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[Federal Register Volume 76, Number 189 (Thursday, September 29, 2011)]
[Notices]
[Pages 60475-60477]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25049]

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DEPARTMENT OF ENERGY

Issuance of a Loan Guarantee to Tonopah Solar Energy, LLC, for 
the Crescent Dunes Solar Energy Project

AGENCY: U.S. Department of Energy.

ACTION: Record of decision.

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SUMMARY: The U.S. Department of Energy (DOE) announces its decision to 
issue a Federal loan guarantee under Title XVII of the Energy Policy 
Act of 2005 (EPAct 05), as amended by Section 406 of the American 
Recovery and Reinvestment Act of 2009 (Recovery Act), to Tonopah Solar 
Energy, LLC (TSE), for construction and start-up of the Crescent Dunes 
Solar Energy Project (the Project). The Project is a proposed 110-
megawatt solar power generating facility based on concentrating solar 
power technology, using mirrors and a central receiver, on 
approximately 2,250 acres of U.S. Bureau of Land Management (BLM)-
administered lands in Nye County, Nevada. The environmental impacts of 
construction and start-up of the Project were analyzed in the Final 
Environmental Impact Statement for the Tonopah Solar Energy, LLC, 
Crescent Dunes Solar Energy Project, Nye County, Nevada (75 FR 70917, 
November 19, 2010) (FEIS), prepared by BLM with DOE as a cooperating 
agency. BLM consulted DOE during the preparation of this EIS, DOE 
provided comments, and BLM addressed those comments in the FEIS. DOE 
subsequently determined that the Project analyzed in the FEIS was 
substantially the same as the Project that would be covered by the DOE 
loan guarantee, and DOE adopted the FEIS (76 FR 7844; February 11, 
2011).

ADDRESSES: Copies of this Record of Decision (ROD) and the FEIS may be 
obtained by contacting Angela Colamaria, DOE National Environmental 
Policy Act (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) 287-
5387; or e-mail at Angela.Colamaria@hq.doe.gov, or by accessing these 
documents on the DOE NEPA Web site at http://

[[Page 60476]]

nepa.energy.gov and at the Loan Programs Office Web site at http://www.lgprogram.energy.gov/NEPA_EIS.html.

FOR FURTHER INFORMATION CONTACT: Angela Colamaria, as indicated in the 
ADDRESSES section above. For general information on the DOE 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 AskNEPA@hq.doe.gov. Information 
about DOE NEPA activities and access to DOE NEPA documents are 
available on the DOE NEPA Web site at http://nepa.energy.gov.

SUPPLEMENTARY INFORMATION: 

Project Background

    The Project is a proposed 110-megawatt solar power generating 
facility based on concentrating solar power technology. This technology 
uses heliostats (reflecting mirrors) to redirect sunlight onto a 
receiver erected in the center of a solar field (called the central 
receiver). The proposed solar power facility is to be located on 
approximately 2,250 acres of BLM-managed lands in south-central Nevada, 
roughly 13.5 miles northwest of Tonopah, in Nye County, and located 
within the southern portion of the Big Smoky Valley, north of US 
Highway 95/6 along Pole Line Road (State Highway 89). The proposed 
facility will consist of up to approximately 17,500 heliostats/
reflecting mirrors occupying about 1,600 acres of the total project 
area. Each heliostat will be approximately 670 square feet, together 
yielding a total reflecting surface of about 12,000,000 square feet 
(275.48 acres). The arrangement of the heliostats within the array will 
be optimized to maximize the amount of solar energy that could be 
collected by the field. The solar collecting tower/central receiver 
system will generate electric power from sunlight by focusing 
concentrated solar radiation onto a tower-mounted receiver. The solar 
collecting tower will be a total of 653 feet high, including a 100-foot 
tall cylindrical receiver mounted on the top of the tower. The central 
receiver system will consist of a series of tubes through which a 
liquid salt passes and is heated by the concentrated solar energy. The 
heated salt will be routed to a large insulated tank where it will be 
stored with minimal energy loss. To generate electricity, the heated 
salt will be circulated through a series of heat exchangers to generate 
high-pressure, superheated steam that will be used to power a 
conventional Rankine cycle steam turbine/generator. Energy produced 
from the facility will connect to the electrical grid through a new 
6.9-mile 230 kilovolt (kV) transmission line that will follow a path 
west to an existing transmission alignment. A 40-acre borrow pit will 
be needed to extract aggregate for construction of the access road and 
the base of the proposed facility. A paved, two-lane access road will 
extend approximately 1,500 feet from Pole Line Road to the proposed 
facility.
    DOE's offer of a loan guarantee for the Project is authorized under 
Title XVII of the Energy Policy Act of 2005, as amended by Section 406 
of the Recovery Act. Title XVII as amended authorizes a program for 
rapid deployment of renewable energy and electric power transmission 
projects (the Section 1705 Program).
    Before applying for a loan guarantee, TSE filed an application with 
BLM for a land use right-of-way pursuant to Title V of the Federal Land 
Policy and Management Act (43 U.S.C. 1761), which authorizes BLM to 
issue right-of-way (ROW) lease/grants for renewable energy projects on 
BLM land. The issuance of this ROW lease/grant was considered a major 
Federal action as defined by NEPA, and preparation of an EIS was 
initiated by BLM.

NEPA Review

    BLM was the lead Federal agency in the preparation of the EIS, and 
DOE was a cooperating agency pursuant to a Memorandum of Understanding 
between BLM and DOE signed in February 2009. DOE reviewed the content 
of the EIS, and provided comments to BLM to ensure that information 
required by DOE NEPA regulations (10 CFR Part 1021) was included, and 
that the analyzed alternatives encompassed DOE's proposed loan 
guarantee for construction and start-up of the Project.
    On November 24, 2009, BLM published the ``Notice of Intent to 
Prepare an Environmental Impact Statement for the Proposed Tonopah 
Solar Energy, LLC, Crescent Dunes Solar Energy Project, Nye County, 
Nevada'' in the Federal Register (74 FR 225). Both the Environmental 
Protection Agency (EPA) and BLM published Notices of Availability of 
the Draft Environmental Impact Statement (DEIS) in the Federal Register 
on September 3, 2010 (75 FR 54145 and 75 FR 54177, respectively). The 
DEIS was available for a 45-day public comment period, which closed on 
October 18, 2010. Two open house public meetings were held to provide 
further public involvement: One in Las Vegas, Nevada, on September 22, 
2010, and the other in Tonopah, Nevada, on September 23, 2010. During 
the comment period for the DEIS, BLM received 23 comment letters. 
Comments received on the DEIS were addressed in the FEIS, and resulted 
in the addition of clarifying text.
    BLM completed the Project FEIS in cooperation with the United 
States Air Force, DOE, the Nevada Department of Wildlife, Nye County, 
Esmeralda County, and the Town of Tonopah; EPA published a Notice of 
Availability for the FEIS in the Federal Register on November 19, 2010 
(75 FR 70917). The FEIS analyzed the environmental impacts that would 
be associated with construction and operation of the Project, and 
addressed public comments.
    On December 20, 2010, BLM decided to allow a solar energy ROW 
lease/grant to TSE for the Project to be constructed on BLM-managed 
land in Nye County, Nevada. BLM identified its Selected Alternative and 
the Secretary of the Interior issued Secretarial Approval of this 
decision. The environmental mitigation measures for the Project were 
specified in BLM's ROD (75 FR 81307; December 27, 2010). Links to these 
documents can be found at the BLM Web site: http://www.blm.gov/nv/st/en/fo/battle_mountain_field/blm_information/national_environmental/crescent_dunes_solar.html.
    After independently reviewing the BLM FEIS, DOE determined that the 
issues raised by commenters have been adequately addressed in the FEIS. 
On January 31, 2011, DOE adopted the FEIS (DOE/EIS-0454) to meet its 
NEPA obligations related to its proposal to provide up to $737 million 
in a loan guarantee to support the financing of the Project. The Notice 
of Adoption was published by EPA in the Federal Register on February 
11, 2011 (76 FR 7844).

Alternatives Considered

    BLM considered three site locations that would occupy nearly equal 
acreage on lands administered by BLM and would use the same 
concentrating solar power technology. BLM's Proposed Action would 
eliminate 1,374 acres of Nevada oryctes (a state protected plant) 
habitat and 1,466 acres of pale kangaroo mouse (a state protected 
species) habitat. The Proposed Action would be located to the south of 
the Crescent Dunes Special Recreation Management Area (SRMA), but would 
not encroach on the SRMA. It would have potential conflicts with the 
Air Force radar testing

[[Page 60477]]

mission at the nearby Nevada Test and Training Range.
    BLM's Alternative 1 would encroach on 130 acres of a ROW avoidance 
area for the Crescent Dunes SRMA, thus creating the need for an 
amendment to the Tonopah Resource Management Plan. This alternative 
would eliminate 803 acres of Nevada oryctes habitat, 1,191 acres of 
pale kangaroo mouse habitat, and 7 acres of habitat for several endemic 
species of scarab beetles (BLM sensitive species). Alternative 1 would 
minimize potential conflicts with military operations for the Air Force 
radar testing mission.
    BLM's Preferred Alternative, which it selected in its ROD, is 
Alternative 2. Alternative 2 is situated on low or no-relief public 
land. This alternative encompasses 2,250.27 acres of public lands. 
However, the proposed project facility would only utilize approximately 
2,094.27 acres, of which 1,620 acres would be disturbed. Alternative 2 
is located to the west of the Crescent Dunes SRMA and eliminates or 
reduces environmental impacts overall, such as visual impacts to 
recreational users of the SRMA. The site would disturb 434 acres of 
habitat for the Nevada oryctes and the pale kangaroo mouse, and there 
would be no impacts to habitat for the endemic species of scarab 
beetles. The site also minimizes potential conflicts with military 
operations for the Air Force radar testing mission. Finally, the site 
is located closer to an access road and an existing transmission line, 
and would therefore reduce the amount of necessary surface disturbance.
    BLM also examined the impacts resulting from a No Action 
Alternative, under which the Project would not be constructed. All of 
these alternatives were described in detail and fully analyzed in the 
FEIS.
    DOE's decision is whether or not to issue a loan guarantee to 
Tonopah Solar Energy, LLC, for $737 million to support construction and 
startup of the Project as selected in the BLM ROD. Accordingly, the DOE 
alternatives are to issue the loan guarantee to TSE for construction 
and start-up of the Project under Alternative 2, which BLM selected in 
its ROD, and the No Action Alternative. Under the No Action 
Alternative, DOE would not issue a loan guarantee for the Project and 
it is not likely that TSE would implement the Project as currently 
planned.

Environmentally Preferred Alternative

    BLM identified Alterative 2 as the Environmentally Preferred 
Alternative. This Alternative has the least impacts to special status 
plants and wildlife species, stays within the existing transmission 
corridor and reduces the length of the transmission line needed. It 
does not encroach upon the Crescent Dunes SRMA.
    DOE has decided that its alternative to issue a loan guarantee for 
construction and start-up of the Project, as selected in the BLM ROD, 
is environmentally preferable. DOE has determined that the Project 
offers substantial environmental benefits due to reductions in 
greenhouse gas emissions, as described in the FEIS. DOE has also 
determined that all practicable means to avoid or minimize 
environmental harm, as described in the BLM ROD, have been adopted as 
mitigation measures by BLM.

Consultation

    As the lead Federal agency for the Crescent Dunes Solar Energy 
Project, BLM complied 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 entered into government-to-
government consultations with Native American tribes. The mitigation 
measures included in the BLM decision resulted from these consultations 
and are addressed in the FEIS and BLM ROD. Specifically, the Nevada 
State Historic Preservation Office (SHPO) reviewed this project under 
section 106 of the National Historic Preservation Act, and concurred 
with BLM's determinations of site eligibility to the National Register 
of Historic Places (NRHP) of nine eligible properties that will be 
affected by this project. A Historic Properties Treatment Plan 
describing mitigation measures that will be employed to resolve any 
adverse effect to the nine NRHP eligible sites has been prepared. A 
Memorandum of Agreement between the BLM and Nevada SHPO has been 
implemented to ensure the Historic Properties Treatment Plan will 
mitigate any adverse effect to these NRHP-eligible sites. Furthermore, 
an Endangered Species Act section 7 consultation was completed by BLM 
during the NEPA process, and a Wildlife Mitigation and Monitoring Plan 
was included in the FEIS. Finally, BLM conducted and completed Tribal 
consultation with Federally-Recognized Indian Tribes, and consulted 
with the Nevada SHPO.

Decision

    DOE has decided to issue a loan guarantee for construction and 
start-up of the Crescent Dunes Solar Energy Project, as selected in the 
BLM ROD.
    Approval of the loan guarantee for the Project responds to DOE's 
purpose and need pursuant to Title XVII of EPAct 05, as amended by 
section 406 of the Recovery Act, which authorizes a new program for 
rapid deployment of renewable energy 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 renewable energy, transmission, and leading-
edge biofuels projects. Eligible projects must commence construction no 
later than September 30, 2011.
    In reaching this decision, DOE reviewed the Project NEPA 
documentation and considered the potential impacts of the selected 
alternative, including implementation of the stipulated mitigation 
measures. DOE prepared this ROD in accordance with the Council on 
Environmental Quality regulations for implementing NEPA and DOE's NEPA 
Implementing Procedures.

Mitigation

    The Project that will be supported by issuance of the DOE loan 
guarantee includes all mitigation conditions applied by BLM in its ROD. 
BLM is the Federal lead agency for the Project under NEPA, and is 
responsible for ensuring compliance with all adopted mitigation 
measures for the Project set out in its ROD. A description of the 
mitigation measures is provided in the BLM ROD and in BLM's ROW lease/
grant (Appendix A to the BLM ROD). BLM has incorporated these 
mitigation measures into the ROW lease/grant as terms and conditions 
(Exhibit B to the ROW lease/grant).
    The DOE loan guarantee agreement requires the applicant to comply 
with all applicable laws and the terms of the ROW lease/grant, 
including its mitigation measures. An applicant's failure to comply 
with applicable laws and the ROW lease/grant 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.

    Issued in Washington, DC, on September 23, 2011.
Jonathan M. Silver,
Executive Director, Loan Programs Office.
[FR Doc. 2011-25049 Filed 9-28-11; 8:45 am]
BILLING CODE 6450-10-P
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