Cost Recovery Fee Schedule and Associated Cost Recovery Regulation Changes
2800/2880/2920 (350) P
This Instruction Memorandum (IM) provides guidance to implement regulatory changes made by the Bureau of Land Management (BLM) to Title 43 Code of Federal Regulations (CFR) parts 2800, 2860, 2880, and 2920 through the final rule titled “Update of the Communications Uses Program, Cost Recovery Fee Schedules, and Section 512 of FLPMA for Rights-of-Way,” which was published in the Federal Register on April 12, 2024, and went into effect on May 13, 2024 (the “final rule”).
This IM addresses the provisions of the final rule that regulate cost recovery.[1]
[1] There will be two other Instruction Memoranda issued to provide guidance on other portions of the final rule: one to address regulations pertaining to communications uses and one to address vegetation management, operations and maintenance, and standard fire stipulations.
Mission
Changes to Cost Recovery Categories
The attached schedule for cost recovery fees applies to rights-of-way and other land use authorizations issued pursuant to the Federal Land Policy and Management Act (FLPMA) and Mineral Leasing Act (MLA) and their respective regulations at 43 CFR parts 2800, 2860, 2880, and 2920.
The final rule revised the range of federal work hours involved with and established a new baseline charge for actions belonging to cost recovery categories 1-4 and made changes to the parameters for cost recovery categories 5 and 6 as well.
Other Changes Related to Cost Recovery
The following table summarizes the significant changes made to the cost recovery requirements. All field staff will read and review the regulations as published.
Most Significant Regulatory Updates Pertaining to Cost Recovery
|
FLPMA Citation(s) |
MLA Citation(s) |
Title or Language Amendment |
|
§2804.14(a)
|
§2884.12 |
Amended: Cost recovery fees now include both processing and monitoring activities; makes changes to maintain consistency with §2804.16 in light of changes to that section. |
|
§2804.14 |
§2884.12(b) |
Amended: Updates the FLPMA and MLA Cost Recovery Fee Table with estimated hours (refer to Attachment 1) |
|
§2804.15 §2804.17 |
§2884.14 §2884.15 |
Amended: Replaces references to “processing and monitoring” with “cost recovery.” |
|
§2804.17 |
§2884.15 |
Amended: Further defines Cost Recovery Category 5 as involving projects within defined geographic area “or for a specific common activity for many projects.” |
|
§2804.17 |
§2884.15 |
Amended: Requires that a request for a Master Agreement include: (A) A description of the geographic area covered by the Agreement and the scope of the activity the holder plans. (B) A preliminary work plan that states what work the holder must do and what work the BLM must do to process the application. (C) A preliminary cost estimate and a timetable for processing the application and completing the projects. (D) A statement whether the holder wants the Agreement to apply to future applications in the same geographic area that are not part of the same projects; and (E) Any other relevant information that the BLM needs to process the application (e.g., financial information, maps, environmental or cultural data about the area covered by the application and/or grants). |
|
§2884.16(a) |
Amended: Processing and monitoring are included in a Master Agreement. |
|
|
§2804.18(c) |
§2884.16(c) |
Amended: Replaces “processing and monitoring” with “cost recovery.” |
|
§2805.16(b) |
|
New: Provides that the cost recovery fee schedule for Categories 1 through 4 will be updated on an annual basis based on the previous year’s change in the IPD–GDP, and the cost recovery fees for Category 5 as specified in the applicable Master Agreement. |
|
§2920.0-5 |
|
Amended: Adds the term and definition of “cost recovery.” |
|
§2920.8(b) |
|
Amended: Changes Subheading from “Processing and Monitoring Fees” to “Cost Recovery Fees” to provide consistency with revisions made to part 2800. |
Annual Updates to Cost Recovery Fees
The regulations at 43 CFR 2804.14, 2805.16, 2884.12, and 2885.24 require the BLM to adjust cost recovery processing and monitoring fees annually based on the previous year’s change in the Implicit Price Deflator-Gross Domestic Product Index (IPD-GDP), as measured from the second quarter of the previous year through the second quarter of the current year. This IM includes the initial updates based on the publication of the new regulations. Additional updates will be published before January 1, 2025, for calendar year 2025, and annually thereafter.
This IM is effective immediately.
The application of this policy will have a positive impact on the budget. Increases in cost recovery fees will provide additional funds to be used within the right-of-way program in conformance with the requirements of FLPMA and the MLA.
Cost Recovery: Both FLPMA and the MLA authorize the BLM to collect cost recovery fees in advance for the administrative and other costs incurred in processing applications for use of public lands and for the subsequent monitoring after the authorization is issued. This PIM provides guidance to implement changes made to regulations pertaining to cost recovery and includes the Cost Recovery Fee Schedule for FLPMA and MLA Rights-of-Way Actions, which is attached and valid through December 31, 2024. The new fees for which that Schedule provides have been placed into the Mineral and Lands Records System for staff use.
None
Glossary of terms related to rights-of-way. MS2800 Glossary; MS 2880 Glossary
If you have any questions concerning the content of this IM, please contact Stephen Fusilier, Branch Chief, Rights-of-Way at 202-309-3209 or sfusilie@blm.gov or Michael Hogan, Realty Specialist at 505-360-8231or mthogan@blm.gov.
The Division of Lands, Realty and Cadastral Survey (HQ-350) coordinated preparation of this IM with the Department of the Interior’s Office of the Solicitor and the U.S. Forest Service.