§3007 Renewable Energy Fees on Federal Land

Summary

The Secretary must collect two yearly fees from anyone holding a right-of-way for a wind or solar project on public land. By January 1 each year the Secretary must charge an acreage rent calculated by this formula: Acreage rent = A × B × (1 + C)^D, where A is the Per-Acre Rate, B is the Encumbrance Factor, C is the Annual Adjustment Factor, and D is the year in the right-of-way term. The holder pays acreage rent until the project begins producing energy. The Secretary must also collect a capacity fee each year equal to the larger of the acreage rent or 3.9 percent of the project’s gross electricity sales. A wind project holder can ask for a 10-percent multiple-use reduction if at least 25 percent of the right-of-way area is used for other activities all year; if approved after fees started, the reduction begins the first year after approval and no refunds are paid for earlier years. The Secretary may charge a late fee if payment is more than 15 days late and may end the right-of-way if payment is not made within 90 days. Key terms are: Annual Adjustment Factor — 3 percent. Encumbrance Factor — 100 percent for solar; for wind the Secretary sets it but not less than 10 percent. National Forest System — lands run by the Secretary of Agriculture (excludes certain forest reserves). Per-Acre Rate — the 5-year state average pasture rent from the NASS Cash Rents Survey before issuance or renewal. Project — the system described in 43 C.F.R. 2801.9(a)(4) as of July 4, 2025. Public land — public lands under 1702 and National Forest System land. Right-of-way and Secretary — have the meanings given in section 1702, with the Secretary meaning Interior for Interior land and Agriculture for National Forest land.