Silver Peak Area Geothermal Exploration Project Environmental Assessment (DOE/EA-1921)

Rockwood Lithium, Inc. is proposing to construct, operate, and maintain the Silver Peak Area Geothermal Exploration Project within Esmeralda County, Nevada to determine subsurface temperatures, confirm the existence of geothermal resources, and confirm the existence of a commercial geothermal reservoir at the proposed well sites within federal geothermal lease N-87008. An Operations Plan for the construction, operation, and maintenance of these exploration wells was submitted to the Bureau of Land Management (BLM) Tonopah Field Office (TFO) in July 2011 and finalized in November 2011. Geothermal drilling permits would be submitted for the drilling of the exploration wells. Should this exploration project encounter and prove that a suitable geothermal resource is present, Rockwood would pursue development of the resource with the intent of providing electrical power for their adjacent lithium processing facilities. Given the uncertainties associated with geothermal exploration and the fact that most geothermal exploration on BLM land does not lead to the identification of geothermal resources that prove viable at a commercial scale, future development of the resource is not considered reasonably foreseeable for the purposes of compliance with the NEPA. Under the terms of the Geothermal Steam Act, its revisions of 2007, and its implementing regulations and the Programmatic Environmental Impact Statement for Geothermal Leasing in the Western United States and its Record of Decision of December 2008, BLM must respond to the proposed plans, applications and programs submitted by a geothermal lessee. BLM's need is to comply with its Statutory and regulatory obligations to respond to the Operations Plan submitted by Rockwood to conduct geothermal exploration and either approve the plan as submitted, approve the plan with required modification, or deny the plan. The BLM's project purpose is to provide Rockwood with an approved Operations Plan for geothermal exploration on their federal geothermal lease in the Silver Peak Area of Nevada. The plan would also ensure that development of the geothermal resource would be conducted without significant impact to the environment. This project would also further the purpose of Secretarial Order 3285A1 (March 11, 2009) that establishes the development of environmentally responsible renewable energy as a priority for the Department of the Interior. As part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), DOE's National Energy Technology Laboratory (NETL), on behalf of the Office of Energy Efficiency and Renewable Energy's Vehicle Technologies Program, is providing up to $2 billion in federal funding nationwide under competitively awarded agreements to facilitate the construction of U.S. manufacturing plants (including increases in production capacity at existing plants) that produce advanced batteries and electric drive components. DOE is participating with BLM in the preparation of this EA to evaluate the potential environmental consequences of providing a grant under this initiative. Pursuant to a cost-sharing agreement with the project proponent, approximately $4.47 million in DOE financial assistance would be provided under the Proposed Action. The overall purpose and need for DOE action is to accelerate the development and production of various electric drive vehicle systems, through building or increasing domestic manufacturing capacity for advanced automotive batteries, battery components, recycling facilities, and electric drive vehicle components, in addition to stimulating the U.S. economy. The selected projects are needed to reduce the U.S. petroleum consumption through investment in and deployment of alternative vehicle technologies. Rockwood's proposed project will also assist with the nation's economic recovery by creating jobs in the U.S. in accordance with the objectives of the Recovery Act.