[Federal Register Volume 75, Number 204 (Friday, October 22, 2010)]
[Notices]
[Pages 65306-65309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26712]


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DEPARTMENT OF ENERGY


Notice of Intent To Prepare an Environmental Impact Statement for 
a Proposed Federal Loan Guarantee To Support Construction of the Topaz 
Solar Farm, San Luis Obispo County, CA

AGENCY: Loan Guarantee Program, Department of Energy.

ACTION: Notice of intent to prepare an environmental impact statement 
and conduct a public scoping meeting and notice of proposed floodplain 
action.

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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to 
prepare an environmental impact statement (EIS) pursuant to the 
National Environmental Policy Act of 1969, as amended (NEPA), the 
Council on Environmental Quality (CEQ) NEPA regulations, and the DOE 
NEPA implementing procedures, to assess the potential environmental 
impacts of its proposed action of issuing a Federal loan guarantee to 
Topaz Solar Farms, LLC (Topaz) (DOE/EIS-0458). Topaz submitted an 
application to DOE under the Federal loan guarantee program pursuant to 
the Energy Policy Act of 2005 (EPAct 2005) to support construction of 
the Topaz Solar Farm Project located in San Luis Obispo County, 
California (the Project).
    Topaz is a limited liability company that is owned by First Solar, 
Inc. Topaz proposes to develop the Project on approximately 4,000 acres 
of land. As proposed, the approximately 550-megawatt electric 
generation project would include the installation of about nine million 
photovoltaic (PV) solar modules within approximately 437 arrays and 
associated electric equipment. At full capacity, the Project would 
generate enough electricity to power an estimated 160,000 California 
homes annually. Generated electricity would be sold to Pacific Gas and 
Electric (PG&E) under a long-term power purchase agreement. The Project 
would be interconnected into PG&E's existing Morro Bay-Midway 230-
kilovolt (kV) transmission line, which runs in an east-to-west 
direction through the site.
    The EIS will evaluate the potential environmental impacts of the 
issuance of a DOE Loan Guarantee for Topaz's proposed Project and the 
range of reasonable alternatives. The purposes of this Notice of Intent 
are to inform the public about DOE's proposed action; invite public 
participation in the EIS process; announce plans for a public scoping 
meeting; and solicit public comments for consideration in establishing 
the scope and content of

[[Page 65307]]

the EIS. DOE is hereby providing notice of a proposed action in a 
floodplain and that DOE will include a floodplain assessment in the 
EIS. DOE invites those agencies with jurisdiction by law or special 
expertise to be cooperating agencies.

DATES: The public scoping period will begin with publication of this 
Notice of Intent and end on November 22, 2010. To ensure that all of 
the issues related to this proposal are addressed, DOE invites comments 
on the proposed scope and content of the EIS from all interested 
parties. Comments must be postmarked or e-mailed by November 22, 2010 
to ensure consideration. Late comments will be considered to the extent 
practicable.

ADDRESSES: Public comments can be submitted electronically or by U.S. 
Mail. Written comments on the proposed EIS scope should be signed and 
addressed to the NEPA Document Manager for this project: Ms. Angela 
Colamaria, Loan Guarantee Program (LP-10), U.S. Department of Energy, 
1000 Independence Avenue, SW., Washington, DC 20585. Electronic 
submission of comments is encouraged due to processing time required 
for regular mail. Comments can be submitted electronically by sending 
an e-mail to: [email protected]. All electronic and written comments 
should reference DOE/EIS-0458.
    In addition to receiving written comments, DOE will conduct a 
public scoping meeting in the vicinity of the proposed Project at which 
government agencies, private-sector organizations, and the general 
public are invited to provide comments or suggestions with regard to 
the alternatives and potential impacts to be considered in the EIS. The 
date, time, and location of the public scoping meeting will be 
announced in local news media and on the DOE Loan Guarantee Program's 
``NEPA Public Involvement'' Web site (http://lpo.energy.gov/?page_id=1502) and the DOE NEPA Web site ``Public Participation'' Calendar 
(http://nepa.energy.gov/calendar.htm) at least 15 days prior to the 
date of the meeting.

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
this EIS, the public scoping meeting, or to receive a copy of the draft 
EIS when it is issued, contact Angela Colamaria by telephone: 202-287-
5387; toll-free number: 800-832-0885 ext. 75387; or electronic mail: 
[email protected]. For general information on the DOE NEPA 
process, please contact: Ms. Carol M. Borgstrom, Director, Office of 
NEPA Policy and Compliance (GC-54), U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC 20585; telephone: 202-586-
4600; facsimile: 202-586-7031; electronic mail: [email protected]; or 
leave a toll-free message at 800-472-2756.

SUPPLEMENTARY INFORMATION:

Background

    Title XVII of EPAct 2005 established a Federal loan guarantee 
program for eligible energy projects, and was amended by the American 
Recovery and Reinvestment Act of 2009, (the Recovery Act) to create 
Section 1705 of Title XVII (42 U.S.C. 16516), authorizing a new program 
for rapid deployment of renewable energy projects and related 
manufacturing facilities, electric power transmission projects, and 
leading edge biofuels projects. The primary purposes of the Recovery 
Act are job preservation and creation, infrastructure investment, 
energy efficiency and science, assistance to the unemployed, and State 
and local fiscal stabilization. The Section 1705 Program is designed to 
address the current economic conditions of the nation, in part, through 
financing renewable energy, transmission and leading edge biofuels 
projects.
    On March 29, 2010, the Royal Bank of Scotland plc, as Lender-
Applicant, with Topaz as the borrower, submitted the first part (Part 
I) of a two-part application to DOE for a Federal loan guarantee under 
the Solicitation entitled, ``Federal Loan Guarantees for Commercial 
Technology Renewable Energy Generation Projects under the Financial 
Institution Partnership Program'' (Solicitation No. DE-FOA-0000166), 
issued on October 7, 2009. Topaz submitted Part II of its application 
on August 10, 2010.

Purpose and Need for Agency Action

    The purpose and need for action by DOE is to comply with its 
mandate under EPAct 2005 by selecting eligible projects that meet the 
goals of the Act, as summarized above. The EIS will inform DOE's 
decision on whether to issue a loan guarantee to Topaz to support the 
proposed Project.

Proposed Action

    DOE's proposed action is to issue a loan guarantee to Topaz to 
support construction of the Topaz Solar Farm. The Project would be 
located in an unincorporated portion of eastern San Luis Obispo County, 
California, adjacent to Highway 58 and east of Bitterwater Road. Topaz 
has options to purchase approximately 10,000 acres of land in the 
Project area. The Project would be developed on approximately 4,000 to 
4,100 acres of land within one of two overlapping study areas:
    Study Area A, the southernmost study area, includes approximately 
8,000 acres. If the Project is located within Study Area A, the fenced 
area would be approximately 4,100 acres.
    Study Area B, the northernmost study area, includes approximately 
6,300 acres. If the Project is located within Study Area B, the fenced 
area would be approximately 4,000 acres.
    The study areas are larger than what would be needed to develop the 
project in order to allow flexibility in the final project design. The 
proposed Project would consist of: A solar field of ground-mounted PV 
modules that collect solar radiation to produce electricity; an 
electrical collection system that converts generated power from direct 
current (DC) to alternating current (AC) and delivers it to the Project 
substation; the aforementioned Project substation that collects and 
converts the generated power from 34.5 kV to 230 kV for delivery via a 
new PG&E switching station to PG&E's existing Morro Bay-Midway 230-kV 
transmission line; and the aforementioned PG&E switching station that 
interconnects the Project to PG&E's existing transmission line. After 
construction, PG&E would own and operate the switching station.
    The Project's solar field would consist of 437 solar arrays. Each 
solar array would generate 1.3 megawatts alternating current of power 
and would consist of up to 20,000 PV modules and one power conversion 
station. Each power conversion station would consist of two inverters 
in an air-conditioned enclosure and one adjacent transformer. Each 
array would cover approximately seven acres of land.
    Eight to twelve miles of overhead 34.5-kV high-capacity collection 
system lines, with two to four circuits each, would connect the power 
output from each of the solar arrays to the on-site Project substation. 
Wooden poles approximately 43 feet high would support these overhead 
lines.
    The Project substation would collect the output and transform it 
from 34.5 kV to 230 kV. The substation would occupy approximately 4.5 
acres and would be adjacent to the PG&E switching station, where the 
230-kV output of the substation would be connected and delivered to the 
Morro Bay-Midway 230-kV transmission line.
    The new PG&E switching station would be adjacent to the existing 
PG&E Morro Bay-Midway 230-kV transmission line. The Morro Bay-Midway 
230-kV transmission line traverses the Project site just south of

[[Page 65308]]

the PG&E switching station. Two new 100- to 125-foot-high double-
circuit lattice steel transmission towers and four steel poles would be 
installed to accommodate the looping of PG&E's 230-kV line into the 
switching station. The towers and poles would be within or adjacent to 
the existing PG&E transmission line right-of-way as well as located on 
either side of the new PG&E switching station to position the 
transmission conductors for proper ingress and egress to the station. 
Construction of the interconnection between the existing Morro Bay-
Midway 230-kV line and the new PG&E switching station would be 
undertaken by PG&E.
    Topaz has interconnection agreements in place for the first 400 MW 
of Project capacity. The California Independent System Operator has 
determined that network upgrades would be required to accommodate the 
Project's remaining 150 MW, as well as other generation projects in the 
region. Network upgrades could include the reconductoring of the 230-kV 
transmission lines between the new PG&E switching station and the 
Midway Substation.
    As part of the proposed Project, Topaz would construct and operate 
a solar energy learning center within the Project's site boundary. 
Topaz would work with local educators to develop exhibits, tours, and 
educational programs for the center that would complement existing 
science and sustainability curricula. The center would be able to 
accommodate several class field trips per day, as well as 100 to 200 
visitors per month. The center would be a 30-foot-by-30-foot enclosed 
building, compliant with the Americans with Disabilities Act, with 
restrooms, a scale model of the solar facilities, and exhibits on solar 
power.

Alternatives

    In determining the range of reasonable alternatives to be 
considered in the EIS for the proposed Project, DOE identified the 
reasonable alternatives that would satisfy the underlying purpose and 
need for agency action. DOE currently plans to analyze in detail the 
Project proposed by Topaz and the No Action alternative. Topaz's site 
selection criteria for the Project included environmental sensitivity, 
topography, electrical grid system integration, high solar production 
potential, and disturbed land availability. Topaz determined that the 
Project area met these criteria because it has a strong solar resource, 
is adjacent to a transmission line with available capacity, contains 
relatively flat terrain and consists of previously disturbed, available 
land. Within the Project area, Topaz identified two Study Areas (Study 
Area A and Study Area B) that would be suitable for the Project, 
although construction of the Project would take place on only one Study 
Area if the Project is approved. DOE will analyze both Study Areas 
(Study Area A and Study Area B) available to Topaz as options, within 
the scope of the Project and mitigation measures as appropriate.
    Under the No Action alternative, DOE would not provide the loan 
guarantee to Topaz. In this case, Topaz may have greater difficulty 
obtaining financing for the Project, which may result in a delay in the 
start of construction, construction in smaller phases over a longer 
time period, potentially increased project cost, or could possibly 
result in the Project not being built. Although Topaz may still pursue 
the Project without the loan guarantee, as defined above, for purposes 
of this NEPA analysis, it is assumed that the No Action alternative 
would include a no Project or no build scenario.

Notice of Proposed Floodplain Action

    DOE is hereby providing notice of a proposed DOE action in a 
floodplain pursuant to DOE Floodplain and Wetland Environmental Review 
Requirements (10 CFR Part 1022). Overhead electrical lines would need 
to cross 100-year floodplains (unnamed drainages within the Carrizo 
Plain, northwest of Soda Lake). Since some of the floodplains on the 
project site are greater than 200 feet wide and posts are needed every 
200 feet to support overhead lines, the installation of some posts 
within the floodplain is anticipated. DOE will prepare a floodplain 
assessment as required by DOE regulations. The floodplain assessment 
will be included as part of the EIS that DOE is preparing for this 
project. Interested parties may comment during the scoping period 
following the publication of this NOI and will also be able to comment 
on the floodplain assessment when the Draft EIS is published.

Preliminary Identification of Environmental Issues

    DOE has tentatively identified the following environmental resource 
areas for consideration in the EIS. This list is neither intended to be 
all-inclusive nor a predetermined set of potential environmental 
impacts:

Air quality.
Greenhouse gas emissions and climate change.
Energy use and production.
Water resources, including groundwater and surface waters.
Wetlands and floodplains.
Geological resources.
Ecological resources, including species of special concern and 
threatened and endangered species such as the San Joaquin kit fox, 
longhorn fairy shrimp and vernal pool fairy shrimp.
Cultural resources, including historic structures and properties; sites 
of religious and cultural significance to Tribes; and archaeological 
resources.
Land use.
Visual resources and aesthetics.
Transportation and traffic.
Noise and vibration.
Hazardous materials and solid waste management.
Human health and safety.
Accidents and terrorism.
Socioeconomics, including impacts to community services.
Environmental justice.
Cumulative impacts.

    DOE invites comments on whether other resource areas or potential 
issues should be considered in the EIS.

Public Scoping Process

    To ensure that all issues related to DOE's proposed action are 
addressed, DOE seeks public input to define the scope of the EIS. The 
public scoping period will begin with publication of this Notice of 
Intent and end on November 22, 2010. Interested government agencies, 
private-sector organizations, and the general public are encouraged to 
submit comments concerning the content of the EIS, issues and impacts 
that should be addressed, and alternatives that should be considered. 
Scoping comments should clearly describe specific issues or topics that 
the EIS should address to assist DOE in identifying significant issues 
for analysis. Comments must be postmarked or e-mailed by November 22, 
2010 to ensure consideration. (See ADDRESSES above). Late comments will 
be considered to the extent practicable. DOE invites those agencies 
with jurisdiction by law or special expertise to be cooperating 
agencies in the preparation of this EIS.
    A public scoping meeting will be held during the scoping period, at 
a date, time, and location to be determined. Notice of this meeting 
will be provided in local news media and on the DOE Loan Guarantee 
Program's ``NEPA Public Involvement'' Web site (http://loanprograms.energy.gov/?page_id=337) and the DOE's NEPA Web site 
``Public Participation'' Calendar (http://nepa.energy.gov/calendar.htm) 
at least 15 days prior to the date of the meeting. Members of the 
public and representatives of groups and Federal, State, local, and 
Tribal agencies are

[[Page 65309]]

invited to attend. The meeting will include both a formal opportunity 
to present oral comments and an informal session during which DOE and 
Topaz personnel will be available for discussions with attendees. 
Displays and other forms of information about the proposed agency 
action, the EIS process, and Topaz's proposed Project will also be 
available for review. DOE requests that anyone who wishes to present 
oral comments at the meeting contact Ms. Colamaria by phone or e-mail 
(see ADDRESSES above). Individuals who do not make advance arrangements 
to speak may register at the meeting. Speakers who need more than five 
minutes should indicate the length of time desired in their request. 
DOE may need to limit speakers to five minutes initially, but will 
provide additional opportunities as time permits. Written comments 
regarding the scoping process can also be submitted to DOE officials at 
the scoping meeting.
    The DOE will use and coordinate the NEPA commenting process to 
satisfy the public involvement process for Section 106 of the National 
Historic Preservation Act (16 U.S.C. 470f) as provided for in 36 CFR 
800.2(d)(3). Because the Topaz project site is expected to impact 
waters subject to the jurisdiction of the U.S. Army Corps of Engineers, 
the project will require a Section 404 Permit. In addition, because the 
proposed Topaz project may affect listed species under the Endangered 
Species Act (ESA), DOE will also initiate consultation regarding the 
project with the U.S. Department of the Interior's Fish and Wildlife 
Service under Section 7 of the ESA. DOE will also invite Federally-
recognized American Indian Tribes that have historic interests in the 
area to government-to-government consultation regarding the project. 
Government-to-government consultation will be offered to Indian Tribes, 
and Tribal concerns, including impacts on Indian trust assets, will be 
given appropriate consideration. Federal, State, and local 
governments--along with other stakeholders who may be interested or 
affected by the DOE's decision on this Project--are invited to 
participate in the scoping process and, if eligible, may request or be 
requested by the DOE to participate as a cooperating agency.

    Issued in Washington, DC, on October 18, 2010.
Jonathan M. Silver,
Executive Director, Loan Programs Office.
[FR Doc. 2010-26712 Filed 10-21-10; 8:45 am]
BILLING CODE 6450-01-P