[Federal Register Volume 69, Number 29 (Thursday, February 12, 2004)]
[Notices]
[Pages 6966-6967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-257]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission


Notice of Change in Procedures for the Selection of Third-Party 
Contractors for Hydropower Licensing

February 4, 2004.
    Section 2403(a) of the Energy Policy Act of 1992 affirmed the 
Federal Energy Regulatory Commission's (Commission) authority to use 
qualified third-party contractors, paid for by the applicant, to 
prepare environmental impact statements (EISs) required by the National 
Environmental Policy Act (NEPA) for applications for licensing 
hydropower projects.
    In April 1999, the Commission solicited qualification statements 
from contractors seeking status to prepare EISs under the third-party 
contracting provisions of section 2403(a). On October 9, 1999, the 
Commission issued a notice listing the names of 28 qualified third-
party contractors.
    The Commission has decided to change its procedures for selecting 
third-party contractors for the preparation of EISs required for 
proposals for licensing hydropower projects. Effective immediately, the 
Commission will no longer maintain a list of qualified third-party 
contractors. Instead, applicants electing to use a third-party 
contractor to assist the Commission in meeting its responsibilities 
under NEPA would issue a Request for Proposals for potential third-
party contractors, evaluate the responses, and submit the three best 
proposals to the Commission staff for selection. This approach for

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selecting third-party contractors will now be consistent with the 
approach currently used for applications for certification of natural 
gas facilities. The attached document provides an overview for starting 
the process. Additional information is available on the Commission's 
Web site at http://www.ferc.gov/industries/hydropower/enviro/third-party/tpc.asp.

Magalie R. Salas,
Secretary.

Office of Energy Projects; Third-Party Contracting Program

    The Office of Energy Project's voluntary ``third-party 
contracting'' (3-PC) program enables applicants seeking certificates 
for natural gas facilities or licenses for hydroelectric power 
projects to fund a third-party contractor to assist the Commission 
in meeting its responsibilities under the National Environmental 
Policy Act of 1969.
    The 3-PC program involves the use of independent contractors to 
assist Commission staff in its environmental review and preparation 
of environmental documents. A third-party contractor is selected by, 
and works under the direct supervision and control of Commission 
staff, and is paid for by the applicant. Prospective applicants 
considering participation in this 3-PC program should meet with 
Commission staff to discuss their proposals, and to answer any 
questions they might have relative to the program itself.
    Applicants electing to participate in the 3-PC program will be 
required to prepare a draft Request for Proposal (RFP) for review 
and approval by the Commission staff before it is issued. The RFP 
will be required to include screening criteria, and an explanation 
of how the criteria will be used to select among the contractors who 
respond to the RFP. Subsequently, applicants would issue the 
approved RFP and screen all proposals received for technical 
adequacy and Organizational Conflict of Interest (OCI). The 
applicant is responsible for reviewing carefully all OCI materials 
(submitted for the prime and each proposed subcontractor as part of 
each proposal) to determine whether the candidate is capable of 
impartially performing the environmental services required under the 
third-party contract. The applicant will then submit to Commission 
staff the technical and cost proposals and OCI statements of their 
three best qualified candidates.
    Final contractor selection will be made by Commission staff 
based on an evaluation of the technical, managerial, and personnel 
aspects of the candidates' proposals as well as OCI considerations. 
While bid fees will not necessarily be the controlling factor in the 
selection of the third-party contractor, relative cost levels will 
be considered. Commission staff will send the applicant an approval 
letter clarifying any details and/or resolving any issues that 
remain outstanding following review of the selected third-party 
contractor's proposal.
    As soon as practical, the applicant will award a contract to the 
third-party contractor identified in the Commission staff's approval 
letter. The applicant and the contractor will determine the 
appropriate form of agreement for payment of the contractor by the 
applicant. Because the applicant will actually award the contract to 
the third-party contractor, it will be the applicant's 
responsibility to answer questions from candidates not selected.
    The information provided above is intended to give a quick 
overview of the 3-PC program and how to get started. Detailed 
guidance specific to the gas and hydro process will be available 
soon. In the interim, applicants with specific questions about the 
3-PC program can contact the following Commission staff:
    Gas Certificate 3-PC program: Richard R. Hoffmann, Director, 
Division of Gas--Environment and Engineering, telephone (202) 502-
8066, Office of Energy Projects, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426; http://www.ferc.gov/industries/gas/enviro/third-party/tpc.asp.
    Hydropower Licensing 3-PC program: Ann F. Miles, Director, 
Division of Hydropower--Environment and Engineering, telephone (202) 
502-6769, Office of Energy Projects, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426; http://www.ferc.gov/industries/hydropower/enviro/third-party/tpc.asp.
    Inquiries regarding OCI should be directed to: David R. Dickey, 
Staff Attorney, General and Administrative Law (GC-13), telephone 
(202) 502-8527, Office of General Counsel, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426.
    Inquiries regarding ex parte should be directed to: Carol C. 
Johnson, Staff Attorney, General and Administrative Law (GC-13), 
telephone (202) 502-8521, Office of General Counsel, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426.

 [FR Doc. E4-257 Filed 2-11-04; 8:45 am]
BILLING CODE 6717-01-P