BLM: The Colossal Snafu of the 21st Century
10.23.09 |
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Fred Kesinger, Senior Executive, Everest Consulting Partners |
The Bureau of Land Management (BLM) has come under harsh criticism
during the last part of 2008 and the early part of 2009 for creating a
monstrous backlog of solar energy applications. In July 2008, the BLM
put all solar applications on hold ostensibly because these projects
are: (1) large scale commercial facilities with a large foot print and
most likely will be used exclusively for solar energy generation; (2)
most likely to occupy the land for a long period of time, perhaps as
long as 30 years; (3) these projects will require changes to the land
use plan; and (4) the BLM will be required to conduct a detailed
environmental review under NEPA.
Critics have complained about the huge backlog of solar applications.
Although the BLM has been flooded with solar energy applications, it
doesn't process them very fast. True performance metrics on how long the
average solar applications take are hard to find. One would assume the
average turnaround time is somewhere north of 14-16 months.
And when the BLM put all solar applications on hold last year,
investors, solar companies, manufacturers, politicians, the general
public, Sierra Club and environment organizations were scrambling to
redirect. Western states advocates were busy lobbying for some sort of
action from the BLM. Some of the harshest critics came from investors
when they felt the BLM stands for Bureaucratic Land Moratorium.
This 22 month moratorium caused a huge ripple effect throughout the
renewable community -- yes, even a tsunami of sorts. Active projects
were scrapped. Funding efforts went south. Deals were cancelled. Orders
were placed on hold. Havoc was the watchword of the day. Politicians
started receiving an avalanche of mail from disgruntled investors and
company executives. Solar panel manufacturers had to put skilled
personnel on furlough. Some manufacturing plants were closed. Various
PPAs were also cancelled due to the uncertainty of the approval process.
Most of the solar developers are worried the BLM will not approve their
projects in time to qualify for federal aid. The recent stimulus bill
passed by congress in February 2009 requires solar developers to begin
construction by the end of 2010 to qualify for grants from the Treasury
Department (up to $2.5 billion).
Katherine Gensler, Manager of Regulatory and Legislative Affairs for the
Solar Energy Industries Association said, "Hitting the brakes before
we'd really gotten off the ground was definitely a scary prospect for
the industry".
The BLM has enormous responsibilities. It manages 258 million acres of
public lands in 13 western states. These public lands make up about 13
percent of the total land surface of the United States and more than 40
percent of all land managed by the Federal government. It balances the
ecological systems of nature, while at the same time, works with
environmental, outdoorsmen, politicians, lobbyists, recreational,
businesses and the American public. A strong challenge in these trying
times.
Now the Good News
Fortunately Secretary of the Interior Ken Salazar (and a former senator
from Colorado) recognized the BLM was not actively pursuing the best
interests of the American people, particularly in the western states,
and initiated a number of major projects that will ultimately speed up
the review and approval of solar applications.
* On June 29, 2009, Secretary of Interior Ken Salazar announced the
"fast tracking" of solar energy on public lands, including 670,000 acres
for solar study zones and expediting their environmental analysis. The
announcement included 13 large-scale solar plants, creates 50,000 jobs
and plans to be under construction by the end of 2010. Only areas with
"excellent resources, suitable slope, proximity to roads and
transmission lines or designated corridors and containing at least 2,000
acres of BLM administered public lands " were considered.
Secretary Salazar said in making the announcement "I would hope that
when people look back in the year 2020 to this announcement ... they
will see this as a true milestone in moving the United States of America
forward in the renewable energy future". Secretary Salazar also said he
expected there to be 13 commercial-scale solar projects under
construction on public lands by the end of 2010.
* Secretary Salazar recommended to President Obama Bob Abbey, formerly a
top Interior Department official in Nevada, as the new Director of the
BLM. Mr. Abbey has 32 years experience in the overall conduct of energy,
environment, and natural resources, mostly in the western states,
including 8 years as BLM's director in Nevada. He is held in high regard
by the industry he represents and he has received awards and kudos from
the U.S. Senate. The energy industry has high hopes for his successful
leadership.
* Secretary Salazar has established new BLM offices in Nevada,
California, Arizona and Wyoming to expedite the processing of the solar
applications. These new offices are close to where most of the current
utility-grade action is taking place. The office in Fillmore, Utah, is
already open. The BLM has undertaken a massive recruiting program to
locate and identify skilled personnel to staff these new offices.
The Bureau of Land Management has seen a 78 percent jump in the number
of solar energy project applications since it reversed last year's
ill-fated decision and started accepting applications again. The number
of applications has risen to 223 from 125. The applicants are vying to
build solar power plants of 10 megawatts or larger in California,
Arizona, Utah, New Mexico, Colorado and Nevada according to data
provided by the BLM. Over 2 million acres are involved in these
utility-scale projects. Out of the 223 projects, only 2 have progressed
sufficiently enough to undergo environment reviews.
Conclusion
True to his reputation, Secretary Salazar has made unprecedented and
bold decisions to insert himself more actively in the chain of command
at the BLM. Although he faces a challenging opportunity of momentous
scale, he has proven his mettle by hearing the renewable energy crowd.
He has initiated a bold, new sense of urgency into both the people and
the processes of the DOI and the BLM.
The Beltway Boys (and girls) of the U.S. Congress cannot (and should
not) bear all the blame for the BLM's dismal failure. Whether poor
management, lack of leadership, budget, vision or all of the above, the
BLM has sullied its reputation of its otherwise stellar 200 year
history. To be sure, there are many professionals working hard to be
good stewards of the natural resources of this great country. But the
current (and the previous) BLM management must bear the blame and be
accountable for this monumental snafu. It will be extremely difficult if
not impossible for the BLM to reinvent themselves and establish a new
order.
Only time will tell how successful how Secretary Salazar and the new BLM
Director will be. The U.S. is at a critical juncture while other
countries have taken the lead in the solar industry.
Wake up, America. It's time to retake the Hill!
Comment
Carl Luther
10.27.09 As an energy professional, albeit with no particular
affiliation with any development firm or company, I'm concerned that
private industry somehow believes they ought to have access to public
lands. Industry is not proposing installations out of the goodness of
their hearts - they are proposing these installations because they want
a place at the public trough. There, I said it...these so-called "green
barons" are willing to despoil large sections of natural, public
property for private gain. It is disengenous to state that there are no
other places where these installations can be built. With the notable
exception of the Western states, most property is privately owned. And
guess what? That private ownership happens to dove-tail nicely with
population centers. Putting an installation in the middle of "unused"
public lands in the west means that less of the energy generated will
actually make it to the consuming public due to transmission losses.
Don't get me wrong - I'm completely on-board with promoting the use of
green-energy. But as an American, I am vehemently opposed to the
utilization of public lands for the installation of massive
installations feeding a for-profit private entity. If the government
wishes to create a public utility as they did with the Tennessee Valley
Authority, Salt River Project, and others, and define and annex
properties accordingly for the public good, then the precedent exists.
The author in this case does not present such a case.
Having grown up in the western states where my family ranched, farmed
and were public servants, I can assure you that I am aware of the many
"multiple use" areas the Forest Service, BLM, and various state agencies
have to juggle in using public lands. Late 19th and early 20th century
scars remain on the land from some of those experiments that would not
be permitted today. The thing those early industrial experiments on
public land have in common with what is being proposed is that once the
profit dried up, the owners vacated, leaving nothing more than the
detrius of their having been there. Let's not make that mistake again.
There are plenty of privately-owned areas where these types of
activities can occur. Public process needs to occur when it deals with
the disposal or use of properties held in trust for the public at large.
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