Maria Krug POLS 30595 Essay 2: Development Advisory Team Case Analysis November 13, 2013

Bureau of Land Management Solar Energy Program: Model for Chilean Energy Policy Introduction The current energy crisis in Chile has led to increasing initiatives from the government to develop renewable energy projects. Up until this point, renewable energy has been seen as the answer to increasing sustainability and little emphasis has been placed on the adverse effects that these projects may have on the environment. As renewable energy development increases, there is a clear need for governmental actions and regulations that will mitigate any harmful effects. One model for policy change and implementation is the Bureau of Land Management (BLM) in the United States, whose Western Solar Plan designated certain areas in the Southwest as Solar Energy Zones (SEZs) best suited for utility scale solar energy projects with minimal effects to the surrounding environment. The Western Solar Plan also streamlined the application and environmental assessment process for companies developing on this land. This policy has the potential to serve as a model for Chile moving forward with renewable energy while mitigating effects on the environment. BLM Application Process Overview After designating certain areas as having high potential for renewable energy projects, the BLM standardized the application process for companies to obtain approval for use of these lands. This application process consists of pre application screening, Right of Way approval, Plan of Development approval, and Environmental Assessments. Before any application is submitted, a company interested in developing on BLM land must first participate in two meetings with the BLM and the primary stakeholders in the project;

typically other federal agencies, tribal governments, state and local governments, and local communities. These early meetings serve to identify site specific constraints, ensure that appropriate technology has been selected, and consider alternative sites. These meetings are meant to occur before significant work has been done on the project design so that the company would be open to changes in the proposal to decrease negative environmental effects.1 In addition, early meetings promote cooperation between all parties involved throughout the entire proposal. Next, submission of the Right of Way grant shows the BLM that the company has the financial and technical capacity to construct and operate the facilities. It details the organizations experience with utility scale projects, as well as demonstrates the ability to carry out all environmental studies required. Each Right of Way application requires subsequent submission of a Plan of Development which includes the proposed technology, location, and infrastructure required, including detailed design proposals and results of geotechnical and environmental studies. The Plan of Development provides enough information to begin the environmental assessment of the project in accordance with the National Environmental Policy Act (NEPA). In its Programmatic Environmental Impact Statement (PEIS) which designated the Solar Energy Zones, the BLM already conducted thorough NEPA environmental assessments of each zone. Consequently, site-specific environmental assessments can reference the broader study already completed and only need to focus on environmental issues caused by specific project details. This eliminates the need for redundant studies and decreases the time for approval since

Solar and Wind Energy Applications- Pre-Application and Screening, IM 2011-061. Bureau of Land Management, 2011. www.blm.gov. November 12, 2013.

it does not require an entirely new and separate Environmental Assessment.2 The submission of the amended Environmental Assessment will lead to Finding of No New Significant Impact approval as long as any effects caused by the proposed project may be reduced through mitigation.3 After approval, the project then receives a Notice to Proceed, which is issued for each phase of construction. No work can begin before the Notice to Proceed.4 To encourage companies to develop utility scale projects, the Bureau of Land Management offers both logistical and financial incentives. First, the streamlined application process guarantees faster and easier permitting for projects while still ensuring thorough environmental analysis. In addition, by working with the BLM, companies will have access to already completed mitigation plans specific to that SEZ, which further promotes sustainable development. Finally, companies receive economic benefits because the initial work done by the BLM on environmental analysis means the company does not have to pay to conduct the studies. The BLM also has a ten year phase in period for rental payments and charges a fixed rental payment for the duration of the lease, which decreases overall costs. Uncertainty is minimized for the company, as the BLM may provide a 30-year lease.5 Implications for Chile As recently as last month, the president of Chile signed into effect a law which reduces the time required for permitting renewable energy projects from 700 days to 150 days.6 That 75% decrease in time will undoubtedly lead to the completion of renewable energy projects that
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NEPA Review Process. Bureau of Land Management, 2013. www.blmsolar.anl.gov. November 12, 2013. BLM National Environmental Policy Act Handbook. Bureau of Land Management, 2008. www.blm.gov. November 12, 2013. 4 Notice to Proceed. Bureau of Land Management, 2013. www.blmsolar.anl.gov. November 12, 2013. 5 Incentives for Projects in Solar Energy Zones. Bureau of Land Management, 2013. www.blmsolar.anl.gov. November 12, 2013 6 Muirhead, Jenny. Energy law boost for Chilean CSP. CSP Today, 2013. www.social.csptoday.com. November 12, 2013.

were previously waiting for permits and will encourage new companies to begin a process which they may have previously thought futile. However, the new permitting process should include some ideas implemented in the BLM process; namely the promotion of cross-agency and crosscultural cooperation. By requiring pre-application meetings, the BLM encourages cooperation between the company, government, local communities, and indigenous tribes. For Chile, effective collaboration with local communities is of utmost importance as renewable energy projects have been subject to negative feedback from the public. In addition, the BLMs initiatives to involve Native American tribes in the process, beginning with the initial development of the PEIS and continuing through project specific applications,7 can encourage the Chilean government to work with the indigenous tribes in the regions of greatest potential for renewable energy. Additionally, any permitting policy implemented in Chile should include environmental assessments and plans for mitigation. The Bureau of Land Management model provides a way of streamlining this process by having already completed in depth environmental analyses before a company submits a proposal for a site. This ensures that any development project would be subject to an ongoing environmental review process throughout the design of the project. Currently, environmental assessment of projects in Chile is conducted after a company has already received the rights to the land and approval for the design of the facilities. By the time an assessment is completed, it is too late for any alternatives to be discussed or the design to be changed to mitigate adverse effects. The BLM strategy addresses this by making it easy for a narrower assessment to be added to an already completed thorough assessment of the site. In

Native American Consultation, IM 2012-032. Bureau of Land Management, 2011. www.solareris.anl.gov. November 12, 2013.

addition, early meetings and the BLMs decision to approve each stage of the project ensures that changes may be made before it is too late. Conclusion The Bureau of Land Managements Solar Energy Program is an example of a policy that can be adopted by the government to simultaneously promote renewable energy projects and mitigate environmental effects and has great potential to influence Chiles policy changes moving forward. While more research should be done to determine the most effective way of executing a similar initiative in Chile, the BLM Western Solar Program provides overall guidance of important concepts to include.