[Federal Register Volume 74, Number 87 (Thursday, May 7, 2009)]
[Notices]
[Pages 21400-21402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-10599]


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DEPARTMENT OF THE INTERIOR

Bureau of Reclamation


Notice of Intent To Contract for Hydroelectric Power Development 
at the Carter Lake Dam Outlet, a Feature of the Colorado-Big Thompson 
Project (C-BTP), Colorado

AGENCY: Bureau of Reclamation, Department of the Interior.

ACTION: Notice of intent to accept proposals, select one lessee, and 
contract for hydroelectric power development at Carter Lake Dam Outlet.

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SUMMARY: Current Federal policy encourages non-Federal development of 
electrical power resource potential on Federal water resource projects. 
The Department of the Interior, acting through the Bureau of 
Reclamation (Reclamation) will consider proposals for non-Federal 
development of hydroelectric power at Carter Lake Dam Outlet of the C-
BTP, Colorado. Reclamation is considering such hydroelectric power 
development under a lease of power privilege. No Federal funds will be 
available for such hydroelectric power development. The Western Area 
Power Administration (Western) would have the first opportunity to 
purchase and/or market the power that would be generated by such 
development under a lease of power privilege. The C-BTP is a 
Reclamation project. This Notice presents background information, 
proposal content guidelines, information concerning selection of one or 
more non-Federal entities to develop hydroelectric power at Carter Lake 
Dam Outlet, and power purchasing and/or marketing considerations. 
Interested entities are invited to submit a proposal on this project.

DATES: A written proposal and seven copies must be submitted on or 
before 12 p.m. (MST), on September 18, 2009. A proposal will be 
considered timely only if it is received in the office of the Lease of 
Power Privilege Coordinator by or before 12 p.m. (MST) on the 
designated date. Interested entities are cautioned that delayed 
delivery to this office due to failures or misunderstandings of the 
entity and/or of mail, overnight, or courier services will not excuse 
lateness and, accordingly, are advised to provide sufficient time for 
delivery. Late proposals will not be considered.

ADDRESSES: Written proposals and seven copies should be sent to Mr. 
George Gliko, Lease of Power Privilege Coordinator (GP-2200), Bureau of 
Reclamation, Great Plains Regional Office (GP-2200), P.O. Box 36900, 
Billings, MT 59107-6900.
    Information related to Western's purchasing and/or marketing the 
power may be obtained at Western Area Power Administration, Rocky 
Mountain Region, Attn: Dave Neumayer, Power Marketing Manager, 5555 
East Crossroads Blvd., Loveland, Colorado 80538, Telephone: (970) 461-
7322.
    Information related to the operation and maintenance of Carter Lake 
Dam and Reservoir and the St. Vrain Canal may be obtained at Northern 
Colorado Water Conservancy District, 220 Water Avenue, Berthoud, 
Colorado 80513, Telephone: (970) 532-7700.

FOR FURTHER INFORMATION CONTACT: Mr. George Gliko at (406) 247-7651.
    Reclamation will be available to meet with interested entities only 
upon written request to the Lease of Power Privilege Coordinator at the 
above address. Reclamation reserves the right to schedule a single 
meeting and/or visit to address at once the questions of all entities 
that have submitted questions or requested site visits.

SUPPLEMENTARY INFORMATION:
    The C-BTP, located in central Colorado, was authorized for 
construction, including hydroelectric power, by the Department of the 
Interior

[[Page 21401]]

Appropriations Act, 1938 (1938 Act), Public Law 75-249, 50 Stat. 564 
(August 9, 1937). Specifically, the 1938 Act appropriates funds for the 
Project's ``construction in accordance with the plan described in 
Senate Document No. 80, Seventy-fifth Congress, First Session * * *'' 
50 Stat. 595. As part of the C-BTP, the United States constructed 
Carter Lake Dam and the St. Vrain Supply Canal, which carries water 
south from the Carter Lake Dam Outlet to the vicinity of Lyons, 
Colorado. The Northern Colorado Water Conservancy District (District), 
under its contracts with the United States, has certain operation, 
maintenance, replacement, and repayment responsibilities and 
obligations concerning the C-BTP, which includes such responsibility 
for Carter Lake Dam and Reservoir and the recently transferred St. 
Vrain Supply Canal.
    Reclamation is considering hydroelectric power development at 
Carter Lake Dam Outlet through a lease of power privilege. A lease of 
power privilege is a congressionally authorized alternative to Federal 
hydroelectric power development. A lease of power privilege grants to a 
non-Federal entity the right to utilize, consistent with C-BTP 
purposes, water power head or storage at and/or operationally in 
conjunction with the C-BTP, for non-Federal electric power generation 
and sale by the entity. Leases of power privilege have terms not to 
exceed 40 years. The general authority for lease of power privilege 
under Reclamation law includes, among others, the Town Sites and Power 
Development Act of 1906 (43 U.S.C. 522) and the Reclamation Project Act 
of 1939 (43 U.S.C. 485h(c)) (1939 Act). Congress authorized hydropower 
development for the C-BTP in Public Law 95-249. Reclamation will be the 
lead Federal agency for ensuring compliance with the National 
Environmental Policy Act (NEPA) of any lease of power privilege 
considered in response to this Notice. Leases of power privilege may be 
issued only when Reclamation, upon completion of the NEPA process, 
determines that the affected hydroelectric power sites are 
environmentally acceptable. Any lease of power privilege at Carter Lake 
Dam Outlet must accommodate existing contractual commitments related to 
operation and maintenance of such existing facilities.
    Western would have the first opportunity to purchase and/or market 
the power that would be generated under any lease of power privilege. 
Under this process, Western would either purchase and market the power 
as Loveland Area Power (LAP) power or market the power independently by 
first offering it to preference entities and secondly to non-preference 
entities.
    All costs incurred by the United States related to development and 
operation and maintenance under a lease of power privilege, including 
but not limited to NEPA compliance, development of the lease of power 
privilege, design reviews, construction oversight, and any other 
associated documents, would be the expense of the lessee. In addition, 
the lessee would be required to make annual lease payments to the 
United States for the use of a Federal facility. This payment includes 
a demand, energy and administrative component. The total of the three 
(3) components for Fiscal Year 2008 would have resulted in an estimated 
lease payment between five (5) to seven (7) mils per kWh depending on 
the lessee's powerplant capacity and gross generation. The three lease 
payment components will be recalculated on an annual basis. Additional 
information regarding the annual lease payment will be made available 
upon formal request through the Lease of Power Privilege Coordinator.
    Proposal Content Guidelines: Interested parties should submit one 
or more proposals explaining in as precise detail as is practicable how 
the hydropower potential at each site would be developed. Factors which 
proposals should consider and address include, but are not limited to, 
the following:
    A. Provide all information relevant to the qualifications of the 
proposing entity to plan and implement such a project, including, but 
not limited to, information about preference status, type of 
organization, length of time in business, experience in funding, design 
and construction of similar projects, industry rating(s) that indicate 
financial soundness and/or technical and managerial capability, 
experience of key management personnel, history of any reorganizations 
or mergers with other companies, safety record, and any other 
information that demonstrates the interested entity's organizational, 
technical and financial ability to perform all aspects of the work. 
Include a discussion of past experience in operating and maintaining 
similar facilities and provide references as appropriate. The term 
``preference entity,'' as applied to a lease of power privilege, means 
an entity qualifying for preference under Section 9c of the 1939 Act, 
as a municipality, public corporation or agency, or cooperative or 
other nonprofit organization financed in whole or in part by loans made 
pursuant to the Rural Electrification Act of 1936, as amended.
    B. Provide geographical locations and describe principal structures 
and other important features of the proposed development including 
roads and transmission lines. Estimate and describe installed capacity 
and the capacity of the power facilities under dry, average, and wet 
hydrological conditions. Also describe seasonal or annual generation 
patterns. Include estimates of the amount of electrical energy that 
would be produced from each facility for each month of average, dry, 
and wet water years. If capacity and energy can be delivered to another 
location, either by the proposing entity or by potential wheeling 
agents, specify where capacity and energy can be delivered. Include 
concepts for power sales and contractual arrangements, involved parties 
and the proposed approach to wheeling if required.
    C. Indicate title arrangements and the ability to acquire title to 
or the right to occupy and use lands necessary for the proposed 
development, including such additional lands as may be required during 
construction.
    D. Identify water rights applicable to the operation of the 
proposed development, the holder of such rights, and how these rights 
would be acquired or perfected.
    E. Discuss any studies necessary to adequately define impacts on 
the C-BTP and the environment required by the development. Describe any 
significant environmental issues associated with the development and 
the proposing entity's approach for gathering relevant data and 
resolving such issues to protect and enhance the quality of the 
environment. Explain any proposed use of the hydropower development for 
conservation and utilization of the available water resources in the 
public interest.
    F. Describe anticipated contractual arrangements with the entity or 
entities having operation and maintenance responsibility for the C-BTP 
feature(s) that are proposed for utilization in the hydropower 
development under consideration. Define how the hydropower development 
would operate in harmony with the C-BTP, not impact C-BTP operations, 
existing applicable contracts related to operation and maintenance of 
C-BTP feature(s) that are proposed for utilization in the hydropower 
development under consideration, and any other applicable water-related 
contracts.
    G. Identify the organizational structure planned for the long-term 
operation and maintenance of any proposed hydropower development.
    H. Provide a management plan to accomplish such activities as 
planning,

[[Page 21402]]

NEPA compliance, lease of power privilege development, design, 
construction, facility testing, and start of hydropower production. 
Prepare schedules of these activities as applicable. Describe what 
studies are necessary to accomplish the hydroelectric power development 
and how the studies would be implemented.
    I. Estimate development cost. This cost should include all 
investment costs such as the cost of studies to determine feasibility, 
NEPA compliance, design, construction, associated bonding and financing 
as well as the amortized annual cost of the investment; also, the 
annual operation, maintenance, and replacement expense for the 
hydropower development; lease payments to the United States; and 
expenses that may be associated with the C-BTP. If there are additional 
transmission or wheeling expenses associated with the development of 
the hydropower development, these should be included. Identify proposed 
methods of financing and hydropower development. An economic analysis 
should be presented that compares the present worth of all benefits and 
costs of the hydropower development.
    Selection of Lessee: Reclamation will evaluate proposals received 
in response to this published notice.
    Reclamation will give more favorable consideration to proposals 
that (1) are well-adapted to developing, conserving, and utilizing the 
water and natural resources, (2) clearly demonstrate that the offeror 
is qualified to develop the hydropower facility and provide for long-
term operation and maintenance, and (3) develop the hydropower 
potential economically. A proposal will be deemed unacceptable if it is 
inconsistent with C-BTP purposes, as determined by Reclamation. 
Reclamation will give preference to those entities that qualify as 
preference entities (as defined under PROPOSAL CONTENT GUIDELINES, item 
A.) provided that their proposal is at least as well-adapted to 
developing, conserving, and utilizing the water and natural resources 
as other submitted proposals and that the preference entity is well 
qualified. Preference entities would be allowed 90 days to improve 
their proposals, if necessary, to be made at least equal to a proposal 
that may have been submitted by a non-preference entity.
    Power Purchasing and/or Marketing Considerations: Western would 
have the first opportunity to purchase and/or market the power that 
would be generated by the project under a lease of power privilege. 
Western will consult with Reclamation on such power purchasing and/or 
marketing considerations.
    In the event Western elects to not purchase and/or market the power 
generated by the hydropower development or such a decision cannot be 
made prior to execution of the lease of power privilege, the lessee 
would be responsible for marketing the power generated by the project 
with priority given to preference entities as heretofore defined in 
PROPOSAL CONTENT GUIDELINES, item A.
    Notice and Time Period to Enter Into Lease of Power Privilege: 
Reclamation will notify, in writing, all entities submitting proposals 
of Reclamation's decision regarding selection of the potential lessee. 
The selected potential lessee will have five years from the date of 
such notification to enter into a lease of power privilege for the site 
or sites identified in the proposal. Such leases of power privilege 
will state whether and how Western will be involved in purchasing and/
or marketing the power. Any excessive delay resulting from compliance 
with the provisions of Federal environment laws or administrative 
review by a Federal agency, pertaining to the project, may extend the 
five year time period for a period equal to that of the delay. In the 
event of litigation related to the proposed project, the five year time 
period will be extended for a period equal to that of the delay, 
provided such litigation was initiated by parties other than the 
selected potential lessee or its employees, officers, agents, assigns, 
shareholders, customers or persons or groups served by or in privity 
with the potential lessee.

    Dated: April 15, 2009.
Michael J. Ryan,
Regional Director
[FR Doc. E9-10599 Filed 5-6-09; 8:45 am]
BILLING CODE 4310-MN-P