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Ormat Technologies

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24 How We Work – Respectfully and Responsibly Above you read about how Ormat’s technology has a profound and positive impact on the environment. We take this even further, by going to great lengths to minimize and mitigate our impact on the environment, adhere to all regulations in each of the different countries we operate in and by going beyond legal requirements. Compliance with Environmental Legislation The countries in which Ormat operates have local environmental protection laws regulating the following: • The effect on the environment outside of the power plant, including restrictions on noise, air emissions and discharge of pollutants and contaminants; • Air quality and noise levels inside our power plants, in order to protect employees; and, • Safety and general requirements, including ventilation, fire protection, personal protection, railings, electric protection, and employee training on pertinent issues. Ormat maps and monitors all laws regulating all of our sites and maintains a multi-year plan for the continuous improvement of our environmental performance. In addition to meeting all legal and regulatory requirements in the multiple jurisdictions in which we operate, Ormat meets the exacting standards of various international operating guidelines and has earned ISO14001 certification. Ormat’s general liability insurance policy provides coverage for unexpected events. Under this policy, Ormat’s insurers will cover environmental damage to third parties resulting from unexpected events that do not involve negligence. In the 2012-2013 reporting period, neither Ormat nor its officers were involved in legal or administrative proceedings relating to environmental issues. Minimizing Impacts to Local Resources Ormat minimizes our facility footprint in the U.S. by operating in accordance with National Environmental Policy Act (40 CRS 1500.1) if sited on public land. Ormat interacts with various government and regulatory agencies in the US, most frequently with the federal Bureau of Land Management (BLM), as well as with the U.S. Forest Service (USFS) and the Department of Defense (DOD). Other federal agencies we consult with on proposed geothermal projects or during permitting application and review processes may include: • U.S. Fish and Wildlife Service (USFWS) • U.S. Army Corp of Engineers (ACOE) • Advisory Council on Historic Preservation (ACHP) • U.S. Environmental Protection Agency (EPA) • Department of Energy (DOE) • National Park Service (NPS) • State Historic Preservation Office (SHPO) Environmental Incidents Ormat’s facilities and the people who operate them strive to work in full compliance with all applicable environmental regulations. Despite our best efforts, sometimes exceedances (emissions beyond what a facility is licensed to emit), spills or other incidents may occur. That’s why Ormat continually monitors facility performance and reports any incidents that may occur. Close monitoring of our environmental performance provides the information necessary to improve or modify procedures to prevent future incidents. Innovative Mitigation Practices at McGinness Hills Ormat successfully commissioned our new 38 MW McGinness Hills geothermal power plant complex in Lander County, Nevada in June 2012. Ormat Technologies, Inc. 2012-2013 Sustainability Report When developing geothermal facilities, Ormat’s preferred approach is to avoid biological and cultural resources and other sensitive areas. During the construction planning and siting of facility locations at McGinness Hills, Ormat took a number of measures to reduce a wide range of potential impacts. These included measures such as drilling multiple geothermal wells from one well pad, routing piping along existing roadways and power plants, co-locating power plants, pipes and road systems and using overland travel versus new roadway construction, wherever possible. All help reduce the development’s operational and environmental “footprint”. Significant populations of Greater Sage Grouse inhabit the desert near McGinness Hills and while not listed as endangered species, the birds are currently classified as “warranted but precluded” by the US Department of the Interior. Accordingly, Ormat adopted a series of proactive protective measures to ensure the continued viability of Greater Sage Grouse in the area during both construction and ongoing operation of the McGinniss Hills facility, similar to the protective measures we applied when constructing the Tuscarura power plant. (See our 2010-2011 Sustainability Report for more information.) Operations and noise limitations were imposed during facility construction during the Greater Sage Grouse mating season, by establishing construction and drilling hours controls and fencing to reduce noise volumes from the plants. In addition, underground sections of piping were installed to ease the movement of wildlife. Ormat invested million in mitigation and soft costs during drilling and construction and plans to invest additional millions in ongoing wildlife monitoring and mitigation over the next decade. Wildlife Working Groups Ormat is an active participant in Wildlife Working Groups, in cooperation with the U.S. Bureau of Land Management and the Nevada Department of Wildlife. The goal of this collaborative effort is to direct, oversee and monitor the allocation of mitigation funds created for geothermal development projects. The group also strives to develop proactive efforts that will provide a model for future development in Greater Sage Grouse critical areas. Ormat’s 38 MW McGinness Hills power plant in NV, USA and the Greater Sage Grouse 25

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