscal year.
                    (B) Interest.--The amount of interest payable on a 
                loan made under subsection (a) shall not exceed 4 
                percent.
    (e) Cost Sharing.--The Federal share of the cost of a project 
assisted with a grant or loan under subsection (a) shall not exceed 50 
percent of the cost of the project.
    (f) Funding.--
            (1) In general.--On October 1, 2002, and each October 1 
        thereafter through October 1, 2006, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary to carry out this 
        section $20,000,000, to remain available until expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.

SEC. 4. INSTALLATION OF WIND TURBINES ON CONSERVATION RESERVE PROGRAM 
              LAND.

    Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended--
            (1) in subsection (a)(7)--
                    (A) by striking ``that the Secretary'' and 
                inserting ``that''; and
                    (B) in subparagraph (A)--
                            (i) by striking ``may permit'' and 
                        inserting ``the Secretary'';
                            (ii) in clause (i)--
                                    (I) by inserting ``may permit'' 
                                after ``(i)''; and
                                    (II) by striking ``and'' at the 
                                end;
                            (iii) in clause (ii), by inserting ``may 
                        permit'' after ``(ii)''; and
                            (iv) by adding at the end the following:
                            ``(iii) notwithstanding the amount of a 
                        base payment limited by section 1234(c)(2) and 
                        specified in a contract entered into under this 
                        chapter, shall reduce the amount of the base 
                        payment paid to an owner or operator of land on 
                        which 1 or more wind turbines are installed 
                        under subsection (f) by an amount determined by 
                        the Secretary to be commensurate with the value 
                        of the reduction of benefit gained by 
                        enrollment of the land in the conservation 
                        reserve program; and''; and
            (2) by adding at the end the following:
    ``(f) Wind Turbines.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may permit an owner or operator of land that is enrolled in the 
        conservation reserve program, but that is not enrolled under 
        continuous signup under section 1234(c)(2)(B), to install wind 
        turbines on the land.
            ``(2) Number; location.--The Secretary shall determine the 
        number and location of wind turbines  that may be installed on 
a tract of land under paragraph (1), taking into account--
                    ``(A) the location, size, and other physical 
                characteristics of the land;
                    ``(B) the extent to which the land contains 
                wildlife and wildlife habitat; and
                    ``(C) the purposes of the conservation reserve 
                program.''.

SEC. 5. ENHANCED WIND ENERGY RESEARCH AND DEVELOPMENT.

    (a) Program Direction.--The Secretary of Energy shall conduct a 
research, development, demonstration, and technology deployment program 
to enhance the use of wind energy.
    (b) Program Goals.--The goals of the wind energy program shall be 
to develop, in partnership with industry, a variety of advanced wind 
turbine designs and manufacturing technologies that are cost-
competitive with fossil-fuel generated electricity, with a focus on 
developing advanced low wind speed technologies that, by 2007, will 
enable the expanded use of widespread class 3 and 4 winds.
    (c) Rural and Remote Locations.--
            (1) In general.--In carrying out this section, the 
        Secretary of Energy shall demonstrate the use of advanced wind 
        power technology to assist in delivering electricity to rural 
        and remote locations.
            (2) Financial assistance.--In carrying out paragraph (1), 
        the Secretary of Energy may provide financial assistance to 
        rural electric cooperatives and other rural entities.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out research, 
development, demonstration, and technology deployment activities under 
this subtitle--
            (1) $100,000,000 for fiscal year 2003;
            (2) $125,000,000 for fiscal year 2004;
            (3) $135,000,000 for fiscal year 2005; and
            (4) $150,00
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0,000 for fiscal year 2006.

SEC. 6. REGULATORY REVIEWS.

    (a) Regulatory Reviews.--Not later than 1 year after the date of 
enactment of this Act and every 5 years thereafter, each Federal agency 
shall review regulations and standards promulgated by the agency to 
identify--
            (1) regulations and standards that act as barriers to--
                    (A) market entry for emerging wind energy 
                technologies; and
                    (B) market development and expansion for wind 
                energy technologies (including combined heat and power, 
                small-scale renewable energy, and energy recovery in 
                industrial processes); and
            (2) actions that the agency is taking or could take to 
        remove those barriers.
    (b) Reports.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, and every 5 years thereafter, the 
        Director of the Office of Science and Technology Policy shall 
        submit to Congress a report on the results of the agency 
        reviews conducted under subsection (a).
            (2) Contents.--A report under paragraph (1) shall--
                    (A) identify all regulatory barriers to--
                            (i) the development and commercialization 
                        of emerging wind energy technologies; and
                            (ii) the further development and expansion 
                        of wind energy conservation technologies;
                    (B) actions taken, or proposed to be taken, to 
                remove those barriers; and
                    (C) recommendations for changes in laws (including 
                regulations) needed to expedite the siting and 
                development of wind energy production and distribution 
                facilities.

SEC. 7. FEASIBILITY STUDY OF COMBINED WIND AND HYDROPOWER DEMONSTRATION 
              PROJECT.

    (a) Study.--The Secretary of Energy, in coordination with the 
Secretary of the Army and the Secretary of the Interior, shall conduct 
a study of the cost and feasibility of developing a demonstration 
project that would use wind energy generated by Indian tribes and 
hydropower generated by the Army Corps of Engineers at the Garrison Dam 
on the Missouri River to supply firming power to the Western Area Power 
Administration.
    (b) Participation by Tribal Engineer.--The Secretary of Energy 
shall include among the persons that conduct the study an independent 
tribal engineer.
    (c) Scope of Study.--The study shall--
            (1) determine the feasibility of the blending of wind 
        energy and hydropower generated from the Garrison Dam;
            (2) review historical purchase requirements and projected 
        purchase requirements for firming and the patterns of 
        availability and use of firming energy;
            (3) assess the wind energy resource potential on tribal 
        land and projected cost savings through a blend of wind and 
        hydropower over a 30-year period;
            (4) include a preliminary interconnection study and a 
        determination of resource adequacy of the Upper Great Plains 
        Region of the Western Area Power Administration; and
            (5) determine seasonal capacity needs and associated 
        transmission upgrades for integration of tribal wind 
        generation.
    (d) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy and Secretary of the Army shall 
submit to Congress a report that includes--
            (1) an analysis of the potential energy cost savings to the 
        customers of the Western Area Power Administration through the 
        blend of wind and hydropower;
            (2) an evaluation of whether a combined wind and hydropower 
        system can reduce reservoir fluctuation, enhance efficient and 
        reliable energy production and provide Missouri River 
        management flexibility;
            (3) recommendations for a demonstration project that the 
        Western Area Power Administration could carry out in 
        partnership with an Indian tribal government or tribal 
government energy consortium to demonstrate the feasibility and 
potential of using wind energy produced on Indian land to supply 
firming energy to the Western Area Power Administration or other 
Federal power marketing agency; and
            (4)(A) an identification of the economic and environmental 
        benefits to be realized through such a partnership; and
            (B) a description of how such a partnership could 
        contribute to the energy security of the United States.
    (e) Consultation.--The Secretary shall consult with Indian tribes 
in developing the report and recommendations under this section.
    (f) Costs Incurred by WAPA.--Any costs incurred by the Western Area 
Power Administration in connection with the implementation of this 
section shall be nonreimbursable.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000, to remain available 
until expended.

SEC. 8. WIND ENERGY ON FEDERAL LAND.

    (a) Definition of Federal Land.--In this section, the term 
``Federal land'' means land owned by the United States that
            (1) is subject to the mineral leasing laws; and
            (2) is--
                    (A) public land (as defined in section 103 of the 
                Federal Land Policy and Management Act of 1976 (42 
                U.S.C. 1702)); or
                    (B) a unit of the National Forest System (as 
                defined in section 11 of the Forest and Rangeland 
                Renewable Resources Planning Act of 1974 (16 U.S.C. 
                1609)).
    (b) Pilot Program.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of the Interior, in consultation 
with the Secretary of Agriculture and the Secretary of Energy, shall 
develop guidelines for a pilot program for the development of wind 
energy on Federal land.
    (c) Rights-Of-Way.--
            (1) In general.--The pilot program shall provide for the 
        issuance of rights-of-way under title V of the Federal Land 
        Policy and Management Act of 1976 (43 U.S.C. 1761 et seq.)--
                    (A) by the Secretary of the Interior with respect 
                to Federal land under the jurisdiction of the 
                Department of the Interior; and
                    (B) by the Secretary of Agriculture with respect to 
                Federal land under the jurisdiction of the Department 
                of Agriculture.
            (2) Eligible areas.--Rights-of-way shall be limited to 
        areas--
                    (A) that have high potential for wind energy 
                development;
                    (B) that are identified by the wind energy 
                industry, through a process of nominations or 
                otherwise, as being of particular interest to the 
                industry;
                    (C) that are not located in a roadless area;
                    (D) in which construction and operation of a wind 
                energy facility would be compatible with the scenic, 
                recreational, environmental, cultural, or historic 
                values of the Federal land and would not require the 
                construction of new roads for the siting of lines or 
                other transmission facilities; and
                    (E) in which issuance of a right-of-way is 
                consistent with the land and resource management plans 
                of the Federal agency that manages the land.
    (d) Financial Assistance.--The Secretary of Energy may provide 
financial assistance for a wind energy project in an amount that does 
not exceed 15 percent of the cost of the project.
    (e) Revision of Plans Governing Management of Federal Land.--
            (1) Secretary of the interior.--The Secretary of the 
        Interior shall consider development of wind ener
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gy in revisions 
        of land use plans under section 202 of the Federal Land Policy 
        and Management Act of 1976 (42 U.S.C. 1712).
            (2) Secretary of agriculture.--The Secretary of Agriculture 
        shall consider development of wind energy in revisions of land 
        and resource management plans under section 5 of the Forest and 
        Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 
        1604).
    (f) Report.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary of the Interior shall 
        submit to Congress a report on development of wind energy on 
        Federal land.
            (2) Contents.--The report under paragraph (1) shall 
        include--
                    (A) a 5-year plan developed by the Secretary of the 
                Interior, in cooperation with the Secretary of 
                Agriculture, for encouraging the development of wind 
                energy on Federal land in an environmentally sound 
                manner;
                    (B) analyses of--
                            (i) whether the use of rights-of-way is the 
                        best means of authorizing use of Federal land 
                        for the development of wind energy, or whether 
                        such resources could be better developed 
                        through a leasing system or any other means;
                            (ii) the desirability of grants, loans, tax 
                        credits, or other provisions to promote the 
                        development of wind energy on Federal land; and
                            (iii) any problems, including environmental 
                        concerns, that the Secretary of the Interior or 
                        the Secretary of Agriculture has encountered in 
                        managing wind energy projects on Federal land 
                        or believes is likely to arise in relation to 
                        the development of wind energy on Federal land;
                    (C) a list, developed in consultation with the 
                Secretary of Energy and the Secretary of Defense, of 
                land under the jurisdiction of the Department of Energy 
                or Department of Defense that would be suitable for 
                development for wind energy, and recommended statutory 
and regulatory mechanisms for development of wind energy;
                    (D) an analysis, developed in consultation with the 
                Secretary of Energy and the Secretary of Commerce, of 
                the potential for development of wind energy on the 
                outer continental shelf; and
                    (E) recommendations for any statutory or regulatory 
                changes that the Secretary of the Interior believes 
                would assist in the development of wind energy on 
                Federal land or on the outer continental shelf.

SEC. 9. ASSESSMENT OF WIND ENERGY RESOURCES AND TRANSMISSION CAPACITY.

    (a) In General.--The Secretary shall conduct an assessment of--
            (1) wind energy resources; and
            (2) transmission capacity for wind energy.
    (b) Requirements.--In carrying out subsection (a), the Secretary of 
Energy shall--
            (1)(A) review wind energy potential throughout the United 
        States; and
            (B) prepare an inventory of the available amount and 
        characteristics of that potential; and
            (2) identify the barriers to providing adequate 
        transmission of energy produced from wind and other remote 
        sources to current and emerging markets.
    (c) Report.--After completing the assessment under subsection (a), 
the Secretary of Energy shall submit to Congress a report that--
            (1) describes the results of the assessment;
            (2) makes recommendations for removing the barriers 
        identified under subsection (b)(2); and
            (3) describes means of providing access to the transmission 
        grid for wind energy in a way that does not unfairly 
        disadvantage wind energy producers or other energy producers.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000.
                                 &lt;all&gt;

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