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UNITED STATES
DEPARTMENT OF THE INTERIOR |
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BUREAU OF LAND
MANAGEMENT |
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WASHINGTON, D.C. 20240 |
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October 20, 2004 |
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In Reply Refer To: |
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2800 (WO 350) P |
EMS TRANSMISSION 10/21/2004
Instruction Memorandum No. 2005-006
Expires:
09/30/2006
To: All Field Officials
From: Director
Subject: Solar Energy Development Policy
Program Area: Right-of-Way Management, Use Authorization,
Facilities Management
Issue: This Instruction Memorandum (IM) establishes
policy for the processing of right-of-way applications for solar energy
development projects on public lands administered by the Bureau of Land
Management (BLM), and evaluating the feasibility of installing solar energy
systems on BLM administrative facilities and projects.
Background: The President’s National Energy Policy
encourages the development of renewable energy resources, including solar
energy, as part of an overall strategy to develop a diverse portfolio of
domestic energy supplies for our future.
The BLM prepared a National Energy Policy Implementation Plan that
included a variety of tasks related to the development of energy resources on
the public lands, including renewable energy resources. While the current contribution of renewable
energy resources to our energy supply is relatively small, renewable energy
generating sectors of our economy is the fastest growing in the United
States. Continued growth in solar energy
development will be important in delivering larger supplies of clean, domestic
power for
Solar energy has significant potential in the western
On
There are two basic types of solar energy
installations that produce electrical power: photovoltaics
(PV) systems, and concentrating solar power (CSP). These can be combined with natural gas or
other fossil fueled power systems to form hybrid systems. To work effectively,
the solar installations require consistent levels of sunlight (solar insolation) and are backed up with batteries, thermal
storage, or other forms of energy.
Solar insolation is a measurement that has become increasingly
more accurate in evaluating specific sites for solar energy installations.
Solar insolation is the amount of sunlight hitting an
area on the surface of the earth over a specific period of time. The higher the exposure of sun measured on an
annual basis, the more electrical power that can be produced.
The quality of the solar
resource, over a month or a year, is an important indicator in determining the
viability of a site for commercial solar development. Other site attributes include access to
available water for concentrated solar power steam generation and cooling,
proximity to electric transmission facilities, and site slope. The most promising areas for development on
public lands are in Arizona, southern California, Nevada, and
New Mexico. Parts of Texas, Utah, and
Colorado also have excellent levels of solar insolation.
Photovoltaic Systems
Photovoltaic (PV) systems use
semiconductor materials similar to those used in computer chips to capture the
energy in sunlight and convert it directly into electricity. Photovoltaic cells are electrically connected
into a weather tight module. These
modules can be further connected to form an array which can include electrical
connections, mounting hardware, power conditioning equipment, and batteries
that store solar energy. The size of the
array depends on the amount of sunlight and the needs of the customer. Large PV electrical generating systems have
not generally been used for commercial utility applications due to the high
upfront cost.
Most PV applications are small, use
little or no land, and have minimal or no environmental impact since
electricity created is generally used on site or as part of an existing
authorized use. They generally provide
power to individual homes and small buildings.
They are also found in rural areas on communication towers, water pumps,
and road and traffic signs.
The environmental impact of small
distributed PV systems is minimal, as they require no water for system cooling,
and generate no by-products. Most
installations of solar PV systems are less than 5 kW in capacity, and tend to
be most cost-effectively applied in isolated locations where construction of
electric transmission and distribution networks would be more costly than a PV
system. These types of solar PV systems
will likely be installed on an existing facility or structure or as part of an
existing authorization.
Concentrating Solar
Power Plants
Concentrating
solar power plants are generally large systems that use mirrors to focus
sunlight to create high temperatures.
The high temperatures generated by the focused sunlight are used to
generate electricity either by a) a heat engine causing gas to expand moving a piston
or b) or a conventional power cycle using boiling water to create steam that
turns a turbine. For steam-driven
concentrating solar system, facilities include a solar collection system, a system
for transferring the collected energy to a working fluid or to a storage
system, and a system such as a turbo-generator for converting the thermal
energy to electricity. Many of these
power plants have a hybrid solar/fossil fuel capability that can be used during
periods of low solar energy. Many also include thermal storage. These capabilities enable concentrating solar
power plants to supply energy to a utility grid when it is most needed (day or
night).
The lands
having the best solar resources are usually arid or semi-arid. Unlike PV systems, concentrating solar power
systems require sunlight that is not diffused by clouds. This limits their use to the West, with the southwest
possessing some of the best solar energy resources.
There are currently three different types
of centralized concentrating solar power systems; parabolic trough, solar
“power tower” and solar dish. These systems require relatively flat land
with slopes not exceeding 3% to accommodate the solar collectors. The area of land required depends on the type
of plant, but is about 5 acres per produced megawatt. It is anticipated that a
commercial scale concentrating solar power facility may be in the range of 100
MW or larger and will require in excess of 500 acres. This large land base
requirement can involve significant surface disturbance with an associated
potential impact on a variety of resources and resource uses on the public
lands. These types of facilities also
require roads, water, protection from gusty winds, and security fencing, and
can involve significant surface disturbance.
Electricity generated is sold to the utility under an agreement.
Additional information
on solar energy technology is available from the Department of Energy at http://www.eere.energy.gov/RE/solar.html
or the National Renewable Energy Laboratory (NREL) at http://www.nrel.gov.
Policy/Action: The BLM’s general policy is to facilitate
environmentally responsible commercial development of solar energy projects on
public lands and use solar energy systems on BLM facilities where
feasible. Applications for commercial
solar energy facilities will be processed as right-of-way authorizations under
Title V of the Federal Land Policy and Management Act (FLPMA) and Title 43,
Part 2802 of the Code of Federal Regulations (CFR). Commercial CSP or PV electric
generating facilities must, however, comply with BLM’s planning, environmental
and current right-of-way application requirements, as do other similar
commercial uses. BLM right-of-way project managers are
available to coordinate the planning, environmental, application, permitting,
and monitoring process.
The BLM will evaluate the feasibility of
installing PV systems on administrative facilities and projects involving
resource monitoring, range improvements, public safety and recreation
projects. Project planning and design
should incorporate an appropriate analysis to determine the feasibility, cost
and benefits of using PV systems. Trent
Duncan, BLM Utah State Office at 801-539-4090 or Pat Fleming, BLM National
Science and Technology Center at 303-987-6856 can provide additional
information on installing PV systems on BLM administrative facilities or for
other project uses.
Inventory and Planning
The Department of
Energy’s National Renewable Energy Laboratory (NREL) has prepared solar insolation potential maps at the request of BLM for
Arizona, California, Nevada, and New Mexico.
The maps identify areas with 1 percent or less slope with high levels of
solar insolation that have potential for commercial
solar energy development. These maps are
available at ftp://ftp.nrel.gov/pub/dheimill-out/dni_sw.zip. A PowerPoint presentation showing the maps is
at ftp://ftp.nrel.gov/pub/dheimill-out/dnisw_st.ppt.
New or updated BLM land use plans are
required to consider NREL maps showing areas having commercial solar energy
development potential. The land use
plans or revisions should address potential impacts of solar energy development
and related environment and local community issues. The land use plans should sufficiently
analyze and consider the potential for solar energy development, opportunities
for reducing environmental costs and delays for other similar projects in the
area, and the and local community issues related to making lands available (or
not available) for commercial solar energy development. When necessary, the land use plan amendment
and the environmental analysis for the solar energy development proposal can be
prepared and processed concurrently.
This policy does not require all recently completed plans to be updated
to include an analysis of solar or renewable energy development.
Right-of-Way
Applications
Pre-application meetings
should be held with the BLM Field Offices prior to submitting an application to
use public lands. The pre-application
meeting is an opportunity to discuss the scope of the proposed project, discuss
potential environmental and land use conflicts, and develop a schedule and
commitments for submitting an application.
Applications for commercial solar energy facilities, both PV and
concentrating solar power, will be processed as right-of-way authorizations
under Title V of the FLPMA and Title 43, Part 2802 of the CFR. No separate authorization is necessary if the
installation of a PV system is part of another authorized facility or use. As an example, oil and gas operators may
install PV facilities for operating metering equipment and lighting systems on
their lease area as part of an approved lease operation. In addition, oil and gas pipeline
right-of-way authorizations would allow for the use of PV facilities at pump
station locations. Those are valid uses
that we can encourage and allow.
Right-of-way applications for solar
energy development projects will be identified as a high priority Field Office
workload and will be processed in a timely manner. This priority is consistent
with the President’s National Energy Policy and adequate resources should be
provided to review and process the application.
The applicant must submit a complete and acceptable application and
provide a cost recovery payment before BLM will initiate processing of a
right-of-way application. It is
anticipated that most right-of-way applications for solar energy development
will be full cost recovery applications.
BLM will apply sound business practices in expediting the
application process.
Applications submitted to BLM for
commercial solar energy development projects will use Form SF-299, Application
for Transportation and Utility Systems and Facilities on Federal Land,
consistent with the requirements of 43 CFR 2802.3.
The BLM authorized
officer should schedule pre-application meetings with applicants (43 CFR
2802.1). This facilitates preparation
and processing of applications, identifies potential issues and land use
conflicts impacting the authorized officer’s decision to grant or not grant the
right-of-way authorization. The
pre-application process will identify any environmental or cultural resource
studies that may be needed, assess public interest and concerns, identify other
authorized uses within or near the area, allow consideration of potential
alternative site locations, and outline arrangements for paying the costs
associated with processing a right-of-way grant. Early public notification and involvement of
local communities and other interests is also important in increasing public
acceptance and avoiding potential conflicts, especially in areas where other
uses exist on the public lands. The
application process is pre-decisional and may or may not result in BLM granting a
right-of-way authorization.
A BLM State or Field Office right-of-way
project manager will be assigned to process the application, ensure appropriate
cost recovery and monitor construction, and use of the land for the authorized
purpose. As an option, the BLM State
Director may request the BLM Washington Office (WO-350) assistance of a
National Right-of-Way Project Manager.
Solar energy right-of-way applications
and authorizations are subject to appropriate cost recovery and rental payments
required by 43 CFR 2808.1 and 43 CFR 2803.1-2, and bonding requirements of 43
CFR 2803.1-4.
A right-of-way grant
(Form 2800-14) will be used to authorize all facilities, held by the holder of
the grant, on the public lands related to a commercial solar energy development
project. This authorization will include the solar collectors, tower,
turbine/generator, fossil fired generator for hybrid systems, thermal storage,
as well as the access roads, electrical and transmission facilities, and other testing
and support
facilities. It
should not be necessary to grant a separate right-of-way authorization for site
testing.
The lands involved in the right-of-way
grant will be defined by aliquot legal land descriptions and be configured to
minimize the amount of land involved.
The right-of-way authorization will
contain appropriate stipulations, relating to all aspects of project
development including but not limited to road construction and maintenance,
vegetation removal, natural, cultural and biological resources mitigation and
monitoring, and site reclamation. In
addition, an approved Plan of Development (POD) for construction and operation
of the solar facility must be completed prior to beginning construction. When possible, the right-of-way authorization
and POD can be processed simultaneously.
The right-of-way holder
should be encouraged, through terms and conditions of the right-of-way
authorization, to work with BLM to increase public acceptance and awareness of the
benefits of solar energy development by providing information and public
viewing areas at safe locations near the development. The BLM and right-of-way holder can provide a
positive message on the responsible use of renewable resources and the multiple
resource use on public lands.
A bond will be required
for solar energy development right-of-way grants to ensure compliance with the
terms and conditions of the authorization and the requirements of the
regulations, including reclamation. The
reclamation provisions within the POD should include not only removal of solar
collectors and other structures, but also the reclamation of access
roads and disturbed areas. The
amount of the bond will consider potential reclamation and administrative costs
to BLM.
The term length of the authorization is
not limited by regulation; however it should recognize the overall costs and
useful life of solar energy facilities 43 CFR 2801.1-1(h)). The
term of the solar energy authorization for a commercial facility should not
exceed the design life of the project, typically 30 years. The authorization may be renewed consistent with
the provisions of the regulations (43 CFR 2803.6-5). Other compatible uses may be authorized, but
are unlikely due to the intensive use of the site for PV or concentrated solar
power facility equipment.
The right-of-way grant may be assigned
consistent with the provisions of the regulations (43 CFR 2803.6-3). However, all assignments shall be approved by
the BLM authorized officer and the qualifications of all assignees must comply
with the Due Diligence section of this IM and the requirements of the
regulations (43 CFR 2802.3(a)(4) and 43 CFR
2802.4(a)(5)). The assignment shall not
interfere with BLM’s enforcement of the terms and conditions of the
authorization or management of the associated public lands.
All final decisions issued by the
Authorized Officer in connection to the authorization of solar energy projects
can be appealed under 43 CFR part 4 and 43 CFR 2804.1(a). It should also be noted that right-of-way
grants are issued as full force and effect decisions (43 CFR 2804.1(b)) and
will remain effective during any appeal period.
Rental
All solar energy right-of-way
authorizations are subject to rent in accordance with this IM, unless they are
specifically exempt from rent by statute or regulation. Some holders or facilities may be exempt from
rent pursuant to the Rural Electrification Act of 1936, as amended 43 CFR
2803.1-2 (b)(1)).
The holder of a right-of-way
authorization shall pay an annual rent established by the BLM using real estate
appraisals and reviews procured from the Department of the Interior, Appraisal
Services Directorate. The rents paid
will be in conformance with 43 CFR 2803.1-2.
The appraisal should consider the value of the rights to be
conveyed and the lease of comparable lands in an early or similar stage of
potential development, e.g., commercial or industrial, as of the date of the
appraisal. The procured appraisal and review report will
be prepared on a site specific basis and reflect market conditions for setting
rental payments.
The appraisal assignment to estimate
annual rental should include a request to identify an appropriate rental index
for updating the rental payment. The
justification for the index should reflect normal market conditions for
updating rental payments on similarly used land.
The rental payment will be phased in over
a 3-year period to permit additional data collection that may be required after
the approval of the grant, preparation and approval of a POD, and construction
of the facility. The rent for the first
year will be 25 percent of the BLM approved rent, 50 percent the second year
and 100 percent the third year.
Competitive Interest
Right-of-way
applications for solar energy development will be accepted and processed on a
first-come, first-serve basis. The
right-of-way regulations (43 CFR 2803.1-3) provide authority for offering
public lands under competitive bidding procedures for solar energy right-of-way
authorizations. Currently the market for
sites with high solar resource potential is very limited and no competitive
interest has been expressed for sites on public lands. However, BLM will initiate a competitive
process, if a land use planning decision has specifically identified an area
for competitive leasing. Competitive
bidding, if provided for by a land use plan decision, will follow the procedures
required by 43 CFR 2803.1-3.
Due Diligence
BLM will discourage
applicants from holding right-of-way authorizations for purposes of
speculating, controlling or hindering development of solar energy on public
lands. Speculative interest can be mitigated by
ensuring the
applicant meets qualification
requirements of the regulations 43 CFR 2802.3(a)(4)
and 43 CFR 2802.4(a)(5) and requiring certain due diligence provisions in the
right-of-way authorization for solar energy development.
The regulations clearly provide authority
to require that the application include information on the applicant’s
technical capability to construct, operate, maintain and dismantle the solar
energy facilities (43 CFR 2802.3(a)(4)). This technical capability can be demonstrated
by
obtaining the funding, designing, constructing or successfully operating an
energy generating project. Actual ownership,
development, or successful management of similar sized electric energy related facilities
within the last five years by the applicant would generally constitute evidence
of financial capability. If sufficiently
adequate and complete, BLM may be able to rely on financial and technical
capability information provided to the utility awarding the purchase
agreement. The regulations provide the authority to deny
the application if the applicant cannot demonstrate adequate technical ability
to construct, operate, and maintain the solar energy facilities 43 CFR 2802.4(a)(5).
In addition, the solar energy development
right-of-way grant shall include a due diligence requirement for installation
of facilities consistent with an approved Plan of Development. If construction of solar energy facilities
has not commenced within 3 years after the effective date of the grant, the
right-of-way holder shall provide BLM just cause as to the nature of any delay,
evidence of progress toward beginning of construction and the anticipated date
of start-up operations. Failure of the
holder to comply with the due diligence provisions of the solar energy
development right-of-way grant provides the authorized officer the authority to
terminate the authorization 43 CFR 2803.4(b).
Environmental Review
The scope of the
environmental analysis required by the National Environmental Policy Act (NEPA)
for a solar energy development project should address all aspects of the solar
project, including direct, indirect, and cumulative effects of the proposed
action.
The scope of the NEPA analysis and the
compliance requirements with the Endangered Species Act, the Migratory Bird
Treaty Act, the National Historic Preservation Act, and other laws for a solar
energy development right-of-way application should address the installation and
maintenance of solar collectors, water for steam generation and cooling
purposes, oil or gas used by backup generators, thermal or electrical storage,
turbines or engines, access roads, and electrical inverters and transmission
facilities. The scope and level of site
clearances should include the areas of proposed surface disturbances and areas
potentially affected by the project.
The level of NEPA analysis will be
determined by project scoping and the anticipated potential impacts on the
environment. The level of analysis will reflect the amount of land needed for
the solar energy collection and associated support facilities, the amount of
surface to be disturbed, water requirements and potential impacts on wildlife
and land resources. It may be possible
to combine the required environmental review process for a solar energy
development project with other required State or local environmental
requirements. This would streamline the process and be consistent with
Departmental policy on intergovernmental cooperation.
LR 2000 Data Entry
Use the commodity code (975) for
solar energy facilities and identify under the comment section whether the
authorization is for a PV or concentrated solar power facility. This will allow BLM to identify solar energy
related right-of-way authorizations and to track these uses within LR 2000.
Time Frame: This policy is effective immediately.
Budget Impact: The application of this policy will have a
minimal budget impact. Any land use
planning associated with this policy will be part of existing planning
efforts. Currently there are no
applications for commercial solar energy facilities on public lands. However, it is assumed that any solar energy
commercial development will probably meet the criteria for full cost recovery. In addition, BLM post authorization monitoring
activities are also subject to the cost recovery provisions of the
regulations. These procedures will
minimize any unnecessary work.
Manual/Handbook Sections
Impacted: This Instruction
Memorandum and policy affect BLM Manual 2801, Right-of-Way Management and
Handbook H-2801-1.
Coordination/Contacts: This policy was developed with the assistance of
the Washington Office Planning, Assessment and Community Support Group (WO 210)
and the Property, Acquisition and Headquarters Services Group (WO 850). BLM State Offices were also provided an
opportunity to review the policy and provide input prior to finalization.
For Further
Information: Any questions concerning
the content of this IM should be directed to the Washington Office, Lands and
Realty Group (WO 350) and the attention of Ray Brady, Group Manager at (202)
452-7773 or by Email at ray_brady@blm.gov.
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Signed by: |
Authenticated by: |
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Kathleen Clarke |
Barbara J. Brown |
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Director |
Policy & Records
Group, WO-560 |