[Federal Register Volume 59, Number 128 (Wednesday, July 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15980]


[[Page Unknown]]

[Federal Register: July 6, 1994]


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DEPARTMENT OF ENERGY
Western Area Power Administration

 

National Defense Authorization Act Proposed Procedures--Central 
Valley Project, California

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Procedures to Implement Section 2929 of the 
1994 National Defense Authorization Act (National Defense Authorization 
Act, Pub. L. No. 103-160, 107 Stat. 1547, 1935 (1993)).

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SUMMARY: The Western Area Power Administration (Western), a Federal 
power marketing agency of the Department of Energy (DOE), has developed 
proposed procedures to fulfill the requirements of section 2929 of the 
National Defense Authorization Act for fiscal year 1994 (National 
Defense Authorization Act, Pub. L. No. 103-160, 107 Stat. 1547, 1935 
(1993)) (NDA Act). Under the proposed procedures to implement the 
requirements of the NDA Act, Western would allocate up to 119.223 
megawatts (MW) of Power from the Central Valley Project (CVP), which 
represents the amount of CVP Power provided as of November 30, 1993, to 
military installations. The NDA Act was signed into public law on 
November 30, 1993. Section 2929 of the NDA Act provides that, for a 10-
year period beginning on November 30, 1993, the electric power 
allocations provided as of November 30, 1993, by Western from the CVP 
to military installations in the State of California which have been 
closed or approved for closure pursuant to the Defense Base Closure and 
Realignment Act of 1990 (part A, Title XXIX, Pub. L. 101-510; 10 U.S.C. 
2687 note) (1990 Act) shall be reserved for sale through Long-Term 
Contracts to Preference Entities which agree to use such Power to 
promote economic development at a military installation that is closed 
or approved for closure pursuant to the 1990 Act. To the extent Power 
reserved by the NDA Act is not disposed of through Long-Term Contracts, 
it shall be made available on a temporary basis during such 10-year 
period to military installations in the State of California through 
Short-Term Contracts. By implementing these Procedures, Western will 
establish the criteria to allocate the Power made available as a result 
of the NDA Act.
    The procedures set forth in this Federal Register will explain in 
detail how Western intends to implement the NDA Act. Under the proposed 
NDA Act Procedures, Western has identified the Power that will be 
classified as NDA Act Power and the types of services and contracts 
that will be offered. Also set forth under the proposed NDA Act 
Procedures are the general eligibility criteria that Western will apply 
to all applicants requesting an Allocation of NDA Act Power, and the 
procedures to be used by applicants when applying for NDA Act Power, 
which include demonstration that certain economic development criteria 
are being met. Lastly, Western has set forth the procedures that will 
be used in allocating NDA Act Power to eligible applicants, including a 
priority list developed by Western for allocating NDA Act Power. In 
general, the proposed Procedures provide that the allocation of CVP 
Power as of November 30, 1993, at a military installation that is 
closed or approved for closure under the 1990 Act will be classified as 
NDA Act Power and will be reserved through November 30, 2003, for use 
at that military installation. Until the NDA Act Power is fully 
utilized at that military installation, the NDA Act Power will be made 
available on a temporary basis as described in Section G.1. of the NDA 
Act Procedures.
    NDA Act Power will be available to the following types of entities, 
in the following priority:
    1. First for a military load at a Closed Military Installation that 
received CVP Power as of November 30, 1993, or to qualified preference 
entities promoting economic development at such closed military 
installation.
    2. Second, on a recallable basis with 3 years' notice, to a 
qualified preference entity promoting economic development at a Closed 
Military Installation that did not have CVP Power as of November 30, 
1993.
    3. Third, on a recallable basis with 6 months' notice, to a 
military branch which had CVP Power at a Closed Military Installation 
as of November 30, 1993, for use within that military branch at a 
military installation within the CVP marketing area.
    4. Fourth, on a recallable basis with 6 months' notice, to any 
military branch for use at a military installation within the CVP 
marketing area, or to a negatively affected customer.

DATES: The comment period on the proposed procedures will begin with 
the publication of this notice in the Federal Register and will end 
August 10, 1994. To be assured consideration, all written comments 
should be received by Western by the end of the comment period. Western 
will hold a public information forum on the proposed NDA Act Procedures 
at 9 a.m. on July 27, 1994. A public comment forum on the proposed NDA 
Act Procedures will follow at 1 p.m. on July 27, 1994. The forums will 
be held at the Holiday Inn-Holidome, 5321 Date Avenue, Sacramento, 
California.

ADDRESSES: All written comments regarding the proposed procedures to 
implement the requirements of the NDA Act should be directed to Mr. 
James C. Feider, Area Manager, Sacramento Area Office, Western Area 
Power Administration, 1825 Bell Street, Suite 105, Sacramento, CA 
95825-1097. All documentation developed or retained by Western for the 
purpose of developing these procedures will be available for inspection 
and copying at the Sacramento Area Office located at the above address.

FOR FURTHER INFORMATION CONTACT: Zola M. Jackson, Assistant Area 
Manager for Power Marketing, Sacramento Area Office, Western Area Power 
Administration, 1825 Bell Street, Suite 105, Sacramento, CA 95825-1097, 
(916) 649-4421.
    After all public comments have been thoroughly considered, Western 
will prepare and publish the final NDA Act Procedures in the Federal 
Register.

SUPPLEMENTARY INFORMATION: On October 5, 1992, Western's Sacramento 
Area Office published notice of the Final 1994 Power Marketing Plan, 
Central Valley Project, California (57 FR 45782), governing allocations 
of 529.946 MW of Power from the CVP. That notice provided the final 
allocation of a total of 119.223 MW of Power to certain Department of 
Defense (DOD) military installations, as specified in Appendix A 
herein. Contracts for such Power were entered into for a term ending 
December 31, 2004. The power contracts with the DOD agencies allow for 
certain shifts of Power among military installations with approval by 
Western. Effective November 30, 1993, such shifts became subject to the 
NDA Act.
    As of the date of publication of this Federal Register, the 
following military installations are scheduled to close pursuant to the 
1990 Act: 

------------------------------------------------------------------------
                                                 Type III               
     Military installations        Long-term   withdrawable     Total   
                                  firm power                            
------------------------------------------------------------------------
Naval Air Station, Moffett                                              
 Field, CA......................        4.170         2.270        6.440
Naval Station, Treasure Island,                                         
 CA.............................        3.020         2.581        5.601
Naval Shipyard, Mare Island,                                            
 Vallejo, CA....................       20.020         2.148       22.168
    Totals......................       27.210         6.999      34.209 
------------------------------------------------------------------------


    Western is providing notice by this Federal Register that 34.209 MW 
of the total possible 119.223 MW (as shown in Appendix A) will be 
allocated pursuant to the final NDA Act Procedures on a first-come, 
first-served basis beginning 30 days after publication of the final 
procedures. As any of the remaining amount of 85.014 MW becomes 
available for allocation, pursuant to the NDA Act, Western will provide 
notification of the availability of that Power.

Proposed Procedures for the NDA Act

    These proposed procedures address how Western plans to allocate up 
to 119.223 MW of CVP contract rate of delivery (CROD) provided as of 
November 30, 1993, to military installations closed or approved for 
closure pursuant to the 1990 Act. When determining who will receive 
Allocations of Power, Western will exercise its discretion as provided 
by law.

A. Acronyms and Definitions

    As used herein, the following acronyms and definitions when used in 
initial capitalization, whether singular or plural, shall have the 
following meanings:
    Allocation: An offer by Western to sell to an applicant a specified 
type and quantity of NDA Act Power made available by Western in 
accordance with the final NDA Act Procedures.
    Allottee: A Preference Entity receiving an Allocation pursuant to 
the final NDA Act Procedures.
    Closed Military Installation: A military installation in the CVP 
Marketing Area which is closed or approved for closure pursuant to the 
1990 Act.
    Contract Rate of Delivery (CROD): The maximum amount of Power 
served by Western on an annual basis under contract between a 
contractor and Western, and as it may be reduced or increased in 
accordance with applicable law or contractual terms.
    Contract 2948A: Contract No. 14-06-200-2948A between the Pacific 
Gas and Electric Company and Western, which provides for certain sales, 
exchanges, and transmission of electric Power.
    CVP: The Central Valley Project, a multipurpose Federal water 
development project extending from the Cascade Range in northern 
California to the plains along the Kern River south of Bakersfield, 
operated by the Bureau of Reclamation.
    CVP Marketing Area: The area which generally encompasses the CVP 
water basin in northern and central California extending from the 
Cascade Range in northern California to the plains along the Kern River 
south of Bakersfield.
    Final Withdrawal Procedures: Those procedures published in the 
Federal Register on March 5, 1986 (51 FR 7702), which specify the 
methods to be used by Western for the adjustment of CROD under varying 
circumstances.
    Long-Term Contract: A contract offered to a Preference Entity who 
is promoting an economic development project at either a Priority-One 
Base or a Priority-Two Base.
    Long-Term Firm NDA Act Power: Firm Power allocated by Western and 
subject to the terms and conditions specified in an electric service 
contract and the final NDA Act Procedures.
    Marketing Plan: The Final 1994 Power Marketing Plan, Central Valley 
Project, California (57 FR 45782).
    NDA Act Power: The CVP CROD, in the amounts set forth in Appendix 
A, which shall be determined to be NDA Act Power by Western based on 
the following two conditions: (1) such CVP CROD was under contract to 
military installations in the CVP Marketing Area as of November 30, 
1993, and (2) the military installations with such CVP CROD are closed 
or approved for closure pursuant to the 1990 Act.
    NDA Act Power Entitlement: An amount of NDA Act Power equal to the 
amount of CVP CROD under contract with a Priority-One base as of 
November 30, 1993.
    NDA Act Procedures: Those procedures adopted by Western to fulfill 
the requirements of the NDA Act.
    Negatively Affected Customer: A Preference Entity with a contract 
for CVP Power from Western as of November 30, 1993, which is 
detrimentally affected as a result of a Closed Military Installation 
which is located within the service area of such Preference Entity.
    Pacific Gas and Electric Company (PG&E): The investor-owned utility 
having a service area in northern and central California and load 
control responsibility for the northern and central California area.
    Power: Capacity and associated energy.
    Preference Entity: An entity that meets the requirements of 
Reclamation Law, which provides that preference shall be given to 
municipalities and other public corporations or agencies; and also to 
cooperatives and other nonprofit organizations financed in whole or in 
part by loans made pursuant to the Rural Electrification Act of 1936 
(Reclamation Act of 1939, section 9(c), 43 U.S.C. 485h(c)).
    Priority-One Base: A Closed Military Installation with CVP CROD as 
of November 30, 1993.
    Priority-Three Base: A military installation, not scheduled for 
closure, which meets the eligibility criteria set forth in the 
Marketing Plan.
    Priority-Two Base: A Closed Military Installation without a CVP 
CROD.
    Short-Term Contract: A contract offered on a temporary basis to a 
Preference Entity at a Priority-Three Base or to a Negatively Affected 
Customer.
    Type III Withdrawable NDA Act Power: Firm Power which is 
withdrawable to protect the 1,152-MW Load Level before withdrawal of 
other types of noninterruptible Power and which is subject to 
additional terms and conditions specified in an electric service 
contract.
    Unutilized NDA Act Power: NDA Act Power which is not allocated 
under the final NDA Act Procedures.
    Western: Western Area Power Administration, United States 
Department of Energy (DOE), a Federal power marketing administration 
responsible for marketing the surplus generation from Federal 
hydroelectric multipurpose projects pursuant to Reclamation Law and the 
DOE Organization Act (91 Stat. 565, 42 U.S.C. Sec. 7101 et seq.).
    1,152-MW Load Level: The maximum simultaneous demand that Western 
provides, and that PG&E is obligated to support, in accordance with the 
terms of Contract 2948A.

B. Reclassification of CVP CROD to NDA Act Power

    If at any time through November 30, 2003, an amount of CVP CROD set 
forth in Appendix A is determined to be NDA Act Power by Western, 
Western will administratively reclassify that amount of CVP CROD to NDA 
Act Power. Western shall recall that amount of CVP CROD from the 
military branch with a contractual right for that CVP CROD, and Western 
shall amend the associated contract to reflect the recall of that 
amount of reclassified CROD. At that time, Western shall offer the 
military branch the right to shift any remaining CVP CROD among the 
bases with CVP CROD at the time of the recall. The NDA Act Power will 
be offered to the military branch it was recalled from, under a short-
term contract, subject to Western allocating all or part of such NDA 
Act Power first to a qualified applicant with a greater right to such 
NDA Act Power pursuant to the final NDA Act Procedures.

C. Types of Service

1. Long-Term Firm NDA Act Power
    Western proposes to allocate up to a total of 106.000 MW as Long-
Term Firm NDA Act Power (identified in Appendix A), as such Power 
becomes available due to base closures pursuant to the 1990 Act.
2. Type III Withdrawable NDA Act Power
    Western proposes to allocate up to a total of 13.223 MW as Type III 
Withdrawable NDA Act Power (identified in Appendix A), as such Power 
becomes available due to base closures pursuant to the 1990 Act.

D. Types of Contracts

1. Long-Term Contracts
    Long-Term Contracts may be offered to Preference Entities promoting 
an economic development project at a Closed Military Installation. The 
termination date of any such contract shall be no later than December 
31, 2004, and such contracts shall be subject to the final NDA Act 
Procedures and the Final Withdrawal Procedures.
2. Short-Term Contracts
    Short-Term Contracts may be offered to Preference Entities at a 
Priority-Three Base or to a Negatively Affected Customer. Western shall 
have the right to recall all or any part of the NDA Act Power CROD 
under such Short-Term Contract upon giving 6 months' written notice. 
The termination date of the contract shall be no later than December 
31, 2004, and such contract shall be subject to the final NDA Act 
Procedures and the Final Withdrawal Procedures.

E. General Eligibility Criteria

    General eligibility criteria apply to applicants seeking an 
Allocation of NDA Act Power under the final NDA Act Procedures. 
Criteria 1 through 6 shall apply to applicants who are promoting an 
economic development project at a Closed Military Installation. 
Criteria 4 through 7 shall apply to all other applicants seeking an 
Allocation of NDA Act Power.
    1. Applicant must have an economic development project plan that 
fulfills the following criteria:
    (i) Promotes the establishment or expansion of industrial, 
commercial, or governmental facilities at the Closed Military 
Installation, and
    (ii) Helps create or retain jobs in the near term and assists in 
the creation of additional long-term employment opportunities. The 
economic development project plan must include a specific plan for 
hiring the unemployed and underemployed persons from the area near the 
Closed Military Installation, and
    (iii) Has been approved by the appropriate governing body of the 
military installation in which it is, or will be, located and has 
community support, which is demonstrated by appropriate local 
government agency's written approval of the economic development 
project plan, and
    (iv) Is supported by public and/or private sector investment and 
can present evidence of adequate funding, and
    (v) Demonstrates that necessary permits, land acquisitions, or 
options on land and right-of-way have been obtained; demonstrates 
either that ownership or a long-term lease of the electrical 
distribution system has been obtained; and demonstrates that all other 
legal requirements of the application process have been satisfied.
    2. The economic development project must occur at a Closed Military 
Installation.
    3. Applicant must provide documentation certifying that the entity 
operating the economic development project is eligible to exist and 
operate at the Closed Military Installation that is the site of the 
economic development project.
    4. Applicant must qualify as a Preference Entity.
    5. Applicant must be located within the CVP Marketing Area.
    6. An applicant's load at each delivery point shall be no less than 
an annual peak of 500 kW.
    7. Those applicants applying for NDA Act Power to be used at a 
Priority-Three Base must exist and operate and be ready, willing, and 
able to receive and use, or receive and distribute such NDA Act Power 
beginning on the date of application. Those applicants applying for NDA 
Act Power as a Negatively Affected Customer must be a Preference Entity 
with a contract for CVP Power from Western as of November 30, 1993.

F. Applications for NDA Act Power

    Prospective applicants may begin requesting NDA Act Power from 
Western at any time later than 30 days after publication of the Federal 
Register notice detailing the final NDA Act Procedures, except that 
requests for applications will not be considered after November 30, 
2003. Requests shall be considered on a first-come, first-served basis.
1. Letter of Interest
    (i) To be considered for NDA Act Power, each prospective applicant 
must first submit to the Area Manager, Sacramento Area Office, a letter 
of interest in receiving NDA Act Power. In the letter of interest, the 
prospective applicant must indicate whether it is either a Preference 
Entity requesting an allocation of NDA Act Power for use at a Priority-
One, Priority-Two, or Priority-Three Base, or a Negatively Affected 
Customer.
    (A) For Preference Entities requesting an allocation of NDA Act 
Power to be used at a Priority-One, Priority-Two, or Priority-Three 
Base, the letter of interest must also indicate the Closed Military 
Installation where the NDA Act Power will be used, and the estimated 
date when the economic development project plan will be completed.
    (B) Negatively Affected Customers must also identify in the letter 
of interest, the Closed Military Installation that is located within 
its service area and the direct effects of the closing of that military 
installation on the Negatively Affected Customer.
    (ii) If the letter of interest does not meet the criteria set forth 
in F.1.(i) (A) and (B) above, Western will notify the requestor within 
60 days of receiving the request.
    (iii) If the letter of interest meets the criteria set forth in 
F.1.(i) (A) and (B) above, Western will determine whether NDA Act Power 
can be made available to meet the request.
    (A) If NDA Act Power is available, Western shall mail an applicant 
profile data (APD) form to the prospective applicant within 60 days of 
receiving the request. A completed application package which contains 
all of the information listed on the APD will be required. This ensures 
that Western will have a uniform basis upon which to evaluate the 
applications.
    (B) If NDA Act Power is not available, Western will send a letter 
to the prospective applicant within 60 days of receiving the letter of 
interest. This letter will state that there is no NDA Act Power 
currently available to meet the request. Western will place the 
prospective applicant's name on a list of interested parties. At any 
time that NDA Act Power becomes available, Western will send a notice 
of availability to all interested parties from which Western has 
received a letter of interest and mail an APD form to the prospective 
applicant.
2. Applicant Profile Data (APD):
    The content and format of the APD is outlined below. The 
information should be submitted in the sequence listed. The applicant 
must provide all requested information or the most reasonable estimates 
that are available. The applicant should note any requested information 
that is not applicable or not available. The APD must be typed and two 
copies submitted by certified mail to the address provided by Western's 
Sacramento Area Office. The burden of ensuring consistency of the 
content of both copies rests with the applicant. Western is not 
responsible for errors in data or missing pages.
     All items of information in the APD should be answered as if 
prepared by the organization seeking the Allocation. The application 
package shall consist of the following:
    (i) Applicant.
    (A) Applicant's name and address.
    (B) Person(s) representing applicant: Please provide the name, 
address, title, and telephone number of such person(s).
    (C) Type of organization: For example, municipality, rural electric 
cooperative, irrigation district, State agency, or Federal agency.
    (D) Parent organization.
    (E) Names of members.
    (F) Applicable law under which organization was established.
    (ii) The proposed economic development project plan, including the 
name of the military installation on which the economic development 
project is proposed.
    (iii) Documentation certifying that the entity operating the 
economic development project is eligible to exist and operate at the 
Closed Military Installation.
    (iv) Service Requested:
    The amount of electrical service requested.
    (v) Loads:
    Projected maximum demand (kilowatts (kW)) and energy use 
(kilowatthours (kWh)) for each month for a period of 5 calendar years, 
beginning on the proposed date that the economic development project 
begins operating.
    (vi) Transmission:
    (A) Points of delivery: Provide the preferred point(s) of delivery 
on Western's system or a third-party's system, the required voltage of 
service, and the capacity desired at each point of delivery.
    (B) Transmission arrangements: Describe the transmission 
arrangements necessary to deliver Power to the requested points of 
delivery.
    (vii) Other Information:
    The applicant is welcome to provide any other information pertinent 
to receiving an Allocation.
    (viii) Signature:
    The signature and title of an appropriate official who is able to 
attest to the validity of the information submitted and who is 
authorized to submit the application is required.
3. Western's Consideration of Applications
    (i) When the application package is received by Western, Western 
will verify that the general eligibility criteria set forth in Section 
E. have been met, and that all items requested in the APD have been 
provided.
    (A) Western will request in writing additional information from any 
applicant whose application package is determined to be deficient. The 
applicant shall have 60 days from the postmark date on Western's 
request to provide the information.
    (B) If Western determines that the applicant does not meet the 
general eligibility criteria, Western will send (within 60 days of 
Western's receipt of the application package) a letter explaining why 
the applicant did not qualify.
    (C) If the applicant has met the general eligibility criteria, 
Western will determine the amount of Power to be allocated pursuant to 
the general allocation and contract principles set forth in Section G. 
Western will send a draft contract to the applicant for review which 
identifies the terms and conditions of the offer and the amounts and 
types of available Power.
    (ii) All NDA Act Power shall be allocated according to the 
procedures set forth in the general allocation and contract principles.
    (iii) If Western determines that reallocations are necessary to 
fulfill the applicant's request, Western will initiate the reallocation 
procedures set forth in the general allocation and contract principles.
    (iv) In the event that two or more applicants are requesting NDA 
Act Power and Western does not have enough NDA Act Power available to 
meet those requests, Western shall use its discretion to determine the 
amounts of NDA Act Power to be allocated. Western shall use information 
contained in the application package, including, if applicable, the 
economic development project plan to make its decision.
    (v) Western reserves the right to determine the amount of NDA Act 
Power to allocate to an applicant, as justified by the applicant in its 
application package, including, if applicable, the economic development 
project plan. As loads increase at a Priority-One Base, the Allottee 
may request and Western may allocate any amount of NDA Act Power up to 
the Priority-One Base's NDA Act Power Entitlement to meet such increase 
in loads. If necessary, Western may recall NDA Act Power under the 
general allocation and contract principles to allocate to the Priority-
One Base.

G. General Allocation and Contract Principles

    The general allocation criteria and contract principles established 
in the Marketing Plan shall apply to Allocations of NDA Act Power. To 
meet the specific requirements of the NDA Act, Western shall also apply 
the following allocation criteria to all applicants seeking an 
Allocation of NDA Act Power. All Allocations of NDA Act Power shall be 
at the sole discretion of Western and shall be determined on a case-by-
case basis.
    Allocations of NDA Act Power will be made in amounts solely 
determined by Western, subject to the final NDA Act Procedures.
    1. Allocation Rights:
    Western will allocate NDA Act Power to qualified applicants based 
on the following hierarchy:
    (i) First, for a military load at a Priority-One Base, or to 
qualified Preference Entities promoting economic development at a 
Priority-One Base.
    Such first right to NDA Act Power will be limited to the NDA Act 
Power Entitlement designated for a Priority-One Base.
    (ii) Second, to a Preference Entity at a Priority-One Base for 
amounts in excess of the NDA Act Power Entitlement for such base, to 
serve a military load or to promote an economic development project; or 
to a Preference Entity promoting an economic development project at a 
Priority-Two Base.
    NDA Act Power allocated under this paragraph will be subject to 
recall upon a 3-year written notice in order to fulfill an Allocation 
to a Priority-One Base which has not fully utilized its NDA Act Power 
Entitlement under G.1.(i) above.
    (iii) Third, to a military branch which had a CVP CROD at a Closed 
Military Installation as of November 30, 1993, for use at a Priority-
Three Base within that military branch within the CVP Marketing Area.
    NDA Act Power allocated under this paragraph will be subject to 
recall upon a 6-month written notice in order to serve a Priority-One 
or Priority-Two Base.
    (iv) Fourth, to any military branch for use at a Priority-Three 
Base within the CVP Marketing Area, or to a Negatively Affected 
Customer.
    NDA Act Power allocated under this subparagraph will be subject to 
recall upon a 6-month written notice to serve a Priority-One or 
Priority-Two Base, or a Priority-Three Base pursuant to G.1.(iii) 
above.
2. Allocation of NDA Act Power
    Western will use the following procedures to allocate NDA Act Power 
to a qualified applicant:
    (i) Western will determine whether sufficient Unutilized NDA Act 
Power is available to fulfill the applicant's request.
    (ii) If sufficient Unutilized NDA Act Power is available to fulfill 
the applicant's request, Western shall allocate the amount needed.
    (iii) If sufficient Unutilized NDA Act Power is not available to 
fulfill the applicant's request, Western shall allocate all Unutilized 
NDA Act Power and recall and reallocate NDA Act Power CROD to fulfill 
the request by following the reallocation procedures stated in G.3. 
below.
    (iv) To ensure the most equitable distribution of long-term firm 
NDA Act and Type III Withdrawable NDA Act Power, Western proposes that 
each Allocation of NDA Act Power shall be determined as follows:

TN06JY94.023


TN06JY94.024

D is defined as Long-Term Firm NDA Act Power available at the time of 
the Allocation.
E is defined as Type III Withdrawable NDA Act Power available at the 
time of the Allocation.
    If using the above procedure would result in an Allocation of Long-
Term Firm NDA Act Power which is less than 500 kW, Western will modify 
the procedure to ensure that the Allottee receives a minimum of 500 kW 
of Long-Term Firm NDA Act Power.
    (v) Allocations will be made only to those applicants who qualify 
pursuant to the final NDA Act Procedures. The NDA Act Power must be 
used at a Closed Military Installation or a Priority-Three Base, or the 
NDA Act Power must be used by a Negatively Affected Customer.
    (vi) The Allottee has the right to purchase NDA Act Power only when 
a new electric service contract between Western and the Allottee has 
been executed and when all conditions precedent in that contract have 
been satisfied.
    (vii) To consummate any Allocation of NDA Act Power, an electric 
service contract shall be executed within 6 months of a contract offer 
by Western, unless otherwise agreed in writing by Western.
    (viii) Western reserves the right to recall any amount of NDA Act 
Power CROD from an Allottee if the NDA Act Power CROD allocated is in 
excess of the loads being served by the Allottee.
    (ix) Subject to the final NDA Act Procedures, Western's 
Administrator has the sole discretion to reallocate any NDA Act Power 
CROD that becomes available for marketing if an Allottee has failed to 
accept a contract within the period allowed, or if a contract has 
terminated, subject to the final NDA Act Procedures.
3. Reallocation Procedures
    When Western must recall NDA Act Power CROD in order to meet a 
request for NDA Act Power, Western will use the following procedures 
and hierarchy:
    (i) Allottees receiving Power pursuant to section G.1.(iv) above. 
This Power is subject to recall by Western upon a 6-month written 
notice.
    (ii) Allottees receiving Power pursuant to section G.1.(iii) above. 
This Power is subject to recall by Western upon a 6-month written 
notice.
    (iii) Allottees receiving Power pursuant to section G.1.(ii) above. 
This Power is subject to recall by Western upon a 3-year written 
notice.
    (iv) If Western determines that a partial recall of NDA Act Power 
from any of the priority groups identified above is necessary to 
fulfill the request, Western shall apply the following formula to 
determine the amount of NDA Act Power to be recalled from each 
Allottee.

TN06JY94.025

A is defined as each Allottee's contribution to the sum of the NDA Act 
Power CROD for all Allottees in the priority group.
B is the sum of all Allottees' NDA Act Power CROD in the priority 
group.
C is the requested amount to be recalled from the priority group.
4. Withdrawal Procedures
    When Western is required to initiate withdrawals of Type III 
Withdrawable NDA Act Power pursuant to the Final Withdrawal Procedures, 
Western shall determine the amount to be withdrawn from each Allottee 
by using the Final Withdrawal Procedures. Western will then total the 
amounts to be withdrawn from each Allottee and will use the following 
hierarchy to initiate withdrawals of the Type III Withdrawable NDA Act 
Power:
    (i) Allottees receiving Power pursuant to section G.1.(iv).
    (ii) Allottees receiving Power pursuant to section G.1.(iii).
    (iii) Allottees receiving Power pursuant to section G.1.(ii).
    (iv) Allottees receiving Power pursuant to section G.1.(i).
    (v) If Western determines that a partial withdrawal of Type III 
Withdrawable NDA Act Power from any of the above-mentioned groups is 
necessary, Western shall apply the following formula to determine the 
amount of Type III Withdrawable NDA Act Power to be withdrawn.

TN06JY94.026

A is defined as each Allottee's contribution to the sum of the Type III 
Withdrawable NDA Act Power for all the Allottees within the group.
B is the sum of all Allottees' Type III Withdrawable NDA Act Power 
within the group.
C is the requested amount of Type III Withdrawable NDA Act Power to be 
withdrawn from the group.
5. Contract Terms for the Purpose of NDA Act Power
    (i) Long-Term Contracts:
    Western proposes that Long-Term Contracts entered into under the 
final NDA Act Procedures shall provide for electric service for a 
period ending by December 31, 2004, and be subject to the reallocation 
procedures set forth in the final NDA Act Procedures. The effective 
date of the Long-Term Contract shall be determined by Western at the 
time of the contract offer. To abide by the requirements of the NDA 
Act, Western shall have the right to recall all or any part of the NDA 
Act Power CROD.
    (ii) Short-Term Contracts:
    Western proposes that Short-Term Contracts entered into under the 
final NDA Act Procedures shall provide for electric service during a 
temporary period ending by December 31, 2004, subject to the 
reallocation procedures set forth in the final NDA Act Procedures. The 
effective date of the Short-Term Contract shall be determined by 
Western at the time of the contract offer. To abide by the requirements 
of the NDA Act, Western shall have the right to recall all or any part 
of the NDA Act Power CROD.
    (iii) For any applicant requesting NDA Act Power to be used for an 
economic development project, the point of delivery for the NDA Act 
Power must be at the Closed Military Installation where the NDA Act 
Power will be used, unless otherwise agreed to by Western.
    (iv) The minimum Long-Term Firm NDA Act Power CROD shall be 500 kW.
    (v) Transmission Service:
    All transmission arrangements beyond Western's CVP system are the 
full responsibility of the Allottee. Western will assist the Allottee 
in obtaining third-party transmission arrangements with PG&E for 
delivery of Power allocated under the final NDA Act Procedures. 
Nonetheless, each Allottee is ultimately responsible for obtaining its 
own delivery arrangements. Western reserves the right to terminate a 
contract if the Allottee is unable to arrange for the transmission 
necessary to receive the CROD within 6 months of the execution of the 
contract.
    (vi) For those Allottees that receive NDA Act Power to be used at a 
Closed Military Installation, the following provisions must be complied 
with:
    (A) Western reserves the right to terminate a contract if the 
Allottee cannot demonstrate that it is using the NDA Act Power for an 
economic development project within 1 year of the execution of the 
contract, unless otherwise agreed.
    (B) The Allottee must provide a report to Western each January 15, 
which describes the benefits of the NDA Act Power CROD being passed on 
to the organization operating the economic development project. This 
report must be provided to Western in such a way that Western can 
separately identify the composite energy and capacity costs stated in 
mills per kWh of NDA Act Power and non-NDA Act Power. The report must 
also show that the economic development project is still in operation.
    (C) Western, at its sole discretion, shall have the right to either 
withdraw NDA Act Power or terminate its contract with the Allottee upon 
30 days' written notice if the Allottee does not comply with 
G.5.(vi)(B) above for each year of the contract.
    (vii) Standard Provisions:
    The contracts entered into as a result of the final NDA Act 
Procedures will incorporate Western's standard provisions for power 
sales contracts, resale of electric energy, and conservation and 
renewable energy in addition to the General Power Contract Provisions. 
Western is in the process of developing procedures to require that all 
long-term firm customers develop an integrated resource plan consistent 
with the Energy Policy Act of 1992. It is anticipated that these 
procedures will be effective in late 1994.

                               Appendix A                               
[The military installations receiving CVP Power and their respective CVP
            CRODs as of November 30, 1993, are listed below]            
------------------------------------------------------------------------
                                   Long-term     Type III               
     Military installations        firm power  withdrawable     Total   
------------------------------------------------------------------------
Parks Reserve Forces Training                                           
 Area, Dublin, CA...............        0.500  ............        0.500
Defense Distribution Depot, San                                         
 Joaquin, CA (Sharpe Facility)..        4.000  ............        4.000
Defense Distribution Depot, San                                         
 Joaquin, CA (Tracy Facility)...        3.800  ............        3.800
Naval Weapons Station, Concord,                                         
 CA.............................        2.170         0.098        2.268
Naval Radio Station, Dixon, CA..        1.040  ............        1.040
Naval Air Station, Lemoore, CA..       16.000  ............       16.000
Naval Air Station, Moffett                                              
 Field, CA......................        4.170         2.270        6.440
Naval Security Group Activity,                                          
 Skaggs Island, CA..............        0.650  ............        0.650
Naval Communication Station,                                            
 Stockton, CA...................        3.630  ............        3.630
Naval Station, Treasure Island,                                         
 CA.............................        3.020         2.581        5.601
Naval Shipyard, Mare Island,                                            
 Vallejo, CA....................       20.020         2.148       22.168
Beale AFB, Marysville, CA.......       20.507         1.068       21.575
McClellan AFB, Sacramento, CA...       15.094         1.906       17.000
Onizuka AFB, Menlo Park, CA.....  ...........         0.500        0.500
Travis AFB, Fairfield, CA.......       11.299         1.352       12.651
Travis Wherry, Fairfield, CA....        0.100         1.300        1.400
                                 ---------------------------------------
    Totals......................       106.00        13.223      119.223
------------------------------------------------------------------------


 Regulatory Procedure Requirements

Regulatory Flexibility Analysis

    Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 601 et 
seq., each agency, when required to publish a proposed rule, is further 
required to prepare and make available for public comment an initial 
regulatory flexibility analysis to describe the impact of the rule on 
small entities. Western has determined that (1) this rulemaking relates 
to services offered by Western and, therefore, is not a rule within the 
purview of the Act, and (2) the impacts of an Allocation from Western 
would not cause an adverse economic impact to such entities. The 
requirements of this Act can be waived if the head of the agency 
certifies that the rule will not, if promulgated, have a significant 
economic impact on a substantial number of small entities. By his 
execution of this Federal Register notice, Western's Administrator 
certifies that no significant economic impact on a substantial number 
of small entities will occur.

Environmental Compliance

    The National Environmental Policy Act of 1969, 42 U.S.C. Sec. 4321 
et seq., and implementing regulations issued by the Council on 
Environmental Quality, 40 CFR Sec. 1500 et seq., and the Department of 
Energy, 10 CFR Sec. 1021, require that the environmental effects of 
agency decisions be studied and considered by decision makers. Studies 
were made to determine whether there were significant impacts to the 
environment as a result of the original allocation of this Power to the 
military installations. These studies and analysis are published in the 
Revised Environmental Assessment and Finding of No Significant Impact 
which were prepared by Western for its Sacramento Area Office 1994 
Power Marketing Plan. Western is examining the applicability of the 
1994 Revised Environmental Assessment to these Power allocations.

Paperwork Reduction Act Of 1980

    The Paperwork Reduction Act of 1980, 44 U.S.C. 3501 et seq., 
requires that certain information collection requirements be approved 
by the Office of Management and Budget (OMB) before information is 
requested of the public. OMB has issued a final rule on the Paperwork 
Burdens on the Public, 48 FR 13666, March 31, 1983.

Determination Under Executive Order 12866

    DOE has determined that this is not a significant regulatory action 
because it does not meet the criteria of Executive Order 12866, 58 FR 
51735. Western has an exemption from centralized regulatory review 
under Executive Order 12866; accordingly, no clearance of this notice 
by OMB is required.

    Issued at Washington, DC, June 16, 1994.
William H. Clagett,
Administrator.
[FR Doc. 94-15980 Filed 7-5-94; 8:45 am]
BILLING CODE 6450-01-P