The announcement projected a 30 month development cycle which would have meant the project would come online in the spring of 2017.
The project broke ground in July of 2018.
The project broke ground in July of 2018.
It’s 2 3/4 years after ground breaking and 6 1/2 years past the initial announcement and still no completed project. Tom Vilsack is back as the Agriculture Secretary, and we've heard a lot about the Defense Production Act because of COVID-19.
In the latest twist I recently discovered that the project partners in November 2020 sought an additional $65 million bond commitment from the Port of Morrow, some 370 miles away from Lakeview.
According to reporting from the Lake County Examiner the commitment made is subject to approval from the Morrow County Circuit Court. The minutes from the Port Commission meeting are HERE.
The project has previously received $356 million in public financing from multiple sources:
$74 million from the Defense/Ag Departments
$ 2 million from Energy Trust of Oregon
$ 280 million from private activity bonds from both Business Oregon and Oregon's Private Activity Bond Committee.
The project has previously received $356 million in public financing from multiple sources:
$74 million from the Defense/Ag Departments
$ 2 million from Energy Trust of Oregon
$ 280 million from private activity bonds from both Business Oregon and Oregon's Private Activity Bond Committee.
$65 million in additional bonds are now tentatively being added (from the Port of Morrow)
$10 million in tax exempt private activity bonds$55 million in taxable revenue bonds
That brings the total to $421 million in public financing--about $51,000 for each person in Lake County.
In an Energy Trust Board Meeting document HERE from June 2018 [just prior to ground breaking in July] the TOTAL projected cost was substantially less-- $337 million, including $10.9 million in contingency.
And There's More.
I recently also discovered that project sponsors had received a Paycheck Protection Program loan in April 2020 for $394,900 (You can see all the federal grant and loans for Red Rock Biofuels LLC from USAspending.gov HERE).
I recently also discovered that project sponsors had received a Paycheck Protection Program loan in April 2020 for $394,900 (You can see all the federal grant and loans for Red Rock Biofuels LLC from USAspending.gov HERE).
The construction contractor for the project "IR1 Group LLC" has also received a PPP loan of $210,000.
VELOCYS is the reactor supplier to the project . USAspending.gov reports they have received a total of $3.3 million in grants and a PPP loan of $721,552.
It's possible that other participants in the Lakeview project have also received PPP loans or other federal funding.
It appears to me that the Red Rock site is likely located in a federal opportunity zone and in a state enterprise zone. These provide tax incentives that are are difficult to quantify and opaque to the public.
Finally, biofuel tax credits may be available for the projected annual 15 million gallons output, should the project become operational. At the previous rate of $1 per gallon, that would be a continued federal subsidy of $15 million annually.
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| Red Rock Lakeview Under Construction Fall 2020 |
Business Oregon Meeting Public Record Request Pending
I made a public records request more than a week ago to Business Oregon for meeting materials from a Finance Committee meeting held on February 12; an update on Lakeview project was on the agenda.
As more information becomes available I will update this post.
Originally created and posted on the Oregon Housing Blog.
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