Record of Decision: Issuance of a Loan to Lithium Nevada Corp. for the Construction and Startup of the Thacker Pass Project, 87352-87354 [2024-25481]

Agencies

• DEPARTMENT OF ENERGY

[Federal Register Volume 89, Number 212 (Friday, November 1, 2024)]
[Notices]
[Pages 87352-87354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25481]


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DEPARTMENT OF ENERGY


Record of Decision: Issuance of a Loan to Lithium Nevada Corp. 
for the Construction and Startup of the Thacker Pass Project

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

ACTION: Record of decision (ROD).

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SUMMARY: The U.S. Department of Energy (DOE or the Department) 
announces its decision to issue a loan under the Energy Independence 
and Security Act of 2007, which established the Advanced Technology 
Vehicles Manufacturing Loan (ATVM) program, to Lithium Nevada Corp. 
(LNC), for the Thacker Pass Project (Project) located in Humboldt 
County, Nevada. The LPO loan covers Phase 1 of the Project, which 
entails the construction of lithium processing to include a sulfuric 
acid plant, lithium processing facility, and associated infrastructure. 
The Project is designed to produce battery-grade lithium carbonate, a 
critical component in the manufacturing of manufacture of eligible 
advanced technology vehicles and qualifying components.

ADDRESSES: Copies of this ROD and the Final EIS may be obtained by 
accessing these documents and additional information about DOE's Loan 
Programs website at www.energy.gov/lpo/eis-0561-thacker-pass-lithium-mine-project-humboldt-county-nevada, or LPO's NEPA Program website at 
www.energy.gov/lpo/environmental-compliance-1.

FOR FURTHER INFORMATION CONTACT: Dr. Anna Eskridge, NEPA Document 
Manager, Technical and Environmental Division, Loan Programs Office 
(LP-30), U.S. Department of Energy, 1000 Independence Avenue SW, 
Washington, DC 20585; telephone (240) 743-1304; email 
[email protected].

SUPPLEMENTARY INFORMATION: The environmental impacts of the 
construction, operation, and decommissioning of this project were 
analyzed pursuant to the National Environmental Policy Act (NEPA) in 
the DOE/EIS-0561: Final Environmental Impact Statement for the Thacker 
Pass Lithium Mine Project, Humboldt County, Nevada (Adopted) (88 FR 
67277, September 29, 2023).
    DOE LPO's review and adoption of the BLM NEPA documents covers only 
Phase 1 of the project to include the ore and chemical processing 
facilities and associated infrastructure, and not the development and 
operation of the open pit mine or exploration.
    NEPA Review: Prior to DOE LPO consideration of a loan for the 
Project, LNC submitted the Plan of Operations for the Thacker North-
South Exploration Project (case file NVN-098582) and the Thacker Pass 
Project Plan of Operations and Reclamation Plan (case file NVN-098586) 
to the U.S. Department of the Interior (DOI), Bureau of Land Management 
(BLM) Winnemucca District Office in September 2019. The North-South 
Exploration Plan of Operations would continue exploration to the north 
and south of the mine and processing facilities proposed in the Thacker 
Pass Project Plan of Operations. The Thacker Pass Mine Plan of 
Operations, herein referred to as the Mine Plan, would include the 
proposed mine, necessary processing and ancillary support facilities, 
and a plan for reclamation and closure of the mine and mine facilities. 
These Plans constituted the Thacker Pass Project analyzed in the FEIS. 
The Project is entirely on public land administered by the BLM in 
Humboldt County, Nevada, approximately 17 miles west-northwest of 
Orovada. Both Plans include corrections from December 2020 identified 
by BLM and Nevada Division of Environmental Protection (NDEP), and 
mitigating measures refined during the development of the EIS.
    In compliance with NEPA, BLM issued the Draft EIS on July 31, 2020, 
which was followed by the Final EIS on December 4, 2020. On January 15, 
2021, BLM issued a Record of Decision (ROD) for the Project that 
approved the plan of operations. The ROD identified Alternative A as 
the preferred alternative.
    DOE was not a cooperating agency in the development of the EIS but 
became a cooperating agency for the project on August 15, 2023. Based 
on its independent evaluation of the 2020 BLM Final EIS, DOE has 
determined that the documentation satisfies DOE's NEPA obligations. 
DOE's proposed action is to provide funding to be used to support the 
construction and start-up of the mine processing facilities and 
associated infrastructure, which are the same proposed project 
facilities analyzed in the BLM Final EIS. Accordingly, DOE adopted the 
2020 BLM Final EIS as a DOE Final EIS (DOE/EIS-0561) on September 29, 
2023.
    There have been several updates to the Project since DOE's adoption 
of the EIS in September 2023:
     In December 2023, LNC submitted minor revisions on the 
approved Mine Plan to BLM. On June 25, 2024, BLM authorized a minor 
modification to Phase 1 of the Mine Plan, which included proposed 
project facility locations, configuration of some facilities, and 
improvement to processing operations.
     As an update to the discussions on the transloading 
facility in Sections 2.2.7 (Ancillary and Support Facilities) and 
4.16.1 (Issues--Public Access and Transportation) of DOE/EIS-0561, a 
rail-to-truck transloading facility is under development by a third 
party in Winnemucca to deliver raw materials to the site. Trucking 
distances are approximately 45 miles from Winnemucca to Orovada on US 
Highway 95, and about 20 miles from Orovada to the site. The facility 
is not funded by the DOE financing and not located at the site of the 
Thacker Pass mine and processing facilities.
     DOE's review identified additional cumulative impacts, 
which are effects on the environment that result from the incremental 
effects of the action when added to the effects of other past, present, 
and reasonably foreseeable actions regardless of what agency (Federal 
or non-Federal) or person undertakes such other actions (40 CFR 
1508.1(i)(3)). The review identified the following present and 
reasonably foreseeable future actions related to the Project:

[[Page 87353]]

    [cir] Workforce Housing Hub: A workforce housing hub will be 
developed in Winnemucca on a 45-acre site to house up to 1,900 workers 
in 750 housing units. The hub is needed due to the limited rental 
housing and hotels available in the Winnemucca area. The hub is not 
funded by the DOE financing and not located at the site of the Thacker 
Pass mine and processing facilities. For cumulative effect study areas 
that the hub occurs within, the cumulative effects are not materially 
different from those analyzed by the BLM in chapter 5.11 (Social and 
Economic Conditions) of DOE/EIS-0561.
    [cir] Greenhouse Gas (GHG) Emissions and Climate Change: Section 
5.9 (Air Quality and Greenhouse Gas Emissions) and Appendix K of DOE/
EIS-0561 discuss the Project's GHG emissions to include process sources 
and mobile mining equipment. However, the Project will also contribute 
to reductions in GHG emissions through annual fuel consumption savings. 
The magnitude of potential annual reductions in gallons of petroleum 
will depend on the number of EVs that can utilize the lithium carbonate 
produced by the Project. Lithium carbonate from Thacker Pass could 
support the production of batteries for up to 800,000 electric vehicles 
(EVs) annually, avoiding the consumption of 317 million gallons of 
gasoline per year. The annual avoided CO2 is calculated from 
the Project's annual fuel consumption savings (317 million gallons) 
multiplied by the U.S. Energy Information Administration CO2 
emission coefficient of 19.37 pounds of CO2/gallon for 
gasoline (www.eia.gov/environment/emissions/co2_vol_mass.php). 
Therefore, the Lithium carbonate produced by the Project and used in 
EVs would support a reduction of approximately 3.07 million tons of 
CO2 per year.
    Alternatives Considered: DOE's decision in this ROD is whether or 
not to issue a loan to LNC to support construction and start-up of the 
Project. Accordingly, DOE's alternatives are: (1) to issue a loan to 
LNC for the Proposed Action as authorized by BLM (Proposed Action), or 
(2) not issue a loan to LNC (No Action Alternative).
    Environmentally Preferable Alternative: DOE reviewed both 
alternatives to identify the environmentally preferable alternative and 
considers the issuance of a loan to LNC for the Proposed Action as the 
environmentally preferable alternative. This alternative offers 
environmental benefits consistent with the statutory objectives of 
Section 136 of the Energy Independence and Security Act of 2007, which 
includes improving fuel economy for light-duty vehicles and thereby 
reducing emissions of ozone precursors, greenhouse gases (GHGs), and 
particulates associated with vehicle fuel combustion. As previously 
stated, the Lithium carbonate produced by the Project and used in EVs 
would support a reduction of approximately 3.07 million tons of 
CO2 per year.
    Wetland Statement of Findings: The adopted Final EIS (DOE/EIS-0561) 
provides the relevant information for a wetland assessment pursuant to 
10 CFR part 1022. In the aquatic resources delineation for the Proposed 
Action as outlined in the BLM EIS, there were approximately 28.081 
acres of wetlands and 128,411-linear feet of stream channel present 
within the survey area; however, aquatic resources in the Survey area 
did not meet the criteria of jurisdictional Waters of the United 
States. This was confirmed by the U.S. Army Corps of Engineers (USACE), 
which issued an Approved Jurisdictional Determination (AJD) on February 
8, 2019, providing that no aquatic resources within the Survey area are 
regulated by the USACE (Identification Number SPK-2011-01263). However, 
there are non-jurisdictional riparian areas as well as wetlands at the 
Project site and those impacts and the wetland assessment on those 
resources are discussed in sections 4.4 and 5.4 in the Final DOE/EIS-
0561.
    Consultations: DOE was not a cooperating agency with BLM during its 
NEPA process; therefore, DOE completed its own environmental compliance 
reviews and consultations. Specifically, DOE consulted with the U.S. 
Fish and Wildlife Service (USFWS), the Nevada State Historic 
Preservation Office (NV SHPO), and Tribes (collectively known as Tribes 
or individually by name: Burns Paiute Tribe; Confederated Tribes of the 
Warm Springs Reservation of Oregon; Fort McDermitt Paiute and Shoshone 
Tribe; Paiute-Shoshone Tribe of the Fallon Reservation and Colony, 
Nevada; Pyramid Lake Paiute Tribe of the Pyramid Lake Reservation, 
Nevada; Reno-Sparks Indian Colony, Nevada; Shoshone-Bannock Tribes of 
the Fort Hall Reservation; Summit Lake Paiute Tribe; Te-Moak Tribe of 
Western Shoshone Indians of Nevada [Four constituent bands: Battle 
Mountain Band; Elko Band; South Fork Band and Wells Band]; Walker River 
Paiute Tribe of the Walker River Reservation, Nevada; Winnemucca Indian 
Colony; Yerington Paiute Tribe of the Yerington Colony and Campbell 
Ranch, Nevada). Additionally, the DOE reviewed the BLM's Final EIS and 
supporting documentation and related surveys, studies, and 
consultations.
    DOE consulted with USFWS to meet its obligations under section 7 of 
the Endangered Species Act. By letter dated May 1, 2024, the USFWS 
concurred with DOE's determination that the proposed action may affect, 
but is not likely to adversely affect, Lahontan Cutthroat Trout.
    DOE consulted with the NV SHPO and Tribes to meet its obligations 
under section 106 of the National Historic Preservation Act. DOE 
completed an assessment of adverse effects in accordance with 36 CFR 
800.5 with the following determination:
     BLM and the NV SHPO executed a Memorandum of Agreement 
(MOA) that took into account and resolved the adverse effects to 57 
Historic Properties within the APE in November 2020, before DOE was 
involved in the Project. Pursuant to section 106 of the NHPA and 36 CFR 
800.5(b), DOE has determined that its undertaking would not result in 
an adverse effect on the 57 historic properties within the APE that was 
not already resolved or accounted for in the MOA or the associated 
Historic Properties Treatment Plan.
     Going forward, DOE recognizes that BLM is the lead federal 
agency responsible for the post-review discovery process for the two 
unevaluated and potentially eligible properties pursuant to 36 CFR 
800.13, and DOE will continue to support BLM's efforts as lead agency 
in its active engagement in the ongoing post-review discovery process.
     In addition, DOE recognizes that BLM is the lead federal 
agency responsible for the post-review discovery process for any 
additional future resources identified as addressed in the MOA and 
HPTP, and DOE will continue to support BLM's efforts as lead agency in 
its post-review discovery process.
    More information on Section 106 can be found here: www.energy.gov/lpo/eis-0561-thacker-pass-lithium-mine-project-humboldt-county-nevada.
    Final DOE/EIS-0561 Review Period: The Notice of Availability of the 
Final DOE/EIS-0561 and the Adoption Notice were published in the 
Federal Register on September 29, 2023.
    DOE received submittals containing views and information both 
during and after the review period. In total, DOE received 11 
submittals from parties opposed to the project containing views and 
information. DOE reviewed all the views and information for any 
significant new circumstances or information relevant to environmental

[[Page 87354]]

concerns and bearing on the proposed action or its impacts. DOE's 
review focused on whether the views and information identified that the 
Project would affect the quality of the human environment in a 
significant manner or to a significant extent not already considered in 
the Final DOE/EIS-0561 and related environmental review processes. As 
discussed, the views and information did not identify new information 
that showed the Project would affect the quality of the human 
environment in a significant manner or to a significant extent not 
already encompassed by the analysis considered in the Final DOE/EIS-
0561 or in the preparation of this Record of Decision.
    DOE grouped the views and information received into the following 
10 categories: (1) NEPA process (DOE's Record of Decision); (2) DOE's 
due diligence process for the loan (financial and technical viability 
of the project); (3) socioeconomics (viability of lithium batteries; 
lithium and sulfuric acid pricing); (4) safety (radioactive materials); 
(5) historic, cultural, and Tribal resources (Section 106, historic 
properties; Tribal input on federal agency decision making); (6) 
Electricity Use and GHG Emissions; (7) water resources (mining and the 
water table; impacts to springs, groundwater; data assumptions and 
groundwater models); (8) data gathering and monitoring (private land 
access; monitoring and work plans; work outside mine plan boundary) (9) 
air emissions, (10) chemical and waste management (sulfuric acid; clay 
tailings). With the exception of views and information on DOE's NEPA 
process, due diligence process, and socioeconomics, the views and 
information are addressed in the Final DOE/EIS-0561, specifically in 
appendix R (Comment Responses) and in consultations for the project 
(specifically, section 106).
    The views and information received on DOE's NEPA process, DOE's due 
diligence process for the loan, and the socioeconomics (viability of 
lithium batteries; lithium and sulfuric acid pricing) were not 
addressed in the Final DOE/EIS-0561. DOE performs rigorous due 
diligence related to all aspects of a potential loan transaction under 
the ATVM Program. The ATVM Program is administered by the DOE LPO. LPO 
originates, underwrites, and services loans to eligible automotive 
manufacturers and components manufacturers. LPO has reviewed and 
determined that LNC's application is eligible for a potential loan (10 
CFR 611.100, 611.101, and 611.102). The purpose and need for DOE's 
proposed action, the issuance of a Federal loan, is to implement DOE's 
authority under section 136 of the Energy Independence and Security Act 
of 2007, which is to finance projects that reequip, expand, or 
establish manufacturing facilities in the United States to produce 
qualified advanced technology vehicles or qualifying components, and 
also for engineering integration costs associated with such projects. 
(42 U.S.C. 17013, as amended). Before LPO issues the Federal loan, the 
due diligence process includes an analysis on technical, financial, and 
environmental aspects of the project to include completion of DOE's 
NEPA process (BLM EIS adoption, consultations, and Record of Decision), 
the financial and technical viability of the project, and the 
socioeconomics (viability of lithium batteries; lithium and sulfuric 
acid pricing) involved. The company must satisfy certain technical, 
legal, environmental, and financial conditions before the Department 
funds the loan.
    DOE thoroughly reviewed and considered all the views and 
information received during and after the review period and has 
concluded that none of the comments provide new information or identify 
new circumstances that warrant preparation of a supplemental EIS. This 
conclusion is based on the following: (1) the majority of the views and 
information were addressed in the Final DOE/EIS-0561, specifically in 
Appendix R; (2) the additional review conducted by BLM in the June 25, 
2024, approval letter for minor modification to Phase 1 of the Mine 
Plan; (3) review of required permits, approvals, and works plans for 
the project and any associated updates to those permits, approvals, and 
work plans; (4) the consultations, determinations, and coordination 
completed by DOE; and (5) the additional analysis described above that 
were considered in the preparation of this ROD.
    Decision: DOE has decided to issue a loan to LNC, for construction 
and start-up of lithium processing to include a sulfuric acid plant, 
lithium processing facility, and supporting infrastructure and 
facilities in Humboldt County, Nevada. Approval of the loan for the 
Thacker Pass Project responds to the DOE purpose and need pursuant to 
section 136 of the Energy Independence and Security Act of 2007, which 
is to finance projects that reequip, expand, or establish manufacturing 
facilities in the United States to produce qualified advanced 
technology vehicles or qualifying components, and also for engineering 
integration costs associated with such projects. (42 U.S.C. 17013, as 
amended). DOE's Proposed Action evaluated in this ROD supports the 
Phase 1 activities at Thacker Pass analyzed within the Final DOE/EIS-
0561.
    Mitigation: All DOE loan agreements require that the borrower 
comply with all applicable environmental laws and related requirements, 
as well as required approvals and permits. To ensure that the recipient 
complies with the requirements of the loan agreement, the Loan Programs 
Office proactively monitors and administers all operative loan 
transactions. The loan agreement includes a condition requiring that 
LNC must notify DOE if formal or informal environmental notices, 
orders, decisions, directives, or determinations submitted by any 
Governmental Authority or if there are any changes to Required 
Approvals. These mitigation measures are practicable means to avoid or 
minimize environmental harm. A recipient's failure to comply with 
applicable laws, authorizations, and approvals may constitute a 
default, upon which DOE would have the right under the loan agreement 
to exercise usual and customary remedies.

Signing Authority

    This document of the Department of Energy was signed on October 28, 
2024, by Jigar Shah, Director, Loan Programs Office, pursuant to 
delegated authority from the Secretary of Energy. That document with 
the original signature and date is maintained by DOE. For 
administrative purposes only, and in compliance with requirements of 
the Office of the Federal Register, the undersigned DOE Federal 
Register Liaison Officer has been authorized to sign and submit the 
document in electronic format for publication, as an official document 
of the Department of Energy. This administrative process in no way 
alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on October 29, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-25481 Filed 10-31-24; 8:45 am]
BILLING CODE 6450-01-P