Rebecca W. Watson Welborn Sullivan Meck & Tooley, P.C.

Sturm College of Law, University of Denver Distinguished Natural Resources Practitioner-in-Residence Seminar

April 24, 2017

DOING PUBLIC LAND POLICY: THE SOLAR EXAMPLE

First Lesson: policy change is additive Second Lesson: policy change is mostly

incremental Third Lesson: policy change is problem

solving and political

Introduction How do you make policy?

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Public Land Solar Development Bush Era

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2001 Bush National Energy Policy Develop renewable energy (RE) Expand RE tax credits

• 15% tax credit rooftop solar

Use ANWR O&G royalties • RE research

How to permit RE on public lands? Options: FLPMA Title V rights-of-way (ROWs) FLPMA “catch-all” regulation, 43 CFR § 2920

Public Land Solar Development BLM’s Challenge

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2002 Wind Energy Development Policy IM No. 2003-020

• Wind permitting guidance

Wind PEIS (June 2005) • The planning component

Public Land Solar Development Choice: FLPMA Title V ROW

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No requests to develop solar on public lands Nat’l Energy Policy directive to facilitate RE Political driver: 2004 re-elect October 20, 2004: Solar policy announced 2004 Solar Energy Development Policy IM No. 2005-006

• Solar permitting guidance (updated IM 2007-97)

Public Land Solar Development Solar Permitting

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2005 Energy Policy Act Tax credits for solar energy Identify potential for RE Interior permit 10,000 MW RE 2015 BLM Solar PEIS

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Public Land Solar Development Legislative Action

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Public Land Solar Development Public Land Solar Development

Concentrating Solar Resource of the United States

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Energy Laboratory for the U.S.

Department of Energy.

Billy J. Roberts

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Result – 2006: Solar “land rush” for permits 78% increase in solar applications by 2009

Problem: BLM wasn’t ready

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Public Land Solar Development 2005 EPAct

2009 – BLM’s “policy tools” inadequate IM-2007-097 Solar PEIS ongoing

Issues: Permitting backlog Land use conflicts Speculation Lack of due diligence

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Public Land Solar Development Obama Era

2009: Obama Administration “Transform American Energy” Address Climate Change

Interior Secretary Salazar Secretarial Order No. 3283, “Enhancing

Renewable Energy Development on Public Lands” (Jan. 2009) Secretarial Order No. 3285, “Renewable Energy

Development by Department of the Interior” (Mar. 2009) RE one of “highest priorities”

Solar Development Policy Obama Era

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American Recovery and Reinvestment Act (2009) (“Stimulus Bill”) $41 million to reduce RE backlog 4 Renewable Energy Coordination Offices Expedite RE development

Solar Development Policy Legislative Component

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Adjust Solar PEIS De-conflict solar Focus solar in the “right places” – SEZs Fast-track NEPA BLM/not applicant-driven

Why? ARRA $$ Tax credits = 30% construction grants ($$) December 31, 2010 (extended 1 year)

Result: Fall 2010: 9 “fast-track” solar projects permitted

Solar Development Policy Legislative Driver

Solar PEIS/Western Solar Plan (2012) 17 SEZs (285,000 acres)

• 2 more added later

Closed 79 million acres to solar 89 RMPs in 6 states amended

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Solar Development Policy

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January 2011 – Lessons Learned Workshop Guidance:

• NEPA Compliance for RE ROWs – IM-2011-059 • RE Due Diligence – IM-2011-060 • RE Pre-Application/Screening – IM-2011-061 • Grazing Conflicts and RE – IM-2011-181 • Mining Conflicts and RE – IM-2011-183

Rule: • Segregation from mining entry for RE, 78 Fed. Reg.

25,204 (April 2013)

Solar Development Policy Fixing the Policy Challenges

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Over 52 RE projects permitted 29 solar projects

2015: 2 of world’s largest

solar plants in CA 1st competitive solar

sale in NV Permitting time reduced from 4 yrs to 1.5 yrs Met EPAct 2015 goal in 2012 20,000 by 2020 – new Obama goal

Solar Development Policy Solar Policy Results

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RE rulemaking to solidify 2011 guidance 2011: ANPR for competitive leasing 2014: Proposed Rule 2016: Final Rule, 81 Fed. Reg. 92,122 (12/19/16)

• Effective date: January 18, 2019 • RE zoning – “designated leasing areas” (DLAs) • Financial incentives to locate in DLAs • Screen out conflict/prioritize low-conflict projects • Due diligence requirements • Rents include electricity generation component

Solar Development Policy Making Policy “Stick”

Legislation: 2017 – “Public Land Renewable Energy Development Act” (S.282)

Trump RE policy?

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Solar Development Policy Next Steps

Questions?

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Rebecca W. Watson rwatson@wsmtlaw.com

Questions?

Rebecca W. Watson

rwatson@wsmtlaw.com

WELBORN SULLIVANMECK & TOOLEY PCATTORNEYS AT LAW

ct>og: ^ s ^ ^ Law of the landINDEPfNOfNT MEMBER

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