H.R. 1043, La Paz County Solar Energy and Job Creation Act

H.R. 1043 would require the Bureau of Land Management (BLM) to convey approximately 3,400 acres of land at fair market value to La Paz County, Arizona, subject to valid existing rights, if the county requests the land.

In January 2025, BLM granted a 30-year right-of-way on that parcel of federal land in La Paz County to an energy developer and approved the construction of a solar energy project. Under the act, that land would be conveyed to the county. Based on information from BLM, CBO expects the county would request to purchase the land specified in the act. That sale and its effect on the approved solar energy project would, on net, increase direct spending.

The costs of the legislation, detailed in Table 1, fall within budget function 300 (natural resources and environment).

Land Conveyance

Based on typical time frames for federal land conveyances, CBO expects that the transfer would take about three years to complete. Proceeds from the land sale would be recorded in the budget as offsetting receipts, that is, as reductions in direct spending. Those receipts would be deposited in the Federal Land Disposal Account where they could be spent without further appropriation to purchase eligible land; thus, CBO estimates that the net effect on direct spending from conveying the land would be negligible because the proceeds would be spent shortly thereafter.

Additionally, La Paz County would be required to pay for all costs associated with the conveyance under H.R. 1043. However, CBO expects that some administrative costs incurred to update maps would not be reimbursed by the county. We estimate those costs would be insignificant; any related spending for such administrative expenses would be subject to the availability of appropriated funds.

Energy Right-of-Way

Using information from BLM, CBO estimates that the energy project will begin producing in 2027 and the right-of-way will generate an average of $4 million in receipts annually beginning in that year. Under current law, Arizona and La Paz County would receive one-quarter of those receipts each; the other half would be recorded in the budget as offsetting receipts (that is, as reductions in direct spending) and would not be available to spend.

Because the land conveyance would be subject to valid existing rights, the solar energy project would continue to move forward; however, La Paz County would receive the receipts from the right-of-way as the owner of the land with the right-of-way. On that basis, CBO estimates that enacting H.R. 1043 would increase net direct spending by $13 million over the 2026-2035 period.

The CBO staff contact for this estimate is Lilia Ledezma. The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.