On September 30, 2014, the Bureau of Land Management issued a proposed rule that would establish competitive processes, terms, and conditions, including rental and bonding requirements, for solar and wind energy development projects on public lands. 79 Fed. Reg. 59,022 (Sept. 30, 2014). The proposed rule outlines a new competitive leasing program for solar and wind energy leases in certain “designated leasing areas,” including the nomination process, competitive bidding procedures, and the administration of solar or wind energy leases. Outside designated leasing areas, the proposed rule would still require a competitive application process to select a preferred applicant for the processing of a solar or wind energy application.

The proposal creates ‘‘designated leasing areas’’ that BLM identifies as lands appropriate for development, “while minimizing cultural and environmental impacts through avoidance, minimization, and compensatory mitigation.” These areas are intended to provide an incentive to renewable energy developers looking for potential sites to develop. Site-specific NEPA analysis would still be required for each project approval. However, the creation of designated leasing areas deemed suitable for development is intended to streamline that analysis, ideally saving developers time and money.

If finalized, despite BLM’s streamlining efforts, the competitive processes required by the proposed rule will complicate siting decisions for the renewable energy industry and add to the cost of development on public lands.

The comment period on the proposed rule closes December 1, 2014.