Geothermal energy. BLM Has Received Hundreds of Permit Applications since EPAct 2005 and Authorized 25 Projects

Since 2005, BLM has received hundreds of permit applications for utility- scale renewable energy projects. For geothermal  projects, 29 applications were submitted, and construction was approved  for 8 projects, with the permit-processing time frames ranging from 1 to  4 years. In all, since EPAct 2005, BLM has authorized projects sited on  federal lands with the capacity to generate a total of about  5,450 megawatts of electricity, a substantial increase over the number of  megawatts the agencies had authorized before passage of the act,  contributing to the act’s goal of approving 10,000 megawatts of renewable  energy on federal lands by 2015. Of the 416 applications submitted to  BLM, rights-of-way were issued for 20 applications covering 17 projects  (7 wind and 10 solar). About 60 percent of the applications were  ultimately withdrawn by the applicant or denied by BLM. Average permitting time frames  differed depending on the type of project application; it took about 3.5  years to complete the permitting process for solar projects and about 2.5  years for wind projects. Agencies Have Taken Several Steps to Foster Renewable Energy Development on Federal Lands since EPAct 2005

Since EPAct 2005, the federal land management agencies—primarily  BLM but also other Interior agencies and the Forest Service—have  developed and revised policies to address renewable energy  development on federal lands, formalized collaboration within and across  their respective agencies and with state and local governments, and  devoted increased resources to process renewable energy permit  applications. One of BLM’s most comprehensive actions taken with respect to  renewable energy was the completion of programmatic environmental  impact statements for wind, geothermal, and solar energy development,  made final in 2005, 2008, and 2012, respectively (see fig. 4). Agencies Have Taken Steps Intended to Improve Coordination Within and Across Agencies

Since EPAct 2005, the federal land management agencies have taken  steps intended to improve coordination as a way to streamline the  permitting process and promote renewable energy development on  federal lands in general. In addition to these funds, BLM uses cost- recovery fees, which it is authorized to recover from applicants to pay for  processing applications for wind and solar energy development. BLM Plans to Review Its Renewable Energy Activities

To help ensure the efficiency and effectiveness of its renewable energy  activities, BLM issued a new instruction memorandum in December 2012  aimed at providing BLM offices involved in renewable energy activities  with a better understanding of renewable energy policies and regulations  and to provide clarity and consistency in the goals of the agency’s  renewable energy activities. Factors Related to Permitting, as Well as Market and Other Forces, Affect the Pace of Renewable Energy Development on Federal Lands

According to BLM officials’ responses to our questionnaire and interviews  we conducted with others, including industry representatives, many  factors can affect the pace of renewable energy development on federal  lands. Some of these factors relate to the land management agencies’  approval and permitting processes, primarily BLM’s, with BLM  respondents and others identifying some factors that facilitate and others  that hinder the permitting process. Factors facilitating the permitting process  include coordination among the involved parties and resources the  agency can devote to permitting; factors that may hinder or slow  permitting include the quality of submitted applications and managing for  the presence of natural and cultural resources on proposed development  locations. BLM questionnaire respondents also identified requirements for state or  local laws as factors that can hinder the permitting process. Often, however, renewable energy sources are abundant in areas  where transmission lines are scarce—increasing the overall difficulty and  cost of supplying renewable energy. Agency Comments and Our Evaluation

We provided a draft of this report for review and comment to the  Departments of Agriculture, Energy, and the Interior. III), the Department of Agriculture concurred with our  findings, while the Departments of Energy and the Interior had no  comments. Appendix I: Objectives, Scope, and Methodology

This report examines (1) the status of renewable energy permitting on  federal land, including time frames for processing permits applied for  since the Energy Policy Act of 2005 (EPAct 2005); (2) actions the  agencies have taken to facilitate renewable energy development on  federal lands, particularly since the passage of EPAct 2005; and  (3) factors affecting renewable energy development on federal land.
Why GAO Did This Study

Concerns over reliance on imported oil and greenhouse gas emissions from fossil fuel use have led to increased interest in producing electricity from renewable sources, including wind, solar, and geothermal energy. Because federal lands, including those managed by the Departments of Agriculture and the Interior, encompass areas with high renewable energy potential, interest has increased in permitting such activity on those lands. EPAct 2005 includes several provisions intended to increase renewable energy development on federal lands, including goals for approving renewable energy projects. GAO was asked to look at (1) the status of renewable energy permitting on federal land, including time frames for processing permits applied for since EPAct 2005; (2) actions federal land management agencies have taken to facilitate renewable energy development on federal land, particularly since the passage of EPAct 2005; and (3) factors affecting renewable energy development on federal land. To conduct this work, GAO reviewed laws, regulations, and policies; interviewed agency and industry officials; and surveyed BLM staff responsible for processing applications for renewable energy permits on federal lands.
GAO is not making any recommendations in this report. In commenting on a draft of this report, the Department of Agriculture concurred with its findings, while the Departments of Energy and the Interior had no comments.

What GAO Found

Since passage of the Energy Policy Act of 2005 (EPAct 2005), federal land management agencies--primarily the Department of the Interior's Bureau of Land Management (BLM)--have received hundreds of applications for utilityscale renewable energy projects and authorized 25 projects: 7 wind, 10 solar, and 8 geothermal projects. Applications for the majority of projects were withdrawn by the applicants or denied by BLM because of insufficient information. Applications for about one-fourth of the projects are still pending with the agencies. Time frames for permitting wind and solar projects ranged from 1.5 to 4 years from receipt of the initial application to approval of the project, with time frames decreasing for applications submitted in later years. For geothermal projects, permitting time frames ranged from 1 to 4 years from receipt of the initial application to approval for construction. In all, for projects applied for since EPAct 2005, BLM has authorized projects with the capacity to generate a total of about 5,450 megawatts of electricity, contributing to the act's goal of approving projects capable of generating 10,000 megawatts of electricity on public lands by 2015.
Federal land management agencies have taken several steps to foster renewable energy development on federal lands since EPAct 2005. Specifically, these agencies have developed or revised policies aimed at, among other things, improving the renewable energy permitting process, formalized coordination within and across agencies and with state and local governments, and devoted increased resources to processing applications for renewable energy permits. One of BLM's most comprehensive actions was the completion of programmatic environmental impact statements for renewable energy development, intended to streamline the permitting process. The agencies also took steps to improve coordination through regularly established meetings and development of memorandums of understanding between federal and state agencies. They also added staff and increased funding for this development. For example, BLM tripled its staff devoted to processing wind and solar energy applications. To help ensure that its actions are achieving their intended purposes, BLM issued an instruction memorandum in December 2012 aimed at increasing the efficiency and effectiveness of its renewable energy permitting process.
According to BLM respondents to a GAO questionnaire, industry representatives, and others GAO interviewed, many factors affect the pace of renewable energy development on federal lands. Some of these factors are specifically tied to the agencies' permitting processes, primarily BLM's. For example, respondents cited effective coordination among the involved parties and the amount of resources the agency can devote to permitting as factors that facilitated the permitting process. On the other hand, they often cited problems with the quality of applications received as a factor that may hinder or slow the permitting process. Respondents also cited a number of factors outside of permitting agencies' control that can affect the pace of renewable energy development, such as access to transmission lines (which are often scarce in areas where renewable energy is abundant) and competition from electricity generated using conventional energy sources, such as natural gas.