Bureau of Land Management Solar Energy Permitting and Program Resources
Quick Links
The BLM's updated Renewable Energy Rule went into effect on July 1, 2024. The information presented on this webpage is in the process of being updated.

Cost Recovery

Major milestone BLM-initiated action Bidder/leasee-initiated action Due diligence Assignments Bonding Applicable fees Finalize plan of development Conduct NEPA evaluation (if not conducted prior to leasing) Cost recovery Rental payment Issue ROW lease Reject bids (if applicable) Bidding Variable offsets Notice of competitive offer Call for nominations(if applicable) Select and prepare parcels Initiate Competitive Process BLM ConductsCompetitive Offer BLM Selects Successful Bidder Terms and Conditions for Leases BLM Issues Notice to Proceed Procedures for Issuing Solar Energy ROW Leases Competitively
Click on the steps in the diagram to learn more

Leaseholders must pay the reasonable costs for the BLM or other Federal agencies to review and approve the plan of development (POD) and to monitor the lease. To expedite review of the POD and monitoring of the lease, leaseholders may notify BLM in writing that they are waiving paying reasonable costs and are electing to pay the full actual costs incurred by the BLM.

Reasonable costs include but are not limited to costs of special studies; environmental impact statements; monitoring construction, operation, maintenance, and termination of any authorized facility; or other special activities. In determining whether costs are reasonable under this section, the Secretary may take into consideration actual costs, the monetary value of the rights or privileges sought by the applicant, the efficiency to the government processing involved, that portion of the cost incurred for the benefit of the general public interest rather than for the exclusive benefit of the applicant, the public service provided, and other factors relevant to deter-mining the reasonableness of the costs (Federal Land Policy and Management Act, sec. 304(b)).

Actual costs are financial measure of resources the Federal government expends or uses in processing a right-of-way application or in monitoring the construction, operation, and termination of a facility authorized by a lease. Actual costs includes both direct and indirect costs, exclusive of management overhead costs (43 CFR 2801.5(b)).