Bill promoting U.S. leases is praised, but bid to ease NEPA reviews draws questions

E&E News
By Jessica Estepa
July 30, 2014

A bipartisan bill aimed at boosting wind and solar energy production on federal land was lauded yesterday by witnesses at a House Natural Resources subcommittee hearing, but differences remain on a proposal that would remove requirements for environmental reviews for geothermal projects.

There was praise for Rep. Paul Gosar's (R-Ariz.) H.R. 596, the "Public Lands Renewable Energy Development Act," which would require the government to establish leasing areas for wind and solar energy on federal land.

Eric Fitzer, senior energy programs manager for the Arizona Governor's Office of Energy Policy, said that the bill modernizes clean power development while reducing investors' risks. It would help make Arizona, he said, the "Solar Capital of the World."

The legislation would also be a boon on the county level, said D.L. Wilson, chairman of La Paz County, Ariz. It would streamline permitting and create a revenue sharing system that would benefit states, counties, federal field offices and the federal government itself.

"It is critical for not just La Paz County but public land counties throughout the country that H.R. 596 passes," he said. "This bill offers an opportunity to expand renewable energy projects throughout Arizona and La Paz County by taking advantage of the unique environment of the Southwest."

The measure also received support from representatives of both conservation and industry groups alike.

The Obama administration noted that it had concerns about the royalty system outlined in the legislation, which would give 25 percent of royalties to states and 25 percent to counties. Another 25 percent would be placed in a renewable energy resource conservation fund that would be used to protect habitat and improve access to federal lands. The remaining 25 percent would be deposited in the Treasury's general fund.

Michael Nedd, assistant director at the Bureau of Land Management, said the agency is concerned that this would not provide a fair return from projects that aren't generating electricity. He recommended that the committee revise the measure to include a system for covering all phases of project development.

BLM's parent, the Interior Department, also noted that in order to create a comprehensive accounting and auditing system as required by the legislation, it would need more time and resources.

Overall, though, the department supported many of the goals of the legislation.

But there was disagreement over H.R. 1363, from Rep. Raúl Labrador (R-Idaho), which would exempt some geothermal exploration projects from National Environmental Policy Act requirements.

Subcommittee ranking member Rush Holt (D-N.J.) criticized the measure, saying it is another move out of Republicans' playbook to weaken NEPA.

His concerns were shared by Nedd, who said Interior opposed the legislation because it is inconsistent with long-standing NEPA requirements. He said that policies are already in place that allow BLM to make exemptions for some projects and that the agency has done so in the past.

Still, Scott Nichols, manager of permitting and lands for U.S. Geothermal Inc., called the measure "critical" for his industry. BLM has failed to respond to industry needs, he said, despite justification for exclusions in a number of regulations.

"At a time when the United States is working diligently toward energy independence and trying to maximize renewable baseload energy, the geothermal industry is unnecessarily subjected to more onerous federal review, unnecessary delays and the resulting higher costs than other resource developments," he said.

The panel also heard testimony on H.R. 2004, a measure from Reps. Mike Simpson (R-Idaho) and Peter DeFazio (D-Ore.) to expand geothermal production on public lands.

Interior said it recognizes the need for noncompetitive leasing in some situations and said it will work with the bill's sponsors on other provisions.