Does windfarm project need a state permit?

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Some opponents of the $300-million Nimbus Wind Facility proposed by Scout Clean Energy on County Roads 904 and 920 south of Green Forest have expressed concerns about lack of transparency and government oversight of the project that would include 43 wind turbines, with 15 of those about 650 feet tall. Scout has said that because it is an independent power producer, it would not be required under state law to get a permit from Arkansas Public Service Commission (APSC) unless the power was sold to a state utility.

An advertisement Scout ran in the Eureka Springs Independent advertising a public information meeting April 11 stated that 40,000 Arkansas homes would be powered by Nimbus Wind Project. That could only be accomplished if the power was sold to an Arkansas utility.

While Scout earlier denied it needed to currently apply for a permit from APSC, Nimbus Project Manager Dave Iadarola wrote in an email that the Nimbus project will acquire all permits required from the state, including a stormwater pollution prevention plan from the Arkansas Department of Environmental Quality (ADEQ). APSC permits require proof that need exists for a new power production facility in order to prevent overbuilding that could be costly to consumers. APSC permitting also considers if environmental damage is justified by the need.

When asked if there is federal oversight of the project, Iadarola said the project has been working with the U.S. Fish and Wildlife Service (USFWS) since 2016 to address concerns about federally listed endangered species.

“Through this coordination the project has developed a Habitat Conservation Plan (HCP) for bats and an Eagle Conservation Plan, both which will be reviewed by the U.S. Fish and Wildlife Service,” Iadarola wrote.

According to documents obtained by Lisa Price-Backs through Freedom of Information Act requests, Nimbus began talks with the USFWS-Arkansas Endangered Species Office in April 2018 to develop an HCP that would result in Nimbus receiving an Incidental Take Permit (ITP) for species covered under the Endangered Species Act and the Bald & Golden Eagle Protection Act. Arkansas Game & Fish was asked to take part in the above discussions at that time.

“Nimbus has proposed a take estimate for bald eagles that does not include site specific data for northwest Arkansas and their proposed approach to estimates is not accepted by the Service,” an early document from USFWS states. “As a result, Nimbus’ take estimate is 10 times lower than the approved Service approach.”

A USFWS letter to Scout Clean Energy Oct. 12, 2021, said “SCE is proposing to commence with construction and operation of the wind turbines prior to Service review of the project through the standard incidental take permitting process, which involves National Environmental Policy Act review, public notice, and a determination on whether or not the project meets permit issuance criteria in accordance with the Endangered Species Act. We believe issuing a Technical Assistance Letter under this circumstance would be pre-decisional and circumvent the ITP process by allowing a commitment of resources without an ITP. It also could create an expectation of permit issuance prior to completion of our standard permitting process, foreclosing our ability to negotiate proper siting of the turbines to minimize impacts to the covered species during HCP development. After reviewing SCE’s request and our internal deliberations, we do not believe it is appropriate to provide the requested TAL to SCE for the proposed Nimbus Wind Farm. However, we commit to continue working closely with you to complete the HCP/ITP process as efficiently and expeditiously as possible.”

An excerpt from Nimbus Wind Farm HCP correspondence dated Nov. 29, 2022, states: “NEPA requires federal agencies to examine environmental impacts of actions that they authorize and to provide for public participation. The USFWS considers issuance of an ITP to be a federal action subject to compliance with NEPA. To comply with NEPA, the USFWS must conduct and publish an environmental assessment or environmental impact statement, which includes an analysis of all impacts of issuing the ITP on the human environment and includes analysis of a reasonable range of alternatives; the public has the opportunity to comment on the NEPA analysis.”

USFWS also wrote that “per Required Public Comment Periods, the information received by the Service as part of an application package (e.g., application, HCP, maps, background information, standard operating procedures, etc.) must be made available for public review (ESA section 10(c)). We have established requirements for the length of the public review/comment period for NOAs. If we involved other agencies and the public by doing early scoping or public meetings, we must offer the public at least 30 days to comment on the HCP and application supported by a categorical exclusion, EA, or mitigated EA (i.e., we consider mitigation measures in an EA to avoid or lessen potentially significant environmental effects of proposed actions that would otherwise need to be analyzed in an EIS). Service policy requires at least a 60-day comment period for a draft EIS, or on an EA for HCPs that are largescale or regional. If the public hasn’t been involved, we may need to add 30 days to the comment period. For HCPs that are exceptionally complex or precedent-setting, we recommend a 90-day public review/comment period. If we anticipate a lot of interest in an HCP, it may be prudent to add 30 or 60 days to the comment period so you don’t have to reopen or extend it.”

As of mid-April, Scout’s revised HCP was under review by state and federal agencies.

Filings with USFWS also reveal that Scout has stated that they would develop and construct the wind farm, but another entity had been identified to operate and maintain it.

Scout representatives said earlier that no government grants are being used to build Nimbus, but Iadarola wrote recently that all forms of energy receive tax credits for energy production, including wind energy. “Although the project is viable without the use of tax credits it will take advantage of the tax credits that are available,” Iadarola wrote. “Generally, the project receives the tax credit, but depending on the purchaser they may be able to use a portion or all the tax credits.”

Julie Morton of Van Buren, who worked to defeat the Clean Line Energy high-voltage transmission line and has decades of experience with utility rights-of-way agreements, said that wind power projects are not economical without tax credits. “Even Warren Buffett has said that,” Morton said. “Few people even knew about this project until recently. The process for developing Nimbus has not been legitimate.