Notice of Final 2025 Olmsted Power Marketing Plan, 16970-16976 [2023-05736]

Agencies

• DEPARTMENT OF ENERGY
• Western Area Power Administration

[Federal Register Volume 88, Number 54 (Tuesday, March 21, 2023)]
[Notices]
[Pages 16970-16976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05736]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Notice of Final 2025 Olmsted Power Marketing Plan

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of final 2025 Olmsted Power Marketing Plan.

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SUMMARY: Western Area Power Administration (WAPA), a Federal Power 
Marketing Administration of the Department of Energy (DOE), announces 
its Final 2025 Olmsted Power Marketing Plan (Marketing Plan) for the 
Colorado River Storage Project (CRSP) Management Center (MC). On 
September 30, 2024, all of Olmsted Power Plant Replacement Project 
(Olmsted Project) energy sales contracts (Contracts) will expire. This 
notice responds to comments received on the Proposed 2025 Olmsted Power 
Marketing Plan (Proposed Plan) published in the Federal Register June 
1, 2022, and sets forth the Marketing Plan. The Marketing Plan 
specifies the terms and conditions under which WAPA will market energy 
from the Olmsted Project beginning October 1, 2024, through September 
30, 2054. This Marketing Plan supersedes the previous Olmsted Project 
marketing plan. WAPA will offer new Contracts for the sale of energy to 
existing customers (Customers) as more fully described in the Marketing 
Plan. The Marketing Plan also establishes one resource pool (2034 
Resource Pool) of up to 3 percent of the marketable resource under 
contract at the time of reallocation to be available for eligible new 
preference entities or Customers. The 2034 Resource Pool will be under 
Contract by October 1, 2034. WAPA will publish the application 
procedures for the 2034 Resource Pool in a separate Federal Register 
notice.

DATES: The Marketing Plan will become applicable April 20, 2023 in 
order to make power allocations and complete the other processes 
necessary to begin providing services on October 1, 2024.

FOR FURTHER INFORMATION CONTACT: Mr. Rodney G. Bailey, CRSP Manager, 
CRSP MC, Western Area Power Administration, 1800 South Rio Grande 
Avenue, Montrose, CO 81401, by email at [email protected], by 
telephone at 970-252-3000, or by fax at 970-240-6282. Information on 
development of the Marketing Plan can be found at https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/power-marketing.aspx.

SUPPLEMENTARY INFORMATION:

Background

    The Olmsted Project is located at the mouth of Provo Canyon in 
northern Utah and is part of the Central Utah Project, a participating 
project of CRSP. In 1987, the United States Department of the Interior, 
Bureau of Reclamation (Reclamation) secured ownership of the Olmsted 
Flowline, located in northern Utah, from PacifiCorp (formerly known as 
Utah Power and Light), and the associated water rights as an essential 
part of the Central Utah Project. In a related 1990 Settlement 
Agreement, the Olmsted generation facilities were acquired in 
condemnation proceedings by the United States to better secure and 
develop water rights for the Central Utah Project. As part of the 
condemnation proceedings, PacifiCorp continued generating power at 
Olmsted until September 22, 2015. Power generation at the site ceased 
on that date, and Reclamation assumed responsibility for operating the 
Olmsted Project.
    A comprehensive evaluation of the existing 100-year-old Olmsted 
facilities determined it had greatly exceeded its operational life, and 
a replacement hydroelectric facility was necessary. On February 4, 
2015, an Implementation Agreement (Agreement) for the Olmsted Project 
was signed by the Central Utah Water Conservancy District (District), 
Reclamation, DOE, and WAPA (Participants) to set forth the 
responsibilities of the participants and how the Olmsted Project would 
be funded. During the second quarter of calendar year 2016, pursuant to 
the Agreement, the District began constructing the 12-megawatt, $42 
million replacement hydroelectric facility and new power transmission 
line to the nearby Provo Power system. Olmsted Powerplant construction 
was completed in July 2018 and started commercial power production in 
October 2018. The Olmsted Project is a Federal facility operated and 
maintained by the District in connection with its Central Utah Project 
operations. The Olmsted Project is a ``run-of-the-river'' plant 
producing power only when water demands from downstream users 
necessitate water deliveries.
    The Marketing Plan, herein, describes how CRSP Management Center 
will market Federal energy from the Olmsted Project beginning October 
1, 2024, through September 30, 2054. As part of the Marketing Plan, 
WAPA will establish one 2034 Resource Pool of 3 percent of the net 
marketable resource (minus the District's allocation) under contract at 
the time of each reallocation to be available for eligible new

[[Page 16971]]

preference entities and Customers. The 2034 Resource Pool will be 
allocated and under contract by October 1, 2034. WAPA will publish the 
application procedures for the 2034 Resource Pool in a separate Federal 
Register notice sometime in the 2030 calendar year timeframe. WAPA, at 
its discretion, will allocate a percentage of the 2034 Resource Pool to 
selected new applicant(s) that meet the Eligibility Criteria defined in 
the Marketing Plan, herein. This allocation percentage will be 
multiplied by the 2034 Resource Pool percentage to determine an 
applicant's percentage of the resource pool. WAPA will publish a notice 
in the Federal Register once those proposed allocations have been 
determined (Proposed Allocations). The public will have an opportunity 
to comment on the Proposed Allocations. After reviewing the comments, 
WAPA will publish a notice of Proposed Allocations in the Federal 
Register. Once the final 2034 Resource Pool allocations have been 
published, WAPA will work with Customers to amend the existing 
Contracts and execute Contracts with any new allottees pursuant to the 
General Contract Principles as described in this notice.

Response to Comments on the Proposed 2025 Olmsted Power Marketing Plan

    During the public consultation and comment period, WAPA received 
four letters commenting on the Proposed Plan. In addition, WAPA 
received two comments during the June 28, 2022, Public Comment Forum. 
In preparing the Marketing Plan, WAPA reviewed and considered all 
comments received during the public consultation and comment period. 
The following is a summary of the comments received during the 
consultation and comment period, and WAPA's responses to those 
comments. Comments are grouped by subject and paraphrased for brevity 
when it was possible to do so without affecting the meaning of the 
statements.

A. Marketing Area Responses

    Comment: One commenter stated the District will likely operate 
features within both the Provo River Delta Restoration Project (PRDRP) 
and the June Sucker Recovery Implementation Program (JSRIP). The 
features will make up part of the growing new loads in operations for 
which the District is responsible (see agreement dated November 24, 
2020 between the District and the Utah Reclamation Mitigation and 
Conservation Commission (URMCC) showing current scope of work related 
to some of these efforts).
    Response: WAPA appreciates this comment and acknowledges the broad 
authorities the District has under Central Utah Project Completion Act 
(CUPCA). Therefore, if the District is required to serve electrical 
loads resulting from implementation of CUPCA that are beyond the 
marketing area boundaries defined in this notice, those loads may be 
service with Olmsted Project energy as long as the electrical loads are 
100 percent CUPCA related.
    Comment: One commenter stated that WAPA did include Juab County in 
the Proposed 2025 Marketing Plan. But the Proposed 2025 Marketing Plan 
continues to exclude Duchesne and Uintah counties that are also within 
similar proximity to the Olmsted Project. Furthermore, several counties 
in the current marketing plan did not and do not contribute significant 
funding for the Olmsted Project.
    Response: During the previous marketing plan public process in 
2016, WAPA unintentionally excluded Juab County in the proposed 
marketing plan Federal Register notice (81 FR 87035) published on 
December 02, 2016, and the final Olmsted Marketing Plan published in 
the Federal Register notice (82 FR 47201) on October 11, 2017. WAPA is 
correcting that error by including Juab County in the final 2025 
Olmsted Power Marketing Plan. However, because of the small amount of 
energy available from the Olmsted Project, the marketing area will 
continue to be limited to the Utah counties in the vicinity of the 
powerplant to ensure that entities receiving an allocation would 
benefit from the energy while at the same time creating a marketing 
area sufficiently large enough to ensure wide-spread use of the Federal 
resource.
    Comment: One commenter emphasized the importance of the District in 
supporting the Olmsted Project by highlighting that the District used 
property taxes from residents of the 8-county area that contributed 
almost 50 percent of the funding for construction of the Olmsted 
Project. The commenter further emphasized that the District is 
responsible for the long-term operation, maintenance and replacement of 
the project.
    Response: Thank you for this comment. WAPA recognizes the 
significant contributions of the District and the tax payers in the 
surrounding 8-county area, and as such the District will continue to 
receive ``priority'' status for an allocation of power under the 
Marketing Plan.
    Comment: Two commenters stated that WAPA needs to adhere to the 
basic definition and logic of describing the marketing area as ``close 
proximity to the Olmsted facility.'' They recommended that the 
marketing area be defined as the two counties within the Provo River 
drainage--Utah and Wasatch counties.
    Response: Other than adding Juab County to this Marketing Plan, 
WAPA will not be adding or subtracting any other counties.
    Comment: One commenter stated that they acknowledge the benefit of 
adding Juab County to the Proposed 2025 Marketing Plan. It is a good 
step in the redrawing the boundary lines by similar proximity to the 
Olmsted Project.
    Response: Thank you for this comment.

B. Resource Extensions and 2034 Resource Pool Allocations Responses

    Comment: One commenter stated they appreciate WAPA providing the 
District with ``priority'' status due to its role in construction, 
financing, operating, maintaining, and replacing responsibilities with 
the Olmsted Project.
    Response: Thank you for this comment.
    Comment: One commenter believed the District's current allocation 
falls proportionately short of the significant contributions they have 
made to the Olmsted Project.
    Response: WAPA appreciates this comment and plans to continue to 
give ``priority'' status to the District. Furthermore, WAPA encourages 
the District to apply for an additional allocation during the 2034 
Resource Pool Allocation process.
    Comment: Three commenters stated that any loads of facilities 
directly required by the CUPCA, including those for the ``June Sucker'' 
fish restoration efforts, be met first from the CRSP Project Use power 
and not from the Olmsted Project resources. The Commenters cited CUPCA 
102-575 and Chapter 5 of the Power Appendix of the October 2004 
Supplement to the 1988 Definite Plan Report for the Bonneville Unit to 
support this position.
    Response: WAPA concurs with these comments. Any power needed for 
the ``June Sucker'' fish restoration efforts will be provided from CRSP 
Project Use energy allocations.
    Comment: One commenter stated the District is authorized under 
CUPCA to assist the Utah Reclamation Mitigation and Conservation 
Commission and the U.S. Department of Interior to plan, design, 
construct and operate features of the CUP, including significant roles 
and responsibilities of the PRDRP and the JSRIP.

[[Page 16972]]

    Response: WAPA appreciates this comment and acknowledges the broad 
authorities the District has under CUPCA.
    Comment: One commenter stated that if WAPA plans to use the 
Resource Pool from Olmsted instead of CRSP for the electricity needs of 
the ``June Sucker'' fish, that WAPA should consider increasing their 
allocation by the entire 5 percent set aside for the Resource Pool.
    Response: WAPA has determined that CRSP power will be used for any 
electricity loads required by the ``June Sucker'' fish restoration 
efforts.
    Comment: Several commenters expressed concerns that current 
allocations from the Olmsted Project only supply energy to partially 
meet current loads within their respective service areas. Furthermore, 
these loads will continue to grow substantially over the next 10-years 
within the counties covered by the Marketing Plan.
    Response: WAPA appreciates these comments and understands the 
challenges of meeting load-growth with diminishing amounts of power 
supply. In response to these concerns, WAPA will not change current 
allocations for Customers over the next 10-years; and thereafter 
withdraw only 3 percent for the 2034 Resource Pool beginning October 1, 
2034.
    Comment: One commenter stated they value the Olmsted Project 
allocation of renewable, clean energy operated by the District. The 
Contracts with WAPA for Federal power are critical in serving the 
electric consumers in their power communities.
    Response: Thank you for this comment.
    Comment: One commenter stated they support WAPA's proposal to 
provide 95 percent of Olmsted Project available energy to existing 
Customers; and that the 5 percent set aside (Resource Pool) for new 
customers will not impact the District (dimmish their current 
allocation).
    Response: WAPA appreciates this comment. WAPA plans to reduce 2034 
Resource Pool from 5 percent to 3 percent, which generally aligns with 
other marketing plans for other WAPA projects and regions.
    Comment: One commenter stated the Olmsted Project contracts should 
be renewed and continued beyond 2024 at the same allocation percentages 
because they have concerns about any changes to the project or 
allocations and how that could influence future allocations of Federal 
energy.
    Response: WAPA will extend the Olmsted Project resource to 
Customers with no changes to existing allocations through September 1, 
2034. At which time, all existing contracts will be modified to reflect 
a 3 percent 2034 Resource Pool for new eligible preference entities and 
existing Customers.

C. Eligible Applicants Responses

    Comment: One commenter stated if new allocations are to be given, 
they should be to those with significant load growth
    Response: WAPA recognizes that meeting load growth is a concern for 
many utilities. WAPA allocates power to eligible preference entities 
based on current loads rather than anticipated loads. Further, existing 
Customers will have an opportunity to apply for a percentage of the 
2034 Resource Pool.

D. Preference Entities Responses

    Comment: No comments received.
    Response: No responses provided.

E. Ready, Willing, and Able Responses

    Comment: One commenter stated that based on historical compliance 
with the terms and conditions of the Contract, they are ready, willing, 
and able to accept a new allocation of Olmsted Project energy.
    Response: Thank you for this comment.

F. Contract Obligations Responses

    Comment: No comments received.
    Response: No responses provided.

G. Contract Term Responses

    Comment: One commenter requested a longer contract term. They 
believed this will be easier on WAPA and the District for planning and 
allocating costs for major maintenance work and overhaul repairs.
    Response: WAPA appreciates this comment and agrees a longer 
contract term will be more effective and efficient for everyone. WAPA 
is lengthening the contract term to a fixed 30-year period.

H. Delivery Point Responses

    Comment: No comments received.
    Response: No responses provided.

I. Transmission Beyond Delivery Point Responses

    Comment: No comments received.
    Response: No responses provided.

J. Regional Transmission Organization Responses

    Comment: No comments received.
    Response: No responses provided.

K. Rates and Payment Responses

    Comment: Two commenters stated they support the approach that 
Customers with an allocation will receive a share of the energy and 
will annually pay a proportionate share of the Olmsted Project 
operation, maintenance and replacement expenses as defined in the 
Project Implementation Agreement No. WS-15-100, dated February 5, 2015.
    Response: At this time, WAPA plans to continue with the same 
methodology, which may be followed through a separate public process 
(https://www.wapa.gov/regions/CRSP/rates/Documents/Olmsted%20WAPA-205%20Customer%20Brochure%20Proposal%20FINAL.pdf) under Rate Order No. 
WAPA-205 (https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx).

L. General Comments Responses

    Comment: Three commenters stated the continued sustainable 
operation, maintenance, and replacement of the Olmsted Project is 
critical to maintaining water rights for CUP.
    Response: Thank you for this comment.
    Comment: One commenter stated they value their long-standing 
working relationship with WAPA in managing the Olmsted Project 
facilities and WAPA's efforts to solve challenges associated with 
drought and meeting the growth for energy in the West.
    Response: Thank you for this comment.

Summary of Major Revisions to the Final Marketing Plan From the 
Proposed Plan

    WAPA revised the Marketing Plan, in part, to address comments 
received during the public consultation and comment period. The 
revisions are summarized as follows:
     Marketing Plan Section A: Marketing Area clarifying 
language added that allows the District to serve loads that are 
features of PRDRP and JSRIP beyond the Marketing Area boundary as long 
as the electrical loads are 100 percent CUPCA related.
     Marketing Plan Section B: Resource Extension and 2034 
Resource Pool Allocations clarifying language added including inserting 
``2034'' into the section title, delaying the Resource Pool until 
October 1, 2034, decreasing the 2034 Resource Pool from 5 percent to 3 
percent, and no Olmsted Project resources will be used as Project Use 
power for ``June Sucker'' fish restoration efforts required by the 
Central Utah Project Completion Act.
     Resource Extension and 2034 Resource Pool changed from 5 
percent to 3 percent; electrical loads associated with restoration of 
the ``June Sucker'' fish will be provided energy from CRSP

[[Page 16973]]

allocation of Project Use power--no Olmsted Project resources will be 
used; and additional clarifying language added to this section.
     Marketing Plan Section F: Contract Obligations clarifying 
language added including the addition of language pertaining to 
decreasing or increasing a Customer's allocation upon 180 days' notice 
due to a 2034 Resource Pool; new language allowing Net Billing and Bill 
Crediting at WAPA's discretion.
     Marketing Plan Section F: Contract Obligations includes 
additional clarifying language.
     Marketing Plan Section G: Contract Term changed from a 10-
year term with two automatic 5-year renewals to a fixed at 30-years for 
existing customers, October 1, 2024, to September 30, 2054; and 20 
years for any new customers resulting from the 2034 Resource Pool, 
October 1, 2034, to September 30, 2054.
     Marketing Plan Section J: Regional Transmission 
Organization and other organized market activities sentence added ``. . 
. with the understanding that WAPA holds the unilateral right to 
ultimately agree or not agree to what those potential mitigation 
efforts might be and each Customer is ultimately responsible for all 
transmission costs associated with their allocation.''
     Marketing Plan added three new sections:

[cir] The addition of Section I: Acronyms and Definitions
[cir] Added Section III: Changes Due to Drought
[cir] Added Section IV: Call for 2034 Resource Pool Applications for 
Power

2025 Olmsted Power Marketing Plan and Marketing Criteria

    The Marketing Plan addresses: (1) The available Olmsted Project 
energy to be marketed after September 30, 2024, which is the 
termination date for all existing Olmsted Project Contracts; (2) the 
general terms and conditions under which the energy will be marketed 
October 1, 2024, through September 30, 2054, to Customers and new 
allottee(s); (3) criteria to determine who will be eligible to receive 
allocations from the 2034 Resource Pools.
    WAPA will continue a collaborative process in implementing the 
terms set forth in this Marketing Plan.
    Within broad statutory guidelines, WAPA has discretion as to whom 
and under what terms it will contract for the sale of Federal power, as 
long as preference is accorded to statutorily defined public bodies. 
WAPA markets power in a manner that will encourage the most widespread 
use at the lowest possible rates consistent with sound business 
principles. All products and services provided under this Marketing 
Plan will be subject to the operational requirements and constraints of 
the Olmsted Project, transmission availability, and Federal 
authorities.

I. Acronyms and Definitions

    As used herein, the following acronyms and terms, whether singular 
or plural, capitalized or not capitalized, shall have the following 
meanings:
    Allocation: An offer from WAPA to sell Federal energy for a certain 
period of time, which will convert to a right to purchase after 
execution of a contract.
    Allocation Criteria: Criteria used to determine the amount of 
energy allocated to allottees.
    Allottee: A preference entity receiving an allocation.
    Base Resource: A percentage of the annual net marketable energy 
output of the Olmsted Project rather than fixed quantities of energy as 
determined by WAPA to be available for marketing after meeting any 
adjustments for operation and maintenance power requirements.
    Bill Crediting: Contractual provisions whereby payments due to WAPA 
by a Customer shall be paid by a Customer to a third party when so 
directed by WAPA.
    CRSP: Colorado River Storage Project is a DOI project designed to 
oversee the development of water resources in the Upper Colorado River 
Basin. The project provides hydroelectric power, flood control and 
water storage for participating states along the upper portion of the 
Colorado River and its major tributaries.
    Contract Principles: Provisions of the Contracts, including WAPA's 
General Power Contract Provisions.
    CRSP Management Center: Is one of five regional offices within WAPA 
responsible for marketing power from CRSP hydrogeneration facilities, 
of which the Olmsted Project is a feature.
    Customer: An entity with a contract and receiving electric service 
from the Olmsted Project.
    Electric Utility Status: Means a Preference entity that has 
responsibility to meet load growth, has a distribution system, and is 
ready, willing, and able to purchase Federal power from WAPA on a 
wholesale basis.
    Eligibility Criteria: Conditions that must be met to qualify for an 
allocation.
    Energy: Measured in terms of the work it is capable of doing over a 
period of time; electric energy is usually measured in kilowatt-hours 
(kWh) or megawatt-hours (MWh).
    GPCP: The General Power Contract Provisions are standard terms and 
conditions included in WAPA's Contracts.
    Integrated Resource Plan (IRP): A process and framework within 
which the costs and benefits of both demand and supply-side resources 
are evaluated to develop the least total cost mix of utility resource 
options.
    Kilowatt (kW): A unit measuring the rate of production of 
electricity; 1 kilowatt equals 1,000 watts.
    Marketing Area: The counties of Davis, Juab, Morgan, Salt Lake, 
Summit, Utah, Weber, and Wasatch, within and to the exterior of these 
county boundaries as established through an administrative or political 
subdivision of a state Utah.
    Marketing Plan: WAPA's final 2025 Power Marketing Plan for the 
Olmsted Project.
    Megawatt (MW): A unit measuring the rate of production of 
electricity; 1 megawatt equals 1 million watts.
    Net Billing: Payments due to WAPA by a customer may be offset 
against payments due to that customer by WAPA.
    Olmsted Project: A 12-megawatt replacement hydroelectricity 
facility located at the mouth of Provo Canyon in northern Utah, and a 
power transmission line to the Provo City power system. The Olmsted 
Project is part of the Central Utah Project--a participating project of 
CRSP, and is administered under the February 4, 2015, Implementation 
Agreement signed by the Central Utah Water Conservancy District 
(District), United States Department of Interior, Bureau of Reclamation 
(DOI), DOE and WAPA.
    Power: Capacity and energy.
    Preference: The requirements of Reclamation Law that provide for 
preference in the sale of Federal power be given to certain entities 
such as governments (state, Federal and Native American), 
municipalities and other corporations or agencies, and cooperatives and 
other nonprofit organizations financed in whole or in part by loans 
made pursuant to the Rural Electrification Act of 1936 (See, e.g., 
Reclamation Project Act of 1939, Section 9(c), 43 U.S.C. 485h(c)). A 
Native American applicant must be an ``Indian Tribe'' as that term is 
defined in section 4 of the Indian Self Determination and Education 
Assistance Act, as amended (25 U.S.C. 5304(e)).
    Priority Status: Priority Status is a term used with the District 
in this Marketing Plan to recognize their significant contributions 
toward constructing, financing, operating, maintaining, and replacing 
the Olmsted Project. Priority Status protects the

[[Page 16974]]

District from an allocation reduction due to the 2034 Resource Pool.
    Reclamation Law: Refers to a series of Federal laws with a lineage 
dating back to the late 1800s. Viewed as a whole, those laws create the 
framework under which WAPA markets power.
    2034 Resource Pool: A pool of energy created from available 
marketable Olmsted Project power resources allocated to Customers.
    WAPA: Western Area Power Administration, United States Department 
of Energy, a Federal Power Marketing Administration responsible for 
marketing and transmitting Federal power pursuant to Reclamation Law 
and DOE Organization Act (42 U.S.C. 7101, et seq.).

II. Olmsted Power Marketing Plan, General Criteria and Contract 
Principles

    The following criteria and contract principles apply to all 
Contracts executed under the Marketing Plan:

A. Marketing Area

    As defined in Section I., herein, the Marketing Area includes the 
counties of Davis, Juab, Morgan, Salt Lake, Summit, Utah, Weber, and 
Wasatch, within and to the exterior of these county boundaries as 
established through an administrative or political subdivision of a 
state Utah. However, the District may serve loads that are features of 
PRDRP and JSRIP beyond this Marketing Area as long as the electrical 
loads are 100 percent CUPCA related.

B. Resource Extensions and 2034 Resource Pool Allocations

1. Extension for Existing Customers
    Starting October 1, 2024, WAPA will execute new Contracts that 
provide the net marketable Olmsted Project energy resources to existing 
Customers through September 30, 2034. If existing Customer(s) 
surrenders some or all of its allocation prior to October 1, 2024, that 
percentage of the total Base Resource will be returned to the remaining 
existing Customers on a pro rata basis.
2. 2034 Pool Resources and Amount
    The 2034 Resource Pool will be created by reducing existing 
Customers' allocations by up to 3 percent, with the exception of the 
District that will not see an allocation reduction in consideration for 
its role in constructing and operating the Olmsted Project. The annual 
Resource Pool available from October 1, 2034, through September 30, 
2054, is estimated at 517,650 kWh. This is an approximate figure based 
on the most recent 3-year average of net marketable Olmsted Project 
generation of 24,650,000 minus the District's 30 percent allocation 
times 3 percent. Approximately 97 percent of the available net 
marketable Olmsted Project energy resources will remain with existing 
Customers.
3. 2034 Resource Pool Allocations
    WAPA will, at its discretion, allocate the 2034 Resource Pool to 
new applicants that meet the Eligibility and Allocation Criteria. WAPA 
will take into consideration all existing Federal hydropower 
allocations an applicant is currently receiving when determining each 
new 2034 Resource Pool allocation. Allocations from the 2034 Resource 
Pool will be determined through the processes described in this 
Marketing Plan.
4. 2034 Resource Pool Allocation Criteria
    The following Allocation Criteria will apply to all applicants 
seeking a 2034 Resource Pool Allocation under the Marketing Plan:
    a. Allocations will be made in amounts as determined solely by WAPA 
in the exercise of its discretion under Reclamation Law and considered 
to be in the best interest of the U.S. Government.
    b. Allocations will be based on all existing Federal hydropower 
allocations an applicant is currently receiving and on the applicant's 
load during the calendar year prior to the Call for Applications or the 
amount requested, whichever is less.
    c. An allottee will execute a Contract with WAPA and comply with 
all conditions in that Contract.
    d. Eligible Native American applicants will receive consideration 
for an allocation consistent with this Marketing Plan and 25 U.S.C. 
3505.

C. Eligible Applicants

    WAPA will apply the following Eligibility Criteria to all 
applicants seeking a 2034 Resource Pool Allocation under the Marketing 
Plan:
    1. Applicants must meet the preference requirements under Section 
9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)(1)), as 
amended and supplemented.
    2. Applicants must be located within the Marketing Area.
    3. Applicants that require energy for their own use must be ready, 
willing, and able to receive and use Federal energy by October 1, 2034.
    4. Applicants that provide retail electric service must be ready, 
willing, and able to receive and use the Federal energy to provide 
electric service to their customers, not for resale to others, by 
October 1, 2034.
    5. Applicants must submit an application in response to the Call 
for 2034 Resource Pool Applications by the specified deadline. WAPA 
will publish a notice for the Call for 2034 Resource Pool Applications 
in the Federal Register at a future date. WAPA anticipates it will 
issue the notice sometime around calendar year 2030.
    6. Native American applicants must be a Native American tribe as 
defined in the Indian Self Determination Act of 1975 (25 U.S.C. 5304).
    7. WAPA generally will not allocate power to applicants with loads 
of less than 1 MW; however, allocations to applicants with loads of at 
least 500 kW may be considered, provided the loads can be aggregated 
with other allottees' loads to schedule and deliver to a minimum load 
of 1 MW.

D. Preference Entities

    As defined herein, include municipalities, rural electric 
cooperatives, and political subdivisions including irrigation or other 
districts, other governmental organizations, nonprofit organizations 
financed in whole or in part by loans made pursuant to the Rural 
Electrification Act of 1936, and Federally recognized Native American 
tribes are all preference entities in accordance with section 9(c) of 
the Reclamation Project Act of 1939, as amended (43 U.S.C. 485h(c)). A 
Native American applicant must be an ``Indian Tribe'' as that term is 
defined in section 4 of the Indian Self Determination and Education 
Assistance Act, as amended (25 U.S.C. 5304(e)).

E. Ready, Willing, and Able

    Eligible applicants must be ready, willing, and able to receive and 
distribute or consume energy from WAPA by October 1, 2024. ``Ready, 
willing, and able'' means the applicant has the facilities needed for 
the receipt of power or has made the necessary arrangements for 
transmission and/or distribution service, and its power supply 
contracts with third parties to permit the delivery of WAPA's power.

F. Contract Obligations

    Eligible applicants that receive an allocation must execute 
Contracts within 6 months of receiving a contract offer from WAPA, 
unless WAPA agrees otherwise in writing. Furthermore, applicants must 
comply with all terms and conditions stated within that contract, 
including:
    1. Clauses specifying criteria to receive electric service from 
WAPA.

[[Page 16975]]

    2. WAPA's standard provisions, policies and procedures for 
Contracts, Integrated Resource Plans, General Power Contract 
Provisions, and creditworthiness as determined by WAPA.
    3. Clause that allows WAPA to reduce or increase a Customer's 
allocation percentage, upon 180 days' notice, if WAPA determines that 
(1) the Customer is not using this power to serve its own loads; (2) 
the allocation amounts are consistently greater than the Customer's 
maximum load; or (3) the Customer is allotted a percentage of 
allocation returned to WAPA from another Customer.
    4. Clauses concerning any energy not under Contract may be 
allocated at any time, at WAPA's sole discretion, or sold as deemed 
appropriate by WAPA, consistent with Federal law.
    5. Clause providing for alternative funding arrangements, including 
Net Billing, Bill Crediting, Reimbursable Financing, and advance 
payment.
    6. All power supplied by WAPA will be delivered pursuant to a 
scheduling agreement negotiated between WAPA and the Customers. Terms 
and conditions are subject to WAPA's final approval.
    7. Clause stipulating that Customers will pay for their percentage 
of the Base Resource, pursuant to the formula rate described in Section 
K., herein. Customers must pay all applicable rates and charges in the 
manner and within the time prescribed in the Contract.

G. Contract Term

    Contracts shall provide for WAPA to furnish electric service 
beginning October 1, 2024, through September 30, 2054. 2034 Resource 
Pool Contracts shall provide for WAPA to furnish electric service 
beginning October 1, 2034, through September 30, 2054.

H. Delivery Point

    The Olmsted Project is electrically interconnected to the City of 
Provo, Utah, distribution and transmission facilities (Provo System), 
and delivery of the Olmsted Project allocation to each Customer will be 
where the 12.47-kV Provo System interconnects at PacifiCorp's Hale 
Substation.

I. Transmission Beyond Delivery Point

    Any transmission beyond the delivery point at Hale Substation is 
the sole responsibility of each Customer. Eligible applicants that 
receive an allocation must have the necessary arrangements for 
transmission and/or distribution service in place by the first 
effective day of the contract.

J. Regional Transmission Organization

    Should PacifiCorp, as the balancing authority operator where the 
Olmsted Project is interconnected, join a full electricity market 
(e.g., Regional Transmission Organization and/or an Independent System 
Operator), and in joining that market create unintended delivery point/
point of receipt financial impacts to the Olmsted Project, and/or other 
unintended financial impacts, such financial impacts will be included 
as part of the Olmsted Project operation expenses. WAPA will work with 
the Customers in good faith in an attempt to minimize financial impacts 
with the understanding that WAPA holds the unilateral right to 
ultimately agree or not agree to what those potential mitigation 
efforts might be and each Customer is ultimately responsible for all 
transmission costs associated with their allocation.

K. Rates and Payment

    The Olmsted Project is a ``take all, pay all'' project (i.e., the 
Olmsted Project annual revenue requirement is not dependent upon the 
amount of energy available each year). WAPA developed the Olmsted 
Project Formula Rate F-1, under Rate Order No. WAPA-177, published in 
the Federal Register on May 7, 2018 (83 FR 20065), that determines the 
annual energy charge to each Customer receiving an allocation. The new 
rate announced in a Federal Register notice published November 10, 
2022, is being developed through a separate public process (https://www.wapa.gov/regions/CRSP/rates/Documents/Olmsted%20WAPA-205%20Customer%20Brochure%20Proposal%20FINAL.pdf) under Rate Order No. 
WAPA-205 (https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx), which proposed to establish a new effective period of May 1, 
2023, through April 30, 2028.

III. Changes Due to Drought

    WAPA recognizes here have been, and continue to be, significant 
impacts caused from a persisting long-term drought in the Colorado 
River Basin, and changes in the electric utility industry. To address 
this concern, WAPA, in collaboration with its Customers, will include 
the ability to make changes in how the Federal resource is marketed if 
there is deemed a benefit to WAPA and its Customers. Any changes 
implemented would be done through negotiation and revision to 
individual Customer Contracts.

IV. Call for 2034 Resource Pool Applications for Power

    Qualified preference entities wishing to purchase power from 
Olmsted Project from October 1, 2034, through September 30, 2054, will 
have the opportunity to submit a formal application to WAPA prior to 
October 1, 2034. Existing Customers will not need to submit an 
application unless they are seeking to increase their allocation. All 
applicants must submit applications using the Application Profile Data 
(APD) application form approved by the Office of Management and Budget. 
The Call for 2034 Resource Pool Applications will be set forth through 
a separate Federal Register notice and public process commencing 
sometime after calendar year 2030.

Authorities

    WAPA developed this Marketing Plan in accordance with its power 
marketing authorities pursuant to the following Acts of Congress: 
Reclamation Act of June 17, 1902 (Pub. L. 57-161) (32 Stat. 388), the 
Reclamation Project Act of August 4, 1939 (Pub. L. 76-260) (53 Stat. 
1187), Colorado River Storage Project Act of April 11, 1956 (Pub. L. 
84-485) (70 Stat. 105), Department of Energy Organization Act of August 
4, 1977 (Pub. L. 95-91) (91 Stat. 565), Energy Policy Act of October 
30, 1992 (Pub. L. 102-575) (106 Stat. 4600, 4605), as such acts may 
have been supplemented or amended.

Procedural Requirements

A. Review Under the National Environmental Policy Act (NEPA)

    WAPA has determined that this proposed action fits within the 
categorical exclusion listed in appendix B to subpart D of 10 CFR part 
1021 (B4.1 contracts, policies, and marketing and allocation plans for 
electric power). Categorically excluded projects and activities do not 
require preparation of either an environmental impact statement or an 
environmental assessment. A copy of the categorical exclusion 
determination is available on the CRSP website at: https://www.wapa.gov/regions/CRSP/environment/Pages/environment.aspx.

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601 et seq., 
requires a Federal agency to perform a regulatory flexibility analysis 
whenever the agency is required by law to publish a general notice of 
proposed rulemaking for any proposed rule, unless the agency can 
certify that the rule will not have a

[[Page 16976]]

significant economic impact on a substantial number of small entities. 
For purposes of the RFA, a ``rule'' does not include ``a rule of 
particular applicability relating to rates [and] services . . . or to 
valuations, costs or accounting, or practices relating to such rates 
[and] services . . .'' 5 U.S.C. 601. WAPA has determined that this 
action relates to services offered by WAPA and, therefore, is not a 
rule within the purview of the RFA.

C. Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866. Accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

D. Review Under Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (44 U.S.C. 3501, et 
seq.), WAPA has received approval from the Office of Management and 
Budget to collect applicant data, under OMB control number 1910-5136.

Signing Authority

    This document of the Department of Energy was signed on March 3, 
2023, by Tracey A. LeBeau, Administrator, Western Area Power 
Administration, pursuant to delegated authority from the Secretary of 
Energy. That document, with the original signature and date, is 
maintained by DOE. For administrative purposes only, and in compliance 
with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on March 16, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-05736 Filed 3-20-23; 8:45 am]
BILLING CODE 6450-01-P