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The DOI said it hopes to increase the economic certainty of renewables projects sited on public land by reducing costs for developers, and pass along savings to ratepayers.

The Department of the Interior announced Thursday a proposed update to right-of-way regulations for solar and wind energy projects on public land that it hopes will reduce capacity fees by around 80%, as well as streamline application reviews.

In a release, the department said that its Bureau of Land Management would use authorizations established under the Energy Act of 2020 — which it used in 2022 to reduce fees by around 50% — to codify further reductions in acreage rents and capacity fees.

The proposed rule would also expand the BLM’s authority regarding the leasing of priority areas for wind and solar development, including allowing the bureau to accept leasing applications without going through a full auction, and accept non-competitive applications that are in the public interest.

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Source: Utility Dive

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