[Federal Register Volume 59, Number 230 (Thursday, December 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29607]


[[Page Unknown]]

[Federal Register: December 1, 1994]


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DEPARTMENT OF ENERGY
Western Area Power Administration

 

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

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of final procedures to implement Sec. 2929 of the 1994 
National Defense Authorization Act.

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SUMMARY: The Western Area Power Administration (Western), a Federal 
power marketing administration of the Department of Energy (DOE), 
hereby announces its final procedures (NDA) Act Procedures) to fulfill 
the requirements of section 2929 of the National Defense Authorization 
Act for fiscal year (FY) 1994 (National Defense Authorization Act, 
Public Law 103-160, 107 Stat. 1547, 1935 (1993)) (NDA Act). The final 
NDA Act Procedures consist of Western's decision on how to implement 
section 2929 of the NDA Act. Western's proposed NDA Act Procedures were 
published in the Federal Register at 59 FR 34604, July 6, 1994. The 
public has commented on the proposed NDA Act Procedures, and a 
discussion of the comments received is included in this notice.

DATES: The final NDA Act Procedures will become effective January 3, 
1995, and will remain in effect until December 31, 2004.

ADDRESSES: Information regarding the final NDA Act Procedures, 
including comments, letters, and other supporting documents made or 
kept by Western for the purpose of developing the final NDA Act 
Procedures, is available for public inspection and copying at Western's 
Sacramento Area Office located at 1825 Bell Street, Suite 105, 
Sacramento, CA 95825-1097.

FOR FURTHER INFORMATION CONTACT:
Ms. 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.

SUPPLEMENTARY INFORMATION: 

Background

    The NDA Act was signed into 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 Central Valley Project (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 the final NDA Act Procedures, 
Western will establish the criteria to allocate the Power made 
available as a result of the NDA Act.
    The final NDA Act Procedures set forth in this Federal Register 
will explain in detail how Western intends to implement the NDA Act. 
Under the final 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 final 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. Last, 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.
    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 megawatts 
(MW) of CVP Power. 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 with a CVP contract rate of delivery 
(CROD) are scheduled to close pursuant to the 1990 Act:

------------------------------------------------------------------------
                                          Long-                         
                                          term      Type III            
        Military Installations            firm    withdrawable    Total 
                                          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 this Federal 
Register notice. As any of the remaining amount of 85.014 NW becomes 
available for allocation, pursuant to the NDA Act, Western will provide 
notification of the availability of that Power.

Acronyms and Definitions

    Descriptions of the acronyms and definitions used in this Federal 
Register notice may be found in this notice.

Public Notice and Comment

    The process used by Western to ensure involvement of known 
interested parties in the development of the final NDA Act Procedures 
is summarized below:
    1. A Federal Register notice was published at 59 FR 34604, July 6, 
1994, officially announcing the proposed NDA Act Procedures, initiating 
the public consultation and comment period, and announcing the public 
information and comment forum.
    2. On July 13, 1994, in a letter to all CVP customers and known 
interested parties, Western announced that the public consultation and 
comment period had begun; announced the dates, times, and locations of 
the public information forum and the public comment forum; and enclosed 
a copy of the July 6, 1994, Federal Register notice.
    3. On July 18, 1994, Western sent a letter to all CVP customers and 
interested parties as a reminder of the public information forum and 
public comment forum schedule for July 27, 1994.
    4. At the public information forum held on July 27, 1994, Western's 
staff presented the proposed NDA Act Procedures.
    5. A public comment forum was held on July 27, 1994, to give the 
public the opportunity to comment for the record. Four persons 
representing customers made verbal comments.
    6. Eleven comment letters were received during the comment period. 
The comment period ended on August 10, 1994. All formally submitted 
comments have been considered in the preparation of the final NDA Act 
Procedures. In addition, four persons commented during the July 27, 
1994, public comment forum.
    Written comments were received from the following sources:

Air Force, Department of the
Alameda, City of
Army, Department of the
Bay Area Rapid Transit District
Calaveras Public Power Agency
Hetch Hetchy Water and Power
National Aeronautics and Space Administration
Northern California Power Agency
Oakland, Port of
Pacific Gas and Electric Company
Tuolumne Public Power Agency

    Representatives of the following organizations made verbal 
comments:

Alameda, City of
Epstein, Mr. Barry
Navy, Department of the
Oakland, Port of

Summary of Revisions to the NDA Act Procedures

    As a result of comments received during the comment period, the 
proposed NDA Act Procedures, published July 6, 1994, have been revised. 
The revisions are summarized as follows:
    A change was made to the section entitled ``Acronyms and 
Definitions.'' Western revised the definition of a Negatively Affected 
Customer to include those Preference Entities which had a CVP power 
allocation as of November 30, 1993, and have executed contracts with 
Western as of the effective date of the final NDA Act Procedures.
    Changes were made to the section entitled ``General Eligibility 
Criteria.'' Western deleted the requirement that an applicant's load at 
each delivery point be no less than an annual peak of 500 kilowatts 
(kW). Western also deleted the requirement that an applicant 
demonstrate either that ownership or a long-term lease of the 
electrical distribution system has been obtained at the time an 
application is submitted, and has replaced it with the requirement that 
an applicant need only demonstrate that ownership or a long-term lease 
of the electrical distribution system has been obtained or will be 
obtained by the delivery date for the NDA Act Power. This necessitated 
a change to the section entitled ``Applications for NDA Act Power.'' 
Such section of the final NDA Act Procedures will provide that no 
allocation will be provided until such time as the applicant can 
provide evidence that either ownership or a long-term lease of the 
electrical distribution system has been obtained, and that if the 
applicant does not obtain either ownership or a long-term lease within 
1 year of the initial application being received by Western, the 
applicant will be required to submit a new application which will again 
be subject to Western's review process. Western will reserve the right 
to allocate the NDA Act Power to others until all allocation criteria 
are met by an applicant.
    Another change that was made to the section entitled ``General 
Eligibility Criteria'' was in regard to the letter of interest. Western 
changed the requirement that an entity requesting NDA Act Power for use 
at a Priority-three Base must identify the Closed Military Installation 
where the power will be used. An entity requesting NDA Act Power to be 
used at a Priority-Three Base only needs to identify a military 
installation where the power will be used.
    The section entitled ``General Allocation and Contract Principles'' 
was also modified. For each entity that has received NDA Act Power 
which can be recalled upon a 6-month notice, Western has modified the 
NDA Act Procedures so that the 6-month notice will not be given any 
earlier than 6 months after a contract has been executed. Western also 
included the requirement that customers receiving NDA Act Power over 
Pacific Gas and Electric Company's (PG&E) transmission system must meet 
the minimum load requirements set forth in Contract No. 14-06-200-2948A 
(Contract 2948A). Noncompliance gives Western the right to terminate 
the NDA Act contract. Western also made a change which clarified the 
procedures that will be used when recalling NDA Act Power from a 
customer. If the recall of NDA Act Power would cause a customer to have 
an allocation of Long-Term Firm NDA Power less than 500 kW, then 
Western would withdraw the entire Long-Term Firm NDA Act Power 
allocation.

Responses to Customer Comments Regarding the NDA Act Procedures

A. Acronyms and Definitions

    1. Western proposed that the definition of a Negatively Affected 
Customer include those Preference Entities with a contract for CVP 
Power as of November 30, 1993.
    Comment: The definition of a Negatively Affected Customer should be 
expanded to include Preference Entities which received power 
allocations from Western pursuant to the 1994 Power Marketing Plan 
(Federal Register, Vol. 58, No. 22, dated June 28, 1993) and which 
thereafter executed contracts with Western.
    Response: It was Western's original intent to include such entities 
in the definition of a Negatively Affected Customer; therefore, Western 
will modify the definition of a Negatively Affected Customer to include 
Preference Entities which had a CVP power allocation as of November 30, 
1993, and have executed contracts with Western by the effective date of 
the final NDA Act Procedures.
    2. Western proposed that a Priority-Three Base would be defined as 
``a military installation, not scheduled for closure, which meets the 
eligibility criteria set forth in the Marketing Plan.''
    Comment: The definition for a Priority-Three Base should be amended 
as follows: ``A military installation, closed under authority other 
than the 1990 Act which meets the eligibility criteria set forth in the 
Marketing Plan.'' Also a definition of a Priority-Four Base should be 
added to the procedures which would read as follows: ``A military 
installation not scheduled for closure, which meets the eligibility 
criteria set forth in the Marketing Plan.''
    Response: The National Defense Authorization Act states that only 
bases 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) are eligible under the NDA Act; therefore, 
the definition of a Priority-Three Base will not be modified. Thus, it 
will not be necessary to include a definition of a Priority-Four Base.
    3. Western proposed that the definition of the CVP Marketing Area 
would be 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.
    Comment: Western should further expand upon the definition of the 
CVP Marketing Area, such as defining it as the transmission service 
boundaries in Contract 2948A between PG&E and Western or cite the 
appropriate statutory authority for the definition it has proposed.
    Response: Section 302 of Public Law 95-91 (Stat. 578) transferred 
the power marketing functions of the Bureau of Reclamation 
(Reclamation) to the Department of Energy (DOE). Reclamation had an 
established geographic boundary for the CVP, and Western initially 
adopted the geographic boundaries which had been established by 
Reclamation. The definition of the CVP Marketing Area used in the final 
NDA Act Procedures is the same description used in the Marketing Plan 
to describe Western's marketing area; therefore, the definition of the 
CVP Marketing Area will not be changed. However, for clarification 
purposes, the following characterizes the CVP Marketing Area: The area 
that generally encompasses northern and central California, extending 
from the Oregon-California border south along the California coast to 
near Santa Monica, California, then northeast to Vincent, California, 
then northwest to near Gorman, California. From this, the CVP Marketing 
Area's Boundary follows the Sierra Nevada Mountain Range east and north 
to just north of Mono Lake, then northeasterly to the Nevada-California 
border, and then north along the Nevada-California border to the Oregon 
State line.

E. General Eligibility Criteria

    1. Western proposed that each applicant's load at each delivery 
point shall be no less than an annual peak of 500 kW.
    Comment: Why is Western requiring that a customer's load at each 
delivery point be no less than a minimum of a 500 kW, as opposed to the 
requirement in the Marketing Plan for a minimum load of 500 kW per 
customer?
    Response: Western has decided to delete its requirement that an 
applicant's load at each delivery point be no less than an annual peak 
of 500 kW. This criteria has been deleted from the procedures because 
there is no basis for inclusion of minimum loads at each delivery 
point. However, this requirement will be placed with the requirement 
that Western has the right to terminate a contract if a customer 
receiving NDA Act Power over PG&E's transmission system does not meet 
the minimum load requirements set forth in Contract 2948A (see 
Sec. G.5.(v)).
    2. Western proposed to allocate NDA Act Power to Negatively 
Affected Customers.
    Comment: Does Western intend to allocate power to any entity 
negatively affected by a base closure or just to any current Western 
customer negatively affected by a base closure? Only eligible 
preference entities should be considered for an allocation.
    Response: Western's procedures specify that NDA Act Power will be 
available to a current Western customer that has been negatively 
affected by a base closure under the 1990 Act.
    3. Western proposed that applicants must demonstrate that either 
ownership or a long-term lease of the electrical distribution system 
has been obtained at the time of application.
    Comment: Western should not require that a preference customer 
seeking an NDA Act allocation present an economic development plan for 
the closed military base that demonstrates ``either that ownership or a 
long-term lease of the electrical distribution system has been 
obtained.'' It should be sufficient for the applicant to demonstrate 
that it will own or lease the system by the time the NDA Act Power is 
to be transmitted. This language should be revised to state: * * * 
ownership or a long-term lease of the electrical distribution system 
has been obtained or will be obtained by the delivery date for the NDA 
Act Power * * *.''
    Response: Western agrees that it is not necessary that an applicant 
demonstrate that either ownership or a long-term lease of the 
electrical distribution system has been obtained at the time an 
application is submitted. Therefore, Western has modified the final NDA 
Act Procedures so that an applicant must only demonstrate that 
ownership or a long-term lease of the electrical distribution system 
has been obtained or will be obtained by the delivery date for the NDA 
Act Power. Western has modified the final NDA Act Procedures to provide 
that no allocation will be given to the applicant until such time that 
the applicant can provide evidence that it has obtained either a long-
term lease or ownership of the electrical distribution system. The 
final NDA Act Procedures have been further modified so that if the 
applicant does not obtain either a long-term lease or ownership of the 
electrical distribution system within 1 year of Western's receipt of 
the applicant's initial application, the applicant will be required to 
submit a new application which will again be subject to Western's 
review process. Western reserves the right to allocate any NDA Act 
Power to others until all allocation criteria are met by the applicant.
    4. Western proposed that applicants applying for NDA Act Power to 
be used at a Priority-Three Base must be ready, willing, and able to 
receive and use or distribute such NDA Act Power beginning on the date 
of application.
    Comment: A military base closed prior to the 1990 Act should be 
included in the definition of a Priority-Three Base, and Sec. E.7. 
should be revised to reflect the change by stating: ``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, except that those applicants applying for NDA Act Power to 
be used at a closed Priority-Three Base may have up to 1 year of the 
execution of the contract.''
    Response: As discussed previously in this Federal Register notice, 
the definition of a Priority-Three Base will not be modified. The 
requirement that an entity be ready, willing, and able to receive and 
use, or receive and distribute NDA Act Power at a Priority-Three Base 
at the time of application is still warranted and has not been changed.
    5. Western proposed that the use of the NDA Act Power be restricted 
to the immediate area of the military installation for which it was 
requested and that NDA Act Power requested by a Negatively Affected 
Customer could be used in the Negatively Affected Customer's service 
territory.
    Comment: Western should add flexibility so that NDA Act Power may 
be used beyond the immediate area of the closed military base.
    Response: The procedures do allow for some flexibility. An entity 
which can be classified as a Negatively Affected Customer is allowed to 
use the NDA Act Power beyond the immediate area of the closed military 
base. The entities restricted to using the NDA Act Power at a military 
installation are those that request NDA Act Power for use at a 
Priority-One, Priority-Two, or Priority-Three Base. Therefore, no 
changes are necessary to accommodate this comment.

F. Applications for NDA Act Power

    1. Western proposed that allocations of NDA Act Power would be made 
on a first-come, first-served basis, and that if two or more entities 
were requesting an allocation, Western would use its discretion in 
determining the amounts of NDA Act Power to be allocated.
    Comment: Western should further clarify the approach it will use 
when two or more applicants are requesting NDA Act Power and Western 
does not have enough NDA Act Power available to meet such request. Will 
western use its discretion to determine the amounts of NDA Act Power to 
be allocated pursuant to Sec. F.3.(iv), or allocate on a first-come, 
first-served basis beginning 30 days after publication of the final 
procedures pursuant to Sec. F?
    Response: It is Western's intention that allocations will be 
granted on a first-come, first-served basis pursuant to Sec. F, and 
within the allocation rights set forth in Sec. G. In the event that 
Western receives more than one application for power at the same time, 
Western will determine the amounts of NDA Act Power to be allocated 
pursuant to Sec. F.3.(iv). Western reserves the right to use its 
discretion when applying these procedures.
    2. Western proposed that an applicant applying for NDA Act Power at 
a Priority-Three Base identify the Closed Military Installation where 
such power would be used.
    Comment: Western should revise Sec. 4.1.(i)(A) as follows: ``For 
Preference Entities requesting an allocation of NDA Act Power to be 
used at a Priority-One or Priority-Two Base, the letter of interest 
must also indicate the Closed Military Installation where the NDA Act 
Power will be used, and for those requesting an allocation at a 
Priority-Three Base, the military installation, and whether it is open 
or closed. All prospective applicants shall indicate the estimated date 
when the economic development project plan will be completed.''
    Response: Western agrees that an applicant requesting an allocation 
for a Priority-Three Base would be unable to identify the Closed 
Military Installation where the power will be used. Therefore, Western 
has revised the procedures, specifically, Sec. F.1.(i)(A) to require 
that an entity requesting power to be used at a Priority-Three Base 
need only identify a military installation where the NDA Act Power will 
be utilized. However, Western will retain the requirement that all 
prospective applicants applying for NDA Act Power to be used at a 
Priority-One or Priority-Two Base must indicate the estimated date when 
the economic development project plan will be completed.

G. General Allocation and Contract Principles

    1. Western proposed that any Closed Military Installation which had 
a CVP CROD as of November 30, 1993, would have the highest priority to 
NDA Act Power and would be described as a Priority-One Base, and that 
any other military installation closed pursuant to the 1990 Act would 
be classified as a Priority-Two Base and would have the second highest 
priority to NDA Act Power.
    Comment: Combine Priority-One Bases with Priority-Two Bases. 
Alternatively, the allocation rights for Priority-One and Priority-Two 
Bases should be reversed.
    Comment: Congress was explicit about the NDA Act Power coming from 
Priority-One Bases but said nothing about limiting or even favoring 
those bases in reallocating the power. If there is authority in the 
statute of legislative history to support this view--something to show 
that Congress created such a priority within the class of potential 
allottees, Western--should describe it.
    Response: Each Priority-One Base had an allocation of CVP Power 
prior to the NDA Act being signed into public law. The NDA Act 
specifies that any CVP Power provided at each Priority-One Base would 
be reserved for use under the NDA Act. Therefore, it is appropriate 
that the Priority-One Bases should have the highest right to the amount 
of NDA Act Power which represents the amount of CVP Power allocated to 
such base prior to the NDA Act being signed into public law. No changes 
will be made to this section.
    2. Western proposed to limit the marketing area for NDA Act Power 
to the CVP Marketing Area.
    Comment: Two commentors supported Western's proposal to utilize CVP 
boundaries as an important part of the NDA Act Procedures.
    Comment: Western's proposal to limit new allocations only to 
Preference Entities using the power on Closed Military Installations in 
the CVP Marketing Area should be revised so that the geographic area is 
at least as extensive as the State of California.
    Comment: The area of consideration for allocating power to military 
installations should be amended from the CVP Marketing Area to the 
State of California.
    Response: The NDA Act specifically addresses the Central Valley 
Project, which has a defined marketing area. Therefore, Western's 
interpretation of the NDA Act is that the NDA Act was written to help 
mitigate the effects of base closures and encourage economic 
development in areas affected by base closures within the CVP Marketing 
Area. The NDA Act gives Western no geographical requirement for long-
term reallocations and only provides that reallocations on a temporary 
basis be given to military installations in the State of California. 
The law does not state that Western must offer a reallocation to all 
preference entities and military installations in California but only 
that the temporary reallocations of power to be given to certain 
preference entities and military installations must be in California. 
Therefore, Western has chosen to consider allocating power to 
preference entities and military installations within the CVP Marketing 
Area, and no changes will be made to the marketing area.
    3. Western proposed to allocate NDA Act Power to a group of 
Preference Entities entitled Negatively Affected Customers.
    Comment: Western should delete the proposed class of Negatively 
Affected Customers and assign the lowest priority to CVP preference 
customers who will not use the allocation of NDA Act Power on a closed 
base for economic development.
    Response: The NDA Act was written to help mitigate the effects of 
base closures and encourage economic development in areas affected by 
base closures. By allowing CVP preference customers which were or will 
be detrimentally affected by base closures an opportunity to utilize 
the NDA Act Power, Western is not only retaining the purpose of the NDA 
Act but also assisting entities that have made financial investments in 
their electrical systems in order to receive CVP Power to serve 
military loads in their service territory, and therefore, have a vested 
interest in the outcome of the final NDA Act Procedures. Thus, Western 
has retained the category of a Negatively Affected Customer. However, 
Western will modify the NDA Act Procedures to provide Western the 
discretion to allocate on a temporary basis to other preference 
entities any amount of NDA Act Power which is not fully allocated under 
the four categories specified in the NDA Act Procedures.
    4. Western proposed that within the fourth level of priority, the 
right of the military to serve a military load at a military base that 
is not closing, and a Negatively Affected Customer would have similar 
priority.
    Comment: The final NDA Act Procedures should clarify that within 
the fourth priority level, the military installations have a higher 
priority in the allocation of power than a Negatively Affected 
Customer.
    Comment: Western should give greater preference, in the allocations 
of power within each allocation priority level, to the Negatively 
Affected Customers and communities, as opposed to allowing the military 
agencies to move power to new or existing facilities.
    Comment: One commenter recommended in an earlier comment that 
Western should revise the definition of a Priority-Three Base so that 
it covers closed bases not subject to the 1990 Act and create another 
category (formerly Priority-Three) called a Priority-Four Base that 
would allow for allocations for use at military installations not 
scheduled for closure. If revised, the procedures should then be 
changed to give a higher priority to preference customers using power 
at closed Priority-Three Bases above the military's use of power at 
currently operating bases.
    Response: The NDA Act was drafted to provide a mechanism to help 
entities promote economic development at military installations 
approved for closure and to mitigate adverse impacts from such 
closures. The NDA Act also provides a mechanism for allocating power 
not being utilized for economic development to military loads at 
military bases that are not closing, on a temporary basis. Since some 
of Western's CVP customers will suffer significant negative impacts as 
a result of a base closure in their service territory, it is Western's 
belief that within the fourth class of priority, Negatively Affected 
Customers should have a priority level that is similar to a military 
load at a Priority-Three Base. Therefore, no changes were made to this 
section.
    5. Western proposed that Preference Entities receiving an 
allocation of NDA Act Power to be used for an economic development 
project must provide a report to Western each year which describes the 
benefits of the NDA Act Power being passed on to the organization 
operating the economic development project.
    Comment: Western's procedures should include criteria for measuring 
economic development achievements. For example, the number of jobs 
created/retained, quantities of products manufactured/sold, and 
buildings retained/constructed could be used to measure if those 
entities receiving power have met the stated criteria. If the 
performance does not meet the pre-established criteria, the allocation 
of power should be withdrawn.
    Response: As a power marketing agency, Western does not have the 
proper resources (manpower, experience, knowledge, etc.) to evaluate 
economic development projects on a continuing basis. However, Western's 
procedures do require that the allottee provide an annual report to 
Western which must state that the benefits of the NDA Act Power are 
being passed on to the organization operating the economic development 
project, and that the economic development project is still occurring. 
Western believes that its requirements are adequate, and no changes 
will be made based on this comment.
    6. Western proposed a 3-year withdrawal notice period for entities 
who were receiving NDA Act Power at Priority-One and Priority-Two 
Bases, and a 6-month withdrawal notice period for all other entities 
receiving NDA Act Power.
    Comment: The 3-year and 6-month power withdrawal notice periods 
should be revised to 5 years and 1 year respectively.
    Response: The NDA Act reserves power for only a 10-year period 
ending November 30, 2003. With that in mind, Western feels that the 3-
year and 6-month recall periods are reasonable. Lengthening the recall 
periods may limit the number of entities that would have an opportunity 
to benefit from the NDA Act Power and would not be the most widespread 
and efficient use of the power within that time period. However, so 
that an entity using NDA Act Power under a Short-Term Contract can have 
a greater opportunity to benefit from the use of the power, Western 
will modify the procedures so that a 6-month recall notice will not be 
given any earlier than 6 months after a contract has been executed.
    7. Western proposed specific procedures that need to be followed in 
order to receive an allocation of NDA Act Power.
    Comment: One commentor requested an allocation under the National 
Defense Authorization Act Procedures.
    Response: Western did not request applications for NDA Act Power. 
Requests for allocations of NDA Act Power will be accepted no sooner 
than 30 days after the publication date of this notice.

Responses to Customer Comments Regarding Other Issues

    Comment: A commentor urged Western to recognize the November 30, 
1993, allocations of CVP CROD in developing the post-2004 Federal 
preference power allocations.
    Response: This comment is outside the scope of these procedures.

Final NDA Act Procedures

    Western plans to allocate up to 119.223 MW of CVP which was under 
contract 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 and subject to these procedures.

A. Acronyms and Definitions

    As used herein, the following acronyms and definitions when used 
with initial capitalization, whether singular or plural, shall have the 
following meanings:

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.
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 NDA Act Procedures.
Allottee: A Preference Entity receiving an Allocation pursuant to the 
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 NDA Act Procedures.
Marketing Plan: The Final 1994 Power Marketing Plan, Central Valley 
Project, California (57 FR 45782).
Military Branch: The four individual entities consisting of the U.S. 
Departments of the Air Force, Army, Navy, and the U.S. Marine Corps, 
which collectively make up the Department of Defense.
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 Power equal to the amount 
of CVP CROD under contract with a Priority-One Base as of November 30, 
1993.
NDA Act Procedures: These procedures, adopted by Western to fulfill the 
requirements of the NDA Act.
Negatively Affected Customer: A Preference Entity with a CVP Power 
Allocation as of November 30, 1993, which has an executed contract with 
Western as of the effective date of the NDA Act Procedures, and has 
been detrimentally affected as a result of a Closed Military 
Installation which is located within the service area of such 
Preference Entity.
PG&E: Pacific Gas and Electric Company--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-Two Base: A Closed Military Installation without a CVP CROD.
Priority-Three Base: A military installation, not scheduled for 
closure, which meets the eligibility criteria set forth in the 
Marketing Plan.
Short-Term Contract: A contract offered on a temporary basis either 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 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. 7101 et seq.).

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 NDA Act Procedures.

C. Types of Service

1. Long-Term Firm NDA Act Power
    Western proposes to allocate up to a total of 106 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 NDA Act 
Procedures, the Final Withdrawal Procedures, and the Marketing Plan.
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 Contracts upon giving a minimum of a 6-month 
written notice. However, such 6-month written notice will not be given 
any earlier than 6 months after a contract has been executed. The 
termination date for Short-Term Contracts shall be no later than 
December 31, 2004, and such contract shall be subject to the NDA Act 
Procedures, the Final Withdrawal Procedures, and the Marketing Plan.

E. General Eligibility Criteria

    General eligibility criteria apply to applicants seeking an 
Allocation of NDA Act Power under the NDA Act Procedures. Criteria 1 
through 5 shall apply to applicants who are promoting an economic 
development project at a Closed Military Installation. Criteria 4 
through 6 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:
    a. Promotes the establishment or expansion of industrial, 
commercial, or governmental facilities at the Closed Military 
Installation, and
    b. 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
    c. 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
    d. Is supported by public and/or private sector investment and can 
present evidence of adequate funding, and
    e. Demonstrates that necessary permits, land acquisitions, or 
options on land and right-of-way have been obtained; demonstrates that 
all other legal requirements of the application process have been 
satisfied; and demonstrates that ownership or a long-term lease of the 
electrical distribution system has been obtained or will be obtained by 
the delivery date for the NDA Act Power.
    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. 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. An applicant applying for NDA Act Power as 
a Negatively Affected Customer must demonstrate it meets the definition 
of a Negatively Affected Customer.

F. Applications for NDA Act Power

    Prospective applicants may begin requesting NDA Act Power from 
Western no earlier than the effective date of these final NDA Act 
Procedures and no later than November 30, 2003. Requests shall be 
considered on a first-come, first-served basis consistent with General 
Allocation and Contract Principles in section G below.
1. Letter of Interest
    a. 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.
    (1) For Preference Entities requesting an allocation of NDA Act 
Power to be used at a Priority-One or Priority-Two 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.
    (2) For Preference Entities requesting an allocation of NDA Act 
Power to be used at a Priority-Three Base, the letter of interest must 
indicate the military installation where the NDA Act Power will be 
utilized.
    (3) 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.
    b. If the letter of interest does not meet the criteria set forth 
in Sec. F.1.(a), Western will notify the requestor within 60 days of 
receiving the request.
    c. If the letter of interest meets the criteria set forth in 
Sec. F.1.(a), Western will determine whether NDA Act Power can be made 
available to meet the request.
    (1) 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.
    (2) 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 prospective 
applicants.
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:
    a. Applicant. (1) Applicant's name and address.
    (2) Person(s) representing applicant: Please provide the name, 
address, title, and telephone number of such person(s).
    (3) Type of organization: For example, municipality, rural electric 
cooperative, irrigation district, State agency, or Federal agency.
    (4) Parent organization.
    (5) Names of members.
    (6) Applicable law under which organization was established.
    b. The proposed economic development project plan, including the 
name of the military installation on which the economic development 
project is proposed.
    c. Documentation certifying that the entity operating the economic 
development project is eligible to exist and operate at the Closed 
Military installation.
    d. Service Requested: The amount of electrical service requested.
    e. 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.
    f. Transmission: (1) 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.
    (2) Transmission arrangements: Describe the transmission 
arrangements necessary to deliver Power to the requested points of 
delivery.
    g. Other Information: The applicant is welcome to provide any other 
information pertinent to receiving an Allocation.
    h. 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
    a. 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.
    (1) 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.
    (2) 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.
    (3) 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, 
provided that no allocation will be given until such time as the 
applicant can provide evidence that it has obtained either a long-term 
lease or ownership of the electrical distribution system. If the 
applicant does not obtain either a long-term lease or ownership of the 
electrical distribution system within 1 year of Western's receipt of 
the applicant's initial application, the application will no longer be 
valid and the applicant will be required to submit a new application 
which will again be subject to Western's review process. Western may 
allocate any NDA Act Power to others until all allocation criteria are 
met by the applicant. Once it has been determined that the applicant 
has obtained either a long-term lease or ownership of the electrical 
distribution system, 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.
    b. All NDA Act Power shall be allocated according to the procedures 
set forth in the general allocation and contract principles.
    c. 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.
    d. 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.
    e. 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 NDA Act Procedures.
1. Allocation Rights
    Western will allocate NDA Act Power to qualified applicants based 
on the following hierarchy:
    a. 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.
    b. 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 3 years' written notice in order to fulfill an Allocation 
to a Priority-One Base which has not fully utilized its NDA Act Power 
Entitlement under Sec. G.1.(a.) above.
    c. 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. Such 6-month written notice will not be given any 
earlier than 6 months after a contract has been executed.
    d. 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 Sec. G.1.(c.) 
above. Such 6-month written notice will not be given any earlier than 6 
months after a contract has been executed.
2. Allocation of NDA Act Power
    Western will use the following procedures to allocate NDA Act Power 
to a qualified applicant:
    a. Western will determine whether sufficient Unutilized NDA Act 
Power is available to fulfill the applicant's request.
    b. If sufficient Unutilized NDA Act Power is available to fulfill 
the applicant's request, Western shall allocate the amount needed.
    c. 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 
Sec. G.3.
    d. 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:

TN01DE94.013

    A is defined as Long-Term Firm NDA Act Power available at the time 
of the Allocation.
    B is defined as Type III Withdrawable NDA Act Power available at 
the time of 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 as long as there is at least 500 kW of 
Long-Term Firm NDA Act Power available.
    e. Allocations will be made on to those applicants who qualify 
pursuant to the 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.
    f. 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 in that contract have been satisfied.
    g. 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.
    h. 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.
    i. 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 NDA Act Procedures.
    j. Western's Administrator has the sole discretion to allocate any 
amount of NDA Act Power which is not fully allocated under the four 
levels of priority specified in the NDA Act Procedures. Any NDA Act 
Power allocated pursuant to this paragraph will be recalled, at 
Western's discretion, prior to any NDA Act Power being recalled from 
any of the priority groups set forth in the 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:
    a. Allottees receiving Power pursuant to Sec. G.1.(d.). This Power 
is subject to recall by Western upon a 6-month written notice. Such 6-
month written notice will not be given any earlier than 6 months after 
a contract has been executed.
    b. Allottees receiving Power pursuant to Sec. G.1.(c.). This Power 
is subject to recall by Western upon a 6-month written notice. Such 6-
month written notice will not be given any earlier than 6 months after 
a contract has been executed.
    c. Allottees receiving Power pursuant to Sec. G.1.(b.). This Power 
is subject to recall by Western upon a 3-year written notice.
    d. 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.

TN01DE94.014

    C is defined as each Allottee's contribution to the sum of the NDA 
Act Power CROD for all Allottees in the priority group.
    D is the sum of all Allottees' NDA Act Power CROD in the priority 
group.
    E is the requested amount to be recalled from the priority group.
    e. If using the above reallocation formula causes an Allottee's 
Long-Term Firm NDA Act Power allocation to be reduced below 500 kW, 
Western will withdraw the entire Long-Term Firm Allocation.
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 Withdrawn 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:
    a. Allottees receiving Power pursuant to Sec. G.1.(d.).
    b. Allottees receiving Power pursuant to Sec. G.1.(c.).
    c. Allottees receiving Power pursuant to Sec. G.1.(b.).
    d. Allottees receiving Power pursuant to Sec. G.1.(a.).
    e. 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.

TN01DE94.015

    F 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.
    G is the sum of all Allottees' Type III Withdrawable NDA Act Power 
within the group.
    H 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
    a. Long-Term Contracts. Western proposes that Long-Term Contracts 
entered into under the 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 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.
    b. Short-Term Contracts. Western proposes that Short-Term Contracts 
entered into under the 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 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.
    c. 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.
    d. The minimum Long-Term Firm NDA Act Power CROD shall be 500 kW. 
However, Western reserves the right to terminate a contract if a 
customer receiving NDA Act Power over PG&E's transmission system does 
not meet the minimum load requirements set forth in Contract 2948A.
    e. 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 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.
    f. For those Allottees receiving NDA Act Power to be used at a 
Closed Military Installation, the following provisions must be complied 
with:
    (1) 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.
    (2) 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.
    (3) 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 
Sec. G.5.(vi)(2) for each year of the contract.
3. Standard Provisions
    The contracts entered into as a result of the NDA Act Procedures 
will incorporate Western's standard provisions for power sales 
contracts, resale of electric energy, and integrated resource planning 
in addition to the General Power Contract Provisions.

Appendix A

    The military installations receiving CVP Power and their 
respective CVP CRODs as of November 30, 1993, are listed below:

----------------------------------------------------------------------------------------------------------------
                                                                  Long-term firm     Type III                   
                     Military installations                            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 Deport, San Joaquin, CA (Tracy Facility)...           3.800  ..............           3.800
Naval Weapoons 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
McCellan 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 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. 4321 et seq., and implementing regulations issued by 
the Council on Environmental Qualit , 40 CFR part 1500 et seq., and the 
Department of Energy, 10 CFR part 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 
the Power to the military installations. These studies and analyses are 
published in the Revised Environmental Assessment (DOE/EA-0467) and 
Finding of No Significant Impact (FONSI) which were prepared by Western 
for its Sacramento Area Office 1994 Power Marketing Plan. The proposal 
to implement the requirements of section 2929 of the National Defense 
Authorization Act involves the same 529 MW of power addressed in DOE/EA 
0467.
    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 in Golden, Colorado, November 21, 1994.
J.M, Shafer,
Administrator.
[FR Doc. 94-29607 Filed 11-30-94; 8:45 am]
BILLING CODE 6450-01-P-M