Empowering Counties Through Renewable Energy Revenue: Insights into BLM IM 2026-003 Benefits

Triston Rice
Jan 15
3 min read

Following provisions in the One Big Beautiful Bill, the Bureau of Land Management recently introduced Instruction Memorandum 2026-003, a policy designed to share 25% of revenue from wind and solar energy leases on public lands each with state and county governments. This change marks a significant step toward supporting local communities while advancing renewable energy development. Understanding how this policy works, its financial impact, and its role in promoting clean energy can help states and counties prepare to benefit from this new opportunity.

What BLM IM 2026-003 Means for States and Counties

The Bureau of Land Management (BLM) manages millions of acres of federal land, some of which is suitable for renewable energy projects like wind and solar farms. Historically, revenue generated from leasing these lands for energy development flowed primarily to the federal government. BLM IM 2026-003 changes this by allowing a portion of the revenue to be shared with the states and counties where the projects are located.

This policy aims to:

Provide direct financial benefits to local governments impacted by renewable energy projects.
Encourage responsible development of wind and solar energy on public lands.
Support community services and infrastructure through new revenue streams.
Promote partnerships between federal agencies and local governments.

By sharing revenue, the policy recognizes the role local communities play in hosting renewable energy infrastructure and helps offset any impacts they may experience.

How Revenue Sharing Works Under the New Policy

Under BLM IM 2026-003, revenue from wind and solar leases includes:

Rental payments from leaseholders during the development and operation phases.
Royalties based on the energy produced and sold.
Bonus bids paid upfront when leases are awarded.

A percentage of these revenues is allocated to the state and county governments where the leased lands are located. The exact share depends on the location and the type of project but generally follows formulas similar to those used for other federal land revenues, such as oil and gas leases.

This revenue can be used by states and counties for:

Maintaining and improving local infrastructure like roads and public facilities.
Funding emergency services and community programs.
Supporting conservation efforts.
Investing in further renewable energy initiatives.

Case Study: Wyoming Wind Energy Revenue

Wyoming hosts some of the largest wind farms on federal lands. Before BLM IM 2026-003, most lease revenues went to the federal treasury. Now, counties such as Carbon and Sweetwater will receive a share of the income, which they can use to:

Repair roads damaged by construction equipment.
Support local schools and emergency services.
Promote economic development initiatives.

This additional funding helps communities manage the growth associated with renewable energy projects without increasing local taxes.

The Importance of Renewable Energy Development on Federal Lands

Federal lands offer vast spaces ideal for large-scale renewable energy projects. Developing wind and solar farms on these lands helps the United States meet its energy goals by:

Increasing renewable energy capacity.
Creating jobs in rural and underserved areas.
Diversifying the national energy portfolio.

BLM IM 2026-003 supports this development by making it financially viable for local governments to welcome and sustain renewable energy projects. When communities see direct benefits, they are more likely to support and participate in clean energy initiatives.

Challenges and Considerations

While the policy offers clear advantages, some challenges remain:

Balancing development and conservation: Ensuring renewable projects do not harm sensitive ecosystems.
Equitable revenue distribution: Making sure funds reach the communities most affected.
Long-term planning: Using revenues to build sustainable local economies beyond the lifespan of energy projects.

States and counties will need to work closely with the BLM and developers to address these issues and maximize the policy’s benefits.