§3007 Renewable energy fees on Federal land

Summary

People or companies with a right to use Federal land for wind or solar must pay two yearly fees: an acreage rent and a capacity fee. The acreage rent is set by a formula: Acreage rent = A × B × (1 + C)^D, where A is the Per-Acre Rate (the State’s average pasture rent over the prior 5 years), B is the Encumbrance Factor (100% for solar; for wind it is set by the Secretary but never less than 10%), C is the Annual Adjustment Factor (3 percent), and D is the year number in the right‑of‑way term. The Secretary (Interior for Interior land; Agriculture for National Forest land) must collect the acreage rent by January 1 each year, and the holder pays it until the project starts generating energy. Each year the Secretary must also collect a capacity fee equal to whichever is larger: the acreage rent, or 3.9 percent of the project’s gross electricity sales. Wind projects can ask for a 10 percent reduction if at least 25 percent of the right‑of‑way area is used for something other than wind power all year; the Secretary may approve under that rule and will apply the reduction starting the year after approval, but will not refund past payments. If a payment is not received within 15 days after it was due, a late fee may be charged. If payment is not received within 90 days after it was due, the right‑of‑way may be ended.