[Federal Register Volume 85, Number 169 (Monday, August 31, 2020)]
[Notices]
[Pages 53846-53849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19155]


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DEPARTMENT OF THE INTERIOR

Bureau of Reclamation

[18XR0680A1-RX312800080000002]


Notice of Intent To Accept Proposals, Select Preliminary Lessee, 
and Contract for Hydroelectric Power Development on Lake Roosevelt 
Reservoir, Grand Coulee, Washington

AGENCY: Bureau of Reclamation, Interior.

ACTION: Notice of intent to accept proposals, select lessee, and 
contract for pumped-storage hydroelectric power on Lake Roosevelt.

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SUMMARY: Current Federal policy allows non-Federal entities to develop 
electrical power resources on Federal water resource projects. This 
Notice seeks proposals to develop pumped-storage hydroelectric power 
utilizing Lake Roosevelt, located in Washington. This Notice provides 
background information, proposal content guidelines, and information 
concerning the selection of a non-Federal entity as a preliminary 
lessee. The Bureau of Reclamation (Reclamation) is considering such 
hydroelectric power development under its lease of power privilege 
(LOPP) process. Interested entities are invited to submit proposals on 
this project. This Notice of Intent to accept proposals does not 
obligate Reclamation to select a preliminary-lessee; the decision to 
select a preliminary-lessee will ultimately be made based on the 
qualifications of submitted proposals.

DATES: A written proposal with seven copies and an electronic version 
of the proposal must be submitted on or before 4 p.m. (Mountain 
Standard Time) on January 28, 2021. A proposal will be considered 
timely only if it is received in the office of the Regional Power 
Manager on or before 4 p.m. on the above-designated date. Interested 
entities are cautioned that delayed delivery to the Regional Power 
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

[[Page 53847]]

sufficient time for delivery. Late proposals will not be considered.

ADDRESSES: Send written proposal with seven copies and an electronic 
version of the proposal to Mr. Joseph Summers, Regional Power Manager, 
Bureau of Reclamation, 1150 North Curtis Road, Suite 100, Boise, ID 
83706; telephone (208) 378-5290.

FOR FURTHER INFORMATION CONTACT: Direct questions regarding proposal 
requirements or technical data available for reservoirs included in 
this project to Mr. Benjamin Miller, Bureau of Reclamation, 1150 North 
Curtis Road, Suite 100, Boise, ID 83706; telephone (208) 378-5196; 
email [email protected]. Upon receipt of written request, Mr. Miller 
will arrange an informational meeting and/or site visit with interested 
entities as needed. Reclamation reserves the right to schedule a single 
meeting and/or visit to address the questions of all entities that have 
submitted questions or requested site visits. Specific information 
related to operation and maintenance of Reclamation facilities 
utilizing Banks Lake and/or Lake Roosevelt may also be obtained from 
Mr. Miller at the above contact information.

SUPPLEMENTARY INFORMATION: Ensuring energy and economic security for 
America through hydropower is a top priority in the Department of the 
Interior's 2018 Strategic Plan. 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 Lake Roosevelt for a 
pumped-storage project.
    This project is subject to the dual jurisdiction of Reclamation and 
the Federal Energy Regulatory Commission (FERC). Reclamation has 
jurisdiction over the parts of the project within the boundaries of 
Lake Roosevelt and will consider these parts of the project under its 
LOPP process. FERC jurisdiction applies to all elements of a proposed 
pumped-storage hydroelectric power project at Lake Roosevelt that are 
outside of Reclamation authorizations. In this case, FERC jurisdiction 
will include Banks Lake (the upper reservoir), a large part of the 
penstock connecting the upper reservoir with the lower reservoir (Lake 
Roosevelt), underground tunnel(s) and powerhouse, and other facilities 
(such as power transmission lines and access roads that are outside of 
Reclamation jurisdiction).

General Overview

    Congress authorized the Columbia Basin Project, located in Central 
Washington, in 1943. The Columbia Basin Project includes Grand Coulee 
Dam and its three powerplants, John Keys Pump Generating Plant, North 
Dam, Dry Falls Dam, Lake Roosevelt and Banks Lake reservoirs. Grand 
Coulee Dam is a multiple purpose structure that supports irrigation, 
power, and flood control. Grand Coulee Dam has the ability to generate 
6,809 MW of electrical power. John Keys Pump Generating Plant has six 
pumps and six pump-generators that combined, are able to produce 314 
megawatts of electrical power. Lake Roosevelt Reservoir has a water 
storage capacity of 9.5 million acre-feet. Banks Lake Reservoir has a 
water storage capacity of 1.275 million acre-feet.
    Reclamation is considering allowing a non-Federal pumped-storage 
hydroelectric power development utilizing Lake Roosevelt under a LOPP. 
A congressionally authorized alternative to Federal hydroelectric power 
development, a LOPP is an authorization issued to a non-federal entity 
to utilize a Reclamation asset for electric power generation consistent 
with Reclamation project purposes. LOPPs 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), the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) 
(1939 Act), and the Bureau of Reclamation Small Conduit Hydropower 
Development and Rural Jobs Act of 2013 (Act of August 9, 2013, 127 
Stat. 498). For guidance regarding LOPP refer to Reclamation Manual 
Directive and Standard, Lease of Power Privilege (LOPP) Processes, 
Responsibilities, Timelines, and Charges (FAC 04-08) (https://www.usbr.gov/recman/DandS.html).
    Reclamation and FERC are responsible for ensuring any project 
selected for consideration pursuant to this Notice of Intent complies 
with the National Environmental Policy Act (NEPA), the National 
Historic Preservation Act (NHPA), Endangered Species Act (ESA), and 
other related environmental regulations for all elements of the 
proposed project. Reclamation and FERC will also lead necessary 
consultation with American Indian Tribal Governments. A LOPP may be 
denied, or withdrawn if already issued, due to inadequate compliance 
studies or unsatisfactory environmental impacts. All Reclamation costs 
associated with project planning and regulatory compliance requirements 
will be borne by the selected applicant.

Fundamental Considerations and Requirements

    As indicated above, Reclamation can only issue an LOPP for the 
lower reservoir (Lake Roosevelt) in a pumped-storage system and any 
other area where Reclamation has jurisdiction. Parallel approvals from 
FERC will be necessary for project elements where FERC has 
jurisdiction. 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 utilizing Lake Roosevelt must not interfere with existing 
contractual commitments related to operation and maintenance of 
facilities and systems supporting the Columbia Basin Project. The 
lessee (i.e., successful proposing entity) will be required to enter 
into a contract with Reclamation. This contract will (1) address 
requirements related to coordination of operation and maintenance with 
Columbia Basin Project stakeholders, and (2) stipulate that the LOPP 
lessee will be responsible for any increase in operation or maintenance 
costs that are attributable to the hydroelectric power development.
    No LOPP facilities will be permitted within the Reclamation zone 
surrounding Grand Coulee Dam and support structures, including inlet/
outlet works, hydropower facilities, access tunnels, and appurtenant 
facilities. The one exception to this constraint may be power 
transmission lines.
    The lessee would be responsible for securing transfer and marketing 
of the power generated by the proposed project. Bonneville Power 
Administration (BPA) will have the first opportunity to purchase and/or 
market the power that is generated by this project under a LOPP. In the 
event BPA 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 or assistance with

[[Page 53848]]

regulatory compliance (including NEPA), consultation during design 
development 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.
    Under the LOPP, the lessee will be required to make annual payments 
to the United States for the use of a government facility in the amount 
of at least 2-3 mills per kilowatt-hour of gross energy produced by the 
facility, measured at the generator(s). Provisions will be included for 
the mill rate to increase each year commensurate with inflation. Such 
annual payments shall be deposited in the Reclamation fund as a credit 
to the project and are applied against the total outstanding 
reimbursable repayment obligation for reimbursable project construction 
costs of the Federal project on which the LOPP is issued pursuant to 
the existing construction cost allocation.
    The proposed LOPP must not impair efficiency of Reclamation-
generated power or water deliveries, jeopardize public safety, nor 
negatively affect any other Reclamation project purpose.

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.
    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) Business history, including length of time in business, 
experience in funding, and design and construction of similar projects;
    (3) Industry rating(s) that indicate financial soundness and/or 
technical and managerial capability;
    (4) Experience of key management personnel;
    (5) History of any reorganizations or mergers with other companies 
(if applicable);
    (6) Information pertaining to qualification as a preference entity 
(as applied to a LOPP, the term ``preference entity'' means an entity 
qualifying for preference under Section 9(c) of the 1939 Reclamation 
Project 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). If proposing as a group of entities or as a subdivision of 
an entity, explain whether and why the group or subdivision qualifies 
as preference entities; and
    (7) 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 LOPP project. Include 
locations and descriptions of all structures, pumps/turbines, 
penstocks, upper and lower reservoirs, transmission lines, access 
roads, and other appurtenant facilities.
    Describe proposed capacities and general operation of the pumped-
storage hydroelectric project(s). Include generation capacity, power 
source, and power consumption; configuration, turbine generating 
capacity, distribution transmission line size, and route; and other 
relevant aspects of the project.
    Describe the ability of generation to provide ancillary services, 
such as regulation, spinning reserves, and volt-ampere reactive 
support; and information on the reliability of the generation, 
potential maintenance outage schedule, and duration.
    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 electrical distribution lines, access roads, and all aspects of 
project development and 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). 
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 Columbia Basin 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 Grand Coulee Dam, John Keys Pump Generating Plant, Lake 
Roosevelt Reservoir, Banks Lake Reservoir, and/or the Columbia Basin 
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 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 Lake Roosevelt and Banks Lake reservoirs, and the Columbia 
Basin Project as a whole, specifically related to existing contracts 
for operation and maintenance of Columbia Basin Project features.
    Contractual Arrangements: Describe any anticipated contractual 
arrangements with project stakeholders of the Columbia Basin Project, 
including contractual arrangements to utilize Lake Roosevelt and Banks 
Lake water rights. Define how the LOPP project would operate in harmony 
with the Reclamation project and existing applicable contracts.
    Management Plan: Provide a management plan to accomplish such 
activities as planning; NEPA, NHPA, ESA compliance, and other necessary 
studies; LOPP project development, design, construction, safety plan, 
facility testing, start-up of hydropower production; and preparation of 
an

[[Page 53849]]

Emergency Action Plan. 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.
    Environmental Impact: Discuss potentially significant adverse 
impacts from the proposed project on biophysical or sociocultural 
resource parameters on the Columbia Basin Project as a whole. Of 
concern are potential impacts on land use adjacent to proposed 
facilities, recreation at the surrounding areas, cultural resources, 
and Indian Trust assets, and impacts on any protected aquatic or 
terrestrial wildlife species or associated protected habitat.
    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 
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 NHPA, Clean 
Water Act, ESA, 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 
and maintenance, replacement expenses, annual payments to the United 
States, and those potentially associated with the Columbia Basin 
Project. Estimate costs associated with any anticipated additional 
transmission or wheeling services. Identify proposed methods of 
financing the project. The anticipated return on investment should be 
estimated and an economic analysis should be presented 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 structural integrity of North Dam 
or any other Reclamation asset physically altered as part of proposed 
project; (3) assuming liability for damage to the operational integrity 
of John Keys Pump Generating Plant, Grand Coulee Dam, Lake Roosevelt 
and Banks Lake reservoirs, or other aspects of the Columbia Basin 
Project caused by construction, operation and/or maintenance of the 
hydropower development; and (4) 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 Requirements and Considerations 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 hydropower 
development among parties to the LOPP. A proposal will be deemed 
unacceptable if it is inconsistent with Columbia Basin Project 
purposes, as determined by Reclamation.
    Reclamation will give preference to those entities that qualify as 
preference entities, as defined under Proposal Content Guidelines of 
this Notice, 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 30 days from 
notification 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.
    The Notice of Intent to accept proposals does not obligate 
Reclamation to ultimately select a lessee.

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. Time period requirements to sign the preliminary 
lease, sign the LOPP contract, design completion, and construction will 
be administered in accordance with Reclamation Manual Directive and 
Standard, Lease of Power Privilege (LOPP) Processes, Responsibilities, 
Timelines, and Charges (FAC 04-08).

Lorri J. Gray,
Regional Director, Interior Region 9: Columbia-Pacific-Northwest, 
Bureau of Reclamation.
[FR Doc. 2020-19155 Filed 8-28-20; 8:45 am]
BILLING CODE 4332-90-P