After two years, the Trump administration has ended a rent breaks for certain wind and solar projects using federal lands, Reuters reported.
Some company officials were reported by the news agency as saying the retroactive bills have come at a time when they are already struggling due to the COVID-19 crisis.
Reuters reported that solar companies have seen major projects canceled or delayed due to the global pandemic, which has hit the industry hard. The move is also seen as contrary to recent government efforts to help companies nationwide from pandemic-driven turmoil and recession, the news agency reported.
Avangrid Inc.'s government bill exceeded $3 million for its project on federal land outside of San Diego, company spokesman Paul Copleman told the news agency.
Reuters reported two other projects that did not want to be named noting they also received retroactive rent bills. The news agency reported that approximately 96 solar, wind and geothermal projects are currently operating on land owned by the Interior Department's Bureau of Land Management.
Solar Association Executive Director Shannon Eddy told the news agency that the bills came as a surprise, but that some companies had likely set funds aside in anticipation of this event.
In 2018, the Interior Department halted charging rent after company complaints were made that the previous administration was charging too much and making them uncompetitive with private property rent however, the news agency reported. The department expected to collect $50 million from the projects this year, which is up from $1.1 million last year and $21.6 million in 2018, the news agency reported.
The Interior Department's Bureau of Land Management also informed oil and gas drillers operating on federal lands that they need to follow certain procedures in order to receive relief from royalty payments during the current oil slump, according to the news agency.
Reuters also reported that several western lawmakers have sided with the companies in their opposition to higher rents in the past.
