Issuance of a Loan Guarantee to First Solar, Inc., for the Desert Sunlight Solar Farm Project, 62052-62054 [2011-25891]
Download as PDF
62052
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
and Mitigation, and summarized in the
January 2011 ROD. These practices and
mitigation measures, and additional
mitigation measures identified in the
Supplement Analysis for the Modified
Proposed Action, will be implemented
for the Project. Mitigation measures
beyond those specified in permit
conditions will be addressed in a
mitigation action plan (MAP) that DOE
will prepare pursuant to 10 CFR
1021.331. The MAP and annual
monitoring reports will be available on
the DOE NEPA Web site (https://
energy.gov/nepa) and the DOE Golden
Field Office Web site (https://
www.eere.energy.gov/golden/
Reading_Room.aspx).
DOE’s decision in this ROD is
whether or not to issue a $134 million
loan guarantee to Abengoa to support
construction and start-up of the Project.
Accordingly, DOE’s alternatives are (1)
to issue a loan guarantee to Abengoa for
the Proposed Action alternative selected
in the January 2011 ROD and
subsequently modified (the Modified
Proposed Action described in the
Supplement Analysis), and (2) No
Action Alternative, i.e., no loan
guarantee.
mstockstill on DSK4VPTVN1PROD with NOTICES
Environmentally Preferred Alternative
Issuance of a loan guarantee for the
Project would result in both beneficial
and adverse potential environmental
impacts. Potential beneficial impacts
include those associated with
reductions in greenhouse gas emissions
and a decrease in water withdrawals;
adverse impacts include those
associated with a substantial increase in
transportation activity and minor
impacts from air emissions. On balance,
DOE regards the No Action Alternative,
which would result in no change in
existing environmental conditions, as
the environmentally preferred
alternative.
Decision
On January 12, 2011, DOE announced
the issuance of a ROD to provide
Federal funding under Section 932 of
EPAct 2005 to Abengoa for the Project.
DOE’s decision in this ROD is to select
alternative (1) identified above: To issue
a loan guarantee for construction and
start-up of the Project (the Modified
Proposed Action as described in the
Supplement Analysis). Under
alternative (2), the No Action
Alternative, DOE would not issue a loan
guarantee for the Project, and it is
unlikely that Abengoa would implement
the Project as currently planned. While
the direct and indirect environmental
impacts of the Project would be avoided
under the No Action Alternative, the
VerDate Mar<15>2010
16:07 Oct 05, 2011
Jkt 226001
benefits that would be gained from the
development, demonstration, and
commercial operation of an integrated
biorefinery that uses lignocellulosic
feedstocks would not be realized. In
addition, no benefits would be realized
from the reduction of air pollutants and
emissions of greenhouse gases by
displacing gasoline with biofuel.
Approval of the loan guarantee for the
Project meets DOE’s purpose and need
pursuant to Title XVII of EPAct 2005 (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 2005
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 projects
that meet the goals of the Act.
In addition, the Project is also eligible
for a loan guarantee under Section 1705
of Title XVII (implemented pursuant to
Section 406 of the American Recovery
and Reinvestment Act of 2009 (ARRA)).
Eligible Section 1705 projects include
renewable energy projects and related
manufacturing facilities, electric power
transmission projects, and leading edge
biofuels projects. The primary purposes
of ARRA 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 facing the
nation. To qualify under Section 1705,
projects must commence construction
by September 30, 2011.
Mitigation
This ROD incorporates all practicable
means to avoid or minimize
environmental harm. The Project that
will be supported by issuance of the
DOE loan guarantee includes all
mitigation conditions applied by DOE
for this Project in its Final EIS, January
2011 ROD, and Supplement Analysis. In
the Supplement Analysis, DOE
concluded that additional mitigation
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
measures are warranted to reduce
potential impacts from accidental
releases of anhydrous ammonia.
Mitigation measures beyond those
specified in permit conditions will be
addressed in a MAP that DOE will
prepare pursuant to 10 CFR 1021.331.
The MAP will explain how the
mitigation measures will be planned,
implemented, and monitored. DOE will
ensure that commitments in the ROD
are incorporated into DOE’s loan
guarantee agreement with Abengoa. The
MAP and annual monitoring reports
will be available on the DOE NEPA Web
site (https://energy.gov/nepa) and the
DOE Golden Field Office Web site
(https://www.eere.energy.gov/golden/
Reading_Room.aspx).
DOE’s loan guarantee agreements
require the applicant to comply with all
applicable laws and the MAP, including
mitigation measures contained therein.
An applicant’s failure to comply with
applicable laws and the MAP 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
20, 2011.
Jonathan M. Silver,
Executive Director, Loan Programs Office.
[FR Doc. 2011–25857 Filed 10–5–11; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Issuance of a Loan Guarantee to First
Solar, Inc., for the Desert Sunlight
Solar Farm Project
U.S. Department of Energy.
Record of decision.
AGENCY:
ACTION:
The U.S. Department of
Energy (DOE) announces its decision to
issue a loan guarantee under Title XVII
of the Energy Policy Act of 2005 (EPAct
2005) to First Solar, Inc., (First Solar) for
construction and start-up of the Desert
Sunlight Solar Farm Project (DSSFP or
the Project), a 550-megawatt (MW)
nominal capacity solar photovoltaic
power generating facility on
approximately 4,144 acres, all of which
is administered by the U.S. Department
of the Interior, Bureau of Land
Management (BLM), in Riverside
County, California. The potential
environmental impacts of constructing
and operating this project were analyzed
pursuant to the National Environmental
SUMMARY:
E:\FR\FM\06OCN1.SGM
06OCN1
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
Policy Act (NEPA) in Plan Amendment/
Final Environmental Impact Statement
for the Desert Sunlight Solar Farm
Project (76 Federal Register [FR] 21402;
April 15, 2011) prepared by the BLM
Palm Springs-South Coast Field Office
with DOE as a cooperating agency. BLM
consulted DOE during preparation of
the EIS, DOE provided comments to
BLM on the content, and BLM
addressed those comments in the Final
EIS. DOE subsequently determined that
the project analyzed in the Final EIS is
substantially the same as the project that
would be covered by the DOE loan
guarantee and that its own NEPA
procedures had been satisfied, and DOE
adopted the Final EIS (DOE/EIS–0448)
(76 FR 37112; June 24, 2011).
ADDRESSES: Copies of this ROD and the
Final EIS may be obtained by contacting
Joseph Marhamati, 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–
586–8198; or e-mail
joseph.marhamati@hq.doe.gov. The
Final EIS and this ROD are also
available on the DOE NEPA Web site at:
https://nepa.energy.gov, and on the Loan
Programs Web site at: https://
www.loanprograms.energy.gov.
FOR FURTHER INFORMATION CONTACT: For
further information about this ROD,
contact Joseph Marhamati, as indicated
in the ADDRESSES section above. For
general information about 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
through the DOE NEPA Web site at
https://nepa.energy.gov.
SUPPLEMENTARY INFORMATION:
Background
The proposed DSSFP is a photovoltaic
solar electrical generating facility using
commercial, thin-film cadmium
telluride solar module technology on a
total of approximately 4,144 acres of
BLM-administered Federal land in
Riverside County, California, six miles
north of Desert Center, between the
cities of Coachella to the west and
Blythe to the east. The Project includes
an operations and maintenance facility,
solar energy visitor’s center, and an onsite electric transmission substation.
Also, the Project includes a 220-kilovolt
VerDate Mar<15>2010
16:07 Oct 05, 2011
Jkt 226001
(kV) Gen-Tie Line (generation
interconnection line) that will transmit
the electricity generated to the regional
transmission system, through the
proposed new Red Bluff Substation
where the power will feed into Southern
California Edison’s existing ‘‘Devers
Palo Verde 1’’ 500-kV transmission line.
The Gen-Tie Line will be 12.1 miles
long. In addition, the Project will
include a distribution line, an electrical
transmission line, telecommunication
facilities, and an access road
(approximately 7.3 miles long).
In November 2009, the BLM Palm
Springs-South Coast Field Office
received an application pursuant to
Title V of the Federal Land Policy and
Management Act (43 United States Code
[U.S.C.] 1761) for a right-of-way (ROW)
grant to construct, operate, maintain,
and decommission a project identified
as the Desert Sunlight Solar Farm
Project on BLM-administered Federal
land in Riverside County, California.
The BLM California Desert Conservation
Area (CDCA) Plan requires all sites
identified for power generation or
transmission facilities that are not
identified in the CDCA Plan to acquire
a Plan Amendment to the CDCA Plan.
BLM approved the Proposed Plan
Amendment to the CDCA Plan to allow
the DSSFP and approved a solar energy
ROW grant to First Solar for the project.
BLM published a Notice of Availability
for its ROD in the Federal Register on
August 15, 2011 (76 FR 50493).
In December 2009, First Solar applied
to DOE for a loan guarantee under Title
XVII of EPAct 2005, as amended by
Section 406 of the American Recovery
and Reinvestment Act of 2009 (Recovery
Act). On January 7, 2010, First Solar
submitted its Part II application for a
$1.24 billion loan guarantee to support
the financing of the DSSFP.
NEPA Review
BLM was the lead Federal agency in
the preparation of the DSSFP EIS, and
DOE was a cooperating agency pursuant
to a Memorandum of Agreement
between DOE and BLM signed in
January 2010. DOE reviewed the content
of the draft EIS and provided comments
to BLM to ensure that information
requirements of DOE NEPA regulations
(10 Code of Federal Regulations part
1021) were satisfied and that the
analyzed alternatives encompassed the
DOE proposed loan guarantee for
construction and start-up of DSSFP.
On January 13, 2010, BLM published
‘‘Notice of Intent To Prepare an
Environmental Impact Statement for the
Proposed First Solar Desert Sunlight
Solar Farm Project, Riverside County,
CA and Possible Land Use Plan
PO 00000
Frm 00019
Fmt 4703
Sfmt 4703
62053
Amendment’’ in the Federal Register
(75 FR 1801), with a 30-day scoping
period for public comments that closed
on February 12, 2010. The U.S.
Environmental Protection Agency (EPA)
published a Notice of Availability of the
Draft EIS and the Draft CDCA Plan
Amendment for DSSFP in the Federal
Register on August 27, 2010 (75 FR
52736). The Draft EIS was available for
a 90-day public comment period, which
closed on November 26, 2010.
Comments received on the Draft EIS
were addressed in the Plan Amendment
and Final Environmental Impact
Statement for the Desert Sunlight Solar
Energy Project (Final EIS), and the EPA
published a Notice of Availability in the
Federal Register on April 15, 2011 (76
FR 21345). All substantive comments
received during the 30-day waiting
period for the Final EIS were reviewed
and responded to in Section 5.3 of
BLM’s Record of Decision for the Desert
Sunlight Solar Farm Project (BLM ROD).
BLM published the Notice of
Availability for its ROD in the Federal
Register on August 15, 2011 (76 FR
50493). Links to these documents can be
found on the BLM Web site: https://
www.blm.gov/ca/st/en/prog/energy/
fasttrack/First/fedstatus.html.
Alternatives Considered
BLM considered six alternatives: (1)
The project identified in the Final EIS
as the Proposed Action with Land Use
Plan Amendment (4,144-acre site layout
and 550 MW output); (2) an Alternate
Action Alternative with Land Use Plan
Amendment (reconfigured 4,110-acre
site layout and 550 MW output); (3) a
Reduced Acreage Alternative with Land
Use Plan Amendment (3,303-acre site
layout and 413 MW output); (4) No
Action Alternative A (No Issuance of a
Right-of-Way Grant and No Land Use
Plan Amendment); (5) No Action
Alternative B (No Project with Plan
Amendment to identify the area as
unsuitable for solar energy
development); and (6) No Action
Alternative C (No Project with Plan
Amendment to identify the area as
suitable for solar energy development).
Chapter 2 of the Final EIS describes
these alternatives in detail, and they are
fully analyzed in Chapter 4 of the Final
EIS. Alternative 1 was identified in the
Final EIS as the Preferred Alternative
and ultimately selected by BLM. BLM
also approved part of Final EIS
Alternative 5 that makes the remainder
of the Project Study Area
(approximately 14,500 acres)
unavailable for large-scale solar energy
development.
The DOE decision is whether or not
to issue a loan guarantee to First Solar
E:\FR\FM\06OCN1.SGM
06OCN1
62054
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
for $1.24 billion to support construction
and start-up of the DSSFP. Accordingly,
the DOE alternatives are to issue the
loan guarantee to First Solar for
construction and start-up of the DSSFP
under the Proposed Action identified as
the BLM Selected Alternative in the
BLM 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 First Solar would implement
the project as currently planned.
mstockstill on DSK4VPTVN1PROD with NOTICES
Environmentally Preferable Alternative
BLM’s environmentally preferred
alternative is the No Action Alternative
involving No Project with Plan
Amendment to Identify the Area as
Unsuitable for Solar Development
(Alternative 5). This alternative would
not allow development of the proposed
project or other solar energy generating
projects at this location and would have
no impacts on the ground. BLM
indicated in its ROD that this alternative
would not allow the development of
renewable energy, and this alternative
was not chosen in full by BLM.
However, a portion of the alternative
was approved which made the
remainder of the Project Study Area
unavailable to solar development.
DOE has decided that its proposed
Alternative, to issue a loan guarantee for
construction and start-up of the DSSFP
identified as the Proposed Action in the
Final EIS, is environmentally preferable.
DOE has determined that this
alternative offers substantial
environmental benefits due to
anticipated reductions in greenhouse
gas emissions as described in the Final
EIS, and because all practicable means
to avoid or minimize environmental
harm, as described in the Final EIS and
BLM ROD and its appendices for the
DSSFP, are required by BLM as
mitigation measures.
Consultation
As the lead Federal agency for the
DSSFP, BLM complied with Section 106
of the National Historic Preservation Act
and consulted with the Advisory
Council on Historic Preservation, the
California State Historic Preservation
Officer, and interested Native American
tribes; complied with Section 7 of the
Endangered Species Act and the Bald
and Golden Eagle Protection Act and
consulted with the U.S. Fish and
Wildlife Service; and entered into
government-to-government
consultations with a number of tribal
governments. In addition, BLM
consulted with the U.S. Army Corps of
Engineers, which determined that the
project site does not impact waters of
VerDate Mar<15>2010
16:07 Oct 05, 2011
Jkt 226001
the United States and that a Clean Water
Act permit will not be required, and the
State of California and Riverside County
regarding compliance with state and
local laws. Chapter 5 of the BLM Final
EIS summarizes consultations with
agencies and other entities.
Intentional Destructive Acts
As a part of its review, DOE verified
that a discussion of acts of terrorism,
sabotage or other intentional destructive
acts was included in the Final EIS. DOE
concludes that the proposed DSSFP
presents an unlikely target for an act of
terrorism or sabotage. Further, as
discussed in the Final EIS, the site
security measures provide appropriate
levels of security to protect electrical
infrastructure from malicious mischief,
vandalism, or domestic/foreign terrorist
attacks.
Decision
DOE has decided to issue a loan
guarantee for construction and start-up
of DSSFP identified as the Proposed
Action with Land Use Plan Amendment
alternative in the Final EIS, which BLM
selected in its ROD.
Approval of the loan guarantee for
DSSFP responds to the DOE purpose
and need pursuant to Title XVII Section
1705 of EPAct 2005 (42 U.S.C. 16511–
16514). Section 1705 authorizes a
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
economic conditions of the Nation, in
part, through renewable energy,
transmission, and leading-edge biofuels
projects. To be eligible, projects must
commence construction by September
30, 2011.
Mitigation
The DSSFP project for which DOE has
decided to issue a loan guarantee,
includes mitigation measures, terms,
and conditions applied by BLM in its
ROW grants. The mitigation measures,
terms, and conditions represent
practicable means by which to avoid or
minimize environmental harm from the
selected alternative (Proposed Action).
BLM is the lead Federal agency for the
DSSFP project under NEPA and is
responsible for ensuring compliance
with all adopted mitigation measures,
terms, and conditions for the DSSFP
project set forth in the Final EIS and
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
BLM ROD. The mitigation measures,
terms, and conditions are provided in
Appendix L of the Final EIS and
Appendix 2 of the BLM ROD. A
Compliance Monitoring Plan for those
measures, terms, and conditions is
provided in Appendix 5 of the BLM
ROD.
The DOE loan guarantee agreement
requires that the applicant comply with
all applicable laws and the terms of the
ROW grant, including mitigation
measures contained therein. An
applicant’s failure to comply with
applicable laws and the ROW grant
would constitute a default. Upon
continuance of a default, DOE would
have the right under the loan guarantee
agreement between DOE and the
applicant to exercise usual and
customary remedies. To ensure that the
applicant so performs, the Loan
Programs Office proactively monitors all
operative loan guarantee transactions.
Issued in Washington, DC, on September
29, 2011.
Jonathan M. Silver,
Executive Director, Loan Programs Office.
[FR Doc. 2011–25891 Filed 10–5–11; 8:45 am]
BILLING CODE 6450–10–P
DEPARTMENT OF ENERGY
Environmental Management SiteSpecific Advisory Board Chairs
Department of Energy.
Notice of open teleconference.
AGENCY:
ACTION:
This notice announces a
teleconference of the Environmental
Management Site-Specific Advisory
Board (EM SSAB) Chairs. The Federal
Advisory Committee Act (Pub. L. 92–
463, 86 Stat. 770) requires that public
notice of this teleconference be
announced in the Federal Register.
DATES: Thursday, October 20, 2011;
11 a.m.–3 p.m.
FOR FURTHER INFORMATION CONTACT:
Catherine Alexander, Designated
Federal Officer, U.S. Department of
Energy, 1000 Independence Avenue,
SW., Washington, DC 20585; Phone:
(202) 586–7711.
SUPPLEMENTARY INFORMATION:
Purpose of the Board: The purpose of
the Board is to make recommendations
to DOE–EM and site management in the
areas of environmental restoration,
waste management, and related
activities.
SUMMARY:
Tentative Agenda Topics
Æ EM Program Update.
Æ EM SSAB Chairs’ Round Robin:
Top Three Site-Specific Topics and
Achievements.
E:\FR\FM\06OCN1.SGM
06OCN1
Agencies
[Federal Register Volume 76, Number 194 (Thursday, October 6, 2011)]
[Notices]
[Pages 62052-62054]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25891]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Issuance of a Loan Guarantee to First Solar, Inc., for the Desert
Sunlight Solar Farm Project
AGENCY: U.S. Department of Energy.
ACTION: Record of decision.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Energy (DOE) announces its decision to
issue a loan guarantee under Title XVII of the Energy Policy Act of
2005 (EPAct 2005) to First Solar, Inc., (First Solar) for construction
and start-up of the Desert Sunlight Solar Farm Project (DSSFP or the
Project), a 550-megawatt (MW) nominal capacity solar photovoltaic power
generating facility on approximately 4,144 acres, all of which is
administered by the U.S. Department of the Interior, Bureau of Land
Management (BLM), in Riverside County, California. The potential
environmental impacts of constructing and operating this project were
analyzed pursuant to the National Environmental
[[Page 62053]]
Policy Act (NEPA) in Plan Amendment/Final Environmental Impact
Statement for the Desert Sunlight Solar Farm Project (76 Federal
Register [FR] 21402; April 15, 2011) prepared by the BLM Palm Springs-
South Coast Field Office with DOE as a cooperating agency. BLM
consulted DOE during preparation of the EIS, DOE provided comments to
BLM on the content, and BLM addressed those comments in the Final EIS.
DOE subsequently determined that the project analyzed in the Final EIS
is substantially the same as the project that would be covered by the
DOE loan guarantee and that its own NEPA procedures had been satisfied,
and DOE adopted the Final EIS (DOE/EIS-0448) (76 FR 37112; June 24,
2011).
ADDRESSES: Copies of this ROD and the Final EIS may be obtained by
contacting Joseph Marhamati, NEPA Document Manager, Environmental
Compliance Division, Loan Programs Office (LP-10), U.S. Department of
Energy, 1000 Independence Avenue, SW., Washington, DC 20585; telephone
202-586-8198; or e-mail joseph.marhamati@hq.doe.gov. The Final EIS and
this ROD are also available on the DOE NEPA Web site at: https://nepa.energy.gov, and on the Loan Programs Web site at: https://www.loanprograms.energy.gov.
FOR FURTHER INFORMATION CONTACT: For further information about this
ROD, contact Joseph Marhamati, as indicated in the ADDRESSES section
above. For general information about 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 through the
DOE NEPA Web site at https://nepa.energy.gov.
SUPPLEMENTARY INFORMATION:
Background
The proposed DSSFP is a photovoltaic solar electrical generating
facility using commercial, thin-film cadmium telluride solar module
technology on a total of approximately 4,144 acres of BLM-administered
Federal land in Riverside County, California, six miles north of Desert
Center, between the cities of Coachella to the west and Blythe to the
east. The Project includes an operations and maintenance facility,
solar energy visitor's center, and an on-site electric transmission
substation. Also, the Project includes a 220-kilovolt (kV) Gen-Tie Line
(generation interconnection line) that will transmit the electricity
generated to the regional transmission system, through the proposed new
Red Bluff Substation where the power will feed into Southern California
Edison's existing ``Devers Palo Verde 1'' 500-kV transmission line. The
Gen-Tie Line will be 12.1 miles long. In addition, the Project will
include a distribution line, an electrical transmission line,
telecommunication facilities, and an access road (approximately 7.3
miles long).
In November 2009, the BLM Palm Springs-South Coast Field Office
received an application pursuant to Title V of the Federal Land Policy
and Management Act (43 United States Code [U.S.C.] 1761) for a right-
of-way (ROW) grant to construct, operate, maintain, and decommission a
project identified as the Desert Sunlight Solar Farm Project on BLM-
administered Federal land in Riverside County, California. The BLM
California Desert Conservation Area (CDCA) Plan requires all sites
identified for power generation or transmission facilities that are not
identified in the CDCA Plan to acquire a Plan Amendment to the CDCA
Plan. BLM approved the Proposed Plan Amendment to the CDCA Plan to
allow the DSSFP and approved a solar energy ROW grant to First Solar
for the project. BLM published a Notice of Availability for its ROD in
the Federal Register on August 15, 2011 (76 FR 50493).
In December 2009, First Solar applied to DOE for a loan guarantee
under Title XVII of EPAct 2005, as amended by Section 406 of the
American Recovery and Reinvestment Act of 2009 (Recovery Act). On
January 7, 2010, First Solar submitted its Part II application for a
$1.24 billion loan guarantee to support the financing of the DSSFP.
NEPA Review
BLM was the lead Federal agency in the preparation of the DSSFP
EIS, and DOE was a cooperating agency pursuant to a Memorandum of
Agreement between DOE and BLM signed in January 2010. DOE reviewed the
content of the draft EIS and provided comments to BLM to ensure that
information requirements of DOE NEPA regulations (10 Code of Federal
Regulations part 1021) were satisfied and that the analyzed
alternatives encompassed the DOE proposed loan guarantee for
construction and start-up of DSSFP.
On January 13, 2010, BLM published ``Notice of Intent To Prepare an
Environmental Impact Statement for the Proposed First Solar Desert
Sunlight Solar Farm Project, Riverside County, CA and Possible Land Use
Plan Amendment'' in the Federal Register (75 FR 1801), with a 30-day
scoping period for public comments that closed on February 12, 2010.
The U.S. Environmental Protection Agency (EPA) published a Notice of
Availability of the Draft EIS and the Draft CDCA Plan Amendment for
DSSFP in the Federal Register on August 27, 2010 (75 FR 52736). The
Draft EIS was available for a 90-day public comment period, which
closed on November 26, 2010. Comments received on the Draft EIS were
addressed in the Plan Amendment and Final Environmental Impact
Statement for the Desert Sunlight Solar Energy Project (Final EIS), and
the EPA published a Notice of Availability in the Federal Register on
April 15, 2011 (76 FR 21345). All substantive comments received during
the 30-day waiting period for the Final EIS were reviewed and responded
to in Section 5.3 of BLM's Record of Decision for the Desert Sunlight
Solar Farm Project (BLM ROD). BLM published the Notice of Availability
for its ROD in the Federal Register on August 15, 2011 (76 FR 50493).
Links to these documents can be found on the BLM Web site: https://www.blm.gov/ca/st/en/prog/energy/fasttrack/First/fedstatus.html.
Alternatives Considered
BLM considered six alternatives: (1) The project identified in the
Final EIS as the Proposed Action with Land Use Plan Amendment (4,144-
acre site layout and 550 MW output); (2) an Alternate Action
Alternative with Land Use Plan Amendment (reconfigured 4,110-acre site
layout and 550 MW output); (3) a Reduced Acreage Alternative with Land
Use Plan Amendment (3,303-acre site layout and 413 MW output); (4) No
Action Alternative A (No Issuance of a Right-of-Way Grant and No Land
Use Plan Amendment); (5) No Action Alternative B (No Project with Plan
Amendment to identify the area as unsuitable for solar energy
development); and (6) No Action Alternative C (No Project with Plan
Amendment to identify the area as suitable for solar energy
development). Chapter 2 of the Final EIS describes these alternatives
in detail, and they are fully analyzed in Chapter 4 of the Final EIS.
Alternative 1 was identified in the Final EIS as the Preferred
Alternative and ultimately selected by BLM. BLM also approved part of
Final EIS Alternative 5 that makes the remainder of the Project Study
Area (approximately 14,500 acres) unavailable for large-scale solar
energy development.
The DOE decision is whether or not to issue a loan guarantee to
First Solar
[[Page 62054]]
for $1.24 billion to support construction and start-up of the DSSFP.
Accordingly, the DOE alternatives are to issue the loan guarantee to
First Solar for construction and start-up of the DSSFP under the
Proposed Action identified as the BLM Selected Alternative in the BLM
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 First Solar would implement the project as currently
planned.
Environmentally Preferable Alternative
BLM's environmentally preferred alternative is the No Action
Alternative involving No Project with Plan Amendment to Identify the
Area as Unsuitable for Solar Development (Alternative 5). This
alternative would not allow development of the proposed project or
other solar energy generating projects at this location and would have
no impacts on the ground. BLM indicated in its ROD that this
alternative would not allow the development of renewable energy, and
this alternative was not chosen in full by BLM. However, a portion of
the alternative was approved which made the remainder of the Project
Study Area unavailable to solar development.
DOE has decided that its proposed Alternative, to issue a loan
guarantee for construction and start-up of the DSSFP identified as the
Proposed Action in the Final EIS, is environmentally preferable. DOE
has determined that this alternative offers substantial environmental
benefits due to anticipated reductions in greenhouse gas emissions as
described in the Final EIS, and because all practicable means to avoid
or minimize environmental harm, as described in the Final EIS and BLM
ROD and its appendices for the DSSFP, are required by BLM as mitigation
measures.
Consultation
As the lead Federal agency for the DSSFP, BLM complied with Section
106 of the National Historic Preservation Act and consulted with the
Advisory Council on Historic Preservation, the California State
Historic Preservation Officer, and interested Native American tribes;
complied with Section 7 of the Endangered Species Act and the Bald and
Golden Eagle Protection Act and consulted with the U.S. Fish and
Wildlife Service; and entered into government-to-government
consultations with a number of tribal governments. In addition, BLM
consulted with the U.S. Army Corps of Engineers, which determined that
the project site does not impact waters of the United States and that a
Clean Water Act permit will not be required, and the State of
California and Riverside County regarding compliance with state and
local laws. Chapter 5 of the BLM Final EIS summarizes consultations
with agencies and other entities.
Intentional Destructive Acts
As a part of its review, DOE verified that a discussion of acts of
terrorism, sabotage or other intentional destructive acts was included
in the Final EIS. DOE concludes that the proposed DSSFP presents an
unlikely target for an act of terrorism or sabotage. Further, as
discussed in the Final EIS, the site security measures provide
appropriate levels of security to protect electrical infrastructure
from malicious mischief, vandalism, or domestic/foreign terrorist
attacks.
Decision
DOE has decided to issue a loan guarantee for construction and
start-up of DSSFP identified as the Proposed Action with Land Use Plan
Amendment alternative in the Final EIS, which BLM selected in its ROD.
Approval of the loan guarantee for DSSFP responds to the DOE
purpose and need pursuant to Title XVII Section 1705 of EPAct 2005 (42
U.S.C. 16511-16514). Section 1705 authorizes a 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
economic conditions of the Nation, in part, through renewable energy,
transmission, and leading-edge biofuels projects. To be eligible,
projects must commence construction by September 30, 2011.
Mitigation
The DSSFP project for which DOE has decided to issue a loan
guarantee, includes mitigation measures, terms, and conditions applied
by BLM in its ROW grants. The mitigation measures, terms, and
conditions represent practicable means by which to avoid or minimize
environmental harm from the selected alternative (Proposed Action). BLM
is the lead Federal agency for the DSSFP project under NEPA and is
responsible for ensuring compliance with all adopted mitigation
measures, terms, and conditions for the DSSFP project set forth in the
Final EIS and BLM ROD. The mitigation measures, terms, and conditions
are provided in Appendix L of the Final EIS and Appendix 2 of the BLM
ROD. A Compliance Monitoring Plan for those measures, terms, and
conditions is provided in Appendix 5 of the BLM ROD.
The DOE loan guarantee agreement requires that the applicant comply
with all applicable laws and the terms of the ROW grant, including
mitigation measures contained therein. An applicant's failure to comply
with applicable laws and the ROW grant would constitute a default. Upon
continuance of a default, DOE would have the right under the loan
guarantee agreement between DOE and the applicant to exercise usual and
customary remedies. To ensure that the applicant so performs, the Loan
Programs Office proactively monitors all operative loan guarantee
transactions.
Issued in Washington, DC, on September 29, 2011.
Jonathan M. Silver,
Executive Director, Loan Programs Office.
[FR Doc. 2011-25891 Filed 10-5-11; 8:45 am]
BILLING CODE 6450-10-P