Panel approves update to energy leasing law and adds 35-acre limit for solar on state land

House Bill 24, read into the record by committee staff, would update the state’s process for leasing state property for energy-related purposes and clarify several statutory provisions.

Deputy Secretary Dustin Davidson described the bill as a modernization of leasing on state land that "allows a process for the State Mineral and Energy Board to identify lease blocks and have folks come up and do a competitive bidding process" so multiple activities can compete for the same area. He said the bill also updates fees "to accurately reflect the cost of doing business today" and includes language to treat some revenue held in bankruptcy as tax revenue so the state can recover it sooner.

Committee members asked about specific statutory edits. Members sought clarification on language inserting the word "mineral" ahead of "lease" on page three; department counsel explained the change is intended to make clear that the existing 5,000-acre prohibition applies only to mineral leases and does not expand other existing restrictions for renewables or other uses.

A representative offered an amendment to limit solar energy leases on state land to 35 acres, saying one acre can power roughly 400 homes and that 35 acres would be sufficient to support a small community or camps without opening the door to very large commercial solar projects on state property. Committee members discussed floating solar and potential commercial exceptions and agreed to refine language outside the committee if needed. The amendment limiting solar leases to 35 acres was adopted with no recorded opposition.

After discussion and adoption of amendments, the committee reported House Bill 24 favorably as amended. The bill will proceed for further legislative action.