Designated Leasing Areas (DLAs) in Land Use Plans/Amendments
EMAIL TRANSMISSION – 04/21/2017
Instruction Memorandum No. MT-2017-028
Expires: 09/30/2020
To: Montana Dakotas Leadership
From: Acting State Director
Subject: Designated Leasing Areas (DLAs) in Land Use Plans/Amendments
Program Area: Lands and Realty, Solar and Wind Energy, Land Use Planning
Purpose: This Instruction Memorandum (IM) rescinds IM MT-2011-067 and IM MT-2014-062 and provides new guidance on the consideration of designated leasing areas (DLAs) for solar and wind energy on public lands administered by the Bureau of Land Management (BLM) through implementation of the solar and wind energy rule published on December 19, 2016, and effective on January 18, 2017. It also clarifies treatment of Potential Wind Development Areas designated in several Montana/Dakotas Resource Management Plans (RMPs) in accordance with the 2011 and 2014 IMs listed above.
Policy/Action: Land use allocations for solar and wind energy are made under the authority of the Federal Land Policy and Management Act (FLPMA) and in accordance with land use planning guidance found in BLM Handbook H-1601-1, Appendix C, Lands and Realty, and BLM Manual 2802 (Land Use Planning for FLPMA Grants and Leases). The regulations at 43 CFR 2800 lay the framework for the BLM to manage solar and wind right-of-way (ROW) use of the public land through a system of DLAs. It is BLM’s policy that whenever possible, future solar and wind ROWs will be encouraged and sited in DLAs. This IM establishes guidance implementing the provisions of 43 CFR 2809 for leasing solar and wind energy; WO-301 anticipates updating BLM Manual 2802 in the future to reflect the elements contained in this IM.
Definition and Purpose of a Designated Leasing Area
A DLA is a parcel of land with specific boundaries identified by the BLM land use planning process as being a preferred location for solar or wind energy development (see 43 CFR 2801.5). The DLAs are identified as low resource conflict areas for solar and wind development. When establishing a DLA, the BLM pre-approves the development of certain technology in the area. The pre-approval for such development incentivizes project siting inside a DLA instead of in other areas that may have greater impacts to resources. A lease, including financial incentives, 2 may be issued in abbreviated timeframes after holding a competitive sale. Therefore, relevant resource reviews of the technology must occur prior to the designation to ensure unacceptable resource conflicts do not exist. Subsequent tiered NEPA analysis will generally be necessary for the BLM to offer the lease and to evaluate the lease-holder’s Plan of Development to ensure it fits within the BLM’s previous decisions before allowing development with a Notice to Proceed.
Criteria to Consider in Proposing Designated Leasing Areas
Field offices are directed to consider designation of solar and wind DLAs in the development or revision of RMPs, in addition to the designation of areas to be avoided or excluded from solar and wind uses. The Solar Programmatic Environmental Impact Statement (PEIS) (BLM July 2012; ROD dated October 2012; http://www.solareis.anl.gov) provides useful information on solar development and technologies that can be incorporated by reference. The Wind PEIS (BLM June 2005; ROD dated December 2005; http://www.windeis.anl.gov) contains Best Management Practices that can inform field office review when determining whether identifying DLAs are appropriate
Consider the following elements when determining whether designation of a DLA is appropriate.
Boundaries. The boundary of any DLA must be identified using federal land descriptions and cadastral boundary standards. Fragmented land patterns, manageability, management of adjacent lands, federal, state, tribal and private ownership, potential for nearby utility corridor designations, and proximity to potential non-compatible land uses should be considered when determining the appropriateness of a DLA designation and a proper boundary.
Demand. Factors should include electricity demand, market forces, policy goals and trends in the relevant area of the land use plan, and state and utility plans and forecasts. The BLM may rely on outside expert consultation, such as that from the Department of Energy or state energy offices, regarding electricity demands, markets, and other renewable energy policies. Utility approved plans, state public utility forecasts, and regional planning outcomes such as those originating with an Independent System Operator and the Western Electricity Coordinating Council can all provide useful input into the BLM’s determination of demand for new or adjusted DLAs. Interest and inquiries regarding available lands in the specific planning area, including petitions or expressions of interest, are also indicators of demand. A “demand assessment” should be documented and made available as part of the planning process.
Technical and Economic Suitability. Factors to consider include technological advances allowing increased capture of low-end solar and wind resources, existing or planned transmission infrastructure, potential future capacity changes, proximity of energy load centers, and known constraints (terrain issues, lack of proximity to infrastructure, etc.).
Natural Resource Considerations. DLAs should not be identified in areas with populations of sensitive, rare, and/or special status species, unique plant communities, important biological connectivity areas, designated wildlife habitat management areas, and/or areas with high concentrations of ethno-botanical resources of importance for Native American use. Areas with high ecological value or importance should not be designated.
Cultural Resource Considerations. A review of existing inventory data, or lack thereof, should be considered when proposing a DLA. The presence of known cultural resources versus suspected resources, special designations, presence or proximity to traditional cultural properties of importance to tribal groups, potential for adverse impacts to historic properties under the National Historic Preservation Act (NHPA), and other legal constraints should be taken into account. Areas with high social or cultural value or importance should not be designated. Identifying a DLA without the appropriate level of cultural resource inventory introduces uncertainty into the issuance of a lease and potential for unknown siting constraints or application of design features and mitigation.
Other Screening Criteria. Specific circumstances in the planning area may lend to identification of additional criteria relevant in determining DLAs. The BLM should coordinate with relevant federal, state, and local resource management agencies, tribes, and the public to determine additional appropriate criteria.
Level of Analysis. DLAs proposed in the land use planning process require a sufficient level of analysis to determine whether designation is appropriate based on resource conflicts, required design features, and legal constraints. The potential to impact high value resources is expected to be less in DLAs, and in most cases design features will not be triggered or are substantially met through siting in the DLA. In certain cases, design features may be adapted during the project specific review to occur after lease award. Analysis of DLAs should also include appropriate consultations pursuant to the Endangered Species Act and the NHPA.
Designated Potential Wind Development Areas
Many approved Montana/Dakotas RMPs designated Potential Wind Development Areas as outlined in IM MT-2011-067 and IM MT-2014-062. Potential Wind Development Areas were identified on public lands within a field office in areas exhibiting high wind resources without known resource conflicts. However, specific resource impact reviews and evaluation using the criteria outlined above were not completed to a level sufficient for pre-approving developments in these areas. While these areas are available for competitive processes at the discretion of the Field Manager with jurisdiction over the lands identified, they are not to be treated as DLAs. In the event a field office determines that competitive bidding should be used to offer lands in designated Potential Wind Development Areas, regulations found at 43 CFR 2804.30 regarding competitive processes outside of DLAs should be implemented. The successful bidder for lands 4 within a Potential Wind Development Area becomes the preferred applicant, though grant approval is not guaranteed.
Timeframe: This policy is effective immediately. Land use plans that are in the alternative development stage should consider designation of DLAs using the criteria outlined above.
Budget Impact: The application of this policy will require additional resource inventory and screening beyond that normally conducted during land use planning (see 43 CFR 2809.12) in order to ensure issuance of an immediate lease as long as the successful bidder meets the requirements in 43 CFR 2809.15. Previous Montana/Dakotas’ policy directed offices to consider potential wind development areas, but did not require implementation level review of areas to ensure their suitability for competitive leasing. Such screening could require inventory work and appropriated funds to ensure readiness for leasing.
Background: Section 211 of the Energy Policy Act of 2005 established a goal of authorizing 10,000 megawatts of non-hydro renewable energy project on public lands by 2015. The BLM exceeded this goal with an excess of 17,000 MWs of authorized non-hydro renewable energy projects. The BLM continues to prioritize energy development, including renewable energy, on public lands through its final “Solar and Wind Energy Leasing Rule”, which became effective on January 18, 2017. This final rule updates policies and facilitates the full range of development activities anticipated on public lands, including permitting incentives and efficiencies while protecting important environmental, cultural, and recreational resources.
Manual/Handbook Sections Affected: This IM transmits policy that will be incorporated into BLM Manual 2802 during the next revision.
Coordination: The Montana/Dakotas State Office (MT-924) coordinated preparation of this IM with the BLM National Renewable Energy Coordination Office (WO-301).
Contact: If you have any questions concerning the content of this IM, please contact Renee Johnson, Renewable Energy Program Lead, at 406-896-5028, rrjohnso@blm.gov.
Signed by: Authenticated by:
Jon K. Raby Kathy Iszler
Acting State Director Staff Assistant (MT920)