Pumped-Storage Hydroelectric Power Development on Seminoe Reservoir, Kendrick Project, Wyoming, 23373-23376 [2020-08832]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Reclamation

[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