US Department of the Interior Natural Resources Revenue Data

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Renewables: Onshore

Onshore renewable energy development on federal lands includes solar and wind energy, among other renewable natural resources. Title V of the Federal Land Policy and Management Act of 1976 provides BLM with the authority to issue rights of way for developing solar and wind energy projects on federal lands.

Managed and regulated by the Bureau of Land Management (BLM).

Did you know?

Since 2010, BLM has approved 34 utility-scale solar energy projects, with a total approved capacity of 9,763 megawatts. That’s enough clean, renewable energy to power nearly 2.8 million homes.

  • 1

    Plan

    Over the past decade, the federal government has taken steps to update regulations to clarify and encourage planning for renewable energy development on federal lands, particularly for wind and solar energy.

    In 2005, BLM published a programmatic Environmental Impact Statement to create a framework for developing wind energy on federal lands in the West. At the same time, BLM amended 53 land-use plans to allow for wind energy development. BLM field offices can amend additional land-use plans any time to support wind energy development.

    In 2012, BLM released the final solar Environmental Impact Statement. This statement furthered a proposal to create a competitive leasing program on federal lands for commercial scale solar development in 19 new Solar Energy Zones (PDF).

    BLM has also proposed a rule (PDF) that would promote competitively offering designated leasing areas for solar and wind energy development. Designated leasing areas have fewer environmental and cultural resource conflicts compared to others, making them better candidates for development.

  • 2

    Lease

    BLM has proposed amendments to existing regulations that would establish two distinct processes for awarding rights to apply to develop wind and solar energy projects on federal lands: one within designated leasing areas, and one outside of designated leasing areas.

    Within designated leasing areas, BLM would competitively offer leases for parcels of land for wind and solar energy development. Interested parties would offer bids for the lease, and BLM would award the lease to the highest bidder, so long as the payment is equal to or greater than the minimum bid (based on administrative costs incurred by the government and the estimated value of the land) and 20% of the bonus bid (any amount the bidder is willing to pay beyond the minimum bid). Some bidders may pre-qualify for offsets up to 20% of the high bid.

    Outside of designated leasing areas, BLM would offer right-of-way grants through a competitive process. BLM would hold pre-application meetings and screen all applicants. Where there are two or more applicants (or at BLM’s discretion), BLM could offer right-of-way grants by holding a competitive offer. The highest bidder becomes the preferred applicant, the only party that could apply for a right-of-way grant for a given parcel of land. BLM could offer the applicant a grant at its discretion. There would be no bid offsets outside of the designated leasing areas, and subsequent site-specific National Environmental Policy Act analysis would be required for right-of-way grants.

  • 3

    Explore

    Companies explore leased land to locate suitable sites for constructing renewable infrastructure. Under the proposed rule, once BLM grants a developer a lease or right of way, the developer has a period of time to construct facilities and begin generating electricity from wind or solar energy.

    Exploration for onshore renewables is easier and faster than for offshore renewables. Within designated leasing areas, a developer has two years to find a suitable site for infrastructure and submit a Plan of Development. Outside of designated leasing areas, a developer has two years to begin construction. Companies can choose whether or not to extend their leases based on their findings. During exploration, companies pay rent to BLM.

  • 4

    Develop

    Under the proposed rule, once a developer submits a Plan of Development, they have a period of time to construct facilities and begin generating electricity from wind or solar energy. Within designated leasing areas, a developer has seven years to complete construction. Outside of designated leasing areas, a developer has two years. During this phase, the developer pays Megawatt Capacity fees for the energy produced as part of the rent to BLM.

  • 5

    Decommission and reclaim

    At the close of a solar or wind project, developers must remove all facilities and return the land to a sound environmental state. Under the proposed rule, when an applicant gains a solar or wind energy lease or grant, they must provide BLM a bond. BLM holds the bond through the life of the project to ensure compliance with terms and conditions, including site reclamation.

    Bonding requirements differ based on whether the project is in a designed leasing area or not. Inside designated leasing areas, the standard bond amounts would be $10,000 per acre for solar energy projects and $20,000 per turbine for wind energy projects. These same amounts would be the minimum requirements for bonds outside designated leasing areas, subject to adjustment by BLM.

    If the developer appropriately decommissions solar and wind projects and meets terms and conditions, BLM returns the bond at the close of the project.

  • Learn more

Revenue collected by the BLM

Bonus

The amount the highest bidder will pay for a natural resource lease.

Rent

Under the proposed rule, rent will be determined by the acre and based on land values.

MC Fee

$6.21 per KW
proposed for wind
$3.55–$5.32 per KW
proposed for solar

For wind, there is a proposed increase from current $4.16 per KW to $6.21 per KW. For solar, proposed fees range from $3.55–$5.32 per KW.

Note: proposed revenue terms are more favorable for development within designated leasing areas.

Get involved

Participate in the onshore renewables leasing process.

Join a Resource Advisory Council. BLM formed 29 Resource Advisory Councils in the western U.S. to provide advice on managing public lands and resources. Each council consists of 12 to 15 members with diverse interests in local communities, such as ranchers, environmental groups, tribes, state and local government officials, academics, and other public land users. Join your local Resource Advisory Council.

Volunteer. Find opportunities in your area or create a BLM partnership.

Contact a local BLM office. BLM has 12 state and regional field offices, mostly in the western U.S. Find your state office for details about land-use policies in your area.

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