Acreage Rent Adjustment for Wind and Solar Facilities within California counties of Riverside, San Bernardino, and San Diego

June 16, 2021

In Reply Refer To:
2800 (CA-930) P

EMS TRANSMISSION 06/16/2021
Instruction Memorandum No. CA-2021-008
Expires: 12/31/2025

To:                  BLM California District Managers, Field Managers, and Realty Specialists

From:              Karen Mouritsen, California State Director

Subject:           Acreage Rent Adjustment for Wind and Solar Facilities within California counties of Riverside, San Bernardino, and San Diego

Program Area:  Wind and Solar Energy

Purpose:   To promote the greatest use of wind and solar resources on public lands within the counties of San Bernardino, Riverside, and San Diego, California, this Instruction Memorandum (IM) reduces current per-acre rent rates in these counties for wind energy and solar energy developments.

Administrative or Mission Related:  Mission

Policy/Action:  This IM reduces per-acre rent rates for existing and new wind and solar development projects under the standard rate adjustment method, authorized by the Bureau of Land Management (BLM) under a right-of-way (ROW) grant or lease, located on public land within the following counties of California:  Riverside, San Bernardino, and San Diego. Attachment 1 includes updated per-acre rent rates for existing and new wind and solar energy development projects within these counties along with the accompanied determining methodology.

BLM staff shall calculate the per-acre component of wind and solar rent using the corresponding county rate on Attachment 1 as follows. The corresponding county rate for 2021 may be used only for calculating the per-acre component of “initial rent” on newly authorized solar or wind energy projects during the 2021 calendar year. The corresponding county rate for 2022-2025 may be used for calculating the per-acre component of “initial rent” and “annual rent” for calendar years 2022-2025. The calculation of megawatt (MW) capacity fee shall continue to use rates published in BLM Headquarters IM-2021-005. BLM staff are encouraged to coordinate with LRAM lead when calculating courtesy statements and accounts-receivable bills under this policy.

Timeframe: This policy shall be effective as of the date of this IM through calendar year 2025, unless superseded by law, regulation, or policy.

Budget Impact:  This policy is not expected to affect budget.

Background:  The BLM authorizes solar and wind energy development projects under Title V of the Federal Land Policy and Management Act of 1976, as amended (FLPMA). Solar and wind energy development authorizations are subject to paying acreage rents and MW capacity fees. Under the BLM’s current solar and wind rent schedules (see IM-2021-005), acreage rents for solar and wind projects authorized within Riverside, San Bernardino, and San Diego counties in California have realized dramatic increases in recent years. In response to policy objectives and direction in Executive Orders 13390, Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis (Jan. 20, 2021), and 14008, Tackling the Climate Crisis at Home and Abroad (Jan. 27, 2021), and in accordance with Section 3103 of the Energy Act of 2020, 43 U.S.C. § 3003(b)(2), the BLM has determined that reduced per-acre rents are appropriate to promote the greatest use of wind and solar energy resources on public lands in these three counties where rates have increased dramatically. The BLM consulted with the Department of Interior Appraisal Valuation Services Office (AVSO) in determining the reduced per-acre rents identified in Attachment 1. Only wind energy and solar energy ROW authorizations within the California counties of Riverside, San Bernardino, and San Diego have been subject to Zone 9 per-acre rent rates under BLM’s current solar and wind rent schedules.

Manual/Handbook Sections Affected:  None

Coordination:  This IM was coordinated with the Department of Interior’s Office of the Solicitor, BLM Assistant Director of Energy, Minerals, and Realty Management, BLM HQ Division of Lands, Realty and Cadastral Survey.

Contact:  Danielle Chi, Deputy State Director for Resources, Lands, Planning, (916) 978-4637, dchi@blm.gov.

Signed by:                                                            Authenticated by:
Karen Mouritsen                                                  Kathleen Christian
State Director                                                       GIS/Applications Mgmt. Branch, CA-946

Attachment

            1.  Rent Adjustment Spreadsheet, Solar and Wind Development (1p)