Client Alert

Federal Government Establishes New Rental Policy for Solar Projects Located on Public Lands

July 07, 2010

Sanjay Ranchod & Matthew J. Sanders

On June 10, 2010, the Bureau of Land Management (BLM) released an Interim Rental Policy for solar energy right-of-way authorizations on public lands. Solar project developers and investors should re-evaluate proposed projects in light of the new policy, which establishes rental rates that are now in effect.

Under the methodology reflected in the new rental policy, the annual rent for a solar project located on BLM-managed lands will depend on the projects acreage, power capacity, and type of solar technology. The rental policy will provide a greater level of certainty about the costs associated with developing large-scale solar projects on public lands administered by the BLM.

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