The High Desert Power Project is one of the first merchant power plants to undergo permitting in California's deregulated energy market. HDPP requires permits from the California Energy Commission, EPA Region IX, and Mojave Desert Air Quality Management District for the power plant as well as permits for construction of a 32 mile gas pipeline. As a merchant plant, HDPP will be solely responsible for efficient, reliable production of energy. Neither electricity customers nor utility companies will bear any financial risk of operation of HDPP. This changing risk profile has affected the permitting process for power plants in California. The change in the permitting model is reflected in project management strategies including schedule, budget, engineering, and environmental impacts. Both applicant and regulator must adjust to this new situation where the market uncertainty requires flexibility in the permit conditions. Instead of permitting a plant to be built on a well defined schedule, the applicant will be seeking a site entitlement that will allow a future decision on configuration and on-line date. A timely response to the market is not possible if it must be made prior to application, which can be four or five years before power sales can begin. This paper will describe these changes in the context of permitting experiences on the HDPP.
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