[Federal Register Volume 61, Number 236 (Friday, December 6, 1996)]
[Rules and Regulations]
[Pages 64603-64609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31064]


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DEPARTMENT OF ENERGY

10 CFR Part 1021

RIN 1901-AA67


National Environmental Policy Act Implementing Procedures

AGENCY: Department of Energy.


[[Page 64604]]


ACTION: Final rule.

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SUMMARY: The Department of Energy (DOE or the Department) is amending 
its regulations governing compliance with the National Environmental 
Policy Act (NEPA). These amendments incorporate changes primarily 
related to DOE's power marketing activities, based on DOE's experience 
in applying the current NEPA regulations. The revised regulations are 
intended to improve DOE's efficiency in implementing NEPA requirements 
by reducing costs and preparation time, while maintaining quality, 
consistent with the DOE Secretarial Policy Statement on NEPA issued in 
June 1994.

EFFECTIVE DATE: This rule will become effective January 6, 1997.

FOR FURTHER INFORMATION CONTACT: Carol Borgstrom, Director, Office of 
NEPA Policy and Assistance, EH-42, U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC 20585-0119, (202) 586-4600 or 
leave a message at (800) 472-2756.

SUPPLEMENTARY INFORMATION:

I. Background

    The National Environmental Policy Act of 1969 (42 USC 4321 et seq.) 
requires that Federal agencies prepare environmental impact statements 
for major Federal actions that may ``significantly affect the quality 
of the human environment.'' NEPA also created the President's Council 
on Environmental Quality (CEQ), which issued regulations in 1978 
implementing the procedural provisions of NEPA. Among other 
requirements, the CEQ NEPA regulations (40 CFR Parts 1500-1508) require 
Federal agencies to adopt their own implementing procedures to 
supplement the Council's regulations. DOE's NEPA implementing 
regulations were promulgated in 1992 (57 FR 15122, April 24, 1992) and 
are codified at 10 CFR Part 1021.
    On February 20, 1996, DOE published a proposed rulemaking to revise 
the 1992 NEPA implementing regulations (61 FR 6414). Publication of the 
Notice of Proposed Rulemaking began a 45-day public comment period that 
originally ended on April 5, 1996. In response to requests, the comment 
period was subsequently reopened on April 19, 1996 (61 FR 17257), and 
extended until May 10, 1996. As part of the notice and comment process 
and also in response to requests, DOE held a public hearing on the 
proposed amendments on May 6, 1996. The final rule on all of the 
proposed amendments, other than those that pertain to power marketing 
activities, was published on July 9, 1996 (61 FR 36222). Regarding the 
power marketing activities, DOE decided to solicit further input, 
especially from state and Federal agencies that have responsibility for 
environmental review of comparable non-federal utility projects in the 
Pacific Northwest. Therefore, in the same issue of the Federal Register 
as noted above (July 9, 1996), DOE published a notice of limited 
reopening of the comment period on the following proposed amendments to 
Subpart D--Typical Classes of Actions, which primarily affect power 
marketing activities: B4.1-B4.3, B4.6, B4.10-B4.13, C4, C7, and D7 (61 
FR 35990). In response to a request, DOE also provided further 
clarification of the rationale for two of the proposed amendments: 
B4.1, Contracts/marketing plans/policies for excess electric power, and 
B4.3, Electric power marketing rate changes. The comment period was 
extended until August 8, 1996.
    Copies of all written comments and the transcript of the public 
hearing held on May 6, 1996, have been provided to CEQ and are 
available for public inspection at the DOE Freedom of Information 
Reading Room, Room 1E-190, Forrestal Building, 1000 Independence 
Avenue, SW., Washington, DC 20585, (202) 586-6020.
    The following amendments relating primarily to power marketing 
activities revise subpart D of the existing regulations by expanding or 
clarifying existing classes of actions. This final rule adopts the 
amendments proposed in the Notice of Proposed Rulemaking for the power 
marketing classes of actions listed above, with certain changes 
discussed below, and amends the existing regulations at 10 CFR Part 
1021. Copies of the final amendments to the rule are available upon 
request from the information contact listed above.
    In accordance with the CEQ NEPA regulations, 40 CFR 1507.3, DOE has 
consulted with CEQ regarding these final amendments to the DOE NEPA 
rule. CEQ has found that the amendments conform with NEPA and the CEQ 
regulations and has no objection to their promulgation.

II. Statement of Purpose

    The amendments to the DOE NEPA regulations are intended to improve 
the efficiency of DOE's implementation of NEPA by expanding or 
clarifying certain classes of actions, primarily related to power 
marketing activities, thereby reducing implementation costs and time. 
This goal is consistent with the DOE Secretarial Policy Statement on 
NEPA (June 1994), which encourages actions to streamline the NEPA 
process without sacrificing quality and to make the process more useful 
to decision makers and the public. Full compliance with the letter and 
spirit of NEPA is an essential priority for DOE. In addition, DOE's 
experience in applying the DOE NEPA regulations since they were issued 
in 1992 suggested the need for DOE to make changes to its NEPA 
regulations.

III. Comments Received and DOE's Responses

    DOE has considered and evaluated the comments on the proposed 
rulemaking concerning power marketing activities received during the 
public comment periods. Minor revisions suggested in these comments 
have been incorporated into the final amendments to the rule. The 
following discussion describes the comments received, provides DOE's 
responses to the comments, and describes any resulting changes to the 
proposed amendments. Section references and headings below are 
identical to those in the proposed amendments.

A. Procedural Comments

    One commenter requested that no action be taken to adopt any of the 
proposed power marketing administration amendments until additional 
information could be obtained from relevant state and Federal agencies 
(e.g., state environmental review procedures for comparable non-federal 
utility projects). In response, the final rule published on July 9, 
1996 (61 FR 36222) excluded the proposed amendments pertaining 
primarily to power marketing activities, and the comment period for the 
proposed amendments pertaining to power marketing activities was 
reopened from July 9, 1996 through August 8, 1996 (61 FR 35990, July 9, 
1996). As explained below, DOE received one set of new comments during 
this reopened comment period.

B. Comments on Appendices of Subpart D--Typical Classes of Actions

    Two commenters objected to several categorical exclusions (B4.1, 
B4.10-B4.13) on the grounds of cumulative effects, connected actions, 
or extraordinary circumstances. Another commenter objected to a number 
of categorical exclusions (B4.1, B4.2, B4.6, B4.10-B4.13) on the 
grounds that they appear to expand substantially the universe of power 
marketing administration actions that would no longer require an 
environmental impact statement or perhaps an environmental assessment.

[[Page 64605]]

    Under the current regulations, before a proposed action may be 
categorically excluded, DOE must determine in accordance with 
Sec. 1021.410(b) that: (1) The proposed action fits within a class of 
actions listed in appendix A or B to subpart D; (2) there are no 
extraordinary circumstances related to the proposal that may affect the 
significance of the environmental effects of the action; and (3) there 
are no connected or related actions with cumulatively significant 
impacts and, where appropriate, the proposed action is a permissible 
interim action. In addition, to fit within a class of actions that is 
normally categorically excluded under appendix B, a proposed action 
must include certain integral elements (appendix B, paragraphs B(1) 
through (4)). These conditions are intended to ensure that an excluded 
action will not threaten a violation of applicable requirements, 
require siting and construction of waste management facilities, disturb 
hazardous substances such that there would be uncontrolled or 
unpermitted releases, or adversely affect environmentally sensitive 
resources. DOE believes that the general restrictions on the 
application of categorical exclusions will provide adequate safeguards 
to ensure that they are not applied to activities that could result in 
significant effects. For actions that do not satisfy these conditions, 
an environmental impact statement or an environmental assessment would 
be prepared. DOE believes that it will serve environmental concerns and 
the public's interest best by focusing its efforts on the careful 
analysis of those actions that actually have the potential for 
significant impact.
    Finally, after considering all public comments on the proposed 
amendments, DOE has determined that the final amendments to appendix B 
constitute classes of actions that do not individually or cumulatively 
have a significant effect on the human environment, and are covered by 
a finding to that effect in Section 1021.410(a). In making this 
finding, DOE has considered, among other things, its own experience 
with these classes of actions, other agencies' experience as reflected 
in their NEPA procedures, DOE's technical judgment, and the comments 
received on the proposed amendments.

Classes of Actions Listed in Appendix B

     Proposed Clarification B4.1--Contracts/marketing plans/
policies for excess electric power.
    One commenter requested explanation of the rationale for the 
proposed clarification of B4.1. The existing categorical exclusion is 
for the establishment and implementation of contracts, plans, and 
policies, the terms of which do not exceed five years, would not cause 
changes in normal operating limits, and any related transmission would 
occur over existing transmission systems. The existing five-year term 
limit was proposed for elimination from this categorical exclusion 
because experience has demonstrated that the mere length of a contract, 
policy, or plan does not have the potential for environmental impacts. 
Rather, the development or integration of new generating resources, 
changes in the operation of existing generation resources, or 
construction of transmission facilities, are the types of activities 
that have shown the potential for environmental impacts. By not 
including these changes in generation, operation or transmission, the 
categorical exclusion ensures that only those actions that have no 
potential for environmental impact would be categorically excluded. 
Those contracts, plans, and policies that do not fit within this 
categorical exclusion would require further NEPA analysis to ascertain 
the associated environmental impacts.
     Proposed Modification B4.2--Export of electric energy.
    DOE proposed to modify the existing categorical exclusion for the 
export of electric energy over existing transmission systems to also 
apply to exports over transmission system changes that are themselves 
categorically excluded (e.g., short powerline segments, substations). 
One commenter stated that DOE should consider the social and economic 
impacts on U.S. utility ratepayers caused by selling power to foreign 
countries. DOE believes that the potential for physical impacts of such 
a proposed action are very slight and notes that socioeconomic impacts 
alone do not require the preparation of an environmental impact 
statement (40 CFR 1508.14).
     Proposed Modification B4.3--Electric power marketing rate 
changes.
    The proposed modification would eliminate the existing restriction 
that, in order to be categorically excluded, a proposed rate change 
must not exceed the rate of inflation, a condition that DOE has found 
is not relevant to the action's potential for environmental impacts. 
Any environmental impacts resulting from rate changes would be caused 
only if the rate change involved associated changes in the operation of 
generation resources. Therefore, this categorical exclusion would only 
apply to those rate changes that would not affect the operation of 
generation projects. The term ``changes in rates,'' as in the proposed 
rule, was changed to ``rate changes'' to be consistent with C3.
    One commenter expressed concern regarding the economic impact to 
domestic utility customers of allowing electric power marketing rate 
changes to be raised more than the rate of inflation, and of the 
unrestrained sale of electricity to the highest bidder, whether foreign 
or domestic. Federal Power Marketing Administrations market their power 
resources at cost. Existing law prevents Federal electric power from 
being sold at a profit, and further prohibits customers from reselling 
Federal power for profit. Federal Power Marketing Administrations are 
not allowed to sell power to the highest bidder, but rather must 
recover all costs associated with the power. DOE believes that there is 
no potential for environmental impacts from rate changes based on 
revenue requirements where, as the categorical exclusion requires, the 
operations of generation projects would remain within normal operating 
limits.
     Proposed Modification B4.10--Deactivation, dismantling and 
removal of electric powerlines and substations.
    DOE proposed to add deactivation to the categorical exclusion for 
dismantling and removal of transmission lines and to add substations, 
switching stations and other transmission facilities. One commenter 
suggested that this categorical exclusion applies to deactivation of 
power plants and that such actions should include public participation. 
Deactivation under this categorical exclusion, however, would not apply 
to power plants, but only to transmission facilities.
     Proposed Modification B4.11--Construction or modification 
of electric power substations.
     Proposed Modification B4.12--Construction of electric 
powerlines (generally less than 10 miles in length), not integrating 
major new sources.
     Proposed Modification B4.13--Reconstruction and minor 
relocation of existing electric powerlines (generally less than 20 
miles in length).
    The proposed amendments include: (1) expanding categorically 
excluded modification activities to substations of any voltage, 
provided that the modification does not increase the existing voltage 
(B4.11); (2) expanding the construction of tap lines to include all 
electric powerlines not integrating major new sources (B4.12); and (3) 
increasing the length of powerlines that can be reconstructed from 10 
miles to 20 miles (B4.13).
    One commenter noted correctly that the word ``generally'' as 
applied to the

[[Page 64606]]

length of electric powerlines in proposed modifications to B4.11 could 
allow the class of actions to be applied to proposed actions that would 
otherwise not even approximately fit the definition. Second, commenters 
questioned the justification for the specific quantity values chosen 
and even whether any specific value could be justified.
    DOE's intention with respect to both issues is better expressed by 
the concept of ``approximately'' rather than ``generally,'' and the 
class of actions in the final rule has been changed accordingly. By 
using ``approximately,'' DOE is indicating that the numerical values 
used in defining the class of actions are to be interpreted flexibly 
rather than with unwarranted precision. DOE has also changed the 
phrases in B4.11 and B4.12 to be consistent in wording. In addition, 
for consistency DOE has changed the phrase ``major new resource'' in 
B4.11 and ``major new sources of generation into a main transmission 
system'' in B4.12, as in the proposed rule, to read ``major new 
generation resources into a main transmission system'' in both B4.11 
and B4.12.
    Two commenters stated that the proposed modifications to these 
three categorical exclusions would exempt a wide array of power 
marketing administration electric power transmission line construction, 
reconstruction and/or relocation from the requirements of an 
environmental assessment or environmental impact statement, possibly 
resulting in a lower standard of environmental review than is imposed 
by relevant state agencies, on comparable projects undertaken by non-
federal utilities, or those imposed by other Federal agencies on non-
federal entities, or even those adopted by other Federal agencies for 
their own actions. In response to this concern, in conjunction with the 
second reopened comment period, DOE asked the appropriate state 
agencies for their views on the proposed modifications to the classes 
of actions primarily related to power marketing, and on how the 
environmental review that would result for Federal power marketing 
administration projects would compare with the review those state 
agencies require for comparable non-federal utility projects. 
Similarly, the Department solicited the views of other Federal agencies 
that may engage in comparable activities or issue permits to non-
federal entities conducting comparable activities.
    Of the states and Federal agencies that DOE contacted, one 
commenter responded to this initiative. The commenter was concerned 
about exempting facilities of this magnitude from meaningful 
environmental review given the level of controversy and the potential 
environmental consequences typically associated with the construction 
of new transmission lines. In response to this general concern 
regarding environmental review, DOE notes that the exemption could only 
be applied if there were no extraordinary circumstances, connected 
actions with cumulatively significant impacts, or violation of the 
integral elements, as discussed above under Section III.B. For example, 
any proposed action with potential impacts on a sensitive resource, or 
involving scientific controversy about the environmental effects of the 
proposal would constitute a violation of the integral elements or 
extraordinary circumstances and thus would not be categorically 
excluded. Similarly, if the electric powerline or substation was ``a 
connected action'' with regard to a facility not covered by a 
categorical exclusion (such as a power plant), the appropriate level of 
NEPA review would be conducted, i.e., environmental assessment or 
environmental impact statement. Therefore, the expansion of these 
categorical exclusions will not reduce the meaningful environmental 
review of Federal proposals with significant controversy or potential 
environmental consequences, as compared to non-federal proposals.
    This commenter previously provided a similar comment regarding 
specific concerns about all three proposed modifications stemming, in 
part, from the nature of the transmission grid owned and operated by 
the Bonneville Power Administration (BPA) in the Pacific Northwest. The 
commenter noted that, unlike other Federal Power Marketing 
Administrations, BPA is the predominant owner and operator of major 
transmission lines in the Pacific Northwest. Because of the ubiquity of 
BPA's lines in this area, the commenter stated that the proposed 
categorical exclusions could permit BPA to build substantial facilities 
in the Northwest, including facilities in major metropolitan areas, 
without being subject to meaningful environmental scrutiny. For the 
reasons stated immediately above, DOE does not believe that the 
circumstance described in the comment could occur.
    The commenter suggested that these proposed amendments to the 1992 
DOE NEPA regulations would supplant a Memorandum of Understanding (MOU) 
between the commenter and BPA. The NEPA regulations have no effect on 
the MOU; it remains in effect as agreed upon by the two parties. The 
commenter also incorrectly implied that the proposed categorical 
exclusions are new. However, these categorical exclusions have existed 
since 1992. Under B4.11, the proposal would allow the modification of 
substations at any voltage, as opposed to those at a power delivery of 
230 kV, as long as there is no voltage increase. Under B4.12, the 
proposal would allow the construction of any electric powerline, not 
just ``tap'' lines. Under B4.13, the length of existing electric 
powerlines that could be reconstructed would be increased from 10 to 20 
miles. DOE notes, however, that this reconstruction and/or minor 
relocation under B4.13 is only for existing electric powerlines and 
only to enhance environmental and land use values.

Classes of Actions Listed in Appendix C

     Modification C3--Electric Power Marketing Rate Changes, 
not Within Normal Operating Limits.
    As discussed above in reference to exclusion B4.3, DOE has 
determined that inflation is not relevant to an action's potential for 
environmental impact. Consistent with that determination, and as a 
necessary conforming change, DOE has modified paragraph C3 of Appendix 
C. This modification bases the application of the class of actions on 
the effect on the operation of generation projects, rather than on the 
rate of inflation.
     Proposed Modification C4--Upgrading and constructing 
electric power lines.
    There were no comments on the proposed modification to this class 
of actions; however, to be consistent with language in categorical 
exclusions B4.11, B4.12, and B4.13, DOE is changing ``powerline'' to 
``powerlines'' and ``upgrading (reconstructing)'' to ``reconstructing 
(upgrading and rebuilding).''
     Proposed Modification C7--Allocation of electric power, no 
major new generation resource/major changes in operation of generation 
resources/major new loads.
    DOE proposed amending this class of actions to be consistent with 
B4.1 and D7 and to focus on market responses to the action rather than 
the duration of the contract. One commenter expressed concern that DOE 
was privatizing its energy resources. This class of actions does not 
address privatization or sale of facilities, but rather the marketing 
or allocation of power by the power marketing administrations and the 
associated changes in generation resources, operating limits, or new 
loads.

[[Page 64607]]

Classes of Actions Listed in Appendix D

     Proposed Modification D7--Allocation of electric power, 
major new generation resources/major changes in operation of power 
generation resources/major loads.
    DOE proposed amending this class of actions to be consistent with 
B4.1 and C7 to focus on market responses to the change in allocation or 
operation rather than duration of the underlying contract. One 
commenter questioned the use of the word ``major,'' referencing ``Major 
Projects'' as used in the previous C1 class of action which was removed 
by the recent final rule (61 FR 36222). The word ``major'' in this 
class of actions is used as an adjective with its normal usage, in this 
case modifying the terms generation resources, changes, and loads.

IV. Procedural Review Requirements

A. Environmental Review Under the National Environmental Policy Act

    These amendments to the DOE NEPA rule establish, modify, and 
clarify procedures for considering the environmental effects of DOE 
actions within the Department's decision making process. Implementation 
of this rule will not affect the substantive requirements imposed on 
DOE or on applicants for DOE licenses, permits, and financial 
assistance, and this rule will not result in environmental impacts. 
Therefore, DOE has determined that this rule is covered by the 
categorical exclusion found at paragraph A6 of appendix A to subpart D, 
10 CFR Part 1021, which applies to procedural rulemaking. Accordingly, 
neither an environmental impact statement nor an environmental 
assessment is required.

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 USC 601 et seq.) requires that an 
agency prepare an initial regulatory flexibility analysis to be 
published at the time the proposed rule is published. This requirement 
does not apply if the agency ``certifies that the rule will not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities'' (5 USC 603). The rule modifies existing policies 
and procedural requirements for DOE compliance with NEPA. The rule 
makes no substantive changes to requirements imposed on applicants for 
DOE licenses, permits, financial assistance, and similar actions as 
related to NEPA compliance. Therefore, DOE certifies that the rule will 
not have a ``significant economic impact on a substantial number of 
small entities.''

C. Review Under the Paperwork Reduction Act

    No new information collection or recordkeeping requirements are 
imposed by these amendments. Accordingly, no Office of Management and 
Budget clearance is required under the Paperwork Reduction Act of 1980 
(44 U.S.C. 3501 et seq.).

D. Review Under Executive Order 12612

    Executive Order 12612, ``Federalism,'' 52 FR 41685 (October 30, 
1987) requires that regulations be reviewed for Federalism effects on 
the institutional interest of states and local governments, and, if the 
effects are sufficiently substantial, preparation of a Federalism 
assessment is required to assist senior policymakers. These amendments 
will affect Federal NEPA compliance procedures, which are not subject 
to state regulation. The amendments will not have any substantial 
direct effects on states and local governments within the meaning of 
the Executive Order. Therefore, no Federalism assessment is required.

E. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, Section 3(a) of Executive Order 12988, 
``Civil Justice Reform'' 61 FR 4729 (February 7, 1996), imposes on 
Executive agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity, (2) write 
regulations to minimize litigation, and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. With regard to the review 
required by Section 3(a), Section 3(b) of Executive Order 12988 
specifically requires that Executive agencies make every reasonable 
effort to ensure that the regulation: (1) clearly specifies the 
preemptive effect, if any; (2) clearly specifies any effect on existing 
Federal law or regulation; (3) provides a clear legal standard for 
affected conduct while promoting simplification and burden reduction; 
(4) specifies the retroactive effect, if any; (5) adequately defines 
key terms; and (6) addresses other important issues affecting clarity 
and general draftsmanship under any guidelines issued by the Attorney 
General. Section 3(c) of Executive Order 12988 requires Executive 
agencies to review regulations in light of applicable standards in 
Section 3(a) and Section 3(b) to determine whether they are met or it 
is unreasonable to meet one or more of them. DOE has completed the 
required review and determined that, to the extent permitted by law, 
the final rule meets the relevant standards of Executive Order 12988.

F. Review Under Executive Order 12866

    The final amendments were reviewed in accordance with Executive 
Order 12866, ``Regulatory Planning and Review,'' 58 FR 51735 (October 
4, 1993), which requires a Federal agency to prepare a regulatory 
assessment, including the potential costs and benefits, of any 
``significant regulatory action.'' The order defines ``significant 
regulatory action'' as any regulatory action that may have an annual 
effect on the economy of $100 million or more and may adversely affect 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or state, local, or tribal governments in a material 
way; create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency; materially alter the 
budgetary impact of entitlements, grants, user fees, or loan programs; 
or raise novel legal or policy issues arising out of legal mandates 
(section 3(f)).
    These amendments will modify already existing policies and 
procedures for compliance with NEPA. The amendments contain no 
substantive changes in the requirements imposed on applicants for a DOE 
license, financial assistance, permit, or similar actions. Therefore, 
DOE has determined that the incremental effect of these amendments to 
the DOE NEPA regulations will not have the magnitude of effects on the 
economy, or any other adverse effects, to bring this proposal within 
the definition of a ``significant regulatory action.''

G. Review Under the Unfunded Mandates Reform Act

    Under Section 205 of the Unfunded Mandates Reform Act of 1995 (2 
USC 1533), Federal agencies are required to prepare a budgetary impact 
statement to accompany any proposed or final rule that includes a 
Federal mandate that may result in the expenditure by state, local and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year. Because the DOE NEPA regulations 
affect only DOE and do not create obligations on the part of any other 
person or government agency, neither state, local or tribal governments 
nor the private sector will be affected by amendments to these 
regulations. Therefore, DOE has determined that further review under 
the Unfunded Mandates Reform Act is not required.

[[Page 64608]]

H. Congressional Notification

    The final regulations published today are subject to the 
Congressional notification requirements of Small Business Regulatory 
Enforcement Fairness Act of 1996 (Act) (5 USC 801). The Office of 
Management and Budget has determined that the final regulations do not 
constitute a ``major rule'' under the Act (5 USC 804). DOE will report 
to Congress on the promulgation of the final regulations prior to the 
effective date set forth at the beginning of this notice.

List of Subjects in 10 CFR Part 1021

    Environmental impact statements.
    Issued in Washington, D.C., November 27, 1996.
Peter N. Brush,
Principal Deputy Assistant Secretary, Environment, Safety and Health.

    For reasons set out in the preamble, 10 CFR Part 1021 is amended as 
follows:

PART 1021--NATIONAL ENVIRONMENTAL POLICY ACT IMPLEMENTING 
PROCEDURES

    1. The authority citation for Part 1021 continues to read as 
follows:

    Authority: 42 U.S.C. 7254; 42 U.S.C. 4321 et seq.

    2. Appendix B to Subpart D, is amended to revise the Table of 
Contents entries for B4.1, B4.2, B4.3, B4.6, B4.10, B4.11, B4.12, and 
B4.13 to read as follows:

Appendix B to Subpart D to Part 1021--Categorical Exclusions Applicable 
to Specific Agency Actions

Table of Contents

* * * * *
    B4.1  Contracts/marketing plans/policies for excess electric 
power.
    B4.2  Export of electric energy.
    B4.3  Electric power marketing rate changes, within normal 
operating limits.
* * * * *
    B4.6  Additions/modifications to electric power transmission 
facilities within previously developed area.
* * * * *
    B4.10  Deactivation, dismantling and removal of electric 
powerlines and substations.
    B4.11  Construction or modification of electric power 
substations.
    B4.12  Construction of electric powerlines approximately 10 
miles in length or less, not integrating major new sources.
    B4.13  Reconstruction and minor relocation of existing electric 
powerlines approximately 20 miles in length or less.

    3. Appendix B to Subpart D, section B4, is amended to revise 
paragraphs B4.1, B4.2, B4.3, B4.6, B4.10, B4.11, B4.12 and B4.13, to 
read as follows:

    B4.  Categorical Exclusions Applicable to Power Marketing 
Administrations and to all of DOE with Regard to Power Resources.
    B4.1  Establishment and implementation of contracts, marketing 
plans, policies, allocation plans, or acquisition of excess electric 
power that does not involve: (1) the integration of a new generation 
resource, (2) physical changes in the transmission system beyond the 
previously developed facility area, unless the changes are 
themselves categorically excluded, or (3) changes in the normal 
operating limits of generation resources.
    B4.2  Export of electric energy as provided by Section 202(e) of 
the Federal Power Act over existing transmission systems or using 
transmission system changes that are themselves categorically 
excluded.
    B4.3  Rate changes for electric power, power transmission, and 
other products or services provided by a Power Marketing 
Administration that are based on a change in revenue requirements if 
the operations of generation projects would remain within normal 
operating limits.
* * * * *
    B4.6  Additions or modifications to electric power transmission 
facilities that would not affect the environment beyond the 
previously developed facility area including, but not limited to, 
switchyard rock grounding upgrades, secondary containment projects, 
paving projects, seismic upgrading, tower modifications, changing 
insulators, and replacement of poles, circuit breakers, conductors, 
transformers, and crossarms.
* * * * *
    B4.10  Deactivation, dismantling, and removal of electric 
powerlines, substations, switching stations, and other transmission 
facilities, and right-of-way abandonment.
    B4.11  Construction of electric power substations (including 
switching stations and support facilities) with power delivery at 
230 kV or below, or modification (other than voltage increases) of 
existing substations and support facilities, that could involve the 
construction of electric powerlines approximately 10 miles in length 
or less, or relocation of existing electric powerlines approximately 
20 miles in length or less, but not the integration of major new 
generation resources into a main transmission system.
    B4.12  Construction of electric powerlines approximately 10 
miles in length or less that are not for the integration of major 
new generation resources into a main transmission system.
    B4.13  Reconstruction (upgrading or rebuilding) and/or minor 
relocation of existing electric powerlines approximately 20 miles in 
length or less to enhance environmental and land use values. Such 
actions include relocations to avoid right-of-way encroachments, 
resolve conflict with property development, accommodate road/highway 
construction, allow for the construction of facilities such as 
canals and pipelines, or reduce existing impacts to environmentally 
sensitive areas.

    4. Appendix C to Subpart D is amended to revise the Table of 
Contents entries for C3, C4, and C7 to read as follows:

Appendix C to Subpart D to Part 1021--Classes of Actions That Normally 
Require EAs But Not Necessarily EISs

Table of Contents

* * * * *
    C3  Electric power marketing rate changes, not within normal 
operating limits.
    C4  Reconstructing and constructing electric powerlines.
* * * * *
    C7  Allocation of electric power, no major new generation 
resource/major changes in operation of generation resources/major 
new loads.
* * * * *
    5. Appendix C to Subpart D to Part 1021 is amended to revise 
paragraphs C3, C4, and C7 to read as follows:
* * * * *
    C3  Rate changes for electric power, power transmission, and 
other products or services provided by Power Marketing 
Administrations that are based on changes in revenue requirements if 
the operations of generation projects would not remain within normal 
operating limits.
    C4  Reconstructing (upgrading or rebuilding) existing electric 
powerlines more than approximately 20 miles in length or 
constructing new electric powerlines more than approximately 10 
miles in length.
* * * * *
    C7  Establishment and implementation of contracts, policies, 
marketing plans, or allocation plans for the allocation of electric 
power that do not involve (1) the addition of new generation 
resources greater than 50 average megawatts, (2) major changes in 
the operating limits of generation resources greater than 50 average 
megawatts, or (3) service to discrete new loads of 10 average 
megawatts or more over a 12 month period. This applies to power 
marketing operations and to siting, construction, and operation of 
power generating facilities at DOE sites.
* * * * *
    6. Appendix D to Subpart D is amended to revise the Table of 
Contents entry for D7 to read as follows:

Appendix D to Subpart D to Part 1021--Classes of Actions That Normally 
Require EISs

Table of Contents

* * * * *
    D7  Allocation of electric power, major new generation 
resources/major changes in operation of generation resources/major 
loads.
* * * * *
    7. Appendix D to Subpart D to Part 1021 is amended to revise 
paragraph D7 to read as follows:

    D7  Establishment and implementation of contracts, policies, 
marketing plans or allocation plans for the allocation of electric 
power that involve (1) the addition of new generation resources 
greater than 50 average megawatts, (2) major changes in the 
operating limits of generation resources greater than 50 average 
megawatts, or (3) service to discrete

[[Page 64609]]

new loads of 10 average megawatts or more over a 12 month period. 
This applies to power marketing operations and to siting 
construction, and operation of power generating facilities at DOE 
sites.
* * * * *
[FR Doc. 96-31064 Filed 12-5-96; 8:45 am]
BILLING CODE 6450-01-P