[Federal Register Volume 74, Number 41 (Wednesday, March 4, 2009)]
[Notices]
[Pages 9391-9393]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4609]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Notice of Proposed Program and Request for Public Comments

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Program and Request for Public Comments.

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SUMMARY: The Western Area Power Administration (Western) proposes to 
adopt a Transmission Infrastructure Program. The Program is being 
proposed to implement section 402 of the American Recovery and 
Reinvestment Act of 2009 (Recovery Act) for the purpose of 
constructing, financing, facilitating, planning, operating, 
maintaining, or studying construction of new or upgraded electric power 
transmission lines and related facilities with at least one terminus 
within the area served by Western and for delivering or facilitating 
the delivery of power generated by renewable energy resources 
constructed or reasonably expected to be constructed. The proposed 
Program would use authority granted under this section to borrow funds 
from the U.S. Treasury to accomplish these purposes. The Recovery Act 
also calls for Western to use a public process to develop practices and 
policies that implement the authority granted by this section. To 
expedite the development process, Western is offering this initial 
proposal. This Federal Register notice (FRN) seeks public comment on 
these proposed principles, policies and practices.

DATES: The consultation and comment period begins today and ends April 
3, 2009. Western will present an explanation of the proposed program 
and accept oral and written comments at a public meeting on March 23, 
2009, beginning at 1 p.m. MDT, in Lakewood, Colorado. The meeting will 
also be Webcast. Western will accept written comments any time during 
the consultation and comment period. Written comments on the proposed 
Program should be submitted to Western by April 3, 2009.

ADDRESSES: The public meeting will be held at Western's Corporate 
Services Office, 12155 West Alameda Parkway, Lakewood, CO 80228 on the 
date listed above. Send written comments to: Transmission 
Infrastructure Program, Western Area Power Administration, P.O. Box 
281213, Lakewood, CO 80228-8213, e-mail [email protected]. Western 
will post information about the program development on its Web site at

[[Page 9392]]

http://www.wapa.gov, including written comments received in response to 
this notice after the close of the comment period. Western must receive 
written comments by the end of the consultation and comment period to 
ensure they are considered in Western's decision process.
    As access to Western facilities is controlled, any U.S. citizen 
wishing to attend any meetings at Western must present a government-
issued form of picture identification, such as a U.S. driver's license, 
U.S. passport, U.S. government ID, or U.S. military ID, at the time of 
the meeting. Foreign nationals should contact Western at least 15 days 
in advance of this meeting to obtain the necessary form for admittance 
to the meeting.

FOR FURTHER INFORMATION CONTACT: Please contact Transmission 
Infrastructure Program, Western Area Power Administration, P.O. Box 
281213, Lakewood, CO 80228-8213, e-mail [email protected]. This 
proposal is also available on Western's Web site at http://www.wapa.gov.

SUPPLEMENTARY INFORMATION: 

Background

    Western markets and transmits wholesale hydroelectric power, 
generated at Federal dams across the western United States. This power 
is sold to customers in accordance with Federal Law. Western's 
transmission system was developed to deliver the Federal hydropower to 
those customers. Western owns and operates an integrated 17,000 circuit 
mile, high-voltage transmission system across 15 western states and a 
1.3 million square-mile service area. Western's service area 
encompasses all of the following states: Arizona, California, Colorado, 
Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Utah, and 
Wyoming; as well as parts of Iowa, Kansas, Montana, Minnesota, and 
Texas. Today, Western makes capacity on its transmission system, excess 
to that needed to serve its preference customers, available through the 
policies and procedures outlined in its Open Access Transmission Tariff 
(OATT). Western offers nondiscriminatory access to its transmission 
system, including requests to interconnect new generating resources to 
that transmission system under its Safe Harbor OATT on file with the 
Federal Energy Regulatory Commission (FERC).
    Western is seeking public comment on the proposed principles, 
policies and practices it will use to implement the authority provided 
in section 402 of the Recovery Act. A 30-day consultation and comment 
period starts with the publication of this notice in the Federal 
Register.
    In defining the proposed Program, Western has identified a series 
of principles that will provide overarching guidance. It has further 
identified a series of policies and practices it will follow in 
implementing the proposed Program. These principles, policies and 
practices are described in this notice.

Proposed Action

    The proposed action is to implement the Program authorized in 
section 402 of the Recovery Act. The Program goal is to identify, 
prioritize and participate in the study, facilitation, financing, 
planning, operating, maintaining, and construction of new or upgraded 
transmission facilities and additions that will help bring renewable 
energy resources to market across the West. One objective is to 
encourage non-Federal participation so as to leverage Western's 
borrowing authority. The Program consists of several major components: 
(1) Project Funding, (2) Project Evaluation, (3) Project Development, 
(4) Project Operation and Maintenance, and (5) Project Rates and 
Repayment.

Principles

    In implementing the authority granted to Western in section 402, 
Western identified the following principles which provide overarching 
guidance. Western will ensure each project approved for funding using 
Treasury borrowing authority:
    1. Is in the public interest.
    2. Will not adversely impact system reliability or operations, or 
other statutory obligations.
    3. Offers a reasonable expectation that the proceeds from such 
project shall be adequate to meet Western's financial repayment 
obligations.
    4. Uses a public process to set rates for Western-owned 
transmission capacity resulting from any new facilities developed as a 
result of Western's participation in such project.
    5. Has the necessary capabilities to provide generation-related 
ancillary services.
    6. Uses the proceeds from the sale of the transmission capacity 
from such project for the repayment of the principal and interest of 
the loan from the Treasury attributable to that project, after 
reserving such funds as Western determines are necessary--
     a. to pay for the ancillary services that are provided.
     b. to meet the costs of operating and maintaining the new project.
    Western will ensure the Program:
    1. Provides an opportunity for participation of other entities in 
constructing, financing, owning, facilitating, planning, operating, 
maintaining, or studying construction of new or upgraded electric power 
transmission lines under this authority by seeking requests from 
entities interested in identifying potential projects through one or 
more notices published in the Federal Register.
    2. Uses revenues from projects developed under this authority as 
the only source of revenue for--
     a. Repayment of the associated loan for the project and
     b. Payment of expenses for ancillary services, and operation and 
maintenance.
     c. Payments for ancillary services that will be credited to the 
existing power system providing these services, when the existing 
Federal power system is the source of the ancillary services.
    3. Maintains appropriate controls to ensure, for accounting and 
repayment purposes, each transmission line and related facility project 
in which Western participates under this authority is treated as 
separate and distinct from--
     a. each other such project and
     b. all other Western power and transmission facilities.

Proposed Program

I. Table of Contents
II. Definitions
III. Project Funding
    A. Applicability
    B. Criteria
    C. Policies and Practices
IV. Project Evaluation
    A. Applicability
    B. Criteria
    C. Policies and Practices
V. Project Development and Operations and Maintenance
    A. Applicability
    B. Policies and Practices
VI. Project Rates and Repayment
    A. Applicability
    B. Criteria
    C. Policies and Practices
VII. Effective Date

II. Definitions

    A. The term ``Administrator'' means the Administrator of Western.
    B. The term ``entity'' means the firm or business concern that 
seeks to participate with Western under this authority.

III. Project Funding

    A. Applicability: All Projects selected for funding under this 
authority are proposed to be governed by the principles, policies, and 
practices outlined in this notice.
    B. Criteria: All projects selected for funding under this authority 
would be

[[Page 9393]]

evaluated based on the reasonable likelihood that the project will 
generate enough transmission service revenue to repay the principal 
investment, all operating costs and the accrued interest.
    C. Policies and Practices:
    1. Western will use generally accepted accounting principles and 
practices in recording and tracking all expenses and revenue 
transactions for each Project selected.
    2. Western will isolate these financial accounting transactions in 
its existing financial management system.

IV. Project Evaluation

    A. Applicability: All Projects to be considered for funding under 
this authority would be evaluated against the criteria outlined below.
    B. Criteria: Project evaluation includes feasibility of developing 
a project that meets the following minimum criteria:
    1. Facilitates the delivery of energy from renewable resources to 
market,
    2. Is in the public interest,
    3. Will not adversely impact system reliability or operations, or 
other statutory obligations,
    4. Is reasonable to expect that the proceeds from such project 
shall be adequate to meet Western's financial repayment obligations, 
and
    5. At least one terminus must be located within Western's service 
territory.
    C. Policies and Practices:
    1. Western will establish additional evaluation factors to evaluate 
proposed Projects as necessary.
    2. Western may, at its discretion, use outside expertise to assist 
in evaluating proposed Projects seeking funding under this authority.
    3. Western will treat data submitted by Project participants 
related to this authority, including project descriptions, 
participation and financing arrangements by other parties, as available 
to the public through the FOIA. However, participants may request 
confidential treatment of all or part of a submitted document under 
FOIA's exemption for ``Confidential Business Information.'' Materials 
so designated and which meet the criteria stipulated in the FOIA will 
be treated as exempt from FOIA inquiries.

V. Project Development and Operations and Maintenance

    A. Applicability: All Projects to be considered for funding under 
this authority.
    B. Policies and Practices:
    1. For study, facility development, construction and any other 
related purposes, where applicable, Western will consider projects that 
may be constructed pursuant to its authority under section 402 of the 
Recovery Act separately from procedures and requirements for arranging 
for transmission service or interconnection under its OATT, or related 
interconnection agreements. To the extent projects considered under 
this authority might satisfy OATT or related requests, Western will 
attempt to develop the project to satisfy those requests, however 
project development under section 402 of the Recovery Act will take 
priority. Western will use the appropriate project management methods 
to initiate, plan, execute, monitor, control and close all transmission 
projects approved for funding under this authority.
    2. Available transfer capability surplus to Western's need will be 
made available in a nondiscriminatory manner consistent with FERC open 
access transmission rules, Federal statute, and Western policies.
    3. Western will comply with all other applicable Federal laws, 
regulations and policies.

VI. Project Rates and Repayment

    A. Applicability: All Projects funded under this authority.
    B. Criteria: The repayment requirements and applicable transmission 
rates will be designed so that proceeds from the project can reasonably 
be expected to be adequate to meet the repayment obligation.
    C. Policies and Practices:
    1. Before project development, Western will confirm the reasonable 
likelihood that the project will generate enough transmission service 
revenue to meet Western's financial repayment obligations including 
principal investment, operating costs, accrued interest, and other 
appropriate costs.
    2. Transmission rates for transmission capacity Western owns or 
controls will be developed in a public process following the applicable 
requirements outlined in 10 CFR 903 and set by the Administrator as 
specified in relevant DOE orders.

Environmental Compliance

    In compliance with the National Environmental Policy Act of 1969 
(NEPA) (42 U.S.C. 4321, et seq.), the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500-1508) and the DOE 
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western 
has determined that this action is categorically excluded from further 
NEPA analysis. Future actions under this authority will undergo 
appropriate NEPA analysis.

    Dated: February 20, 2009.
Timothy J. Meeks,
Administrator.
 [FR Doc. E9-4609 Filed 3-3-09; 8:45 am]
BILLING CODE 6450-01-P