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Renewable Energy and Conservation

Policy Recommendations for Chile


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Marc Ackermann
Kevin Fink
Erik Jensen
Maria Krug

December 12th, 2013


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Executive Summary .......................................................................................................................2
Introduction ....................................................................................................................................6
Policy Recommendations.............................................................................................................11
Drive Conservation Focus into Policy .......................................................................................11
Improve Permitting Efficiency ...................................................................................................16
Emphasize Social Inclusion .......................................................................................................23
Increase Agency Collaboration ..................................................................................................28
Sustain Impact with Measurement and Enforcement .................................................................34
Conclusion ....................................................................................................................................38

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EXECUTIVE SUMMARY AND
KEY RECOMMENDATIONS

As Chile continues to experience rapid economic growth, energy production limitations have
become one of the countrys greatest obstacles as it pursues further development. Current energy
generation relies on fossil fuels, large-scale hydropower, and imported energy. To decrease this
dependence, the government has committed to an unprecedented shift towards non-conventional
renewable energy sources (NCREs). With this transition, Chile has the opportunity to become an
international leader in renewable energy development, especially if these projects can be
completed with minimal adverse effects to the environment. As the global community enters into
increasing dialogue around sustainability and conservation, Chile is in the perfect place to
emerge as a model for policy which promotes environmentally conscious project development
and implementation.

To capitalize on these opportunities, the Chilean government must shift the focus of renewable
energy policy. The following analysis provides five policy recommendations to direct dialogue
around policy changes. The recommendations include driving conservation focus into policy,
improving permitting efficiency, emphasizing social inclusion, increasing agency collaboration,
and sustaining impact with measurement and enforcement. In order to meet energy goals and set
the stage for environmentally conscious NCRE development, the Chilean government must
incorporate these recommendations into policy.

Drive Conservation Focus into Policy

In order to drive conservation focus into policy, energy project siting must be used to mitigate
environmental impact. The United States Bureau of Land Management (BLM) was used as a
model for conservation in renewable energy policies and processes for its similarity to the
Northern Region of Chile. The analysis of the BLM provides insight in certain areas of attention
where Chiles conservation policy can improve. First, Chilean policy must provide a strategy for
proposed projects with unavoidable environmental damage. Second, increased emphasis must be
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placed on protecting biodiversity in the Atacama Desert, with a special focus on the regions
water sources. Finally, the ways in which individual projects are evaluated for environmental
impact must be reconsidered to improve efficiency and thoroughness. Implementing these three
policy recommendations ensures that the natural resources of Chiles Northern Region are
conserved for the countrys future.

Improve Permitting Efficiency

The potential for renewable energy generation in Chile remains largely untapped due to an
inability to efficiently move projects through the permitting process. Using the United States
Bureau of Land Management (BLM) as a model, policy recommendations were formulated in
order to perform thorough environmental assessments within the 150 day period, shortened from
700 days for Chiles Servicio de Evaluacin Ambiental (SEA). Currently, the SEA requires each
company applying for an environmental permit to provide the comprehensive impact study of the
site. Moving forward, the Chilean government must establish an agency tasked with the most
suitable regions within the country for specific types of NCRE projects. This change would
significantly reduce the demands placed on private companies as they apply for permit.
Additionally, the SEAs freedom to request an unlimited amount of application revisions, which
each allow four additional months for review, significantly reduces the likelihood of an efficient
permitting process. To limit the need for multiple revisions, pre-application meetings should
occur before a proposal is submitted to address site-specific constraints and ensure the site is best
suited for the project. Implementing these changes will help achieve Chiles goal of a faster
permitting process without sacrificing the integrity and conservation of the permit process.

Emphasize Social Inclusion

Chiles current efforts to substantially increase its NCRE production lack sufficient emphasis on
social inclusion. In order to successfully develop large infrastructure for energy production in
Northern Chile, permitting agencies and private energy companies must actively seek public
input and demonstrate the countrys commitment to working with local communities. Failure to
engage local communities prior to permit approval has severe consequences, namely public
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protests and lawsuits. Chilean policy, therefore, must require local communities to be included in
the development stages of proposed projects, offering insight into site location, environmental
impact concerns, and potential compensatory measures. Second, the Chilean government must
recognize the potential for job growth in energy production and environmental conservation,
while also committing to keeping these jobs inside local communities. By engaging the public
throughout the process of NCRE development in Northern Chile and providing jobs in
economically depleted areas, Chile can serve as a global leader regarding social inclusion in
renewable energy development.

Increase Agency Collaboration

With inefficient inter-agency collaboration and minimal frameworks for cross-sector interaction,
two initiatives for high level governmental policy making are vital for Chile to become a leader
in conservation and renewable energy. By developing a more holistic approach to inter-
governmental focus on conservation strategy and developing strategic partnerships across a
variety of sectors, Chile can grow sustainably with a new conservation policy. To capitalize on
inter-governmental inefficiencies, the CER, the organization in charge of renewable energy,
needs to restructure and refocus its approach by driving change in three key areas: focusing on
national policy, increasing stakeholder participation, and creating direct involvement with
Chilean public. Cross-sector collaboration will advance the cause of the renewable energy policy
by integrating a wide variety of groups through partnerships and a national-convention. Within
these two areas, Chilean policy can become more comprehensive through a multi-stakeholder
approach that eliminates waste in processes.

Sustain Impact through Measurement and Enforcement

The final component of the policy recommendation must focus on the impact and effectiveness
after implementation. To do this, two aspects must be considered: the efficiency of the permitting
process and the achievement of the policys overall goals. In order to determine the efficiency of
the permitting process, a system must be in place to measure the time and cost required to
receive a permit. In addition, there must be consistency between the initial proposal, design, and
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final construction to ensure that companies are held accountable to the environmental footprint
agreed upon in the initial site grant.

Four indicators were developed to measure the progress towards the overall goal of renewable
energy production and conservation: the natural asset base, environmental productivity,
environmental quality of life, and socio-economic context. Analysis of these indicators will
require sustained monitoring of each project, both during the initial siting procedures and
throughout the life span of the project. Finally, the success of this policy depends on clarity in
expectations of compliance and consequences of non-compliance. This will require frequent
inspections to ensure that the agreed mitigation and compensatory mitigation strategies are being
followed. Ultimately, this strategy of measuring the policy impact holds all parties accountable.

Key Recommendations
The government of Chile should:
Continue to push conservation as an important component of renewable energy
development, particularly throughout the permitting and siting processes
Improve the permitting process to be faster and more efficient while still promoting
thorough environmental assessments of each project
Increase efforts to engage the public and actively seek feedback from the public
throughout the entire process of approving renewable energy projects
Create an overhead national agency to implement this policy that incorporates
stakeholders from different government organizations as well as the private and non-
profit sector
Develop a strategy for measuring the impact of this policy after implementation to
determine effectiveness and inform policy changes
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1. Introduction

Context

In order to continue its sustained economic growth, Chile must overcome the current obstacles it
faces regarding energy production. Chile has recently experienced tension between neighboring
countries over gas exports as well as transmission, which promotes the benefits of meeting
current energy needs domestically. Furthermore, international trade places increasingly more
pressure on renewable energy sources. Under this pressure, attention shifts towards conservation
in order to promote renewable energy development projects. As seen below, in 2011, 61% of
Chiles electricity generation was from fossil fuels, 33% from large-scale hydro power, and less
than 1% from wind power (USA 2013b). This presents an opportunity for Chile to lead Latin
America in renewable energy power generation.



The opportunity for renewable energy generation is vast in the Northern Region of Chile; the
Atacama Desert provides a landscape which can support renewable technologies, especially wind
and solar. Formed over millions of years of unrelenting sunlight, the desert is a proven source.
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Chile, as a coastal nation, benefits from its proximity to the Pacific Ocean, where cold currents
cool the hot desert air, producing an endless supply of wind. For many reasons, Chile has the
opportunity to generate a sustainable supply of renewable energy which also has conservation at
its forefront.

Recent policy changes in Chile illustrate the value the Chilean administration places on
renewable energy sources and the pressure the country is feeling to rapidly expand its NCRE
capacity. On October 14, 2013, the Chilean government enacted a law requiring utility
companies to acquire 20% of their total electricity from non-conventional renewable energy
sources by the year 2025. This target presents an immense challenge for Chile and demands a
large amount of new energy plants to be planned, constructed, and made operational in the next
ten years. As the Chilean government has placed added emphasis on creating these new energy
sources with great speed, it has increased the risk that energy projects will be approved before
the environmental impact is fully understood and local populations have been consulted. Moving
forward, therefore, it is crucial that Chilean policy balances the desire for rapid site creation with
the need to protect the Chilean people and the environment. If Chile can implement policy that
will encourage alternative energy development while at the same time mitigating environmental
impact, Chile can serve as a model in the international community in navigating this area. By
putting conservation at the forefront of this renewable energy issue, there are enormous benefits
for Chile, both internationally and domestically.

Potential Impact of Policy Change

International Impact
As the conclusion of the timeline for the Millennium Development Goals (MDGs) approaches in
2015, there is discussion around the next generation of development, the Sustainable
Development Goals (SDGs). Whereas the Millennium Development Goals were fairly simple
and concise, ongoing negotiations around the SDGs are focusing on broader and more complex
issues. The MDGs focused mainly on social development, and the SDGs are including a more
comprehensive view, including economic, social, and environmental aspects. Therefore, some of
the issues at the heart of the SDGs will be climate change, environmental sustainability, and
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economic inequality. Given the scope of these issues, the SDGs will require more participation
from all countries, both developed and developing which contrasts with the MDGs where for the
most part, developed countries were making recommendations only for developing countries
(IRF 2013 and Sean Long, presentation, October 16, 2013). The Sustainable Development Goals
will be implemented in 2016, which means Chile has the opportunity to begin developing policy
to address these issues at the same time. The proposed policy recommendations for Chiles
renewable energy development address issues of conservation and environmental sustainability,
as well as have the potential to address economic inequality both in an international and
domestic context. With this policy as part of its strategy, Chile could participate in the
negotiations around the SDGs and emerge as an influential player in meeting the goals after their
implementation in 2016.

Domestic Impact
In addition to promoting Chiles interest internationally, this new renewable energy policy has
the potential to improve Chiles domestic concerns both in the public and private sectors. As the
government has made renewable energy development a priority, they have the potential to gain
much from doing so with an additional focus on conservation. There is clear outcry from the
general public concerning the environmental impacts surrounding renewable energy projects, as
seen in the protests against the proposed HidroAysen dam. Despite these protests, the
government approved the project but continues to face opposition. The two main companies
involved with the project have both publicly stated that they will only move forward with the
project if there is political and public agreement within Chile (Ross 2013). The proposed policy
recommendations will pursue ways to avoid this problem with future renewable projects by
incorporating more stakeholder inclusion and transparency in the permitting process, which was
one of the main public concerns in the HidroAysen dam project. The continuation of the
HidroAysen project is also contingent on upcoming presidential elections, as the front runner
candidate Michelle Bachelet has stated that she is against the project and plans to pursue
alternatives in renewable energy technology (Ross 2013). This conservation focused policy
provides an opportunity for the new administration to develop these alternatives in a way that
will encourage the publics support.

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As seen in the HidroAysen example, companies also face high risk when their projects are
opposed so heavily by the public. There is also much to gain, therefore, for the private sector by
putting more emphasis on conservation. Additionally, companies hoping to invest in renewable
energy projects will benefit from having a streamlined and more efficient permitting process, so
they do not waste time or financial resources. There is a clear market for renewable energy in
Chile that could provide enormous economic gains for companies that develop responsibly and
in collaboration with both the public and the government. Both private companies and
government agencies, therefore, are incredibly motivated to ensure environmental conservation
and engage local populations throughout this effort to dramatically increase Chiles NCRE
capacity. To achieve their goals efficiently, the Chilean government must provide a framework
for project development that incorporates sustainable conservation and public inclusion.

Strategy

To develop new policy for conservation focused renewable energy development,
recommendations focused on sustainability and implementation. The two opportunities that
address sustainability are a multi-stakeholder approach and ingraining accountability into the
policy. The focus on implementation will address operational challenges leading to efficient and
optimized processes. To do this, the policy will focus on driving conservation focus into policy
and attacking permitting process inefficiencies. As delineated in the issue tree below, by
focusing on these opportunities, policy makers can help guide Chile toward successfully
reaching the 2025 goal.

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Sustainability
Sustainability of this policy is dependent on a multi-stakeholder approach. Without sufficiently
addressing major concerns from differing factions, a policy cannot be comprehensive and
successful. It is imperative that this approach includes public opinion and is adopted fully by
those it directly impacts. Thus, it is very important to include all relevant stakeholders in the
process. Having multiple views on a position will inevitably optimize the outcome.

Additionally, accountability will impact policy sustainability through a groups unwavering
commitment to executing the strategy. By having a group that is held accountable, they must be
dedicated and incentivized toward making change happen in renewable energy policy. Especially
important in fostering accountability is a measurable and enforceable framework for evaluating
change.

Implementation
One crucial element of the policy recommendations focuses on including a conservation focus in
all initiatives to drive sustainable use of the countrys scarce resources and habitats. An
environmentalist approach has additional benefits deriving from an economic, social, and
political standpoint.

Additionally, the elimination of process inefficiencies will drive a conservation focused Chilean
renewable energy policy down a path of rapid improvement. Incorporating continuous
improvement by focusing on eliminating waste, the Chilean economy will benefit largely from
close attention to processes such as permitting and policy making. Additionally, the change will
be pushed to happen quicker, while maintaining the same high standards.

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2. Policy Recommendations
Drive Conservation Focus into Policy

Chilean energy policy must ensure that the natural resources of the countrys Northern Deserts
are protected as NCRE projects become more prevalent. Current energy policy in Chile
illustrates the countrys commitment to providing environmentally sustainable solutions.
Renewable energy projects, however, present a complex and largely varying array of
environmental concerns that make ensuring natural resource conservation a formidable
challenge. One of the primary concerns facing Chile is addressing potential energy projects in
which environmental harm is unavoidable. In order to decide how energy projects can be
allowed to move forward if certain environmental damages are anticipated, a case study from a
Chilean company, Enel Green Power, will be used to explore the role of compensatory
mitigation. Additionally, an increased emphasis must be placed on water usage and biodiversity
with Chiles Northern Desert Regions. Finally, measurement tools must be in place to evaluate
the environmental effects of each individual energy project. The current procedures used by the
United States Bureau of Land Management provide tremendous insight into the ways individual
projects can be evaluated. By requiring compensatory rehabilitation actions, protecting the
deserts water sources, and evaluating the environmental impact of each project, Chilean policy
can ensure that the natural resources of Chiles Northern Region are conserved.

Current Conservation Initiatives in Chile
The Chilean Government has demonstrated an understanding of the importance associated with
environment conservation. This focus is most notably seen in the establishment of the National
Environment Commission (CONAMA), which reported directly to the Presidents office through
the Ministry General Secretariat of the Presidency. CONAMA functioned as a public body and
decentralized environmental services. In 2010, CONAMA was replaced by the Ministry of
Environment due to Chiles ascension to the Organization for Economic Cooperation and
Development (OECD). This reinforced the need for corporate environmental responsibility due
to the pressures on industries exporting to OECD countries. These export-oriented concerns have
driven environmental progress in Chile.
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Successes are evident in trials which have already been performed in Chile. In December 2010,
the Ministry of National Assets, in collaboration with the Ministry of Energy, opened up an
international tender for public lands in the Northern Region. The invitation made sites in the
Atacama Desert available for wind energy projects. The sites were screened for proximity to
transport infrastructure and transmission lines as well as resource access, with measurements
indicating average and adequate wind speeds. Companies presented proposals for wind farms
with capacities between 40 and 100 MW for a single site. The winning proposal was granted a
land-use concession for 25 years for the implementation of the project (Sciaudone 2012). The
tender was granted to Enel Green Power Chile (EGP), a green power development company
based in Italy. Following the award, feasibility studies and an environmental impact assessment
were performed before the company began construction of the 99 MW project containing 33
wind turbines. Once in operation, the Taltal wind farm will generate over 300 GWh per year,
preventing the emission of 200,000 tons of CO

each year and meeting the consumption needs of


170,000 Chilean households (EGP 2013). To support the project, a 20-year power purchase
agreement (PPA) was enacted and will ensure power transmission to the Chilean Central Region
transmission network (SIC), through a substation 50 km away from the wind farm.

EGP also represents a model for compensatory mitigation in Chile. The company has
demonstrated a high level of social responsibility and seeks to assist local communities which
may be impacted negatively from renewable energy development projects. EGP established
programs aimed to assist local communities, such as rural electrification, scholarship, and health
and agricultural programs (EGP 2011). The companys agricultural program provides support to
indigenous communities, such as the Mapuche, located near the EGP small hydroplant of
Panguipulli. The Mapuche have been largely marginalized by development, and show a high
poverty rate close to EGPs plant with low nutrition and education levels. The company founded
a program to construct greenhouses, offer technical assistance, provide funds for seeds, and
support sales of produce for the Mapuche. Farmers in this program are now selling their organic
products to UNIMARC, the largest network of supermarkets in Chile (Mapuche 2011). Though
the tender did not specifically require compensatory mitigation, the actions taken by EGP to
catalyze social change illustrate the benefits of compensatory actions.
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The tender leading to this project was the first Chilean public tender jointly organized by the
Ministry of National Assets and the Ministry of Energy. Its aim was to promote renewable
energy development and energy dependence, and it certainly did. However, the tender was slow
to attract developers due to perceptions that the concession was too risky and expensive.
Furthermore, the ministry undertook five tender modifications in order to attract companies
(Sciaudone 2012). Many were hesitant because the concession was only for the site;
environmental approval and a PPA needed to be obtained. This segmentation added risk for
many companies.

Biodiversity and Water Resources
To combat this segmentation, land-use planning needs to specify where renewable energy
projects can be built. A major hindrance of this is water usage. Currently, water rules are widely
seen as favorable to the mining industry, and as a form of privatizing water. According to Chiles
Water Code, mining companies have the right to use any water found during their work (Ulmer
2013). Especially following a series of droughts, the water code must be reviewed for rights. The
state must first guarantee water for human use, and also for small-scale production, such as
farming. In light of the mining boom in Chile, it is now necessary to review how profits are used
to protect the environment. Biodiversity is dependent on water quality, for as soon as water
quality diminishes, biodiversity suffers. Future environmental efforts must focus on how land-
use impacts water resources, and therefore conservation of biodiversity. The desert is the most
resource scarce type of environment on the planet; therefore, the competition for those resources
is fragile. Any flux in resource distribution has the potential to devastate biodiversity and
therefore the entire region. Because this balance is so pivotal, environmental concern must be
prevalent at every stage of a project, beginning with water.
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Using the BLM as a Model for Improvement
To ensure that environmental concern is prevalent, the BLM has integrated the National
Environmental Policy Act (NEPA) as a part of the project process. NEPA requires all federal
agencies to incorporate environmental concerns into decision making process in regards to the
environmental impacts of all proposed actions and any reasonable alternative to those actions
(USA 2009). Through this, a preliminary screening must be performed for NEPAs applicability
for each land parcel. Then the organization must prepare an Environmental Assessment (EA) to
determine whether an Environmental Impact Statement (EIS) is require, and if so, the EIS must
be prepared in order to determine if an action may significantly affect the quality of the
environment. Each assessment must also develop a strategy for public involvement. A common
risk for many projects is risk of habitat loss. Many local groups have asked for NEPA
assessments in order to ensure environmental considerations of a proposed action. Furthermore,
alternatives must be defined and analyzed as a part of the assessment. This process allows for
community engagement and stakeholder participation.



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Conclusion
The Chilean Governments concern for protecting the countrys natural environment has been
well illustrated by their efforts to promote environmental sustainability through their current
energy policy. As Chile prepares for a dramatic ten year push towards renewable energy,
however, it must not sacrifice environmental conservation for large quantities of renewable
energy sources. In order to maintain and improve upon Chiles current conservation policies,
Chile must require companies to perform environmental improvement campaigns alongside
community members as compensation for environmental damages, create policy protecting the
regions water sources, and strengthen its environmental assessments of individual projects.
These three policy recommendations help ensure that the natural resources of the Atacama
Desert will be available to the local people for generations to come.




Key Recommendations
The government of Chile should:
Include conservation and biodiversity in siting
Ensure compensatory mitigation over project lifespan
Restructure water rights for effective resource allocation
Involve all stakeholders in environmental impact

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Improve Permitting Efficiency

Despite the large potential for wind and solar power generation in Chile, these resources have
largely remained untapped. Currently, the capacity of solar plants that are operational or under
construction represent only 1.78% of the countrys solar power potential, and the existing wind
farms achieve a mere 0.78% of the countries wind power potential (von Hatzfeldt 2013). This
failure to utilize Chiles capacity for NCREs is not a result of insufficient project proposals, but
rather an inability to efficiently move projects from conception to reality. According to the
Chiles 2012 energy strategy, more than 90% of proposed NCRE projects have yet to reach the
construction stage. One of the primary causes of the significant delays associated with renewable
energy projects is the application for permit through Chiles Servicio de Evaluacin Ambiental
(SEA), which performs an environmental impact assessment on every proposed energy project.
The Chilean Government recognized the significant delays associated with the permit review
process and in response, enacted the Law on Electricity Concessions in October of 2013 limiting
the allowable time for permit review to 150 days. While this law addresses the need for more
efficient permitting, it threatens the SEAs ability to provide sufficient environmental
assessments. The United States Bureau of Land Management provides a model for a streamlined
permitting process that incorporates thorough environmental assessments but also decreases the
time needed to permit. By following the BLMs example, the SEAs environmental assessments
can be performed within the new 150 day limit while still adequately identifying environmental
risks.
Current Chilean Permitting Policy
As the first step for companies or organizations applying for environmental permit, the SEA
requires the company to provide an environmental impact study that describes, in depth, the
predicted environmental impacts of the project in question, the countermeasures the company
plans to take to limit the impact, and substantial due diligence meant to demonstrate a complete
understanding of the potential effects of the project. In order for an environmental impact study
to be accepted for review by the SEA, the company must first prove that the project does not
pose any significant health risks, negatively affect the quality or quantity of renewable resources
such as soil and water, displace populations, impose on protected lands, or present a potential
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decrease in tourist activity. If these qualifications are met, the SEA initiates the review process
by sending the impact study to all related state and local agencies. The agencies then have 120
days to review the impact study and request changes or additions (Maxwell 2009). After this
period has elapsed the agencies involved vote to decide whether the proposal is approved,
denied, or sent back to the company with all of the agencies requested clarifications,
corrections, and additions. If the agencies vote to send the assessment back for revision, the
company then submits a revised version that is once again circulated to the relevant agencies,
and the process continues in this manner until the agencies are satisfied with the impact
assessment. Importantly, all impact studies are available to the public, and the SEA accepts
comments from any individual or group concerned about the effects of the project. If at any point
the agencies vote to approve the project, the SEA issues a Resolucion de Calificacin Ambiental
(RCA) that formally allows the company to proceed with construction.

The SEA project approval process has been suggested to favor the companies proposing projects
by limiting the time government agencies have to review proposals while giving companies
unlimited time to make changes to their proposals. Despite these arguments that the SEA is
tailored to push development projects through the permit process, many projects have
experienced the opposite effect. One such project, Sarco Windfarm, applied for SEA approval in
October of 2012 and just received its third round of clarification and correction requests from the
involved government agencies. The project would create 95 wind turbines that together would
generate 240 megawatts of electricity, more than doubling the countries wind power capacity.
Instead, the company has spent more than a year applying and reapplying for permit, submitting
a revised version of their proposal and waiting helplessly through four months of review.
Admittedly, wind turbines possess the greatest environmental effects among NCREs, largely due
to the dangers wind farms present for flying wildlife, and many of the additions requested by the
government agencies represent legitimate concerns. If energy projects such as Sarco Windfarm
continue to face permit processes that take years to complete, however, Chile seems unlikely to
reach its 2025 goal.



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Bureau of Land Management Permitting Policy
In order to address the inefficiencies presented by the current permitting policy, the Bureau of
Land Management (BLM) in the United States was used as an example to streamline the process
without losing focus on environmental sustainability. First, the BLM conducts thorough analysis
in order to identify sites with high potential for renewable energy development without causing
adverse environmental effects. To do this, the BLM focuses on criteria using Geographic
Information System (GIS) data.

Siting
For solar energy projects, one important criterion is land with a solar resource of at least five
kWh/m

/day of direct sunlight. Additionally, land slope is considered to find sites with a
maximum of five percent grading and ideally less than one percent grading over a site. Next,
transmission access is examined in order to utilize existing infrastructure and limit the
environmental impact and costs associated with expanding current transmission grids. Sites need
to have transmission access within 50 miles as well as available capacity (69-345 kV). In order
to optimize public land efforts, a land parcel is required to be at least 40 acres in area. This is due
to the infrastructure and project demands for solar projects, which require a certain scale in order
to prove feasible. The final screening criterion is access to roads or rail within 50 miles. The
BLM maintains that other identification factors are important in evaluating potential for
renewable energy projects, but are limiting to a lesser extent. These site factors include water
resource availability, removal of vegetation, location within 25 miles of a main natural gas
pipeline, policy support, livestock protection possible, and location within 100 miles of a
population center.

Similarly, criteria for wind projects include wind potential, with sites needing to demonstrate
winds in Class 4 and above for short term winds, and Class 3 and above for long term winds,
transmission access within 25 miles with available capacity, access to roads within 50 miles, a
parcel size of ten square miles at best, and an optimal elevation of 3,000 to 4,500 feet.
Additionally, compatibility with wind energy development is analyzed, which considers social
response and eliminates sites in view of scenic areas, view-shed, and non-developmental regions.

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Application Process
Once these zones have been sited, companies then go through a standardized application process
to obtain approval for use of the land, consisting of pre application screening, Right of Way
approval, Plan of Development approval, and Environmental Assessments. Before any
application is submitted, a company interested in developing on BLM land must first participate
in two meetings with the BLM and the primary stakeholders in the project; typically other
federal agencies, tribal governments, state and local governments, and local communities. These
early meetings serve to identify site specific constraints, ensure that appropriate technology has
been selected, and consider alternative sites. These meetings are meant to occur before
significant work has been done on the project design so that the company would be open to
changes in the proposal to decrease negative environmental effects (BLM 2011a). In addition,
early meetings promote cooperation between all parties involved throughout the entire proposal.

Next, submission of the Right of Way grant shows the BLM that the company has the financial
and technical capacity to construct and operate the facilities. It details the organizations
experience with utility scale projects, as well as demonstrates the ability to carry out all
environmental studies required. Each Right of Way application requires subsequent submission
of a Plan of Development which includes the proposed technology, location, and infrastructure
required, including detailed design proposals and results of geotechnical and environmental
studies. The Plan of Development provides enough information to begin the environmental
assessment of the project in accordance with the National Environmental Policy Act (NEPA).

Environmental Assessments
In its Programmatic Environmental Impact Statement (PEIS) which designated the Solar Energy
Zones (SEZ), the BLM already conducted thorough NEPA environmental assessments of each
zone. Consequently, site-specific environmental assessments can reference the broader study
already completed and only need to focus on environmental issues caused by specific project
details. This eliminates the need for redundant studies and decreases the time for approval since
it does not require an entirely new and separate Environmental Assessment (BLM 2013b). The
submission of the amended Environmental Assessment will lead to Finding of No New
Significant Impact approval as long as any effects caused by the proposed project may be
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reduced through mitigation (BLM 2008). After approval, the project then receives a Notice to
Proceed, which is issued for each phase of construction. No work can begin before the Notice to
Proceed (BLM 2013c).

Incentives
To encourage companies to develop utility scale projects, the Bureau of Land Management
offers both logistical and financial incentives. First, the streamlined application process
guarantees faster and easier permitting for projects, while still ensuring thorough environmental
analysis. In addition, by working with the BLM, companies will have access to already
completed mitigation plans specific to that SEZ, which further promotes sustainable
development. Finally, companies receive economic benefits because the initial work done by the
BLM on environmental analysis means the company does not have to pay to conduct the studies.
The BLM also has a ten year phase in period for rental payments and charges a fixed rental
payment for the duration of the lease, which decreases overall costs. Uncertainty is minimized
for the company, as the BLM may provide a 30-year lease (BLM 2013a).

Policy Recommendations for Chile
As outlined above, one important reform to the SEA review process must address how to reduce
the length of the process while continuing to serve as an effective identifier of projects with large
potential for negative environmental impact. Firstly, it appears that every company uses the same
template for their impact study, regardless of the type of power plant being proposed. The SEA
needs to develop individual impact study templates for each energy type (ie. wind, solar, etc.)
that take into account the unique environmental concerns associated with each NCRE. These
impact studies could then be used to identify certain zones with resources most efficient for that
energy type without causing significant environmental harm. If companies were then able to
choose from already sited land, it would eliminate much of the unnecessary time spent on
revisions to the environmental assessments. Instead of each company conducting an independent
environmental assessment, an approach similar to the BLM could be taken. If an in-depth
environmental assessment has already been completed, then the company can submit a narrow
amendment which addresses specific issues caused by the project and references the more
comprehensive study.
21


Additionally, the SEAs freedom to request an unlimited amount of application revisions that
each allows four additional months for review seems to significantly reduce the likelihood of
efficient permit review. This process could be improved significantly by requiring pre-
application meetings before a proposal is submitted to address site-specific constraints and
ensure this site is best suited for the project. Having these meetings before the proposal is
submitted will reduce unnecessary time spent on revisions and will increase the likelihood of
cooperation in implementing changes, since the company will not have already invested
significant time and energy in the proposal. In addition, after the proposal is submitted, the SEA
and relevant government agencies should be restricted to one request for revision and must
approve the revision if the concerns raised are properly addressed to eliminate the uncertainties
surrounding the timeframe of permitting.


Key Recommendations
The government of Chile should:
Identify specific areas most conducive to sustainable NCRE development
Perform comprehensive environmental assessments of these sites
Allow individual projects to reference the overall assessment; thus eliminating the need
for a company to perform a new environmental assessment
Require pre-application meetings to limit the review process
22

2


2
lncluslve Solar Lnergy ln Chlle from MlnlsLry of Lnergy ln Chlle
23

Emphasize Social Inclusion

The Chilean Governments current energy policies fail to adequately engage local populations in
the planning and implementation of NCRE projects. As previously stated, the Chilean
Government would benefit from launching an initiative to identify specific zones in Northern
Chile that are suitable for the implementation of solar plants, wind farms, and other renewable
energy sources. This process, which would greatly simplify the permit application efforts of
energy companies, also provides the ideal opportunity to promote public participation in the
selection of suitable project locations. Seriously considering public opinion regarding future
projects is critical to Chiles success in the NCRE sector. The HidroAysn Dams Project clearly
illustrates the consequences of disregarding public opinion while making decisions concerning
large energy projects. Approving the project in 2011 before launching public outreach programs
has caused two years of lawsuits and protests and marks one of the greatest failures of the Piera
administration. If an early emphasis had been placed on gauging public opinion regarding
HidroAysn, the Chilean Government could have identified dam locations more conscious of the
environment and more preferable to local populations. At the very least, years of investment
could have been avoided. Moving forward, social inclusion must play a substantial role in the
selection of sites for energy projects.

BLM Model of Community Engagement
Again, the BLM provides a good example of engaging communities throughout the zoning
process. In 2008, the BLM began an effort to identify regions in the southwest that are well-
suited for solar energy plants. After site identification, the contributing agencies launched a
period of public scoping which included public meetings in every city in close proximity to the
proposed zones. Additionally, the program invited Federal and State agencies, Native American
tribes, relevant organizations, and members of the public to send comments regarding the
possibility of solar energy facilities in the region. Meetings were also held, and the public was
invited to submit comments, after the preliminary draft of zones, the supplemental draft of zones,
and preceding the release of the final zoning decisions (BLM, 2013d). Throughout the process,
the US Solar Energy Program kept the public informed and sought public opinions. This ensured
24

that when final decisions were made, neither the government nor the public were surprised. By
making an early and sustained commitment to social inclusion, the US Solar Energy Program
knew that it had public support and that its efforts had no risk of being wasted due to unexpected
public protests.

Emphasis on Public Opinion in Chile
Chiles newly enacted Law on Electricity Concessions has the potential to overlook public
opinion as emphasis is placed on shortening the permit process. For this reason, Chilean Policy
must take an aggressive approach to community engagement, implementing programs that
require the active procurement of public opinion regarding energy projects. If the Chilean
Government chooses to launch a zoning project in Northern Chile to identify suitable sites for
NCRE projects, the perfect arena for public outreach is provided. Public meetings with local
towns would allow the Chilean Government to acquire much needed information regarding
public openness for new energy projects in local areas and would demonstrate administration
commitment to collaborating. This would play a large role in repairing the governmental damage
caused by the HidroAysn project. Additionally, with the 80% decrease in permitting time,
surveying the public must be eliminated from the permit review process and, rather, be a
prerequisite for permit application. Chilean policy must require companies to engage the
communities near their proposed project sites before permit applications. Town meetings would
allow the company to introduce its project, outline the economic and environmental impact, and
listen to the communitys feedback and concerns. Furthermore, the Chilean Government would
significantly reduce the amount of unanticipated public protests and would become a model for
social inclusion within energy projects.

Job Creation
In addition to seeking public opinion, the Chilean Government must acknowledge and seize the
opportunity to use the push towards renewable energy sources as a catalyst for social change.
The Atacama Desert, the region most specifically targeted for future energy projects, contains a
large indigenous population that has not experienced the benefits of Chiles sustained economic
growth over the last two decades. The development of NCRE power plants in Northern Chile
offers local populations an avenue towards economic development through substantial job
25

growth. Two arenas exist within Chiles efforts to create an environmentally conscious NCRE
program that will require the creation of local jobs. Firstly, despite Chiles current reliance on
international manufacturing for solar plants and wind farms, other aspects of these types of
energy projects require locally available labor. Secondly, the Chilean Governments attempts to
ensure environmental conservation throughout the lifespan of NCRE plants will undoubtedly
require substantial manpower. Most importantly, these two job sources provide job opportunities
to local indigenous peoples with minimal training. The Chilean Government, therefore, must
take advantage of this opportunity to create a better future for the communities of Northern Chile
and create policy requiring these jobs be fulfilled by local people.

Emphasis on Local Economy
Numerous jobs associated with NCRE development require local workers. Solar plant and wind
farm projects in the Atacama Desert require expanded access. Road construction, therefore, will
play a large role in the zoning process and the planning stages of individual projects. For timely
construction to occur, the construction crews must be local for each project. Road construction
and other aspects of site allow locally available manpower to be utilized. Additionally, while
manufacturing is performed internationally and installation requires technical expertise,
operations and maintenance jobs must be filled locally. Admittedly, research demonstrates that
wind farms are largely self-sustaining and require limited workers for operations and up-keep.
According to projections made by the United States National Renewable Energy Lab, wind
farms in the United States average one maintenance employee for every 12-15 wind turbines
(Stop 2012). Solar plants, however, present a different story, where thirteen installation and
maintenance jobs can be expected for every twenty manufacturing jobs, according to a study
conducted by the University of California Berkeley (Ban-Weiss 2004). For these jobs in
construction, installation, and maintenance, energy companies must choose between hiring
members of the local population or importing workforce. The Chilean Government must ensure
that these jobs are given to members of the local community through policy. This commitment to
local communities will improve the indigenous quality of life and increase support of local
energy projects.


26

Job Creation in Conservation
Finally, environment conservation remains a core objective for new policy regarding NCRE
development. In order to achieve this goal, when energy projects are anticipated to negatively
impact the environment, companies will be asked to perform environmental rehabilitation
projects in the region to compensate for the damages the project will bring. These projects
provide another clear avenue for unskilled job growth. By incorporating members of the local
community in the efforts to restore the environment, the Chilean Government will not only
provide these people with a source of income, but will increase their environmental
consciousness. While the majority of jobs available to the people of Northern Chile will be
directly related to energy projects, the potential jobs in conservation cannot be overlooked. The
Chilean Government should strive to keep these jobs within the local communities of the
Atacama Desert region.

Conclusion
Chiles rapid expansion of NCRE production provides a crucial opportunity to demonstrate the
governments ability and desire to work with the people. Past mistakes illustrate the importance
of including the public early and often in discussions regarding the construction of future energy
facilities. The Chilean Government must begin this effort by incorporating public opinion into its
zoning process through town meetings in every community close to a given project.
Additionally, Chilean policy must require energy companies to perform their own public forums
in impacted towns before being eligible to apply for permit through the SEA. This ensures that
even with the recent enactment of the Law on Electricity Concessions, the publics voice will be
heard before permit approval. Finally, the Chilean Government must recognize the potential for
job growth in energy production and environment conservation, and commit to keeping these
jobs inside local communities. This strategy will not only stimulate local economies, but will
also improve public opinion regarding energy projects. By engaging the public throughout
NCRE development in Northern Chile and providing jobs in economically depleted areas, Chile
will serve as a global leader for social inclusion in renewable energy development.



27





Key Recommendations
The government of Chile should:
Include local community in the zoning process through town meetings
Require energy companies to perform their own public forums in community
Focus on local job growth creation for redistributing wealth to Northern Chile

28

Increase Agency Collaboration

Two initiatives for high level governmental policy making are vital to implement the proposed
changes. By developing a more holistic approach to inter-governmental focus on conservation
strategy and developing strategic partnerships across a variety of sectors, Chile can grow
sustainably with a new conservation policy. These initiatives will address the necessity for a
multi-stakeholder approach to develop a long-term approach to conservation and renewable
energy. Additionally, these recommendations fit closely with addressing other opportunities for
policy improvement by ingraining accountability, adding strength to conservation policy, and
driving out process inefficiencies.

Improved Agency Collaboration
First, a key to advancing a fully evaluative and comprehensive policy for Chile is to follow the
direction of previous initiatives in America and Cambodia of improved cross agency
collaboration. With current frameworks in place, the cross agency approach will focus on a
restructuring of an existing platform, the Centro de Energas Renovables (CER), to include all
relevant policymakers and address the needs of the citizens.



Develop Strategic Partnerships
The second key for Chilean policy makers is to develop strategic partnerships with the public,
non-profit, and private sector to share the weight of implementation, and create access to other
resources. One entity cannot sufficiently address all areas of concern. Thus, developing strategic
Mission: Ensure optimal
participation of NCRE sources in
Chile's energy matrix, and to
contribute to sustainable
development.
29

partnerships with local governments, conservation groups, various NGOs, and the private sector
will provide substantial benefits for successful policy implementation and execution. Together,
these initiatives will help drive Chile to reaching the 2025 goals in a sustainable and accessible
route.
Non-Optimized Chilean Collaboration
From an institutional perspective, Chile does not have optimal interaction and collaboration on
energy policy. While there is currently an inter-ministerial group in the Ministry of Energy, the
CER, the collaboration is often inefficient and less focused on national scale policy.
Additionally, the CER is primarily focused on medium and small scale projects, which are
important but less directly tied to policy (CER 2013). As a final aside, the constitution has
inherent limitations that have hindered some areas. An economist from Chile stated, The
Chilean Constitution is read to a strict standard, which requires explicit delineation within the
law to allow action (Montecinos, personal communication, November 27, 2013). Combined
with a popular push for constitutional rethinking, opposing inter-ministerial viewpoints and CER
focus on non-policy measures, the collaboration inside the government has ample room for
improvement.

Overall, the political landscape in Chile has the opportunity to give rise to a green transformation
in the energy sector. This is due to a public will for constitutional transformation leading to
improved policy making power and the entrance of a newly elected president. A hot topic in the
presidential elections is the constitution and its limitations. This will require the new
administration to address the problem (Montecinos, personal communication, November 27,
2013). The political clout is mounting and a new presidential leader will likely have an enormous
impact on the robustness of policy initiatives, such as the proposed policy changes. With the
2025 target already in place, there is also a necessity to focus deeply on renewable energy and
conservation, especially within the government. There is a perfect storm in place; there is an
enormous opportunity for an incoming president to put their mark on energy and the
environment in Chile.

Addressing the needs of improved non-partisan collaboration, there will be a comparison with
the Cambodian Government as a developing country example and the United States as another
30

case. Furthering the debate on partnerships, American policy focused on conservation will
provide an illustration. Additionally, current precedents and frameworks in Chile need to be
addressed to evaluate the feasibility of these recommendations.

Cambodian Inter-Ministerial Green Growth Working Group
From another developing nation, the Royal Government of Cambodia has been a leader in
addressing green growth: economic growth that is socially and conservation focused. Similar to
Chile, in the past, Cambodia did not have sufficient coordination between governmental entities.
To combat this communication barrier, the Royal Government of Cambodia established the
Inter-Ministerial Green Growth Working Group (GGWG), representing 19 ministries, to
establish a green growth policy; within a short time horizon, the group successfully designed the
Green Growth Roadmap for Cambodia in 2010 and the National Strategic Plan on Green
Growth. After taking a non-partisan multi-stakeholder approach, this plan incorporates seven
accesses that are carefully tailored to the poor and marginalized communities. For both nations,
the separation of players has hindered policy making. However, Cambodia has made
considerable progress on integrating policy makers through the GGWG. Moving forward, Chile
has an opportunity to follow a similar path to coordinate discussions between policymakers.
Thus, a viable option is to develop a large and integrated cross-party, cross-ministry organization
that works in unison to strategize and implement sustainable energy policy with an emphasis on
inclusion (Mohammed 2013).

Americas Great Outdoors Agency Collaboration
Americas Great Outdoors (AGO) is an initiative launched in 2010 that is aimed at restoring
American commitment to conservation. One of the focal points of initiative is that it is a non-
partisan effort that is largely supported by public opinion. The United States Government has a
strong coalition of agencies involved in the effort to revitalize conservation in America; major
agencies involved include the Council for Environmental Quality, the Office of Management and
Budget, the Environmental Protection Agency, the Department of the Interior, and many other
similar agencies. On top of a more collaborative inter-governmental process, public opinion
strongly backs the initiative and comprehensively incorporates a 10,000 person survey with over
50 public listening sessions. The overwhelming majority suggests a move toward protecting the
31

environment and the Americas Great Outdoors delineates the key steps necessary for a national
renewal focused on conservation. Most important, this cross agency collaboration through AGO
is aimed at driving effectiveness in policy making and implementation. The task of the
government coordination is to coordinate intergovernmental efforts, report to president on
goals, one-stop access location, and communicate with local communities (USA 2011).

Recommendation for Restructuring Collaboration in Chile
There is a strong precedent for inter-ministerial groups in the Chilean Government. Specifically
in renewable energy, in 2009 Chile created the CER, the Center for Renewable Energy. This
committee is overseen by ministers from in Education, Agriculture, Economy, National Assets,
Entrepreneurship, Energy, and Environment to address concerns over renewable energys
standing in Chile (CER 2013). The groups mission is to ensure optimal participation of NCRE
in Chile's Energy Matrix, in order to contribute to sustainable development (CER 2013). The
CER is primarily focused on promotion of project, providing information, building capacity and
promoting participation. The transition of the CER from a medium and smaller scale energy
organization to a large national scale policy maker would help guide Chile down a path of
sustainable development with renewable energy at the core. In order to drive this transition, the
CER needs to restructure and refocus its approach by focusing on these key areas: redirecting
attention to national policy, increased political participation, and fostering direct involvement
with the Chilean public. By focusing on three sub initiatives, there is immense opportunity for
improvement in Chile regarding agency collaboration

The agency in focus, the CER, has yet to directly tackle policy and rather has targeted
small and medium scale projects. The goal is that this framework of participation with
smaller stakeholders in the CER can be scaled to incorporating the CER as a larger policy
making group within the Chilean Government. The CER should issue a national policy
agenda for attacking the renewable energy needs and promoting sustainable development.
Having only seven of twenty-two ministries on the board, the CER is not yet optimally
suited to transition to a national policy making group. In order to truly take a multi-
stakeholder approach and provide political power, all or most ministries should be part of
the discussion on reforming renewable energy and conservation. Ignoring the impact on
32

one ministry may lead to an unsustainable long term policy. The CER should expand its
reach within the political realm of Chile to incorporate additional policy leaders.
Even more important to the CERs agenda, there is a need to address the public voice in
construction of this policy. Similar to the structure of the AGO, the new policy initiative
should reach out to the public first for acceptance and direction in renewable energy and
conservation. This will drive a sustainable approach to consider all relevant arenas of
implementing a renewable energy policy with a focus on conservation. Chile should
sponsor the CER to begin a national campaign regarding the public importance of
conservation and renewable energy.

Americas Great Outdoors Partnerships
AGO is also focusing on implementation and execution partners for this national scale
transformation. The same will need to be true of Chile. There is a need to incorporate all actors
and additional groups with similar viewpoints to emphasize efficient execution. For the AGO,
they are using partnerships with private and public sector to help realize conservation.
Collaboration will be encouraged between the public and private sectors; state, local, and tribal
governments and the private sector; between natural resource and cultural resource interests; and
between local communities and the federal government (USA 2011). By focusing on multi-
stakeholder approach tied to process efficiency, partnerships will help advance Chile by focusing
on opportunities in sustainability and implementation. Sub-initiatives to integrate all these
stakeholders are developing close partnerships and creating a CER sponsored convention.

Recommendation for Increasing Partnerships in Chile
There is a great possibility for integrating a wide variety of organizations to move forward
conservation focused renewable energy policy.
By working with organizations that are directly involved on the ground and have large
influence, policy makers can gain incredible insight into the direct and indirect impacts of
its policy. The CER can push for partnerships, large conventions to share ideas, and
linked incentives. Specifically, the CER can partner with corporations, like Enel Green
Power, or large development partners, like the World Bank. Partnerships with these
organizations could reduce waste and create access to financing.
33

Currently, the Chilean International Renewable Energy Congress (CIREC) gathers
important stakeholders in the renewable energy sector in Chile. Another recommendation
to promote large scale transformation is to incorporate a wider variety of stakeholders
and partners in a CER sponsored large annual convention, similar to the CIREC, on the
importance of renewable energy and conservation in Chile. Especially important in
creation of a conference is to include the public and non-profit sector into the
conversation; currently CIREC includes neither. Coinciding with restructuring the CER,
A sponsored convention could help to progress the CER as a national policy maker.

Key Recommendations
The government of Chile should:
Refocus the CER to include large-scale policy initiatives in Chile
Expand the CER to include all ministries of Chilean Government
Address the public opinion through a national campaign
Develop strong partnerships across sectors
Sponsor an annual convention focused on conservation and renewable energy

34

Sustain Impact with Measurement and Enforcement

There are two separate levels of looking at how to measure the effectiveness of the proposed
policy: the efficiency of the permitting process and the achievement of overall goals. For the
efficiency of the permitting process, items to consider are the time and cost to permit and
consistency between design and construction. To determine whether this policy is effective in
achieving the overall goal of meeting energy demands while mitigating adverse effects on the
environment, analysis should focus on the measurement of indicators of green growth and
continued monitoring and data collection. Ultimately, a measurement of policy effectiveness
must also consider the enforcement of the policy and consequences of not meeting certain
standards. This measurement system will hold all parties accountable; the government will be
held accountable to ensuring the policy is effectively promoting conservation and incentivizing
renewable energy development, and companies will be held accountable to compliance with any
mitigation or compensatory mitigation strategies agreed upon in the project approval. This
strategy to measure impact and effectiveness will additionally be used to construct future policy
adaptations.
Policy Efficiency
The efficiency of the permitting policy can be determined by looking at quantitative statistics.
First, the time required for each project to receive a permit from the initial application to the start
of operation should be documented. The results should be aggregated to ensure that the time is
within the maximum time set as the goal for this policy. If the time to permit exceeds this
maximum for a significant number of projects, there must be investigation into the causes.
However, there must always be a balance between faster permitting and thorough environmental
assessment. Second, the cost of permitting must be documented to ensure that companies are
incentivized to develop renewable energy projects on land set aside specifically by the
government, and that cost to permit is not a deterrent. In addition, efficiency of permitting policy
depends on consistency between the initial proposal, design, and final construction. If the project
is approved based on the environmental assessment that is conducted with the information given
in the initial design, then it is imperative that these plans are followed. The inspection of the
project at the beginning of operation should clearly detail whether the environmental footprint
agrees with the initially projected ideas. If it does not coincide, the company must submit a
35

report of the reasons for any significant changes made in the design and how these changes
reduce further harm to the environment.
Policy Effectiveness
Ensuring that the policy is efficient does not necessarily mean that the policy is working towards
the overarching goals of energy production and conservation of natural habitat. To develop a
system of criteria that indicate progress towards policy goals, The Organization for Economic
Cooperation and Developments (OECD) strategy for green growth was used as a model. The
OECD is developing a method of measuring green growth using indicators of the main themes of
green growth: the natural asset base, the environmental productivity of the economy, the
environmental dimension of quality of life, and the socio-economic context (UNEP 2013). These
indicators can also serve as the foundation for a measurement strategy for Chilean renewable
energy policy.
1. Natural Asset Base
Analyzing the natural asset base will characterize the natural resources of an area to determine
threats from depletion and degradation which allows for the minimization of risk by
development. Analysis also focuses on whether the depletion of this resource harms growth,
which depends on whether the depletion can be compensated for in another asset (UNEP 2013).
In the proposed policy, characterization of threats to a natural asset base and possibilities for
compensatory mitigation should be completed during siting procedures. However, while this
information provides a baseline, continued monitoring of the natural assets must be conducted
throughout the lifespan of the project to ensure long-term compliance with the initial standards
set. If a compensatory mitigation strategy was deemed necessary, analysis of the natural asset
base will determine whether these compensatory efforts are actually having the desired effect on
the ecosystem.
2. Environmental and Resource Productivity
Secondly, data must be collected to research environmental and resource productivity, which
measures whether growth or output and consumption are achieved with fewer natural resource
inputs including less pollution and a lower reliance on environmental service (UNEP 2013).
This indicator will be used to measure the energy outputs of each renewable energy project in
Chile compared to the strain on environmental resources or biodiversity associated with the
project. This could then be used to find exceptional projects to inform future siting or
36

recommendations. In addition, a comparison with plants in operation before the implementation
of this policy would show whether the policy is effectively increasing renewable energy output
while minimizing negative environmental effects.
3. Environmental Quality of Life
Next, studies must be conducted to research the environmental quality of life which looks more
in-depth in other categories, such as air and water pollution. Environmental quality assessments
are crucial in determining whether there are any adverse effects caused by operation of the
project, especially in terms of negative effects on human health.
4. Socio-economic Context
Finally, the socio-economic context of the project must be characterized in order to measure the
impact of social inclusion programs that are incorporated into the policy. Measurement should
focus on exploring how public opinion about renewable energy projects has changed as a result
of awareness campaigns and the inclusion of all stakeholders in decisions. This analysis will also
focus on the creation of jobs in conservation and operation and maintenance of plants to
determine the effects on the local economy.
Monitoring
Analysis of these four indicators requires sustained monitoring of each project. Baseline data will
be collected during the initial siting to inform and develop environmental assessments of each
site. However, data collection must also be sustained throughout the duration of the project to
ensure that there are not new or unanticipated environmental threats. This system of data
collection must also be consistent so that data can be compared between different sites.

The Bureau of Land Management is currently working on a monitoring strategy for their
renewable energy projects that is based on their current Assessment, Inventory, and Monitoring
Strategy for general BLM land. Their strategy outlines processes including the development of
consistent ecosystem indicators, using a statistically valid sampling framework, integrating
remote sensing technology, and incorporating this data into comprehensive land management
plans (BLM 2011b). This strategy allows the BLM to assess the resources of the ecosystem,
determine the location and pattern of any disturbances, understand how these components should
affect policy for the area, and ultimately to determine if mitigation actions are contributing
towards the objectives laid out in the initial permit (BLM 2011b). This strategy could help
37

inform the data collection for characterization of the natural asset base. However, each indicator
will require a different method for monitoring, ranging from quantitative data collection to
surveys of the public.
Enforcement
For this policy to be successful there must also be clarity in the expectations of compliance and
the consequences for non-compliance. Continual monitoring will facilitate enforcement as the
characterization of the natural asset base and environmental resources will examine whether the
project has adhered to the proposed mitigation and compensatory mitigation strategies. Because
monitoring will be occurring regularly throughout the duration of the project, comprehensive
inspections should also happen more frequently. Currently, the Bureau of Land Management
reviews their Right of Way grants for the first time at the end of ten years and then at regular
intervals to determine if any changes need to be made to the grant. However, more frequent
inspections would ensure greater compliance with mitigation strategies and also provide
verification that the mitigation strategies are effective. If any inspections show non-compliance
with policy standards, then there must be consequences that were stipulated in the original
contract.




Key Recommendations
The government of Chile should:
Develop a strategy for measuring the impact of the policy after implementation
Measure the time and cost to receive a permit to determine policy efficiency
Monitor the natural asset base, environmental productivity, environmental quality of
life, and socio-economic context to determine policy effectiveness
Conduct long-term monitoring and frequent inspections
Ensure there is established protocol for cases of non-compliance

38

Conclusion

Chile is currently engaged in an unprecedented, collaborative effort to dramatically shift its
energy reliance to non-conventional renewable energy sources. In this process, Chile has the
opportunity to become a global leader in environmentally conscious project development and
implementation. To achieve this goal, Chilean policy must place its focus on conserving natural
resources and protecting the rights of local populations. This analysis has provided five policy
recommendations that guide NCRE projects through conception, planning, implementation, and
finally, long-term assessment and support. By driving conservation focus into policy, improving
permitting efficiency, emphasizing social inclusion, increasing agency collaboration, and
sustaining impact through measurement and enforcement, Chile can achieve rapid yet
responsible NCRE development that offers long-term protection for both the Chilean people and
the countrys invaluable natural resources. These recommendations provide the framework for
future dialogue within the Chilean Government in order to implement these suggestions into
effective policy. In doing so, Chile can achieve energy independence while providing a global
model for other countries to follow.
39

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