Connecting the Neal Hot Springs project with the Department of Energy
Related People Kevin A. Cudney, Cara S. Elias, Andrew C. Elliott, John A. Herrick, Mark M. Oveson
Related Practice Corporate & Business, Federal & State Energy Funding, Government Relations, Natural Resources, Real Estate, Renewable Energy, Tax
ClientU.S. Geothermal, Inc.
U.S. Geothermal Inc. is a leading renewable energy development company operating geothermal power projects in Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project, near the town of Vale in eastern Oregon, will be the company’s third operating geothermal power plant. The plant will extract energy from heated rock and 287ºF water from the Earth's crust using a new technology known as super-critical binary geothermal cycle. It enables power to be generated with lower temperature sources and is more efficient than current systems. Unlike fossil fuel-fired power plants, geothermal plants produce virtually no greenhouse gas emissions.
In today’s recessionary climate, “new energy” companies like U.S. Geothermal can take advantage of Uncle Sam's innovative funding programs.
Brownstein’s multi-practice approach is helping U.S. Geothermal succeed and our country move towards a clean energy future. In addition to providing project finance counsel in the development and construction of this $129 million, 22-megawatt –net power plant, Brownstein represented the company in negotiating a loan and loan guarantee with the U.S. Department of Energy and the Federal Financing Bank.
Brownstein lawyers worked with Department of Energy (DOE) officials to negotiate and finalize a $96.8 million Recovery Act-supported loan guarantee to build the Neal Hot Springs Geothermal project. It is one of the initial geothermal projects awarded under the DOE’s Title XVII loan guarantee program, which was created by the Energy Policy Act of 2005 to support innovative clean energy technologies.
Combined with a previous equity investment by Enbridge, Inc., US Geothermal’s new loan provides 100 percent of the capital remaining to build the project, which is scheduled for completion in 2012.
U.S. Geothermal also engaged Brownstein to develop legislation to amend the Steam Act of 1970, allowing for more efficient and faster development of geothermal resources on lands adjacent to federal lands. Their goal is to end speculation on federal leases by those who have no intent to develop the resource and produce energy.
© 2013. Brownstein Hyatt Farber Schreck, LLP. All Rights Reserved. Attorney Advertisement.