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.
Performance and Reclamation Bond
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: