[Federal Register Volume 76, Number 74 (Monday, April 18, 2011)]
[Notices]
[Pages 21716-21718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9272]


=======================================================================
-----------------------------------------------------------------------

 DEPARTMENT OF ENERGY


Record of Decision for Issuance of Loan Guarantees to Solar 
Partners I, LLC; Solar Partners II, LLC; and Solar Partners VIII, LLC 
(Solar Partners) for Ivanpah Solar Electric Generating System Units 1, 
2, and 3

AGENCY: Loan Programs Office (LP), U.S. Department of Energy (DOE).

ACTION: Record of Decision (ROD).

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Energy (DOE) announces its decision to 
issue loan guarantees under Title XVII of the Energy Policy Act of 2005 
(EPAct 05) to Solar Partners I, LLC; Solar Partners II, LLC; and Solar 
Partners VIII, LLC (Solar Partners) for construction and start-up of 
Units 1, 2, and 3 of the 370 megawatt (MW) Ivanpah Solar Electric 
Generating System (ISEGS) on 3,471.36 acres, all of which are managed 
by the U.S. Department of the Interior, Bureau of Land Management 
(BLM), in San Bernardino County, California. The environmental impacts 
of the construction and operation of this project were analyzed in the 
Proposed California Desert Conservation Area Plan Amendment and Final 
Environmental Impact Statement for the Ivanpah Solar Electric 
Generating System, San Bernardino County, California (75 FR 47592; 08/
06/10) (Final EIS), prepared by the BLM Needles Field Office with DOE 
as a cooperating agency. DOE was consulted during the preparation of 
the EIS and provided comments, which BLM incorporated. DOE determined 
that the project analyzed in the Final EIS was substantially the same 
as the project that would be covered by the DOE loan guarantees, and a 
notice of DOE's adoption of the Final EIS as DOE/EIS-0416 was published 
by the U.S. Environmental Protection Agency (EPA) in the Federal 
Register on October 22, 2010 (75 FR 65320).

ADDRESSES: Copies of this ROD and the Final EIS may be obtained by 
calling Sharon Thomas, NEPA Document Manager, Environmental Compliance 
Division, Loan Programs Office (LP-10), U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC, 20585; telephone 202-586-
5335; or e-mail [email protected], or by accessing these 
documents on the DOE NEPA Web site at http://www.nepa.energy.gov and at 
the Loan Programs Web site at http://www.loanprograms.energy.gov.

FOR FURTHER INFORMATION CONTACT: Sharon Thomas, NEPA Document Manager, 
Environmental Compliance Division, Loan Programs Office (LP-10), U.S. 
Department of Energy, 1000 Independence Avenue, SW., Washington, DC, 
20585; telephone, 202-586-5335; or e-mail [email protected]. 
For general information about the DOE National Environmental Policy Act 
(NEPA) process contact Carol 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; leave a 
message at 800-472-2756; or e-mail [email protected]. Information 
about DOE NEPA activities

[[Page 21717]]

and access to DOE NEPA documents are available through the DOE NEPA Web 
site at http://www.nepa.energy.gov.

SUPPLEMENTARY INFORMATION:

Background

    The ISEGS Project will be on 3,471.36 acres in the eastern part of 
San Bernardino County, California, approximately 40 miles southwest of 
Las Vegas, Nevada. The applicant plans to develop three power plants in 
separate and sequential phases to generate 370 MW of electricity. 
Ivanpah 1 will generate 120 MW, and Ivanpah 2 and 3 will each generate 
125 MW. Each plant will be comprised of fields of heliostats (elevated 
mirrors guided by a tracking system) focusing solar energy on boilers 
located on centralized power towers. Each heliostat in the field will 
track the sun throughout the day and reflect the solar energy to a 
power tower boiler. In each of the three plants, one steam turbine will 
receive live steam from the power tower boiler for the generation of 
electricity.
    On August 29, 2007, BLM received applications from subsidiaries of 
BrightSource Energy, Inc. (Solar Partners) pursuant to Title V of the 
Federal Land Policy and Management Act (FLPMA) (43 U.S.C. 1761) for 
right-of-way (ROW) grants to construct, operate, maintain, and 
decommission the ISEGS project on public land in San Bernardino County, 
California. BLM's California Desert Conservation Area (CDCA) Plan 
(1980, as amended), while recognizing the potential compatibility of 
solar power generation facilities on public lands, requires that all 
sites associated with power generation or transmission not identified 
in that plan be considered through the plan amendment process. 
BrightSource Energy, Inc. applied to DOE for loan guarantees under 
Title XVII of EPAct 05, in November 2008 for ISEGS Phase 1 and in 
February 2009 for ISEGS Phases 2 and 3.

NEPA Review

    BLM was the lead agency in the preparation of the Final EIS. 
Pursuant to a February 2009, Memorandum of Understanding between BLM 
and DOE, DOE participated as a cooperating agency with BLM in 
preparation of this EIS in order to consider the potential 
environmental impacts of DOE's proposed loan guarantees for 
construction and start-up of Units 1, 2, and 3 of the ISEGS project.
    EPA published a Notice of Availability of the Draft EIS on November 
13, 2009 (74 FR 58625), and BLM published a Notice of Availability of 
the Draft CDCA Plan Amendment in the Federal Register on November 10, 
2009 (74 FR 58043). The Draft EIS was available for a 90-day public 
comment period which closed on February 11, 2010. After issuance of the 
Draft EIS for public review, BLM continued to coordinate and consult 
regarding possible refinements to avoid sensitive resources, including 
wildlife and plant species, on the ISEGS project site. As a result, two 
additional project alternatives that could avoid or reduce impacts were 
developed by the applicant and were analyzed by BLM in a Supplemental 
Draft EIS. These alternatives included the Mitigated Ivanpah 3 
Alternative and the Modified I-15 Alternative. These alternatives 
included modification of the project boundaries in order to avoid 
sensitive resources, a reduction in overall project acreage from 4,073 
acres to approximately 3,471 acres, a reduction in the number of 
heliostats, and a resulting reduction in the power output from 400 MW 
in the proposed project to 370 MW in each of the additional 
alternatives. EPA published a Notice of Availability of the 
Supplemental Draft EIS in the Federal Register on April 16, 2010 (75 FR 
19992). The public comment period on the Supplemental Draft EIS closed 
on June 1, 2010. Comments received on the Draft EIS and the 
Supplemental Draft EIS were addressed in the Final EIS announced by EPA 
in the Federal Register on August 6, 2010 (75 FR 47591). Comments 
received on the Final EIS were addressed in Appendix 1 of the Record of 
Decision for the Ivanpah Solar Electric Generating System Project and 
Associated Amendment to the California Desert Conservation Area Plan 
(BLM ROD), which is available at http://www.blm.gov or by calling the 
BLM Needles Field Office at 760-326-7000.
    On February 22, 2010, DOE announced its decision to offer 
conditional commitments to Solar Partners to provide up to $1.37 
billion in loan guarantees to support the financing of the ISEGS 
project. The conditional commitments each contained a condition 
precedent which required completion of the NEPA process before the loan 
guarantees could be closed. Notice of DOE's adoption of the Final EIS 
was published by EPA in the Federal Register on October 22, 2010 (75 FR 
65320).

Alternatives Considered

    BLM considered four alternatives, including the project as 
identified in the Final EIS as the Proposed Action (the project as 
proposed by Solar Partners), the Mitigated Ivanpah 3 Alternative 
(selected by BLM in their ROD and identified in the Final EIS as the 
preferred alternative), the Modified I-15 Alternative, and the No 
Action Alternative. These alternatives were described in detail and 
fully analyzed in the Final EIS. The BLM decision to select the 
Mitigated Ivanpah 3 Alternative includes mitigation measures identified 
in the Final EIS chapter 4, Affected Environment and Environmental 
Consequences. These include measures specified in Terms and Conditions 
in the Biological Opinion (see BLM ROD Appendix 2, U.S. Fish and 
Wildlife Service Biological Opinion), and Terms and Conditions set out 
in the Programmatic Agreement between BLM, the Southern California 
Edison Company, the California State Historic Preservation Officer, and 
the Nevada State Historic Preservation Officer (see Appendix 3, 
Programmatic Agreement, in BLM ROD).
    The complete language of these measures, terms, and conditions is 
provided in the Plan of Development for the ISEGS project and is 
contained in Appendix 4 of BLM's Compliance Monitoring Plan set out in 
the BLM ROD. BLM has incorporated these requirements as terms and 
conditions into the ROW grants. DOE's decision is whether or not to 
issue loan guarantees to Solar Partners for up to $1.37 billion to 
support construction and start-up of the ISEGS project. Accordingly, 
DOE's alternatives are (1) to issue loan guarantees to Solar Partners 
for the Mitigated Ivanpah 3 Project alternative selected in the BLM 
ROD, and (2) No Action Alternative, i.e., no loan guarantees.

Consultation

    BLM is the lead Federal agency for compliance of the ISEGS project 
with Section 106 of the National Historic Preservation Act, Section 7 
of the Endangered Species Act, and the Bald and Golden Eagle Protection 
Act, and for Tribal consultation. The mitigation measures included in 
the BLM decision resulted from these consultations and are addressed in 
the Final EIS and BLM ROD. In addition, BLM has consulted with the U.S. 
Army Corps of Engineers who provided a written jurisdictional decision 
that the ISEGS project is unlikely to impact waters of the U.S.; and 
consulted and received required approvals from the Federal Aviation 
Administration regarding aviation impacts; the National Park Service 
regarding impacts on national parks; and the State of California and 
San Bernardino County regarding compliance with State and local laws.

[[Page 21718]]

Decision

    On October 7, 2010, BLM issued its ROD and approved the Proposed 
Plan Amendment to the CDCA Plan to allow for solar energy right-of-way 
grants to Solar Partners for the ISGES project to be constructed on 
BLM-managed land. The Secretary of the Interior also issued Secretarial 
Approval of these decisions on this date.
    DOE has decided to select alternative (1) identified above: To 
issue loan guarantees for construction and start-up of the Mitigated 
Ivanpah 3 Project, which BLM selected in its ROD. The Mitigated Ivanpah 
3 Project would be the development of three solar concentrating thermal 
power plants. Under alternative (2), the No Action Alternative, DOE 
would not issue loan guarantees for the project, and it is unlikely 
that Solar Partners would implement the project as currently planned. 
While the direct and indirect environmental impacts of the ISEGS would 
be avoided under the No Action Alternative, the benefits of reduced 
greenhouse gas (GHG) emissions and the opportunity to make use of new 
technology to reduce GHG emissions and air pollutants would be lost.
    Approval of the loan guarantees for the ISEGS project responds to 
DOE's purpose and need pursuant to Title XVII of EPAct 05 (42 U.S.C. 
16511-16514) for eligible projects under Section 1703 of Title XVII, 
which authorizes the Secretary of Energy to make loan guarantees for 
projects that (1) avoid, reduce, or sequester air pollutants or 
anthropogenic emissions of greenhouse gases and (2) employ new or 
significantly improved technologies as compared to commercial 
technologies in service in the United States at the time the guarantee 
is issued. Issuance of loan guarantees for projects under Section 1703 
of Title XVII of EPAct 05 facilitates the acceleration of the 
commercialization of innovative, environmentally-friendly technologies 
that will have an impact on ensuring clean, affordable, and reliable 
supplies of energy. The purpose and need for DOE's loan guarantee 
action is to comply with DOE's mandate under Title XVII of EPAct 2005 
by selecting eligible projects that meet the goals of the Act.
    In addition, approval of the loan guarantees for the ISEGS project 
also responds to DOE's purpose and need pursuant to Title XVII of the 
Energy Policy Act of 2005, which authorizes the Secretary to make loan 
guarantees for eligible projects under Section 1705 of Title XVII 
(implemented pursuant to Section 406 of the American Recovery and 
Reinvestment Act of 2009). Eligible projects include 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. Issuances of 
loan guarantees for eligible projects under Section 1705 are designed 
to address the current economic conditions of the nation, in part, 
through renewable energy, transmission, and leading edge biofuels 
projects. Eligible projects must commence construction by September 30, 
2011.

Mitigation

    The ISEGS project that will be supported by issuance of the DOE 
loan guarantees includes all mitigation conditions applied by BLM in 
its ROW grants for this project. BLM is the Federal lead agency for the 
ISEGS project under NEPA and is responsible for ensuring compliance 
with all adopted mitigation measures for the ISEGS project set out in 
the Final EIS. The complete language of all the measures is provided in 
the BLM ROD and in Appendix 4, Compliance Monitoring Plan. BLM has also 
incorporated these mitigation measures into the ROW grants as terms and 
conditions.
    DOE's loan guarantee agreements require the applicant to comply 
with all applicable laws and the terms of the ROW grants, including 
mitigation measures contained therein. An applicant's failure to comply 
with applicable laws and the ROW grants would constitute a default. 
Upon the continuance of a default, DOE would have the right under the 
loan guarantee agreement between it and the applicant to exercise usual 
and customary remedies. To ensure that the applicant so performs, the 
DOE Loan Programs Office proactively monitors all operative loan 
guarantee transactions.

Environmentally Preferred Alternative

    Following analysis and comparison of the alternatives in the 
Supplemental Draft and Final EISs, the 370 MW Mitigated Ivanpah 3 
Alternative was identified by BLM as the Environmentally Preferred 
Alternative and is the Selected Alternative identified in the BLM ROD.
    DOE has decided that its alternative (1), to issue loan guarantees 
for construction and start-up of the Mitigated Ivanpah 3 Project, is 
environmentally preferable. DOE has determined that this alternative 
offers substantial environmental benefits due to reductions in GHG 
emissions and that all practicable means to avoid or minimize 
environmental harm have, as described in the BLM ROD and Appendices for 
the ISEGS project, been adopted as mitigation measures by BLM.

    Issued in Washington, DC, on April 4, 2011.
Jonathan M. Silver,
Executive Director, Loan Programs Office.
[FR Doc. 2011-9272 Filed 4-15-11; 8:45 am]
BILLING CODE 6450-01-P