Lower Energy Costs Act

(Sec. 20101) The Department of the Interior must immediately resume quarterly sales of leases of onshore federal land for oil and gas development as specified by the section.

Interior must conduct a minimum of four oil and gas lease sales in each state with land available for oil and gas leasing under mineral leasing law. If a lease sale is canceled, delayed, or deferred, then Interior must conduct a replacement sale. Interior must also conduct a replacement sale if during the original lease sale the percentage of acreage that does not receive a bid is equal to or greater than 25% of the acreage offered.

(Sec. 20102) This section specifies that if the Interior reinstates a lease entered into under the Mineral Leasing Act or the Geothermal Steam Act of 1970, then the lease is not considered a major federal action under the National Environmental Policy Act of 1969 (NEPA). Thus, such an action does not trigger environmental review requirements under such act.

(Sec. 20103) Interior must resolve any protest to a lease sale under the Mineral Leasing Act within 60 days after the lease holder makes the annual rental payment for the first lease year.

(Sec. 20104) Upon the request of an owner of an oil and gas lease, Interior must grant a permit for the suspension of operations if the lease owner has expressed interest for certain adjacent acreage that has not yet been offered in a lease sale by Interior.

(Sec. 20105) Interior must collect a filing fee from a protestor of a lease sale before processing any protest filed under the Mineral Leasing Act.

(Sec. 20106) This section establishes requirements concerning completed applications to drill for oil and gas that are pending on the date of this section's enactment. Within 30 days of the enactment, Interior must (1) complete all requirements under NEPA and other applicable law that must be met before it may issue the permits, and (2) issue a permit for all completed applications to drill that are still pending.

This section also creates a variety of requirements for Interior to report on and publish data concerning leases and permits to develop oil, gas, and geothermal energy.

(Sec. 20107) By September 30, 2023, Interior must conduct all the lease sales described in the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program that have not yet been conducted.

This section also requires Interior to annually conduct a minimum of two region-wide oil and gas lease sales in the Central Gulf of Mexico Planning Area and the Western Gulf of Mexico Planning Area. In addition, Interior must annually conduct a minimum of two region-wide oil and gas lease sales in the Alaska region of the Outer Continental Shelf, as described in the program.

(Sec. 20108) By July 1, 2023, Interior must (1) issue a five-year oil and gas leasing program under the Outer Continental Shelf Lands Act for 2023-2028, and (2) issue the record of decision on the final programmatic environmental impact statement. Interior must approve each subsequent five-year oil and gas leasing program no later than 180 days before the expiration of the previous program.

(Sec. 20109) Interior must increase the frequency of lease sales under the Geothermal Steam Act of 1970 in any state that has pending nominations of land to be leased from qualified companies or individuals. Currently, Interior must hold lease sales at least once every two years. This section requires Interior to hold a sale at least once a year.

If a lease sale is canceled or delayed, then Interior must conduct a replacement sale during the same year.

In addition, this section requires Interior to notify an applicant whether or not its application for a geothermal drilling permit is complete within 30 days of receiving the application. If Interior determines that the application is complete, then it must issue a final decision on the applications within 30 days of the date Interior sent the notification.

(Sec. 20110) This section revises the environmental review of certain pending applications to lease land under a program administered by the Bureau of Land Management (BLM) to mine coal. As soon as practicable, Interior must

- publish a draft environmental assessment for each qualified application if a draft hasn't already been published,

- finalize the fair market value of the coal tract for which a lease application is pending,

- grant a qualified application that is pending, and

- grant any additional approvals needed for previously awarded coal leases in order for mining activities to commence.

(Sec. 20111) This section nullifies Secretarial Order 3338 issued by Interior on January 15, 2016, and titled Discretionary Programmatic Environmental Impact Statement to Modernize the Federal Coal Program. The order directed the BLM to conduct a broad, programmatic review of its federal coal program through preparation of a programmatic environmental impact statement under NEPA and to pause issuance of certain coal leases during the review.

(Sec. 20112) Interior and the National Forest Service must annually report on their staffing capacity and plans to ensure adequate resources to process and issue oil, gas, hardrock mining, coal, and renewable energy leases, rights-of-way, claims, easements, and permits.

(Sec. 20113) This section bans the Communist Party of China, any person acting on behalf of the party, or any entity owned by or subject to the jurisdiction of China from acquiring any interest with respect to (1) lands leased for oil or gas under the Mineral Leasing Act or the Outer Continental Shelf Lands Act, (2) farmland, (3) lands used for renewable energy production, or (4) claims subject to the General Mining Law of 1872.

(Sec. 20114) This section specifies that this division does not affect the following presidential memoranda: the September 8, 2020, Memorandum on Withdrawal of Certain Areas of the United States Outer Continental Shelf From Leasing Disposition, the September 25, 2020, Memorandum on Withdrawal of Certain Areas of theUnited States Outer Continental Shelf From Leasing Disposition, and the 2016 Memorandum on Withdrawal of Certain Areas off the Atlantic Coast on the Outer Continental Shelf from Leasing Disposition. It also specifies that thi division does not affect the ban on oil and gas development in the Great Lakes as described in the Energy Policy Act of 2005.

(Sec. 20115) The Government Accountability Office (GAO) must publish a report on all potential adverse effects of wind energy development in the Eastern Gulf of Mexico Planning Area, the South Atlantic Planning Area, and the Straits of Florida Planning Area before Interior may (1) publish a notice for a sale for a lease on public land to develop wind energy offshore, or (2) hold a lease sale for such development.

(Sec. 20116) This section expresses the sense of Congress that infrastructure for U.S. development of wind energy should be constructed with materials produced and manufactured in the United States.

(Sec. 20117) This section expresses the sense of Congress that the royalty rate for onshore Federal oil and gas leases should be not more than 12.5% in amount or value of the production removed or sold from the lease.

(Sec. 20118) The GAO must assess the sufficiency of the environmental review processes of relevant federal agencies for offshore wind projects.

(Sec. 20119) The GAO must report on all potential adverse effects of wind energy development in the North Atlantic Planning Area.

(Sec. 20201) This section defines the terms used in this title. It defines public land to mean any land and interest in land owned by the United States and administered by Interior or the Forest Service without regard to how the United States acquired ownership, except (1) lands located on the Outer Continental Shelf (OCS); and (2) lands held in trust by the United States for the benefit of Indians, Indian tribes, Aleuts, and Eskimos.

(Sec. 20202) This section limits the scope of the administrative and judicial review of major federal actions under NEPA and generally expedites the review process. Under NEPA, agencies must conduct an environmental assessment (EA) to determine if a proposed federal action will have significant environmental impacts. If the EA determines that such impacts will be significant, then the agency must submit an Environmental Impact Statement (EIS). The EIS must include a range of alternatives to the proposed action.

Among other requirements, this section limits the scope of NEPA review to reasonably foreseeable environmental effects with a reasonably close causal relationship to the proposed agency action. In addition, agencies must only consider the effects of the action that occur on federal land, or are subject to federal control and responsibilities.

This section also limits alternatives in an EIS to a reasonable number. Further, the alternatives included in the EIS must be technically and economically feasible and within the jurisdiction and authority of the agency.

In addition, this section enumerates when an agency is not required to prepare an EIS.

An EIS must include the estimated total cost of preparing such EIS, including the costs of agency full-time equivalent personnel hours, contractor costs, and other direct costs. An EA or EIS must also be under the page limits established by the section.

This section also requires a lead agency to be designated when more than one agency is involved in a proposed action. The lead agency must supervise the preparation of one environmental document (e.g., EIS) and prepare a schedule to complete the review of the action. To the extent practicable, the document prepared by the lead agency must be deemed to satisfy the environmental documentation requirements for all agencies involved in the action.

The lead agency must complete the EA or EIS within deadlines established by the section. If the lead agency is unable to meet the deadlines, it must pay $100 per day to the applicant until the applicant approves a new deadline. If the lead agency misses a deadline solely due to delays caused by litigation, then it does not have to pay the fine.

Upon a project sponsor's request (e.g., an entity seeking a permit or other authorization of a project), a lead agency must allow the sponsor to prepare the EA or EIS.

Finally, this section limits judicial review of NEPA claims, including by requiring the claim to be filed within 120 days of an agency publishing a notice that it intends to carry out an action.

It also prohibits any proposed action for which an environmental document is required from being vacated or otherwise limited, delayed, or enjoined unless a court concludes that (1) the proposed action will pose a risk of an imminent and substantial environmental harm, and (2) there is no other equitable remedy available as a matter of law.

(Sec. 20203) This section provides statutory authority for the revisions to the Code of Federal Regulations made pursuant to a final rule of the Council on Environmental Quality (CEQ) titled Update to the Regulations Implementing the Procedural Provisions of the National Environmental Policy Act and published on July 16, 2020. Among other requirements, the rule issued regulations to facilitate more efficient, effective, and timely NEPA reviews by federal agencies in connection with proposals for agency action.

(Sec. 20204) This section exempts covered activities from being considered a major federal action under NEPA. Thus, these actions do not trigger environmental review requirements under NEPA. Covered activities include

- geotechnical investigations;

- off-road travel in an existing right-of-way;

- construction of meteorological towers where the total surface disturbance at the location is less than five acres;

- adding certain energy storage devices to an existing or planned energy facility;

- drilling geothermal exploratory wells under certain circumstances;

- repairs, maintenance, upgrades, optimizations, or minor additions to existing transmission and distribution infrastructure, or operation of such facilities; and

- construction, maintenance, realignment, or repair of an existing permanent or temporary access road under certain circumstances.

(Sec. 20205) If a federal agency makes a determination that an action or activity within an existing energy right-of-way will not result in an overall long-term net loss of vegetation, soil, or habitat, then that action or activity is not considered to be a major federal action under NEPA.

(Sec. 20206) The relevant federal agency must use previously completed environmental assessments and environmental impact statements to satisfy NEPA requirements if the agency determines that the new proposed action and its effects are substantially the same as a previously analyzed proposed action and its effects.

(Sec. 20207) Within 60 days of receiving an application to grant a right-of-way, the relevant federal agency must notify the applicant as to whether the application is complete or deficient. If the agency determines the application is complete, then the agency may not consider any other application to grant a right-of-way on the same or any overlapping parcels of land while such application is pending.

(Sec. 20208) This section revises requirements for terms of rights-of-way for pipelines and electrical energy infrastructure under the Federal Land Policy and Management Act of 1976 and the Mineral Leasing Act. Specifically, it allows rights-of-way to be granted, issue, amended, or renewed for up to 50 years before they are subject to renewal or amendment.

(Sec. 20209) In FY2023-FY2025, the Forest Service and Interior may accept and expend funds contributed by nonfederal entities to pay for dedicated staff and technology development to expedite activities for leasing, development, or expansion of an energy facility.

(Sec. 20210) Interior must authorize geological and geophysical surveys related to oil and gas activities on the Gulf of Mexico Outer Continental Shelf, except within areas subject to existing oil and gas leasing moratoria. Surveys authorized under this section are deemed to be in full compliance with the Marine Mammal Protection Act of 1972 and the Endangered Species Act of 1973.

(Sec. 20211) This section prohibits the deferral of a decision on an application for an oil or gas drilling permit under the Mineral Leasing Act as a result of a formatting issue with the permit, unless such formatting issue results in missing information.

(Sec. 20212) This section requires Interior to process an application for an oil or gas drilling permit or other authorizations under a valid existing lease regardless of any pending civil actions affecting the application or related lease.

It also makes a permit issued under Section 17 of the Mineral Leasing Act valid for a four-year term, or until the related lease expires, whichever occurs first.

(Sec. 20213) This section revises the environmental review of energy program activities under the Energy Policy Act of 2005. Specifically, enumerated actions taken by Interior and the Forest Service for the purpose of exploration or development of oil or gas are not to be considered major federal actions under NEPA.

(Sec. 20214) This section revises requirements for oil and gas or geothermal drilling permits under the Mineral Leasing Act as well as the Geothermal Steam Act of 1970. Specifically, the section prohibits Interior from requiring an operator to obtain a federal drilling permit for oil, gas, or geothermal exploration and production activities conducted on a nonfederal surface estate if (1) the federal ownership interest is less than 50% of the subsurface mineral estate to be accessed by the proposed action; and (2) the operator submits to Interior a state permit to conduct such activities on the nonfederal surface estate. Such activities are not considered to be a major federal action under NEPA. Further, such activities are not subject to requirements for federal actions under the National Historic Preservation Act of 1966 and the Endangered Species Act of 1973.

(Sec. 20215) This section revises requirements for the environmental review for an oil and gas lease or permit prepared under NEPA. Specifically, the section provides that the review only applies to areas that are within or immediately adjacent to the lease plots and that are directly affected by the proposed action. The review may not require consideration of downstream, indirect effects of oil and gas consumption.

(Sec. 20216) This section expedites the environmental review of certain gathering lines and associated field compression or pumping units on federal and applicable tribal lands. Gathering lines are used to transport oil, natural gas, and related liquid from wells to pipelines and facilities (e.g., processing facilities or refineries).

Currently, certain actions related to gathering lines are categorically excluded from NEPA. Categorical exclusions are categories of actions that have been determined to not have a significant effect on the human environment either individually or cumulatively. Thus, those categories of actions are excluded from NEPA requirements.

This section considers certain actions related to gathering lines to not be major federal actions under NEPA.

(Sec. 20217) This section addresses litigation concerning the environmental review of certain oil and gas lease sales held under the Mineral Leasing Act or the Outer Continental Shelf Lands Act. A court may not vacate a lease sale nor otherwise limit, delay, or enjoin related lease activities unless the court concludes that (1) the lease will pose a risk of an imminent and substantial environmental harm, and (2) there is no other equitable remedy available.

In addition, no court may enjoin or issue any order preventing the award of leases to a bidder in a lease sale if Interior has previously opened bids for such leases or disclosed the high bidder for any tract that was included in such lease sale.

(Sec. 20218) This section bars a claim that arises under federal law seeking judicial review of a permit, license, or approval issued by a federal agency for a mineral project, energy facility, or energy storage device unless (1) the claim is filed by a certain deadline; and (2) the claim is filed by a party that submitted a detailed comment during the public comment period for such permit, license, or approval.

(Sec. 20219) The GAO must report on the BLM's timeliness when reviewing applications for permits to drill. The GAO must also recommend (1) actions the BLM can take to expedite the approval of such permits, and (2) aspects of the review process that could be turned over to states.

(Sec. 20220) The CEQ must study and report on the potential to create an online permitting portal for permits that require review under NEPA.

(Sec. 20221) This section reduces the time limit from 150 days to 90 days to file a petition for judicial review of a permit, license, or approval for a highway or public transportation capital project.

(Sec. 20222) To the greatest extent feasible, the Department of Transportation (DOT) must conduct efficient environmental reviews for pipeline projects that require DOT's approval under NEPA.

In addition, DOT must maintain and publish a database concerning pipeline projects that are categorically excluded from NEPA requirements.

(Sec. 20223) This section exempts certain wildfire mitigation activities from requirements under NEPA and the Endangered Species Act of 1973.

(Sec. 20224) Among other requirements, this section establishes deadlines for Interior and the Forest Service to review a vegetation management, facility inspection, and operation and maintenance plan submitted by an electric transmission or distribution facility located on public lands.

In addition, this section authorizes the removal of hazard trees if they are located within 50 feet of electric power lines. The Federal Land Policy and Management Act of 1976 currently authorizes the removal of hazard trees if they are located within 10 feet of electric power lines.

(Sec. 20225) This section allows Interior to categorically exclude from NEPA requirements (1) the development and approval of vegetation management, facility inspection, and operation and maintenance plan, and (2) the implementation of routine activities conducted under the plan. Such activities do not include establishing a permanent road. However, the categorical exclusion does not apply to any forest management activity conducted in a component of the National Wilderness Preservation System or on National Forest System lands where the removal of vegetation is restricted or prohibited by Congress.

The activities that are categorically excluded from NEPA requirements under this section are also exempt from certain consultation requirements under the Endangered Species Act of 1973, the National Historic Preservation Act, or any other applicable law.

(Sec. 20226) This section requires the Park Service, the BLM, and the Forest Service to conduct an outreach plan for disseminating and advertising open civil service positions with functions relating to permitting or natural resources in their offices.

(Sec. 20301) This section defines terms used in this title. It defines mineral to mean any mineral of a kind that is locatable (including, but not limited to, such minerals located on lands acquired by the United States, as such term is defined in section 2 of the Mineral Leasing Act for Acquired Lands) under the Act of May 10, 1872. This definition includes non-fuel minerals such as gold, copper, and other hardrock minerals.

A state means a state, the District of Columbia, Puerto Rico, Guam, American Samoa, the Northern Mariana Islands, and the U.S. Virgin Islands.

(Sec. 20302) This section expands the federal permitting and review processes under the Infrastructure Investment and Jobs Act for critical minerals. Under such act, the BLM and the Forest Service, to the maximum extent practicable, must complete the federal permitting and review processes related to critical mineral mines on federal lands with maximum efficiency and effectiveness. This section expands this process to include all minerals as defined by this title, not only critical minerals. It also requires the BLM and the Forest Service to defer to data and reviews from state agencies when completing such review process.

(Sec. 20303) This section requires Federal Register notices associated with the issuance of a mineral exploration or mine permit under the Energy Act of 2020 to be delegated to the organizational level of the issuing agency. Currently, this requirement only applies to such permits for critical minerals.

(Sec. 20304) This section designates mineral production projects as covered projects under the Fixing America's Surface Transportation (FAST) Act. Such projects qualify for expedited environmental review.

(Sec. 20305) This section expands the meaning of covered project under the FAST Act. Specifically, it includes actions taken by the Department of Defense pursuant to Presidential Determination 2022-11 or the Presidential Waiver of Statutory Requirements Pursuant to Section 303 of the Defense Production Act of 1950, as amended, on Department of Defense Supply Chains Resilience to create, maintain, protect, expand, or restore sustainable and responsible domestic production capabilities. However, project sponsors may choose to not have their actions treated as a covered project.

(Sec. 20306) This section establishes several requirements to expedite the review and authorization of mineral exploration activities with a surface disturbance of no more than five acres of public lands.

(Sec. 20307) This section revises provisions concerning ancillary mining activities, including to allow mine operations to conduct mine support activities regardless of whether a mineral deposit has been discovered.

(Sec. 20308) This section amends existing critical mineral criteria to allow the U.S. Geological Survey (USGS) to consider adding uranium to its list of critical minerals. Thus, the section allows the USGS to expedite the review of uranium projects. The USGS must update its list with the revised criteria within 60 days.

(Sec. 20309) This section bars a mining claimant from the right to use, occupy, and conduct operations on federal land if Interior finds that the claimant has a foreign parent company that has (including through a subsidiary) (1) a known record of human rights violations, or (2) knowingly operated an illegal mine in another country.

(Sec. 20310) This section expands the meaning of a covered project under the FAST Act to include certain activities related to the extraction, recovery, or processing of certain critical minerals, rare earth elements, or microfine carbon or carbon from coal.

(Sec. 20311) The USGS must identify mineral commodities that (1) serve a critical purpose to U.S. national security, and (2) are at highest risk of supply chain disruption due to the domestic or global actions of China.

The USGS must also develop a national strategy for bolstering supply chains in the United States for mineral commodities to increase capacity and efficiency of domestic mining, refining, processing, and manufacturing of such mineral commodities.

(Sec. 20401) This section prohibits federal land and waters from being withdrawn from areas where mining activity is allowed unless four types of assessments are conducted. First, a mineral assessment of the impacted area must be completed. It must be completed within the 10-year period before the date of such withdrawal.

Second, Interior must assess the economic, energy, strategic, and national security value of mineral deposits identified in such mineral resource assessment.

Third, Interior must assess the reduction in future revenues resulting from the proposed mineral withdrawal. The reduction of revenues must be calculated for revenues to the Treasury, states, the Land and Water Conservation Fund, the Historic Preservation Fund, and the National Parks and Public Land Legacy Restoration Fund.

Fourth, Interior must assess military readiness and training activities in the proposed withdrawal area.

Before Interior or the Forest Service may update or complete a resource management plan or forest management plan respectively, they must review any mineral resource assessment conducted for the area affected by the plan. If Interior finds that a previously undiscovered mineral deposit may be present in an area that has been withdrawn from mining activity, then Interior must make recommendations to the President on measures to reduce unnecessary impacts that a withdrawal may have on mining activities.

(Sec. 20402) The President and executive agencies may not carry out any action that would pause, restrict, or delay leasing or permitting activities on federal lands that are open to energy and mineral development as defined by the section.

The President, BLM, or Forest Service may not rescind any existing lease, permit, or claim for the extraction and production of minerals on National Forest System land or BLM land unless (1) specifically authorized by federal statute; or (2) the lessee, permittee, or claimant fails to comply with the provisions of the applicable lease, permit, or claim.

(Sec. 20403) This section defines terms used in this title. It defines federal land to mean (1) National Forest System land, (2) public lands as defined in section 103 of the Federal Land Policy and Management Act of 1976, (3) the outer Continental Shelf as defined in section 2 of the Outer Continental Shelf Lands Act, and (4) land managed by the Department of Energy.

(Sec. 20501) This section decreases the fees and royalties on the development of oil and gas on federal lands and waters. Specifically, this section repeals the increases made by the Inflation Reduction Act of 2022.

(Sec. 20601) This section revises the formula used to distribute revenue generated from certain federal oil and leases in the Gulf of Mexico. Specifically, it increases the share of revenue given to certain Gulf producing states (Alabama, Louisiana, Mississippi, and Texas). It also decreases the share of revenue given to the Treasury and the Land and Water Conservation Fund. In addition, this section eliminates the cap on revenue sharing.

This section also exempts the revenue shared with Gulf states from sequestration payments.

(Sec. 20602) This section establishes a formula to distribute revenue generated from offshore wind. A specified percentage of the revenue must be given to coastal states as well as the North American Wetlands Conservation Fund.

This section also exempts the revenue shared with coastal states from sequestration payments.

(Sec. 20603) This section eliminates the 2% fee under the Mineral Leasing Act that the federal government currently deducts from a state's share to cover administrative or other costs.

(Sec. 20604) This title ceases to have effect on September 30, 2032.

DIVISION C--WATER QUALITY CERTIFICATION AND ENERGY PROJECT IMPROVEMENT

Water Quality Certification and Energy Project Improvement Act of 2023

(Sec. 30002) This section revises the water quality certification process under Section 401 of the Clean Water Act (CWA) for any activity that requires a federal license or permit and may result in a discharge of pollutants into waters of the United States. Activities that require such federal licenses or permits include hydropower, natural gas pipeline, or mining projects.

Under the existing Section 401, an applicant for a federal license or permit to conduct such activities must provide the federal licensing or permitting agency with a certification. The certification must attest that the discharge will comply with enumerated sections of the CWA (i.e., Sections 301, 302, 303, 306, and 307) and with any other appropriate requirement of state law set forth in the certification. The certifying authority--usually the state in which the discharge originates, but sometimes an Indian tribe or the Environmental Protection Agency (EPA)--may grant, grant with conditions, deny, or waive certification of a proposed federal license or permit.

This section limits the scope of the certification process by eliminating the requirement that the discharge comply with appropriate state law set forth in the certification. It also requires decisions to grant or deny a request for certification to be based only on the enumerated sections of the CWA and provisions of state law that implement water quality criteria under Section 303. In addition, it also limits the certification process to activities that may directly result in a discharge into waters of the United States.

This section requires certifying authorities to identify all materials or information that are necessary to grant or deny the request within 90 days of receiving a request for certification. They must also publish requirements for their water quality certifications.

(Sec. 30003) This section provides statutory authority for the EPA to issue general permits under the National Pollutant Discharge Elimination System (NPDES) program. Under the regulations governing the NPDES program, the EPA issues permits to discharge pollutants from point sources, such as pipes, into waters of the United States. The EPA issues an individual permit under the NPDES program for a specific discharger or a general permit for a category of discharges within a geographical area from multiple dischargers.

This section allows the EPA to issue general permits under the NPDES program for discharges of similar types from similar sources and sets forth requirements related to general permits.