Notice of Intent to Accept Proposals, Select Lessee(s), and Contract for Pumped-Storage Hydroelectric Power Development on Anderson Ranch Reservoir, Boise Project, Idaho, 21380-21383 [2016-08237]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Reclamation

[Federal Register Volume 81, Number 69 (Monday, April 11, 2016)]
[Notices]
[Pages 21380-21383]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08237]


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DEPARTMENT OF THE INTERIOR

Bureau of Reclamation


Notice of Intent to Accept Proposals, Select Lessee(s), and 
Contract for Pumped-Storage Hydroelectric Power Development on Anderson 
Ranch Reservoir, Boise Project, Idaho

AGENCY: Bureau of Reclamation, Interior.

ACTION: Notice.

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SUMMARY: Current Federal policy allows non-Federal development of 
electrical power resource potential on Federal water resource projects. 
The Bureau of Reclamation (Reclamation) will consider proposals for 
non-Federal development of a pumped-storage hydroelectric power 
utilizing Anderson Ranch Reservoir as the lower impoundment for a 
pumped-storage project. Reclamation is considering such hydroelectric 
power development under its lease of power privilege (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 Anderson Ranch 
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 Anderson Ranch 
Reservoir, and other facilities (such as power transmission lines and 
access roads that are outside of Reclamation jurisdiction).

DATES: A written proposal and seven copies must be submitted on or 
before 4 p.m. (Mountain Standard Time) on September 8, 2016. 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: Send written proposal and seven copies to Mr. Roland 
Springer, Area Manager, Bureau of Reclamation, Snake River Area Office, 
230 Collins Road, Boise, ID 83702-4520; telephone (208) 383-2248.

FOR FURTHER INFORMATION CONTACT: Questions regarding proposal 
requirements or technical data available for Anderson Ranch Reservoir 
may be

[[Page 21381]]

directed to Mr. Robert Ross, Bureau of Reclamation, Pacific Northwest 
Regional Office, 1150 North Curtis Road, Suite 100, Boise, ID 83706-
1234; telephone (208) 378-5332. Upon receipt of your questions, Mr. 
Ross 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 
Anderson Ranch Dam and Reservoir may be obtained from Ms. Victoria 
Hoffman, Supervisory General Engineer, Bureau of Reclamation, Snake 
River Area Office, 230 Collins Rd., Boise, ID 83702-4520; telephone 
(208) 382-2266.

SUPPLEMENTARY INFORMATION:
    General Overview: Anderson Ranch Dam and Powerplant is a multiple 
purpose structure that provides benefits of irrigation, power, and 
flood and silt control. The dam is 456 feet high and is on the South 
Fork of the Boise River, 28 miles northeast of Mountain Home. It has a 
total storage capacity of 474,900 acre-feet (active capacity 413,100 
acre-feet) and was the world's highest earth and rock fill dam at the 
time of its completion in 1950. The powerplant had a rated capacity of 
27,000 kilowatts with two units installed. These units were up-rated in 
1986, increasing the capacity to 20,000 kilowatts each for a total of 
40,000 kilowatts.
    Reclamation is considering pumped-storage hydroelectric power 
development on the Anderson Ranch Reservoir under a LOPP. A LOPP is an 
alternative to Federal hydroelectric power development. It is an 
authorization issued to a non-Federal entity to use a Reclamation 
facility for electric power generation consistent with Reclamation 
project purposes. Leases of power privilege 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 the 
National Environmental Policy Act (NEPA) 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. LOPPs 
may 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 applicant(s).
    No Federal funds will be available for non-Federal hydroelectric 
power development. Reclamation's Boise Project is a Federal Reclamation 
project. This notice presents background information, Reclamation's 
LOPP proposal content guidelines, and information concerning selection 
of a non-Federal entity to develop hydroelectric power using Anderson 
Ranch Reservoir. Interested parties will also need to file an 
appropriate application with FERC in order to encompass all elements of 
a pumped-storage hydroelectric power development at this reservoir.
Fundamental Considerations and Requirements:
    1. As indicated above, Reclamation can only issue a LOPP for 
Anderson Ranch Reservoir as the lower reservoir in a pumped-storage 
system. Parallel approvals from FERC will be necessary for project 
elements above the Reclamation-controlled lands and waters of the 
Anderson Ranch 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.
    2. Any LOPP on Anderson Ranch Reservoir must not interfere with 
existing contractual commitments related to operation and maintenance 
of the Anderson Ranch Dam and other Boise 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 Boise Project stakeholders (such as the Boise Project 
Board of Control and others), and (2) stipulate that the LOPP lessee 
will be responsible for any increase in operation or maintenance costs 
that are attributable to the pumped-storage hydroelectric power 
project.
    3. No LOPP project facilities or features will be permitted within 
the Reclamation zone surrounding Anderson Ranch Dam, including inlet/
outlet works, hydropower facilities, and appurtenant facilities. The 
one exception to this constraint may be power transmission lines.
    4. The lessee would be responsible for securing transmission and 
marketing of the power generated by the proposed project.
    5. Bonneville Power Administration (BPA) will have the first 
opportunity to purchase and/or market the power that is generated by 
the project under a LOPP. BPA will consult with Reclamation on such 
power purchasing and/or marketing considerations. 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.
    6. Potential LOPP lessees should be aware that Reclamation plans to 
carry out a parallel feasibility study focused on raising Anderson 
Ranch Dam by 6 feet as a means to increase storage capacity. If this 
project is found feasible and proceeds to implementation, the LOPP 
lessee would need to adapt the pumped-storage project as necessary to 
accommodate this change.
    7. 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 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.
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

[[Page 21382]]

in evaluating the overall content and quality of proposals.
    1. 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:
     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;
     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
     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.
    2. Proposed Project Plan: Describe and provide mapping and drawings 
of proposed facilities and equipment comprising the project. Include 
descriptions and locations of 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.
    3. 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.
    4. 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.
    5. Impact on Boise 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 Anderson 
Ranch Dam and Reservoir and/or the Boise 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.
    6. 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 Anderson Ranch Reservoir and the Boise 
Project as a whole, specifically related to existing contracts for 
operation and maintenance of Boise Project features.
    7. Proposed Contractual Arrangements: Describe anticipated 
contractual arrangements with project stakeholders at Anderson Ranch 
Reservoir or the broader Boise Project. These stakeholders are 
comprised primarily of water rights and/or storage rights holders, 
including, but not limited to, the Boise Project Board of Control which 
has operation and maintenance responsibility for portions of the Boise 
Project.
    8. 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.
    9. Environmental Impact: Discuss potentially significant adverse 
impacts from the proposed project on biophysical or sociocultural 
resource parameters at Anderson Ranch Reservoir and/or the Boise 
Project as a whole. Of particular concern are potential impacts on 
protected aquatic or terrestrial wildlife species or associated 
protected habitat. Examples at Anderson Ranch Reservoir include bull 
trout and yellow billed cuckoo. Other concerns may include, but not be 
limited to, impact on: Land use adjacent to proposed facilities, 
recreation at Anderson Ranch 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 
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.
    10. 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.

[[Page 21383]]

    11. 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 
Boise 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.
    12. Performance Guarantee and Assumption of Liability: Describe 
plans for (1) providing the government with performance bonds or other 
guarantee covering completion of the proposed project; (2) assuming 
liability for damage to the operational and structural integrity of the 
Anderson Ranch Dam and Reservoir facilities or other aspects of the 
Boise Project caused by construction, commissioning, operation, and/or 
maintenance of the pumped-storage hydropower power development; and (3) 
obtaining general liability insurance.
    13. 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 Boise 
Project purposes, as determined by Reclamation.
    Reclamation will give preference to those entities that qualify as 
preference entities (as defined under Proposal Content Guidelines, item 
(1.), 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 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.
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 potential lessee will have three 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 Anderson Ranch Reservoir. The lessee will then 
have up to three years from the date of execution of the lease to 
complete the designs and specifications and an additional two years to 
secure financing and to begin construction. Such timeframes may be 
adjusted for just cause resulting from actions and/or circumstances 
that are beyond the control of the lessee.

    Dated: January 25, 2016.
Lorri J. Lee,
Regional Director, Pacific Northwest Region.
[FR Doc. 2016-08237 Filed 4-8-16; 8:45 am]
BILLING CODE 4332-90-P