BLM Solar and Battery Storage Rights-of-Way: Reclamation Bonds, Strict Liability and Indemnity

Except for leases under subpart 2809, the bond amount is based on a reclamation cost estimate, which BLM may require the holder to prepare. The estimate covers hazardous materials liabilities, decommissioning and removal of facilities, and interim and final reclamation. It includes BLM's cost to administer a reclamation contract, and BLM may consider salvage value.

BLM "will periodically review your bond for adequacy" and may require a new, larger or smaller bond at any time. If a state also requires a bond for the same land, "the BLM must be listed as an additionally named insured on the bond instrument," the regulation's wording for a surety bond. Release follows verified reclamation, and liability under 2807.12 can continue after release.

A grant holder is "liable to the United States and to third parties for any damage or injury they incur." The holder is strictly liable to the United States, meaning without proof of fault, for damage or injury up to $2 million for any one incident. The regulation adjusts that figure annually for inflation, so confirm the current amount with BLM. The cap does not apply to releases of hazardous substances, liability above the cap follows ordinary negligence rules, and strict liability extends to federal fire-control costs. Owners and affiliates can be jointly and severally liable if claims go unsatisfied.

By accepting the grant, the holder agrees to fully indemnify the United States and hold it harmless for liability, damage and claims. The 2024 and 2025 rules did not amend this section.

For the developer, strict liability means a fire or other incident can create a claim from the United States without negligence, including fire-suppression costs. Whether a general liability policy responds, and whether the indemnity counts as an insured contract, depends on the policy wording and can vary by carrier guidelines and programs. Developers typically weigh excess limits against the per-incident figure and pollution coverage, since hazardous-substance releases are outside the cap.

For EPC and civil contractors, these obligations commonly flow down as indemnity and additional insured requirements; contractors may want to read them against their own contractual liability coverage and pollution exclusions, subject to underwriting and the policies issued.

BLM's renewable energy rule, effective July 1, 2024, cut solar and wind rents and fees, set terms of up to 50 years and added separate storage rights-of-way. Its preamble says fee cuts would "not alter a project proponent's obligations to provide for adequate bonding." A 2025 rule, effective August 1, 2025, set the capacity fee at 3.9 percent of gross proceeds and removed the 2024 reductions. Neither rule amended 2805.20 or 2807.12.

BLM's solar page also says that under Executive Order 14315 and Secretary's Order 3438, solar and wind decisions "will undergo elevated review," a schedule risk for bid security and bond terms rather than a bonding change. A January 2025 notice for Rough Hat Clark Solar in Clark County, Nevada covered 400 MW of solar and 700 MW of storage on about 2,469 acres; neither it nor the Jove Solar notice for La Paz County, Arizona states bond terms.