[Federal Register Volume 59, Number 151 (Monday, August 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19297]


[[Page Unknown]]

[Federal Register: August 8, 1994]


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DEPARTMENT OF ENERGY
Western Area Power Administration

 

Replacement Resource Methods Report; Grand Canyon Protection Act 
of 1992

AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Initiation of Public Consultation, Grand Canyon 
Protection Act Replacement Resource Methods Report.

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SUMMARY: The Western Area Power Administration (Western) is initiating 
a public consultation process to identify methods of replacing lost 
Glen Canyon Dam power and to report the findings to Congress, as 
required by the Grand Canyon Protection (GCP) Act of 1992, Title XVIII 
(P.L. 102-575), referred to hereafter as the GCP Act, enacted October 
30, 1992. Section 1809 of the GCP Act states that the Secretary of 
Energy.

    In consultation with the Secretary of the Interior and with 
representatives of the Colorado River Storage Project power 
customers, environmental organizations and the States of Arizona, 
California, Colorado, Nevada, New Mexico, Utah, and Wyoming shall 
identify economically and technically feasible methods of replacing 
any power generation that is lost through adoption of long-term 
operational criteria for Glen Canyon Dam***

    This section further states that--

    The Secretary shall present a report of the findings, and 
implementing draft legislation, if necessary, not later than two 
years after adoption of long-term operating criteria.

    Western is beginning the process of identifying methods to replace 
lost Glen Canyon Dam hydropower at this time in order to effectively 
evaluate customer needs and implement necessary contract modifications 
as soon as possible. Section 1809 also requires that the Secretary 
shall

    * * * Include an investigation of the feasibility of adjusting 
operations at Hoover Dam to replace all or part of such lost 
generation.

    In addition, the Secretary shall

    Include an investigation of the modifications or additions to 
the transmission system that may be required to acquire and deliver 
replacement power.

    The Secretary of Energy, acting by and through Western, has the 
responsibility of marketing power generated at Glen Canyon Dam, 
including power sold in place of any lost Glen Canyon Dam marketable 
resource, which necessitates the Replacement Resource Methods Report to 
Congress.
    Western's approach to identifying methods and acquiring long-term 
replacement resources for Glen Canyon Dam will be to consider cost-
effectiveness while incorporating principles of integrated resource 
planning. Western will consider a variety of resource options, both 
supply-side and demand-side, as well as renewable resource options, 
which would enable it to provide reliable service to its customers at 
the lowest possible system cost.
    Western has been formulating a plan (1) to prepare, through 
consultation, the report on the economically and technically feasible 
methods of replacing lost Glen Canyon Dam power, and draft legislation 
if necessary; and (2) to identify the range of replacement resources 
needed and the necessary revisions to existing wholesale firm power 
contracts to accommodate replacement resource obligations. Western will 
implement the acquisition of any replacement resources later, through a 
separate process.
    As part of this planning, Western has had several meetings since 
April 1993 with firm power customers to discuss informally the range of 
customer replacement resources needed. Western has discussed 
limitations of, and needed modifications to, existing long-term 
wholesale firm power contracts, as well as assumed timing of decisions 
by the U.S. Bureau of Reclamation (Reclamation) and Western in certain 
ongoing environmental impact statements (EIS) and related decision 
processes. Reclamation's Glen Canyon Dam EIS will ultimately influence 
the magnitude and timing of available hydroelectric power from the Glen 
Canyon Dam. Western's Salt Lake City Area/Integrated Projects (SLCA/IP) 
electric power marketing (EPM) EIS will determine Western's commitment 
level for the near-term and may affect its long-term obligations in 
wholesale firm electric service contracts. Both short-term and long-
term obligations may influence and be influenced by eventual costs to 
customers.
    Future consultation meetings and informational mailings on 
replacing lost power from Glen Canyon Dam will focus on a reasonable 
range of future SLCA/IP firm power contract obligations and potential 
methods to acquire the most cost-effective alternative sources of 
replacement firm resources needed to meet those obligations. The SLCA/
IP consists of resources from the Rio Grande Project, Collbran Project, 
and Colorado River Storage Project (CRSP), which includes Glen Canyon 
Dam. Cost-effectiveness will be an integral component of the selection 
criteria for replacement resources.

PROCEDURES: The consultation period for identifying the methods of 
replacing the marketable resource lost at Glen Canyon Dam has begun and 
will end prior to submission of the report to Congress. Following 
publication of this notice, the next step will be the preparation of a 
brochure, which will address, among other items, the scope and schedule 
of the entire process envisioned by Western to identify the required 
replacement resource methods. Formal consultation will be initiated 
with representatives of CRSP power customers, environmental 
organizations and the Colorado River Basin States, Native Americans, 
the Secretary of the Interior, and other interested parties in late 
1994 or early 1995. Notices of dates and locations of future meetings 
regarding identification of GCP Act replacement resource methods will 
be provided in Federal Register notices. In addition, the brochure and 
notices will be mailed to interested parties, including those 
identified in the GCP Act.
    Western and the Colorado River Energy Distributors Association have 
cosponsored several informal regional customer meetings in Phoenix 
(June 23), Salt Lake City (July 1), Albuquerque (July 6), and Denver 
(July 7) to discuss contract-related issues regarding near-term and 
long-term firm power obligations and replacement resource needs. 
Discussions between Western and existing wholesale firm power customers 
concerning events, possible outcomes, and necessary contract 
modifications are expected to continue throughout 1994.
    Western's Salt Lake City Area Office is developing an initial list 
of individuals and organizations interested in the replacement resource 
process. Parties interested in receiving information or adding their 
names to the mailing list may contact the sources listed below.

FOR FURTHER INFORMATION CONTACT: Replacement Resource--Jeffrey J. 
McCoy, Resources and Marketing Studies, Western Area Power 
Administration, P.O. Box 11606, Salt Lake City, Utah 84147-0606. 
Telephone: (801) 524-5399 or (801) 524-5493. Contract Modifications--
Burt Hawkes, Contracts and Customer Services, Western Area Power 
Administration, P.O. Box 11606, Salt Lake City, Utah 84147-0606. 
Telephone: (801) 524-3344 or (801) 524-5493.

SUPPLEMENTARY INFORMATION: The GCP Act states that the Secretary of the 
Interior:

    Shall operate Glen Canyon Dam in accordance with the additional 
criteria and operating plans * * * and exercise other authorities 
under existing law in such a manner as to protect, mitigate adverse 
impacts to, and improve the values for which Grand Canyon National 
Park and Glen Canyon National Recreation Area were established,... 
(GCP Act, Section 1802) (emphasis added)

    The GCP Act was enacted to address resource management problems in 
Grand Canyon National Park and Glen Canyon National Recreation Area 
attributed to the operation of Glen Canyon Dam. Operations of Glen 
Canyon Dam have been modified during the interim period prior to 
completion of the Glen Canyon Dam EIS. It is anticipated that 
compliance with the GCP Act to reduce operations-related impacts to the 
downstream environment will result in further long-term modifications 
following the Glen Canyon Dam EIS Record of Decision.
    The Glen Canyon Dam EIS was initiated in 1989 to evaluate impacts 
of Glen Canyon Dam operations on downstream resources of the Colorado 
River. The draft Glen Canyon Dam EIS, published by Reclamation in 
January 1994, presents a range of long-term operational alternatives 
for the dam. Reclamation published a notice of availability of such 
draft EIS on January 7, 1994; (59 FR 1023). The Glen Canyon Dam EIS is 
mandated by the GCP Act to be completed no later than 2 years after the 
date of enactment of the Act, or October 1994.
    Long-term operating criteria will be established based on the 
findings, conclusions, and recommendations made in the Glen Canyon Dam 
EIS and the audit performed by the Comptroller General on the costs and 
benefits of management policies. A Reasonable and Prudent Alternative, 
presented in a U.S. Fish and Wildlife Service Biological Opinion on 
operations of Glen Canyon Dam, may also be incorporated into the long-
term operating criteria.
    The amount of marketable resource lost at Glen Canyon Dam will be a 
function of the long-term operating criteria selected and operational 
changes made in response to conclusions emerging from research and the 
long-term monitoring results. Estimates of the amount of hydropower 
resource available at Glen Canyon Dam will become better defined as the 
dam operations are revised.
    Identifying feasible methods of replacing the power will require 
assessment by existing firm power customers of both the magnitude and 
timing of the lost resource at Glen Canyon Dam. Western's firm power 
customers will influence whether Western will replace any or all of the 
lost Glen Canyon Dam resource. Customers' decisions concerning 
replacement resource needs will depend in large part on the 
availability and costs of alternative resources. Such acquisitions 
might be made by Western on behalf of firm power customers on a pass-
through-cost basis, incorporating all associated costs.
    Since neither lost marketable resources nor customer replacement 
resource demand may be known for some time, and may vary as more 
scientific knowledge of the effects of dam operations becomes 
available, the Replacement Resource Methods Report to Congress is 
expected to address both changes in hydropower generation under several 
possible long-term operational alternatives at Glen Canyon Dam and a 
range of customer-defined firm replacement resource needs.
    The final SLCA/IP EPM EIS is expected to be released in November 
1994. The Record of Decision which follows may establish new firm power 
resource commitment levels for the SLCA/IP. The timing of the 
implementation of Western's SLCA/IP EPM EIS Record of Decision, 
relative to Reclamation's Glen Canyon Dam EIS Record of Decision, is 
uncertain at this time.
    The Replacement Resource Methods Report to Congress is to be 
completed no later than 2 years after implementation of long-term 
operational criteria at Glen Canyon Dam. Contract amendments to replace 
the lost resource will need to take effect at the time of 
implementation of Reclamation's Glen Canyon Dam EIS Record of Decision, 
or other accommodations will need to be made to satisfy contractual 
commitments. Western and its firm power customers have been working to 
develop a mutual understanding of principles for revising existing 
wholesale firm power contracts to address the possible range of 
outcomes.
    Formal consultation with representatives of environmental 
organizations, Native Americans, the Colorado River Basin States, the 
Secretary of the Interior, as well as CRSP power customers and other 
interested parties, for identifying GCP Act replacement resource 
methods and any necessary legislation begins with publication of this 
notice in the Federal Register. Meetings are planned for late 1994 or 
early 1995, and their dates and locations will be published in 
subsequent Federal Register notices. A brochure will be prepared to 
provide more information on a range of subjects including (1) the 
quantification of lost marketable resources from Glen Canyon Dam and 
other CRSP sites, (2) the range of replacement resource needs, (3) the 
relation of resource replacement to Western's other EISs, (4) the 
proposed schedule for related replacement resource and Glen Canyon Dam 
EIS and SLCA/IP EPM EIS events, and (5) a list of common questions and 
answers related to these topics. It will be distributed to 
representatives of organizations specified in the GCP Act and other 
interested parties in the summer of 1994.

    ENVIRONMENTAL COMPLIANCE: Western will comply with the National 
Environmental Policy Act of 1969 through an appropriate level of 
environmental analysis on the impacts of any proposed replacement 
resource methods. Western is just beginning the process of identifying 
methods to replace lost Glen Canyon Dam hydropower. Those processes 
will address environmental concerns.

    DETERMINATION UNDER EXECUTIVE ORDER 12866: DOE has determined 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 the Office of 
Management and Budget is required.

    Issued in Golden, Colorado, July 27, 1994.
William H. Clagett,
Administrator.
[FR Doc. 94-19297 Filed 8-5-94; 8:45 am]
BILLING CODE 6450-01-P