The pandemic has been exceptionally difficult for U.S. clean energy. Nearly 600,000 clean energy workers have lost their jobs since March, and now the industry has a new problem—rent is due.
The Bureau of Land Management (BLM) has responsibly approved more than 11,000 megawatts of clean energy projects on federal land. And in 2018, the U.S. Department of the Interior decided to stop charging rent on these projects in response to company complaints that the previous administration had raised the rent too high compared to rent on private property.
Now that decision has been reversed, and renewable developments on solar land are on the hook for millions in back rent.
The move to charge these developments back rent could not come at a worse time for clean energy industries, which are already reeling from the effects of COVID-19. Although the rent will provide valuable revenue for the federal government, it could also kill countless previously approved projects and put many clean energy companies out of business for good. In contrast, this decision comes at a time when the BLM has notified oil and gas drilling companies who are operating on federal lands that they will be able to get relief from paying royalties to local governments.
The severe economic blow to renewables that the rent hike poses highlights the need for a better permitting process on federal land.
The Public Land Renewable Energy Development Act (S. 2666/H.R. 3794) would promote responsible clean energy development on federal lands and a fair return to the American taxpayer, as well as creating a renewed drive for clean energy jobs.
The legislation has strong support from Republicans; U.S. Senators Martha McSally (R-AZ), Cory Gardner (R-CO), Steve Daines (R-MT), and James Risch (R-ID) have all lent their support.
“Geothermal, solar, and wind energy are all critical in an all-of-the-above energy solution that keeps costs low and our nation’s energy supply secure,” said Senator Gardner. “The Public Lands Renewable Energy Development Act streamlines the permitting process for renewable energy projects to be developed on public lands. By focusing on responsibly developing renewable energy, we have an opportunity to make a better life for all Americans,” Gardner continued.
The Energy Choice Coalition supports congressional approval for the Public Lands Renewable Energy Development Act. Doing so would give our nation’s clean energy workers a lifeline when they need it the most, while continuing to manage federal land thoughtfully to the greatest benefit of citizens.