The Bureau of Land Management will fast-track renewable energy projects through its lengthy environmental process, a boon to companies with wind, solar, geothermal and transmission projects in the Silver State.
By pushing to complete environmental analyses by year's end, many advance-stage projects could break ground much sooner and put back to work thousands of Nevada construction workers. Companies also would qualify for significant tax breaks in the American Investment and Recovery Act that expire at the end of 2010.
Because of the BLM's fast-tracking plans, SolarReserve of Santa Monica, Calif., could begin construction on its 100-megawatt Crescent Dunes solar facility near Tonopah six months to a year earlier than planned, Chief Executive Officer Kevin Smith says.
The approximately $500 million project is expected to employ more than 450 construction workers and an operating staff of 45 once it's fully operational.
SolarReserve in November signed a 25-year agreement with NV Energy, which will purchase100 percent of the power generated at the facility.
The planned facility is SolarReserve's first project in the U.S.
Patrick Gubbins, branch chief for the BLM's Nevada state office in Reno, says the goal of the fast-tracking process is to expedite completion of the environmental review processes and push through right-of-way grants for solar, wind and transmission projects.
Gubbins says the normal timeline is about 18 months for an environmental impact statement, which is required for all solar, wind and transmission line projects in the state. Geothermal projects require an environmental assessment.
"These are companies that have demonstrated to the BLM that they have made sufficient progress to start a review. It doesn't mean that any corners will be cut," Gubbins says.
In anticipation of the additional workload and to facilitate the fast-track process, the BLM created a network of Renewable Energy Coordination Offices in several western states, including Nevada.
Gubbins says about 20 additional workers have been brought into the Nevada office to help work on the environmental review and public participation processes. With the additional staffing, Gubbins adds, other projects throughout the state that seeks permitting such as mining won't suffer.
"We are not going to slight them in any way with the added workload," he says.
NV Energy's John Berdrow, Reno-based project manager for the proposed One Nevada Transmission Line, says that having the BLM expedite the ON Line could save months of time in paperwork shuffling at the state and federal levels.
By constructing the ON Line, NV Energy for the first time will link transmission services between the northern and southern parts of the state. The 235-mile, 500-kilovolt line will begin at the Robinson Summit Substation in Ely and tie into the grid at the Harry Allen substation at Apex Industrial Park in northern Las Vegas.
"We are fortunate to be one of the fast-track projects picked by the BLM," Berdrow says. "This project is located almost entirely on public lands managed by the BLM, and it allows the project to be elevated in status with the BLM locally and in Washington, D.C. and hopefully process our applications and permits much quicker."
NV Energy expects to break ground on the new Ely substation and transmission line by February 2011. The 22-month job is expected to employ between 300 and 400 construction workers. The line is seen as a vital link to bringing power to the grid from the many renewable energy projects located in remote portions of the state, as well as for sharing power between the north and south.
"Fast-tracking is saving us weeks in everything we have to do," Berdrow says. "The cumulative net effect is that we have a better chance stay on schedule and pick up two or three months in the process."
For geothermal energy developer Ormat Technologies, Inc., the fast-track process will speed construction and transmission permitting requirements for the company's Jersey Valley and McGuinness Hills projects in Lander County. The 15-megawatt Jersey Valley plant is expected to come online by the end of the year, and the 30-watt McGuinness Hills plant shortly afterward.
Combined, Ormat expects to employ 25 people to run the facilities, and as many as 235 during construction.
Paul Thomsen, public policy manager, says that having Ormat's projects listed for fast-tracking places more responsibility on the BLM to quickly process the necessary reporting for renewable energy projects. In addition, Thomsen says, some projects that might have been on the fence economically stand a better chance of getting off the ground and qualifying for federal tax breaks.
"It doesn't reduce any of the accountability or environmental concerns; all it does is put greater scrutiny on the BLM," he says.
