Notice of Intent To Accept Proposals, Select Preliminary Lessee, and Contract for Hydroelectric Power Development on Lake Roosevelt Reservoir, Grand Coulee, Washington, 53846-53849 [2020-19155]
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53846
Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices
Park System, under the authority of the
Director of the NPS. A lease may not
authorize an activity that could be
authorized by a concessions contract or
commercial use authorization. All leases
must provide for the payment of fair
market value rent. The Director may
retain rental payments for park
infrastructure needs and, in some cases,
to provide administrative support of the
leasing program.
The authority to collect information
for the Leasing Program is derived from
54 U.S.C. 102101 et seq., 54 U.S.C.
306121, and 36 CFR part 18. For
competitive leasing opportunities, the
regulations require the submission of
proposals or bids by parties interested
in applying for a lease. The regulations
also require that the Director approve
lease amendments, construction or
demolition of structures, and
encumbrances on leasehold interests.
We collect information from anyone
who wishes to submit a bid or proposal
to lease a property. The Director may
issue a request for bids if the amount of
rent is the only criterion for award of a
lease. The Director issues a request for
proposals when the award of a lease is
based on selection criteria other than
the rental rate. A request for proposals
may be preceded by a request for
qualifications to select a ‘‘short list’’ of
potential offerors that meet minimum
management, financial, and other
qualifications necessary for submission
of a proposal.
We use the information collected to
evaluate offers, proposed subleases or
assignments, proposed construction or
demolition, the merits of proposed lease
amendments, and proposed
encumbrances. The completion times
for each information collection
requirement vary substantially
depending on the complexity of the
leasing opportunity.
The forms were revised from our
previous submission to allow for
simpler forms to be used for businesses
that are owned by an Individual or Sole
Proprietor and to accommodate bids for
smaller leases that require less financial
detail. The proposed revisions are
detailed below:
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Revision #1:
• Previous Form Name: 10–352
Identification and Credit Information
• Revised Form Name: 10–352 Business
History Information
• Revised Forms: 10–353 Business
Organization Information:
Corporation, Limited Liability
Company, Partnership, or Joint
Venture; and 10–354 Individual or
Sole Proprietorship
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Rationale for change: Based upon
comments received from previous users
of the forms, the program determined
that the level of detail required for the
offeror’s business history is not the same
for small business and large
corporations. Therefore, Form 10–352
was revised to provide a simplified
application process for small businesses
responding to requests for bids on
smaller leasing opportunities. Forms
10–353 and 10–354 were also revised
from our previous submission to allow
for simpler forms to be used for
businesses that are owned by an
Individual or Sole Proprietor and for
smaller leases that require less financial
detail.
Revision #2
• Previous Form: 10–355 Financial
Information for Revenue Producing
Uses
• Revised Forms: 10–355A Offeror
Financial Statements and
Projections—(Small Leases); and 10–
355B Offeror Financial Statements
and Projections—(Large Leases)
Rationale for change: The change in
the form is in response to comments
received from applicants not
understanding the financial information
required. The revised forms allow for a
more thorough description of larger
more complex leases that include
substantial investments in capital
improvements.
Title of Collection: National Park
Service Leasing Program, 36 CFR part
18.
OMB Control Number: 1024–0233.
Form Number: NPS Forms 10–352,
10–353, 10–354, 10–355A and 10–355B.
Type of Review: Revision of a
currently approved collection.
Respondents/Affected Public:
Individuals and businesses seeking to
submit a bid or proposal to lease NPS
property.
Total Estimated Number of Annual
Responses: 250.
Estimated Completion Time per
Response: Varies from 4 hours to 45
hours, depending on activity.
Total Estimated Number of Annual
Burden Hours: 1,649.
Respondent’s Obligation: Required to
obtain or retain a benefit.
Frequency of Collection: On occasion.
Total Estimated Annual Nonhour
Burden Cost: None.
An agency may not conduct or
sponsor and a person is not required to
respond to a collection of information
unless it displays a currently valid OMB
control number.
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The authority for this action is the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.).
Phadrea Ponds,
Information Collection Clearance Officer,
National Park Service.
[FR Doc. 2020–19143 Filed 8–28–20; 8:45 am]
BILLING CODE 4312–52–P
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
Bureau of Reclamation,
Interior.
ACTION: Notice of intent to accept
proposals, select lessee, and contract for
pumped-storage hydroelectric power on
Lake Roosevelt.
AGENCY:
Current Federal policy allows
non-Federal entities to develop
electrical power resources on Federal
water resource projects. This Notice
seeks proposals to develop pumpedstorage 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 preliminarylessee; 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
SUMMARY:
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Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices
sufficient time for delivery. Late
proposals will not be considered.
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.
ADDRESSES:
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 bjmiller@
usbr.gov. 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.
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 pumpedstorage 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).
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SUPPLEMENTARY INFORMATION:
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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
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53847
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 pumpedstorage 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 decisionmaking 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
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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
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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 voltampere 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
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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
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Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices
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
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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.
53849
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
Selection of Lessee
DEPARTMENT OF JUSTICE
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 nonpreference entity.
The Notice of Intent to accept
proposals does not obligate Reclamation
to ultimately select a lessee.
Notice of Lodging of Proposed First
Modification of The Consent Decree
Under The Clean Air Act
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On August 25, 2020, the Department
of Justice lodged a proposed First
Modification of the Consent Decree
(First Modification) with the United
States District Court of the Virgin
Islands Division of St. Croix in the
lawsuit entitled United States of
America and the United States Virgin
Islands v. HOVENSA L.L.C., Civil
Action Nos. 1:11-cv-00006. The
proposed First Modification modifies
the Consent Decree approved by the
Court on June 7, 2011 (June 2011
Consent Decree) resolving claims by the
United States and the United States
Virgin Islands against HOVENSA L.L.C.
for alleged violations of Section 113(b)
of the Clean Air Act, 42 U.S.C. 7413(b)
and territorial law. Under the original
Consent Decree, HOVENSA L.L.C.
agreed to substantially reduce emissions
of nitrogen oxides (NOX), sulfur dioxide
(SO2), volatile organic compounds, and
benzene from the refinery.
On September 15, 2015, HOVENSA
L.L.C. filed for bankruptcy under
Chapter 11 of the U.S. Bankruptcy Code
in District Court of the U.S. Virgin
Islands, Bankruptcy Division—St. Croix,
Virgin Islands. See, bankruptcy
proceeding entitled In re HOVENSA
L.L.C.., No. 1–15–10003–MFW. As part
of the bankruptcy proceeding, Limetree
Bay Terminals, LLC purchased certain
assets from HOVENSA L.L.C. that are
subject to the June 2011 Consent Decree.
As part of the bankruptcy, an
Environmental Response Trust was
established and assumed some of
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Agencies
[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]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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
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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
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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
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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