§ 3007. Renewable energy fees on Federal land

§ 3007. Renewable energy fees on Federal land

(a) Definitions In this section:

(1) Annual Adjustment Factor The term “Annual Adjustment Factor” means 3 percent.

(2) Encumbrance Factor The term “Encumbrance Factor” means—

(A) 100 percent for a solar energy generation facility; and

(B) an amount determined by the Secretary, but not less than 10 percent for a wind energy generation facility.

(3) National Forest System

(A) In general The term “National Forest System” means land of the National Forest System (as defined in section 1609(a) of title 16) administered by the Secretary of Agriculture.

(B) Exclusion The term “National Forest System” does not include any forest reserve not created from the public domain.

(4) Per-Acre Rate The term “Per-Acre Rate”, with respect to a right-of-way, means the average of the per-acre pastureland rental rates published in the Cash Rents Survey by the National Agricultural Statistics Service for the State in which the right-of-way is located over the 5 calendar-year period preceding the issuance or renewal of the right-of-way.

(5) Project The term “project” means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as in effect on July 4, 2025).

(6) Public land The term “public land” means—

(A) public lands (as defined in section 1702 of this title); and

(B) National Forest System land.

(7) Renewable energy project The term “renewable energy project” means a project located on public land that uses wind or solar energy to generate energy.

(8) Right-of-way The term “right-of-way” has the meaning given the term in section 1702 of this title.

(9) Secretary The term “Secretary” means—

(A) the Secretary of the Interior, with respect to land controlled or administered by the Secretary of the Interior; and

(B) the Secretary of Agriculture, with respect to National Forest System land.

(b) Acreage rent for wind and solar rights-of-way

(1) In general Pursuant to section 1764(g) of this title, the Secretary shall, subject to paragraph (3) and not later than January 1 of each calendar year, collect from the holder of a right-of-way for a renewable energy project an acreage rent in an amount determined by the equation described in paragraph (2).

(2) Calculation of acreage rent rate

(A) Equation The amount of an acreage rent collected under paragraph (1) shall be determined using the following equation: Acreage rent = A × B × ((1 + C)^D)).

(B) Definitions For purposes of the equation described in subparagraph (A):

(i) The letter “A” means the Per-Acre Rate.

(ii) The letter “B” means the Encumbrance Factor.

(iii) The letter “C” means the Annual Adjustment Factor.

(iv) The letter “D” means the year in the term of the right-of-way.

(3) Payment until production The holder of a right-of-way for a renewable energy project shall pay an acreage rent collected under paragraph (1) until the date on which energy generation begins.

(c) Capacity fees

(1) In general The Secretary shall, subject to paragraph (3), annually collect a capacity fee from the holder of a right-of-way for a renewable energy project based on the amount described in paragraph (2).

(2) Calculation of capacity fee The amount of a capacity fee collected under paragraph (1) shall be equal to the greater of—

(A) an amount equal to the acreage rent described in subsection (b); and

(B) 3.9 percent of the gross proceeds from the sale of electricity produced by the renewable energy project.

(3) Multiple-use reduction factor

(A) Application The holder of a right-of-way for a wind energy generation project may request that the Secretary apply a multiple-use reduction factor of 10-percent to the amount of a capacity fee determined under paragraph (2) by submitting to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

(B) Approval The Secretary may approve an application submitted under subparagraph (A) only if not less than 25 percent of the land within the area of the right-of-way is authorized for use, occupancy, or development with respect to an activity other than the generation of wind energy for the entirety of the year in which the capacity fee is collected.

(C) Late determination

(i) In general If the Secretary approves an application under subparagraph (B) for a wind energy generation project after the date on which the holder of the right-of-way for the project begins paying a capacity fee, the Secretary shall apply the multiple-use reduction factor described in subparagraph (A) to the capacity fee for the first year beginning after the date of approval and each year thereafter for the period during which the right-of-way remains in effect.

(ii) Refund The Secretary may not refund the holder of a right-of-way for the difference in the amount of a capacity fee paid in a previous year.

(d) Late payment fee; termination

(1) In general The Secretary may charge the holder of a right-of-way for a renewable energy project a late payment fee if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 15 days after the date on which the payment was due.

(2) Termination of right-of-way The Secretary may terminate a right-of-way for a renewable energy project if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 90 days after the date on which the payment was due.

(Pub. L. 119–21, title V, § 50302, July 4, 2025, 139 Stat. 148.)

Editorial Notes

Codification

Section was enacted as part of Pub. L. 119–21, and not as part of subtitle B of title III of div. Z of Pub. L. 116–260 which comprises this chapter.