Bureau of Land Management Solar Energy Permitting and Program Resources
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Performance and Reclamation Bond

Procedures for Issuing Solar Energy ROW Grants Applicant-initiated action BLM-initiated action Major milestone BLM Issues ROW Grant BLM Evaluates Application Terms and Conditions for Grants Developer Submits Application Due diligence Assignments Issue notice to proceed Rent and applicable fees Performance and reclamation bond Finalize cost recovery Finalize plan of development Conduct NEPA evaluation Reject or prioritize application Variance concurrence (if applicable) Competitive bidding (if applicable) Initiate early tribal and interagency outreach Determine applicant technical/financial capabilities Preliminary meetings Initiate cost recovery Plan of development Application filing fee
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The BLM requires a Performance and Reclamation bond for all solar energy projects to ensure compliance with the terms and conditions of the right-of-way (ROW) authorization.

  • The bond amount for a solar energy ROW grant is determined based on the preparation of a Reclamation Cost Estimate (RCE) but must be no less than $10,000 per acre of land disturbance.
  • The grantee must provide a performance and reclamation bond prior to the BLM issuing a Notice to Proceed (see 43 CFR 2805.12(c)(1)).
  • The bond secured for a grant must also cover the estimated costs of cultural resource and Indian cultural resource identification, protection, and mitigation for project impacts.

IM-2019-013 conveys policy and direction for requiring bonding determinations, and bonding where appropriate, on BLM ROW grants for authorized activities. The IM also includes templates, forms, and documentation requirements.

Acceptable bond instruments include:

  • cash
  • cashier's or certified check
  • certificate or book entry deposits
  • negotiable U.S. Treasury securities
  • surety bonds from the approved list of sureties (U.S. Treasury Circular 570) payable to the BLM
  • Irrevocable letters of credit payable to the BLM and issued by banks or financial institutions organized or authorized to transact business in the United States
  • An insurance policy, provided that the BLM is a named beneficiary of the policy, and the BLM determines that the insurance policy will guarantee performance of financial obligations and was issued by an insurance carrier that has the authority to issue policies in the applicable jurisdiction and whose insurance operations are organized or authorized to transact business in the United States.

Unacceptable bond instruments include:

  • a corporate guarantee