The Department of the Interior (DOI) announced on June 15 a new proposed rule that would reduce acreage rents and capacity fees on public lands to promote wind and solar development.
The Proposed Energy Rule updates the Bureau of Land Management’s (BLM) right-of-way regulations issued under the Federal Land Policy and Management Act (FLPMA) to facilitate green energy development on public lands by reducing rental rates and capacity fees by as much as 80% until 2036 under authorizations provided by the Energy Act of 2020.
This fee calculation relies on BLM’s direction under sections of FLPMA to collect “the fair market value” for the use of the public lands and its resources, which Congress clarified in the Energy Act of 2020 to confirm that the BLM could “consider acreage rental rates, capacity fees, and other recurring annual fees in total.”
“For example, the BLM expects that the proposed reductions in solar and wind energy acreage rent and capacity fees will facilitate solar and wind energy development by increasing commercial interest and encouraging additional investment in the use of public lands,” the notice read. “These proposed reductions should particularly benefit smaller scale projects or projects that are on the margins of being economically profitable, increasing interest among renewable energy developers.”
According to DOI, the proposed rule would expand BLM’s ability to accept leasing applications in priority areas without going through a complete auction, and accept non-competitive leasing applications “when they are in the public interest.” It would retain BLM’s policy of holding competitive auctions where appropriate with past practices.
“Our public lands are playing a critical role in the clean energy transition,” said BLM Director Tracy Stone-Manning in a statement. “This proposed rule would allow the BLM to continue leading the way on renewable energy while furthering President Biden’s commitment to building a clean energy economy, tackling the climate crisis, promoting American energy security, and creating jobs in communities across the country.”
BLM is accepting public comments on the rule until Aug. 15 and is conducting public meetings. To attend the meetings held on July 11 and 25, visit www.blm.gov/renewable-energy-rule. Public comments can be made at www.regulations.gov by entering “RIN 1004-AE78” in the search box.
Solar review
In addition to the proposed rule, BLM announced the release of a programmatic environmental impact statement (EIS) for solar energy development across 11 western states, building on the 2012 Western Solar Plan.
The updates identify areas open for solar energy development, lands excluded from solar energy development, and lands that may be available for development through a variance process.
The Biden administration’s goal is to permit at least 25 gigawatts of electricity from wind, solar, and geothermal energy projects by 2025. For context, according to the U.S. Energy Administration, the average U.S. household uses 10,632 kilowatt hours (kWh), an average of about 886 kWh per month.
The BLM is not accepting comments on the programmatic EIS, but the preliminary alternatives can be found at tinyurl.com/3e862mkw. BLM anticipates an opportunity to comment on the range of alternatives and analysis of the effects later this year.
DOI said the two announcements complement the BLM’s proposed Public Lands Rule.
“Taken together, these actions are helping advance the Biden administration’s commitment to support the efficient and environmentally responsible development of renewable energy on BLM-managed public lands, provide greater clarity and consistency in permitting, and allow continued acceleration of project reviews and approvals, all while balancing the BLM’s multiple-use mandate,” DOI said.
Record solar auction
BLM held a record-breaking solar auction in Nevada in late June, resulting in over $105 million in high bids. The four parcels total approximately 23,675 acres of federal land in southern Nevada.
NV Energy Inc., a subsidary owned by Berkshire Hathaway Energy, bid more than $80 million for two parcels in the Amargosa Valley Solar Energy Zone, according to BLM and Reuters.
Florida-based NextEra Energy Resources’s ubsidiary Boulevard Associates and Texas-based Leeward Renewable Energy’s subsidiary Silver Star Solar picked up the remaining two parcels, with winning bids of $21 million and $2.3 million, respectively.
“This record-breaking auction for solar energy development is further evidence that the demand for clean energy has never been greater,” Interior Secretary Deb Haaland said in a statement. “The technological advances, increased interest, cost effectiveness, and tremendous economic potential make these projects a reliable path for diversifying our nation’s energy portfolio,” she continued.
“Under President Biden’s leadership, this administration is taking an all-hands-on-deck approach toward ambitious clean energy goals that will support families, boost local economies, and address the climate crisis.” — Charles Wallace, WLJ contributing editor
