The Nevada State Engineer's Office has issued cease-and-desist letters to the developer of what will be the largest solar project in the state, accusing the company of illegally pulling water for construction from a nearby geothermal plant and a local rancher in Lyon County.

The state engineer's office sent a letter to Homestretch Geothermal LLC and Libra Solar LLC on Monday requiring the companies "'immediately CEASE AND DESIST' any diversion or use of water from the property described above for any purpose not authorized under Nevada law."

A second cease-and-desist letter was issued to a Yerington resident who was allowing the solar developer to pull water from a ditch running through her property.

Water use is strictly policed in Nevada, which is the driest state in the country and where water scarcity can determine the future of economic development projects. The basin where the solar project is located is already overtapped by agricultural users. A decade ago, the state engineer's office intervened with partial curtailment orders, prompting lawsuits from local agricultural producers.  

"The developers of Libra Solar are seeking a large amount of water in an overdrafted basin and seem so desperate to meet deadlines, they have resorted to illegal water use," Kevin Emmerich, founder of Basin and Range Watch, told The Nevada Independent in an emailed statement. 

On June 22, Division of Water Resources staff received two phone calls that water trucks were transporting water from Homestretch Geothermal LLC in Mason Valley for unpermitted uses, according to internal office memos shared with The Indy.

Representatives of Libra Solar and Homestretch Geothermal confirmed the water trucks were being used for the construction of the Libra Solar project, a $2.33 billion 700-megawatt solar and battery storage project on nearly 7,800 acres about 20 miles from the Fort Churchill substation in Lyon and Mineral counties.

Libra Solar is being developed by SB Energy and would be the largest solar and battery storage project in Nevada. It is estimated it would generate enough energy to power up to 212,000 households.

The project was originally approved under former President Joe Biden's administration, then frozen for several months by President Donald Trump's administration. In December, the Bureau of Land Management authorized revisions to the project to allow it to proceed.

Homestretch owns 11 permitted water rights, of which six are for industrial production from geothermal resources. The other five are for storage and secondary uses. After it is used, primary geothermal water is put into cooling ponds before being discharged into wetlands or used for irrigation.

None of the rights authorize construction-related uses.

Homestretch agreed to stop allowing the use of its water while necessary water right permits were obtained.

"That action does not resolve the underlying violation and does not preclude further State action if unauthorized diversion or use resumes," according to the state.

The solar company told the state in phone calls that it had entered into an agreement with the City of Yerington and that the contractors had been working independently to secure additional water.

In addition, on June 8, Division of Water Resources staff responded to reports of water illegally being pulled from a ditch for the projects. The incident involved the federal water master, the water rights holder and her grandson, and three contractors.

The contractors, one of whom was involved in the other diversion, said they had entered into an agreement with the landowner to use a portion of her decree water and groundwater for construction at Libra Solar. Libra Solar has a temporary permit to pull water from a City of Yerington municipal well but that well was not able to produce the water they needed for construction, according to the contractors. 

The landowner said she intended to fallow one of her fields, "so it made sense for her to temporarily let Libra Solar purchase and use that water for their project."

After being told by state staff that a permit is required for the water use, "regardless of any agreement that may exist between the company and the landowner the contractors emptied the trucks already filled and left the property."

Entities were given until July 31 to confirm compliance.