[Federal Register Volume 74, Number 122 (Friday, June 26, 2009)]
[Notices]
[Pages 30558-30559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15126]


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DEPARTMENT OF ENERGY


Variance for Certain Requirements for the Electric Drive Vehicle 
Battery and Component Manufacturing Initiative Under the Department of 
Energy's National Environmental Policy Act Implementing Procedures

AGENCY: U.S. Department of Energy.

ACTION: Notice of variance.

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SUMMARY: This notice announces the Department of Energy's (DOE's) 
decision, pursuant to 10 CFR 1021.343(c), that it is in the interest of 
public welfare to grant a variance from certain requirements of its 
National Environmental Policy Act (NEPA) Implementing Procedures (10 
CFR part 1021) in regard to the review of applications under the 
Electric Drive Vehicle Battery and Component Manufacturing Initiative 
funded by the American Recovery and Reinvestment Act of 2009 (Recovery 
Act). The variance is limited to certain requirements identified in 10 
CFR 1021.216, Procurement, Financial Assistance, and Joint Ventures. 
The variance in no way affects the requirement to prepare an 
environmental assessment or environmental impact statement for any 
application selected for funding. The merit review of applications in 
response to this funding opportunity will include consideration of the 
potentially significant environmental impacts of the projects proposed 
for funding that are within the competitive range. By providing this 
variance, DOE can reduce the time needed to select applications for 
possible future funding consistent with the sense of urgency 
underpinning the Recovery Act.

DATES: Effective date: June 26, 2009.

FOR FURTHER INFORMATION CONTACT: Dr. R. Paul Detwiler, Director, Office 
of Project Facilitation and Compliance, National Energy Technology 
Laboratory, 626 Cochrans Mill Road, P.O. Box 10940, Pittsburgh, PA 
15236-0940 or [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The purposes of the Recovery Act are to: (1) Preserve and create 
jobs and promote economic recovery; (2) assist those most impacted by 
the recession; (3) provide investments needed to increase economic 
efficiency by spurring technological advances in science and health; 
(4) invest in transportation, environmental protection, and other 
infrastructure that will provide long-term economic benefits; and (5) 
stabilize State and local government budgets, in order to minimize and 
avoid reductions in essential services and counterproductive state and 
local tax increases. Federal departments must manage and expend funds 
made available through the Recovery Act to achieve these purposes, 
``including commencing expenditures and activities as quickly as 
possible consistent with prudent management.'' (Recovery Act, Section 
3)
    In the Recovery Act, the Congress appropriated $2 billion for DOE 
to provide grants to manufacturers of advanced battery systems and 
vehicle batteries to be produced in the United States, including 
advanced lithium ion batteries, hybrid electrical systems, component 
manufacturers, and software designers. (Recovery Act, Title IV) To 
implement this provision, DOE issued a financial assistance funding 
opportunity announcement on March 19, 2009, for the Electric Drive 
Vehicle Battery and Component Manufacturing Initiative. (DE-FOA-
0000026)
    This initiative is critical to the development and production of 
electric drive vehicle systems that will substantially reduce petroleum 
consumption. In addition, as stated in the funding opportunity 
announcement, the grants will meaningfully aid in the nation's economic 
recovery by creating U.S. based manufacturing jobs.
    The funding opportunity announcement is a competitive solicitation, 
and DOE has received more applications than it expects to be able to 
fund. DOE is now reviewing the merits of the applications in order to 
select those to which it may provide funding. Criterion 4 of the merit 
review criteria includes consideration of anticipated environmental 
impacts. As with environmental reviews under NEPA, the focus will be on 
potentially significant environmental impacts. As part of the 
application process, each applicant was required to complete an 
environmental questionnaire, which will be considered during the merit 
review. Consideration of potential environmental impacts will be 
facilitated by the participation of a DOE NEPA Compliance Officer as a 
resource to the merit review panel and the selection official.
    DOE's NEPA implementing procedures, at 10 CFR 1021.216, establish a 
process for the consideration of potential environmental impacts prior 
to selection. The central element of this process is preparation by DOE 
of an environmental critique containing, among other things, a ``brief 
comparative evaluation of the potential environmental impacts of the 
offers, which will address direct and indirect effects, short-term and 
long-term effects, proposed mitigation measures, adverse effects that 
cannot be avoided, areas where important environmental information is 
incomplete and unavailable, unresolved environmental issues and 
practicable mitigating measures not included in the offeror's 
proposal.'' (10 CFR 1021.216(g)(3)) This environmental critique forms 
the basis for an environmental synopsis, which is made available to the 
public and is incorporated into any environmental assessment or 
environmental impact statement prepared. (10 CFR 1021.216(h)) Another 
feature of the environmental critique is that, in addition to 
information provided by the applicant, ``it may also evaluate 
supplemental information developed by DOE as necessary for a reasoned 
decision.'' (10 CFR 1021.216(f)) This contrasts with the merit review 
process, which is limited to information provided in the application. 
Some other components of an environmental critique (e.g., brief 
discussion of the purpose of the funding opportunity and of the 
applicants' proposals) repeat information that is already part of the 
Merit Review Report that is prepared for the selection official. (The 
Merit Review Report is not publicly available.)

[[Page 30559]]

    DOE's existing NEPA regulations provide for certain variances 
``soundly based on the interests of national security or the public 
health, safety, or welfare.'' (10 CFR 1021.343(c)) Any such variance 
must have the advance written approval of the General Counsel,\1\ and 
DOE must publish a notice in the Federal Register specifying the 
variance granted and the reasons.
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    \1\ DOE's NEPA regulations state at 10 CFR 1021.343(c) that the 
Secretary of Energy must provide written approval of any variance 
under that section. However, this authority has been delegated to 
the General Counsel pursuant to Department of Energy Delegation 
Order No. 00-015.00A to the General Counsel.
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Variance

    Pursuant to 10 CFR 1021.343(c), I have determined that granting a 
variance from the requirements of 10 CFR 1021.216(c) through (h) with 
respect to the Department's funding opportunity for the Electric Drive 
Vehicle Battery and Component Manufacturing Initiative (DE-FOA-0000026) 
is soundly based on the interests of public welfare. Expediting the 
award of funding to promising proposals will accelerate development and 
production of electric drive vehicles. In addition, it will facilitate 
the nation's economic recovery by creating and retaining jobs and by 
transforming the nation's industrial infrastructure.
    I have concluded that the Department's process for making these 
funding awards will provide the selecting official with sufficient 
information regarding potential environmental impacts in the Merit 
Review Report, which will summarize the strengths and weaknesses of the 
proposals according to the merit review criteria, including but not 
limited to environmental impacts. This report also will provide certain 
other information called for in 10 CFR 1021.216(g).
    This variance does not affect the requirements imposed by 10 CFR 
1021.216(i). If projects selected for funding require preparation of an 
environmental assessment or environmental impact statement, these NEPA 
reviews will be completed before DOE takes any action that would have 
an adverse environmental impact or limit the choice of reasonable 
alternatives. In addition, consistent with the openness provisions of 
10 CFR 1021.216(h), any such environmental assessment or environmental 
impact statement will describe the environmental factors noted in the 
Merit Review Report that are relevant to the proposal being analyzed.

    Issued in Washington, DC, on June 22, 2009.
Scott Blake Harris,
General Counsel.
[FR Doc. E9-15126 Filed 6-25-09; 8:45 am]
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