California is at the vanguard of both distributed solar and large-scale solar development. Right now, our state has the opportunity to cement this global leadership position in solar energy deployment and sustainable development while attracting new long-term investments, creating jobs and advancing energy price stability.

The answer lies in reducing the uncertainty plaguing solar energy projects. The creation of solar energy zones on public lands, which are managed by the U.S. Bureau of Land Management, would be a major step forward in helping create an enduring and stable investment environment.

In November, the federal Department of Energy and BLM presented for public comments their revised plan for energy zones in the Supplement to the Programmatic Environmental Impact Statement for Solar Development in Six Southwestern States, or PEIS. Although there are many details to be worked out, we strongly support the approach taken in the PEIS and believe that the certainty it creates will increase investment in the solar sector.

The simple idea behind the zones approach is that by carefully locating where large-scale solar power and related transmission will be developed, everybody wins – households, schools, governments, utilities and other businesses that want solar energy brought online quickly and at the lowest possible cost; environmentalists who seek to combat climate change and pollution while protecting wild places and species; and energy companies and investors like my own firm, who want to build and finance the solar revolution but are reluctant to do so if the rules might change at any time.

A zones approach identifies and pre-screens appropriate land and uses incentives to channel the bulk of development to areas that have a winning combination of quality solar energy resources, appropriate terrain, proximity to infrastructure and low potential for conflict with wildlife, other natural resources or cultural values.

As solar investors, we believe the biggest advantage of the zones approach is reducing uncertainty in permitting.

Time is money. Solar companies have to pay for using their investors' money, which can be expensive, and are also subject to penalties under their contracts with customers – called power purchase agreements – if they don't start delivering energy on time. And at some point, delay will kill any project: The perception of systemic delay will deter many investors and make the remaining players charge a risk premium, some of which will inevitably be passed on to consumers.

Under a zones approach, the federal government conducts a preliminary environmental impact assessment to ensure that as a general matter, the area in the zone is suitable for development. Each project in a zone will have to undergo site-specific review, which, over time, should be much less time-consuming and expensive than a full-fledged environmental impact statement because it will effectively stand on the shoulders of the entire PEIS process. Under the revised proposal, a project located in a zone can benefit from accelerated permitting and may potentially be eligible for other financial incentives. This has the potential to greatly reduce risk in the investment.

The zones plan should not be too rigid, however.

First, it must accommodate the pipeline of projects that currently exists, which has been developed in the absence of zones. This pipeline represents a considerable investment, and the projects that are economically, culturally and environmentally sound should be built.

Second, the zones approach has to have a variance procedure for projects outside the zones that nevertheless clear environmental, economic and cultural hurdles and have a compelling "plus factor," such as transmission availability.

Third, there must be a procedure to add new zones, as the PEIS presented only a discrete number of zones.

Last, areas needed to protect sensitive resources should be permanently excluded from new zones or variances, while other areas are made available to allow the solar industry to grow in the most environmentally responsible way.

The revised plan contains all of these elements, and we encourage the agencies to consider comments that flesh out these elements while upholding and advancing the overall zones concept.

California has the solar resource, technological know-how, committed capita and history of leadership and innovation in solar. If properly implemented along the lines of the PEIS, energy zones will unlock a wave of investment in whose benefits all Californians will share.

© Copyright The Sacramento Bee. All rights reserved.

Nancy Pfund is founder and managing partner at DBL Investors, a venture capital firm based in San Francisco.

• Read more articles by Nancy Pfund