[Federal Register Volume 85, Number 81 (Monday, April 27, 2020)]
[Notices]
[Pages 23373-23376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08832]
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DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
[RX.01444999.0020100 20XR0680A4]
Pumped-Storage Hydroelectric Power Development on Seminoe
Reservoir, Kendrick Project, Wyoming
AGENCY: Bureau of Reclamation, Interior.
ACTION: Notice of intent to accept proposals, select lessee, and
contract for pumped-storage hydroelectric power on Seminoe Reservoir.
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SUMMARY: Current Federal policy allows non-Federal development of a
potential electrical power resource on Federal water resource projects.
This Notice provides background information, proposal content
guidelines, and information concerning the selection of a non-Federal
entity to develop pumped-storage hydroelectric power utilizing Seminoe
Reservoir, a feature of the Kendrick Project, located in Wyoming.
Interested entities are invited to submit proposals on this project.
This Notice of Intent to accept proposals does not obligate Reclamation
to select a lessee; the decision to select a lessee will ultimately be
made based on the qualifications of submitted proposals.
DATES: A written proposal and seven copies must be submitted on or
before 4 p.m. (Mountain Standard Time) on September 24, 2020. A
proposal will be considered timely only if it is received in the office
of the Area Manager on or before 4 p.m. on the above-designated date.
Interested entities are cautioned that delayed delivery to the Area
Manager's 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 Ms.
Carlie Ronca, Area Manager, Bureau of Reclamation, Wyoming Area Office,
P.O. Box 1630; Mills, Wyoming 82644; telephone (307) 261-5671.
Information related to the Western Area Power Administration'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.
FOR FURTHER INFORMATION CONTACT: Questions regarding proposal
requirements or technical data available for Seminoe Reservoir may be
directed to Mr. Brad Cannon, Bureau of Reclamation, Wyoming Area
Office, P.O. Box 1630, Mills, Wyoming 82644; telephone (307) 261-5635.
Upon receipt of your questions, Mr. Cannon will arrange an
informational meeting and/or site visit with interested entities.
Reclamation reserves the right to schedule a single meeting and/or
visit to address the questions or requested site visits submitted by
all entities. Specific information related to operation and maintenance
of the Seminoe Dam, Powerplant, and Reservoir may also be obtained from
Mr. Brad Cannon at the above contact information.
SUPPLEMENTARY INFORMATION: Ensuring energy and economic security for
America is a top priority of the Department of the Interior. This
priority is achieved in part via new energy generation from hydropower.
The Department, acting through Reclamation will consider proposals for
non-Federal development of pumped-storage hydroelectric power utilizing
Seminoe Reservoir as the lower impoundment for a pumped-storage
project. The Department will prioritize projects that appropriately
balance increased energy
[[Page 23374]]
generation with consideration of natural resource impacts, and which
will not impact any of Reclamation's existing projects' specific
purposes. 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 (LOPP)
contract. Reclamation is considering such hydroelectric power
development under its LOPP process and regulations.
The Federal Energy Regulatory Commission (FERC) also has
jurisdiction in this case. FERC jurisdiction applies to all elements of
a proposed pumped-storage hydroelectric power project at Seminoe
Reservoir that are outside of Reclamation facilities and lands. In this
case, FERC jurisdiction will include the upper reservoir, a large part
of the penstock connecting the upper reservoir with Seminoe Reservoir,
and other facilities (such as power transmission lines and access roads
that are outside of Reclamation jurisdiction). The Kendrick Project
(formerly known as the Casper-Alcova Project), located in south-central
Wyoming, was found feasible by the Secretary of the Interior on August
27, 1935, and approved by the President on August 30, 1935. The
Kendrick Project, including Seminoe Dam and Powerplant and Alcova Dam,
were authorized pursuant to Section 4 of the Act of June 25, 1910 (36
Stat. 836), and Subsection B of the Act of December 5, 1924 (43 Stat.
702). Seminoe Dam, which is the primary storage feature of the Kendrick
Project, was constructed from 1936 to 1939, while Alcova Dam, which
diverts water from the North Platte River into the Casper Canal, was
constructed from 1935 to 1938.
Seminoe Dam and Powerplant is a multiple purpose structure that
provides benefits of irrigation, power, and flood control. Seminoe Dam
is 295 feet high and is on the North Platte River, approximately 72
miles southwest of Casper, Wyoming. It has a total storage capacity of
1,017,280 acre-feet and construction was completed in 1939. Seminoe
Powerplant contains three units, each composed of a 13,500-kilowatt
generator driven by a 20,800-horsepower turbine.
Reclamation is considering a non-Federal pumped-storage
hydroelectric power development on Seminoe Reservoir through a LOPP. A
LOPP is a congressionally authorized alternative to Federal
hydroelectric power development. It is an authorization issued to a
non-Federal entity to utilize a Reclamation facility for non-Federal
electric power generation, consistent with Reclamation project
purposes.
LOPP contracts have terms not to exceed 40 years. The general
authority for LOPP 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).
Reclamation and FERC will be responsible for compliance with
National Environmental Policy Act (NEPA) requirements related to any
project selected for consideration pursuant to this notice. Reclamation
and FERC will also lead necessary consultation with involved American
Indian tribal governments and compliance with the National Historic
Preservation Act, Endangered Species Act, and other related
environmental regulations for all elements of a proposed project. LOPP
contracts will be issued only when Reclamation has determined that NEPA
and any other regulatory compliance requirements are completed. All
Reclamation costs associated with project planning and regulatory
compliance requirements will be borne by the selected lessee.
No Federal funds will be available for non-Federal hydroelectric
power development. Reclamation's Kendrick Project is a Federal
Reclamation project. In addition to submitting proposals to Reclamation
as stated above, interested parties will also need to file an
appropriate application with FERC in order to develop all elements of a
non-Federal pumped-storage hydroelectric power development at this
reservoir not encompassed by Reclamation's authority.
Fundamental Considerations and Requirements
As indicated above, Reclamation can only issue a LOPP for Seminoe
Reservoir on the lower reservoir in a pumped-storage system that
encroaches or encompasses Reclamation lands. Parallel approvals from
FERC will be necessary for project elements above the Reclamation-
controlled lands and waters of the Seminoe facilities. These elements
will include part of the penstock, the upper reservoir, and potential
appurtenant facilities such as transmission lines, access roads, etc.
Reclamation and FERC will determine the appropriate relationship
between the two agencies in coordinating the study and decision-making
process.
Any LOPP on Seminoe Reservoir must not interfere with existing
contractual commitments related to operation and maintenance of Seminoe
Dam and other Kendrick Project facilities. The lessee (i.e., successful
proposing entity) will be required to enter into a contract with the
Bureau of Reclamation. This contract will (1) address requirements
related to coordination of operation and maintenance with Kendrick
Project stakeholders, and (2) stipulate that the LOPP lessee will be
responsible for any increase in operation or maintenance costs or lost
revenues (e.g., Federal power interference) that are attributable to
the non-Federal pumped-storage hydroelectric power project.
No LOPP project facilities or features will be permitted within the
Reclamation zone surrounding Seminoe Dam, including inlet/outlet works,
hydropower facilities, and appurtenant facilities. The one exception to
this constraint may be power transmission lines.
The lessee would be responsible for securing transmission and
marketing of the power generated by the proposed project.
Western will have the first opportunity to purchase and/or market
the power that is generated by the project under a LOPP. 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 LOPP, the lessee will
have the right to market the power generated by the project to others.
All costs incurred by the United States related to a proposed LOPP
project will be at the expense of the lessee. Such costs include
management and coordination of necessary Reclamation activities,
provision of information, conduct of or assistance with regulatory
compliance (including NEPA), consultation during design development and
related to operation and maintenance under a LOPP, development of the
LOPP, necessary contracts with outside consultants, or any other cost
for which the government would be reimbursed by an applicant or the
general public. In addition, the lessee will be required to make annual
payments to the United States for the use of a Government facility in
the amount of 2-3 mills per kilowatt-hour of gross generation. Under
the LOPP, provisions will be included for inflation of the annual
payment with time. Such annual payments to the United States would be
deposited as a credit to the Reclamation Fund.
[[Page 23375]]
Proposal Content Guidelines
Interested parties should submit proposals specifically addressing
the following qualifications, capabilities, and approach factors.
Proposals submitted will be evaluated and ranked directly based on
these factors.
Additional information may be provided at the discretion of those
submitting proposals. This additional/supplemental information will be
reviewed and considered as appropriate in evaluating the overall
content and quality of proposals.
Qualifications of Proposing Entity
Provide relevant information describing/documenting the
qualifications of the proposing entity to plan, design, and implement
such a project, including, but not limited to:
(1) Type of organization;
(2) Length of time in business;
(3) Experience in funding, design and construction of similar
projects;
(4) Industry rating(s) that indicate financial soundness and/or
technical and managerial capability;
(5) Experience of key management personnel;
(6) History of any reorganizations or mergers with other companies;
(7) Preference status (as applied to a LOPP, the term ''preference
entity'' means an entity qualifying for preference under Section 9(c)
of the Reclamation Project Act of 1939 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); and,
(8) Any other information not already requested above or in the
following evaluation categories that demonstrates the interested
entity's organizational, technical, and financial ability to perform
all aspects of the work.
Proposed Project Plan
Describe and provide mapping and drawings of proposed facilities
and equipment comprising the project. Include geographical locations
and descriptions of all structures, pump/turbines, penstocks, upper
reservoir, transmission lines, access roads, and other appurtenant
facilities. Describe proposed capacities and general operation of the
pumped-storage hydroelectric power project. Include: Proposed pump/
turbine capacity in pump and generate modes, power source and power
consumption; upper reservoir site requirements, configuration, and
water storage capacity; turbine generating capacity, transmission line
size and route; and other relevant aspects of the project.
Also describe diurnal, seasonal and/or annual patterns (as
relevant) of energy generation and consumption. Include descriptions
and estimates of any influence on power generation capacity and/or
consumption attributable to type of water year (i.e., each month of
average, dry, or wet water years, as relevant). 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,
as relevant.
Proposed Approach to Acquisition of Necessary Property Rights
Specify plans for acquiring title to or the right to occupy and use
all lands necessary for the proposed development, including such
additional lands as may be required during construction.
Address lands necessary for transmission lines, access roads and
all aspects of project development, operation, and maintenance.
Proposed Plan for Acquisition/Perfection of Water Rights
Necessary water rights or purchases must be arranged by the project
proponent(s). Quantify water necessary for operation of the proposed
development(s), including initial fill of the upper reservoir and
replacement of water lost to evaporation or other aspects of annual
system operation. Identify the source of water rights acquired or to be
acquired to meet these water needs, including the current holder of
such rights, and how these rights would be used, acquired, or
perfected.
Impact on Kendrick Project Water Rights and Operations
Describe any potential changes in seasonal or annual fulfillment of
existing water rights or storage contracts that may occur as a result
of the proposed pumped-storage hydroelectric power project. Also
provide full hydrologic analysis and related studies exploring
potential impact of the project on current operations and projected
operations of Seminoe Dam, Powerplant, Reservoir, and/or the Kendrick
Project as a whole.
This analysis should include estimates of daily fluctuations in
reservoir elevation attributable to proposed project operations,
including schedule (nighttime filling, daytime generation) and other
details pertinent to reservoir fluctuations.
Long-Term Operation and Maintenance
Provide a description (with relevant references) of the project
proponent's experience in operation and maintenance of pumped-storage
hydroelectric or similar facilities once they are operational and over
the long-term (i.e., the 40-year lease contemplated for the proposed
project). Identify the organizational structure and plan for the long-
term operation and maintenance of the proposed project. Define how the
proposed project would operate in harmony with Seminoe Reservoir and
the Kendrick Project as a whole, specifically related to existing
contracts for operation and maintenance of Kendrick Project features.
Proposed Contractual Arrangements
Describe anticipated contractual arrangements with project
stakeholders at Seminoe Reservoir or the broader Kendrick Project. If
desired, contact information for Kendrick Project stakeholders can be
obtained from Mr. Brad Cannon at the mailing address and telephone
number provided earlier in this notice.
Management Plan
Provide a management plan to accomplish such activities as
planning, NEPA compliance, LOPP development, design, construction,
facility testing, project commissioning, and preparation of an
Emergency Action Plan. Provide schedules of these activities as
applicable. Describe what studies are necessary to accomplish the
pumped-storage hydroelectric power development and how the studies
would be implemented.
Environmental Impact
Discuss potentially significant adverse impacts from the proposed
project on biophysical or sociocultural resource parameters at Seminoe
Reservoir and/or the Kendrick Project as a whole.
Other concerns may include, but not be limited to, impact on land
use adjacent to proposed facilities, recreation at Seminoe Reservoir or
in surrounding upland areas, cultural resources, and Indian Trust
assets.
Discuss potential adverse impacts based on available information.
Provide information on the types and severity of expected impacts and
proposed methods of resolving or mitigating these impacts. Describe
also any potentially beneficial environmental effects that may be
expected from the proposed project, including such perspectives as
[[Page 23376]]
energy conservation or using available water resources in the public
interest.
As necessary, describe studies required to adequately define the
extent, potential severity, and potential approaches to mitigation of
impacts that may be associated with the proposed development.
Other Study and/or Permit Requirements
Describe planned response to other applicable regulatory
requirements, including the National Historic Preservation Act, Clean
Water Act, Endangered Species Act, and state and local laws and
licensing requirements. Also describe any known potential for impact on
lands or resources of American Indian tribes, including trust
resources.
Project Development Costs and Economic Analysis
Estimate the costs of development, including the cost of studies to
determine feasibility, environmental compliance, project design,
construction, financing, and the amortized annual cost of the
investment. Estimate annual operation, maintenance, and replacement
expenses, annual payments to the United States that are potentially
associated with the Kendrick Project. Estimate costs associated with
any anticipated additional transmission or wheeling services. Identify
proposed methods of financing the project. Estimate the anticipated
return on investment and present an economic analysis that compares the
present worth of all benefits and the costs of the project.
Performance Guarantee and Assumption of Liability
Describe plans for (1) providing the Government with performance
bonds or irrevocable letter of credit covering completion of the
proposed project; (2) assuming liability for damage to the operational
and structural integrity of Seminoe Dam and Reservoir facilities or
other aspects of the Kendrick Project caused by construction,
commissioning, operation, and/or maintenance of the pumped- storage
hydroelectric power development; and (3) obtaining general liability
insurance.
Other Information
This final paragraph is provided for the applicant to include
additional information considered relevant to Reclamation's selection
process in this matter.
Selection of Lessee
Reclamation will evaluate proposals received in response to this
published notice. Proposals will be ranked according to response to the
factors described in Fundamental Considerations and Requirements and
Proposal Content Guidelines sections provided in this notice. In
general, Reclamation will give more favorable consideration to
proposals that (1) are well adapted to developing, conserving, and
utilizing the water resource and protecting 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) best share the economic benefits of the pumped-
storage hydroelectric power development among parties to the LOPP. A
proposal will be deemed unacceptable if it is inconsistent with
Kendrick Project purposes, as determined by Reclamation.
Reclamation will give preference to those entities that qualify as
preference entities (as defined under Proposal Content Guidelines)
provided that the preference entity is well qualified and their
proposal is at least as well adapted to developing, conserving, and
utilizing the water and natural resources as other submitted proposals.
Preference entities will be allowed 90 days to improve their proposals,
if necessary, to be made at least equal to a proposal(s) that may have
been submitted by a non- preference entity.
As noted, this Notice of Intent to accept proposals does not
obligate Reclamation to ultimately select a lessee for pumped-storage
hydroelectric power development on Seminoe Reservoir.
Notice and Time Period To Enter Into LOPP
Reclamation will notify, in writing, all entities submitting
proposals of Reclamation's decision regarding selection of the
potential lessee. The selected lessee will have 3 years from the date
of such notification to accomplish NEPA compliance and enter into a
LOPP for the proposed development of pumped-storage hydroelectric power
at Seminoe Reservoir. The lessee will then have up to 3 years from the
date of execution of the lease to complete the designs and
specifications and an additional 2 years to secure financing and to
begin construction. Such timeframes may be adjusted by Reclamation for
just cause resulting from actions and/or circumstances that are beyond
the control of the lessee.
Michael S. Black,
Regional Director, Missouri Basin--Interior Region 5, Bureau of
Reclamation.
[FR Doc. 2020-08832 Filed 4-24-20; 8:45 am]
BILLING CODE 4332-90-P