U.S. Interior Department Proposes Repeal of Renewable Energy Rule to Support Broader Resource Use

The U.S. Interior Department on May 14 announced the proposed rescission of a rule governing wind and solar energy development on public lands. This is in accordance with U.S. President Donald Trump’s agenda to eliminate burdensome regulations and stimulate economic growth. The proposed removal of the Bureau of Land Management’s clean energy regulation allows for enhanced land use and energy independence.

The rule, issued last May, updated the bureau’s procedures for renewable energy and right-of-way programs, focusing on two key areas: reducing rental rates and capacity fees for solar and wind energy projects under the Energy Act of 2020, and expanding the agency’s discretion to process solar and wind right-of-way applications within designated leasing areas. The removal of preferential treatment for intermittent energy projects, along with the easing of restrictions on traditional energy sources such as gas, oil, and critical minerals, is intended to support broader development of U.S. natural resources.

The policy change would remove rate incentives that previously favored renewable energy over other energy sources, while still permitting renewables to contribute to the Trump administration’s goal of achieving energy dominance. The move is expected to promote greater innovation to improve energy and critical minerals identification, permitting, leasing, development, production, transportation, refining, distribution, exporting, and generation capability.

The action is consistent with President Donald Trump’s recent executive order titled “Unleashing American Energy,” which seeks to promote the development of domestic energy resources. The order calls for a review of agency actions that potentially burden the development of domestic energy resources, particularly oil, natural gas, coal, hydropower, biofuels, critical mineral, and nuclear energy resources.

The rule rescission will be reviewed by the Office of Information and Regulatory Affairs, thereafter it will be published in the Federal Register for public comment.