82_FR_38831 82 FR 38675 - 2025 Power Marketing Plan

82 FR 38675 - 2025 Power Marketing Plan

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 82, Issue 156 (August 15, 2017)

Page Range38675-38685
FR Document2017-17210

The Department of Energy (DOE), Western Area Power Administration (WAPA), announces its final 2025 Power Marketing Plan (Marketing Plan) for the Sierra Nevada Region (SNR). On December 31, 2024, all of SNR's long-term power sales contracts will expire. This notice responds to comments received on the Proposed 2025 Power Marketing Plan (Proposed Plan) and sets forth the Marketing Plan. The Marketing Plan specifies the terms and conditions under which WAPA will market power from the Central Valley Project (CVP) and the Washoe Project beginning January 1, 2025. This Marketing Plan supersedes all previous marketing plans for these projects. WAPA will offer new contracts for the sale of power to existing customers as more fully described in the Marketing Plan. Entities who wish to apply for a new allocation of power from WAPA, and who meet the criteria defined in the Marketing Plan, should submit formal applications. Application procedures will be set forth in the Call for 2025 Resource Pool Applications in a separate Federal Register notice to be published after the Marketing Plan is applicable.

Federal Register, Volume 82 Issue 156 (Tuesday, August 15, 2017)
[Federal Register Volume 82, Number 156 (Tuesday, August 15, 2017)]
[Notices]
[Pages 38675-38685]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17210]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Western Area Power Administration


2025 Power Marketing Plan

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of final plan.

-----------------------------------------------------------------------

SUMMARY: The Department of Energy (DOE), Western Area Power 
Administration (WAPA), announces its final 2025 Power Marketing Plan 
(Marketing Plan) for the Sierra Nevada Region (SNR). On December 31, 
2024, all of SNR's long-term power sales contracts will expire. This 
notice responds to comments received on the Proposed 2025 Power 
Marketing Plan (Proposed Plan) and sets forth the Marketing Plan. The 
Marketing Plan specifies the terms and conditions under which WAPA will 
market power from the Central Valley Project (CVP) and the Washoe 
Project beginning January 1, 2025. This Marketing Plan supersedes all 
previous marketing plans for these projects. WAPA will offer new 
contracts for the sale of power to existing customers as more fully 
described in the Marketing Plan. Entities who wish to apply for a new 
allocation of power from WAPA, and who meet the criteria defined in the 
Marketing Plan, should submit formal applications. Application 
procedures will be set forth in the Call for 2025 Resource Pool 
Applications in a separate Federal Register notice to be published 
after the Marketing Plan is applicable.

DATES: The Marketing Plan will become applicable September 14, 2017 in 
order to make power allocations and complete the other processes 
necessary to begin providing services on January 1, 2025.

FOR FURTHER INFORMATION CONTACT: Ms. Sonja Anderson, Vice President of 
Power Marketing, Sierra Nevada Customer Service Region, Western Area 
Power Administration, 114 Parkshore Drive, Folsom, CA, 95630-4710, by 
email at [email protected], or by telephone (916) 353-4421. Information 
on development of the Marketing Plan can be found at https://www.wapa.gov/regions/SN/PowerMarketing/Pages/2025-Program.aspx.

SUPPLEMENTARY INFORMATION: 

Development of the 2025 Power Marketing Plan

    WAPA currently markets power from the CVP and the Washoe Project 
under long-term contracts to approximately 80 preference customers in 
northern and central California and Nevada. On December 31, 2024, all 
of SNR's long-

[[Page 38676]]

term power sales contracts will expire. This notice sets forth WAPA's 
Marketing Plan and responds to comments received on the Proposed Plan. 
The Marketing Plan specifies the terms and conditions under which WAPA 
will market power from CVP and the Washoe Project beginning January 1, 
2025. This Marketing Plan supersedes all previous marketing plans for 
these projects.
    CVP power facilities include 11 powerplants with a maximum 
operating capability of about 2,113 megawatts (MW) and an estimated 
average annual generation of 4.6 million megawatthours (MWh). The 
Washoe Project, Stampede Powerplant has a maximum operating capability 
of 3.65 MW with an estimated annual generation of 10,000 MWh.
    To deliver CVP power, WAPA owns the 94 circuit-mile Malin-Round 
Mountain 500-kilovolt (kV) transmission line (an integral part of the 
Pacific AC Intertie (PACI)), the 84 circuit-mile Los Banos-Gates No. 3 
500-kV transmission line, 803 circuit miles of 230-kV transmission 
line, 7 circuit miles of 115-kV transmission line, and approximately 63 
circuit miles of 69-kV and below transmission line. WAPA also has 
partial ownership in the 342-mile California-Oregon Transmission 
Project (COTP) 500-kV transmission line. Many of WAPA's existing 
customers have no direct access to WAPA's transmission lines and 
receive service over transmission lines owned by other utilities. The 
Washoe Project is not directly connected to the CVP. Sierra Pacific 
Power Company (SPPC) owns and operates the only transmission system 
available for access to the Washoe Project.
    The following table lists a range of estimated CVP and Washoe 
Project power resources and adjustments. This table is for 
informational purposes only and does not imply the power resources and 
adjustments shown will be the actual amounts available or adjustments 
applied.

------------------------------------------------------------------------
 Estimated CVP power resources and adjustments prior to first preference
               entitlements and base resource allocations
-------------------------------------------------------------------------
         Power resources/adjustment                  Range/value
------------------------------------------------------------------------
Annual energy generation...................  2,400,000-8,600,000 MWh.
Monthly energy generation..................  87,000-1,100,000 MWh.
Monthly capacity...........................  360-1,900 MW.
Annual project use.........................  334,000 MWh-1,670,000 MWh.
Monthly project use........................  10,000-180,000 MWh.
Monthly project use (on peak)..............  30-360 MW.
Monthly maintenance........................  0-300 MW.
Reserves--hydro............................  minimum 5% of monthly
                                              capacity.
CVP transmission and transformation losses   1.6%.
 from the generator bus to a 230-kV load
 bus.
------------------------------------------------------------------------

    WAPA began developing the Marketing Plan with a series of three 
informal public information meetings. These meetings helped WAPA 
identify pertinent issues, including contract provisions and 
methodologies for creating resource pools.
    WAPA subsequently published its Proposed Plan (81 FR 27433, dated 
May 6, 2016). WAPA held a public information forum on June 1, 2016, to 
present the Proposed Plan and answer questions. On July 12, 2016, WAPA 
held a public comment forum to accept verbal comments, and accepted 
written comments from the public through August 4, 2016. WAPA 
considered the comments received in developing the Marketing Plan.

Responses to Comments Received on the Notice of Proposed Plan

    During the public consultation and comment period, WAPA received 13 
letters commenting on the Proposed Plan. In addition, six customers and 
interested stakeholder representatives commented during the July 12, 
2016, 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. 
Specific comments are used for clarification where necessary.

I. Marketing Plan Term

    Comment: All commenters supported the 30-year term; however, 
several stated without some additional balancing of the termination 
provisions and/or the rate procedures, the additional term could result 
in cost or risk exposure that negatively impacts Base Resource 
customers. Additionally, Base Resource customers will be exposed to 
increased risks due to the take-or-pay nature of the power contracts 
unless WAPA includes reduction and early termination provisions.
    Response: Please see WAPA's response under Termination and 
Reduction Provisions for a response to the reduction and early 
termination portion of these comments.

II. Marketable Resource--Base Resource

    Comment: Two commenters stated WAPA should explicitly define the 
Base Resource and list all applicable attributes including energy, 
capacity, ancillary services, reserves, transmission and environmental 
attributes.
    Response: WAPA has modified the definition of Base Resource in the 
Marketing Plan to clarify that power includes capacity and energy. 
Transmission is not an attribute of the Base Resource. It is the 
customers' responsibility to secure any necessary transmission service; 
however, WAPA will provide transmission service to deliver the Base 
Resource on the CVP system. The definition continues to include 
ancillary services reserves, and environmental attributes.
    Comment: A commenter stated it understands that Project Use, First 
Preference, maintenance, reserves, and system and transmission losses 
are subtracted from the CVP generation prior to determining the Base 
Resource available. The commenter asked if there were any other 
existing or new obligations on the CVP resource that should be 
explicitly identified in the Marketing Plan.
    Response: At this time, there are no additional obligations on CVP 
power resources other than those listed.
    Comment: A commenter stated WAPA should determine the amount of 
Base Resource available in an equitable manner, and not by which 
balancing authority area the customers are located. WAPA can improve 
the equity by considering all aspects of its CVP portfolio of assets, 
including generation,

[[Page 38677]]

capacity, ancillaries, and transmission assets.
    Response: The Marketing Plan defines Base Resource and allocates 
Base Resource to each preference customer based on the preference 
customer's percentage. WAPA does not consider a customer's balancing 
authority area when determining the amount of Base Resource available.
    Comment: A commenter encouraged greater efforts by WAPA and the 
U.S. Department of the Interior, Bureau of Reclamation (Reclamation) to 
consider measures to increase the value and flexibility of the Base 
Resource.
    Response: WAPA will continue to work with Reclamation to maximize 
the value of the Base Resource.

III. Marketable Resource--Custom Products

    Comment: Several commenters supported offering Custom Products. The 
commenters stated that WAPA's commitment to explore requested Custom 
Products provides needed certainty and possible additional 
opportunities for customers to explore new uses for the Base Resource 
and transmission assets. The commenters further stated that WAPA's 
process for establishing Custom Products involves appropriate customer 
input, and ensures that WAPA's other customers may even benefit 
indirectly from the offering of Custom Products. The commenters also 
stated that Custom Products improve the value of the Base Resource to 
all customers. The customers support all costs incurred being paid by 
those customers contracting for such Custom Products.
    Response: WAPA will continue to offer Custom Products with all 
costs incurred paid by those customers contracting for those products 
and/or services.
    Comment: A commenter encouraged WAPA to identify the Custom 
Products being offered to customers, including the product terms and 
cost, and to increase the visibility and availability of the price and 
terms and conditions of Custom Products. The commenter suggested that 
WAPA provide periodic reports on the Custom Products used by preference 
customers, including data on prices, terms, and conditions for all 
products.
    Response: WAPA anticipates it will continue to offer Full Load, 
Variable Resource, and Scheduling Coordinator Services. WAPA is open to 
assisting customers with their electric service needs under a Custom 
Product contract if WAPA is able to do so. Custom Products will 
initially be offered for 5-year terms. The cost for such products and 
services will be on a pass-through basis. WAPA will not know what other 
products or services it may provide until those services are requested, 
nor will WAPA know the cost of any Custom Products until those services 
are determined, along with the number of customers participating in 
those services, and other relevant parameters. At such time as the 
pricing, terms and conditions related to Custom Products is no longer 
considered proprietary and/or market sensitive, WAPA may provide it 
upon request.
    Comment: A commenter asked WAPA to clarify how it will carry out 
the collaborative process to ensure all stakeholder perspectives are 
considered.
    Response: Custom Products are any product or service requested by 
an individual customer or group of customers. These products or 
services will be mutually negotiated between a specific customer or a 
specific group of customers and WAPA.
    Comment: A commenter stated that, to the extent the Custom Products 
offered reduce the value of the Base Resource to other preference 
customers by reducing the availability of electricity, capacity, 
reserves, ancillary services, transmission and/or environmental 
attributes, the beneficiary should pay for the value of the displaced 
Base Resource. WAPA should modify the Marketing Plan to clearly define 
the Custom Products that could reduce power and transmission available 
for Base Resource generation before all customers are asked to execute 
a contract in 2020.
    Response: Custom Products do not include the Base Resource or CVP 
generation. Custom Products are meant to enhance the Base Resource for 
those customers that may need additional services from WAPA to maximize 
the benefit from the Base Resource. WAPA provides transmission with the 
Base Resource; therefore, Custom Products do not affect the 
availability of transmission for Base Resource delivery.
    Comment: If WAPA is providing a service or facility for voltage 
support or some similar benefit to a specific entity, according to 
WAPA's Open Access Transmission Tariff (OATT), the costs for such a 
project must be paid by that individual entity. If WAPA does not follow 
its own OATT and allocates these costs to other entities, these other 
entities must be authorized an off-ramp.
    Response: All costs associated with providing Custom Products are 
passed to those customers requesting Custom Products. If a Custom 
Product involves services under WAPA's OATT, the customer will take and 
pay for those services under the OATT.

IV. Exchange Program

    Comment: A commenter supported the hourly and seasonal exchange 
programs provided that they are administered and implemented fairly 
whereby all who can share in the benefits of Base Resource can do so 
without taking on additional burdens.
    Response: WAPA intends to develop the exchange program with input 
from the customers and the public to maximize the benefits and lessen 
any burdens associated with exchange program participation. The 
exchange program is an optional program.

V. Extension of the Resource

    Comment: Several commenters support extending 98 percent of the 
Base Resource to existing customers.
    Response: WAPA will extend 98 percent of the Base Resource to 
existing customers as specified in the Marketing Plan.
    Comment: A commenter stated WAPA should allow existing customers to 
take less than 98 percent of their current Base Resource percentage.
    Response: WAPA will allow an existing customer to reduce its base 
resource percentage allocation under this Marketing Plan with at least 
six months' written notice to WAPA prior to January 1, 2025.
    Comment: A commenter supported limiting allocations to no more than 
100 percent of load, but suggested using consistent data to determine 
load between existing and new customers.
    Response: A customer should not have an allocation larger than its 
load. Reviewing a 5-year period of energy consumption for existing 
customers is appropriate so an existing customer is not unduly harmed 
due to unusual factors (drought, environmental impacts, etc.) that may 
affect their load for just one year.

VI. Resource Pools

    Comment: Several commenters support creating the resource pools; 
the calculation methodology to create the resource pools; and the 2 and 
1 percent resource pools in 2025 and 2040, respectively, which are 
sufficient to broaden the preference customer base without overly 
penalizing existing customers.
    Response: WAPA acknowledges the comment.
    Comment: Two commenters stated the Marketing Plan should have a 
provision to address how WAPA will manage returned allocations from 
customers that either do not opt for new power contracts or exercise 
early termination. A commenter recommends that

[[Page 38678]]

surrendered or excess allocations (where load exceeds allocations) be 
offered to existing customers on a pro rata basis. Another commenter 
supports returning all surrendered allocations to existing customers, 
even if that amount is beyond 2 percent.
    Response: The Marketing Plan states that surrendered allocations 
will be returned to existing customers on a pro rata basis, up to 100 
percent of each existing customer's pre-2025 allocations. WAPA will not 
allocate Base Resource above an existing customer's pre-2025 allocation 
unless that existing customer applies for an additional allocation 
because some existing customers may neither need nor want more Base 
Resource. Any Base Resource available after returning existing 
customers to 100 percent of their pre-2025 allocations will be included 
in the resource pool. Any Base Resource available from excess 
allocations, which WAPA believes will be minimal, will also be included 
in the resource pool. Existing customers interested in receiving 
additional Base Resource are encouraged to apply for a resource pool 
allocation. This same process will be used for the 2040 resource pool.

VII. Allocation Criteria

    Comment: A commenter stated the Northern California Power Agency 
members with small allocations due to prior withdrawals should receive 
at least equal consideration with Native American tribes.
    Response: WAPA will consider all applications received in response 
to the Calls for Applications. It is WAPA's policy to provide 
assistance to Native American tribes consistent with 25 U.S.C. 3505.
    Comment: A commenter stated that under the Proposed Plan, a new 
customer could potentially receive up to 2 percent of the Base Resource 
in 2025 if additional customers are not available to split the resource 
pool. The commenter stated that if there are not enough new customers 
to fully subscribe to the 2 percent offering, the remaining share of 
the Base Resource product that is not allocated to a new customer can 
then be distributed to existing customers. The commenter also stated 
that existing customers could still potentially receive less than 1 
percent of the Base Resource if several existing customers sign up to 
receive a share of unsubscribed Base Resource in the resource pool for 
new customers.
    Response: WAPA has not determined how much Base Resource will be 
allocated to any allottee or group of allottees, which would include 
new allottees or increases in existing customers' allocations. Existing 
customers may apply for additional Base Resource.
    Comment: A commenter said the allocation methodology states the 
allocation of Base Resource ``will be based on applicant's load during 
the calendar year prior to the Call for Applications or the amount 
requested, whichever is less.'' The commenter advocated establishing 
this load ratio share benchmark to determine which existing customers' 
Base Resource allocations exceed their load ratio share and subjecting 
only those excess allocations to the 2 percent reduction to establish 
the resource pool. Those existing customers whose Base Resource 
allocations fall below the benchmark would not be subject to the 2 
percent reduction and would also be eligible for participation in the 
resource pool.
    Response: WAPA considered several different methodologies to create 
the Resource Pools, including reducing only a subset of existing 
customers' allocations. After reviewing the comments received during 
informal stakeholder meetings, WAPA determined it would treat all 
customers equally by reducing the existing customers' allocation by 2 
percent and 1 percent to create the 2025 and 2040 Resource Pools, 
respectively.
    Comment: A commenter strongly encouraged development of minimum 
threshold criteria to ensure that the existing customers are not 
disadvantaged by the resource pool and that the resource value is not 
weakened or jeopardized by new customers. The commenter encouraged 
setting standards or carefully monitoring the resource pool process to 
ensure the resource is being used consistent with the project purposes.
    Response: The Marketing Plan sets forth the eligibility criteria 
necessary to be met to qualify for an allocation of Federal power. The 
criteria apply to both existing and new customers. All new and existing 
customers will execute the same electric service contract and are bound 
by the same terms and conditions.
    Comment: A commenter was concerned by the proposal to allow only 
those customers who have a load ratio share below 25 percent to receive 
additional allocations under the resource pool. The commenter 
understands the intent to avoid allocating additional Base Resource to 
entities who already have large allocations; however, the commenter 
stated the 25 percent threshold is somewhat arbitrary and that a set 
threshold neglects consideration of customers' socio-economic 
conditions or technical issues.
    Response: In an informal public information meeting, WAPA proposed 
only existing customers whose allocation meets less than 25 percent of 
their load could apply for an additional allocation of Base Resource. 
Several stakeholders stated concerns with that proposal. Based on those 
concerns, the Marketing Plan does not contain a threshold. Any existing 
customer can apply for a resource pool allocation.

VIII. General Criteria and Contract Principles

    Comment: Section V.B. states that ``Allocation percentages are 
subject to adjustment.'' A commenter stated the circumstances of such 
an adjustment need to be specified so customers have an understanding 
of the nature of their commitment to an allocation. WAPA should clarify 
that Base Resource percentage adjustments will only be made in very 
limited circumstances, such as by customer termination or reduction, or 
when a customer no longer exists.
    Response: WAPA agrees there are limited circumstances when Base 
Resource percentages may be adjusted as defined by the Marketing Plan. 
For instance, existing customers' Base Resource percentages may be 
increased if one or more existing customers reduce their Base Resource 
percentage or terminate their contracts prior to 2025. All customers' 
Base Resource percentages will be reduced for the 2040 Resource Pool. 
If it is determined that a customer has too large of an allocation, or 
is using the Base Resource for purposes other than serving its own 
load, that customer's Base Resource percentage may be reduced or 
withdrawn. An assignment, or withdrawal of an assignment, also would 
cause an adjustment in a customer's Base Resource percentage.
    Comment: Section V.I. states ``Contracts will include clauses 
specifying criteria that customers must meet on a continuous basis to 
be eligible to receive electric service from WAPA.'' Two commenters 
stated if WAPA intends to include criteria in the contracts that differ 
from the criteria for eligibility for an allocation, then the nature of 
the intended ongoing criteria should be explained. WAPA should clarify 
the criteria a customer must continue to meet to remain a customer.
    Response: The eligibility criteria listed in the Marketing Plan 
will remain during the term of the Marketing Plan. However, other 
criteria may be required during the 30-year term to maintain 
flexibility and adapt to changes. Criteria

[[Page 38679]]

that a customer may need to meet will be included in contracts which 
can be modified as necessary to correspond with changes in the electric 
utility industry.
    Comment: A commenter asked what version of the General Power 
Contract Provisions (GPCP) will be attached to the new contracts.
    Response: The GPCP in effect at the time of the contract offer will 
be attached to the contracts for electric service.

IX. Termination/Reduction

    Comment: Several commenters expressed interest in contract 
termination/Base Resource reduction. Commenters stated that to achieve 
balance for a 30-year take-or-pay obligation, the contract should 
include a reasonable termination or reduction provision. Commenters 
asserted that precedent for contract termination provisions within 
contracts has been set by Federal Energy Regulatory Commission (FERC)-
approved transmission contracts. Due to the vague language in the GPCP, 
commenters stated that the Marketing Plan should clearly articulate 
customers' ability to terminate or reduce their Base Resource 
percentages when rates are extended. Commenters asserted that the 
Marketing Plan should clarify a customer's ability to terminate its 
contract under the GPCP. While the current GPCP provide for any 
customer, during a 90-day notification window, to terminate a contract 
following a rate change or formula rate extension, commenters 
recommended that a clear termination or allocation reduction provision 
be included in the body of the new agreement. Commenters asserted that 
there is clear precedent in major WAPA agreements for a reasonable 
termination notice provision. Commenters stated that specific language 
should be included in the body of the power contracts to allow a 
customer to reduce or terminate its allocation upon notice to WAPA, 
because GPCP termination triggered by rate change action is not 
sufficient risk protection for customers.
    Response: WAPA acknowledges a 30-year term for a contract is a 
significant commitment and understands the concern regarding the 
ability to terminate the contract. WAPA's GPCP provide for customers to 
terminate service in the event of a change of rates. However, to 
address the commenters' concerns, WAPA will exclude Section 11 of the 
GPCP and, in collaboration with the customers, will clarify Section 11 
and insert it directly into the contract.
    Comment: Several commenters also stated the contracts should 
provide an exit clause at 5-year intervals during the term, after a 
change in the rates or terms of service, or after a significant 
regulatory change. According to the commenters, such a provision would 
provide protection for customers' ratepayers. Without an undisputable 
termination provision, commenters asserted that a 30-year take-or-pay 
contract will be a difficult commitment to make in the current 
environment of low cost renewable resources relative to the highly 
uncertain resource availability and allocated costs associated with the 
Base Resource. Commenters stated that sufficient notice periods would 
give WAPA time to explore alternative means for marketing power. The 
commenters strongly recommended consideration of a process that allows 
customers to terminate or reduce their Base Resource percentages under 
prescribed conditions. Such conditions could include a requirement that 
customers attempt to reassign the Base Resource percentage; longer 
notice provisions; or other criteria that would provide a balance for 
all parties. Some of these commenters advocated an opportunity for 
customers, upon reasonable notice, to terminate or modify their Base 
Resource allocation, for any reason, every five years throughout the 
term of the contract.
    Response: As discussed above, WAPA will allow for termination as a 
result of a rate adjustment. WAPA anticipates electric utility industry 
changes and has provided for the ability to modify contracts in 
collaboration with customers in this Marketing Plan; therefore, WAPA 
does not believe an exit clause will be necessary in response to 
changes in the electric utility industry. Additionally, WAPA will use 
best efforts to assist customers that wish to reassign an allocation to 
the extent there are customers interested in additional allocations.
    Comment: A commenter advocated a process whereby those customers 
intending to terminate their Base Resource contracts make an offering 
to other remaining Base Resource customers prior to filing a notice to 
terminate the contract. This would allow the remaining Base Resource 
customers to elect the level of additional Base Resource product that 
they would want to take and provide an overall balance of certainty for 
the entire program.
    Response: If an existing customer surrenders some or all of its 
Base Resource percentage during a resource pool process, WAPA will 
first use that surrendered Base Resource percentage to return all 
existing customers up to their full Base Resource percentage prior to 
the resource pool reduction. Any remaining Base Resource percentage 
after all customers are returned to their full Base Resource percentage 
will be included in the resource pool. Outside of a resource pool 
period, if a customer were to surrender any or all of its Base Resource 
percentage, WAPA, at its discretion, will reallocate that Base Resource 
percentage.

X. First Preference Entitlement and Allocation

    Comment: A commenter stated the Final Plan should state that any 
and all preference entities located within Calaveras County are 
eligible to join a joint powers authority (JPA) as members and receive 
power through such JPA, irrespective if any of those entities receive a 
Base Resource allocation.
    Response: Increasing Calaveras County's first preference allocation 
to serve additional loads of other preference customers would 
circumvent the allocation process. Additionally, it would lower the 
amount of Base Resource available for all preference customers.

XI. Transmission

    Comment: A commenter supported continued use of the CVP 
transmission for Base Resource deliveries.
    Response: Western acknowledges the comment.
    Comment: A commenter stated WAPA should work with customers to 
ensure transmission arrangements are completed to provide for delivery 
of power made available by the Marketing Plan.
    Response: WAPA will use best efforts to assist customers with their 
transmission arrangements. However, because WAPA does not own all the 
transmission and distribution necessary to serve all customers' loads, 
obtaining the transmission and distribution service necessary for 
delivery of WAPA power is ultimately the customers' responsibility.
    Comment: Several commenters support consideration of the PACI to 
aid and benefit the CVP. Commenters stated that WAPA's transmission 
assets can be used to improve the economic benefit of the CVP to 
preference customers. Commenters also stated that WAPA should carefully 
manage and use all of its transmission assets to maximize and enhance 
economic and operational benefits to allow CVP costs to be minimized 
and benefits to be shared with preference customers. Commenters 
supported WAPA's commitment to

[[Page 38680]]

make surplus transmission available to aid and benefit the CVP. 
Commenters encouraged WAPA to explore the best use of its surplus 
transmission, including the Path 15 transmission line, to minimize 
costs for the CVP while honoring its existing commitments.
    Response: Under WAPA's OATT, WAPA is required to charge all 
customers the same rate it charges itself, unless there is a statutory 
exemption. The PACI legislation (16 U.S.C. 837g) provides that WAPA 
should sell the excess capacity at equitable rates. Operational control 
of Path 15 has been turned over to the California Independent System 
Operator (CAISO). WAPA will continue to examine ways to utilize the 
PACI to aid and benefit the CVP.

XII. Changes in the Electric Utility Industry

    Comment: Numerous commenters support WAPA incorporating specific 
provisions to negotiate changes to contracts should changes in the 
electric industry/markets be significant enough that CVP transactions 
would need to be managed differently than might be articulated in the 
contracts. Commenters stated that this may be important in light of the 
significant changes that continue to impact the electric utility 
industry. Commenters further stated that the Marketing Plan needs to 
remain flexible due to the evolving power system, and that WAPA may 
need to re-evaluate the products and services it offers to continue to 
provide power at the lowest possible rates consistent with sound 
business principles. Commenters requested that WAPA clarify that any 
changes will be done with mutual agreement by WAPA and the customers.
    Response: WAPA may need to re-evaluate the manner in which it 
markets the resource due to changes in the electric market. Any 
contractual changes will be made via mutual consent through an 
amendment executed by both parties to the contract.

XIII. Additional Comments

    Comment: A commenter stated that, in the Proposed 2025 Schedule, 
the one-time termination milestone should be removed and replaced with 
the opportunity to terminate or reduce the Base Resource percentage 
prior to contract start date.
    Response: WAPA has determined that a minimum of 6 months is needed 
to allow time to reallocate any returned allocations. Customers may 
reduce or return their allocations no later than July 1, 2024.
    Comment: A commenter asked what credit provisions will be applied 
to all customers.
    Response: WAPA's standard credit provisions in effect at the time 
of contract execution will be applied to all customers.
    Comment: Numerous commenters stated the Marketing Plan should 
include a limiter that would cap power customers' payments when power 
customers' combined CVP power and Restoration Fund payments exceed the 
annual average of the North of Path 15 market rate. A commenter 
strongly requested the Marketing Plan include a cap on costs that can 
be allocated to power customers under certain conditions to ensure the 
contract remains financially sustainable for customers and provides for 
a more proportionate allocation of costs between water and power 
customers. The commenters also stated that contracts should include a 
cap on power customers' payments when CVP power, Restoration Fund 
payments, Twin Tunnel payment and all other fees in total exceed the 
annual average market price. Commenters further stated that Restoration 
Fund costs are more than a third of the total cost of the Base 
Resource. While customers indicated that they understand that WAPA's 
cost recovery mechanisms for the CVP are based on the foundation of 
recovery for direct project costs through the power revenue 
requirement, they asked that WAPA explore further the Central Valley 
Project Improvement Act (CVPIA) costs that are being passed through by 
Reclamation before Plan implementation. Commenters stated that cost 
containment and cost certainty must be part of the equation so that 
Base Resource customers are able to better plan on power expenses and 
better justify budget impacts. If no significant benefits to power 
customers are associated with certain cost types, commenters argued 
that sound cost causation principles would suggest that those costs 
should not be passed on to power customers. Customers recommended that 
WAPA agree to suspend the collection of non-essential costs and 
projects when CVP generation levels are reduced, allowing Federal power 
to be assessed at rates equal or near alternative power costs. In the 
customers' view, the GPCP alone would not give customers protection 
from the CVP cost impacts occurring because of continually increasing 
CVPIA Restoration Fund costs. Because WAPA rate actions establish total 
revenue requirements, and not per unit costs, customers believe that 
the GPCP do not protect customers from increasing per unit costs due to 
declining CVP power production. Lastly, customers argued that because 
WAPA rate actions establish total revenue requirements, and do not 
consider the value of CVP power generated, the GPCP do not protect 
customers from declining value of CVP production due to water 
management shifts to periods when power is less valuable.
    Response: WAPA will sell the Base Resource at a cost-based rate. 
WAPA is required to recover costs within a statutorily defined period. 
The public ratemaking process is separate from the development of, and 
allocation of power under, the Marketing Plan. WAPA encourages the 
public to participate in WAPA's rate processes. Costs and availability 
will be more clearly identified by the time commitments are required 
for the Base Resource. Reclamation develops and implements the programs 
under the CVPIA, and determines the costs associated with its programs. 
WAPA is the billing agent for the Restoration Fund charges to the power 
customers and has no control over those costs; however, WAPA minimizes 
WAPA components of power costs to provide the best possible service at 
the lowest possible rates consistent with sound business principles. 
WAPA will continue to work with Reclamation and the customers on the 
CVPIA costs Reclamation is passing on to WAPA's customers.

Summary of Revisions to the Proposed Plan

    WAPA revised the Proposed Plan as a result of the comments received 
during the comment period and public forums. Additionally, changes have 
been made to more clearly define the intent, but not to alter the 
substance, of the original proposal. The revisions are summarized as 
follows:
    WAPA will exclude GPCP Section 11 from the electric service 
contract and, instead, will include language in the electric service 
contract developed in collaboration with customers that clearly defines 
the customers' ability to terminate their contracts after certain rate 
processes.
    The definition of Base Resource is modified to clarify that power 
includes both capacity and energy. Additionally, the word ``forfeit'' 
is being replaced with ``surrender'' to more accurately refer to a 
voluntary return of an allocation.
    In response to comments regarding the Custom Product, the 
definition of Custom Product is modified to clarify it does not include 
Base Resource and may not necessarily be supplemental power.

[[Page 38681]]

2025 Power Marketing Plan

    The Marketing Plan addresses: (1) The power to be marketed after 
December 31, 2024, which is the termination date for all existing SNR 
electric service contracts; (2) the general terms and conditions under 
which the power will be marketed January 1, 2025, through December 31, 
2054; and (3) the criteria to determine who will be eligible to receive 
allocations from the 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 CVP and the Washoe Project, transmission availability, purchase 
power limitations, 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 power 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 percentage.
Ancillary Services Those services necessary to support the transfer of 
electricity while maintaining reliable operation of the transmission 
provider's transmission system in accordance with good utility 
practice. Ancillary services are generally defined by the North 
American Electric Reliability Corporation.
Base Resource CVP and Washoe Project power (capacity and energy) output 
determined by WAPA to be available for marketing, including the 
environmental attributes, after meeting the requirements of project use 
and first preference customers, and any adjustments for maintenance, 
reserves, system losses, and certain ancillary services.
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.
Capacity The electrical capability of a generator, transformer, 
transmission circuit or other equipment.
Central Valley Project (CVP) A multipurpose Federal water development 
project extending from the Cascade Range in northern California to the 
plains along the Kern River, south of the City of Bakersfield.
Contract Principles Provisions of the electric service contracts, 
including WAPA's General Power Contract Provisions.
Custom Product A combination of products and services which may be made 
available by WAPA per customer request.
Customer An entity with a contract and receiving electric service from 
WAPA's Sierra Nevada Region.
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 kilowatthours or 
megawatthours.
Firm A type of product and/or service that is available to a customer 
at the times it is required.
First Preference Customer/Entity A preference customer and/or a 
preference entity (an entity qualified to use, but not using, 
preference power) within a county of origin (Trinity, Calaveras, and 
Tuolumne) as specified under the Trinity River Division Act (69 Stat. 
719) and the New Melones Project provisions of the Flood Control Act of 
1962 (76 Stat. 1173, 1191-1192).
General Power Contract Provisions (GPCP) Standard terms and conditions 
included in WAPA's electric service 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; 
one kilowatt equals one thousand watts.
Marketing Plan WAPA's final 2025 Power Marketing Plan for the Sierra 
Nevada Region.
Megawatt (MW) A unit measuring the rate of production of electricity; 
one megawatt equals one million watts.
Net Billing Payments due to WAPA by a customer may be offset against 
payments due to that customer by 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 public 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 USC 
485h(c)).
Primary Marketing Area The area generally encompassing northern and 
central California extending from the Cascade Range to the Tehachapi 
Mountains and west-central Nevada.
Project Use Power as defined by Reclamation Law and/or used to operate 
CVP and Washoe Project facilities.
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.
Reimbursable Financing WAPA may purchase power or provide other 
services using reimbursable authority pursuant to the Economy Act, 31 
USC 1535. This is a funding mechanism used by Federal customers.
Sierra Nevada Region (SNR) The Sierra Nevada Region of the Western Area 
Power Administration.
Unbundled Electric service that is separated into its components and 
offered for sale with separate rates for each component.
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 the DOE Organization Act (42 USC 7101, et seq.).
Washoe Project A Federal water project located in the Lahontan Basin in 
west-central Nevada and east-central California.

II. Base Resource

    The Base Resource, as defined in Section I., will include CVP and 
Washoe Project power. CVP generation will vary hourly, daily, monthly, 
and annually because it is subject to hydrological conditions and other 
constraints that may govern CVP operations. CVP generation must be 
adjusted for project use, first preference, maintenance, reserves, 
system losses, and certain ancillary services before the Base Resource 
is available for marketing. The Base Resource will be further adjusted

[[Page 38682]]

for transmission losses to the point of delivery.
    The U.S. Department of the Interior, Fish and Wildlife Service 
(F&WS), Lahontan National Fish Hatchery and Marble Bluff Fish Facility 
are project use loads of the Washoe Project and have first priority to 
those power resources. WAPA will continue to make every effort to 
provide the Washoe Project power resource to F&WS. The generation 
available after serving the F&WS needs will be marketed with the CVP 
power resources. The Washoe Project is subject to the same variability 
and constraints as the CVP.

III. Products and Services

    WAPA will market its Base Resource alone or in combination with a 
Custom Product, which could include purchasing some level of firming 
power on behalf of all customers, a group of customers, or individual 
customers. All costs incurred by WAPA in providing additional services 
to customers will be paid by those customers using the services. The 
degree to which WAPA continues to purchase power will depend on 
customer requests and Federal authorities.
    Each allottee will be allocated a percentage of the Base Resource. 
All allottees will be required to commit to the Base Resource within 6 
months of a contract offer.
    Upon request, WAPA may develop a Custom Product for any customer. A 
Custom Product may include any products or services mutually negotiated 
between WAPA and a customer. This may include firming and/or renewable 
power purchases, ancillary services, reserves, portfolio management 
services, scheduling coordinator services, etc. Commitments to purchase 
a Custom Product must be made by January 1, 2023, for a period of no 
less than 5 years of service, beginning January 1, 2025. Thereafter, 
the Custom Product will be offered for periods as determined by WAPA. 
All costs incurred by WAPA in providing Custom Product services to 
customers will be paid by those customers using the services.
    WAPA may, at its discretion, extend the commitment dates for the 
Base Resource and/or Custom Products.
    WAPA will manage an exchange program to allow all customers to 
fully and efficiently use their power allocations. Any power allocated 
by WAPA to a customer that cannot be used on a real-time basis due to 
that customer's load profile will be offered under this program to 
other customers. The exchange program will be developed in 
collaboration with the customers.
    Any unused resources may be marketed for periods of time as 
determined by WAPA, and may be marketed outside the primary marketing 
area. Such sales may be to any entity (preference or non-preference), 
under any terms, conditions, rates, or charges determined solely by 
WAPA.

IV. Resource Extensions and Resource Pool Allocations

    WAPA will initially provide 98 percent of its available power 
resources to existing customers and establish a resource pool with the 
remaining power resources for new allocations. Starting on January 1, 
2040, WAPA will reduce the then-existing customers' allocations by 1 
percent to develop the 2040 resource pool.
A. Extension for Existing Customers
    Starting January 1, 2025, existing customers will have a right to 
purchase 98 percent of their current Base Resource percentage amount; 
except as provided below:
    1. In the event that an existing customer(s) surrenders some or all 
of its allocation prior to 2025, that percentage, up to 2 percent of 
the total Base Resource, will be returned to the existing customers on 
a pro rata basis.
    2. In January 2024, WAPA will compare all existing customers' 
allocations to their loads. WAPA will use the average Base Resource MWh 
annual generation and the customers' previous 5 years energy 
consumption to compare allocations to loads. No customer should have an 
allocation greater than its load. If, after the comparison, WAPA 
believes a customer(s) has an allocation greater than its load, WAPA 
will consult with the customer(s) to determine if the allocation is, in 
fact, larger than its load. If WAPA determines the allocation is too 
large, WAPA will reduce that customer(s) allocation to 98 percent of 
its load.
    3. Starting on January 1, 2040, WAPA will reduce all customers' 
allocations, including 2025 Resource Pool customers, by an additional 1 
percent to create the 2040 Resource Pool. WAPA will follow the steps 
listed in IV.A.1. and IV.A.2. in January 2039 when creating the 2040 
Resource Pool.
B. Resource Pool Allocations
    WAPA will establish a resource pool by reserving a portion of the 
power available after 2024 for allocation to eligible preference 
entities and existing customers. A second resource pool will be 
established for service starting on January 1, 2040. Allocations from 
the resource pools will be determined through a separate public process 
at a later date.
1. Resource Pool Amount
    The 2025 Resource Pool will initially consist of 2 percent of the 
power resources available after 2024, and the 2040 Resource Pool will 
initially consist of 1 percent of the power resources available after 
2039. Should any Base Resource become available because of Sections 
IV.A.1., IV.A.2., or IV.A.3., above, WAPA will include the additional 
Base Resource in the appropriate resource pool. WAPA will, at its 
discretion, allocate a percentage of the resource pools to applicants 
that meet the Eligibility and Allocation Criteria.
2. Eligibility Criteria
    WAPA will apply the following Eligibility Criteria to all 
applicants seeking a resource pool allocation under the Marketing Plan:
    a. 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.
    b. Applicants should be located within SNR's primary marketing area 
(map of marketing area available upon request). If SNR's power 
resources are not fully subscribed, WAPA may market its resource 
outside the primary marketing area.
    c. Applicants that require power for their own use must be ready, 
willing, and able to receive and use Federal power.
    d. Applicants that provide retail electric service must be ready, 
willing, and able to receive and use the Federal power to provide 
electric service to their customers, not for resale to others.
    e. Applicants must submit an application in response to the Call 
for Resource Pool Applications issued by WAPA in a separate Federal 
Register notice. The notice will include the deadline for receipt of 
those applications.
    f. Native American applicants must be a Native American tribe as 
defined in the Indian Self Determination Act of 1975 (25 U.S.C. 5304).
    g. WAPA generally will not allocate power to applicants with loads 
of less than 1 MW; however, allocations to applicants with loads which 
are at least 500 kilowatts may be considered, provided the loads can be 
aggregated with other allottees' loads to schedule and deliver to a 
minimum load of 1 MW.

[[Page 38683]]

3. Allocation Criteria
    The following Allocation Criteria will apply to all applicants 
receiving a 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 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 have the right to purchase power from WAPA only 
upon the execution of an electric service contract between WAPA and the 
allottee, and satisfaction of all conditions in that contract.
    d. All customers, including those receiving an allocation from the 
2025 Resource Pool, will be subject to the 2040 Resource Pool 
adjustment.
    e. Eligible Native American applicants will receive greater 
consideration for an allocation of up to 65 percent of their total 
energy load in the calendar year prior to the Call for Applications, as 
authorized by 25 U.S.C. 3505.

V. General Criteria and Contract Principles

    The following criteria and contract principles apply to all 
contracts executed under the Marketing Plan, except that certain 
criteria may not apply to contracts for first preference customers (see 
Section VI.):
    A. Electric service contracts shall be executed within 6 months of 
a contract offer, unless otherwise agreed to in writing by WAPA.
    B. Allocation percentages shall be subject to adjustment.
    C. All power supplied by WAPA will be delivered pursuant to a 
scheduling arrangement.
    D. Customers will be required to pay for their percentage of the 
Base Resource, regardless of whether they can actually use the power.
    E. Customers must pay for all charges associated with the products 
and services provided, including charges associated with ancillary 
services, Custom Products, and transmission. Those charges will be 
passed on to the customer(s) contracting for the product or service.
    F. WAPA will develop rate schedules for services provided under the 
Marketing Plan. Such rates will be developed through a separate public 
process.
    G. Customers must pay all applicable rates and charges in the 
manner and within the time prescribed in the contract.
    H. A written commitment to the Custom Product will be required on 
or before January 1, 2023. WAPA may extend the final commitment dates 
for the Custom Product.
    I. Contracts will include clauses specifying criteria that 
customers must meet on a continuous basis to be eligible to receive 
electric service from WAPA.
    J. Upon request, WAPA may provide, or assist each new and existing 
customer in obtaining, transmission arrangements for delivery of power 
marketed under the Marketing Plan; nonetheless, each entity is 
ultimately responsible for obtaining its own delivery arrangements for 
its load. Transmission service over the CVP system will be provided in 
accordance with Section VII. of this Marketing Plan.
    K. Contracts shall provide for WAPA to furnish electric service 
beginning either January 1, 2025, or January 1, 2040, and continuing 
through December 31, 2054.
    L. Specific products and services may be provided for periods of 
time as agreed to in the electric service contract.
    M. Contracts shall incorporate WAPA's standard provisions, policies 
and procedures for electric service contracts, integrated resource 
plans, and GPCP, as determined by WAPA. WAPA will exclude Section 11 of 
the GPCP from the electric service contracts and, instead, will include 
language developed in collaboration with the customers that clearly 
defines the customers' ability to terminate their electric service 
contracts after certain rate processes.
    N. Contracts will include a clause that allows WAPA to reduce or 
rescind a customer's allocation percentage, upon 90 days' notice, if 
WAPA determines that (1) the customer is not using this power to serve 
its own loads, except as otherwise specified in Section III.; or (2) 
the allocation amounts are consistently greater than the customer's 
maximum load.
    O. Any power 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.
    P. Contracts will include a clause providing for WAPA to adjust the 
customers' allocation percentage for the 2040 Resource Pool.
    Q. Contracts may include a clause providing for alternative funding 
arrangements, including Net Billing, Bill Crediting, Reimbursable 
Financing, and advance payment.

VI. First Preference Entitlement and Allocation

    The Trinity River Division Act and the New Melones Project 
provisions of the Flood Control Act of 1962 (Acts) specify that 
contracts for the sale and delivery of the additional electric energy, 
available from the CVP power system as a result of the construction of 
the plants authorized by these Acts and their integration into the CVP 
system, shall be made in accordance with preferences expressed in 
Reclamation Laws. These Acts also provide that a first preference of up 
to 25 percent of the additional energy shall be given, under 
Reclamation Law, to preference customers in the counties of origin 
(Trinity, Tuolumne, and Calaveras), for use in those counties, who are 
ready, willing, and able to enter into contracts for the energy.
    WAPA will calculate and allocate the Maximum Entitlements of First 
Preference Customers (MEFPC), which is the maximum amount of energy 
available to first preference customers/entities, in accordance with 
the following:
    A. The MEFPC will be calculated separately for the New Melones 
Project, Calaveras and Tuolumne Counties, and the Trinity River 
Division (TRD), Trinity County (first preference projects). To 
determine the 25 percent of additional energy made available to the CVP 
as a result of the construction of each of these projects, WAPA will 
use the average of the previous 20 years of historical annual 
generation. The TRD MEFPC includes generation from Trinity, Carr, and 
Spring Creek Powerplants and a portion of the Keswick Powerplant 
generation. Based on the most current information available, this 
calculation results in an estimated MEFPC of 122,800 MWh available from 
the New Melones Project, and an estimated MEFPC of 361,500 MWh 
available from the TRD. WAPA will calculate the MEFPC on June 1, 2024, 
to be applicable January 1, 2025. WAPA will recalculate the MEFPC every 
5 years thereafter.
    B. Upon recalculation, if the MEFPC from a first preference project 
is 10 percent above or below the currently applicable MEFPC from that 
first preference project, the MEFPC will be adjusted to reflect that 
increase or decrease. WAPA will notify affected first preference 
customers at least 6 months before making an adjustment to the MEFPC. 
If recalculation reduces the MEFPC to an amount less than the load 
previously served, WAPA may, upon request and at its discretion, make 
purchases necessary to replace that

[[Page 38684]]

amount of power no longer available. The costs for all such purchases 
made on behalf of a first preference customer will be passed on to that 
first preference customer.
    C. An allocation made to a first preference customer/entity under 
the Marketing Plan will be based on the power requirements of that 
first preference customer/entity. The sum of allocations of first 
preference power, including losses, shall not exceed the MEFPC from 
each first preference project, or a county of origin's share of the 
MEFPC, except as allowed under Section VI.G. below.
    D. WAPA will provide full requirements service as described below 
to first preference customers. The first preference customer will be 
responsible for transformation and transmission losses to the first 
preference customer delivery point. Transmission losses shall include 
losses for CVP transmission and third-party transmission.
    WAPA will provide the first preference customer with its full power 
requirements (capacity and energy) up to its right to the MEFPC at the 
Base Resource rate. If there is more than one first preference customer 
in a county of origin, or a first preference entity in that county 
makes a request for power, WAPA reserves the right to establish a 
maximum amount of power available to each first preference customer 
from the MEFPC. Payment for full requirements service will be based on 
usage.
    E. A first preference entity may exercise its right to use a 
portion of the MEFPC by providing written notice to WAPA at least 18 
months prior to the anniversary date of the first preference project 
located in its county. The anniversary date is the successive fifth 
year anniversary of the date the Secretary of the Interior declared the 
availability of power from the powerplants in the counties of origin. 
New applications for service to begin on January 1, 2025, must be 
received 18 months prior to January 1, 2022 (i.e., July 1, 2020), for 
Trinity County and 18 months prior to April 5, 2022 (i.e., October 5, 
2020), for Calaveras and Tuolumne Counties. Other anniversary years 
applicable to this Marketing Plan are 2027, 2032, 2037, 2042, 2047, and 
2052.
    F. If the request of a first preference customer/entity for power, 
including adjustment for losses, is greater than the remaining MEFPC 
from that county's first preference project, then WAPA will allocate 
the remaining MEFPC to the first preference customer/entity first 
making a request for a power allocation or a justified increase in its 
allocation percentage.
    G. Power allocated to first preference customers/entities in 
Tuolumne and Calaveras Counties will be subject to the following 
additional conditions:
    1. Tuolumne and Calaveras Counties shall each be entitled to one-
half of the New Melones Project MEFPC.
    2. If first preference customers in either Tuolumne County or 
Calaveras County are not using their county's full one-half share, and 
a first preference customer/entity in the other county requests power 
in an amount exceeding that county's one-half share, then WAPA will 
allocate the unused power, on a withdrawable basis, to the requesting 
first preference customer/entity. Such power may be withdrawn for use 
by a first preference customer/entity in the county not using its full 
one-half share upon 6 months' written notice from WAPA.
    H. Trinity Public Utilities District is currently the sole 
recipient of the TRD's first preference rights.
    I. Transmission service will be provided in accordance with 
applicable laws and Section VII. of this Marketing Plan.
    J. For planning purposes, first preference customers may be 
required to provide forecasts and other information required by WAPA as 
set forth in the electric service contract.
    K. The general criteria and contract principles set forth in 
Sections V.A., C. through I., K., M., and O. of this Marketing Plan 
will apply to first preference customers.

VII. Transmission Service

    Allottees and customers must secure necessary transmission service 
to deliver Federal power. WAPA will provide transmission service to 
deliver the Base Resource over the CVP transmission system. WAPA will 
work with allottees and customers to secure bundled or unbundled 
transmission services as appropriate beyond its CVP transmission system 
in conjunction with its power sales in a manner consistent with FERC 
orders, legislated mandates, or CAISO agreements. While WAPA will work 
with allottees and customers, it is the allottees' and customers' 
obligations to secure all necessary transmission service.
    Generally, WAPA will market surplus transmission capacity on the 
CVP and COTP available under WAPA's OATT. The legislation authorizing 
the PACI (16 U.S.C. 837g) provides for the Secretary of Energy to 
market surplus available transmission capacity on the PACI at equitable 
rates to aid and benefit the CVP. WAPA will determine the use of its 
transmission resources concurrently with further development of the 
products and services under this Marketing Plan. Specific terms and 
conditions for surplus transmission sales will be provided for in 
future service agreements. WAPA will develop transmission rates under a 
separate proceeding.

VIII. Changes in the Electric Utility Industry

    WAPA recognizes that there have been, and continue to be, 
significant 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.

Authorities

    WAPA developed this Marketing Plan in accordance with its power 
marketing authorities pursuant to the Department of Energy Organization 
Act (42 U.S.C. 7101, et seq.); the Reclamation Act of June 17, 1902 
(ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent 
enactments, particularly Section 9(c) of the Reclamation Project Act of 
1939 (43 U.S.C. 485h(c)); and other acts specifically applicable to the 
projects involved.

Regulatory Procedure Requirements

Review Under the Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
3501, et seq.), WAPA has received approval from the Office of 
Management and Budget for the collection of customer information in 
this rule, under control number 1910-5136, which expires on September 
30, 2017.

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires preparation of an initial regulatory flexibility analysis 
whenever an agency is required by 5 U.S.C. 553, or any other law, to 
publish general notice of proposed rulemaking for any proposed rule. A 
final regulatory flexibility analysis is required whenever the agency 
promulgates a final rule under 5 U.S.C. 553, after being required by 
that section or any other law to publish a general notice of proposed 
rulemaking. WAPA has determined that the analytical requirements of the 
Regulatory Flexibility Act do not apply to this rulemaking because it 
is a

[[Page 38685]]

rulemaking involving services applicable to public property.

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) (42 
U.S.C. 4321-4370), Council on Environmental Quality NEPA implementing 
regulations (40 CFR parts 1500-1508), and DOE NEPA implementing 
regulations (10 CFR part 1021), WAPA completed a Categorical Exclusion 
(CX). Since WAPA is reallocating its existing resources and is not 
planning to increase its generation or transmission under this 
Marketing Plan, a CX is the appropriate level of environmental review.

Determination Under Executive Order 12866

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

    Dated: July 6, 2017.
Mark A. Gabriel,
Administrator.
[FR Doc. 2017-17210 Filed 8-14-17; 8:45 am]
 BILLING CODE 6450-01-P



                                                                               Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices                                         38675

                                                  significant environmental impacts. This                 period. Two public meetings will be                   DEPARTMENT OF ENERGY
                                                  is because Super Hornet flight training                 held from 5:00 p.m. to 7:00 p.m. on:
                                                  is nearly identical to Hornet flight                       1. Tuesday, August 29, 2017, at the                Western Area Power Administration
                                                  training. Consequently, there would be                  Columbian Club, 1236 Prosperity Road,
                                                  little to no change to the type and                                                                           2025 Power Marketing Plan
                                                                                                          Virginia Beach, Virginia 23451.
                                                  quantity of flight training operations at                                                                     AGENCY: Western Area Power
                                                  NAS Oceana and NALF Fentress as a                          2. Wednesday, August 30, 2017, at the
                                                                                                          Hickory Ruritan Club, 2752 Battlefield                Administration, DOE.
                                                  result of the transition. The analysis also                                                                   ACTION: Notice of final plan.
                                                  showed there would be only minor                        Boulevard South, Chesapeake, Virginia
                                                  noise increases in a few areas; however,                23322.                                                SUMMARY:   The Department of Energy
                                                  no increases would be greater than 1.6                     The public meetings will be open                   (DOE), Western Area Power
                                                  decibels (dB) Day-Night Average Sound                   house sessions with informational                     Administration (WAPA), announces its
                                                  Level (DNL). A 3 dB DNL or less change                  poster stations. Members of the public                final 2025 Power Marketing Plan
                                                  in noise levels is barely perceptible to                will have the opportunity to ask                      (Marketing Plan) for the Sierra Nevada
                                                  the human ear. No significant                           questions of DoN representatives and                  Region (SNR). On December 31, 2024,
                                                  environmental impacts were identified                   subject matter experts. Attendees will                all of SNR’s long-term power sales
                                                  for the other resources analyzed in the                 also be able to provide verbal comments               contracts will expire. This notice
                                                  EA, including air quality, public health                to a stenographer or submit written                   responds to comments received on the
                                                  and safety, environmental justice, land                 comments during the public meetings.                  Proposed 2025 Power Marketing Plan
                                                  use, biological resources, and cultural                 In addition to participating in the public            (Proposed Plan) and sets forth the
                                                  resources. Accordingly, the DoN                         meetings, members of the public may                   Marketing Plan. The Marketing Plan
                                                  announces to public the redesignation                   submit comments via the U.S. Postal                   specifies the terms and conditions
                                                  of the EIS as an EA for this action.                    Service using the mailing address                     under which WAPA will market power
                                                     With this redesignation of the EIS as                identified in the contact information                 from the Central Valley Project (CVP)
                                                  an EA, the DoN is initiating a 30-day                   later in this notice or electronically                and the Washoe Project beginning
                                                  public review and comment period on                     using the project Web site (http://                   January 1, 2025. This Marketing Plan
                                                  the Draft EA beginning on August 16,                    www.oceanastrikefighter.com). All                     supersedes all previous marketing plans
                                                  2017 and ending on September 15,                        comments made at the public meetings,                 for these projects. WAPA will offer new
                                                  2017. The Draft EA is available at the                  or postmarked or received online by                   contracts for the sale of power to
                                                  following link: http://                                 September 15, 2017, will become part of               existing customers as more fully
                                                  www.oceanastrikefighter.com. A printed                  the public record and be considered in                described in the Marketing Plan.
                                                  copy and an electronic copy of the Draft                the Final EA.                                         Entities who wish to apply for a new
                                                  EA have also been placed in the                            The DoN may release the city, state,               allocation of power from WAPA, and
                                                  following libraries:                                    and 5-digit zip code of individuals who               who meet the criteria defined in the
                                                     1. Great Neck Area Library, 1251                     provide comments during the Draft EA                  Marketing Plan, should submit formal
                                                  Bayne Drive, Virginia Beach, Virginia                   public review and comment period.                     applications. Application procedures
                                                  23454.                                                  However, the names, street addresses,                 will be set forth in the Call for 2025
                                                     2. Meyera E. Oberndorf Central                       email addresses and screen names,                     Resource Pool Applications in a
                                                  Library, 4100 Virginia Beach Boulevard,                 telephone numbers, or other personally                separate Federal Register notice to be
                                                  Virginia Beach, Virginia 23452.                         identifiable information of those                     published after the Marketing Plan is
                                                     3. Oceanfront Area Library, 700                                                                            applicable.
                                                                                                          individuals will not be released by the
                                                  Virginia Beach Boulevard, Virginia
                                                                                                          DoN unless required by law. Prior to                  DATES: The Marketing Plan will become
                                                  Beach, Virginia 23451.
                                                     4. Princess Ann Area Library, 1444                   each commenter making verbal                          applicable September 14, 2017 in order
                                                  Nimmo Parkway, Virginia Beach,                          comments to the stenographer at the                   to make power allocations and complete
                                                  Virginia 23456.                                         public meetings the commenter will be                 the other processes necessary to begin
                                                     5. Wahab Public Law Library, 2425                    asked whether he or she agrees to a                   providing services on January 1, 2025.
                                                  Nimmo Parkway, Judicial Center, Bldg                    release of their personally identifiable              FOR FURTHER INFORMATION CONTACT: Ms.
                                                  10B, Virginia Beach, Virginia 23456.                    information. Those commenters                         Sonja Anderson, Vice President of
                                                     6. Windsor Wood Area Library, 3612                   submitting written comments, either                   Power Marketing, Sierra Nevada
                                                  South Plaza Trail, Virginia Beach,                      using comment forms or via the project                Customer Service Region, Western Area
                                                  Virginia 23452.                                         Web site, will be asked whether they                  Power Administration, 114 Parkshore
                                                     7. Chesapeake Central Library, 298                   authorize release of personally                       Drive, Folsom, CA, 95630–4710, by
                                                  Cedar Road, Chesapeake, Virginia                        identifiable information by checking a                email at sanderso@wapa.gov, or by
                                                  23322.                                                  ‘‘release’’ box.                                      telephone (916) 353–4421. Information
                                                     8. Greenbrier Library, 1214 Volvo                    FOR FURTHER INFORMATION CONTACT:   NAS                on development of the Marketing Plan
                                                  Parkway, Chesapeake, Virginia 23320.                    Oceana Strike Fighter Transition EA                   can be found at https://www.wapa.gov/
                                                     The DoN will hold public meetings to                                                                       regions/SN/PowerMarketing/Pages/
                                                                                                          Project Manager (Code EV21/TW); Naval
                                                  inform the public and answer questions                                                                        2025-Program.aspx.
                                                                                                          Facilities Engineering Command
                                                  about the Draft EA and the proposed                                                                           SUPPLEMENTARY INFORMATION:
                                                                                                          Atlantic, 6506 Hampton Boulevard,
                                                  action as well as provide opportunities
                                                                                                          Norfolk, Virginia 23508.                              Development of the 2025 Power
                                                  for the public to comment on the Draft
mstockstill on DSK30JT082PROD with NOTICES




                                                  EA. Federal, state, and local agencies                    Dated: August 7, 2017.                              Marketing Plan
                                                  and officials, Native American Indian                   A.M. Nichols,                                           WAPA currently markets power from
                                                  Tribes and Nations, and interested                      Lieutenant Commander, Judge Advocate                  the CVP and the Washoe Project under
                                                  organizations and individuals are                       General’s Corps, U.S. Navy, Federal Register          long-term contracts to approximately 80
                                                  encouraged to provide comments in                       Liaison Officer.                                      preference customers in northern and
                                                  person at the public meetings or in                     [FR Doc. 2017–17142 Filed 8–14–17; 8:45 am]           central California and Nevada. On
                                                  writing during the 30-day public review                 BILLING CODE 3810–FF–P                                December 31, 2024, all of SNR’s long-


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00007   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                  38676                                 Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices

                                                  term power sales contracts will expire.                                  capability of 3.65 MW with an estimated                                 WAPA’s transmission lines and receive
                                                  This notice sets forth WAPA’s                                            annual generation of 10,000 MWh.                                        service over transmission lines owned
                                                  Marketing Plan and responds to                                              To deliver CVP power, WAPA owns                                      by other utilities. The Washoe Project is
                                                  comments received on the Proposed                                        the 94 circuit-mile Malin-Round                                         not directly connected to the CVP.
                                                  Plan. The Marketing Plan specifies the                                   Mountain 500-kilovolt (kV)                                              Sierra Pacific Power Company (SPPC)
                                                  terms and conditions under which                                         transmission line (an integral part of the                              owns and operates the only
                                                  WAPA will market power from CVP and                                      Pacific AC Intertie (PACI)), the 84                                     transmission system available for access
                                                  the Washoe Project beginning January 1,                                  circuit-mile Los Banos-Gates No. 3 500-                                 to the Washoe Project.
                                                  2025. This Marketing Plan supersedes                                     kV transmission line, 803 circuit miles
                                                  all previous marketing plans for these                                   of 230-kV transmission line, 7 circuit                                     The following table lists a range of
                                                  projects.                                                                miles of 115-kV transmission line, and                                  estimated CVP and Washoe Project
                                                     CVP power facilities include 11                                       approximately 63 circuit miles of 69-kV                                 power resources and adjustments. This
                                                  powerplants with a maximum operating                                     and below transmission line. WAPA                                       table is for informational purposes only
                                                  capability of about 2,113 megawatts                                      also has partial ownership in the 342-                                  and does not imply the power resources
                                                  (MW) and an estimated average annual                                     mile California-Oregon Transmission                                     and adjustments shown will be the
                                                  generation of 4.6 million megawatthours                                  Project (COTP) 500-kV transmission                                      actual amounts available or adjustments
                                                  (MWh). The Washoe Project, Stampede                                      line. Many of WAPA’s existing                                           applied.
                                                  Powerplant has a maximum operating                                       customers have no direct access to

                                                                      Estimated CVP power resources and adjustments prior to first preference entitlements and base resource allocations

                                                                                                   Power resources/adjustment                                                                                      Range/value

                                                  Annual energy generation .............................................................................................................          2,400,000–8,600,000 MWh.
                                                  Monthly energy generation ............................................................................................................          87,000–1,100,000 MWh.
                                                  Monthly capacity ............................................................................................................................   360–1,900 MW.
                                                  Annual project use ........................................................................................................................     334,000 MWh–1,670,000 MWh.
                                                  Monthly project use .......................................................................................................................     10,000–180,000 MWh.
                                                  Monthly project use (on peak) ......................................................................................................            30–360 MW.
                                                  Monthly maintenance ....................................................................................................................        0–300 MW.
                                                  Reserves—hydro ...........................................................................................................................      minimum 5% of monthly capacity.
                                                  CVP transmission and transformation losses from the generator bus to a 230–kV load bus .....                                                    1.6%.



                                                     WAPA began developing the                                             WAPA’s responses to those comments.                                        Response: WAPA has modified the
                                                  Marketing Plan with a series of three                                    Comments are grouped by subject and                                     definition of Base Resource in the
                                                  informal public information meetings.                                    paraphrased for brevity. Specific                                       Marketing Plan to clarify that power
                                                  These meetings helped WAPA identify                                      comments are used for clarification                                     includes capacity and energy.
                                                  pertinent issues, including contract                                     where necessary.                                                        Transmission is not an attribute of the
                                                  provisions and methodologies for                                                                                                                 Base Resource. It is the customers’
                                                                                                                           I. Marketing Plan Term
                                                  creating resource pools.                                                                                                                         responsibility to secure any necessary
                                                     WAPA subsequently published its                                          Comment: All commenters supported                                    transmission service; however, WAPA
                                                  Proposed Plan (81 FR 27433, dated May                                    the 30-year term; however, several                                      will provide transmission service to
                                                  6, 2016). WAPA held a public                                             stated without some additional                                          deliver the Base Resource on the CVP
                                                  information forum on June 1, 2016, to                                    balancing of the termination provisions                                 system. The definition continues to
                                                  present the Proposed Plan and answer                                     and/or the rate procedures, the                                         include ancillary services reserves, and
                                                  questions. On July 12, 2016, WAPA held                                   additional term could result in cost or                                 environmental attributes.
                                                  a public comment forum to accept                                         risk exposure that negatively impacts                                      Comment: A commenter stated it
                                                  verbal comments, and accepted written                                    Base Resource customers. Additionally,                                  understands that Project Use, First
                                                  comments from the public through                                         Base Resource customers will be                                         Preference, maintenance, reserves, and
                                                  August 4, 2016. WAPA considered the                                      exposed to increased risks due to the                                   system and transmission losses are
                                                  comments received in developing the                                      take-or-pay nature of the power                                         subtracted from the CVP generation
                                                  Marketing Plan.                                                          contracts unless WAPA includes                                          prior to determining the Base Resource
                                                  Responses to Comments Received on                                        reduction and early termination                                         available. The commenter asked if there
                                                  the Notice of Proposed Plan                                              provisions.                                                             were any other existing or new
                                                                                                                              Response: Please see WAPA’s                                          obligations on the CVP resource that
                                                     During the public consultation and
                                                                                                                           response under Termination and                                          should be explicitly identified in the
                                                  comment period, WAPA received 13
                                                                                                                           Reduction Provisions for a response to                                  Marketing Plan.
                                                  letters commenting on the Proposed
                                                  Plan. In addition, six customers and                                     the reduction and early termination                                        Response: At this time, there are no
                                                  interested stakeholder representatives                                   portion of these comments.                                              additional obligations on CVP power
                                                  commented during the July 12, 2016,                                                                                                              resources other than those listed.
                                                                                                                           II. Marketable Resource—Base Resource
                                                  public comment forum. In preparing the                                                                                                              Comment: A commenter stated WAPA
mstockstill on DSK30JT082PROD with NOTICES




                                                  Marketing Plan, WAPA reviewed and                                           Comment: Two commenters stated                                       should determine the amount of Base
                                                  considered all comments received                                         WAPA should explicitly define the Base                                  Resource available in an equitable
                                                  during the public consultation and                                       Resource and list all applicable                                        manner, and not by which balancing
                                                  comment period.                                                          attributes including energy, capacity,                                  authority area the customers are located.
                                                     The following is a summary of the                                     ancillary services, reserves,                                           WAPA can improve the equity by
                                                  comments received during the                                             transmission and environmental                                          considering all aspects of its CVP
                                                  consultation and comment period, and                                     attributes.                                                             portfolio of assets, including generation,


                                             VerDate Sep<11>2014        17:15 Aug 14, 2017         Jkt 241001      PO 00000       Frm 00008       Fmt 4703       Sfmt 4703      E:\FR\FM\15AUN1.SGM       15AUN1


                                                                               Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices                                          38677

                                                  capacity, ancillaries, and transmission                 and services will be on a pass-through                IV. Exchange Program
                                                  assets.                                                 basis. WAPA will not know what other                    Comment: A commenter supported
                                                     Response: The Marketing Plan defines                 products or services it may provide                   the hourly and seasonal exchange
                                                  Base Resource and allocates Base                        until those services are requested, nor               programs provided that they are
                                                  Resource to each preference customer                    will WAPA know the cost of any                        administered and implemented fairly
                                                  based on the preference customer’s                      Custom Products until those services are              whereby all who can share in the
                                                  percentage. WAPA does not consider a                    determined, along with the number of
                                                                                                                                                                benefits of Base Resource can do so
                                                  customer’s balancing authority area                     customers participating in those
                                                                                                                                                                without taking on additional burdens.
                                                  when determining the amount of Base                     services, and other relevant parameters.
                                                                                                                                                                  Response: WAPA intends to develop
                                                  Resource available.                                     At such time as the pricing, terms and
                                                     Comment: A commenter encouraged                                                                            the exchange program with input from
                                                                                                          conditions related to Custom Products is
                                                  greater efforts by WAPA and the U.S.                                                                          the customers and the public to
                                                                                                          no longer considered proprietary and/or
                                                  Department of the Interior, Bureau of                                                                         maximize the benefits and lessen any
                                                                                                          market sensitive, WAPA may provide it
                                                  Reclamation (Reclamation) to consider                                                                         burdens associated with exchange
                                                                                                          upon request.
                                                  measures to increase the value and                         Comment: A commenter asked WAPA                    program participation. The exchange
                                                  flexibility of the Base Resource.                       to clarify how it will carry out the                  program is an optional program.
                                                     Response: WAPA will continue to                      collaborative process to ensure all                   V. Extension of the Resource
                                                  work with Reclamation to maximize the                   stakeholder perspectives are considered.
                                                  value of the Base Resource.                                Response: Custom Products are any                    Comment: Several commenters
                                                                                                          product or service requested by an                    support extending 98 percent of the
                                                  III. Marketable Resource—Custom                                                                               Base Resource to existing customers.
                                                                                                          individual customer or group of
                                                  Products                                                                                                        Response: WAPA will extend 98
                                                                                                          customers. These products or services
                                                     Comment: Several commenters                          will be mutually negotiated between a                 percent of the Base Resource to existing
                                                  supported offering Custom Products.                     specific customer or a specific group of              customers as specified in the Marketing
                                                  The commenters stated that WAPA’s                       customers and WAPA.                                   Plan.
                                                  commitment to explore requested                            Comment: A commenter stated that,                    Comment: A commenter stated WAPA
                                                  Custom Products provides needed                         to the extent the Custom Products                     should allow existing customers to take
                                                  certainty and possible additional                       offered reduce the value of the Base                  less than 98 percent of their current
                                                  opportunities for customers to explore                  Resource to other preference customers                Base Resource percentage.
                                                  new uses for the Base Resource and                      by reducing the availability of                         Response: WAPA will allow an
                                                  transmission assets. The commenters                     electricity, capacity, reserves, ancillary            existing customer to reduce its base
                                                  further stated that WAPA’s process for                  services, transmission and/or                         resource percentage allocation under
                                                  establishing Custom Products involves                   environmental attributes, the                         this Marketing Plan with at least six
                                                  appropriate customer input, and ensures                 beneficiary should pay for the value of               months’ written notice to WAPA prior
                                                  that WAPA’s other customers may even                    the displaced Base Resource. WAPA                     to January 1, 2025.
                                                  benefit indirectly from the offering of                 should modify the Marketing Plan to                     Comment: A commenter supported
                                                  Custom Products. The commenters also                    clearly define the Custom Products that               limiting allocations to no more than 100
                                                  stated that Custom Products improve                     could reduce power and transmission                   percent of load, but suggested using
                                                  the value of the Base Resource to all                   available for Base Resource generation                consistent data to determine load
                                                  customers. The customers support all                    before all customers are asked to                     between existing and new customers.
                                                  costs incurred being paid by those                      execute a contract in 2020.                             Response: A customer should not
                                                  customers contracting for such Custom                      Response: Custom Products do not                   have an allocation larger than its load.
                                                  Products.                                               include the Base Resource or CVP                      Reviewing a 5-year period of energy
                                                     Response: WAPA will continue to                      generation. Custom Products are meant                 consumption for existing customers is
                                                  offer Custom Products with all costs                    to enhance the Base Resource for those                appropriate so an existing customer is
                                                  incurred paid by those customers                        customers that may need additional                    not unduly harmed due to unusual
                                                  contracting for those products and/or                   services from WAPA to maximize the                    factors (drought, environmental
                                                  services.                                               benefit from the Base Resource. WAPA                  impacts, etc.) that may affect their load
                                                     Comment: A commenter encouraged                      provides transmission with the Base                   for just one year.
                                                  WAPA to identify the Custom Products                    Resource; therefore, Custom Products do               VI. Resource Pools
                                                  being offered to customers, including                   not affect the availability of
                                                  the product terms and cost, and to                      transmission for Base Resource delivery.                 Comment: Several commenters
                                                  increase the visibility and availability of                Comment: If WAPA is providing a                    support creating the resource pools; the
                                                  the price and terms and conditions of                   service or facility for voltage support or            calculation methodology to create the
                                                  Custom Products. The commenter                          some similar benefit to a specific entity,            resource pools; and the 2 and 1 percent
                                                  suggested that WAPA provide periodic                    according to WAPA’s Open Access                       resource pools in 2025 and 2040,
                                                  reports on the Custom Products used by                  Transmission Tariff (OATT), the costs                 respectively, which are sufficient to
                                                  preference customers, including data on                 for such a project must be paid by that               broaden the preference customer base
                                                  prices, terms, and conditions for all                   individual entity. If WAPA does not                   without overly penalizing existing
                                                  products.                                               follow its own OATT and allocates                     customers.
                                                     Response: WAPA anticipates it will                   these costs to other entities, these other               Response: WAPA acknowledges the
                                                  continue to offer Full Load, Variable                   entities must be authorized an off-ramp.              comment.
mstockstill on DSK30JT082PROD with NOTICES




                                                  Resource, and Scheduling Coordinator                       Response: All costs associated with                   Comment: Two commenters stated the
                                                  Services. WAPA is open to assisting                     providing Custom Products are passed                  Marketing Plan should have a provision
                                                  customers with their electric service                   to those customers requesting Custom                  to address how WAPA will manage
                                                  needs under a Custom Product contract                   Products. If a Custom Product involves                returned allocations from customers that
                                                  if WAPA is able to do so. Custom                        services under WAPA’s OATT, the                       either do not opt for new power
                                                  Products will initially be offered for 5-               customer will take and pay for those                  contracts or exercise early termination.
                                                  year terms. The cost for such products                  services under the OATT.                              A commenter recommends that


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00009   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                  38678                        Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices

                                                  surrendered or excess allocations                       allottees or increases in existing                    customers’ socio-economic conditions
                                                  (where load exceeds allocations) be                     customers’ allocations. Existing                      or technical issues.
                                                  offered to existing customers on a pro                  customers may apply for additional                       Response: In an informal public
                                                  rata basis. Another commenter supports                  Base Resource.                                        information meeting, WAPA proposed
                                                  returning all surrendered allocations to                   Comment: A commenter said the                      only existing customers whose
                                                  existing customers, even if that amount                 allocation methodology states the                     allocation meets less than 25 percent of
                                                  is beyond 2 percent.                                    allocation of Base Resource ‘‘will be                 their load could apply for an additional
                                                     Response: The Marketing Plan states                  based on applicant’s load during the                  allocation of Base Resource. Several
                                                  that surrendered allocations will be                    calendar year prior to the Call for                   stakeholders stated concerns with that
                                                  returned to existing customers on a pro                 Applications or the amount requested,                 proposal. Based on those concerns, the
                                                  rata basis, up to 100 percent of each                   whichever is less.’’ The commenter                    Marketing Plan does not contain a
                                                  existing customer’s pre-2025                            advocated establishing this load ratio                threshold. Any existing customer can
                                                  allocations. WAPA will not allocate                     share benchmark to determine which                    apply for a resource pool allocation.
                                                  Base Resource above an existing                         existing customers’ Base Resource
                                                                                                                                                                VIII. General Criteria and Contract
                                                  customer’s pre-2025 allocation unless                   allocations exceed their load ratio share
                                                                                                                                                                Principles
                                                  that existing customer applies for an                   and subjecting only those excess
                                                  additional allocation because some                      allocations to the 2 percent reduction to                Comment: Section V.B. states that
                                                  existing customers may neither need nor                 establish the resource pool. Those                    ‘‘Allocation percentages are subject to
                                                  want more Base Resource. Any Base                       existing customers whose Base Resource                adjustment.’’ A commenter stated the
                                                  Resource available after returning                      allocations fall below the benchmark                  circumstances of such an adjustment
                                                  existing customers to 100 percent of                    would not be subject to the 2 percent                 need to be specified so customers have
                                                  their pre-2025 allocations will be                      reduction and would also be eligible for              an understanding of the nature of their
                                                  included in the resource pool. Any Base                 participation in the resource pool.                   commitment to an allocation. WAPA
                                                  Resource available from excess                             Response: WAPA considered several                  should clarify that Base Resource
                                                  allocations, which WAPA believes will                   different methodologies to create the                 percentage adjustments will only be
                                                  be minimal, will also be included in the                Resource Pools, including reducing only               made in very limited circumstances,
                                                  resource pool. Existing customers                       a subset of existing customers’                       such as by customer termination or
                                                  interested in receiving additional Base                 allocations. After reviewing the                      reduction, or when a customer no longer
                                                  Resource are encouraged to apply for a                  comments received during informal                     exists.
                                                  resource pool allocation. This same                     stakeholder meetings, WAPA                               Response: WAPA agrees there are
                                                  process will be used for the 2040                       determined it would treat all customers               limited circumstances when Base
                                                  resource pool.                                          equally by reducing the existing                      Resource percentages may be adjusted
                                                                                                          customers’ allocation by 2 percent and                as defined by the Marketing Plan. For
                                                  VII. Allocation Criteria                                1 percent to create the 2025 and 2040                 instance, existing customers’ Base
                                                     Comment: A commenter stated the                      Resource Pools, respectively.                         Resource percentages may be increased
                                                  Northern California Power Agency                           Comment: A commenter strongly                      if one or more existing customers reduce
                                                  members with small allocations due to                   encouraged development of minimum                     their Base Resource percentage or
                                                  prior withdrawals should receive at                     threshold criteria to ensure that the                 terminate their contracts prior to 2025.
                                                  least equal consideration with Native                   existing customers are not                            All customers’ Base Resource
                                                  American tribes.                                        disadvantaged by the resource pool and                percentages will be reduced for the 2040
                                                     Response: WAPA will consider all                     that the resource value is not weakened               Resource Pool. If it is determined that a
                                                  applications received in response to the                or jeopardized by new customers. The                  customer has too large of an allocation,
                                                  Calls for Applications. It is WAPA’s                    commenter encouraged setting                          or is using the Base Resource for
                                                  policy to provide assistance to Native                  standards or carefully monitoring the                 purposes other than serving its own
                                                  American tribes consistent with 25                      resource pool process to ensure the                   load, that customer’s Base Resource
                                                  U.S.C. 3505.                                            resource is being used consistent with                percentage may be reduced or
                                                     Comment: A commenter stated that                     the project purposes.                                 withdrawn. An assignment, or
                                                  under the Proposed Plan, a new                             Response: The Marketing Plan sets                  withdrawal of an assignment, also
                                                  customer could potentially receive up to                forth the eligibility criteria necessary to           would cause an adjustment in a
                                                  2 percent of the Base Resource in 2025                  be met to qualify for an allocation of                customer’s Base Resource percentage.
                                                  if additional customers are not available               Federal power. The criteria apply to                     Comment: Section V.I. states
                                                  to split the resource pool. The                         both existing and new customers. All                  ‘‘Contracts will include clauses
                                                  commenter stated that if there are not                  new and existing customers will execute               specifying criteria that customers must
                                                  enough new customers to fully                           the same electric service contract and                meet on a continuous basis to be eligible
                                                  subscribe to the 2 percent offering, the                are bound by the same terms and                       to receive electric service from WAPA.’’
                                                  remaining share of the Base Resource                    conditions.                                           Two commenters stated if WAPA
                                                  product that is not allocated to a new                     Comment: A commenter was                           intends to include criteria in the
                                                  customer can then be distributed to                     concerned by the proposal to allow only               contracts that differ from the criteria for
                                                  existing customers. The commenter also                  those customers who have a load ratio                 eligibility for an allocation, then the
                                                  stated that existing customers could still              share below 25 percent to receive                     nature of the intended ongoing criteria
                                                  potentially receive less than 1 percent of              additional allocations under the                      should be explained. WAPA should
                                                  the Base Resource if several existing                   resource pool. The commenter                          clarify the criteria a customer must
mstockstill on DSK30JT082PROD with NOTICES




                                                  customers sign up to receive a share of                 understands the intent to avoid                       continue to meet to remain a customer.
                                                  unsubscribed Base Resource in the                       allocating additional Base Resource to                   Response: The eligibility criteria
                                                  resource pool for new customers.                        entities who already have large                       listed in the Marketing Plan will remain
                                                     Response: WAPA has not determined                    allocations; however, the commenter                   during the term of the Marketing Plan.
                                                  how much Base Resource will be                          stated the 25 percent threshold is                    However, other criteria may be required
                                                  allocated to any allottee or group of                   somewhat arbitrary and that a set                     during the 30-year term to maintain
                                                  allottees, which would include new                      threshold neglects consideration of                   flexibility and adapt to changes. Criteria


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00010   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                                               Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices                                          38679

                                                  that a customer may need to meet will                      Comment: Several commenters also                   surrendered Base Resource percentage
                                                  be included in contracts which can be                   stated the contracts should provide an                to return all existing customers up to
                                                  modified as necessary to correspond                     exit clause at 5-year intervals during the            their full Base Resource percentage prior
                                                  with changes in the electric utility                    term, after a change in the rates or terms            to the resource pool reduction. Any
                                                  industry.                                               of service, or after a significant                    remaining Base Resource percentage
                                                     Comment: A commenter asked what                      regulatory change. According to the                   after all customers are returned to their
                                                  version of the General Power Contract                   commenters, such a provision would                    full Base Resource percentage will be
                                                  Provisions (GPCP) will be attached to                   provide protection for customers’                     included in the resource pool. Outside
                                                  the new contracts.                                      ratepayers. Without an undisputable                   of a resource pool period, if a customer
                                                     Response: The GPCP in effect at the                  termination provision, commenters                     were to surrender any or all of its Base
                                                  time of the contract offer will be                      asserted that a 30-year take-or-pay                   Resource percentage, WAPA, at its
                                                  attached to the contracts for electric                  contract will be a difficult commitment               discretion, will reallocate that Base
                                                  service.                                                to make in the current environment of                 Resource percentage.
                                                                                                          low cost renewable resources relative to
                                                  IX. Termination/Reduction                               the highly uncertain resource                         X. First Preference Entitlement and
                                                                                                          availability and allocated costs                      Allocation
                                                     Comment: Several commenters
                                                  expressed interest in contract                          associated with the Base Resource.                       Comment: A commenter stated the
                                                  termination/Base Resource reduction.                    Commenters stated that sufficient notice              Final Plan should state that any and all
                                                  Commenters stated that to achieve                       periods would give WAPA time to                       preference entities located within
                                                  balance for a 30-year take-or-pay                       explore alternative means for marketing               Calaveras County are eligible to join a
                                                  obligation, the contract should include                 power. The commenters strongly                        joint powers authority (JPA) as members
                                                  a reasonable termination or reduction                   recommended consideration of a                        and receive power through such JPA,
                                                  provision. Commenters asserted that                     process that allows customers to                      irrespective if any of those entities
                                                  precedent for contract termination                      terminate or reduce their Base Resource               receive a Base Resource allocation.
                                                  provisions within contracts has been set                percentages under prescribed                             Response: Increasing Calaveras
                                                  by Federal Energy Regulatory                            conditions. Such conditions could                     County’s first preference allocation to
                                                  Commission (FERC)-approved                              include a requirement that customers                  serve additional loads of other
                                                  transmission contracts. Due to the vague                attempt to reassign the Base Resource                 preference customers would circumvent
                                                  language in the GPCP, commenters                        percentage; longer notice provisions; or              the allocation process. Additionally, it
                                                  stated that the Marketing Plan should                   other criteria that would provide a                   would lower the amount of Base
                                                  clearly articulate customers’ ability to                balance for all parties. Some of these                Resource available for all preference
                                                  terminate or reduce their Base Resource                 commenters advocated an opportunity                   customers.
                                                                                                          for customers, upon reasonable notice,
                                                  percentages when rates are extended.                                                                          XI. Transmission
                                                                                                          to terminate or modify their Base
                                                  Commenters asserted that the Marketing                                                                           Comment: A commenter supported
                                                                                                          Resource allocation, for any reason,
                                                  Plan should clarify a customer’s ability                                                                      continued use of the CVP transmission
                                                                                                          every five years throughout the term of
                                                  to terminate its contract under the                                                                           for Base Resource deliveries.
                                                                                                          the contract.
                                                  GPCP. While the current GPCP provide                       Response: As discussed above, WAPA                    Response: Western acknowledges the
                                                  for any customer, during a 90-day                       will allow for termination as a result of             comment.
                                                  notification window, to terminate a                     a rate adjustment. WAPA anticipates                      Comment: A commenter stated WAPA
                                                  contract following a rate change or                     electric utility industry changes and has             should work with customers to ensure
                                                  formula rate extension, commenters                      provided for the ability to modify                    transmission arrangements are
                                                  recommended that a clear termination                    contracts in collaboration with                       completed to provide for delivery of
                                                  or allocation reduction provision be                    customers in this Marketing Plan;                     power made available by the Marketing
                                                  included in the body of the new                         therefore, WAPA does not believe an                   Plan.
                                                  agreement. Commenters asserted that                     exit clause will be necessary in response                Response: WAPA will use best efforts
                                                  there is clear precedent in major WAPA                  to changes in the electric utility                    to assist customers with their
                                                  agreements for a reasonable termination                 industry. Additionally, WAPA will use                 transmission arrangements. However,
                                                  notice provision. Commenters stated                     best efforts to assist customers that wish            because WAPA does not own all the
                                                  that specific language should be                        to reassign an allocation to the extent               transmission and distribution necessary
                                                  included in the body of the power                       there are customers interested in                     to serve all customers’ loads, obtaining
                                                  contracts to allow a customer to reduce                 additional allocations.                               the transmission and distribution
                                                  or terminate its allocation upon notice                    Comment: A commenter advocated a                   service necessary for delivery of WAPA
                                                  to WAPA, because GPCP termination                       process whereby those customers                       power is ultimately the customers’
                                                  triggered by rate change action is not                  intending to terminate their Base                     responsibility.
                                                  sufficient risk protection for customers.               Resource contracts make an offering to                   Comment: Several commenters
                                                     Response: WAPA acknowledges a 30-                    other remaining Base Resource                         support consideration of the PACI to aid
                                                  year term for a contract is a significant               customers prior to filing a notice to                 and benefit the CVP. Commenters stated
                                                  commitment and understands the                          terminate the contract. This would                    that WAPA’s transmission assets can be
                                                  concern regarding the ability to                        allow the remaining Base Resource                     used to improve the economic benefit of
                                                  terminate the contract. WAPA’s GPCP                     customers to elect the level of additional            the CVP to preference customers.
                                                  provide for customers to terminate                      Base Resource product that they would                 Commenters also stated that WAPA
mstockstill on DSK30JT082PROD with NOTICES




                                                  service in the event of a change of rates.              want to take and provide an overall                   should carefully manage and use all of
                                                  However, to address the commenters’                     balance of certainty for the entire                   its transmission assets to maximize and
                                                  concerns, WAPA will exclude Section                     program.                                              enhance economic and operational
                                                  11 of the GPCP and, in collaboration                       Response: If an existing customer                  benefits to allow CVP costs to be
                                                  with the customers, will clarify Section                surrenders some or all of its Base                    minimized and benefits to be shared
                                                  11 and insert it directly into the                      Resource percentage during a resource                 with preference customers. Commenters
                                                  contract.                                               pool process, WAPA will first use that                supported WAPA’s commitment to


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00011   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                  38680                        Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices

                                                  make surplus transmission available to                    Comment: A commenter asked what                     unit costs due to declining CVP power
                                                  aid and benefit the CVP. Commenters                     credit provisions will be applied to all              production. Lastly, customers argued
                                                  encouraged WAPA to explore the best                     customers.                                            that because WAPA rate actions
                                                  use of its surplus transmission,                          Response: WAPA’s standard credit                    establish total revenue requirements,
                                                  including the Path 15 transmission line,                provisions in effect at the time of                   and do not consider the value of CVP
                                                  to minimize costs for the CVP while                     contract execution will be applied to all             power generated, the GPCP do not
                                                  honoring its existing commitments.                      customers.                                            protect customers from declining value
                                                                                                            Comment: Numerous commenters                        of CVP production due to water
                                                    Response: Under WAPA’s OATT,
                                                                                                          stated the Marketing Plan should                      management shifts to periods when
                                                  WAPA is required to charge all
                                                                                                          include a limiter that would cap power                power is less valuable.
                                                  customers the same rate it charges itself,
                                                                                                          customers’ payments when power                           Response: WAPA will sell the Base
                                                  unless there is a statutory exemption.
                                                                                                          customers’ combined CVP power and                     Resource at a cost-based rate. WAPA is
                                                  The PACI legislation (16 U.S.C. 837g)
                                                                                                          Restoration Fund payments exceed the                  required to recover costs within a
                                                  provides that WAPA should sell the                      annual average of the North of Path 15                statutorily defined period. The public
                                                  excess capacity at equitable rates.                     market rate. A commenter strongly                     ratemaking process is separate from the
                                                  Operational control of Path 15 has been                 requested the Marketing Plan include a                development of, and allocation of power
                                                  turned over to the California                           cap on costs that can be allocated to                 under, the Marketing Plan. WAPA
                                                  Independent System Operator (CAISO).                    power customers under certain                         encourages the public to participate in
                                                  WAPA will continue to examine ways                      conditions to ensure the contract                     WAPA’s rate processes. Costs and
                                                  to utilize the PACI to aid and benefit the              remains financially sustainable for                   availability will be more clearly
                                                  CVP.                                                    customers and provides for a more                     identified by the time commitments are
                                                  XII. Changes in the Electric Utility                    proportionate allocation of costs                     required for the Base Resource.
                                                  Industry                                                between water and power customers.                    Reclamation develops and implements
                                                                                                          The commenters also stated that                       the programs under the CVPIA, and
                                                     Comment: Numerous commenters                         contracts should include a cap on power               determines the costs associated with its
                                                  support WAPA incorporating specific                     customers’ payments when CVP power,                   programs. WAPA is the billing agent for
                                                  provisions to negotiate changes to                      Restoration Fund payments, Twin                       the Restoration Fund charges to the
                                                  contracts should changes in the electric                Tunnel payment and all other fees in                  power customers and has no control
                                                  industry/markets be significant enough                  total exceed the annual average market                over those costs; however, WAPA
                                                  that CVP transactions would need to be                  price. Commenters further stated that                 minimizes WAPA components of power
                                                  managed differently than might be                       Restoration Fund costs are more than a                costs to provide the best possible service
                                                  articulated in the contracts. Commenters                third of the total cost of the Base                   at the lowest possible rates consistent
                                                  stated that this may be important in                    Resource. While customers indicated                   with sound business principles. WAPA
                                                  light of the significant changes that                   that they understand that WAPA’s cost                 will continue to work with Reclamation
                                                  continue to impact the electric utility                 recovery mechanisms for the CVP are                   and the customers on the CVPIA costs
                                                  industry. Commenters further stated                     based on the foundation of recovery for               Reclamation is passing on to WAPA’s
                                                  that the Marketing Plan needs to remain                 direct project costs through the power                customers.
                                                  flexible due to the evolving power                      revenue requirement, they asked that
                                                  system, and that WAPA may need to re-                   WAPA explore further the Central                      Summary of Revisions to the Proposed
                                                  evaluate the products and services it                   Valley Project Improvement Act                        Plan
                                                  offers to continue to provide power at                  (CVPIA) costs that are being passed                      WAPA revised the Proposed Plan as
                                                  the lowest possible rates consistent with               through by Reclamation before Plan                    a result of the comments received
                                                  sound business principles. Commenters                   implementation. Commenters stated                     during the comment period and public
                                                  requested that WAPA clarify that any                    that cost containment and cost certainty              forums. Additionally, changes have
                                                  changes will be done with mutual                        must be part of the equation so that Base             been made to more clearly define the
                                                  agreement by WAPA and the customers.                    Resource customers are able to better                 intent, but not to alter the substance, of
                                                     Response: WAPA may need to re-                       plan on power expenses and better                     the original proposal. The revisions are
                                                  evaluate the manner in which it markets                 justify budget impacts. If no significant             summarized as follows:
                                                  the resource due to changes in the                      benefits to power customers are                          WAPA will exclude GPCP Section 11
                                                  electric market. Any contractual                        associated with certain cost types,                   from the electric service contract and,
                                                  changes will be made via mutual                         commenters argued that sound cost                     instead, will include language in the
                                                  consent through an amendment                            causation principles would suggest that               electric service contract developed in
                                                  executed by both parties to the contract.               those costs should not be passed on to                collaboration with customers that
                                                                                                          power customers. Customers                            clearly defines the customers’ ability to
                                                  XIII. Additional Comments                               recommended that WAPA agree to                        terminate their contracts after certain
                                                                                                          suspend the collection of non-essential               rate processes.
                                                     Comment: A commenter stated that,                    costs and projects when CVP generation                   The definition of Base Resource is
                                                  in the Proposed 2025 Schedule, the one-                 levels are reduced, allowing Federal                  modified to clarify that power includes
                                                  time termination milestone should be                    power to be assessed at rates equal or                both capacity and energy. Additionally,
                                                  removed and replaced with the                           near alternative power costs. In the                  the word ‘‘forfeit’’ is being replaced
                                                  opportunity to terminate or reduce the                  customers’ view, the GPCP alone would                 with ‘‘surrender’’ to more accurately
                                                  Base Resource percentage prior to                       not give customers protection from the                refer to a voluntary return of an
mstockstill on DSK30JT082PROD with NOTICES




                                                  contract start date.                                    CVP cost impacts occurring because of                 allocation.
                                                     Response: WAPA has determined that                   continually increasing CVPIA                             In response to comments regarding
                                                  a minimum of 6 months is needed to                      Restoration Fund costs. Because WAPA                  the Custom Product, the definition of
                                                  allow time to reallocate any returned                   rate actions establish total revenue                  Custom Product is modified to clarify it
                                                  allocations. Customers may reduce or                    requirements, and not per unit costs,                 does not include Base Resource and
                                                  return their allocations no later than                  customers believe that the GPCP do not                may not necessarily be supplemental
                                                  July 1, 2024.                                           protect customers from increasing per                 power.


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00012   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                                               Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices                                           38681

                                                  2025 Power Marketing Plan                                 customer to a third party when so                     preference in the sale of Federal
                                                    The Marketing Plan addresses: (1) The                   directed by WAPA.                                     power be given to certain entities,
                                                                                                          Capacity The electrical capability of a                 such as governments (state, Federal
                                                  power to be marketed after December
                                                                                                            generator, transformer, transmission                  and Native American), municipalities
                                                  31, 2024, which is the termination date
                                                                                                            circuit or other equipment.                           and other public corporations or
                                                  for all existing SNR electric service                   Central Valley Project (CVP) A
                                                  contracts; (2) the general terms and                                                                            agencies, and cooperatives and other
                                                                                                            multipurpose Federal water                            nonprofit organizations financed in
                                                  conditions under which the power will                     development project extending from
                                                  be marketed January 1, 2025, through                                                                            whole or in part by loans made
                                                                                                            the Cascade Range in northern                         pursuant to the Rural Electrification
                                                  December 31, 2054; and (3) the criteria                   California to the plains along the Kern
                                                  to determine who will be eligible to                                                                            Act of 1936 (See, e.g., Reclamation
                                                                                                            River, south of the City of Bakersfield.              Project Act of 1939, Section 9(c), 43
                                                  receive allocations from the resource                   Contract Principles Provisions of the
                                                  pools.                                                                                                          USC 485h(c)).
                                                                                                            electric service contracts, including               Primary Marketing Area The area
                                                    WAPA will continue a collaborative                      WAPA’s General Power Contract
                                                  process in implementing the terms set                                                                           generally encompassing northern and
                                                                                                            Provisions.                                           central California extending from the
                                                  forth in this Marketing Plan.                           Custom Product A combination of
                                                    Within broad statutory guidelines,                                                                            Cascade Range to the Tehachapi
                                                                                                            products and services which may be
                                                  WAPA has discretion as to whom and                                                                              Mountains and west-central Nevada.
                                                                                                            made available by WAPA per
                                                  under what terms it will contract for the                                                                     Project Use Power as defined by
                                                                                                            customer request.
                                                  sale of Federal power, as long as                       Customer An entity with a contract                      Reclamation Law and/or used to
                                                  preference is accorded to statutorily-                    and receiving electric service from                   operate CVP and Washoe Project
                                                  defined public bodies. WAPA markets                       WAPA’s Sierra Nevada Region.                          facilities.
                                                  power in a manner that will encourage                   Eligibility Criteria Conditions that                  Reclamation Law Refers to a series of
                                                  the most widespread use at the lowest                     must be met to qualify for an                         Federal laws with a lineage dating
                                                  possible rates consistent with sound                      allocation.                                           back to the late 1800s. Viewed as a
                                                  business principles. All products and                   Energy Measured in terms of the work                    whole, those laws create the
                                                  services provided under this Marketing                    it is capable of doing over a period of               framework under which WAPA
                                                  Plan will be subject to the operational                   time; electric energy is usually                      markets power.
                                                  requirements and constraints of the CVP                   measured in kilowatthours or                        Reimbursable Financing WAPA may
                                                  and the Washoe Project, transmission                      megawatthours.                                        purchase power or provide other
                                                  availability, purchase power limitations,               Firm A type of product and/or service                   services using reimbursable authority
                                                  and Federal authorities.                                  that is available to a customer at the                pursuant to the Economy Act, 31 USC
                                                                                                            times it is required.                                 1535. This is a funding mechanism
                                                  I. Acronyms and Definitions                             First Preference Customer/Entity A                      used by Federal customers.
                                                    As used herein, the following                           preference customer and/or a                        Sierra Nevada Region (SNR) The
                                                  acronyms and terms, whether singular                      preference entity (an entity qualified                Sierra Nevada Region of the Western
                                                  or plural, capitalized or not capitalized,                to use, but not using, preference                     Area Power Administration.
                                                  shall have the following meanings:                        power) within a county of origin                    Unbundled Electric service that is
                                                  Allocation An offer from WAPA to sell                     (Trinity, Calaveras, and Tuolumne) as                 separated into its components and
                                                    Federal power for a certain period of                   specified under the Trinity River                     offered for sale with separate rates for
                                                    time, which will convert to a right to                  Division Act (69 Stat. 719) and the                   each component.
                                                    purchase after execution of a contract.                 New Melones Project provisions of                   WAPA Western Area Power
                                                  Allocation Criteria Criteria used to                      the Flood Control Act of 1962 (76                     Administration, United States
                                                    determine the amount of energy                          Stat. 1173, 1191–1192).                               Department of Energy, a Federal
                                                                                                          General Power Contract Provisions                       power marketing administration
                                                    allocated to allottees.
                                                  Allottee A preference entity receiving                    (GPCP) Standard terms and                             responsible for marketing and
                                                                                                            conditions included in WAPA’s                         transmitting Federal power pursuant
                                                    an allocation percentage.
                                                  Ancillary Services Those services                         electric service contracts.                           to Reclamation Law and the DOE
                                                                                                          Integrated Resource Plan (IRP) A
                                                    necessary to support the transfer of                                                                          Organization Act (42 USC 7101, et
                                                                                                            process and framework within which
                                                    electricity while maintaining reliable                                                                        seq.).
                                                                                                            the costs and benefits of both demand
                                                    operation of the transmission                                                                               Washoe Project A Federal water
                                                                                                            and supply-side resources are
                                                    provider’s transmission system in                       evaluated to develop the least total                  project located in the Lahontan Basin
                                                    accordance with good utility practice.                  cost mix of utility resource options.                 in west-central Nevada and east-
                                                    Ancillary services are generally                      Kilowatt (kW) A unit measuring the                      central California.
                                                    defined by the North American                           rate of production of electricity; one              II. Base Resource
                                                    Electric Reliability Corporation.                       kilowatt equals one thousand watts.
                                                  Base Resource CVP and Washoe                            Marketing Plan WAPA’s final 2025                        The Base Resource, as defined in
                                                    Project power (capacity and energy)                     Power Marketing Plan for the Sierra                 Section I., will include CVP and Washoe
                                                    output determined by WAPA to be                         Nevada Region.                                      Project power. CVP generation will vary
                                                    available for marketing, including the                Megawatt (MW) A unit measuring the                    hourly, daily, monthly, and annually
                                                    environmental attributes, after                         rate of production of electricity; one              because it is subject to hydrological
                                                    meeting the requirements of project                                                                         conditions and other constraints that
mstockstill on DSK30JT082PROD with NOTICES




                                                                                                            megawatt equals one million watts.
                                                    use and first preference customers,                   Net Billing Payments due to WAPA by                   may govern CVP operations. CVP
                                                    and any adjustments for maintenance,                    a customer may be offset against                    generation must be adjusted for project
                                                    reserves, system losses, and certain                    payments due to that customer by                    use, first preference, maintenance,
                                                    ancillary services.                                     WAPA.                                               reserves, system losses, and certain
                                                  Bill Crediting Contractual provisions                   Power Capacity and energy.                            ancillary services before the Base
                                                    whereby payments due to WAPA by                       Preference The requirements of                        Resource is available for marketing. The
                                                    a customer shall be paid by a                           Reclamation Law that provide for                    Base Resource will be further adjusted


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00013   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                  38682                        Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices

                                                  for transmission losses to the point of                 developed in collaboration with the                   January 1, 2040. Allocations from the
                                                  delivery.                                               customers.                                            resource pools will be determined
                                                    The U.S. Department of the Interior,                    Any unused resources may be                         through a separate public process at a
                                                  Fish and Wildlife Service (F&WS),                       marketed for periods of time as                       later date.
                                                  Lahontan National Fish Hatchery and                     determined by WAPA, and may be
                                                                                                          marketed outside the primary marketing                1. Resource Pool Amount
                                                  Marble Bluff Fish Facility are project
                                                  use loads of the Washoe Project and                     area. Such sales may be to any entity                    The 2025 Resource Pool will initially
                                                  have first priority to those power                      (preference or non-preference), under                 consist of 2 percent of the power
                                                  resources. WAPA will continue to make                   any terms, conditions, rates, or charges              resources available after 2024, and the
                                                  every effort to provide the Washoe                      determined solely by WAPA.                            2040 Resource Pool will initially consist
                                                  Project power resource to F&WS. The                                                                           of 1 percent of the power resources
                                                                                                          IV. Resource Extensions and Resource
                                                  generation available after serving the                                                                        available after 2039. Should any Base
                                                                                                          Pool Allocations
                                                  F&WS needs will be marketed with the                                                                          Resource become available because of
                                                  CVP power resources. The Washoe                           WAPA will initially provide 98                      Sections IV.A.1., IV.A.2., or IV.A.3.,
                                                  Project is subject to the same variability              percent of its available power resources              above, WAPA will include the
                                                  and constraints as the CVP.                             to existing customers and establish a                 additional Base Resource in the
                                                                                                          resource pool with the remaining power                appropriate resource pool. WAPA will,
                                                  III. Products and Services                              resources for new allocations. Starting               at its discretion, allocate a percentage of
                                                     WAPA will market its Base Resource                   on January 1, 2040, WAPA will reduce                  the resource pools to applicants that
                                                  alone or in combination with a Custom                   the then-existing customers’ allocations              meet the Eligibility and Allocation
                                                  Product, which could include                            by 1 percent to develop the 2040                      Criteria.
                                                  purchasing some level of firming power                  resource pool.
                                                                                                                                                                2. Eligibility Criteria
                                                  on behalf of all customers, a group of                  A. Extension for Existing Customers
                                                  customers, or individual customers. All                                                                          WAPA will apply the following
                                                  costs incurred by WAPA in providing                        Starting January 1, 2025, existing                 Eligibility Criteria to all applicants
                                                  additional services to customers will be                customers will have a right to purchase               seeking a resource pool allocation under
                                                  paid by those customers using the                       98 percent of their current Base                      the Marketing Plan:
                                                  services. The degree to which WAPA                      Resource percentage amount; except as                    a. Applicants must meet the
                                                  continues to purchase power will                        provided below:                                       preference requirements under Section
                                                                                                             1. In the event that an existing                   9(c) of the Reclamation Project Act of
                                                  depend on customer requests and
                                                                                                          customer(s) surrenders some or all of its             1939 (43 U.S.C. 485h(c)(1)), as amended
                                                  Federal authorities.
                                                                                                          allocation prior to 2025, that percentage,            and supplemented.
                                                     Each allottee will be allocated a
                                                                                                          up to 2 percent of the total Base
                                                  percentage of the Base Resource. All                                                                             b. Applicants should be located
                                                                                                          Resource, will be returned to the
                                                  allottees will be required to commit to                                                                       within SNR’s primary marketing area
                                                                                                          existing customers on a pro rata basis.
                                                  the Base Resource within 6 months of a                     2. In January 2024, WAPA will                      (map of marketing area available upon
                                                  contract offer.                                         compare all existing customers’                       request). If SNR’s power resources are
                                                     Upon request, WAPA may develop a                     allocations to their loads. WAPA will                 not fully subscribed, WAPA may market
                                                  Custom Product for any customer. A                      use the average Base Resource MWh                     its resource outside the primary
                                                  Custom Product may include any                          annual generation and the customers’                  marketing area.
                                                  products or services mutually                           previous 5 years energy consumption to                   c. Applicants that require power for
                                                  negotiated between WAPA and a                           compare allocations to loads. No                      their own use must be ready, willing,
                                                  customer. This may include firming                      customer should have an allocation                    and able to receive and use Federal
                                                  and/or renewable power purchases,                       greater than its load. If, after the                  power.
                                                  ancillary services, reserves, portfolio                 comparison, WAPA believes a                              d. Applicants that provide retail
                                                  management services, scheduling                         customer(s) has an allocation greater                 electric service must be ready, willing,
                                                  coordinator services, etc. Commitments                  than its load, WAPA will consult with                 and able to receive and use the Federal
                                                  to purchase a Custom Product must be                    the customer(s) to determine if the                   power to provide electric service to their
                                                  made by January 1, 2023, for a period                   allocation is, in fact, larger than its load.         customers, not for resale to others.
                                                  of no less than 5 years of service,                     If WAPA determines the allocation is                     e. Applicants must submit an
                                                  beginning January 1, 2025. Thereafter,                  too large, WAPA will reduce that                      application in response to the Call for
                                                  the Custom Product will be offered for                  customer(s) allocation to 98 percent of               Resource Pool Applications issued by
                                                  periods as determined by WAPA. All                      its load.                                             WAPA in a separate Federal Register
                                                  costs incurred by WAPA in providing                        3. Starting on January 1, 2040, WAPA               notice. The notice will include the
                                                  Custom Product services to customers                    will reduce all customers’ allocations,               deadline for receipt of those
                                                  will be paid by those customers using                   including 2025 Resource Pool                          applications.
                                                  the services.                                           customers, by an additional 1 percent to                 f. Native American applicants must be
                                                     WAPA may, at its discretion, extend                  create the 2040 Resource Pool. WAPA                   a Native American tribe as defined in
                                                  the commitment dates for the Base                       will follow the steps listed in IV.A.1.               the Indian Self Determination Act of
                                                  Resource and/or Custom Products.                        and IV.A.2. in January 2039 when                      1975 (25 U.S.C. 5304).
                                                     WAPA will manage an exchange                         creating the 2040 Resource Pool.                         g. WAPA generally will not allocate
                                                  program to allow all customers to fully                                                                       power to applicants with loads of less
mstockstill on DSK30JT082PROD with NOTICES




                                                  and efficiently use their power                         B. Resource Pool Allocations                          than 1 MW; however, allocations to
                                                  allocations. Any power allocated by                        WAPA will establish a resource pool                applicants with loads which are at least
                                                  WAPA to a customer that cannot be                       by reserving a portion of the power                   500 kilowatts may be considered,
                                                  used on a real-time basis due to that                   available after 2024 for allocation to                provided the loads can be aggregated
                                                  customer’s load profile will be offered                 eligible preference entities and existing             with other allottees’ loads to schedule
                                                  under this program to other customers.                  customers. A second resource pool will                and deliver to a minimum load of 1
                                                  The exchange program will be                            be established for service starting on                MW.


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00014   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                                               Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices                                          38683

                                                  3. Allocation Criteria                                  within the time prescribed in the                     VI. First Preference Entitlement and
                                                     The following Allocation Criteria will               contract.                                             Allocation
                                                  apply to all applicants receiving a                        H. A written commitment to the                        The Trinity River Division Act and
                                                  resource pool allocation under the                      Custom Product will be required on or                 the New Melones Project provisions of
                                                  Marketing Plan:                                         before January 1, 2023. WAPA may                      the Flood Control Act of 1962 (Acts)
                                                     a. Allocations will be made in                       extend the final commitment dates for                 specify that contracts for the sale and
                                                  amounts as determined solely by WAPA                    the Custom Product.                                   delivery of the additional electric
                                                  in the exercise of its discretion under                    I. Contracts will include clauses                  energy, available from the CVP power
                                                  Reclamation Law and considered to be                    specifying criteria that customers must               system as a result of the construction of
                                                  in the best interest of the U.S.                        meet on a continuous basis to be eligible             the plants authorized by these Acts and
                                                  Government.                                             to receive electric service from WAPA.                their integration into the CVP system,
                                                     b. Allocations will be based on the                     J. Upon request, WAPA may provide,                 shall be made in accordance with
                                                  applicant’s load during the calendar                    or assist each new and existing                       preferences expressed in Reclamation
                                                  year prior to the Call for Applications or              customer in obtaining, transmission                   Laws. These Acts also provide that a
                                                  the amount requested, whichever is less.                arrangements for delivery of power                    first preference of up to 25 percent of
                                                     c. An allottee will have the right to                marketed under the Marketing Plan;                    the additional energy shall be given,
                                                  purchase power from WAPA only upon                      nonetheless, each entity is ultimately                under Reclamation Law, to preference
                                                  the execution of an electric service                    responsible for obtaining its own                     customers in the counties of origin
                                                  contract between WAPA and the                           delivery arrangements for its load.                   (Trinity, Tuolumne, and Calaveras), for
                                                  allottee, and satisfaction of all                       Transmission service over the CVP                     use in those counties, who are ready,
                                                  conditions in that contract.                            system will be provided in accordance                 willing, and able to enter into contracts
                                                     d. All customers, including those                    with Section VII. of this Marketing Plan.             for the energy.
                                                  receiving an allocation from the 2025                      K. Contracts shall provide for WAPA                   WAPA will calculate and allocate the
                                                  Resource Pool, will be subject to the                   to furnish electric service beginning                 Maximum Entitlements of First
                                                  2040 Resource Pool adjustment.                          either January 1, 2025, or January 1,                 Preference Customers (MEFPC), which
                                                     e. Eligible Native American applicants               2040, and continuing through December                 is the maximum amount of energy
                                                  will receive greater consideration for an               31, 2054.                                             available to first preference customers/
                                                  allocation of up to 65 percent of their                    L. Specific products and services may              entities, in accordance with the
                                                  total energy load in the calendar year                  be provided for periods of time as                    following:
                                                  prior to the Call for Applications, as                  agreed to in the electric service contract.              A. The MEFPC will be calculated
                                                  authorized by 25 U.S.C. 3505.                                                                                 separately for the New Melones Project,
                                                                                                             M. Contracts shall incorporate
                                                                                                                                                                Calaveras and Tuolumne Counties, and
                                                  V. General Criteria and Contract                        WAPA’s standard provisions, policies
                                                                                                                                                                the Trinity River Division (TRD), Trinity
                                                  Principles                                              and procedures for electric service
                                                                                                                                                                County (first preference projects). To
                                                                                                          contracts, integrated resource plans, and
                                                    The following criteria and contract                                                                         determine the 25 percent of additional
                                                                                                          GPCP, as determined by WAPA. WAPA
                                                  principles apply to all contracts                                                                             energy made available to the CVP as a
                                                                                                          will exclude Section 11 of the GPCP
                                                  executed under the Marketing Plan,                                                                            result of the construction of each of
                                                                                                          from the electric service contracts and,
                                                  except that certain criteria may not                                                                          these projects, WAPA will use the
                                                                                                          instead, will include language
                                                  apply to contracts for first preference                                                                       average of the previous 20 years of
                                                                                                          developed in collaboration with the
                                                  customers (see Section VI.):                                                                                  historical annual generation. The TRD
                                                                                                          customers that clearly defines the
                                                    A. Electric service contracts shall be                                                                      MEFPC includes generation from
                                                                                                          customers’ ability to terminate their
                                                  executed within 6 months of a contract                                                                        Trinity, Carr, and Spring Creek
                                                                                                          electric service contracts after certain
                                                  offer, unless otherwise agreed to in                                                                          Powerplants and a portion of the
                                                                                                          rate processes.
                                                  writing by WAPA.                                                                                              Keswick Powerplant generation. Based
                                                    B. Allocation percentages shall be                       N. Contracts will include a clause that            on the most current information
                                                  subject to adjustment.                                  allows WAPA to reduce or rescind a                    available, this calculation results in an
                                                    C. All power supplied by WAPA will                    customer’s allocation percentage, upon                estimated MEFPC of 122,800 MWh
                                                  be delivered pursuant to a scheduling                   90 days’ notice, if WAPA determines                   available from the New Melones Project,
                                                  arrangement.                                            that (1) the customer is not using this               and an estimated MEFPC of 361,500
                                                    D. Customers will be required to pay                  power to serve its own loads, except as               MWh available from the TRD. WAPA
                                                  for their percentage of the Base                        otherwise specified in Section III.; or (2)           will calculate the MEFPC on June 1,
                                                  Resource, regardless of whether they                    the allocation amounts are consistently               2024, to be applicable January 1, 2025.
                                                  can actually use the power.                             greater than the customer’s maximum                   WAPA will recalculate the MEFPC
                                                    E. Customers must pay for all charges                 load.                                                 every 5 years thereafter.
                                                  associated with the products and                           O. Any power not under contract may                   B. Upon recalculation, if the MEFPC
                                                  services provided, including charges                    be allocated at any time, at WAPA’s sole              from a first preference project is 10
                                                  associated with ancillary services,                     discretion, or sold as deemed                         percent above or below the currently
                                                  Custom Products, and transmission.                      appropriate by WAPA, consistent with                  applicable MEFPC from that first
                                                  Those charges will be passed on to the                  Federal law.                                          preference project, the MEFPC will be
                                                  customer(s) contracting for the product                    P. Contracts will include a clause                 adjusted to reflect that increase or
                                                  or service.                                             providing for WAPA to adjust the                      decrease. WAPA will notify affected
mstockstill on DSK30JT082PROD with NOTICES




                                                    F. WAPA will develop rate schedules                   customers’ allocation percentage for the              first preference customers at least 6
                                                  for services provided under the                         2040 Resource Pool.                                   months before making an adjustment to
                                                  Marketing Plan. Such rates will be                         Q. Contracts may include a clause                  the MEFPC. If recalculation reduces the
                                                  developed through a separate public                     providing for alternative funding                     MEFPC to an amount less than the load
                                                  process.                                                arrangements, including Net Billing, Bill             previously served, WAPA may, upon
                                                    G. Customers must pay all applicable                  Crediting, Reimbursable Financing, and                request and at its discretion, make
                                                  rates and charges in the manner and                     advance payment.                                      purchases necessary to replace that


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00015   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                  38684                        Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices

                                                  amount of power no longer available.                    or a justified increase in its allocation             its transmission resources concurrently
                                                  The costs for all such purchases made                   percentage.                                           with further development of the
                                                  on behalf of a first preference customer                   G. Power allocated to first preference             products and services under this
                                                  will be passed on to that first preference              customers/entities in Tuolumne and                    Marketing Plan. Specific terms and
                                                  customer.                                               Calaveras Counties will be subject to the             conditions for surplus transmission
                                                     C. An allocation made to a first                     following additional conditions:                      sales will be provided for in future
                                                  preference customer/entity under the                       1. Tuolumne and Calaveras Counties                 service agreements. WAPA will develop
                                                  Marketing Plan will be based on the                     shall each be entitled to one-half of the             transmission rates under a separate
                                                  power requirements of that first                        New Melones Project MEFPC.                            proceeding.
                                                  preference customer/entity. The sum of                     2. If first preference customers in
                                                                                                          either Tuolumne County or Calaveras                   VIII. Changes in the Electric Utility
                                                  allocations of first preference power,                                                                        Industry
                                                  including losses, shall not exceed the                  County are not using their county’s full
                                                  MEFPC from each first preference                        one-half share, and a first preference                   WAPA recognizes that there have
                                                  project, or a county of origin’s share of               customer/entity in the other county                   been, and continue to be, significant
                                                  the MEFPC, except as allowed under                      requests power in an amount exceeding                 changes in the electric utility industry.
                                                  Section VI.G. below.                                    that county’s one-half share, then                    To address this concern, WAPA, in
                                                     D. WAPA will provide full                            WAPA will allocate the unused power,                  collaboration with its customers, will
                                                  requirements service as described below                 on a withdrawable basis, to the                       include the ability to make changes in
                                                  to first preference customers. The first                requesting first preference customer/                 how the Federal resource is marketed if
                                                                                                          entity. Such power may be withdrawn                   there is deemed a benefit to WAPA and
                                                  preference customer will be responsible
                                                                                                          for use by a first preference customer/               its customers. Any changes
                                                  for transformation and transmission
                                                                                                          entity in the county not using its full               implemented would be done through
                                                  losses to the first preference customer
                                                                                                          one-half share upon 6 months’ written                 negotiation and revision to individual
                                                  delivery point. Transmission losses
                                                                                                          notice from WAPA.                                     customer contracts.
                                                  shall include losses for CVP
                                                  transmission and third-party                               H. Trinity Public Utilities District is            Authorities
                                                  transmission.                                           currently the sole recipient of the TRD’s
                                                                                                          first preference rights.                                WAPA developed this Marketing Plan
                                                     WAPA will provide the first                                                                                in accordance with its power marketing
                                                                                                             I. Transmission service will be
                                                  preference customer with its full power                                                                       authorities pursuant to the Department
                                                                                                          provided in accordance with applicable
                                                  requirements (capacity and energy) up                                                                         of Energy Organization Act (42 U.S.C.
                                                                                                          laws and Section VII. of this Marketing
                                                  to its right to the MEFPC at the Base                                                                         7101, et seq.); the Reclamation Act of
                                                                                                          Plan.
                                                  Resource rate. If there is more than one                   J. For planning purposes, first                    June 17, 1902 (ch. 1093, 32 Stat. 388),
                                                  first preference customer in a county of                preference customers may be required to               as amended and supplemented by
                                                  origin, or a first preference entity in that            provide forecasts and other information               subsequent enactments, particularly
                                                  county makes a request for power,                       required by WAPA as set forth in the                  Section 9(c) of the Reclamation Project
                                                  WAPA reserves the right to establish a                  electric service contract.                            Act of 1939 (43 U.S.C. 485h(c)); and
                                                  maximum amount of power available to                       K. The general criteria and contract               other acts specifically applicable to the
                                                  each first preference customer from the                 principles set forth in Sections V.A., C.             projects involved.
                                                  MEFPC. Payment for full requirements                    through I., K., M., and O. of this
                                                  service will be based on usage.                                                                               Regulatory Procedure Requirements
                                                                                                          Marketing Plan will apply to first
                                                     E. A first preference entity may                     preference customers.                                 Review Under the Paperwork Reduction
                                                  exercise its right to use a portion of the                                                                    Act
                                                  MEFPC by providing written notice to                    VII. Transmission Service
                                                                                                                                                                   In accordance with the Paperwork
                                                  WAPA at least 18 months prior to the                       Allottees and customers must secure                Reduction Act of 1980 (44 U.S.C. 3501,
                                                  anniversary date of the first preference                necessary transmission service to                     et seq.), WAPA has received approval
                                                  project located in its county. The                      deliver Federal power. WAPA will                      from the Office of Management and
                                                  anniversary date is the successive fifth                provide transmission service to deliver               Budget for the collection of customer
                                                  year anniversary of the date the                        the Base Resource over the CVP                        information in this rule, under control
                                                  Secretary of the Interior declared the                  transmission system. WAPA will work                   number 1910–5136, which expires on
                                                  availability of power from the                          with allottees and customers to secure                September 30, 2017.
                                                  powerplants in the counties of origin.                  bundled or unbundled transmission
                                                  New applications for service to begin on                services as appropriate beyond its CVP                Regulatory Flexibility Analysis
                                                  January 1, 2025, must be received 18                    transmission system in conjunction                       The Regulatory Flexibility Act of 1980
                                                  months prior to January 1, 2022 (i.e.,                  with its power sales in a manner                      (5 U.S.C. 601, et seq.) requires
                                                  July 1, 2020), for Trinity County and 18                consistent with FERC orders, legislated               preparation of an initial regulatory
                                                  months prior to April 5, 2022 (i.e.,                    mandates, or CAISO agreements. While                  flexibility analysis whenever an agency
                                                  October 5, 2020), for Calaveras and                     WAPA will work with allottees and                     is required by 5 U.S.C. 553, or any other
                                                  Tuolumne Counties. Other anniversary                    customers, it is the allottees’ and                   law, to publish general notice of
                                                  years applicable to this Marketing Plan                 customers’ obligations to secure all                  proposed rulemaking for any proposed
                                                  are 2027, 2032, 2037, 2042, 2047, and                   necessary transmission service.                       rule. A final regulatory flexibility
                                                  2052.                                                      Generally, WAPA will market surplus                analysis is required whenever the
                                                     F. If the request of a first preference              transmission capacity on the CVP and                  agency promulgates a final rule under 5
mstockstill on DSK30JT082PROD with NOTICES




                                                  customer/entity for power, including                    COTP available under WAPA’s OATT.                     U.S.C. 553, after being required by that
                                                  adjustment for losses, is greater than the              The legislation authorizing the PACI (16              section or any other law to publish a
                                                  remaining MEFPC from that county’s                      U.S.C. 837g) provides for the Secretary               general notice of proposed rulemaking.
                                                  first preference project, then WAPA will                of Energy to market surplus available                 WAPA has determined that the
                                                  allocate the remaining MEFPC to the                     transmission capacity on the PACI at                  analytical requirements of the
                                                  first preference customer/entity first                  equitable rates to aid and benefit the                Regulatory Flexibility Act do not apply
                                                  making a request for a power allocation                 CVP. WAPA will determine the use of                   to this rulemaking because it is a


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00016   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                                               Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices                                            38685

                                                  rulemaking involving services                           ADDRESSES:   Submit your comments,                    questions and answers. The first chapter
                                                  applicable to public property.                          identified by Docket ID No. EPA–HQ–                   provides an overview of the provisions
                                                                                                          OLEM–2017–0458; Title: Coal                           of the WIIN Act. The second chapter
                                                  Environmental Compliance
                                                                                                          Combustion Residuals (CCR) State                      contains the process and procedures
                                                    In compliance with the National                       Permit Program Guidance Document                      EPA is currently planning to use to
                                                  Environmental Policy Act (NEPA) (42                     (Interim Final) at http://                            review and make determinations on
                                                  U.S.C. 4321–4370), Council on                           www.regulations.gov. Follow the online                State CCR programs, as well as the
                                                  Environmental Quality NEPA                              instructions for submitting comments.                 documentation EPA generally expects to
                                                  implementing regulations (40 CFR parts                  Once submitted, comments cannot be                    request from States seeking approval of
                                                  1500–1508), and DOE NEPA                                edited or removed from Regulations.gov.               a program. The third and fourth
                                                  implementing regulations (10 CFR part                   The EPA may publish any comment                       chapters consist of checklists to aid the
                                                  1021), WAPA completed a Categorical                     received to its public docket. Do not                 States as they are considering and
                                                  Exclusion (CX). Since WAPA is                           submit electronically any information
                                                  reallocating its existing resources and is                                                                    developing their program submittals.
                                                                                                          you consider to be Confidential
                                                  not planning to increase its generation                                                                       Chapter 3 contains a checklist of all the
                                                                                                          Business Information (CBI) or other
                                                  or transmission under this Marketing                    information whose disclosure is                       requirements of the current CCR rule at
                                                  Plan, a CX is the appropriate level of                  restricted by statute Multimedia                      40 CFR part 257 subpart D. Chapter 4
                                                  environmental review.                                   submissions (audio, video, etc.) must be              provides a checklist of those items EPA
                                                                                                          accompanied by a written comment.                     generally expects a State would submit
                                                  Determination Under Executive Order                                                                           when seeking approval of its CCR
                                                  12866                                                   The written comment is considered the
                                                                                                          official comment and should include                   program.
                                                    WAPA has an exemption from                            discussion of all points you wish to                     This guidance describes EPA’s
                                                  centralized regulatory review under                     make. EPA will generally not consider                 statutory interpretations and the way in
                                                  Executive Order 12866; accordingly, no                  comments or comment contents located                  which EPA generally intends to review
                                                  clearance of this Federal Register notice               outside of the primary submission (i.e.,              State programs. As such, EPA
                                                  by the Office of Management and                         on the web, cloud or other file sharing               encourages States to consult this interim
                                                  Budget is required.                                     system). For additional submission                    final guidance and to use it as a
                                                   Dated: July 6, 2017.                                   methods, the full EPA public comment                  technical resource as they develop and
                                                  Mark A. Gabriel,                                        policy, information about CBI or                      submit State CCR Permit programs to
                                                  Administrator.                                          multimedia submissions, and general                   EPA for review and approval. As
                                                                                                          guidance on making effective
                                                  [FR Doc. 2017–17210 Filed 8–14–17; 8:45 am]                                                                   provided by Section 2301 of the WIIN
                                                                                                          comments, please visit http://
                                                  BILLING CODE 6450–01–P                                                                                        Act, EPA must provide public notice
                                                                                                          www.epa.gov/dockets/commenting-epa-
                                                                                                                                                                and an opportunity for comment prior
                                                                                                          dockets.
                                                                                                                                                                to approval of a State program by EPA.
                                                                                                          FOR FURTHER INFORMATION CONTACT:                      Thus, EPA’s review and approval of a
                                                  ENVIRONMENTAL PROTECTION
                                                                                                          Mary Jackson, Materials Recovery and                  State program will be a separate process
                                                  AGENCY
                                                                                                          Waste Management Division, Office of                  from this action that will provide for
                                                  [EPA–HQ–OLEM–2017–0458; FRL–9966–                       Resource Conservation and Recovery                    public notice and opportunity for
                                                  52–OLEM]                                                (5304P), Environmental Protection                     comment on each State program.
                                                                                                          Agency, 1200 Pennsylvania Avenue
                                                  Release of Interim Final Guidance for                   NW., Washington, DC 20460; telephone                     The information and procedures in
                                                  State Coal Combustion Residuals                         number: (703) 308–8453; email address:                the document are intended as a
                                                  Permit Programs; Comment Request                        jackson.mary@epa.gov.                                 technical resource to States that may be
                                                                                                          SUPPLEMENTARY INFORMATION:                            useful in developing and submitting a
                                                  AGENCY: Environmental Protection                                                                              State CCRs Permit Program to EPA for
                                                  Agency (EPA).                                           I. Background                                         approval. This Guidance does not
                                                  ACTION: Notice of availability; request                    Section 2301 of the Water                          constitute rulemaking by the Agency,
                                                  for comment.                                            Infrastructure Improvements for the                   and cannot be relied on to create a
                                                                                                          Nation Act (WIIN) Act amended the                     substantive or procedural right
                                                  SUMMARY:    The Environmental Protection
                                                                                                          Resource Conservation and Recovery                    enforceable by any party in litigation
                                                  Agency (EPA) is announcing the
                                                                                                          Act to allow States to submit and EPA                 with the United States. As indicated by
                                                  availability of and requests comment on
                                                                                                          to approve State permit (or other system              the use of non-mandatory language such
                                                  a document titled Coal Combustion
                                                                                                          of prior approval and conditions)                     as ‘‘may’’ and ‘‘should,’’ it only provides
                                                  Residuals State Permit Program
                                                                                                          programs for CCR.                                     recommendations and does not impose
                                                  Guidance Document; Interim Final. As a
                                                                                                             Coal Combustion Residuals State                    any legally binding requirements.
                                                  result of the Water Infrastructure
                                                                                                          Permit Program Guidance Document;
                                                  Improvements for the Nation (WIIN) Act                                                                           The guidance document can be found
                                                                                                          Interim Final is designed to provide
                                                  signed by the President on December 16,                                                                       in the docket (Docket ID No. EPA–HQ–
                                                                                                          information about the provisions of the
                                                  2016, States may submit coal                                                                                  OLEM–2017–0458; Title: Coal
                                                                                                          2016 WIIN Act, related to CCR, as well
                                                  combustion residuals (CCR) programs to                                                                        Combustion Residuals (CCR) State
                                                                                                          as the process and procedures EPA
                                                  EPA for review and approval. This                                                                             Permit Program Guidance Document
                                                                                                          generally intends to use to review and
mstockstill on DSK30JT082PROD with NOTICES




                                                  document describes EPA’s                                                                                      (Interim Final)) at http://
                                                                                                          make determinations on State CCR
                                                  interpretations of the WIIN Act                                                                               www.regulations.gov. In addition, a
                                                                                                          Permit Programs. The purpose of this
                                                  provisions and the way in which EPA
                                                                                                          document is to provide States guidance                copy of the guidance document and
                                                  generally intends to review State
                                                                                                          for developing and submitting a State                 additional resources on CCR can also be
                                                  programs.
                                                                                                          CCR Permit Program for EPA approval.                  found on EPA’s Web site: www.epa.gov/
                                                  DATES: Comments must be received on                        The document has four (4) chapters.                coalash.
                                                  or before September 14, 2017.                           The first two are in the form of


                                             VerDate Sep<11>2014   17:15 Aug 14, 2017   Jkt 241001   PO 00000   Frm 00017   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1



Document Created: 2017-08-15 01:12:33
Document Modified: 2017-08-15 01:12:33
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of final plan.
DatesThe Marketing Plan will become applicable September 14, 2017 in order to make power allocations and complete the other processes necessary to begin providing services on January 1, 2025.
ContactMs. Sonja Anderson, Vice President of Power Marketing, Sierra Nevada Customer Service Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, CA, 95630-4710, by email at [email protected], or by telephone (916) 353-4421. Information on development of the Marketing Plan can be found at https:// www.wapa.gov/regions/SN/PowerMarketing/Pages/2025-Program.aspx.
FR Citation82 FR 38675 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR