Solar Generation In Indian Country: A Case Study

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1 Solar Generation In Indian Country: A Case Study

2 Solar Building Blocks-Tribal Lands Abundant Sunlight Access to Transmission Business Site Lease: 25 U.S.C. 415 Rights-of-Way Power Purchase Agreement Water

3 Support for Energy Project Development in Indian Country Energy Policy Act of 2005 Creates DOE Office of Indian Energy Policy Guarantee (up to 90%) for loans to tribes for energy development Federal preference for purchasing energy (electricity, other energy sources) from qualifying tribal entities. Recent favorable IRS Ruling on Renewable Energy Tax Credits for Tribes

4 DOE Office of Indian Energy Website: Tracey A. LeBeau, Director, Office of Indian Energy (202) Pilar Thomas, Deputy Director (202)

5 Native American Lands Business Site Leasing 2013 Changes to BIA Business Site Leasing regulations clarify issues: 25 CFR pt. 162 Separate and simplified process for business and renewable energy development, Specific wind and solar leasing regulations Clarify authority for assignments and mortgages Increased flexibility in compensation and land valuations, and Eliminates requirement that BIA approve permits for some types of short-term activities.

6 Case Study: K Road Power Moapa Band of Paiute Indian Tribe Story Disclosure: Modrall Sperling represented K Road Power on this Project

7 Project Location: 25 miles north of Las Vegas, NV (up I-15)

8 K Road Moapa Solar Generating Facility: Project Facts Project impact area is approximately 2,153 Acres on Moapa River Indian Reservation 30 miles north of Las Vegas Requires 5.5 miles of Power Transmission Lines to tie into the Electric Grid at Crystal Substation Requires a 1.0 mile water pipeline to supply operational water from an existing well Will generate up to 350 MW of clean, renewable electricity Will help utilities in the region meet renewable energy goals Will provide infrastructure via a 12kV transmission line to the Tribe-owned travel plaza on Interstate 15 for access to the electric grid and renewable energy

9 Technology: Photovoltaic (PV)

10 K Road Moapa Solar Generating Facility: Project Facts (Cont.) Up to 50 year lease under 25 U.S.C. Section 415 Two BLM right-of-way grants for transmission line and access road Three phases of development: Infrastructure and the first 150 MW Second 100 MW Third 100 MW

11 Contracting for Certainty Agreements in final stages (BIA approval expected summer 2013) General concepts: Predictable tax and regulation Ability to transfer interest Ability to finance via encumbrance on project

12 Waiver of Regulations Waiver of regulations to allow, under narrowly tailored circumstances: Assignment Encumbrance Without further BIA approval

13 NEPA Compliance: EIS Timetable

14 Endangered Species Considerations: Desert Tortoise Gopherus agassizii

15 Desert Tortoise Management Considerations Unlawful to touch, harm, harass or collect a wild Desert Tortoise without a Permit from the US Fish and Wildlife Service (USFWS) The BIA and Tribe are consulting with the USFWS to limit impacts to the Desert Tortoise Desert Tortoise on-site will be relocated to a suitable area within the Reservation to prevent impacts; approximately 6,000 acres have been set aside by the Tribe for this purpose.

16 Cultural Resources Management Issues: None!!! NHPA Section 106 Consultation found no impacts will occur to Cultural or Historical Resources Nevada SHPO concurred (no THPO involvement)

17 Clean Water Act Section 404: Waters of the United States Permit requirement triggered due to access road upgrades cross jurisdictional waters On site drainages were determined nonjurisdictional

18 Other Resources Considerations Short-term Impacts: Air Quality will have short term impacts during construction via equipment and vehicle emissions and fugitive; however, will have beneficial long term impacts as the Projects acts to reduce use of fossil fuels for future energy production. Surface Water Quality: impacts to downstream water quality and sedimentation issues will be minimized via use of erosion control devices and implementation of a Construction Stormwater Pollution Prevention Plan Groundwater use will not exceed allocated limits to the Tribe set by the State Engineer.

19

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