BLM Rule Aims To Streamline Renewable Energy Project Development
In brief
The U.S. Bureau of Land Management (BLM) published new proposed rules that are intended to simplify and streamline the development of solar and wind renewable energy projects on public lands.
In detail
The Energy Act of 2020 authorized BLM to take certain actions to facilitate development of solar and wind renewable energy projects in designated public land “priority areas”. Consistent with this legislative mandate, the proposed Renewable Energy Rule would reduce acreage rents and capacity fees, and would expand the BLM’s ability to accept leasing applications in priority areas for wind and solar projects without a full auction.
With respect to fees, the BLM initially reduced fees in 2022, but the proposed rule would implement further fee reductions, which are intended to encourage investment in renewable energy projects generally, but especially smaller scale projects that are particularly sensitive to fees. The fee reductions are also expected to translate into lower electricity costs to consumers.
The Rule would additionally clarify and formalize the processes by which the BLM prioritizes, processes, and approves project applications. These changes are anticipated to streamline the application process and increase certainty for project developers. Along these lines, the Rule would allow BLM to make public lands inside designated leasing areas available for leasing without a competitive auction.
BLM published the proposed rule on June 16, 2023, and is accepting public comments through August 15, 2023.
The proposed rule can be viewed here.