The Bureau of Land Management is expected to release its Wind and Solar Leasing Rule in the next few weeks.  The rule would create a competitive system for solar and wind energy development on federal lands. It would also establish fees based on megawatt capacity for wind and solar energy projects in order to capture a fair market value and a fair return for taxpayers. Crafting a taxpayer-friendly new rule is precisely what the BLM should be doing, but the solar industry wants the BLM to back off—something that would take the development of renewable energy on public lands in the wrong direction.

The BLM is playing catchup with renewables. It does not have a system to locate and offer plots for renewable projects on federal lands like it does for oil and gas and other energy sources. Normally, the BLM manages development on public lands by issuing leases and charging royalties to commercial producers. But for wind and solar, the BLM cannot actually create the kind of leasing system that exists for oil and gas, including charging royalty payments, until Congress gives the agency  the authority to do so. To no one’s surprise, Congress has not been quick to act. So, the BLM has tried to work around this problem – and fulfill its statutory mandate to ensure taxpayers receive a fair return – by charging rent for renewable energy projects based largely on the amount of electricity produced. That’s not ideal, but it’s certainly closer to a legitimate energy program.

The proposed leasing rule would codify this system with a megawatt capacity fee and create a competitive bidding process for the right to build and operate utility-scale renewable projects on public land. The proposal also encourages industry to locate projects in zones that have been vetted and prioritized for build-out of the necessary transmission infrastructure. The BLM believes this idea would streamline the process of approving projects. Last year, the BLM green-lighted three solar energy projects in Nevada using a competitive leasing procedure similar to the one outlined in the proposed rule. The approval process moved much more quickly.

With the BLM finalizing the rule, the wind and solar industry organizations—much like their oil and gas counterparts before them–have turned on their doomsday devices. If the BLM moves ahead, they say, new renewable energy development on federal land will grind to a halt. Keep in mind that the wind industry has located only about two percent of all wind energy production on federal lands under the old rules. In essence, the industry argues that the BLM wants too much control and, by finalizing the rule, will dash any hopes of meeting the lofty renewable energy targets.

Don’t buy it. The BLM should not give away public assets—in this case, access to lands with high value because of their location and intensity of solar radiation. Companies should compete for the right to build power facilities on this land, and they should give the owners – taxpayers – a fair return for the use of these resources.

The BLM has done a good job trying to protect taxpayers with its proposal to competitively lease renewable leases. The agency must move forward with its proposed rule.

Ryan Alexander is president of Taxpayers for Common Sense, a national, independent budget watchdog and taxpayer advocate.

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