Wind and Solar Compete for Space
Would competition make for better, and better siting, of wind and solar projects on the vast expanses of federal lands in the West? The Obama administration, which has made opening of public lands for renewable energy development a priority, wants to find out.
The U.S. Bureau of Land Management (BLM) announced plans to create a rule authorizing competitive leasing for wind and solar projects on the public land it administers. The announcement states that before competitive leasing for wind projects could occur, the agency would designate wind energy development zones.
The BLM published in the Federal Register an Advance Notice of Proposed Rulemaking (ANPR) to give the public background information about the BLM’s interest in establishing an efficient, competitive process for issuing right-of-way (ROW) leases for solar and wind energy development on the public lands.
"The renewable energy resources on America's public lands are enormous,” said BLM Director Bob Abbey. “The competitive options we are evaluating are part of our commitment to improving the process by which we provide access for responsible renewable energy development while providing a fair return for the use of the public lands."
An organization that is critical of some wind siting practice, and charges lax enforcement by the U.S. Fish and Wildlife Service, praised the new initiative.
“Wind energy development zones, if done right, could be helpful to both birds and wind energy development. Siting is the most important step in make wind energy bird-smart,” said Kelly Fuller, American Bird Conservancy’s Wind Campaign Coordinator.
BLM says the process would help ensure fair access to leasing opportunities for renewable energy development and capture fair market value for the use of public lands. The BLM wants to foster a competitive process instead of the current applications for rights-of-way.
The BLM intends to evaluate ways to establish competitive bidding procedures for lands within designated solar and wind energy development leasing areas, define qualifications for potential bidders, and structure the financial arrangements necessary for the process.
Key questions on which BLM is seeking input include:
1. How should a competitive process be structured for leasing lands within designated solar and wind energy development leasing areas?
2. Should a competitive leasing process be implemented for public lands outside of designated solar and wind energy development leasing areas? If so, how should such a competitive leasing process be structured?
3. What competitive bidding procedures should the BLM adopt?
4. What is the appropriate term for a competitive solar energy ROW lease?
5. What is the appropriate term for a competitive wind energy ROW lease?
6. Should nomination fees be established for the competitive process? If so, how should the fees be determined?
7. How should the bidding process for competitive solar and wind energy ROW leases be structured to ensure receipt of fair market value?
8. Should a standard performance bond be required for competitive solar and wind energy ROW leases and how should the bond amount be determined?
9. What diligent development requirements should be included in competitive solar and wind energy ROW leases?
The announcement begins a 60-day comment period that closes on February 27. The BLM is also interested in receiving any other comments regarding the content and structure of the competitive process for solar and wind energy development.
The agency added that the comments are about the leasing structure only and not concerned with environmental matters.
