Action Plan for the
Beatty Area, Nye
Renewable Energy Power Park
Developed through the Federal Brownfields Partnership
Mine-Scarred Lands Initiative
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Action Plan for the Beatty Area, Nye County, Nevada
Renewable Energy Power Park
Prepared for: Brownfields Federal Partnership Mine-Scarred Lands Initiative
Prepared by: SRA International
(Contract No. 68-W-01-048)
3434 Washington Boulevard
Arlington, VA 22201
Millennium Energy, LLC
26596 Columbine Glen Avenue
Golden, CO 80401
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Action Plan for the Beatty Area, Nye County, Nevada
Renewable Energy Power Park
Table of Contents
EXECUTIVE SUMMARY 1
OVERVIEW 3
TASK 1: DEVELOP ORGANIZATIONAL STRUCTURE 3
Task 1-A: Identify Local Project Champion 3
Task 1-B: Assessment of Other Interested Parties 3
Task 1-C: Establish Advisory Committee 4
Task 1-D: Designate Subject Area Leads 5
TASK 2: IDENTIFY FUNDING SOURCES 5
TASK 3: IDENTIFY NATURAL RESOURCES 6
TASK 4: FEASIBILITY STUDY 7
Task 4-A: Determine Technical Feasibility: 7
Task 4.A.1: Identify Applicable Renewable Energy Technologies 8
Task 4.A. 2: Analyze Transmission Capacity 8
Task 4.A. 3: Conduct Site-Specific Energy Modeling 8
Task 4-B: Determine Economic Feasibility 9
Task 4.B.1: Conduct Market Assessment 9
Task 4.B.2: Estimate Capital Costs for Each Technology Option 10
Task 4.B.3: Determine Financing Scenarios 10
Task 4.B.4: Determine Key Economic Values 10
Task 4-C: Review Associated Regulations and Determine External Benefits and Impacts 10
Task 4. C. 1: Review Regulatory Energy Requirements/Land Use Requirements 10
Task 4. C.2: Estimate Economic Benefits to the Region 11
Task 4. C.3: Estimate Environmental Benefits of Project. 11
TASK 5: PROJECT DEVELOPMENT 12
Task 5. A: Review and Finalize Key Decision Points Impacting Project Development: 12
Task 5.B: Identify Process for Selecting Project Developers: 13
TaskS.C: Collaborate with Developers to Secure Electricity and/or Green Tag Contracts: 13
Task 5.D: Construct and Operate Project: 14
PROJECT TIMELINE 14
APPENDIX I: PROJECT STAKEHOLDERS 16
APPENDIX II: FUNDING RESOURCES 17
APPENDIX III: REGULATION CONSIDERATIONS ASSOCIATED WITH RENEWABLE ENERGY AND
LAND USE 20
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Action Plan for the Beatty Area, Nye County, Nevada
Renewable Energy Power Park
Executive Summary
Preliminary analysis by public and private sector energy experts indicates that renewable energy
resources are significant in the Beatty area in Nye County, Nevada. This Action Plan for the Beatty
Area Renewable Energy Power Park (power park) provides a process related framework that
identifies key decision points related to the planning and development of renewable energy facilities
on or near the Bullfrog Mining site in Beatty. This framework will allow course-of-action
recommendations to be made based on project assessment and stakeholder feedback. The following
table outlines the general order of activities and decision points, which are described in greater
detail in the remainder of the Action Plan. It is suggested that a feasibility study be conducted by a
neutral party and that development should be considered in two phases: Phase I would be based on
currently available transmission (50-65 MW) and Phase II would upgrade transmission lines to
provide energy from a larger area. The feasibility study tasks for both phases are closely related and
can be analyzed concurrently. It is important to note that this Action Plan provides general guidance
on the process, but that some of the specific activities and decision points may change as the project
proceeds.
Task
Activities
Decision Points lor Advisory
('omniiUcc
1: Develop
Organizational
Structure
Develop a representative group and a
process to coordinate the project, inform
and involve the public, and make
decisions
Develop operating procedures
Decide on entity to conduct the
feasibility study
2: Identify
Funding Sources
Identify funding for stakeholder
engagement and organization activities
($30-35,000) and the feasibility study
($150-200,000)
Prioritize funding options and
decide which to pursue
Determine which member
organizations should apply for
which funding sources
3: Identify
Natural
Resources
Map potential properties for a renewable
energy facility and preliminarily outline
associated ownership and revenue
structures
Prioritize lands to develop for
Phase I and II, without
considering specific
technology options
Outline expected ownership
and revenue structures for
associated properties
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Task
Activities
Decision Points lor Advisory
Committee
4-A: Determine
Technical
Feasibility
Identify applicable renewable energy
technologies
Verify transmission availability
(Phase I) and research costs to
upgrade transmission (Phase II)
Determine maximum capacity and
annual energy production for each
technology at each property
After technical analysis,
prioritize lands to develop and
optimal technologies
Determine whether to continue
with Phase II by analyzing
associated transmission
upgrade costs
4-B: Determine
Economic
Feasibility
Research potential markets and their
estimated ranges for electricity
and/or green tag sales
Conduct economic analysis of each
technology option's capital costs,
financing options, and monetary
valuation
4-C: Review
Associated
Regulations and
Estimate
External Benefits
and Impacts
Research energy and land use
regulations to ensure there are no
compliance issues
Estimate economic benefits and
impacts to the region such as jobs
created, tax revenue/royalties, and
other expected community
investments
Estimate environmental benefits and
impacts such as reductions in air
pollution
Make final decision on whether to
move forward with the project,
and determine optimal properties
and technologies
5: Project
Development
Review key decision points on
properties and optimal technologies,
ownership, partnering, target markets
and structure of the project
Identify processes used to select a
developer
Work with developer to secure green
power and/or green tag contracts
Construct and operate power park
Review and finalize critical
factors
Identify process and select
developer(s)
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Overview
This Action Plan describes the steps associated with developing a renewable energy power park on
or near the Bullfrog Mine site. At the beginning of the process, it is critical to engage all
representative parties and develop a process for making decisions. This can be done efficiently by
organizing an Advisory Committee and identifying Subject Area Leads, each with specific roles and
responsibilities. After funding is obtained, a technical expert should be hired to ensure that
associated technical and economic research is comprehensive. The technical expert will brief the
Advisory Committee on research findings throughout the process, and the Advisory Committee will
be asked to narrow the project focus by prioritizing properties and technologies.
This Action Plan is based on a two-phased approach. Phase I will include research and development
of a production facility using current transmission availability (50-65 MW) and Phase II will
include upgrading transmission lines in order to serve a larger market. Although the research for
both phases can be conducted concurrently, it is expected that development of Phase II will require
a much longer timeframe. The Action Plan includes an overview of activities, key decision points,
responsible entities for leading and supporting individual action items, and a timeline.
Task 1: Develop Organizational Structure
The following key steps establish an organizational structure to coordinate the project, inform and
involve the public, and make decisions.
Task 1-A: Identify Local Project Champion
Identifying a dedicated local project champion is a critical step toward realizing the development of
a power park. It is the local champion who will have ultimate responsibility for building and
maintaining project momentum, for coordinating action and communication between and among
project partners and stakeholders, and for writing funding proposals to secure needed funds to carry
out the project. The local champion should be based in the area where the power park is to be sited,
should be well-respected by project partners and stakeholders, and should have the organizational
capacity, including staffing and other necessary resources, to fulfill its functions. It is suggested that
a full-time position be developed in order to carry out the functions of the local champion. This
position will require more support than resources presently available can provide; additional
staffing and/or consulting or other support may be necessary.
Until additional funding is secured, the Beatty Economic Development Corporation (BEDC) will
serve as the local project champion on a volunteer basis and the Nye County Departments of
Natural Resources and Economic Development will provide support with grant writing and other
activities. Building on the success of engaging a broad group of project stakeholders (e.g., the
Department of Energy (DOE) and Nevada Energy Office), a stakeholder involvement expert could
help organize interested parties and assist them in developing operating procedures.
Task 1-B: Assessment of Other Interested Parties
Building on stakeholders already identified, the local champion will serve as a process
chairperson/convener and identify other parties interested in participating in this process and those
with issues or concerns that will need to be addressed. Parties that have already been engaged or
expressed interest in the project are listed in Appendix I.
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The chairperson/convener will also identify the extent to which particular stakeholders want to be
involved (e.g., involved in specific decisions or just informed on project status; involvement in
specific activities such as proposal writing). The chairperson/convener will determine if there are
existing organizational structures through which to evaluate specific questions or issues, or whether
new structures need to be created. These activities will help define membership of the project
Advisory Committee and identification of Subject Area Leads.
Task 1-C: Establish Advisory Committee
An Advisory Committee will need to be established consisting of parties listed in Appendix I and
others identified through stakeholder identification. These stakeholders should have the ability to
influence decisions within the organizations they represent. The Advisory Committee's charge will
be to identify: barriers and issues, and a framework for addressing them; key short-term (e.g.,
funding, selecting technical expert) and long-term decisions (e.g., selecting a developer for the
project); who should be involved in specific decisions; and a general timeline for making decisions.
The Advisory Committee will also develop operational protocols and agreed-upon procedures for
decision-making, recognizing that individual land owners have the ultimate authority for decisions
concerning their land. Unless the assessment of other interested parties indicates otherwise,
consensus methods are suggested, meaning that everyone on the Committee must affirmatively
concur with a decision or at least not object to it. If consensus is not appropriate, the Committee
may use super-majority (2/3 or 3/4) to represent the decision of the group.
Some important decisions/actions that the Advisory Committee will need to make include:
Deciding which funding sources to pursue for the feasibility study
Selecting a technical expert(s) to conduct the feasibility study
Identifying land parcels to be considered as part of the feasibility study
Outlining expected ownership and revenue structures
Working with the technical expert(s) to define the parameters for the technical feasibility
study
Reviewing the results of the technical feasibility study and, in coordination with the
technical expert(s), establishing assumptions and likely scenarios to guide the economic
feasibility study
Making a "go or no go" decision on the project after reviewing all components of the
feasibility study
Developing a Request for Proposal (RFP) and reviewing proposals to select a developer
If it is impossible to include key stakeholders on the Advisory Board, the Advisory Board should
determine the appropriate time to present project status updates. For example, Nellis representatives
should be provided with an overview of the process and then engaged in full discussions once
development options (e.g., placement of wind turbines) are identified through the feasibility study.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Task 1-D: Desienate Subject Area Leads
Once constituted, the Advisory Committee will identify and task specific Subject Area Leads to
move the project forward. These may be organized in various ways (e.g., around specific renewable
energy options - solar, wind, geothermal; specific components of the feasibility study; issues and
challenges associated with specific parcels of land; increasing transmission capacity). The Advisory
Committee should establish clear guidelines concerning the authority of Subject Area Leads and
how and when the Subject Area Leads should present or elevate issues to the Advisory Committee.
Subject Area Leads may be established to address the following issues.
Outreach: Establish mechanisms to conduct outreach and involvement activities for affected
communities. These might involve using regularly scheduled meetings to keep affected
communities informed, developing outreach materials for specific stakeholders, or
establishing other appropriate methods for providing information and receiving input. As
part of the education and outreach efforts, it would be important to develop an identity for
the project that captures its purposes and uniqueness. A first step in developing this identity
is determining a marketable and unique name for the project - for example, the Beatty
Renewable Energy Enterprise Zone (BREEZ).
Funding: Identify funding sources for the feasibility study and follow-on activities.
Reviewing Project Proposals: Develop the RFP and review submissions from interested
developers.
It is important to note that membership of the Advisory Committee and Subject Area Leads may
change over time as the project becomes more defined and new issues emerge.
Decision Points lor Advisory ( oniniilloc:
l)e\elop operating procedures
Decide 011 enlily lo conduct feasibility study
Task 2: Identify Funding Sources
After the organizational structure is initially developed, the focus needs to be on obtaining funding
resources. Applying for funding and performing associated reporting will be a time-intensive
activity, therefore, adequate staff time should be provided for the local project champion.
Consultant assistance could also be used to assist with these activities or a Funding Group could be
established. It is estimated that a feasibility study will cost approximately $150,000-$200,000, and
$30,000-35,000 in seed money would be beneficial at the beginning of the process to support
stakeholder engagement and organization activities. It is unlikely that one resource will fund the
entire process and feasibility study, so it will be necessary to secure a number of funding sources.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Considerations to keep in mind when researching funding:
State and federal political representatives should continue to be engaged as they may be able
to allocate earmarked funds.
Some partners may be willing to provide support through in-kind services. For example,
energy laboratories like the National Renewable Energy Laboratory (NREL) and the Idaho
National Laboratory (INL) have shown interest in supporting the project with technical
research.
County governments are generally eligible for most funding sources, but there are some
funding opportunities that can only be provided to nonprofit organizations. A process should
be set up so that the BEDC or another similar entity can manage the funding.
Stakeholders may consider developing a Memorandum of Agreement (MO A) among
organizations that obtain funding to describe the specific tasks that will be associated with
specific funding sources.
Potential funding sources are listed in Appendix II, with more detailed information on those
programs that are most suited to this project. These additional sources include: The Energy
Foundation, Nevada Energy Earmark Funds, Department of Energy State Energy Programs, the
U.S. Department of Agriculture Farm Bill and Rural Business and Opportunity Grants, and Clean
Renewable Energy Bonds available through the 2005 Energy Policy Act.
Decision Points lor Advisory ( oniniilloc:
Prioritize funding options and decide which lo pursue
Determine which entities should apply lor which funding sources
Task 3: Identify Natural Resources
The community needs to identify potential land and infrastructure resources for the power park and
preliminarily outline associated ownership and revenue structures to ensure the feasibility is
effective. The following stakeholders may be able to provide land resources for the power park.
Their interest should be confirmed at the beginning of the process as land considerations are critical
in defining the scope of the feasibility study. To ensure their engagement, the following
considerations need to be addressed:
Beatty Economic Development Corporation (BEDC): BEDC owns 81 acres of former
Barrick Gold land that does not include electricity and water infrastructure, but does include
former administrative buildings. The community is eager to utilize these properties as it is
currently paying taxes on idle land. BEDC and Nye County should explore tax forgiveness
options since the renewable energy project is a county priority that has the potential to bring
economic and revenue benefits that are greater than the short-term benefits of transferring
land to any immediate user.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Bureau of Land Management (BLM): There are approximately 10,000 acres of BLM
property in the surrounding area that could potentially be utilized. Placing wind and solar
facilities on public land is allowable but must comply with BLM requirements. A Beatty
Master Plan should be developed so that BLM will take into account the community's plans
when it develops its Resource Management Plan, which outlines lands for conveyance.
Barrick Gold: Barrick owns property in the area, although it needs to be clarified how much
property they own and where it is located.
Nye County: There may be non-public lands outside of the Beatty limits that might be
suitable for renewable energy production.
The ownership and revenue structure of the project has a direct effect on the financing components
of the feasibility study's economic analysis. It is therefore critical that these issues be discussed at
the beginning of the process. For example, will BEDC get financing and be the owner of the
project, or will it lease the property to a renewable energy developer who will pay land lease fees
and taxes or royalties on power production? Infrastructure needs (e.g., water power) may be
required depending on the technology option pursued. It is therefore helpful if available
infrastructure is outlined at the beginning of the process.
Decision Points lor Advisory ( oniniilloc:
Prioritize lands lo dc\clop lor Phase I and Phase II. without considering specific
technology options
Outline expected ownership and ic\cnuc structures lor associated properties.
Task 4: Feasibility Study
The development of a comprehensive feasibility study will be a key milestone in the project
development process. This study will detail the technical potential of all renewable energy options
under consideration, the economics of individual technologies based on various scenarios of market
prices for renewable energy and/or "green tags," the viability of power sales based upon available
transmission capacity, permitting requirements, and the estimated economic and environmental
benefits accruing to the region from the development of the project. A study of this complexity and
magnitude is preliminarily estimated to cost $150,000-$200,000. While various entities may be
involved in development of the feasibility study, due to funding criteria and individual expertise
with specific technologies, it is recommended that the study be developed under the guidance of a
single project manager to ensure consistency of evaluation methods and allow for an "apples to
apples" comparison among potential technology applications. The following list of tasks highlights
the specific activities involved with a feasibility study.
Task 4-A: Determine Technical Feasibility:
The goals of the technical feasibility study are to determine the potential scale of the power park
(both Phases I and II) based on transmission and land availability, and to focus on specific
technology options by researching potential capacity and annual energy output. The associated steps
are listed below.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Task 4.A.1: Identify Applicable Renewable Energy Technologies
The first step in the development of the feasibility study will be to identify all applicable renewable
energy technologies and applications appropriate to the site. These technologies may include solar,
wind, geothermal, and biomass power generation technologies. Specific applications may include
concentrating solar power, photovoltaics, wind turbines, geothermal binary power generation,
geothermal direct use (thermal energy for greenhouses), and biomass combustion technologies.
Parallel research will identify potential operational and/or maintenance issues associated with
individual technology options in a desert environment.
Task 4.A. 2: Analyze Transmission Capacity
A critical and potentially limiting factor to the size of the overall project is the availability of
transmission capacity. There are two types of transmission: firm transmission is always guaranteed
to the purchaser, while non-firm transmission capacity is based upon availability and is not
guaranteed for long periods of time. Preliminary estimates indicate that approximately 50-65MW of
firm capacity is available on Valley Electric Cooperative's adjacent transmission line. Additional
investigations should be conducted to verify the availability and costs of firm power transmission,
as well as the availability and costs of non-firm transmission. It is recommended that a feasibility
study incorporate the concept of a two-phased project. Phase I would be limited to renewable
energy development that maximizes the use of available transmission capacity (i.e., -50-65 MW),
while Phase II would examine the development of renewable energy technologies based upon
available land and incorporating the costs of upgrading the transmission line to carry additional
capacity.
Task 4.A. 3: Conduct Site-Specific Energy Modeling
Once the Phase I and Phase II project capacity sizes are determined, then detailed, site specific
energy modeling should be conducted to determine maximum capacity (kW) and annual energy
production (kWh) for each option based upon the availability of land and transmission capacity. To
maximize the accuracy of the technical assessments, it will be critical that the resource data be
derived from the most local data sources available. Examples of data collection resources for each
technology include:
Solar: Typical Meteorological Year (TMY) II data is available for local solar insolation
levels on an hourly basis.
Wind: Data may be available from the feasibility study completed for the proposed wind
project at the Nevada Test Site - or alternatively, Nye County may be able to obtain a wind
anemometer on loan via Valley Electric Cooperative or the Nevada State Office of Energy
in an effort to collect more site specific data over a one-year period.
Geothermal: Depth and temperature of the geothermal resource should be verified to the
extent possible from existing data sources (e.g., U.S. Geological Society).
Biomass: Data will need to be identified and collected to determine the availability, energy
content, and quantity of local biomass resources.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Decision Point for Advisory ( oininiUec:
Re\iew lhe results of ilie technical leasihilil\ study ancl. in coorcliiicilion with the
technical expert! s). estii hlisli assn nipt ions and likely scenarios to guide the
economic feasibility study This will include an initial prii>rit izat ion of properties
and technologies 011 which to locus
Determine whether to continue with Phase II l\\ analyzing associated
transmission upgrade costs
Task 4-B: Determine Economic Feasibility
Analysis of economic feasibility will help narrow the selection and development of renewable
technologies that were identified in the technical feasibility study for both Phases I and II. A variety
of factors need to be considered, as described below.
Task 4.B.1: Conduct Market Assessment
Revenues could be made by selling three types of products: green power, "brown or neutral power"
and "green tags." Green power is the renewable energy that utilities buy to add more renewable
resources to the grid, thereby decreasing the need for non-renewable resources such as coal.
Utilities are, in many cases, required to do so to meet Renewable Portfolio Standards (RPS). Green
power can be separated in the economic market into brown or neutral power and green tags. Brown
power is electricity stripped of its renewable attributes; and green tags are credits, based on
environmental benefits such as emission reductions, that can be sold to utilities or individual
customers in place of green power to either meet RPS requirements, voluntary greenhouse gas
requirements, or other environmental objectives. No actual electricity is associated with green tags,
only the environmental attributes of the renewable power.
Scenarios will be developed that specify a range of energy and/or green tag sales for each market
option identified below, thereby illustrating the impacts of various price scenarios on overall project
economics. The markets that the Beatty renewable energy project may be able to successfully
penetrate include, but may not be limited to:
Nevada Renewable Portfolio Standard (RPS): The Nevada RPS has a competitive process
every two years to identify projects to meet the stated goals of a 20% renewable energy
component of its overall energy mix by 2015. Within the Nevada RPS is also a solar set-
aside of 5% of the 20% total requirement. The market assessment will look at the historical
prices that similar projects have obtained to estimate future prices that would be attributable
to the Beatty project for sales of green power and/or green tags into the Nevada RPS.
California RPS: California is having significant difficulty in meeting its RPS goals, and is
looking to projects in neighboring states to supply its renewable energy needs. Similar to the
Nevada RPS, historical prices in the California RPS market should be reviewed to determine
potential future prices for green power and/or green tags applicable to the Beatty project.
Voluntary Compliance Market for Green Tags: While green tag prices in the voluntary
market are at all-time lows for wind power, a substantial premium exists for solar-based
green tags sales. When reviewing green tags sales into either the RPS or voluntary markets,
the sale of brown power also needs to be explored to determine potential customers and the
sales price of energy into the grid.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Private Markets for Green Tags and/or Environmental Credits: Another option is to sell
brown power into the grid and then sell the green tags or the equivalent pollution credits to
Barrick Gold, which has indicated that it may need the credits to meet environmental
obligations at other facilities.
Task 4.B.2: Estimate Capital Costs for Each Technology Option
Fully installed capital cost estimates will be developed for each technology option based upon its
capacity rating (which will be determined based upon transmission and land availability). These
turn-key installed costs would incorporate costs associated with engineering design, generation
equipment and system components, construction, commissioning, and interconnection to the grid.
Task 4.B.3: Determine Financing Scenarios
Scenarios that may be utilized to finance the project will be determined, including, but not limited
to: floating a government bond, obtaining third party financing, or leaving financing of projects to
developers. As financing scenarios are identified, financing periods and interest rates should be
documented.
Task 4.B.4: Determine Key Economic Values
The final step in the economic analyses of technology options will be to determine their economic
characteristics based upon the market price scenarios for power and/or green tags generated at the
site, turn-key capital costs, and all available incentives (e.g., production tax credits, investment tax
credits, and accelerated depreciation). Based upon these variables, standard economic analyses will
be conducted to determine key economic values, including:
Return on Investment
Net Present Value
Generation Cost
Benefit-Cost Ratio
Payback Period
Annual Finance Payment (if applicable)
Task 4-C: Review Associated Reeulations and Determine External Benefits and Impacts
After the technical and economic data is gathered for specific technologies and properties, a final
step is to anticipate project benefits to the regional economy and environment, and ensure there will
be no compliance issues. This information is often helpful in making the final determination about
whether or not to develop the power park. Specific information that may be collected is described
below.
Task 4.C.1: Review Regulatory Energy Requirements/Land Use Requirements
Regulations associated with land use and renewable energy requirements will need to be considered
to ensure there are no compliance issues. The most important considerations are listed below, and
additional information is included in Appendix III.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
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Land:
BLM Land Lease: Placing wind and solar facilities on public land is allowable but must
comply with BLM leasing requirements.
FAA Requirements: Aviation regulations need to be considered as renewable energy
facilities potentially could affect Department of Defense (DOD) flight patterns associated
with Nellis Air Force Base.
Energy:
BLM Transmission: An approval by BLM will be required for transmission facilities across
BLM land.
State Energy Permitting: The Nevada State Office of Energy should be contacted for
information on permitting at the state level.
Task 4. C.2: Estimate Economic Benefits to the Region
This component of the feasibility study would estimate and document economic benefits to the
region. These benefits include, but may not be limited to:
Number of local jobs created during both the construction and operations phases of the
project (for both Phase I and II of the project).
Tax dollars/royalties accruing to city and county governments via any taxes/royalties on
power and/or green tag sales, purchased equipment, or any other taxable items.
Revenues to Nye County associated with land lease payments from project developers
and/or owners.
Economic multiplier effects of new jobs and investment (e.g., new housing construction,
sale of goods).
Task 4. C.3: Estimate Environmental Benefits of Project
A final element of the feasibility study is to quantify the estimated environmental benefits of the
power park. These benefits include, but may not be limited to:
Reductions in air emissions (e.g., S02, C02, NOx, PM10) resulting from the renewable
energy generation offsetting conventional power generation in the state's energy mix. This
can be accomplished through taking the potential energy generation amounts from Phase I
and II and determining what the equivalent emission levels are for the same quantity of
energy generated by the existing mix of resources in the state. The mix of electricity
resources for Nevada, and its resulting air emissions are contained in the Environmental
Protection Agency's (EPA) E-GRID database - which is available free of charge.
Impacts on land use from converting a brownfield site to a productive, environmentally
benign renewable power production facility.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
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Decision Points lor Advisory ( oniniilloc:
Iiasccl mi ilie results of llie Iciisihilil\ study. determine if llie power park should
proceed Items to consider in determining the "uo or 110 uo" decision include the
technical feasibility of the renewable energy applications analyzed, the ability to
capture identified market segments (electricity and or green tag sales and or
markets lor ucolhermal a<.|iiaciillurc greenhouse projects), the associated risk of
nuninu these projects forward, and the aggregated economic benefits accruing
to the region
If the project concept is determined to be feasible and a decision made to nunc
forward, define the specific properties, technologies to be included in the
project, and the preferred mi\ of solar, wind, and or ucolhermal resources to be
de\ eloped
Xole: I'base / am! 11 scenarios may he ihsciisseil separately
Task 5: Project Development
After the decision is made to move forward with the power park, a number of critical decisions
discussed during the feasibility study need to be reviewed and finalized. A selection process will be
outlined and a developer selected, after which the process of construction and operation will be
initiated. The steps associated with the project development stage are listed below.
Task 5.A: Review and Finalize Key Decision Points Imvactine Project Development:
A number of key decisions will determine the final structure of the power park, and many of these
decisions points will have been made in conjunction with the development of the feasibility study.
However, prior to proceeding with project implementation, it will be critical to review those
decisions and finalize them. Key decision points to be made at this point in the process include:
The ownership and revenue structure of the project: Will the land owner(s) (e.g., BEDC,
Barrick Gold, Nye County) own the project, or will a third party (e.g., developer(s)) own
their own project and pay land lease fees and taxes or royalties on power production? This is
perhaps the most critical decision point of the project as the financing options need to be
finalized (i.e., third party or floating a bond) and the structure of the revenue streams to the
county determined.
The identity of the partners involved in the project: Which partners want to have a financial
stake in the project? Potential partners may include, but may not be limited to, renewable
energy developers, electric utilities (Nevada or California), Barrick Gold, third party
investors, bondholders, and Las Vegas food companies or casinos (for aquaculture/
greenhouse facilities).
Target markets: The target markets for the output of renewable energy applications slated
for development need to be finalized and a plan developed for securing those markets.
Potential markets are described in task 4.B.I.
Additional Decision Points: Additional issues and decision points will likely arise during
the course of the project and need to be addressed as appropriate.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
12
December 16, 2005
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Task 5.B: Identify Process for Selectine Project Developers:
Once the project structure has been finalized and is ready to proceed to development, the Advisory
Committee should determine how the project developers will be selected. Options include sole
sourcing to one developer who will be responsible for the overall project (and possibly working
with second tier developers with expertise in wind, solar and/or geothermal projects) or issuing a
competitive RFP to identify and select individual developers for each renewable energy technology
component. This second option will require development of an RFP document containing:
Project overview
Description of the target markets
Technical specifications and sizes of desired renewable energy technologies (which will be
detailed in the feasibility study) and electricity grid interconnection requirements
Financial characteristics of the project, including potential revenue streams to the developer
and the required revenue streams to the county (i.e., land leases and/or royalty payments)
Selection process for securing developers (i.e., qualifications, financial stability of
developer, and cost considerations)
Decision Points lor Advisory ( oniniilloc:
Re\ie\\ and finalize critical factors
Identify process and select de\eloper(s)
Task 5. C: Collaborate with Developers to Secure Electricity and/or Green Tae Contracts:
The final step prior to construction and operation of the power park is to secure contracts for the
sale of electricity and/or green tags and/or aquaculture/greenhouse products. This should be done in
cooperation with the developers, particularly if they are financing/owning individual projects.
Construction and operation will not be able to proceed until contracts are secured, as this provides
the trigger for obtaining third party financing. Key attributes of the contracts include:
Term of contract - 20 years is preferable for electricity/green tags contracts, while 10 years
is typically the minimum threshold for financing
Price of electricity/green tag sales and annual price escalation rates
Initial delivery date of electricity/green tags to the customer. This date will determine when
the project(s) need to be operational
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
13
December 16, 2005
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Task 5.D: Construct and Operate Project:
The final step in the development of the power park is to construct and operate the energy facilities.
Once developers have been selected, contracts secured, financing obtained, and all permitting
requirements met, then the land owner(s) should work with developers to ensure timely construction
of the project per the contractual timelines. A project development schedule should be established
with key milestones and delivery dates specified. Key milestones include:
Filing and gaining approval of all required energy and land use permits
"Hand-off Meeting with developers to finalize working relationships and expectations
Final project design (system design, electrical design)
Filing of interconnection application and agreement
Procurement of materials (order and deliver materials)
Construction
- Site preparation (grading, system layout, excavation/drilling, setting piers, as
appropriate,)
- Install renewable energy system components
Electrical installation
- Trenching for electrical conduit and grounding
- Electrical equipment pad installation
- Wiring
- Electrical equipment installation (inverters/transformers) and connection to renewable
energy generation system
- Communications equipment installation (remote monitoring)
Project commissioning
- System acceptance testing
- Interconnect to grid
Operations and maintenance
- Operate system to meet generation requirements and perform necessary maintenance
tasks on routine basis
It should be noted that the steps in this project development section are provided as initial guidance
for the power park, and as such may be subject to change during the course of the project evaluation
stages, as well as when key decisions are made, or as market conditions warrant.
Project Timeline
The attached timeline provides a schedule of activities associated with this Action Plan for a three-
year period and includes specific decision points for the Advisory Committee and expected
deliverables. This timeline serves as a general framework and may change as the project proceeds.
The project construction in this timeline covers Phase I; the timeline for Phase II will likely be more
time-consuming.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
14
December 16, 2005
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Beatty Area, Nye County, Nevada - Renewable Energy Power Park Timeline
Month
Tasks
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
Jan-07
Feb-07
Mar-07
Apr-07
May-07
Jun-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Dec-08
1.A: Identify/ Confirm
Local Champion
w
1.B: Assessment of Other
Interested Parties
~
1.C: Establish Advisory
Committee
k-
ฉ
@ฉ
ฉ
ฉ
ฎ@
@ฉ
o
(Dฉ
V
1.D: Designate Subject
Area Leads
k-
V
2.A: Identify Funding
Sources
k-
V
2.B: Secure Funding
Sources
f
3: Identify Natural
Resources
k-
V
4.A.1: Identify Applicable
Renewable Energy
Technologies
-*ฆ
4.A.2: Analyze
Transmission Capacity
Phase I
k
Phase ir
4.A.3: Conduct Site-
Specific Energy Modeling
4.B.1: Conduct Market
Assessment
k-
V
4.B.2: Estimate Capital
Costs for Each
Technology Option
V
4.B.3: Determine
Financing Scenarios
Task4.B.4: Determine
Key Economic Values
k-
f
Task 4-C: Review
Associated Regulations
and Determine External
Benefits and Impacts
k.
V
Task 5.A: Review and
Finalize Key Decision
Points Impacting Project
Development:
k-
V
Task 5.B: Identify Process
for Selecting Project
Developers:
k-
V
Task 5.C: Collaborate with
Developers to Secure
Electricity and/or Green
Tag Contracts:
k-
f
Task 5.D: Construct and
Operate Project:
k-
V
*Note This timeline serves only as a general framework.
Decision Points for the Advisory Board:
ฎ Develop Advisory Committee operating procedures
ฉ Outline expected ownership and
ฉ Determine whether to continue with
ฉ
If it is decided to move forward, define the
ฉ Decide on an entity to conduct the feasibility study
revenue structures for associate properties
Phase II by analyzing associated
specific properties and technologies
ฉ Prioritize funding sources to pursue and determine
transmission upgrade costs
Review and finalize critical factors
which entities will apply for which funding sources
ฉ Establish assumptions and likely
ฉ Make a "go or no go" decision on
ฉ
Identify process for selecting developer(s)
ฉ Priortize lands to develop for Phase I and II, without
scenarios to guide the economic feasibility
whether to move forward with the power
O
Select developer(s)
considering specific technology options
study
park
Expected Deliverables:
Jan 31, 2006- Technical Feasibility Report
Feb 28, 2006- Economic Feasibility Report
Feb 28, 2006- Final Report Documenting Task 4A-C
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Appendix I: Project Stakeholders
Beatty Economic Development Corporation
Beatty and Amargosa Town Advisory Boards
Nye County Board of County Commissioners
Nye County Department of Natural Resources
Nye County Economic Development Department
Nevada Energy Office
Nevada Commission on Economic Development
Nevada Division of Environmental Protection
Desert Research Institute
Idaho National Laboratory
National Renewable Energy Laboratory
Sandia National Laboratories
University of Nevada-Reno
University of Nevada-Las Vegas
Valley Electric Association
Nevada Power/Sierra Pacific Power
Barrick Gold
U.S. Bureau of Land Management
U.S. Department of Defense, Nellis Air Force Base representatives
U.S. Department of Energy
U.S. Department of the Interior, Death Valley National Park representatives
U.S. Environmental Protection Agency
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
16
December 16, 2005
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Appendix II: Funding Resources
The following information lists funding resources available and associated guidance and contact
information.
Key Funding Sources
The F.nergv Foundation
The Energy Foundation supports the pursuance of alternative sources of power through
the development of renewable energy policies. The Foundation may be able to provide
seed money to help with the startup of the Advisory Committee and researching
additional funding opportunities and policies.
Web site: http://www.ef.org
Contact: (415) 561-6700
Application: Applications
are accepted on a
continuous basis. Grants are
awarded to 501(c)(3)
organizations. More
information is listed on the
Web site.
Nevada F.nergv Farmark Funds
The Nevada Energy Earmark Funds are designated through the state legislature each
year. Funding could be pursued to help fund the feasibility study.
Web site: N/A
Contact:
Mary Jane Hale
NREL
(303) 384-7453
maryjane hale@nrel.gov
Application: There is no
formal application. This
funding is provided through
state government funds.
Department ol' Fnergy State F.nergv Program (SKI')
The DOE State Energy Program (SEP) provides funding to support the work of
Nevada's state energy office to provide direction and set priorities for the state's energy
future. Funding could be pursued to help fund the feasibility study.
Web site: Contact: Application: Please
http://www.eere.energy.gov/ Nevada State Office of contact the Nevada State
state_energy_program Energy Office of Energy for
(775) 687-9700 further information on
funding availability.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
17
December 16, 2005
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l .S. I)c|);irซiiioiil of Agriculture (I SI)A)l-';inn Bill
The USD A awards competitive grants to purchase renewable energy systems and make
energy efficiency improvements for agricultural producers and rural small businesses.
The Rural Business Enterprise and Opportunity Grant is a specific funding source that
may be appropriate. Funding could be pursued to help fund the feasibility study.
Web site:
http://www.rurdev.usda.gov/rbs/fa
rmbill
Contact:
Rural Development Office,
Nevada
(775) 738-8468
Application: Please
contact the Rural
Development Office for
more information.
2005 Kne.rgy. Policy Ad Clean Renewable r.nergy Bonds
The 2005 Energy Policy Act includes a program which allows rural electric
cooperatives, municipal power authorities, and other governmental units to issue "no-
interest" bonds for renewable energy projects. Purchasers of these bonds receive federal
tax credits in lieu of interest payments.
Additional Funding Sources
Resource
Overview
Contact InToi'malion
Renewable
Energy
Incentives in
Nevada
A variety of state specific resources are
listed.
http://energy. state.nv.us/renewable/i
ncentives.htm
(775) 687-9700
U.S.
Department of
Energy
Direct use geothermal applications may be
available.
Curtis Framel
DOE
(206)553-7841
RNK Capital
LLC
RNK Capital LLC aims to invest $25 million
in the U.S. renewable energy and energy
efficiency market and is inviting interested
parties to submit an Expression of Interest.
As an active participant in the markets for
emissions trading and renewable energy
credits, RNK Capital will consider either
buying the credits or allowances generated
by the projects or providing debt financing
for the projects. The company did not set a
specific due date for responses.
http: //rfp. rnkcapital .com/
U.S, Economic
Development
Administration
(EDA)
Planning funds to perform Comprehensive
Economic Development Strategies (CEDS)
for communities are usually awarded
(approximately $50,000). Infrastructure
grants are also available.
http ://www. eda. gov
(206) 220-7660
U.S. Housing
and Urban
Development
(HUD)
The Brownfields Economic Development
Initiative (BEDI) and Economic
Development Initiative provide grants and
loans for property redevelopment.
http://www.hud.gov
(415) 489-6524
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
18
December 16, 2005
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Resource
Overview
ConliK'l 1 ii l(>rin:il ion
\e\ ada Rural
Development
Council
The \e\ ada Rural De\ elopmenl Council
(NRDC) may be able to provide support with
organizational and collaborative aspects of
the project.
littp... w w w ,ne\ rdc.org
(775) 887-2553
Nevada
Commission on
Economic
Development
The Nevada Commission on Economic
Development provides matching grant
funding that can be used for planning and
marketing. The organization also provides
information on renewable energy
opportunities in Nevada
http ://www. expand2nevada. com
(702) 486-2700
New Markets
Tax Credits
The New Markets Tax Credit (NMTC)
Program provides an allocation of tax credits
to community development entities (CDEs)
which enable them to attract investment from
the private-sector and reinvest these amounts
in communities.
http://www.cdfifund.gov
(202) 622-6355
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
19
December 16, 2005
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Appendix III: Regulation Considerations Associated with
Renewable Energy and Land Use
Energy Requirements:
Federal Energy Regulatory Commission (FERC): FERC requires public utilities to
provide nondiscriminatory, open-access transmission service in order to remedy undue
discrimination or preference in accessing transmission systems. This applies to all public
utilities that own, control, or operate facilities for transmitting electric energy in interstate
commerce.
Western Area Power Administration (WAP A): If the WAPA is either a developer or
customer of the power, it may be involved in the approval process.
BLM: Approval by BLM is required for transmission facilities across BLM land.
Land Requirements:
National Environmental Policy Act (NEPA): An Environmental Assessment (EA) or
Environmental Impact Statement (EIS) may be required under the NEPA. Specifically, the
requirement for an EIS may be triggered by the use of federal funding, the use of federal
land for transmission, or the need for federal permits. BLM did conduct a programmatic EIS
on wind energy development, which may simplify NEPA requirements. Additional
information is provided at: http://www.epa.gov/compliance/resources/faqs/nepa/
Federal Aviation Administration (FAA): If the structure (e.g., wind turbine) exceeds 200
feet, an FAA permit may be required. Additional information is provided at:
http://forms.faa.gov/forms/faa7460-l.pdf
National Pollutant Discharge Elimination System (NPDES) permit: An EPANPDES
permit may be required to ensure that any point sources that may discharge pollutants into
waters are regulated. Additional information is provided at:
http://cfpub.epa.gov/npdes/statestats.cfm
Considerations Related to BLM Lands
Placing wind and solar facilities on public land is allowable but must comply with BLM
requirements.
Lands targeted for energy development may have additional considerations if they have old
mining claims on them.
Considerations Related to Other Lands
State Permitting: The Nevada State Office of Energy should be contacted for information
on citing permitting at the state level. See http://energy.state.nv.us/default.htm
Local Zoning: The facility is subject to local land use controls, as with any proposed
development. If current zoning at the proposed site does not permit power generation, the
site may need to be rezoned. If permitted under current zoning, public hearings and approval
by the local governing body may be required.
Property Institutional Controls: It will be necessary to ensure that properties Barrick
Gold has transferred to BEDC do not have any land use control or engineering restrictions.
It is believed that current restrictions are only for the retention pond which will not be
transferred or reused.
Action Plan for the Beatty Area, Nye County, Nevada Renewable Energy Power Park
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative
20
December 16, 2005
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