The proposed federal action addressed by this environmental assessment is the authorization of disbursements under a loan guaranteed by the US Department of Energy for the Niland Geothermal Energy Program. The disbursements will partially finance the development of a geothermal well field in the Imperial Valley of California to supply a 25-MW(e) (net) power plant. Phase I of the project is the production of 25 MW(e) (net) of power; the full rate of 49 MW (net) would be achieved during Phase II. The project is located on approximately 1600 acres (648 ha) near the city of Niland in Imperial County, California. Well field development includes the initial drilling of 8 production wells for Phase I, 8 production wells for Phase II, and the possible need for as many as 16 replacement wells over the anticipated 30-year life of the facility. Activities associated with the power plant in addition to operation are excavation and construction of the facility and associated systems (such as cooling towers). Significant environmental impacts, as defined in Council on Environmental Quality regulation 40 CFR Part 1508.27, are not expected to occur as a result of this project. Minor impacts could include the following: local degradation of ambient air quality due to particulate and/or hydrogen sulfide emissions, temporarily increased ambient noise levels due to drilling and construction activities, and increased traffic. Impacts could be significant in the event of a major spill of geothermal fluid, which could contaminate groundwater and surface waters and alter or eliminate nearby habitat. Careful land use planning and engineering design, implementation of mitigation measures for pollution control, and design and implementation of an environmental monitoring program that can provide an early indication of potential problems should ensure that impacts, except for certain accidents, will be minimized.