82_FR_42470 82 FR 42298 - Final Notice of a New Category of Special Use Permit Related to the Operation of Desalination Facilities Producing Potable Water for Consumption

82 FR 42298 - Final Notice of a New Category of Special Use Permit Related to the Operation of Desalination Facilities Producing Potable Water for Consumption

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 82, Issue 172 (September 7, 2017)

Page Range42298-42306
FR Document2017-18995

On January 12, 2017, NOAA published a notice in the Federal Register proposing two new categories of special use permits (SUP) related to the operation of desalination facilities, and requesting public comment. NOAA hereby gives public notice that the Office of National Marine Sanctuaries will adopt a new SUP category pursuant to the requirements of Section 310 of the National Marine Sanctuaries Act (NMSA). The SUP category is for the continued presence of a pipeline transporting seawater to or from a desalination facility. The second category previously proposed for the use of sediment to filter seawater for desalination is removed. This notice also includes background information on the use of desalination in Monterey Bay National Marine Sanctuary (MBNMS) and ONMS regulations applicable to activities that disturb submerged lands or discharge into sanctuaries, explains why a SUP is appropriate for this category of actions, explains why issuance of a new SUP category will not result in additional regulatory review, explains how the SUP category will facilitate and streamline the administration and management of desalination permits, as appropriate, and provides responses to public comments received. At this time, most proposed desalination activity in sanctuaries occurs in MBNMS, and the scientific studies used for environmental impact and comparative cost analyses were regionally based, so the SUP category only applies to MBNMS.

Federal Register, Volume 82 Issue 172 (Thursday, September 7, 2017)
[Federal Register Volume 82, Number 172 (Thursday, September 7, 2017)]
[Notices]
[Pages 42298-42306]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18995]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration


Final Notice of a New Category of Special Use Permit Related to 
the Operation of Desalination Facilities Producing Potable Water for 
Consumption

AGENCY: Office of National Marine Sanctuaries (ONMS), National Ocean 
Service (NOS), National Oceanic and Atmospheric Administration (NOAA).

ACTION: Notice.

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SUMMARY: On January 12, 2017, NOAA published a notice in the Federal 
Register proposing two new categories of special use permits (SUP) 
related to the operation of desalination facilities, and requesting 
public comment. NOAA hereby gives public notice that the Office of 
National Marine Sanctuaries will adopt a new SUP category pursuant to 
the requirements of Section 310 of the National Marine Sanctuaries Act 
(NMSA). The SUP category is for the continued presence of a pipeline 
transporting seawater to or from a desalination facility. The second 
category previously proposed for the use of sediment to filter seawater 
for desalination is removed. This notice also includes background 
information on the use of desalination in Monterey Bay National Marine 
Sanctuary (MBNMS) and ONMS regulations applicable to activities that 
disturb submerged lands or discharge into sanctuaries, explains why a 
SUP is appropriate for this category of actions, explains why issuance 
of a new SUP category will not result in additional regulatory review, 
explains how the SUP category will facilitate and streamline the 
administration and management of desalination permits, as appropriate, 
and provides responses to public comments received. At this time, most 
proposed desalination activity in sanctuaries occurs in MBNMS, and the 
scientific studies used for environmental impact and comparative cost 
analyses were regionally based, so the SUP category only applies to 
MBNMS.

DATES: This notice becomes effective on September 7, 2017.

ADDRESSES: Please see FOR FURTHER INFORMATION CONTACT. This Federal 
Register document is also accessible via the Internet at: http://montereybay.noaa.gov.

FOR FURTHER INFORMATION CONTACT: Bridget Hoover, Monterey Bay National 
Marine Sanctuary, 99 Pacific Street Bldg. 455A, Monterey, CA 93940, 
(831) 647-4217, [email protected].

SUPPLEMENTARY INFORMATION: Pursuant to Section 310 of the National 
Marine Sanctuaries Act, 16 U.S.C. 1441, NOAA issues this notice of a 
Special Use Permit (SUP) category applicable to Monterey Bay National 
Marine Sanctuary (MBNMS) for the continued presence of a pipeline 
transporting seawater to or from a desalination facility.

I. Background

Introduction to Desalination Projects in Sanctuaries

    There is a growing public concern about ensuring adequate water 
resources to support populations along the California coast. 
Communities have been working together to develop strategies for 
addressing the long-term drought California has recently experienced 
and the resulting water scarcity. In the Monterey Bay area, 
desalination has been identified as one of the essential components of 
water resource portfolios. NOAA's initial proposal was to apply the 
proposed SUP categories across the National Marine Sanctuary System, 
which could have resulted in the SUP categories applying to Olympic 
Coast and Florida Keys national marine sanctuaries (the other two 
sanctuaries adjacent to land such that desalination facilities could be 
constructed) in addition to MBNMS (82 FR 3751). However, since most 
desalination activity in sanctuaries occurs in MBNMS, and the 
scientific studies used for environmental impact and comparative cost 
analyses were regionally based, the SUP category only applies to MBNMS.
    Desalination is the process by which salts and other minerals are 
removed from seawater or brackish water to produce potable fresh water. 
The installation and operation of desalination facilities near a 
national marine sanctuary may involve access to and use of sanctuary 
resources and include activities prohibited by a sanctuary's 
regulations. One potentially applicable prohibition is for activities 
that cause the alteration of, or placement of structures on or in the 
seabed 15 CFR 922.132(a)(4). For example, installation of certain 
desalination facility structures such as an intake or outfall pipeline 
on, beneath, or attached to the ocean floor would be prohibited by 
sanctuary regulations and could only occur with sanctuary approval. 
Another prohibition potentially applicable to desalination projects is 
discharging or depositing any material or matter from within or into 
sanctuaries 15 CFR 922.132(a)(2). The disposal of brine effluent from a 
desalination facility, and most other materials, into sanctuary waters 
would be prohibited unless approved by the sanctuary.
    Multiple federal, state and local permits are typically required 
for any construction and operation of desalination facilities, 
including when a facility is proposed near a national marine sanctuary. 
In 2010, NOAA, in collaboration with the California Coastal Commission 
and California Central Coast Regional Water Quality Control Board, 
published specific guidelines for new desalination plants in a report 
titled Guidelines for Desalination Plants in Monterey Bay National 
Marine Sanctuary (MBNMS 2010, http://montereybay.noaa.gov/resourcepro/resmanissues/pdf/050610desal.pdf). These non-regulatory guidelines were 
developed to help ensure that any future desalination plants in or 
adjacent to MBNMS would be sited, designed, and operated in a manner 
that results in minimal impacts to the marine environment. These 
guidelines address numerous issues associated with desalination 
including site selection, construction and operational impacts, plant 
discharges, and intake systems. The guidelines encourage the use of 
subsurface intake systems and associated pipelines, which have less 
potential to cause environmental harm to sensitive marine organisms and 
habitats than other types of intakes. Open water intakes have the 
potential to trap organisms on the intake screens (impingement) or 
impact organisms

[[Page 42299]]

small enough to pass through the screen during the processing of the 
saltwater (entrainment). Subsurface intakes have the potential to 
minimize or eliminate impingement and entrainment impacts (Chambers 
Group Memo 2010). When subsurface intakes are not feasible, and a new 
pipeline for an open water intake is necessary, placement should be 
thoroughly evaluated to minimize disturbances to biological resources. 
In addition, the guidelines encourage co-location with existing 
facilities (e.g., sewage treatment plants) to dilute brine by blending 
it with existing effluent for ocean discharges.
    The guidelines also examine which statutory and regulatory 
authorities would apply to desalination projects located near national 
marine sanctuaries. The guidelines explain that NOAA could potentially 
allow the construction and operation of desalination facilities through 
sanctuary authorization of other state and federal permits, such as the 
State of California's Coastal Development Permit and National Pollution 
Discharge Elimination System (NPDES) permit.

Authorizations and Special Use Permits (SUP)

    This section provides information on the difference between 
authorizations and special use permits (SUPs); explains why an SUP 
category for the continued presence of a pipeline transporting seawater 
to and from a desalination facility is appropriate; explains how this 
SUP category will facilitate sanctuary management in a way that enables 
desalination facilities, as appropriate; and articulates the scope of 
coverage of this SUP category.
    Depending on the type of activity or project proposed, NOAA has 
various regulatory mechanisms it can use to allow otherwise prohibited 
activities to occur within national marine sanctuaries. Two of these 
mechanisms are authorizations and SUPs. Authorizations allow an entity 
to conduct an activity prohibited by sanctuary regulations if such 
activity is specifically authorized by any valid Federal, State, or 
local lease, permit, license, approval, or other authorization issued 
after the effective date of sanctuary regulation (15 CFR 922.49). In 
contrast, SUPs can only be issued for activities that are needed: (1) 
To establish conditions of access to and use of any sanctuary 
resources; or (2) to promote public use and understanding of a 
sanctuary resource (16 U.S.C. 1441(a)). In addition, the activities 
covered under an SUP must be compatible with the purposes for which the 
sanctuary is designated and with protection of sanctuary resources (16 
U.S.C. 1441(c)). SUPs may only be issued for activities that can be 
conducted in a manner that does not destroy, cause the loss of, or 
injure sanctuary resources (16 U.S.C. 1441(c)). Finally, SUPs may 
authorize the conduct of an activity for up to five years and may be 
renewed (16 U.S.C. 1441(c)).
    As mentioned above, NOAA has the ability to issue an authorization 
for a desalination project. Authorizations would address the 
desalination projects' pipeline installation, maintenance, and removal, 
and brine discharge within the national marine sanctuary. For a 
desalination facility intake or outfall, an authorization of a 
California Coastal Development permit would be required for any 
seafloor disturbance, prior to issuance of an SUP for the continued 
presence of a pipeline transporting seawater to or from a desalination 
facility. Brine discharges would be covered by an authorization of 
another approval, such as the NPDES permit.
    In addition, the NMSA gives NOAA authority to develop categories of 
SUP and to assess fees that may be applied to expenses of issuing and 
administering SUPs and expenses of managing national marine sanctuaries 
(16 U.S.C. 1441(d)(3)). In the case of a proposal for a desalination 
project in or near MBNMS, NOAA has found that there is a significant 
time and resource investment to review the environmental analysis and 
process a permit application for this type of large-scale coastal 
development project. Applicable SUP fees that may be assessed for 
permitting certain aspects of desalination projects would include the 
processing of applications, preparation and review of environmental 
analysis, as well as long-term monitoring of the impacts of the 
activity to sanctuary resources, and assessment of fair market value 
for the use of the resource.
    NOAA has determined that the continued use of sanctuary resources 
(namely, the substrate, seafloor, and/or water column) by the presence 
of the pipeline could be carried out in a manner that is consistent 
with Section 310 of the NMSA. As such, an SUP is an appropriate 
mechanism for NOAA to approve the continued presence of a pipeline and 
recover applicable costs associated with managing the sanctuary in a 
manner that allows desalination projects to occur within or near MBNMS 
and facilitates the more efficient administration of desalination 
permits and allowances.\1\ NOAA has further determined that issuance of 
this new SUP category will not result in additional regulatory review 
of desalination proposals, because an applicant would still need only 
submit one permit application even if NOAA ultimately issues multiple 
permits for the action, and because the same environmental review 
process pursuant to the National Environmental Policy Act (NEPA) and 
California Environmental Quality Act (CEQA), as required, would apply.
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    \1\ This management approach has been applied with respect to 
submarine fiber optic cables in Olympic Coast and Stellwagen Bank 
national marine sanctuaries, where the installation of the 
infrastructure was considered via a separate authorization and the 
continued presence of the infrastructure was addressed through an 
SUP (76 FR 56973; ONMS 2002).
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    While NOAA could conceivably propose new SUP categories for other 
types of pipelines, utility lines, or use of sediment associated with 
activities other than desalination (e.g., sewage treatment, or power 
generating facilities), NOAA elected to limit the focus of this SUP 
category to desalination activities in MBNMS, as desalination is 
currently a pressing issue on the California central coast. There is 
enough information on the types of activities associated with the 
continued presence of pipelines for desalination to make a 
determination that under certain conditions, and if correctly sited and 
compliant with MBNMS Desalination Guidelines, the continued presence of 
desalination pipelines is not likely to result in injury to sanctuary 
resources, which is a requirement for SUPs. It would be too speculative 
at this point for NOAA to analyze impacts of other types of pipelines, 
or other project impacts in the absence of a more clearly defined need 
or proposal for such activities.
    The second category previously proposed for the use of sediment to 
filter seawater for desalination has been removed from this final 
notice as NOAA recognizes that it may be a disincentive for the 
industry to select subsurface seawater intake, which is considered to 
have a smaller environmental impact than other types of intake. 
Moreover, the remaining SUP category will apply only to MBNMS because 
NOAA is not able to determine that the activities covered under this 
SUP category would always meet the ``no injury'' criteria for SUPs 
specified in the NMSA for all sites, at this time.

NMSA Special Use Permits

    This section provides more information of the history of SUPs, how 
SUPs are applied, and how SUP fees are assessed and applied.

[[Page 42300]]

    Congress first granted NOAA the authority to issue SUPs for the 
conduct of specific activities in national marine sanctuaries in the 
1988 Amendments to the National Marine Sanctuaries Act (NMSA; 16 U.S.C. 
1431 et seq.) (Pub. L. 100-627). NMSA section 310 allows NOAA to issue 
SUPs to establish conditions of access to and use of any sanctuary 
resource or to promote public use and understanding of a sanctuary 
resource. In the National Marine Sanctuaries Amendments Act of 2000 
(Pub. L. 106-513), Congress added a requirement that prior to requiring 
an SUP for any category of activity, NOAA shall give appropriate public 
notice. NMSA section 310(b) states that ``[NOAA] shall provide 
appropriate public notice before identifying any category of activity 
subject to a special use permit under subsection (a).'' On January 30, 
2006, NOAA published a list of five categories for which the 
requirements of SUPs would be applicable (71 FR 4898). NOAA further 
refined this list of categories for which an SUP could be issued on May 
3, 2013 (78 FR 25957).
    In January 2013, NOAA clarified that simply being consistent with 
one of the categories does not guarantee approval of an SUP for any 
given activity. Applications are reviewed for consistency with the SUP 
requirements in section 310(c) of the NMSA, 16 U.S.C. 1441(c), as well 
as the published description of the category. Of particular importance, 
SUPs may only be issued for activities NOAA determines can be conducted 
in a manner that does not destroy, cause the loss of, or injure 
sanctuary resources (NMSA section 310(c)(3), 16 U.S.C. 1441(c)(3)). 
Individual permit applications that would require an SUP are also 
reviewed with respect to all other pertinent regulations and statutes, 
including NEPA, 42 U.S.C. 4321 et seq, and any required consultations, 
permits or authorizations. NOAA would assess whether activities 
associated with proposed desalination projects are appropriate for this 
new SUP category on a case-by-case basis, and as part of the federal 
environmental review process required by NEPA. Under NEPA, NOAA would 
analyze the environmental impacts of the entire proposed federal action 
(i.e., the approval or denial of a desalination project) including the 
issuance of any SUPs and sanctuary authorizations.
    Pursuant to NMSA section 310(d), NOAA may assess three types of 
fees associated with the conduct of any activity under an SUP: (1) 
Administrative costs of issuing the permit; (2) implementation and 
monitoring costs; and (3) fair market value (FMV) of the use of the 
sanctuary resource (16 U.S.C. 1441(d)). On November 19, 2015, NOAA 
published a Federal Register notice finalizing the methods, formulas 
and rationale for the calculations it uses to assess fees associated 
with the existing seven SUP categories (80 FR 72415).
    NOAA will use the same methods previously established in the 
Federal Register for assessing an application fee, administrative 
costs, and implementation and monitoring costs of this new SUP 
category. NOAA will require a non-refundable $50 application fee. The 
labor costs assessed, as part of administrative costs, will be based on 
a Federal regional labor rate that will be updated every year to 
account for staff changes as well as inflation. Administrative costs 
will include: Any environmental analyses and consultations associated 
with evaluating the SUP application and issuing the permit; equipment 
used in permit review and issuance (e.g., vessels, dive equipment, and 
vehicles); and general overhead. The administrative fees may be 
assessed even if after full environmental review, it is deemed that an 
authorization or SUP is not appropriate and will not be issued by 
MBNMS. Where applicable, applicants would be notified of the estimate 
of the fees resulting from administrative costs at the onset of the 
application process and would need to acknowledge willingness to pay 
before NOAA processes the permit application. The permit issuance would 
be conditioned on payment of these fees. For desalination projects that 
have submitted complete permit applications and are in the 
environmental review process as of the effective date of this notice, 
SUP fees will not be assessed retroactively but may be assessed moving 
forward beginning on the effective date of this notice.
    NOAA may also assess a fee for costs associated with the conduct or 
implementation of a permitted activity as well as the costs of 
monitoring the activity. The latter costs would cover the expenses of 
monitoring the impacts of a permitted activity and compliance with the 
terms and conditions of the permit. Examples of implementation and 
monitoring costs can include the cost of site preparation, site 
examination, and the use of vessels and aircraft.
    Lastly, NOAA can assess a fee for fair market value (FMV) for use 
of sanctuary resources. NOAA's method for assessing FMV for this new 
category of SUP is described in subsequent sections of this Federal 
Register notice.

II. Description of New Special Use Permit Category

    With this final notice, NOAA adds a new category of SUP for ``the 
continued presence of a pipeline transporting seawater to or from a 
desalination facility''. At this time, the special use permit category 
goes into effect immediately upon the effective date of this notice and 
fees may be assessed from this date going forward.
    NOAA determined that pipelines transporting seawater for purposes 
of onshore desalination, that have been laid on, attached to, or 
drilled or bored within the submerged lands of a national marine 
sanctuary, after appropriate environmental review, application of best 
management practices, and compliance with MBNMS Desalination 
Guidelines, could remain in place without causing injury to sanctuary 
resources. Therefore, NOAA's establishment of an SUP category is 
appropriate. For purposes of this SUP category, NOAA is using 
``transporting seawater to or from a desalination facility'' to mean 
water being pumped from MBNMS or the submerged lands of MBNMS into a 
facility and/or concentrated brine water being pumped out of a facility 
through a pipe and into MBNMS (brine discharge is addressed below).
    In order to avoid or minimize impacts to the marine environment due 
to the presence of the pipeline, the best management practices (BMP) 
from the MBNMS Desalination Guidelines will be followed to ensure 
proper siting, sizing, engineering, and configuration of intake and 
outfall pipelines. New desalination pipelines are manufactured with 
high tensile stainless steel to avoid breakage or corrosion in seawater 
and would be monitored annually to evaluate their continued integrity. 
Submerged pipelines should have little propensity for movement or 
shifting. There are many pipelines associated with power plants and 
wastewater facilities in this region that have been in existence for 
more than 50 years with little to no adverse impacts due to their 
presence on the seafloor (MLML 2006; MRWPCA 2014).
    Existing pipelines installed prior to the publication of the final 
Federal Register notice for this new SUP category are exempt from this 
SUP category. Moreover, existing pipelines that do not fall under the 
purview of this SUP category include sewage treatment plant, power 
plant and aquaculture facility pipes.

[[Page 42301]]

III. Fair Market Value Calculation

    NOAA will use the same methods previously established in the 
Federal Register for assessing an application fee, administrative 
costs, and implementation and monitoring costs of the new SUP category 
(November 19, 2015; 80 FR 72415).
    The annual fair market value for the continued presence of a 
pipeline transporting seawater to or from a desalination facility will 
be calculated by assessing the volume of the pipeline in cubic inches 
multiplied by a value of $0.02 per cubic inch. The annual FMV equation 
is:

Annual FMV = ((V x $0.02/in\3\) x N)/yr

Where:

V = volume of the pipeline (in\3\) = (([pi] x r\2\) x L);
[pi] = 3.14159;
r = radius of the pipeline (in); and
L = length of the pipeline (in) for the portion within the 
sanctuary. For more than one pipeline, the average length of all 
pipelines will be calculated.
N = number of pipelines.

    FMV costs will be paid as annual rent for the duration of the 
permit. In developing the FMV calculation for this SUP category, NOAA 
examined: A conceptually similar SUP category for the continued 
presence of submarine cables; the California State Lands Commission 
(CSLC) lease process for pipelines, conduit, or fiber optic cables; and 
offset requirements established by CSLC for an open water desalination 
project in Southern California.
    NOAA's FMV calculation for the continued presence of submarine 
cables in a national marine sanctuary uses the overall linear distance 
(length) the infrastructure occupies on or within the seafloor within 
the sanctuary in assessing FMV (``Fair Market Value Analysis for a 
Fiber Optic Cable Permit in National Marine Sanctuaries''; 67 FR 
55201). NOAA's FMV methodology to assess a fee for the presence of a 
pipeline uses the volume of the pipeline, which includes both its 
length (linear distance) and area, thus accounting for its total 
presence on or within the submerged lands.
    In addition, NOAA surveyed comparable fees assessed by the State of 
California for the issuance of leases in submerged lands of the state 
for pipelines, conduits or fiber optic cables. The value of $0.02 per 
cubic inch of pipeline was established because NOAA considers this to 
be a similar metric (i.e., a state lease for allowing pipelines) to one 
of the options the CSLC uses to calculate the cost of the issuance of 
leases in submerged lands of the state for pipelines, conduits or fiber 
optic cables (CCR Title 2. Division 3. Chapter 1. Article 2 CCR 2003. 
(Rent and other considerations)(a)(4)). In order to calculate the cost, 
the CSLC uses one of three approaches: A cost based on a linear value 
(cost per diameter inch per lineal foot of pipe, cable, conduit within 
the state lands); a case by case rate to process an environmental 
impact report which is paid upfront; or nine percent of the appraised 
value of the leased land. In order to calculate the FMV of the 
continued presence of a pipeline, NOAA selected to use a mathematical 
approach based on the size and footprint of the project pipelines 
within the sanctuary. Therefore, NOAA's monetary multiplier is 
comparable to the first approach the CSLC could consider.

Example

    In the FMV example provided below, a special use permit for a 
desalination plant project includes one, 100-foot long seawater intake 
pipelines with a 15-inch radius to be bored into the submerged lands of 
a sanctuary.

Annual FMV = ((V x $0.02/in\3\) x N)/yr

V = ([pi] r\2\ x L)
[pi] = 3.14159
r = 15 in
L = (100 ft) x (12 in/ft) = 1200 in
V = 3.14159 x (15 in)\2\ x 1200 in = 848,230 in\3\
N = number of pipelines = 1
Annual FMV = ((848,230 in\3\ x $0.02/in\3\) x 1)/yr
Annual FMV for a pipeline of this size = $16,964/yr.

    This annual cost would be applicable for the length of the permit.
    Using the above calculation, a single pipeline of this size would 
have an annual FMV of $16,964/yr. This arrangement could be used for a 
desalination facility that would produce approximately one million 
gallons of water per day or 365 million gallons of water per year. 
Thus, the example of the FMV for the continued presence of 1 pipeline 
within MBNMS would add a cost of $0.0000465/gallon, or approximately 1 
cent for every 215 gallons of freshwater produced. This figure is 
obtained by dividing the FMV for the continued presence of a pipeline 
by 365 million gallons/year, since the example assumes a one million 
gallons per day capacity. The calculation is: ($16,964/year)/(365 
million gallons/year) = $0.0000465/gallon.

Cost Comparison for Open Water Intake Desalination Facility

    In addition to the comparison method described above for charging 
for the volume of the pipeline in cubic inches, NOAA also looked at a 
similar open water pipeline project in Southern California that uses 
desalination to provide drinking water in order to estimate the 
magnitude of costs of regulatory compliance (not fair market value) 
associated with the permitting of desalination facilities in a real-
world setting. That open water pipeline project was proposed by 
Cabrillo, LLC and Poseidon, LLC and received a permit by the California 
Coastal Commission in 2008. The CSLC required the project to invest in 
various offset and restoration efforts to mitigate the impacts of the 
facility, such as obtaining 25,000 tons of carbon offsets for the 
construction and operational impacts. In that project, the average 
offset price from 2011 to 2016 was $14.87 per ton of carbon offset, for 
a total of $371,750. In addition, the facility was required to restore 
a minimum of 37 acres of wetlands (up to 55.4 acres) with a non-
cancelable deposit of $3.7 million and to provide a deposit of $25,000 
to the CSLC to reimburse staff expenses incurred to monitor compliance 
with the terms of the lease. While these costs associated with 
environmental compliance are not directly comparable with the FMV for 
this new SUP category, they provide context for the scale of costs 
required by various agencies to permit or authorize large coastal 
projects such as a desalination plant.

Conclusion

    The fees that NOAA may assess per the above calculations are 
comparable to other agencies' fees for desalination facilities and not 
prohibitively expensive. For a proposed desalination project that would 
require an SUP, NOAA considered the annual cost of the fees based on 
the example presented in this notice, and converted it to a dollar per 
gallon figure that can be applied to future proposed projects of 
varying size and scale. NOAA determined that the total cost of the fair 
market value using the SUP category would amount to approximately 
$0.0000465/gallon for a facility of a scale similar to the example used 
in this notice (i.e., one 100-foot pipelines for a 1 MGD facility). As 
stated above, this would be in addition to the potential administrative 
cost associated with the issuance of the permit, including the 
environmental review and application review of an SUP, and 
implementation and monitoring costs, as appropriate.
    This notice finalizes the list of eight categories for which the 
requirements of SUPs would be applicable:
    1. The placement and recovery of objects associated with public or 
private events on non-living substrate of the

[[Page 42302]]

submerged lands of any national marine sanctuary.
    2. The placement and recovery of objects related to commercial 
filming.
    3. The continued presence of commercial submarine cables on or 
within the submerged lands of any national marine sanctuary.
    4. The disposal of cremated human remains within or into any 
national marine sanctuary.
    5. Recreational diving near the USS Monitor.
    6. Fireworks displays.
    7. The operation of aircraft below the minimum altitude in 
restricted zones of national marine sanctuaries.
    8. The continued presence of a pipeline transporting seawater to or 
from a desalination facility in the Monterey Bay National Marine 
Sanctuary.

IV. Waiver or Reduction of Fees

    As described in the November 19, 2015, Federal Register notice (80 
FR 72415), NOAA may accept in-kind contributions in lieu of a fee, or 
waive or reduce any fee assessed for any activity that does not derive 
profit from the access to or use of sanctuary resources. NOAA may 
consider the benefits of the activity to support the goals and 
objectives of the sanctuary as an in-kind contribution in lieu of a 
fee.

V. Changes Between Proposed Notice and Final Notice

    Based on NOAA's analysis of the topics raised during the public 
comment period, NOAA made several changes between the notice of 
proposed new SUP categories and this final notice.
    First, NOAA removed the proposed SUP category for the use of 
sediment to filter seawater for desalination. While NOAA is confident 
in the method it developed for the calculation of FMV for this 
category, it recognizes that this SUP category may not always meet the 
``no injury'' criteria for SUPs specified in the NMSA for all sites. In 
addition, it may be interpreted as a disincentive against the use of 
subsurface intakes of water, which is the method recommended in the 
2010 guidelines.
    Second, NOAA has limited the applicability of the remaining SUP 
category (for the continued presence of a pipeline transporting 
seawater to and from a desalination facility) to MBNMS instead of 
applying it to the National Marine Sanctuary System, for the following 
reasons. While all of the sanctuaries have authority to issue SUPs, 
only six national marine sanctuaries currently have regulations 
enabling them to issue authorizations: Florida Keys, Flower Garden 
Banks, Monterey Bay, Olympic Coast, Stellwagen Bank, and Thunder Bay. 
Of these sites, Florida Keys and Olympic Coast NMSs are the only sites 
adjacent to land where desalination facilities could be placed; 
therefore, they are the only two national marine sanctuaries in 
addition to MBNMS where the proposed SUP categories could have applied. 
These two national marine sanctuaries are in very different ecosystems 
than MBNMS, and NOAA based its evaluation of the likelihood of injury 
to sanctuary resources on central California examples. In addition, the 
cost methods for this category were regionally based in California. 
Therefore, NOAA decided that it was not appropriate to extend the 
remaining SUP category to other national marine sanctuaries at this 
time, although it may revisit this issue in the future as necessary and 
appropriate.
    The estimated cost per gallon of desalinated water as proposed in 
the January notice is reduced from $0.00008/gallon to approximately 
$0.00005/gallon in this final notice, reflecting the annual FMV for the 
continued presence of a pipeline and removing the additional cost for 
the use of sediment to filter the water in the example provided.

IV. Response to Comments

    NOAA received seven individual submissions on the draft Federal 
Register notice, docket #NOAA-NOS-2016-0156. NOAA sorted and organized 
the seven submissions into 27 unique comment topics. NOAA's response to 
these comments follows.
    Comment 1: Marine sanctuaries were designated for having special 
resources, and as such, they deserve enhanced protection. These 
activities should be sited outside of sanctuary boundaries, or NOAA 
should not allow any new pipelines in sanctuaries.
    Response: The NMSA directs NOAA to allow public and private uses of 
the resources to the extent compatible with resource protection. NOAA 
evaluates impacts of any intake pipelines through the NEPA (and CEQA 
analysis as appropriate). An SUP could only be issued if the activity 
is conducted in a manner that does not destroy, cause the loss of, or 
injure sanctuary resources.
    Comment 2: Requiring two permits for a single pipeline appears 
inconsistent with ONMS's statutory authority under 16 U.S.C. 1441(a).
    Response: Under 16 U.S.C. 1441(a), NOAA has the authority to issue 
special use permits if necessary to ``establish conditions of access to 
and use of any sanctuary resource; or promote public use and 
understanding of a sanctuary resource.'' The issuance of an SUP for 
desalination activities would establish conditional long-term use of a 
sanctuary resource (the substrate, seafloor, and/or water column); 
therefore, NOAA believes that the SUP category is consistent with 16 
U.S.C. 1441(a).
    The general sanctuary and MBNMS regulations also provide for the 
authorization of other State and Federal permits as a separate type of 
permit necessary to allow an activity otherwise prohibited by 
regulation. The activities that may be subject to such authorization 
(for example, a NPDES permit for discharges) are different from the 
activity within the scope of this SUP category. Together, the issuance 
of SUPs and authorizations ensure sanctuary resource protection while 
allowing compatible uses, in alignment with the policies and purposes 
of the NMSA.
    Comment 3: The proposed new SUP categories are duplicative of 
approvals ONMS can grant using existing authority and would impose 
unnecessary regulatory burden and substantial unjustified costs.
    Response: The authorization of the applicable State permits for a 
desalination plant would only address allowing the prohibited activity 
at issue, and if issued for a desalination plant it would cover the 
construction of a pipeline or discharge of brine. The activities that 
may be subject to such authorization are different from the activity 
within the scope of this SUP category. Authorizations do not address 
the FMV of the private use of a public resource or provide a mechanism 
for assessing and applying costs of the use of this resource to 
sanctuary management.
    As described above, NOAA has determined that an SUP is an 
appropriate mechanism for NOAA to approve the continued presence of a 
pipeline and assess and apply applicable costs in a manner that allows 
desalination projects to occur within or near MBNMS and to facilitate 
the more efficient administration of desalination permits. In addition, 
the current ONMS permit application process allows for multiple permits 
and authorizations to be issued under one permit application, thereby 
streamlining the permit application process.
    The fees associated with SUPs have been used by NOAA for various 
other SUP categories. The fee categories include administrative costs 
per 16 U.S.C. 1441(d)(2)(A), implementation and monitoring costs per 16 
U.S.C. 1441(d)(2)(B), and FMV per 16 U.S.C. 1441(d)(2)(C) for use of 
sanctuary resources. NOAA believes these costs are appropriate to 
properly assess a

[[Page 42303]]

desalination facility operating in a national marine sanctuary.
    Comment 4: Test slant well permits were issued without this SUP 
category, and permits issued for that project contained conditions, 
such as requiring monitoring. NOAA should do what it has previously 
done.
    Response: NOAA began consideration for this new SUP category during 
the NEPA review for the California American Water test well pilot 
project, and has now completed the SUP process through the issuance of 
this final notice. As described above, NOAA has concluded that an SUP 
category was needed and appropriate for the continued existence of 
pipelines transporting seawater to and from a desalination facility; 
therefore, NOAA began to pursue the new category for desalination 
facilities. This approach is in line with past large-scale and 
intensive infrastructure projects like the submarine cable SUP 
category. In looking at NOAA's history, SUPs for ``the continued 
presence of submarine cables'' were issued along with authorizing other 
state and federal permits as needed prior to the development of that 
category for SUPs. Since the two authorizations for the test well were 
issued prior to this final notice, that pipeline will be considered 
existing and therefore exempted.
    Comment 5: California American Water commented that the company 
provided some financial assistance for environmental review of the 
large-scale Monterey Peninsula Water Supply Project (MPWSP) by paying 
for a portion of the Federal labor costs, and should not be charged 
additional administrative fees.
    Response: The environmental review for the MPWSP involved re-
writing an extensive environmental impact review (EIR), as required by 
CEQA, and adding the components necessary to meet the standards of an 
Environmental Impact Statement (EIS) under NEPA. This resulted in a 
document that was over 1,500 pages for the joint EIR/EIS, and included 
over 2,000 pages of appendices. The applicant was required by the State 
of California to pay for the cost of the California Public Utilities 
Commission (CPUC) environmental review, which involved a large team, 
working over multiple years to produce the document. CalAm paid for a 
NEPA consultant through the CPUC, but has not paid for any federal 
labor costs for MBNMS staff related to the NEPA process or permit 
application. No retroactive fees would be assessed; fees may only be 
assessed following the effective date of this notice and appropriate 
notice to CalAm. For the reasons stated throughout this notice, NOAA 
has determined that SUP fees for the continued existence of 
desalination pipelines are needed and appropriate.
    Comment 6: If ONMS decides to finalize the new SUP categories, they 
should not apply to the MPWSP because of the retroactive effect they 
would have on the project. This project has been underway for many 
years, and NOAA's action would add significant costs to the project.
    Response: NOAA would not retroactively assess fees for any costs 
incurred prior to the publication of this final notice. When the new 
category takes effect, existing applicants will be notified that the 
SUP category exists, and that fees may start to be assessed for the 
processing of that permit application. After that notification to the 
applicants, fees will be assessed from that date going forward.
    The MPWSP permit application was received in 2015, and NOAA has 
made every effort to inform the permit applicants of its intent to 
develop a new SUP category for desalination to cover some of these 
federal costs for the environmental review as well as future monitoring 
and other costs.
    Comment 7: Adding SUP categories for some desalination activities 
and using existing authority for others (i.e.; brine discharge and 
construction) creates additional regulatory barriers for desalination 
projects.
    Response: The addition of an SUP does not result in additional 
regulatory barriers for desalination projects. With the use of a single 
permit application for various authorizations and permits, NOAA intends 
to streamline the application process and reduce the burden on the 
applicant. An applicant would still need only submit one permit 
application, and NOAA determines the types of permits required for any 
activities, as it always has. Similarly, SUP categories are assessed 
through the same federal environmental review process pursuant to the 
NEPA and CEQA, as required, by which permits for disturbance of the 
seabed or discharge activities are evaluated.
    Moreover, as described above, NOAA has determined that a SUP 
category is necessary and appropriate to cover the continued existence 
of pipelines transporting seawater to and from a desalination facility. 
Carrying out a proposed desalination project in or near a national 
marine sanctuary requires agency review and permit approval before 
going forward. NOAA's authorizing state and federal permits for 
construction (coastal development) and brine discharge (NPDES) are 
considered under authorization regulations, and do not require that 
NOAA make a finding of no injury or loss to sanctuary resources. NOAA 
may also issue general permits for short-term activities, which are 
generally not ``intrusive''. Because a pipeline would continually be in 
long-term use (at least five years up to the life of the project), NOAA 
has considered this operation and extractive use as a separate activity 
under the statutory authority of NMSA Section 310, which requires 
monitoring and a fair market value for its use of a sanctuary resource 
(the substrate, seafloor, and/or water column).
    Comment 8: Open ocean intakes should be precluded from use in 
sanctuary waters as a matter of policy.
    Response: In 2010, NOAA published guidance recommending subsurface 
water intake for desalination projects rather than open ocean intakes. 
The comment to preclude open ocean intakes through regulation is beyond 
the scope of this action.
    Comment 9: NOAA should establish a third category of SUP for open 
ocean intakes, or combine open ocean intakes with subsurface intakes 
into a single SUP category for intakes.
    Response: The SUP category for the ``presence of a pipeline'' being 
finalized with this action includes pipelines placed both below and 
attached to the surface of the seafloor and would include open water 
intakes.
    Comment 10: Commenters also advocate for the inclusion of an 
additional category of SUP for brine discharges from desalination 
facilities primarily because additional monitoring would be needed.
    Response: SUPs cannot be issued for any activity that injures 
sanctuary resources. At this time, NOAA cannot determine categorically 
that brine discharges would not have negative impacts on sanctuary 
resources; therefore, brine discharges are not appropriate categories 
for an SUP. However, NOAA is reviewing and may authorize the NPDES 
permit for brine discharges for desalination, with terms and conditions 
for monitoring any potential impacts as needed. Both an SUP and an 
authorization may require continued monitoring and reporting for the 
life of the project.
    Comment 11: Authorization of permits granted by other agencies may 
or may not prevent sanctuary resources (including marine life) from 
being destroyed, lost, or injured.
    Response: The comment is accurate. The NMSA directs NOAA to allow 
public and private uses of the resources to the extent compatible with 
resource protection. 16 U.S.C. 1431(b)(6). The MBNMS regulations do not 
require a

[[Page 42304]]

finding of no injury for the issuance of an authorization (15 CFR 
922.49,). An authorization can be issued for certain prohibited 
activities to occur, after thorough analysis of impacts to sanctuary 
resources through the NEPA process.
    Comment 12: As currently written, it is unclear whether a 
desalination project would need to obtain one or two separate permits 
for the ``continued presence of a pipeline'' category to accommodate 
both an intake pipeline and discharge pipeline. This could lead to 
inconsistent application of rule, as well as create yet another 
disincentive for using subsurface intakes.
    Response: NOAA does not differentiate between an intake or 
discharge pipeline. This SUP category is intended to apply to any new 
pipeline transporting seawater to or from a desalination facility that 
will have a continued presence in the sanctuary.
    Comment 13: The category description should use clear language so 
that permit standards are consistent with the most current information 
available. Does NOAA intend to update the MBNMS Desalination Guidelines 
published in 2010 to account for new information?
    Response: At this time, the recommendations in the 2010 
Desalination Guidelines are still appropriate. If new information 
becomes available that would require NOAA to update the guidelines with 
new recommendations, NOAA would do so. NOAA will incorporate the most 
current standards in any permit condition when issuing an authorization 
or an SUP.
    Comment 14: NOAA's proposed SUP fees for the continuing presence of 
pipelines are duplicative of other state or local agencies fees (e.g.; 
CSLC).
    Response: It is not uncommon for multiple agencies to charge a fee 
for permits and/or leases for use of a public resource. When a project 
is proposed within the boundaries of MBNMS, it is NOAA's responsibility 
to assess the risk of issuing the permit and, if appropriate, apply its 
permitting authority as mandated by the NMSA. The fees associated with 
this SUP are designed to facilitate and streamline the federal 
responsibility to assess and monitor the potential impacts of a private 
use of a public resource. This is separate from, and occurs in addition 
to, the fees and costs associated with the issuance of the state 
permits.
    Comment 15: The costs imposed by these new SUP categories could 
deter investments in desalination plants, which are needed in 
California to alleviate water shortages.
    Response: NOAA understands and appreciates the need to alleviate 
water shortages in California. NOAA's action in creating this permit 
category is taken in response to this need to fulfill the NMSA purpose 
of facilitating uses of sanctuary resources to the extent compatible 
with resource protection. The SUP fees would be a small percentage of 
the overall costs of the desalination project and would be calculated 
in a way comparable to State fees and fees previously assessed by NOAA 
in similar circumstances (such as for submarine cables in sanctuaries). 
Based on NOAA's analysis of these prior transactions and experience 
with infrastructure projects in sanctuaries, the SUP fees are unlikely 
to have a significant deterrent effect.
    Comment 16: The two categories of SUP fees will discourage the 
development of subsurface intakes, the very design that NOAA has 
recommended and prefers to reduce environmental impacts in sanctuaries.
    Response: NOAA believes that subsurface feasibility will be 
determined by the appropriate studies, design and citing of the 
project. The SUP category for ``presence of a pipeline'' would apply to 
varied types of intakes. In addition, NOAA's decision to eliminate the 
proposed second category, for the use of sediment for filtration, 
reduces the overall fees and results in equal treatment for the 
continuing presence of a pipeline regardless of the type of intake.
    Comment 17: The agency should not charge fees when the ``FMV'' of 
the sediment, however calculated, is offset by increased costs incurred 
to minimize impacts to marine life in the sanctuary (i.e. the 
subsurface wells cost more money to install than open-ocean intakes).
    Response: NOAA's consideration of the proposed SUP categories for 
desalination facilities has taken into account most costs and fees 
related to these projects. Nonetheless, NOAA has eliminated the 
proposed second category, for the use of sediment for filtration. This 
would reduce the overall fees for a subsurface intake project.
    Comment 18: SUP categories of general applicability that target one 
state are inappropriate.
    Response: NOAA initially proposed to apply the SUP categories for 
desalination to the whole National Marine Sanctuary System, but noted 
that only three sanctuaries would ever likely need to consider a 
desalination project: Olympic Coast, Florida Keys, and Thunder Bay 
NMSs. NOAA acknowledges that the majority of studies from desalination 
projects used in the analysis were based in California, because that 
was the best available information. This is one of the reasons NOAA has 
decided to narrow the scope of the SUP so that it only applies to 
MBNMS.
    Comment 19: Pipelines related to sewage treatment and power 
generation are more widespread than desalination plants and should be 
analyzed in a similar fashion. ONMS offers no valid justification for 
singling out desalination plants in California for SUPs.
    Response: The proposed SUP Federal Register notice explicitly noted 
that the need for new additional pipelines for sewage treatment and 
power generation has not been established as most of the infrastructure 
for the existing facilities has been in place for many years. In 
contrast, desalination, or the need for a stable potable water supply, 
is a current issue along the West Coast with well documented studies on 
the topic. This is the same approach NOAA has taken in the past. In the 
2006 SUP notice NOAA stated:

    The list of categories of activities in this notice are not 
necessarily those activities NOAA thinks will be increasing in 
frequency in the future. Rather, the list represents all categories 
of activities for which NOAA has issued special use permits in the 
last few years or for which NOAA expects to receive an application 
in the near future (71 FR 4898).

    Moreover, given NOAA is now finalizing this SUP category to apply 
only in MBNMS, it is worth noting that MBNMS has specific regulatory 
language that does not allow permits to be issued to allow new sewage 
disposal facilities in the sanctuary. 15 CFR 922.132(f).
    Comment 20: The FMV calculation for the pipeline SUP is 
unreasonable and should be revisited.
    Response: The FMV calculation is a similar metric to one of the 
options the State uses to calculate the cost of the issuance of leases 
in submerged lands of the State for pipelines, conduits, or fiber optic 
cables. The calculation for the volume of the pipeline, which includes 
both its length and area, accounts for its total presence on or within 
the submerged lands. NOAA believes the FMV would add very little 
additional cost to the production of fresh water (at approximately 1 
cent for every 215 gallons of water produced), for one hypothetical 
design comparable to what is being considered for coastal California.
    Comment 21: Some of the pipelines in question will actually be 
bored as slant wells into subsurface aquifers. This is not 
``filtering'' and no fee should be

[[Page 42305]]

charged for the use of sand as ``filtration''.
    Response: NOAA believes that the proposed SUP category for the use 
of sediment as filtration was justified and provided references in the 
proposed notice. Nevertheless, NOAA has elected to remove the SUP for 
``use of sediment to filter seawater for desalination''.
    Comment 22: In the fiber optic cable context, NOAA economists 
issued an economic report describing and applying accepted 
methodologies for calculating FMV. This FMV should undergo the level of 
analysis conducted in that example.
    Response: Given the limited availability of studies for this 
activity, NOAA believes the level of analysis conducted for the 
desalination SUP category is sufficient, but will continue to monitor 
this activity. If additional information becomes available or relevant 
for FMV calculation, NOAA will revisit the issue and may, as needed, 
revise the FMV calculation.
    Comment 23: The FMV for sand filtration bases its calculation on 
the price of a commercially sold cubic foot of sand, discounted for 
overhead. This is not a reasonable comparison, given less costly means 
of filtration.
    Response: NOAA did not base the calculation of the FMV on the price 
of a commercially sold cubic foot of sand. Rather, NOAA compared that 
cost to the FMV calculated for this use to provide perspective in an 
area where little data is available. NOAA has elected to remove the SUP 
for ``use of sediment to filter seawater for desalination'' as 
described above.
    Comment 24: The agency fails to recognize that pretreatment is 
still necessary even for subsurface intakes.
    Response: NOAA did not intend to imply that pre-treatment was not 
necessary for subsurface intakes. Rather, NOAA compared the information 
about pre-treatment cost to provide perspective in an area where little 
data is available.
    Comment 25: SUPs were not raised as a potential requirement for 
desalination projects prior to this notice. SUPs were also not included 
in the 2010 Desalination Guidelines.
    Response: While NOAA did not formally have categories for this 
activity until now, NOAA has made every effort to inform existing 
permit applicants of its intent to develop new SUP categories for 
desalination since 2015. It is NOAA's responsibility to determine the 
appropriate type of permit for any permit application, whether a 
sanctuary general permit, authorization, or SUP. At the time of 
publishing the 2010 guidelines, NOAA had not yet conducted a full 
analysis of potential SUP categories for desalination facilities. Since 
then, NOAA has conducted this analysis and has considered statutory and 
regulatory factors, including the no-injury threshold for SUPs, the 
nature of a desalination pipeline as a continued use of public 
resources in a way that may preclude other use of the resource, the 
ability of the agency to combine and streamline its permitting and 
environmental review regardless of an additional SUP category, and the 
ability to apply SUP fees to facilitate more efficient issuance and 
administration of desalination permits and sanctuary management under 
NMSA Section 310(d)(3).
    Comment 26: The agency should clarify that it does not intend to 
charge fees for portions of the pipeline that are not on or below the 
sanctuary lands.
    Response: The explanation on charging fees only for portions of 
pipelines in the sanctuary is included in this Federal Register notice 
under Section III. When defining the length of the pipeline for the 
pipeline SUP category, it states ``L = length of the pipeline (in) for 
the portion within the sanctuary''. NOAA will not include the portion 
of the pipeline that is above the mean high water mark.
    Comment 27: NOAA should allow recreational fishing in sanctuaries.
    Response: This comment is beyond the scope of this action.

V. Classification

A. National Environmental Policy Act

    NOAA has concluded that this action will not have a significant 
effect, individually or cumulatively, on the human environment. This 
action is categorically excluded from the requirement to prepare an 
Environmental Assessment or Environmental Impact Statement in 
accordance with the NOAA Categorical Exclusion G7 and because there are 
no extraordinary circumstances precluding the application of this 
categorical exclusion. Specifically, this action is a notice of an 
administrative and legal nature, and any future effects of subsequent 
actions are too broad, speculative, or conjectural to lend themselves 
to meaningful analysis and will be subject to later NEPA analysis. This 
action would only establish the two new special use permit categories 
and the methods for calculating fair market value for applicable 
projects. It does not commit the outcome of any particular federal 
action taken by NOAA. Furthermore, individual permit actions taken by 
ONMS will be subject to additional case-by-case analysis, as required 
under NEPA, which will be completed as new permit applications are 
submitted for specific projects and activities. In addition, NOAA may, 
in certain circumstances, combine its special use permit authority with 
other regulatory authorities to allow activities not described above 
that may result in environmental impacts and thus require the 
preparation of an environmental assessment or environmental impact 
statement. In these situations, NOAA will ensure that the appropriate 
NEPA documentation is prepared prior to taking final action on a permit 
or making any irretrievable or irreversible commitment of agency 
resources. The NEPA analysis would describe the impacts of the full 
project (i.e., both construction (allowed with an authorization) and 
operations (allowed with an SUP)).

B. Paperwork Reduction Act

    Notwithstanding any other provisions of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with a collection of information subject to the 
requirements of the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et 
seq., unless that collection of information displays a currently valid 
Office of Management and Budget (OMB) control number. Applications for 
the special use permits discussed in this notice involve a collection-
of information requirement subject to the requirements of the PRA. OMB 
has approved this collection-of-information requirement under OMB 
control number 0648-0141. The collection-of-information requirement 
applies to persons seeking special use permits and is necessary to 
determine whether the proposed activities are consistent with the terms 
and conditions of special use permits prescribed by the NMSA. Public 
reporting burden for this collection of information is estimated to 
average twenty four (24) hours per response (application, annual 
report, and financial report), including the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. This estimate does not include additional 
time that may be required should the applicant be required to provide 
information to NOAA for the preparation of documentation that may be 
required under NEPA.

    Authority: 16 U.S.C. 1431 et seq.


[[Page 42306]]


    Dated: August 11, 2017.
John Armor,
Director, Office of National Marine Sanctuaries.

References

1. MBNMS Guidelines for Desalination Plants in the MBNMS; May 2010, 
online: http://montereybay.noaa.gov/resourcepro/resmanissues/pdf/050610desal.pdf.
2. ONMS Fair Market Value Analysis for a Fiber Optic Cable Permit in 
National Marine Sanctuaries, Aug 2002.
3. NOAA Final Notice of Applicability of Special Use Permit 
Requirements to Certain Categories of Activities Conducted Within 
the National Marine Sanctuary System; May 2013, online: http://sanctuaries.noaa.gov/management/fr/78fr25957.pdf.
4. NOAA Notice of Applicability of Special Use Permit Requirements 
to Certain Categories of Activities Conducted Within the National 
Marine Sanctuary System; January 2013, online: https://sanctuaries.noaa.gov/management/fr/78fr2957.pdf.
5. NOAA Office of National Marine Sanctuaries Final Policy and 
Permit Guidance for Submarine Cable Projects; September 2011, 
online: http://sanctuaries.noaa.gov/management/fr/submarinecablespolicy.pdf.
6. Moss Landing Marine Lab, Ecological Effects of the Moss Landing 
Powerplant Thermal Discharge; June 2006.
7. Ballard Marine Construction report prepared for Monterey Regional 
Water Pollution Control Agency; 2014.
8. Chambers Group Memo: Pretreatment and Design Considerations for 
Large-Scale Seawater Facilities; 2010, online: http://www.mwdoc.com/cms2/ckfinder/files/files/Evaluation%20of%20Potential%20Impacts%20%20to%20Marine%20Life%20by%20Slant%20Wells%20-%20MLPA%20DEIR%20Comment%202010-10-13.pdf.
9. NOAA National Centers for Environmental Information Web site; 
Table 1; online: https://www.ngdc.noaa.gov/mgg/global/etopo1_ocean_volumes.html.
10. Final Notice of Fee Calculations for Special Use Permits; 80 FR 
72415 (November 19, 2015); online: https://www.federalregister.gov/documents/2015/11/19/2015-29524/final-notice-of-fee-calculations-for-special-use-permits.
11. Final Notice of Applicability of Special Use Permit Requirements 
to Certain Categories of Activities Conducted Within the National 
Marine Sanctuary System; 71 FR 4898 (January 30, 2006); online: 
https://www.federalregister.gov/documents/2006/01/30/06-808/final-notice-of-applicability-of-special-use-permit-requirements-to-certain-categories-of-activities.

[FR Doc. 2017-18995 Filed 9-6-17; 8:45 am]
 BILLING CODE 3510-NK-P



                                                  42298                      Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices

                                                    Dated: August 30, 2017.                               appropriate for this category of actions,             and comparative cost analyses were
                                                  Gary Taverman,                                          explains why issuance of a new SUP                    regionally based, the SUP category only
                                                  Deputy Assistant Secretary for Antidumping              category will not result in additional                applies to MBNMS.
                                                  and Countervailing Duty Operations,                     regulatory review, explains how the                      Desalination is the process by which
                                                  performing the non-exclusive functions and              SUP category will facilitate and                      salts and other minerals are removed
                                                  duties of the Assistant Secretary for                   streamline the administration and                     from seawater or brackish water to
                                                  Enforcement and Compliance.                             management of desalination permits, as                produce potable fresh water. The
                                                  Appendix                                                appropriate, and provides responses to                installation and operation of
                                                                                                          public comments received. At this time,               desalination facilities near a national
                                                                                                          most proposed desalination activity in                marine sanctuary may involve access to
                                                  List of Topics Discussed in the Preliminary             sanctuaries occurs in MBNMS, and the                  and use of sanctuary resources and
                                                  Decision Memorandum                                     scientific studies used for                           include activities prohibited by a
                                                  I. Summary                                              environmental impact and comparative                  sanctuary’s regulations. One potentially
                                                  II. Background                                          cost analyses were regionally based, so               applicable prohibition is for activities
                                                  III. Scope of the Order                                 the SUP category only applies to                      that cause the alteration of, or
                                                  IV. Application of the Countervailing Duty                                                                    placement of structures on or in the
                                                                                                          MBNMS.
                                                        Law to Imports from the PRC                                                                             seabed 15 CFR 922.132(a)(4). For
                                                  V. Diversification of the PRC’s Economy                 DATES: This notice becomes effective on
                                                                                                                                                                example, installation of certain
                                                  VI. Use of Facts Otherwise Available and                September 7, 2017.
                                                        Adverse Inferences                                                                                      desalination facility structures such as
                                                                                                          ADDRESSES: Please see FOR FURTHER                     an intake or outfall pipeline on,
                                                  VII. Subsidies Valuation
                                                                                                          INFORMATION CONTACT. This Federal                     beneath, or attached to the ocean floor
                                                  VIII. Interest Rate Benchmarks, Discount
                                                        Rates, Inputs and Electricity                     Register document is also accessible via              would be prohibited by sanctuary
                                                  IX. Analysis of Programs                                the Internet at: http://                              regulations and could only occur with
                                                  X. Conclusion                                           montereybay.noaa.gov.                                 sanctuary approval. Another prohibition
                                                  [FR Doc. 2017–18975 Filed 9–6–17; 8:45 am]              FOR FURTHER INFORMATION CONTACT:                      potentially applicable to desalination
                                                  BILLING CODE 3510–DS–P12                                Bridget Hoover, Monterey Bay National                 projects is discharging or depositing any
                                                                                                          Marine Sanctuary, 99 Pacific Street                   material or matter from within or into
                                                                                                          Bldg. 455A, Monterey, CA 93940, (831)                 sanctuaries 15 CFR 922.132(a)(2). The
                                                  DEPARTMENT OF COMMERCE                                  647–4217, bridget.hoover@noaa.gov.                    disposal of brine effluent from a
                                                                                                          SUPPLEMENTARY INFORMATION: Pursuant                   desalination facility, and most other
                                                  National Oceanic and Atmospheric                                                                              materials, into sanctuary waters would
                                                                                                          to Section 310 of the National Marine
                                                  Administration                                                                                                be prohibited unless approved by the
                                                                                                          Sanctuaries Act, 16 U.S.C. 1441, NOAA
                                                                                                          issues this notice of a Special Use                   sanctuary.
                                                  Final Notice of a New Category of                                                                                Multiple federal, state and local
                                                  Special Use Permit Related to the                       Permit (SUP) category applicable to
                                                                                                          Monterey Bay National Marine                          permits are typically required for any
                                                  Operation of Desalination Facilities                                                                          construction and operation of
                                                  Producing Potable Water for                             Sanctuary (MBNMS) for the continued
                                                                                                          presence of a pipeline transporting                   desalination facilities, including when a
                                                  Consumption                                                                                                   facility is proposed near a national
                                                                                                          seawater to or from a desalination
                                                  AGENCY:  Office of National Marine                      facility.                                             marine sanctuary. In 2010, NOAA, in
                                                  Sanctuaries (ONMS), National Ocean                                                                            collaboration with the California Coastal
                                                  Service (NOS), National Oceanic and                     I. Background                                         Commission and California Central
                                                  Atmospheric Administration (NOAA).                      Introduction to Desalination Projects in              Coast Regional Water Quality Control
                                                  ACTION: Notice.                                         Sanctuaries                                           Board, published specific guidelines for
                                                                                                                                                                new desalination plants in a report
                                                  SUMMARY:   On January 12, 2017, NOAA                       There is a growing public concern                  titled Guidelines for Desalination Plants
                                                  published a notice in the Federal                       about ensuring adequate water resources               in Monterey Bay National Marine
                                                  Register proposing two new categories                   to support populations along the                      Sanctuary (MBNMS 2010, http://
                                                  of special use permits (SUP) related to                 California coast. Communities have                    montereybay.noaa.gov/resourcepro/
                                                  the operation of desalination facilities,               been working together to develop                      resmanissues/pdf/050610desal.pdf).
                                                  and requesting public comment. NOAA                     strategies for addressing the long-term               These non-regulatory guidelines were
                                                  hereby gives public notice that the                     drought California has recently                       developed to help ensure that any future
                                                  Office of National Marine Sanctuaries                   experienced and the resulting water                   desalination plants in or adjacent to
                                                  will adopt a new SUP category pursuant                  scarcity. In the Monterey Bay area,                   MBNMS would be sited, designed, and
                                                  to the requirements of Section 310 of the               desalination has been identified as one               operated in a manner that results in
                                                  National Marine Sanctuaries Act                         of the essential components of water                  minimal impacts to the marine
                                                  (NMSA). The SUP category is for the                     resource portfolios. NOAA’s initial                   environment. These guidelines address
                                                  continued presence of a pipeline                        proposal was to apply the proposed SUP                numerous issues associated with
                                                  transporting seawater to or from a                      categories across the National Marine                 desalination including site selection,
                                                  desalination facility. The second                       Sanctuary System, which could have                    construction and operational impacts,
                                                  category previously proposed for the use                resulted in the SUP categories applying               plant discharges, and intake systems.
                                                  of sediment to filter seawater for                      to Olympic Coast and Florida Keys                     The guidelines encourage the use of
                                                  desalination is removed. This notice                    national marine sanctuaries (the other                subsurface intake systems and
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                                                  also includes background information                    two sanctuaries adjacent to land such                 associated pipelines, which have less
                                                  on the use of desalination in Monterey                  that desalination facilities could be                 potential to cause environmental harm
                                                  Bay National Marine Sanctuary                           constructed) in addition to MBNMS (82                 to sensitive marine organisms and
                                                  (MBNMS) and ONMS regulations                            FR 3751). However, since most                         habitats than other types of intakes.
                                                  applicable to activities that disturb                   desalination activity in sanctuaries                  Open water intakes have the potential to
                                                  submerged lands or discharge into                       occurs in MBNMS, and the scientific                   trap organisms on the intake screens
                                                  sanctuaries, explains why a SUP is                      studies used for environmental impact                 (impingement) or impact organisms


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                                                                            Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices                                                   42299

                                                  small enough to pass through the screen                 protection of sanctuary resources (16                 determined that issuance of this new
                                                  during the processing of the saltwater                  U.S.C. 1441(c)). SUPs may only be                     SUP category will not result in
                                                  (entrainment). Subsurface intakes have                  issued for activities that can be                     additional regulatory review of
                                                  the potential to minimize or eliminate                  conducted in a manner that does not                   desalination proposals, because an
                                                  impingement and entrainment impacts                     destroy, cause the loss of, or injure                 applicant would still need only submit
                                                  (Chambers Group Memo 2010). When                        sanctuary resources (16 U.S.C. 1441(c)).              one permit application even if NOAA
                                                  subsurface intakes are not feasible, and                Finally, SUPs may authorize the                       ultimately issues multiple permits for
                                                  a new pipeline for an open water intake                 conduct of an activity for up to five                 the action, and because the same
                                                  is necessary, placement should be                       years and may be renewed (16 U.S.C.                   environmental review process pursuant
                                                  thoroughly evaluated to minimize                        1441(c)).                                             to the National Environmental Policy
                                                  disturbances to biological resources. In                   As mentioned above, NOAA has the                   Act (NEPA) and California
                                                  addition, the guidelines encourage co-                  ability to issue an authorization for a               Environmental Quality Act (CEQA), as
                                                  location with existing facilities (e.g.,                desalination project. Authorizations                  required, would apply.
                                                  sewage treatment plants) to dilute brine                would address the desalination projects’                 While NOAA could conceivably
                                                  by blending it with existing effluent for               pipeline installation, maintenance, and               propose new SUP categories for other
                                                  ocean discharges.                                       removal, and brine discharge within the               types of pipelines, utility lines, or use
                                                     The guidelines also examine which                    national marine sanctuary. For a                      of sediment associated with activities
                                                  statutory and regulatory authorities                    desalination facility intake or outfall, an           other than desalination (e.g., sewage
                                                  would apply to desalination projects                    authorization of a California Coastal                 treatment, or power generating
                                                  located near national marine                            Development permit would be required                  facilities), NOAA elected to limit the
                                                  sanctuaries. The guidelines explain that                for any seafloor disturbance, prior to                focus of this SUP category to
                                                  NOAA could potentially allow the                        issuance of an SUP for the continued                  desalination activities in MBNMS, as
                                                  construction and operation of                           presence of a pipeline transporting                   desalination is currently a pressing
                                                  desalination facilities through sanctuary               seawater to or from a desalination                    issue on the California central coast.
                                                  authorization of other state and federal                facility. Brine discharges would be                   There is enough information on the
                                                  permits, such as the State of California’s              covered by an authorization of another                types of activities associated with the
                                                  Coastal Development Permit and                          approval, such as the NPDES permit.                   continued presence of pipelines for
                                                  National Pollution Discharge                               In addition, the NMSA gives NOAA
                                                                                                                                                                desalination to make a determination
                                                  Elimination System (NPDES) permit.                      authority to develop categories of SUP
                                                                                                                                                                that under certain conditions, and if
                                                                                                          and to assess fees that may be applied
                                                  Authorizations and Special Use Permits                                                                        correctly sited and compliant with
                                                                                                          to expenses of issuing and
                                                  (SUP)                                                                                                         MBNMS Desalination Guidelines, the
                                                                                                          administering SUPs and expenses of
                                                     This section provides information on                                                                       continued presence of desalination
                                                                                                          managing national marine sanctuaries
                                                  the difference between authorizations                                                                         pipelines is not likely to result in injury
                                                                                                          (16 U.S.C. 1441(d)(3)). In the case of a
                                                  and special use permits (SUPs); explains                                                                      to sanctuary resources, which is a
                                                                                                          proposal for a desalination project in or
                                                  why an SUP category for the continued                                                                         requirement for SUPs. It would be too
                                                                                                          near MBNMS, NOAA has found that
                                                  presence of a pipeline transporting                                                                           speculative at this point for NOAA to
                                                                                                          there is a significant time and resource
                                                  seawater to and from a desalination                                                                           analyze impacts of other types of
                                                                                                          investment to review the environmental
                                                  facility is appropriate; explains how this                                                                    pipelines, or other project impacts in
                                                                                                          analysis and process a permit
                                                  SUP category will facilitate sanctuary                                                                        the absence of a more clearly defined
                                                                                                          application for this type of large-scale
                                                  management in a way that enables                                                                              need or proposal for such activities.
                                                                                                          coastal development project. Applicable
                                                  desalination facilities, as appropriate;                SUP fees that may be assessed for                        The second category previously
                                                  and articulates the scope of coverage of                permitting certain aspects of                         proposed for the use of sediment to
                                                  this SUP category.                                      desalination projects would include the               filter seawater for desalination has been
                                                     Depending on the type of activity or                 processing of applications, preparation               removed from this final notice as NOAA
                                                  project proposed, NOAA has various                      and review of environmental analysis,                 recognizes that it may be a disincentive
                                                  regulatory mechanisms it can use to                     as well as long-term monitoring of the                for the industry to select subsurface
                                                  allow otherwise prohibited activities to                impacts of the activity to sanctuary                  seawater intake, which is considered to
                                                  occur within national marine                            resources, and assessment of fair market              have a smaller environmental impact
                                                  sanctuaries. Two of these mechanisms                    value for the use of the resource.                    than other types of intake. Moreover, the
                                                  are authorizations and SUPs.                               NOAA has determined that the                       remaining SUP category will apply only
                                                  Authorizations allow an entity to                       continued use of sanctuary resources                  to MBNMS because NOAA is not able
                                                  conduct an activity prohibited by                       (namely, the substrate, seafloor, and/or              to determine that the activities covered
                                                  sanctuary regulations if such activity is               water column) by the presence of the                  under this SUP category would always
                                                  specifically authorized by any valid                    pipeline could be carried out in a                    meet the ‘‘no injury’’ criteria for SUPs
                                                  Federal, State, or local lease, permit,                 manner that is consistent with Section                specified in the NMSA for all sites, at
                                                  license, approval, or other authorization               310 of the NMSA. As such, an SUP is                   this time.
                                                  issued after the effective date of                      an appropriate mechanism for NOAA to                  NMSA Special Use Permits
                                                  sanctuary regulation (15 CFR 922.49). In                approve the continued presence of a
                                                  contrast, SUPs can only be issued for                   pipeline and recover applicable costs                   This section provides more
                                                  activities that are needed: (1) To                      associated with managing the sanctuary                information of the history of SUPs, how
                                                  establish conditions of access to and use                                                                     SUPs are applied, and how SUP fees are
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                                                                                                          in a manner that allows desalination
                                                  of any sanctuary resources; or (2) to                   projects to occur within or near MBNMS                assessed and applied.
                                                  promote public use and understanding                    and facilitates the more efficient
                                                  of a sanctuary resource (16 U.S.C.                      administration of desalination permits                Olympic Coast and Stellwagen Bank national
                                                  1441(a)). In addition, the activities                                                                         marine sanctuaries, where the installation of the
                                                                                                          and allowances.1 NOAA has further                     infrastructure was considered via a separate
                                                  covered under an SUP must be                                                                                  authorization and the continued presence of the
                                                  compatible with the purposes for which                    1 This management approach has been applied         infrastructure was addressed through an SUP (76
                                                  the sanctuary is designated and with                    with respect to submarine fiber optic cables in       FR 56973; ONMS 2002).



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                                                  42300                     Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices

                                                     Congress first granted NOAA the                      monitoring costs; and (3) fair market                 II. Description of New Special Use
                                                  authority to issue SUPs for the conduct                 value (FMV) of the use of the sanctuary               Permit Category
                                                  of specific activities in national marine               resource (16 U.S.C. 1441(d)). On
                                                  sanctuaries in the 1988 Amendments to                   November 19, 2015, NOAA published a                      With this final notice, NOAA adds a
                                                  the National Marine Sanctuaries Act                     Federal Register notice finalizing the                new category of SUP for ‘‘the continued
                                                  (NMSA; 16 U.S.C. 1431 et seq.) (Pub. L.                 methods, formulas and rationale for the               presence of a pipeline transporting
                                                  100–627). NMSA section 310 allows                       calculations it uses to assess fees                   seawater to or from a desalination
                                                  NOAA to issue SUPs to establish                         associated with the existing seven SUP                facility’’. At this time, the special use
                                                  conditions of access to and use of any                  categories (80 FR 72415).                             permit category goes into effect
                                                  sanctuary resource or to promote public                    NOAA will use the same methods                     immediately upon the effective date of
                                                  use and understanding of a sanctuary                    previously established in the Federal                 this notice and fees may be assessed
                                                  resource. In the National Marine                        Register for assessing an application fee,            from this date going forward.
                                                  Sanctuaries Amendments Act of 2000                      administrative costs, and
                                                                                                                                                                   NOAA determined that pipelines
                                                  (Pub. L. 106–513), Congress added a                     implementation and monitoring costs of
                                                                                                                                                                transporting seawater for purposes of
                                                  requirement that prior to requiring an                  this new SUP category. NOAA will
                                                                                                          require a non-refundable $50                          onshore desalination, that have been
                                                  SUP for any category of activity, NOAA
                                                  shall give appropriate public notice.                   application fee. The labor costs                      laid on, attached to, or drilled or bored
                                                  NMSA section 310(b) states that                         assessed, as part of administrative costs,            within the submerged lands of a
                                                  ‘‘[NOAA] shall provide appropriate                      will be based on a Federal regional labor             national marine sanctuary, after
                                                  public notice before identifying any                    rate that will be updated every year to               appropriate environmental review,
                                                  category of activity subject to a special               account for staff changes as well as                  application of best management
                                                  use permit under subsection (a).’’ On                   inflation. Administrative costs will                  practices, and compliance with MBNMS
                                                  January 30, 2006, NOAA published a                      include: Any environmental analyses                   Desalination Guidelines, could remain
                                                  list of five categories for which the                   and consultations associated with                     in place without causing injury to
                                                  requirements of SUPs would be                           evaluating the SUP application and                    sanctuary resources. Therefore, NOAA’s
                                                  applicable (71 FR 4898). NOAA further                   issuing the permit; equipment used in                 establishment of an SUP category is
                                                  refined this list of categories for which               permit review and issuance (e.g.,                     appropriate. For purposes of this SUP
                                                  an SUP could be issued on May 3, 2013                   vessels, dive equipment, and vehicles);               category, NOAA is using ‘‘transporting
                                                  (78 FR 25957).                                          and general overhead. The                             seawater to or from a desalination
                                                     In January 2013, NOAA clarified that                 administrative fees may be assessed                   facility’’ to mean water being pumped
                                                  simply being consistent with one of the                 even if after full environmental review,              from MBNMS or the submerged lands of
                                                  categories does not guarantee approval                  it is deemed that an authorization or                 MBNMS into a facility and/or
                                                  of an SUP for any given activity.                       SUP is not appropriate and will not be                concentrated brine water being pumped
                                                  Applications are reviewed for                           issued by MBNMS. Where applicable,                    out of a facility through a pipe and into
                                                  consistency with the SUP requirements                   applicants would be notified of the                   MBNMS (brine discharge is addressed
                                                  in section 310(c) of the NMSA, 16                       estimate of the fees resulting from                   below).
                                                  U.S.C. 1441(c), as well as the published                administrative costs at the onset of the
                                                  description of the category. Of particular              application process and would need to                    In order to avoid or minimize impacts
                                                  importance, SUPs may only be issued                     acknowledge willingness to pay before                 to the marine environment due to the
                                                  for activities NOAA determines can be                   NOAA processes the permit application.                presence of the pipeline, the best
                                                  conducted in a manner that does not                     The permit issuance would be                          management practices (BMP) from the
                                                  destroy, cause the loss of, or injure                   conditioned on payment of these fees.                 MBNMS Desalination Guidelines will be
                                                  sanctuary resources (NMSA section                       For desalination projects that have                   followed to ensure proper siting, sizing,
                                                  310(c)(3), 16 U.S.C. 1441(c)(3)).                       submitted complete permit applications                engineering, and configuration of intake
                                                  Individual permit applications that                     and are in the environmental review                   and outfall pipelines. New desalination
                                                  would require an SUP are also reviewed                  process as of the effective date of this              pipelines are manufactured with high
                                                  with respect to all other pertinent                     notice, SUP fees will not be assessed                 tensile stainless steel to avoid breakage
                                                  regulations and statutes, including                     retroactively but may be assessed                     or corrosion in seawater and would be
                                                  NEPA, 42 U.S.C. 4321 et seq, and any                    moving forward beginning on the                       monitored annually to evaluate their
                                                  required consultations, permits or                      effective date of this notice.                        continued integrity. Submerged
                                                  authorizations. NOAA would assess                          NOAA may also assess a fee for costs               pipelines should have little propensity
                                                  whether activities associated with                      associated with the conduct or                        for movement or shifting. There are
                                                  proposed desalination projects are                      implementation of a permitted activity                many pipelines associated with power
                                                  appropriate for this new SUP category                   as well as the costs of monitoring the                plants and wastewater facilities in this
                                                  on a case-by-case basis, and as part of                 activity. The latter costs would cover                region that have been in existence for
                                                  the federal environmental review                        the expenses of monitoring the impacts                more than 50 years with little to no
                                                  process required by NEPA. Under                         of a permitted activity and compliance                adverse impacts due to their presence
                                                  NEPA, NOAA would analyze the                            with the terms and conditions of the                  on the seafloor (MLML 2006; MRWPCA
                                                  environmental impacts of the entire                     permit. Examples of implementation                    2014).
                                                  proposed federal action (i.e., the                      and monitoring costs can include the
                                                  approval or denial of a desalination                    cost of site preparation, site                           Existing pipelines installed prior to
                                                  project) including the issuance of any                  examination, and the use of vessels and               the publication of the final Federal
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                                                  SUPs and sanctuary authorizations.                      aircraft.                                             Register notice for this new SUP
                                                     Pursuant to NMSA section 310(d),                        Lastly, NOAA can assess a fee for fair             category are exempt from this SUP
                                                  NOAA may assess three types of fees                     market value (FMV) for use of sanctuary               category. Moreover, existing pipelines
                                                  associated with the conduct of any                      resources. NOAA’s method for assessing                that do not fall under the purview of
                                                  activity under an SUP: (1)                              FMV for this new category of SUP is                   this SUP category include sewage
                                                  Administrative costs of issuing the                     described in subsequent sections of this              treatment plant, power plant and
                                                  permit; (2) implementation and                          Federal Register notice.                              aquaculture facility pipes.


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                                                                            Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices                                           42301

                                                  III. Fair Market Value Calculation                      cables (CCR Title 2. Division 3. Chapter              water pipeline project in Southern
                                                     NOAA will use the same methods                       1. Article 2 CCR 2003. (Rent and other                California that uses desalination to
                                                  previously established in the Federal                   considerations)(a)(4)). In order to                   provide drinking water in order to
                                                  Register for assessing an application fee,              calculate the cost, the CSLC uses one of              estimate the magnitude of costs of
                                                  administrative costs, and                               three approaches: A cost based on a                   regulatory compliance (not fair market
                                                  implementation and monitoring costs of                  linear value (cost per diameter inch per              value) associated with the permitting of
                                                  the new SUP category (November 19,                      lineal foot of pipe, cable, conduit within            desalination facilities in a real-world
                                                  2015; 80 FR 72415).                                     the state lands); a case by case rate to              setting. That open water pipeline project
                                                     The annual fair market value for the                 process an environmental impact report                was proposed by Cabrillo, LLC and
                                                  continued presence of a pipeline                        which is paid upfront; or nine percent                Poseidon, LLC and received a permit by
                                                  transporting seawater to or from a                      of the appraised value of the leased                  the California Coastal Commission in
                                                  desalination facility will be calculated                land. In order to calculate the FMV of                2008. The CSLC required the project to
                                                  by assessing the volume of the pipeline                 the continued presence of a pipeline,                 invest in various offset and restoration
                                                  in cubic inches multiplied by a value of                NOAA selected to use a mathematical                   efforts to mitigate the impacts of the
                                                  $0.02 per cubic inch. The annual FMV                    approach based on the size and                        facility, such as obtaining 25,000 tons of
                                                  equation is:                                            footprint of the project pipelines within             carbon offsets for the construction and
                                                                                                          the sanctuary. Therefore, NOAA’s                      operational impacts. In that project, the
                                                  Annual FMV = ((V × $0.02/in3) × N)/yr                   monetary multiplier is comparable to                  average offset price from 2011 to 2016
                                                  Where:                                                  the first approach the CSLC could                     was $14.87 per ton of carbon offset, for
                                                  V = volume of the pipeline (in3) = ((p × r2)            consider.                                             a total of $371,750. In addition, the
                                                       × L);                                                                                                    facility was required to restore a
                                                  p = 3.14159;                                            Example
                                                                                                                                                                minimum of 37 acres of wetlands (up to
                                                  r = radius of the pipeline (in); and                       In the FMV example provided below,                 55.4 acres) with a non-cancelable
                                                  L = length of the pipeline (in) for the portion         a special use permit for a desalination
                                                       within the sanctuary. For more than one                                                                  deposit of $3.7 million and to provide
                                                                                                          plant project includes one, 100-foot long             a deposit of $25,000 to the CSLC to
                                                       pipeline, the average length of all
                                                       pipelines will be calculated.                      seawater intake pipelines with a 15-inch              reimburse staff expenses incurred to
                                                  N = number of pipelines.                                radius to be bored into the submerged                 monitor compliance with the terms of
                                                                                                          lands of a sanctuary.                                 the lease. While these costs associated
                                                     FMV costs will be paid as annual rent
                                                  for the duration of the permit. In                      Annual FMV = ((V × $0.02/in3) × N)/yr                 with environmental compliance are not
                                                  developing the FMV calculation for this                 V = (p r2 × L)                                        directly comparable with the FMV for
                                                  SUP category, NOAA examined: A                          p = 3.14159                                           this new SUP category, they provide
                                                  conceptually similar SUP category for                   r = 15 in                                             context for the scale of costs required by
                                                  the continued presence of submarine                     L = (100 ft) × (12 in/ft) = 1200 in                   various agencies to permit or authorize
                                                                                                          V = 3.14159 × (15 in)2 × 1200 in = 848,230            large coastal projects such as a
                                                  cables; the California State Lands                           in3
                                                  Commission (CSLC) lease process for                                                                           desalination plant.
                                                                                                          N = number of pipelines = 1
                                                  pipelines, conduit, or fiber optic cables;              Annual FMV = ((848,230 in3 × $0.02/in3) ×             Conclusion
                                                  and offset requirements established by                       1)/yr
                                                  CSLC for an open water desalination                     Annual FMV for a pipeline of this size =                The fees that NOAA may assess per
                                                  project in Southern California.                              $16,964/yr.                                      the above calculations are comparable to
                                                     NOAA’s FMV calculation for the                                                                             other agencies’ fees for desalination
                                                                                                             This annual cost would be applicable
                                                  continued presence of submarine cables                                                                        facilities and not prohibitively
                                                                                                          for the length of the permit.
                                                  in a national marine sanctuary uses the                    Using the above calculation, a single              expensive. For a proposed desalination
                                                  overall linear distance (length) the                    pipeline of this size would have an                   project that would require an SUP,
                                                  infrastructure occupies on or within the                annual FMV of $16,964/yr. This                        NOAA considered the annual cost of the
                                                  seafloor within the sanctuary in                        arrangement could be used for a                       fees based on the example presented in
                                                  assessing FMV (‘‘Fair Market Value                      desalination facility that would produce              this notice, and converted it to a dollar
                                                  Analysis for a Fiber Optic Cable Permit                 approximately one million gallons of                  per gallon figure that can be applied to
                                                  in National Marine Sanctuaries’’; 67 FR                 water per day or 365 million gallons of               future proposed projects of varying size
                                                  55201). NOAA’s FMV methodology to                       water per year. Thus, the example of the              and scale. NOAA determined that the
                                                  assess a fee for the presence of a                      FMV for the continued presence of 1                   total cost of the fair market value using
                                                  pipeline uses the volume of the                         pipeline within MBNMS would add a                     the SUP category would amount to
                                                  pipeline, which includes both its length                cost of $0.0000465/gallon, or                         approximately $0.0000465/gallon for a
                                                  (linear distance) and area, thus                        approximately 1 cent for every 215                    facility of a scale similar to the example
                                                  accounting for its total presence on or                 gallons of freshwater produced. This                  used in this notice (i.e., one 100-foot
                                                  within the submerged lands.                             figure is obtained by dividing the FMV                pipelines for a 1 MGD facility). As
                                                     In addition, NOAA surveyed                           for the continued presence of a pipeline              stated above, this would be in addition
                                                  comparable fees assessed by the State of                by 365 million gallons/year, since the                to the potential administrative cost
                                                  California for the issuance of leases in                example assumes a one million gallons                 associated with the issuance of the
                                                  submerged lands of the state for                        per day capacity. The calculation is:                 permit, including the environmental
                                                  pipelines, conduits or fiber optic cables.              ($16,964/year)/(365 million gallons/                  review and application review of an
                                                  The value of $0.02 per cubic inch of                    year) = $0.0000465/gallon.                            SUP, and implementation and
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                                                  pipeline was established because NOAA                                                                         monitoring costs, as appropriate.
                                                  considers this to be a similar metric (i.e.,            Cost Comparison for Open Water Intake                   This notice finalizes the list of eight
                                                  a state lease for allowing pipelines) to                Desalination Facility                                 categories for which the requirements of
                                                  one of the options the CSLC uses to                       In addition to the comparison method                SUPs would be applicable:
                                                  calculate the cost of the issuance of                   described above for charging for the                    1. The placement and recovery of
                                                  leases in submerged lands of the state                  volume of the pipeline in cubic inches,               objects associated with public or private
                                                  for pipelines, conduits or fiber optic                  NOAA also looked at a similar open                    events on non-living substrate of the


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                                                  42302                     Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices

                                                  submerged lands of any national marine                  Monterey Bay, Olympic Coast,                          resource.’’ The issuance of an SUP for
                                                  sanctuary.                                              Stellwagen Bank, and Thunder Bay. Of                  desalination activities would establish
                                                     2. The placement and recovery of                     these sites, Florida Keys and Olympic                 conditional long-term use of a sanctuary
                                                  objects related to commercial filming.                  Coast NMSs are the only sites adjacent                resource (the substrate, seafloor, and/or
                                                     3. The continued presence of                         to land where desalination facilities                 water column); therefore, NOAA
                                                  commercial submarine cables on or                       could be placed; therefore, they are the              believes that the SUP category is
                                                  within the submerged lands of any                       only two national marine sanctuaries in               consistent with 16 U.S.C. 1441(a).
                                                  national marine sanctuary.                              addition to MBNMS where the proposed                     The general sanctuary and MBNMS
                                                     4. The disposal of cremated human                    SUP categories could have applied.                    regulations also provide for the
                                                  remains within or into any national                     These two national marine sanctuaries                 authorization of other State and Federal
                                                  marine sanctuary.                                       are in very different ecosystems than                 permits as a separate type of permit
                                                     5. Recreational diving near the USS                  MBNMS, and NOAA based its                             necessary to allow an activity otherwise
                                                  Monitor.                                                evaluation of the likelihood of injury to             prohibited by regulation. The activities
                                                     6. Fireworks displays.                               sanctuary resources on central                        that may be subject to such
                                                     7. The operation of aircraft below the               California examples. In addition, the                 authorization (for example, a NPDES
                                                  minimum altitude in restricted zones of                 cost methods for this category were                   permit for discharges) are different from
                                                  national marine sanctuaries.                            regionally based in California.                       the activity within the scope of this SUP
                                                     8. The continued presence of a                       Therefore, NOAA decided that it was                   category. Together, the issuance of SUPs
                                                  pipeline transporting seawater to or                    not appropriate to extend the remaining               and authorizations ensure sanctuary
                                                  from a desalination facility in the                     SUP category to other national marine                 resource protection while allowing
                                                  Monterey Bay National Marine                            sanctuaries at this time, although it may             compatible uses, in alignment with the
                                                  Sanctuary.                                              revisit this issue in the future as                   policies and purposes of the NMSA.
                                                                                                          necessary and appropriate.                               Comment 3: The proposed new SUP
                                                  IV. Waiver or Reduction of Fees
                                                                                                            The estimated cost per gallon of                    categories are duplicative of approvals
                                                    As described in the November 19,                      desalinated water as proposed in the                  ONMS can grant using existing
                                                  2015, Federal Register notice (80 FR                    January notice is reduced from                        authority and would impose
                                                  72415), NOAA may accept in-kind                         $0.00008/gallon to approximately                      unnecessary regulatory burden and
                                                  contributions in lieu of a fee, or waive                $0.00005/gallon in this final notice,                 substantial unjustified costs.
                                                  or reduce any fee assessed for any                      reflecting the annual FMV for the                        Response: The authorization of the
                                                  activity that does not derive profit from               continued presence of a pipeline and                  applicable State permits for a
                                                  the access to or use of sanctuary                       removing the additional cost for the use              desalination plant would only address
                                                  resources. NOAA may consider the                        of sediment to filter the water in the                allowing the prohibited activity at issue,
                                                  benefits of the activity to support the                 example provided.                                     and if issued for a desalination plant it
                                                  goals and objectives of the sanctuary as                                                                      would cover the construction of a
                                                  an in-kind contribution in lieu of a fee.               IV. Response to Comments                              pipeline or discharge of brine. The
                                                                                                             NOAA received seven individual                     activities that may be subject to such
                                                  V. Changes Between Proposed Notice
                                                                                                          submissions on the draft Federal                      authorization are different from the
                                                  and Final Notice
                                                                                                          Register notice, docket #NOAA–NOS–                    activity within the scope of this SUP
                                                     Based on NOAA’s analysis of the                      2016–0156. NOAA sorted and organized                  category. Authorizations do not address
                                                  topics raised during the public comment                 the seven submissions into 27 unique                  the FMV of the private use of a public
                                                  period, NOAA made several changes                       comment topics. NOAA’s response to                    resource or provide a mechanism for
                                                  between the notice of proposed new                      these comments follows.                               assessing and applying costs of the use
                                                  SUP categories and this final notice.                      Comment 1: Marine sanctuaries were                 of this resource to sanctuary
                                                     First, NOAA removed the proposed                     designated for having special resources,              management.
                                                  SUP category for the use of sediment to                 and as such, they deserve enhanced                       As described above, NOAA has
                                                  filter seawater for desalination. While                 protection. These activities should be                determined that an SUP is an
                                                  NOAA is confident in the method it                      sited outside of sanctuary boundaries, or             appropriate mechanism for NOAA to
                                                  developed for the calculation of FMV                    NOAA should not allow any new                         approve the continued presence of a
                                                  for this category, it recognizes that this              pipelines in sanctuaries.                             pipeline and assess and apply
                                                  SUP category may not always meet the                       Response: The NMSA directs NOAA                    applicable costs in a manner that allows
                                                  ‘‘no injury’’ criteria for SUPs specified               to allow public and private uses of the               desalination projects to occur within or
                                                  in the NMSA for all sites. In addition,                 resources to the extent compatible with               near MBNMS and to facilitate the more
                                                  it may be interpreted as a disincentive                 resource protection. NOAA evaluates                   efficient administration of desalination
                                                  against the use of subsurface intakes of                impacts of any intake pipelines through               permits. In addition, the current ONMS
                                                  water, which is the method                              the NEPA (and CEQA analysis as                        permit application process allows for
                                                  recommended in the 2010 guidelines.                     appropriate). An SUP could only be                    multiple permits and authorizations to
                                                     Second, NOAA has limited the                         issued if the activity is conducted in a              be issued under one permit application,
                                                  applicability of the remaining SUP                      manner that does not destroy, cause the               thereby streamlining the permit
                                                  category (for the continued presence of                 loss of, or injure sanctuary resources.               application process.
                                                  a pipeline transporting seawater to and                    Comment 2: Requiring two permits for                  The fees associated with SUPs have
                                                  from a desalination facility) to MBNMS                  a single pipeline appears inconsistent                been used by NOAA for various other
                                                  instead of applying it to the National                  with ONMS’s statutory authority under                 SUP categories. The fee categories
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                                                  Marine Sanctuary System, for the                        16 U.S.C. 1441(a).                                    include administrative costs per 16
                                                  following reasons. While all of the                        Response: Under 16 U.S.C. 1441(a),                 U.S.C. 1441(d)(2)(A), implementation
                                                  sanctuaries have authority to issue                     NOAA has the authority to issue special               and monitoring costs per 16 U.S.C.
                                                  SUPs, only six national marine                          use permits if necessary to ‘‘establish               1441(d)(2)(B), and FMV per 16 U.S.C.
                                                  sanctuaries currently have regulations                  conditions of access to and use of any                1441(d)(2)(C) for use of sanctuary
                                                  enabling them to issue authorizations:                  sanctuary resource; or promote public                 resources. NOAA believes these costs
                                                  Florida Keys, Flower Garden Banks,                      use and understanding of a sanctuary                  are appropriate to properly assess a


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                                                                            Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices                                             42303

                                                  desalination facility operating in a                    reasons stated throughout this notice,                not require that NOAA make a finding
                                                  national marine sanctuary.                              NOAA has determined that SUP fees for                 of no injury or loss to sanctuary
                                                     Comment 4: Test slant well permits                   the continued existence of desalination               resources. NOAA may also issue general
                                                  were issued without this SUP category,                  pipelines are needed and appropriate.                 permits for short-term activities, which
                                                  and permits issued for that project                        Comment 6: If ONMS decides to                      are generally not ‘‘intrusive’’. Because a
                                                  contained conditions, such as requiring                 finalize the new SUP categories, they                 pipeline would continually be in long-
                                                  monitoring. NOAA should do what it                      should not apply to the MPWSP because                 term use (at least five years up to the life
                                                  has previously done.                                    of the retroactive effect they would have             of the project), NOAA has considered
                                                     Response: NOAA began consideration                   on the project. This project has been                 this operation and extractive use as a
                                                  for this new SUP category during the                    underway for many years, and NOAA’s                   separate activity under the statutory
                                                  NEPA review for the California                          action would add significant costs to the             authority of NMSA Section 310, which
                                                  American Water test well pilot project,                 project.                                              requires monitoring and a fair market
                                                  and has now completed the SUP process                      Response: NOAA would not                           value for its use of a sanctuary resource
                                                  through the issuance of this final notice.              retroactively assess fees for any costs               (the substrate, seafloor, and/or water
                                                  As described above, NOAA has                            incurred prior to the publication of this             column).
                                                  concluded that an SUP category was                      final notice. When the new category                      Comment 8: Open ocean intakes
                                                  needed and appropriate for the                          takes effect, existing applicants will be             should be precluded from use in
                                                  continued existence of pipelines                        notified that the SUP category exists,                sanctuary waters as a matter of policy.
                                                  transporting seawater to and from a                     and that fees may start to be assessed for               Response: In 2010, NOAA published
                                                  desalination facility; therefore, NOAA                  the processing of that permit                         guidance recommending subsurface
                                                  began to pursue the new category for                    application. After that notification to the           water intake for desalination projects
                                                  desalination facilities. This approach is               applicants, fees will be assessed from                rather than open ocean intakes. The
                                                  in line with past large-scale and                       that date going forward.                              comment to preclude open ocean
                                                  intensive infrastructure projects like the                 The MPWSP permit application was                   intakes through regulation is beyond the
                                                  submarine cable SUP category. In                        received in 2015, and NOAA has made                   scope of this action.
                                                  looking at NOAA’s history, SUPs for                     every effort to inform the permit                        Comment 9: NOAA should establish a
                                                  ‘‘the continued presence of submarine                   applicants of its intent to develop a new             third category of SUP for open ocean
                                                  cables’’ were issued along with                         SUP category for desalination to cover                intakes, or combine open ocean intakes
                                                  authorizing other state and federal                     some of these federal costs for the                   with subsurface intakes into a single
                                                  permits as needed prior to the                          environmental review as well as future                SUP category for intakes.
                                                  development of that category for SUPs.                  monitoring and other costs.                              Response: The SUP category for the
                                                  Since the two authorizations for the test                  Comment 7: Adding SUP categories                   ‘‘presence of a pipeline’’ being finalized
                                                  well were issued prior to this final                    for some desalination activities and                  with this action includes pipelines
                                                  notice, that pipeline will be considered                using existing authority for others (i.e.;            placed both below and attached to the
                                                  existing and therefore exempted.                        brine discharge and construction)                     surface of the seafloor and would
                                                     Comment 5: California American                       creates additional regulatory barriers for            include open water intakes.
                                                  Water commented that the company                        desalination projects.                                   Comment 10: Commenters also
                                                  provided some financial assistance for                     Response: The addition of an SUP                   advocate for the inclusion of an
                                                  environmental review of the large-scale                 does not result in additional regulatory              additional category of SUP for brine
                                                  Monterey Peninsula Water Supply                         barriers for desalination projects. With              discharges from desalination facilities
                                                  Project (MPWSP) by paying for a portion                 the use of a single permit application for            primarily because additional monitoring
                                                  of the Federal labor costs, and should                  various authorizations and permits,                   would be needed.
                                                  not be charged additional administrative                NOAA intends to streamline the                           Response: SUPs cannot be issued for
                                                  fees.                                                   application process and reduce the                    any activity that injures sanctuary
                                                     Response: The environmental review                   burden on the applicant. An applicant                 resources. At this time, NOAA cannot
                                                  for the MPWSP involved re-writing an                    would still need only submit one permit               determine categorically that brine
                                                  extensive environmental impact review                   application, and NOAA determines the                  discharges would not have negative
                                                  (EIR), as required by CEQA, and adding                  types of permits required for any                     impacts on sanctuary resources;
                                                  the components necessary to meet the                    activities, as it always has. Similarly,              therefore, brine discharges are not
                                                  standards of an Environmental Impact                    SUP categories are assessed through the               appropriate categories for an SUP.
                                                  Statement (EIS) under NEPA. This                        same federal environmental review                     However, NOAA is reviewing and may
                                                  resulted in a document that was over                    process pursuant to the NEPA and                      authorize the NPDES permit for brine
                                                  1,500 pages for the joint EIR/EIS, and                  CEQA, as required, by which permits for               discharges for desalination, with terms
                                                  included over 2,000 pages of                            disturbance of the seabed or discharge                and conditions for monitoring any
                                                  appendices. The applicant was required                  activities are evaluated.                             potential impacts as needed. Both an
                                                  by the State of California to pay for the                  Moreover, as described above, NOAA                 SUP and an authorization may require
                                                  cost of the California Public Utilities                 has determined that a SUP category is                 continued monitoring and reporting for
                                                  Commission (CPUC) environmental                         necessary and appropriate to cover the                the life of the project.
                                                  review, which involved a large team,                    continued existence of pipelines                         Comment 11: Authorization of
                                                  working over multiple years to produce                  transporting seawater to and from a                   permits granted by other agencies may
                                                  the document. CalAm paid for a NEPA                     desalination facility. Carrying out a                 or may not prevent sanctuary resources
                                                  consultant through the CPUC, but has                    proposed desalination project in or near              (including marine life) from being
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                                                  not paid for any federal labor costs for                a national marine sanctuary requires                  destroyed, lost, or injured.
                                                  MBNMS staff related to the NEPA                         agency review and permit approval                        Response: The comment is accurate.
                                                  process or permit application. No                       before going forward. NOAA’s                          The NMSA directs NOAA to allow
                                                  retroactive fees would be assessed; fees                authorizing state and federal permits for             public and private uses of the resources
                                                  may only be assessed following the                      construction (coastal development) and                to the extent compatible with resource
                                                  effective date of this notice and                       brine discharge (NPDES) are considered                protection. 16 U.S.C. 1431(b)(6). The
                                                  appropriate notice to CalAm. For the                    under authorization regulations, and do               MBNMS regulations do not require a


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                                                  42304                     Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices

                                                  finding of no injury for the issuance of                   Response: NOAA understands and                     in the analysis were based in California,
                                                  an authorization (15 CFR 922.49,). An                   appreciates the need to alleviate water               because that was the best available
                                                  authorization can be issued for certain                 shortages in California. NOAA’s action                information. This is one of the reasons
                                                  prohibited activities to occur, after                   in creating this permit category is taken             NOAA has decided to narrow the scope
                                                  thorough analysis of impacts to                         in response to this need to fulfill the               of the SUP so that it only applies to
                                                  sanctuary resources through the NEPA                    NMSA purpose of facilitating uses of                  MBNMS.
                                                  process.                                                sanctuary resources to the extent                        Comment 19: Pipelines related to
                                                     Comment 12: As currently written, it                 compatible with resource protection.                  sewage treatment and power generation
                                                  is unclear whether a desalination                       The SUP fees would be a small                         are more widespread than desalination
                                                  project would need to obtain one or two                 percentage of the overall costs of the                plants and should be analyzed in a
                                                  separate permits for the ‘‘continued                    desalination project and would be                     similar fashion. ONMS offers no valid
                                                  presence of a pipeline’’ category to                    calculated in a way comparable to State               justification for singling out
                                                  accommodate both an intake pipeline                     fees and fees previously assessed by                  desalination plants in California for
                                                  and discharge pipeline. This could lead                 NOAA in similar circumstances (such as                SUPs.
                                                  to inconsistent application of rule, as                 for submarine cables in sanctuaries).                    Response: The proposed SUP Federal
                                                  well as create yet another disincentive                 Based on NOAA’s analysis of these prior               Register notice explicitly noted that the
                                                  for using subsurface intakes.                           transactions and experience with                      need for new additional pipelines for
                                                     Response: NOAA does not                              infrastructure projects in sanctuaries,               sewage treatment and power generation
                                                  differentiate between an intake or                      the SUP fees are unlikely to have a                   has not been established as most of the
                                                  discharge pipeline. This SUP category is                significant deterrent effect.                         infrastructure for the existing facilities
                                                  intended to apply to any new pipeline                      Comment 16: The two categories of                  has been in place for many years. In
                                                  transporting seawater to or from a                      SUP fees will discourage the                          contrast, desalination, or the need for a
                                                  desalination facility that will have a                  development of subsurface intakes, the                stable potable water supply, is a current
                                                  continued presence in the sanctuary.                    very design that NOAA has                             issue along the West Coast with well
                                                     Comment 13: The category                             recommended and prefers to reduce                     documented studies on the topic. This
                                                  description should use clear language so                environmental impacts in sanctuaries.                 is the same approach NOAA has taken
                                                  that permit standards are consistent                       Response: NOAA believes that                       in the past. In the 2006 SUP notice
                                                  with the most current information                       subsurface feasibility will be                        NOAA stated:
                                                  available. Does NOAA intend to update                   determined by the appropriate studies,
                                                                                                                                                                   The list of categories of activities in this
                                                  the MBNMS Desalination Guidelines                       design and citing of the project. The                 notice are not necessarily those activities
                                                  published in 2010 to account for new                    SUP category for ‘‘presence of a                      NOAA thinks will be increasing in frequency
                                                  information?                                            pipeline’’ would apply to varied types                in the future. Rather, the list represents all
                                                     Response: At this time, the                          of intakes. In addition, NOAA’s decision              categories of activities for which NOAA has
                                                  recommendations in the 2010                             to eliminate the proposed second                      issued special use permits in the last few
                                                  Desalination Guidelines are still                       category, for the use of sediment for                 years or for which NOAA expects to receive
                                                  appropriate. If new information                         filtration, reduces the overall fees and              an application in the near future (71 FR
                                                  becomes available that would require                    results in equal treatment for the                    4898).
                                                  NOAA to update the guidelines with                      continuing presence of a pipeline                        Moreover, given NOAA is now
                                                  new recommendations, NOAA would                         regardless of the type of intake.                     finalizing this SUP category to apply
                                                  do so. NOAA will incorporate the most                      Comment 17: The agency should not                  only in MBNMS, it is worth noting that
                                                  current standards in any permit                         charge fees when the ‘‘FMV’’ of the                   MBNMS has specific regulatory
                                                  condition when issuing an authorization                 sediment, however calculated, is offset               language that does not allow permits to
                                                  or an SUP.                                              by increased costs incurred to minimize               be issued to allow new sewage disposal
                                                     Comment 14: NOAA’s proposed SUP                      impacts to marine life in the sanctuary               facilities in the sanctuary. 15 CFR
                                                  fees for the continuing presence of                     (i.e. the subsurface wells cost more                  922.132(f).
                                                  pipelines are duplicative of other state                money to install than open-ocean                         Comment 20: The FMV calculation for
                                                  or local agencies fees (e.g.; CSLC).                    intakes).                                             the pipeline SUP is unreasonable and
                                                     Response: It is not uncommon for                        Response: NOAA’s consideration of                  should be revisited.
                                                  multiple agencies to charge a fee for                   the proposed SUP categories for                          Response: The FMV calculation is a
                                                  permits and/or leases for use of a public               desalination facilities has taken into                similar metric to one of the options the
                                                  resource. When a project is proposed                    account most costs and fees related to                State uses to calculate the cost of the
                                                  within the boundaries of MBNMS, it is                   these projects. Nonetheless, NOAA has                 issuance of leases in submerged lands of
                                                  NOAA’s responsibility to assess the risk                eliminated the proposed second                        the State for pipelines, conduits, or fiber
                                                  of issuing the permit and, if appropriate,              category, for the use of sediment for                 optic cables. The calculation for the
                                                  apply its permitting authority as                       filtration. This would reduce the overall             volume of the pipeline, which includes
                                                  mandated by the NMSA. The fees                          fees for a subsurface intake project.                 both its length and area, accounts for its
                                                  associated with this SUP are designed to                   Comment 18: SUP categories of                      total presence on or within the
                                                  facilitate and streamline the federal                   general applicability that target one state           submerged lands. NOAA believes the
                                                  responsibility to assess and monitor the                are inappropriate.                                    FMV would add very little additional
                                                  potential impacts of a private use of a                    Response: NOAA initially proposed to               cost to the production of fresh water (at
                                                  public resource. This is separate from,                 apply the SUP categories for                          approximately 1 cent for every 215
                                                  and occurs in addition to, the fees and                 desalination to the whole National                    gallons of water produced), for one
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                                                  costs associated with the issuance of the               Marine Sanctuary System, but noted                    hypothetical design comparable to what
                                                  state permits.                                          that only three sanctuaries would ever                is being considered for coastal
                                                     Comment 15: The costs imposed by                     likely need to consider a desalination                California.
                                                  these new SUP categories could deter                    project: Olympic Coast, Florida Keys,                    Comment 21: Some of the pipelines in
                                                  investments in desalination plants,                     and Thunder Bay NMSs. NOAA                            question will actually be bored as slant
                                                  which are needed in California to                       acknowledges that the majority of                     wells into subsurface aquifers. This is
                                                  alleviate water shortages.                              studies from desalination projects used               not ‘‘filtering’’ and no fee should be


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                                                                            Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices                                               42305

                                                  charged for the use of sand as                          conducted a full analysis of potential                to additional case-by-case analysis, as
                                                  ‘‘filtration’’.                                         SUP categories for desalination                       required under NEPA, which will be
                                                     Response: NOAA believes that the                     facilities. Since then, NOAA has                      completed as new permit applications
                                                  proposed SUP category for the use of                    conducted this analysis and has                       are submitted for specific projects and
                                                  sediment as filtration was justified and                considered statutory and regulatory                   activities. In addition, NOAA may, in
                                                  provided references in the proposed                     factors, including the no-injury                      certain circumstances, combine its
                                                  notice. Nevertheless, NOAA has elected                  threshold for SUPs, the nature of a                   special use permit authority with other
                                                  to remove the SUP for ‘‘use of sediment                 desalination pipeline as a continued use              regulatory authorities to allow activities
                                                  to filter seawater for desalination’’.                  of public resources in a way that may                 not described above that may result in
                                                     Comment 22: In the fiber optic cable                 preclude other use of the resource, the               environmental impacts and thus require
                                                  context, NOAA economists issued an                      ability of the agency to combine and                  the preparation of an environmental
                                                  economic report describing and                          streamline its permitting and
                                                  applying accepted methodologies for                                                                           assessment or environmental impact
                                                                                                          environmental review regardless of an                 statement. In these situations, NOAA
                                                  calculating FMV. This FMV should                        additional SUP category, and the ability
                                                  undergo the level of analysis conducted                                                                       will ensure that the appropriate NEPA
                                                                                                          to apply SUP fees to facilitate more                  documentation is prepared prior to
                                                  in that example.                                        efficient issuance and administration of
                                                     Response: Given the limited                                                                                taking final action on a permit or
                                                                                                          desalination permits and sanctuary
                                                  availability of studies for this activity,                                                                    making any irretrievable or irreversible
                                                                                                          management under NMSA Section
                                                  NOAA believes the level of analysis                                                                           commitment of agency resources. The
                                                                                                          310(d)(3).
                                                  conducted for the desalination SUP                         Comment 26: The agency should                      NEPA analysis would describe the
                                                  category is sufficient, but will continue               clarify that it does not intend to charge             impacts of the full project (i.e., both
                                                  to monitor this activity. If additional                 fees for portions of the pipeline that are            construction (allowed with an
                                                  information becomes available or                        not on or below the sanctuary lands.                  authorization) and operations (allowed
                                                  relevant for FMV calculation, NOAA                         Response: The explanation on                       with an SUP)).
                                                  will revisit the issue and may, as                      charging fees only for portions of                    B. Paperwork Reduction Act
                                                  needed, revise the FMV calculation.                     pipelines in the sanctuary is included in
                                                     Comment 23: The FMV for sand                         this Federal Register notice under                       Notwithstanding any other provisions
                                                  filtration bases its calculation on the                 Section III. When defining the length of              of the law, no person is required to
                                                  price of a commercially sold cubic foot                 the pipeline for the pipeline SUP                     respond to, nor shall any person be
                                                  of sand, discounted for overhead. This                  category, it states ‘‘L = length of the               subject to a penalty for failure to comply
                                                  is not a reasonable comparison, given                   pipeline (in) for the portion within the              with a collection of information subject
                                                  less costly means of filtration.                        sanctuary’’. NOAA will not include the
                                                     Response: NOAA did not base the                                                                            to the requirements of the Paperwork
                                                                                                          portion of the pipeline that is above the             Reduction Act (PRA), 44 U.S.C. 3501 et
                                                  calculation of the FMV on the price of                  mean high water mark.
                                                  a commercially sold cubic foot of sand.                                                                       seq., unless that collection of
                                                                                                             Comment 27: NOAA should allow                      information displays a currently valid
                                                  Rather, NOAA compared that cost to the                  recreational fishing in sanctuaries.
                                                  FMV calculated for this use to provide                                                                        Office of Management and Budget
                                                                                                             Response: This comment is beyond                   (OMB) control number. Applications for
                                                  perspective in an area where little data                the scope of this action.
                                                  is available. NOAA has elected to                                                                             the special use permits discussed in this
                                                  remove the SUP for ‘‘use of sediment to                 V. Classification                                     notice involve a collection-of
                                                  filter seawater for desalination’’ as                                                                         information requirement subject to the
                                                                                                          A. National Environmental Policy Act
                                                  described above.                                                                                              requirements of the PRA. OMB has
                                                     Comment 24: The agency fails to                        NOAA has concluded that this action                 approved this collection-of-information
                                                  recognize that pretreatment is still                    will not have a significant effect,                   requirement under OMB control number
                                                  necessary even for subsurface intakes.                  individually or cumulatively, on the                  0648–0141. The collection-of-
                                                     Response: NOAA did not intend to                     human environment. This action is                     information requirement applies to
                                                  imply that pre-treatment was not                        categorically excluded from the                       persons seeking special use permits and
                                                  necessary for subsurface intakes. Rather,               requirement to prepare an                             is necessary to determine whether the
                                                  NOAA compared the information about                     Environmental Assessment or                           proposed activities are consistent with
                                                  pre-treatment cost to provide                           Environmental Impact Statement in                     the terms and conditions of special use
                                                  perspective in an area where little data                accordance with the NOAA Categorical                  permits prescribed by the NMSA. Public
                                                  is available.                                           Exclusion G7 and because there are no                 reporting burden for this collection of
                                                     Comment 25: SUPs were not raised as                  extraordinary circumstances precluding                information is estimated to average
                                                  a potential requirement for desalination                the application of this categorical                   twenty four (24) hours per response
                                                  projects prior to this notice. SUPs were                exclusion. Specifically, this action is a             (application, annual report, and
                                                  also not included in the 2010                           notice of an administrative and legal                 financial report), including the time for
                                                  Desalination Guidelines.                                nature, and any future effects of                     reviewing instructions, searching
                                                     Response: While NOAA did not                         subsequent actions are too broad,                     existing data sources, gathering and
                                                  formally have categories for this activity              speculative, or conjectural to lend                   maintaining the data needed, and
                                                  until now, NOAA has made every effort                   themselves to meaningful analysis and
                                                                                                                                                                completing and reviewing the collection
                                                  to inform existing permit applicants of                 will be subject to later NEPA analysis.
                                                                                                                                                                of information. This estimate does not
                                                  its intent to develop new SUP categories                This action would only establish the
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                                                                                                                                                                include additional time that may be
                                                  for desalination since 2015. It is                      two new special use permit categories
                                                                                                                                                                required should the applicant be
                                                  NOAA’s responsibility to determine the                  and the methods for calculating fair
                                                                                                                                                                required to provide information to
                                                  appropriate type of permit for any                      market value for applicable projects. It
                                                  permit application, whether a sanctuary                 does not commit the outcome of any                    NOAA for the preparation of
                                                  general permit, authorization, or SUP.                  particular federal action taken by                    documentation that may be required
                                                  At the time of publishing the 2010                      NOAA. Furthermore, individual permit                  under NEPA.
                                                  guidelines, NOAA had not yet                            actions taken by ONMS will be subject                   Authority: 16 U.S.C. 1431 et seq.



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                                                  42306                     Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices

                                                    Dated: August 11, 2017.                               DEPARTMENT OF COMMERCE                                should be directed to Anne Marie Eich,
                                                  John Armor,                                                                                                   907–586–7172, at least 5 working days
                                                  Director, Office of National Marine                     National Oceanic and Atmospheric                      prior to the meeting date.
                                                  Sanctuaries.                                            Administration                                          Dated: September 1, 2017.
                                                  References                                              RIN 0648–XF640                                        Alan D. Risenhoover,
                                                                                                                                                                Director, Office of Sustainable Fisheries,
                                                  1. MBNMS Guidelines for Desalination                    Fisheries of the Exclusive Economic                   National Marine Fisheries Service.
                                                       Plants in the MBNMS; May 2010, online:             Zone Off Alaska; Alaska Groundfish                    [FR Doc. 2017–18960 Filed 9–6–17; 8:45 am]
                                                       http://montereybay.noaa.gov/                       and Halibut Seabird Working Group;
                                                                                                                                                                BILLING CODE 3510–22–P
                                                       resourcepro/resmanissues/pdf/                      Public Meeting
                                                       050610desal.pdf.
                                                  2. ONMS Fair Market Value Analysis for a                AGENCY:  National Marine Fisheries
                                                       Fiber Optic Cable Permit in National               Service (NMFS), National Oceanic and                  DEPARTMENT OF COMMERCE
                                                       Marine Sanctuaries, Aug 2002.                      Atmospheric Administration (NOAA),
                                                                                                          Commerce.                                             National Oceanic and Atmospheric
                                                  3. NOAA Final Notice of Applicability of
                                                       Special Use Permit Requirements to
                                                                                                                                                                Administration
                                                                                                          ACTION: Notice of public meeting.
                                                       Certain Categories of Activities                                                                         RIN 0648–XF603
                                                       Conducted Within the National Marine               SUMMARY:    NMFS Alaska Groundfish and
                                                       Sanctuary System; May 2013, online:                Halibut Seabird Working Group will                    Takes of Marine Mammals Incidental to
                                                       http://sanctuaries.noaa.gov/                       meet to discuss emerging seabird                      Specified Activities; Taking Marine
                                                       management/fr/78fr25957.pdf.                       mitigation technologies and additional                Mammals Incidental to Casitas Pier
                                                  4. NOAA Notice of Applicability of Special              seabird species that could warrant more               Fender Pile Replacement
                                                       Use Permit Requirements to Certain                 attention as bycatch in fisheries off
                                                       Categories of Activities Conducted                 Alaska.                                               AGENCY:  National Marine Fisheries
                                                       Within the National Marine Sanctuary                                                                     Service (NMFS), National Oceanic and
                                                       System; January 2013, online: https://             DATES: The meeting will be held on                    Atmospheric Administration (NOAA),
                                                       sanctuaries.noaa.gov/management/fr/                September 21, 2017, from 1 p.m. to 5                  Commerce.
                                                       78fr2957.pdf.                                      p.m., and on September 22, 2017, from                 ACTION: Notice; proposed incidental
                                                  5. NOAA Office of National Marine                       8 a.m. to 11:30 a.m., Alaska Daylight                 harassment authorization; request for
                                                       Sanctuaries Final Policy and Permit                Time.                                                 comments.
                                                       Guidance for Submarine Cable Projects;             ADDRESSES: The meeting will be held at
                                                       September 2011, online: http://                    the NMFS Alaska Regional Office                       SUMMARY:    NMFS has received a request
                                                       sanctuaries.noaa.gov/management/fr/                located at 709 W. 9th St., Room 445C,                 from Venoco, LLC (Venoco) for
                                                       submarinecablespolicy.pdf.                         Juneau, AK. Photo identification is                   authorization to take marine mammals
                                                  6. Moss Landing Marine Lab, Ecological                                                                        incidental to fender pile replacement at
                                                                                                          required to enter this facility.
                                                       Effects of the Moss Landing Powerplant                                                                   Casitas Pier in Carpinteria, CA. Pursuant
                                                       Thermal Discharge; June 2006.                      FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                to the Marine Mammal Protection Act
                                                  7. Ballard Marine Construction report                   Anne Marie Eich, 907–586–7172.
                                                                                                                                                                (MMPA), NMFS is requesting comments
                                                       prepared for Monterey Regional Water               SUPPLEMENTARY INFORMATION: The
                                                                                                                                                                on its proposal to issue an incidental
                                                       Pollution Control Agency; 2014.                    Alaska Groundfish and Halibut Seabird                 harassment authorization (IHA) to
                                                  8. Chambers Group Memo: Pretreatment and                Working Group formed as a result of the               incidentally take marine mammals
                                                       Design Considerations for Large-Scale              2015 biological opinion on effects of the             during the specified activities. NMFS
                                                       Seawater Facilities; 2010, online: http://         Gulf of Alaska and Bering Sea/Aleutian
                                                       www.mwdoc.com/cms2/ckfinder/files/
                                                                                                                                                                will consider public comments prior to
                                                                                                          Islands groundfish fisheries on short-                making any final decision on the
                                                       files/Evaluation%20of%20Potential                  tailed albatross. The working group is
                                                       %20Impacts%20%20to%20                                                                                    issuance of the requested MMPA
                                                                                                          tasked with reviewing information for                 authorizations and agency responses
                                                       Marine%20Life%20by%20Slant%20                      mitigating effects of the groundfish
                                                       Wells%20-%20MLPA%20DEIR                                                                                  will be summarized in the final notice
                                                                                                          fisheries on short-tailed albatross and               of our decision.
                                                       %20Comment%202010-10-13.pdf.                       other seabirds. The working group will
                                                  9. NOAA National Centers for Environmental                                                                    DATES: Comments and information must
                                                                                                          hold its first in-person meeting in
                                                       Information Web site; Table 1; online:
                                                                                                          Juneau, AK, on September 21 and 22,                   be received no later than October 10,
                                                       https://www.ngdc.noaa.gov/mgg/global/                                                                    2017.
                                                       etopo1_ocean_volumes.html.
                                                                                                          2017. Meeting topics include emerging
                                                                                                          seabird mitigation technologies and                   ADDRESSES: Comments should be
                                                  10. Final Notice of Fee Calculations for
                                                       Special Use Permits; 80 FR 72415                   additional seabird species that could                 addressed to Jolie Harrison, Chief,
                                                       (November 19, 2015); online: https://              warrant more attention as bycatch in                  Permits and Conservation Division,
                                                       www.federalregister.gov/documents/                 fisheries off Alaska. NMFS will keep the              Office of Protected Resources, National
                                                       2015/11/19/2015-29524/final-notice-of-             North Pacific Fishery Management                      Marine Fisheries Service. Physical
                                                       fee-calculations-for-special-use-permits.          Council (Council) apprised of the                     comments should be sent to 1315 East-
                                                  11. Final Notice of Applicability of Special            working group’s activities and any                    West Highway, Silver Spring, MD 20910
                                                       Use Permit Requirements to Certain                 resulting recommendations for methods                 and electronic comments should be sent
                                                       Categories of Activities Conducted                 to reduce seabird bycatch. Any changes                to ITP.Young@noaa.gov.
                                                       Within the National Marine Sanctuary               to seabird avoidance regulations are                     Instructions: NMFS is not responsible
                                                       System; 71 FR 4898 (January 30, 2006);             expected to follow the standard Council               for comments sent by any other method,
mstockstill on DSK30JT082PROD with NOTICES




                                                       online: https://www.federalregister.gov/           process.                                              to any other address or individual, or
                                                       documents/2006/01/30/06-808/final-                                                                       received after the end of the comment
                                                       notice-of-applicability-of-special-use-            Special Accommodations                                period. Comments received
                                                       permit-requirements-to-certain-                      This workshop will be physically                    electronically, including all
                                                       categories-of-activities.                          accessible to people with disabilities.               attachments, must not exceed a 25-
                                                  [FR Doc. 2017–18995 Filed 9–6–17; 8:45 am]              Requests for sign language                            megabyte file size. Attachments to
                                                  BILLING CODE 3510–NK–P                                  interpretation or other auxiliary aids                electronic comments will be accepted in


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Document Created: 2017-09-07 02:01:34
Document Modified: 2017-09-07 02:01:34
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.
DatesThis notice becomes effective on September 7, 2017.
ContactBridget Hoover, Monterey Bay National Marine Sanctuary, 99 Pacific Street Bldg. 455A, Monterey, CA 93940, (831) 647-4217, [email protected]
FR Citation82 FR 42298 

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