US BLM 43 CFR 2805.20: Solar Bonding Requirements Guide
Updated 6 September 2026 · By SolarNevs Research Desk, Dealer surveys + verified sources · 1 source · Method ↗
Key Takeaways
- Codified under 43 CFR § 2805.20, the BLM requires performance and reclamation bonds for solar energy right-of-way grants.
- Mandates that solar developers post acceptable financial guarantees prior to the issuance of a Notice to Proceed.
- Enforces a statutory minimum bond floor of $10,000 per disturbed acre for solar facilities outside designated leasing areas.
- Requires a minimum $2,000 bond per authorized meteorological tower for short-term energy site testing grants.
- Determines overall bond amounts through a project-specific Reclamation Cost Estimate (RCE) including federal contract administration costs.
Regulatory Purpose of 43 CFR § 2805.20
Under Title 43, Part 2800, Subpart 2805 of the Code of Federal Regulations, § 2805.20 establishes mandatory financial assurance standards for solar and renewable energy projects on federal public lands.
These provisions guarantee that the federal government and taxpayers are fully insulated from the costs of environmental remediation, hazardous material containment, and complete site decommissioning.
BLM Solar Bonding & RCE Determination Matrix
The BLM authorized officer evaluates solar bonding instruments across key regulatory requirements:
Regulatory Parameter | Statutory Text Requirement | Application to Public Land Solar Projects |
|---|---|---|
Bond Mandate | Section 2805.20(a) Performance and reclamation bond or other acceptable instrument | Secures all environmental and decommissioning obligations under the grant |
Hazardous Materials | Section 2805.20(a) Covers liability for releases or discharges | Covers transformer dielectric oils, battery electrolytes, and cleaning solvents |
Officer Approval | Section 2805.20(a)(2) Authorized officer must review and approve all bonds | Validates financial rating of surety company and co-named State bond terms |
RCE Framework | Section 2805.20(a)(3) Amount determined based on preparation of RCE | Quantifies earthwork, revegetation, panel recycling, and steel removal costs |
Administration Overhead | Section 2805.20(a)(3) Must include cost to administer reclamation contract | Adds federal contracting management contingencies to base contractor rates |
Salvage Value Credit | Section 2805.20(a)(3) May also consider other factors such as salvage value | Allows potential offsets for high-grade copper wiring and aluminum racking |
Non-DLA Solar Floor | Section 2805.20(b) No less than $10,000 per acre that will be disturbed | Sets an irreducible statutory baseline for utility-scale solar arrays |
Meteorological Testing | Section 2805.20(d) No less than $2,000 per authorized meteorological tower | Provides streamlined financial assurance for preliminary resource assessment |
Solar Developer Checklist for BLM Bonding Compliance
To secure timely Notice to Proceed approval under Section 2805.20:
- Develop Detailed RCE Worksheets: Itemize civil earthmoving, concrete foundation demolition, and recontouring using standard engineering cost indices.
- Verify Disturbed Acreage Boundaries: Calculate the statutory minimum floor ($10,000 multiplied by disturbed acreage) to ensure the bond meets the baseline.
- Coordinate Joint State-Federal Instruments: If state regulators require reclamation bonds, list the BLM as an additionally named insured under Section 2805.20(a)(1).
Frequently asked questions
What bonding requirement applies to solar ROW grants outside designated leasing areas under 43 CFR § 2805.20(b)?
Under Section 2805.20(b), you must provide a performance and reclamation bond prior to BLM issuing a Notice to Proceed, with the bond amount based on the RCE and no less than $10,000 per acre disturbed (August 2026).
How is the Reclamation Cost Estimate (RCE) determined under Section 2805.20(a)(3)?
The bond amount is determined based on an RCE including the BLM's cost to administer a reclamation contract, and may consider salvage value (August 2026).
What bonding applies to short-term meteorological tower testing grants?
Under Section 2805.20(d), the bond amount must be no less than $2,000 per authorized meteorological tower or instrumentation facility location (August 2026).
What coverage is required if a solar project uses hazardous materials?
If you plan to use hazardous materials, you must provide a bond that covers liability for damages or injuries resulting from releases or discharges (August 2026).
References
- eCFR: Title 43 Part 2800 — Rights-of-Way Under the FLPMA — accessed 31 August 2026
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