83_FR_28981 83 FR 28861 - Notice of Intent To Contract for Hydroelectric Power Development on the Bureau of Reclamation's North Unit Main Canal, Deschutes Project, Madras, Oregon

83 FR 28861 - Notice of Intent To Contract for Hydroelectric Power Development on the Bureau of Reclamation's North Unit Main Canal, Deschutes Project, Madras, Oregon

DEPARTMENT OF THE INTERIOR
Bureau of Reclamation

Federal Register Volume 83, Issue 120 (June 21, 2018)

Page Range28861-28863
FR Document2018-13363

The Bureau of Reclamation (Reclamation) has received a proposal to allow hydroelectric power development on the North Unit Main Canal (NUMC) under a Lease of Power Privilege (LOPP). To ensure fair and open competition, Reclamation is soliciting competing proposals at this time.

Federal Register, Volume 83 Issue 120 (Thursday, June 21, 2018)
[Federal Register Volume 83, Number 120 (Thursday, June 21, 2018)]
[Notices]
[Pages 28861-28863]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13363]


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DEPARTMENT OF THE INTERIOR

Bureau of Reclamation

[RR01016000; XXXR4524KK; RX.41129361.1010000]


Notice of Intent To Contract for Hydroelectric Power Development 
on the Bureau of Reclamation's North Unit Main Canal, Deschutes 
Project, Madras, Oregon

AGENCY: Bureau of Reclamation, Interior.

ACTION: Notice of intent to accept proposals, select lessee(s), and 
contract for hydroelectric power development.

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SUMMARY: The Bureau of Reclamation (Reclamation) has received a 
proposal to allow hydroelectric power development on the North Unit 
Main Canal (NUMC) under a Lease of Power Privilege (LOPP). To ensure 
fair and open competition, Reclamation is soliciting competing 
proposals at this time.

DATES: Submit the written proposal on or before November 19, 2018. Late 
proposals will not be considered. Delayed delivery to the Regional 
Power Manager's office due to failures or misunderstandings of the 
entity and/or of mail, overnight, or courier services will not excuse 
lateness, and accordingly, are advised to provide sufficient time for 
delivery.

ADDRESSES: Send eight copies of the written proposal to Mr. Joseph 
Summers, Regional Power Manager, Bureau of Reclamation, 1150 North 
Curtis Road, Suite 100, Boise, ID 83706; telephone (208) 378-5290.

FOR FURTHER INFORMATION CONTACT: Questions regarding proposal 
requirements or technical data available for the North Unit Main Canal 
may be directed to Mr. Jake Nink, Bureau of Reclamation, 1150 North 
Curtis Road, Suite 100, Boise, ID 83706; telephone (208) 378-5090; 
email [email protected]. Upon receipt of written request, Mr. Nink will 
also arrange an informational meeting and/or site visit with interested 
entities. In this regard, Reclamation reserves the right to schedule a 
single meeting and/or visit to address the questions of all entities 
that have submitted questions or requested site visits.
    Specific information related to operations and maintenance of the 
canal system may be obtained from Mr. Mike Britton, Bureau of 
Reclamation, North Unit Irrigation District Manager, 2024 Northwest 
Beech Street, Madras, OR 97741; telephone (541) 475-3625; email to 
[email protected].

SUPPLEMENTARY INFORMATION: 
    General Overview. The North Unit Irrigation District (NUID) 
operates and maintains the NUMC on the Deschutes Project located in the 
Deschutes River Basin, which supplies irrigation water to nearly 59,000 
acres of farmland in Jefferson County, Oregon. Reclamation is 
considering allowing hydroelectric power development on the NUMC under 
a Lease of Power Privilege (LOPP).
    A LOPP is a congressionally authorized alternative to Federal 
hydroelectric power development. It is a contractual right given to a 
non-federal entity to use a Reclamation asset for electric power 
generation consistent with Reclamation project purposes. Terms of a 
LOPP shall not exceed 40 years. General authority under Reclamation law 
for a LOPP includes, among others, the Town Sites and Power Development 
Act of 1906 (43 U.S.C. 522), the Reclamation Project Act of 1939 (43 
U.S.C. 485h(c)) (1939 Act), and the Bureau of Reclamation Small Conduit 
Hydropower Development and Rural Jobs Act of 2013 (Act of August 9, 
2013, 127 Stat. 498).
    Reclamation will be responsible for compliance with the National 
Environmental Policy Act (NEPA) related to any project selected for 
consideration pursuant to this Notice of Intent. Reclamation will also 
lead necessary consultation with American Indian Tribal Governments and 
compliance with the National Historic Preservation Act, Endangered 
Species Act, and other related environmental regulations for all 
elements of the proposed project. A LOPP may be issued only after 
Reclamation has determined that NEPA and any other regulatory 
compliance requirements are completed.

Project Definition and Location

    On August 7, 2017, Reclamation received a formal proposal for non-
federal hydroelectric power development from Kinet Inc. at 12 sites on 
the NUMC. Kinet Inc. proposes to develop these sites utilizing a new 
technology called linear Pelton turbines. This solicitation is 
exclusive to the following 12 NUMC sites:
    Site Name--Mile 2 South.
    Latitude Longitude--44.082201-121.286401.
    Canal Mile Maker--1.78
    Head (m)--6.1.
    Flow (cms)--20.

    Site Name--Mile 2 North.
    Latitude Longitude--44.086971-121.274233.
    Canal Mile Marker--2.11.
    Head (m)--6.1.
    Flow (cms)--20.

    Site Name--Mile 3.
    Latitude Longitude--44.092839-121.256296.
    Canal Mile Marker--3.52.
    Head (m)--6.1.
    Flow (cms)--20.

    Site Name--Mile 18.
    Latitude Longitude--44.251184-121.128517.
    Canal Mile Marker--18.34.
    Head (m)--6.71.
    Flow (cms)--21.

    Site Name--Mile 19.

[[Page 28862]]

    Latitude Longitude--44.2666-121.12075.
    Canal Mile Marker--19.
    Head (m)--4.4.
    Flow (cms)--16.

    Site Name Mile--20.
    Latitude Longitude--44.2838-121.11471.
    Canal Mile Marker--20.
    Head (m)--5.36.
    Flow (cms)--21.

    Site Name Mile--43.
    Latitude Longitude--44.500374-121.154865.
    Canal Mile Marker--45.
    Head (m)--18.2.
    Flow (cms)--7.1.

    Site Name--Mile 48.
    Latitude Longitude--44.5368587-121.153547.
    Canal Mile Marker--47.98.
    Head (m)--3.66.
    Flow (cms)--7.2.

    Site Name--Mile 50 East.
    Latitude Longitude--44.571091-121.158783.
    Canal Mile Marker--19.
    Head (m)--51.
    Flow (cms)--2.98.

    Site Name--Mile 50 West.
    Latitude Longitude--44.572148-121.160127.
    Canal Mile Marker--19.
    Head (m)--3.05.
    Flow (cms)--7.0.

    Site Name--Mile 52 South.
    Latitude Longitude--44.601337-121.162522.
    Canal Mile Marker--53.69.
    Head (m)--3.05.
    Flow (cms)--7.0.

    Site Name--Mile 52 North.
    Latitude Longitude--44.603526-121.161854.
    Canal Mile Marker--19.
    Head (m)--3.05.
    Flow (cms)--7.0.

    Reclamation notified NUID of the Kinet Inc. proposal and solicited 
NUID's interest in submitting a proposal as a preferred entity. In a 
subsequent letter dated September 21, 2017, NUID declined interest in 
hydroelectric power development at the proposed sites. As a result, 
Reclamation is soliciting proposals for consideration to allow 
hydroelectric power development under a LOPP on the NUMC system.

Fundamental Considerations and Requirements

    1. Under this solicitation, Reclamation may only issue a LOPP for 
hydroelectric power development at the 12 identified NUMC sites 
described herein.
    2. Any LOPP terms for hydroelectric power development on the NUMC 
must not interfere with existing contractual commitments related to 
operations and maintenance of the canal system. The lessee (i.e., 
successful proposing entity) will be required to enter into a contract 
with Reclamation. This contract will, (1) address requirements related 
to coordination of operations and maintenance with Deschutes Project 
stakeholders (including the NUID); and (2) stipulate that the lessee 
will be responsible for any increase in operations or maintenance costs 
that are attributable to the hydroelectric power development.
    3. The lessee would be responsible for securing transfer and 
marketing of the power generated by the proposed project.
    4. All costs incurred by the United States related to a proposed 
LOPP project will be at the expense of the lessee. Such costs include 
management and coordination of necessary Reclamation activities, 
provision of information, conduct of or assistance with regulatory 
compliance (including NEPA), consultation during design development and 
related to operations and maintenance under a LOPP, development of the 
LOPP, necessary contracts with outside consultants, or any other cost 
for which the government would be reimbursed by an applicant or the 
general public. In addition, the lessee will be required to make annual 
payments to the United States for the use of a government facility in 
the amount of at least 2-3 mills per kilowatt-hour of gross energy 
produced by the facility, measured at the generator(s).
    5. The LOPP will include provisions for the mill rate to increase 
each year commensurate with inflation based on the previous 5-year 
average of the Gross Domestic Product (GDP) Price Deflator; however, 
the rate of increase will be capped at 5 percent. If the 5-year GDP 
Price Deflator average shows no change or deflation, the mill rate will 
remain the same as the previous year's rate. Annual payments to the 
United States will be deposited as a credit to the Reclamation fund and 
project to be applied against the total outstanding reimbursable 
repayment obligation for reimbursable project construction costs of the 
Deschutes Project pursuant to the existing construction cost allocation 
(not applied only against power construction costs). If the outstanding 
reimbursable repayment obligation for project construction costs is 
satisfied, then the payments will be held as a statutory credit for the 
project or program until an eligible reimbursable project expense is 
incurred against which the credit can be applied.

Proposal Content Guidelines

    Interested parties should submit proposals specifically addressing 
the following qualifications, capabilities, and approach factors. 
Proposals submitted will be evaluated and ranked directly based on 
these factors. Additional information may be provided at the discretion 
of those submitting proposals.
    (a) Qualifications of Proposing Entity: Provide relevant 
information describing/documenting the qualifications of the proposing 
entity to plan, design, and implement such a project, including, but 
not limited to:
     Type of organization.
     Business history, including length of time in business, 
experience in funding, and design and construction of similar projects.
     Industry rating(s) that indicate financial soundness and/
or technical and managerial capability.
     Experience of key management personnel.
     History of any reorganizations or mergers with other 
companies (if applicable).
     Preference status (as applied to a LOPP, the term 
``preference entity'' means an entity qualifying for preference under 
Section 9(c) of the 1939 Act as a municipality, public corporation or 
agency, or cooperative or other nonprofit organization financed in 
whole or in part by loans made pursuant to the Rural Electrification 
Act of 1936, as amended).
     Any other information not already requested above or in 
the following evaluation categories that demonstrates the interested 
entity's organizational, technical, and financial ability to perform 
all aspects of the work.
    (b) Proposed Development Plan: Describe and provide mapping and 
drawings of proposed facilities and equipment comprising the LOPP 
project. Include descriptions and locations of structures, turbines, 
penstocks, transmission lines, access roads, and other appurtenant 
facilities.
    Describe proposed capacities and general operation of the 
hydroelectric projects to include generation capacity, power source and 
power consumption, configuration, turbine generating capacity, 
distribution transmission line size and route, and other relevant 
aspects of the project.
    Describe the ability of generation to provide ancillary services, 
such as regulation, spinning reserves, and volt-ampere reactive 
support, and information on the reliability of the generation, 
potential maintenance outage schedule, and duration.

[[Page 28863]]

    (c) Proposed Approach to Acquisition of Necessary Property Rights: 
Specify plans for acquiring title to or the right to occupy and use all 
lands necessary for the proposed development, including such additional 
lands as may be required during construction. Address lands necessary 
for electrical distribution lines, access roads, and all aspects of 
project development and operation and maintenance.
    (d) Long-Term Operation and Maintenance: Provide a description 
(with relevant references) of the project proponent's experience in 
operation and maintenance of hydroelectric or similar facilities once 
they are operational and over the long-term (i.e., the 40-year lease 
contemplated for the proposed development). Identify the organizational 
structure and plan for the long-term operation and maintenance of the 
proposed development. Define how the proposed development would operate 
in harmony with the NUMC system.
    (e) Contractual Arrangements: Describe any anticipated contractual 
arrangements with project stakeholders of the Deschutes Project, 
including contractual arrangements to utilize water rights held by 
NUID. Define how the proposed development would operate in harmony with 
the NUMC system.
    (f) Management Plan: Provide a management plan to accomplish such 
activities as planning, NEPA compliance, LOPP development, design, 
construction, facility testing, start-up of hydropower production, and 
preparation of an Emergency Action Plan. Prepare schedules of these 
activities as applicable. Describe what studies are necessary to 
accomplish the hydroelectric power development and how the studies 
would be implemented.
    (g) Environmental Impact: Discuss potential significant adverse 
impacts from the proposed development on biophysical or sociocultural 
resource parameters. Of particular concern are potential impacts on any 
protected aquatic or terrestrial wildlife species or associated 
protected habitat. Other concerns may include, but are not limited to, 
the impact on land use adjacent to the proposed development, recreation 
at the surrounding areas, cultural resources, and Indian Trust assets. 
Provide information on the types and severity of expected impacts and 
proposed methods of resolving or mitigating these impacts.
    Describe potential beneficial impacts that may be expected from the 
development to include such perspectives as energy conservation or 
using available water resources in the public interest.
    Describe proposed studies to adequately define the extent of the 
adverse and beneficial impacts, potential severity, and potential 
alternatives to mitigate impacts.
    (h) Other Study and/or Permit Requirements: Describe planned 
response to other applicable regulatory requirements, including the 
National Historic Preservation Act, Clean Water Act, Endangered Species 
Act, and state and local laws and licensing requirements. Also describe 
any known potential for impact on lands or resources of American Indian 
tribes, including trust resources.
    (i) Project Development Costs and Economic Analysis: Estimate the 
costs of development, including the cost of studies to determine 
feasibility, environmental compliance, project design, construction, 
financing, and the amortized annual cost of the investment. Estimate 
annual operation and maintenance, replacement expenses, annual payments 
to the United States, and those potentially associated with the 
Deschutes Project. Estimate costs associated with any anticipated 
additional transmission or wheeling services. Identify proposed methods 
of financing the project. The anticipated return on investment should 
be estimated and an economic analysis should be presented that compares 
the present worth of all benefits and the costs of the project.
    (j) Performance Guarantee and Assumption of Liability: Describe 
plans for (1) providing the government with performance bonds or 
irrevocable letter of credit covering completion of the proposed 
project, (2) assuming liability for damage to the operational and 
structural integrity of the NUMC or other aspects of the Deschutes 
Project caused by construction, operations and/or maintenance of the 
hydropower development, and (3) obtaining general liability insurance.
    (k) Other Information: This final paragraph is provided for the 
applicant to include additional information considered relevant to 
Reclamation's selection process in this matter.

Selection of Lessee

    Reclamation will evaluate proposals received in response to this 
published notice. Proposals will be ranked according to response to the 
factors described in Fundamental Considerations and Requirements and 
Proposal Content Guidelines sections of this notice. In general, 
Reclamation will give more favorable consideration to proposals that 
(1) are well adapted to developing, conserving, and utilizing the water 
resource and protecting natural resources; (2) clearly demonstrate that 
the offeror is qualified to develop the hydropower facility and provide 
for long-term operation and maintenance; and (3) best share the 
economic benefits of the hydropower development among parties to the 
LOPP. A proposal will be deemed unacceptable if it is inconsistent with 
Deschutes Project purposes, as determined by Reclamation.
    Reclamation will give preference to those entities that qualify as 
preference entities (as defined under Proposal Content Guidelines, item 
(a), of this notice) provided that the preference entity is well 
qualified and their proposal is at least as well adapted to developing, 
conserving, and utilizing the water and natural resources as other 
submitted proposals. Preference entities will be allowed 30 days to 
improve their proposals, if necessary, to be made at least equal to a 
proposal(s) that may have been submitted by a non-preference entity.

Notice and Time Period To Enter Into LOPP

    Reclamation will notify, in writing, all entities submitting 
proposals of Reclamation's decision regarding selection of the 
potential lessee. The selected potential lessee will have 15 months 
from the date of selection of the lessee to sign the preliminary lease, 
complete the requirements set forth in the preliminary lease, and to 
sign the LOPP. The lessee will then have up to 3 years from the date of 
the preliminary lease agreement to the beginning of construction. 
Maximum timeframes for construction will be determined by the Regional 
Director. Such timeframes may be adjusted for just cause resulting from 
actions and/or circumstances that are beyond the control of the lessee.

    Dated: March 22, 2018.
 Lorri J. Gray,
Regional Director, Pacific Northwest Region.
[FR Doc. 2018-13363 Filed 6-20-18; 8:45 am]
 BILLING CODE 4332-90-P



                                                                            Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices                                            28861

                                              be made available via the internet and                  ACTION: Notice of intent to accept                     a contractual right given to a non-federal
                                              through special publications, for use by                proposals, select lessee(s), and contract              entity to use a Reclamation asset for
                                              Government agencies, industry,                          for hydroelectric power development.                   electric power generation consistent
                                              education programs, and the general                                                                            with Reclamation project purposes.
                                              public. We will protect information                     SUMMARY:    The Bureau of Reclamation                  Terms of a LOPP shall not exceed 40
                                              from respondents considered                             (Reclamation) has received a proposal to               years. General authority under
                                              proprietary under the Freedom of                        allow hydroelectric power development                  Reclamation law for a LOPP includes,
                                              Information Act (5 U.S.C. 552) and its’                 on the North Unit Main Canal (NUMC)                    among others, the Town Sites and
                                              implementing regulations (43 CFR part                   under a Lease of Power Privilege                       Power Development Act of 1906 (43
                                              2), and under regulations at 30 CFR                     (LOPP). To ensure fair and open                        U.S.C. 522), the Reclamation Project Act
                                              250.197, ‘‘Data and information to be                   competition, Reclamation is soliciting                 of 1939 (43 U.S.C. 485h(c)) (1939 Act),
                                              made available to the public or for                     competing proposals at this time.                      and the Bureau of Reclamation Small
                                              limited inspection.’’ Responses are                     DATES: Submit the written proposal on                  Conduit Hydropower Development and
                                              voluntary. No questions of a ‘‘sensitive’’              or before November 19, 2018. Late                      Rural Jobs Act of 2013 (Act of August
                                              nature are asked.                                       proposals will not be considered.                      9, 2013, 127 Stat. 498).
                                                 Title of Collection: North American                  Delayed delivery to the Regional Power                    Reclamation will be responsible for
                                              Breeding Bird Survey.                                   Manager’s office due to failures or                    compliance with the National
                                                 OMB Control Number: 1028–0079.                       misunderstandings of the entity and/or                 Environmental Policy Act (NEPA)
                                                 Form Number: None.                                   of mail, overnight, or courier services                related to any project selected for
                                                 Type of Review: Extension of a                       will not excuse lateness, and                          consideration pursuant to this Notice of
                                              currently approved collection.                          accordingly, are advised to provide                    Intent. Reclamation will also lead
                                                 Respondents/Affected Public:                         sufficient time for delivery.                          necessary consultation with American
                                              Individuals.                                            ADDRESSES: Send eight copies of the                    Indian Tribal Governments and
                                                 Total Estimated Number of Annual                     written proposal to Mr. Joseph                         compliance with the National Historic
                                              Respondents: 1,600.                                     Summers, Regional Power Manager,                       Preservation Act, Endangered Species
                                                 Total Estimated Number of Annual                     Bureau of Reclamation, 1150 North                      Act, and other related environmental
                                              Responses: 2,600.                                       Curtis Road, Suite 100, Boise, ID 83706;               regulations for all elements of the
                                                 Estimated Completion Time per                        telephone (208) 378–5290.                              proposed project. A LOPP may be
                                              Response: 11 minutes.                                   FOR FURTHER INFORMATION CONTACT:                       issued only after Reclamation has
                                                 Total Estimated Number of Annual                     Questions regarding proposal                           determined that NEPA and any other
                                              Burden Hours: 28,600.                                   requirements or technical data available               regulatory compliance requirements are
                                                 Respondent’s Obligation: Voluntary.                  for the North Unit Main Canal may be                   completed.
                                                 Frequency of Collection: Annually.                   directed to Mr. Jake Nink, Bureau of                   Project Definition and Location
                                                 Total Estimated Annual Non-hour                      Reclamation, 1150 North Curtis Road,
                                              Burden Cost: $141,700. Mileage costs                    Suite 100, Boise, ID 83706; telephone                    On August 7, 2017, Reclamation
                                              are on average $54.50 per response,                     (208) 378–5090; email jnink@usbr.gov.                  received a formal proposal for non-
                                              based on approximate 100-mile round                     Upon receipt of written request, Mr.                   federal hydroelectric power
                                              trip for data collection per response and               Nink will also arrange an informational                development from Kinet Inc. at 12 sites
                                              2018 federal mileage rate of $0.545 per                 meeting and/or site visit with interested              on the NUMC. Kinet Inc. proposes to
                                              mile.                                                   entities. In this regard, Reclamation                  develop these sites utilizing a new
                                                 An agency may not conduct or                         reserves the right to schedule a single                technology called linear Pelton turbines.
                                              sponsor and a person is not required to                 meeting and/or visit to address the                    This solicitation is exclusive to the
                                              respond to a collection of information                  questions of all entities that have                    following 12 NUMC sites:
                                              unless it displays a currently valid OMB                submitted questions or requested site                    Site Name—Mile 2 South.
                                              control number.                                         visits.                                                  Latitude Longitude—44.082201–
                                                 The authorities for this action are the                 Specific information related to                     121.286401.
                                              Paperwork Reduction Act of 1995 (44                     operations and maintenance of the canal                  Canal Mile Maker—1.78
                                              U.S.C. 3501, et seq.).                                  system may be obtained from Mr. Mike                     Head (m)—6.1.
                                                                                                      Britton, Bureau of Reclamation, North                    Flow (cms)—20.
                                              John French,                                                                                                     Site Name—Mile 2 North.
                                                                                                      Unit Irrigation District Manager, 2024
                                              Patuxent Wildlife Research Center Director.                                                                      Latitude Longitude—44.086971–
                                                                                                      Northwest Beech Street, Madras, OR
                                              [FR Doc. 2018–13274 Filed 6–20–18; 8:45 am]                                                                    121.274233.
                                                                                                      97741; telephone (541) 475–3625; email
                                              BILLING CODE 4338–11–P
                                                                                                      to mbritton@northunit.com.                               Canal Mile Marker—2.11.
                                                                                                      SUPPLEMENTARY INFORMATION:
                                                                                                                                                               Head (m)—6.1.
                                                                                                         General Overview. The North Unit                      Flow (cms)—20.
                                              DEPARTMENT OF THE INTERIOR                                                                                       Site Name—Mile 3.
                                                                                                      Irrigation District (NUID) operates and
                                                                                                      maintains the NUMC on the Deschutes                      Latitude Longitude—44.092839–
                                              Bureau of Reclamation
                                                                                                      Project located in the Deschutes River                 121.256296.
                                              [RR01016000; XXXR4524KK;                                Basin, which supplies irrigation water                   Canal Mile Marker—3.52.
                                              RX.41129361.1010000]                                                                                             Head (m)—6.1.
                                                                                                      to nearly 59,000 acres of farmland in
                                                                                                      Jefferson County, Oregon. Reclamation                    Flow (cms)—20.
amozie on DSK3GDR082PROD with NOTICES1




                                              Notice of Intent To Contract for
                                                                                                      is considering allowing hydroelectric                    Site Name—Mile 18.
                                              Hydroelectric Power Development on
                                                                                                      power development on the NUMC                            Latitude Longitude—44.251184–
                                              the Bureau of Reclamation’s North Unit
                                                                                                      under a Lease of Power Privilege                       121.128517.
                                              Main Canal, Deschutes Project,
                                                                                                      (LOPP).                                                  Canal Mile Marker—18.34.
                                              Madras, Oregon                                                                                                   Head (m)—6.71.
                                                                                                         A LOPP is a congressionally
                                              AGENCY:     Bureau of Reclamation,                      authorized alternative to Federal                        Flow (cms)—21.
                                              Interior.                                               hydroelectric power development. It is                   Site Name—Mile 19.


                                         VerDate Sep<11>2014   17:22 Jun 20, 2018   Jkt 244001   PO 00000   Frm 00061   Fmt 4703   Sfmt 4703   E:\FR\FM\21JNN1.SGM   21JNN1


                                              28862                         Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices

                                                Latitude Longitude—44.2666–                           not interfere with existing contractual                Proposal Content Guidelines
                                              121.12075.                                              commitments related to operations and                     Interested parties should submit
                                                Canal Mile Marker—19.                                 maintenance of the canal system. The                   proposals specifically addressing the
                                                Head (m)—4.4.                                         lessee (i.e., successful proposing entity)             following qualifications, capabilities,
                                                Flow (cms)—16.                                        will be required to enter into a contract              and approach factors. Proposals
                                                Site Name Mile—20.                                    with Reclamation. This contract will, (1)              submitted will be evaluated and ranked
                                                Latitude Longitude—44.2838–                           address requirements related to                        directly based on these factors.
                                              121.11471.                                              coordination of operations and                         Additional information may be
                                                Canal Mile Marker—20.                                 maintenance with Deschutes Project
                                                                                                                                                             provided at the discretion of those
                                                Head (m)—5.36.                                        stakeholders (including the NUID); and
                                                                                                                                                             submitting proposals.
                                                Flow (cms)—21.                                        (2) stipulate that the lessee will be
                                                                                                                                                                (a) Qualifications of Proposing Entity:
                                                Site Name Mile—43.                                    responsible for any increase in
                                                                                                                                                             Provide relevant information
                                                Latitude Longitude—44.500374–                         operations or maintenance costs that are
                                                                                                                                                             describing/documenting the
                                              121.154865.                                             attributable to the hydroelectric power
                                                                                                                                                             qualifications of the proposing entity to
                                                Canal Mile Marker—45.                                 development.
                                                                                                         3. The lessee would be responsible for              plan, design, and implement such a
                                                Head (m)—18.2.                                                                                               project, including, but not limited to:
                                                Flow (cms)—7.1.                                       securing transfer and marketing of the
                                                                                                      power generated by the proposed                           • Type of organization.
                                                Site Name—Mile 48.
                                                                                                      project.                                                  • Business history, including length
                                                Latitude Longitude—44.5368587–                                                                               of time in business, experience in
                                              121.153547.                                                4. All costs incurred by the United
                                                                                                      States related to a proposed LOPP                      funding, and design and construction of
                                                Canal Mile Marker—47.98.                                                                                     similar projects.
                                                Head (m)—3.66.                                        project will be at the expense of the
                                                                                                      lessee. Such costs include management                     • Industry rating(s) that indicate
                                                Flow (cms)—7.2.                                                                                              financial soundness and/or technical
                                                                                                      and coordination of necessary
                                                Site Name—Mile 50 East.                                                                                      and managerial capability.
                                                                                                      Reclamation activities, provision of
                                                Latitude Longitude—44.571091–
                                                                                                      information, conduct of or assistance                     • Experience of key management
                                              121.158783.                                                                                                    personnel.
                                                                                                      with regulatory compliance (including
                                                Canal Mile Marker—19.
                                                                                                      NEPA), consultation during design                         • History of any reorganizations or
                                                Head (m)—51.                                                                                                 mergers with other companies (if
                                                                                                      development and related to operations
                                                Flow (cms)—2.98.                                                                                             applicable).
                                                                                                      and maintenance under a LOPP,
                                                Site Name—Mile 50 West.                               development of the LOPP, necessary                        • Preference status (as applied to a
                                                Latitude Longitude—44.572148–                         contracts with outside consultants, or                 LOPP, the term ‘‘preference entity’’
                                              121.160127.                                             any other cost for which the government                means an entity qualifying for
                                                Canal Mile Marker—19.                                 would be reimbursed by an applicant or                 preference under Section 9(c) of the
                                                Head (m)—3.05.                                        the general public. In addition, the                   1939 Act as a municipality, public
                                                Flow (cms)—7.0.                                       lessee will be required to make annual                 corporation or agency, or cooperative or
                                                Site Name—Mile 52 South.                              payments to the United States for the                  other nonprofit organization financed in
                                                Latitude Longitude—44.601337–                         use of a government facility in the                    whole or in part by loans made pursuant
                                              121.162522.                                             amount of at least 2–3 mills per                       to the Rural Electrification Act of 1936,
                                                Canal Mile Marker—53.69.                              kilowatt-hour of gross energy produced                 as amended).
                                                Head (m)—3.05.                                        by the facility, measured at the                          • Any other information not already
                                                Flow (cms)—7.0.                                       generator(s).                                          requested above or in the following
                                                Site Name—Mile 52 North.                                 5. The LOPP will include provisions                 evaluation categories that demonstrates
                                                Latitude Longitude—44.603526–                         for the mill rate to increase each year                the interested entity’s organizational,
                                              121.161854.                                             commensurate with inflation based on                   technical, and financial ability to
                                                Canal Mile Marker—19.                                 the previous 5-year average of the Gross               perform all aspects of the work.
                                                Head (m)—3.05.                                        Domestic Product (GDP) Price Deflator;                    (b) Proposed Development Plan:
                                                Flow (cms)—7.0.                                       however, the rate of increase will be                  Describe and provide mapping and
                                                Reclamation notified NUID of the                      capped at 5 percent. If the 5-year GDP                 drawings of proposed facilities and
                                              Kinet Inc. proposal and solicited NUID’s                Price Deflator average shows no change                 equipment comprising the LOPP
                                              interest in submitting a proposal as a                  or deflation, the mill rate will remain                project. Include descriptions and
                                              preferred entity. In a subsequent letter                the same as the previous year’s rate.                  locations of structures, turbines,
                                              dated September 21, 2017, NUID                          Annual payments to the United States                   penstocks, transmission lines, access
                                              declined interest in hydroelectric power                will be deposited as a credit to the                   roads, and other appurtenant facilities.
                                              development at the proposed sites. As a                 Reclamation fund and project to be                        Describe proposed capacities and
                                              result, Reclamation is soliciting                       applied against the total outstanding                  general operation of the hydroelectric
                                              proposals for consideration to allow                    reimbursable repayment obligation for                  projects to include generation capacity,
                                              hydroelectric power development under                   reimbursable project construction costs                power source and power consumption,
                                              a LOPP on the NUMC system.                              of the Deschutes Project pursuant to the               configuration, turbine generating
                                                                                                      existing construction cost allocation                  capacity, distribution transmission line
                                              Fundamental Considerations and                          (not applied only against power                        size and route, and other relevant
                                              Requirements                                            construction costs). If the outstanding                aspects of the project.
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                                                1. Under this solicitation,                           reimbursable repayment obligation for                     Describe the ability of generation to
                                              Reclamation may only issue a LOPP for                   project construction costs is satisfied,               provide ancillary services, such as
                                              hydroelectric power development at the                  then the payments will be held as a                    regulation, spinning reserves, and volt-
                                              12 identified NUMC sites described                      statutory credit for the project or                    ampere reactive support, and
                                              herein.                                                 program until an eligible reimbursable                 information on the reliability of the
                                                2. Any LOPP terms for hydroelectric                   project expense is incurred against                    generation, potential maintenance
                                              power development on the NUMC must                      which the credit can be applied.                       outage schedule, and duration.


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                                                                            Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices                                                  28863

                                                 (c) Proposed Approach to Acquisition                 using available water resources in the                 developing, conserving, and utilizing
                                              of Necessary Property Rights: Specify                   public interest.                                       the water resource and protecting
                                              plans for acquiring title to or the right                  Describe proposed studies to                        natural resources; (2) clearly
                                              to occupy and use all lands necessary                   adequately define the extent of the                    demonstrate that the offeror is qualified
                                              for the proposed development,                           adverse and beneficial impacts,                        to develop the hydropower facility and
                                              including such additional lands as may                  potential severity, and potential                      provide for long-term operation and
                                              be required during construction.                        alternatives to mitigate impacts.                      maintenance; and (3) best share the
                                              Address lands necessary for electrical                     (h) Other Study and/or Permit                       economic benefits of the hydropower
                                              distribution lines, access roads, and all               Requirements: Describe planned                         development among parties to the
                                              aspects of project development and                      response to other applicable regulatory                LOPP. A proposal will be deemed
                                              operation and maintenance.                              requirements, including the National                   unacceptable if it is inconsistent with
                                                 (d) Long-Term Operation and                          Historic Preservation Act, Clean Water                 Deschutes Project purposes, as
                                              Maintenance: Provide a description                      Act, Endangered Species Act, and state                 determined by Reclamation.
                                              (with relevant references) of the project               and local laws and licensing                             Reclamation will give preference to
                                              proponent’s experience in operation and                 requirements. Also describe any known                  those entities that qualify as preference
                                              maintenance of hydroelectric or similar                 potential for impact on lands or                       entities (as defined under Proposal
                                              facilities once they are operational and                resources of American Indian tribes,                   Content Guidelines, item (a), of this
                                              over the long-term (i.e., the 40-year lease             including trust resources.                             notice) provided that the preference
                                              contemplated for the proposed                              (i) Project Development Costs and                   entity is well qualified and their
                                              development). Identify the                              Economic Analysis: Estimate the costs                  proposal is at least as well adapted to
                                                                                                      of development, including the cost of                  developing, conserving, and utilizing
                                              organizational structure and plan for the
                                                                                                      studies to determine feasibility,                      the water and natural resources as other
                                              long-term operation and maintenance of
                                                                                                      environmental compliance, project                      submitted proposals. Preference entities
                                              the proposed development. Define how
                                                                                                      design, construction, financing, and the               will be allowed 30 days to improve their
                                              the proposed development would
                                                                                                      amortized annual cost of the                           proposals, if necessary, to be made at
                                              operate in harmony with the NUMC
                                                                                                      investment. Estimate annual operation                  least equal to a proposal(s) that may
                                              system.
                                                                                                      and maintenance, replacement                           have been submitted by a non-
                                                 (e) Contractual Arrangements:
                                                                                                      expenses, annual payments to the                       preference entity.
                                              Describe any anticipated contractual
                                                                                                      United States, and those potentially
                                              arrangements with project stakeholders                                                                         Notice and Time Period To Enter Into
                                                                                                      associated with the Deschutes Project.
                                              of the Deschutes Project, including                                                                            LOPP
                                                                                                      Estimate costs associated with any
                                              contractual arrangements to utilize                                                                              Reclamation will notify, in writing, all
                                                                                                      anticipated additional transmission or
                                              water rights held by NUID. Define how                                                                          entities submitting proposals of
                                                                                                      wheeling services. Identify proposed
                                              the proposed development would                                                                                 Reclamation’s decision regarding
                                                                                                      methods of financing the project. The
                                              operate in harmony with the NUMC                                                                               selection of the potential lessee. The
                                                                                                      anticipated return on investment should
                                              system.                                                                                                        selected potential lessee will have 15
                                                                                                      be estimated and an economic analysis
                                                 (f) Management Plan: Provide a                       should be presented that compares the                  months from the date of selection of the
                                              management plan to accomplish such                      present worth of all benefits and the                  lessee to sign the preliminary lease,
                                              activities as planning, NEPA                            costs of the project.                                  complete the requirements set forth in
                                              compliance, LOPP development, design,                      (j) Performance Guarantee and                       the preliminary lease, and to sign the
                                              construction, facility testing, start-up of             Assumption of Liability: Describe plans                LOPP. The lessee will then have up to
                                              hydropower production, and                              for (1) providing the government with                  3 years from the date of the preliminary
                                              preparation of an Emergency Action                      performance bonds or irrevocable letter                lease agreement to the beginning of
                                              Plan. Prepare schedules of these                        of credit covering completion of the                   construction. Maximum timeframes for
                                              activities as applicable. Describe what                 proposed project, (2) assuming liability               construction will be determined by the
                                              studies are necessary to accomplish the                 for damage to the operational and                      Regional Director. Such timeframes may
                                              hydroelectric power development and                     structural integrity of the NUMC or                    be adjusted for just cause resulting from
                                              how the studies would be implemented.                   other aspects of the Deschutes Project                 actions and/or circumstances that are
                                                 (g) Environmental Impact: Discuss                    caused by construction, operations and/                beyond the control of the lessee.
                                              potential significant adverse impacts                   or maintenance of the hydropower                         Dated: March 22, 2018.
                                              from the proposed development on                        development, and (3) obtaining general
                                              biophysical or sociocultural resource                                                                          Lorri J. Gray,
                                                                                                      liability insurance.                                   Regional Director, Pacific Northwest Region.
                                              parameters. Of particular concern are                      (k) Other Information: This final
                                              potential impacts on any protected                                                                             [FR Doc. 2018–13363 Filed 6–20–18; 8:45 am]
                                                                                                      paragraph is provided for the applicant
                                              aquatic or terrestrial wildlife species or              to include additional information                      BILLING CODE 4332–90–P
                                              associated protected habitat. Other                     considered relevant to Reclamation’s
                                              concerns may include, but are not                       selection process in this matter.
                                              limited to, the impact on land use                                                                             INTERNATIONAL TRADE
                                              adjacent to the proposed development,                   Selection of Lessee                                    COMMISSION
                                              recreation at the surrounding areas,                      Reclamation will evaluate proposals
                                              cultural resources, and Indian Trust                    received in response to this published                 Notice of Receipt of Complaint;
                                              assets. Provide information on the types                notice. Proposals will be ranked                       Solicitation of Comments Relating to
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                                              and severity of expected impacts and                    according to response to the factors                   the Public Interest
                                              proposed methods of resolving or                        described in Fundamental                               AGENCY: U.S. International Trade
                                              mitigating these impacts.                               Considerations and Requirements and                    Commission.
                                                 Describe potential beneficial impacts                Proposal Content Guidelines sections of                ACTION: Notice.
                                              that may be expected from the                           this notice. In general, Reclamation will
                                              development to include such                             give more favorable consideration to                   SUMMARY:   Notice is hereby given that
                                              perspectives as energy conservation or                  proposals that (1) are well adapted to                 the U.S. International Trade


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Document Created: 2018-06-21 01:23:08
Document Modified: 2018-06-21 01:23:08
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of intent to accept proposals, select lessee(s), and contract for hydroelectric power development.
DatesSubmit the written proposal on or before November 19, 2018. Late proposals will not be considered. Delayed delivery to the Regional Power Manager's office due to failures or misunderstandings of the entity and/or of mail, overnight, or courier services will not excuse lateness, and accordingly, are advised to provide sufficient time for delivery.
ContactQuestions regarding proposal requirements or technical data available for the North Unit Main Canal may be directed to Mr. Jake Nink, Bureau of Reclamation, 1150 North Curtis Road, Suite 100, Boise, ID 83706; telephone (208) 378-5090; email [email protected] Upon receipt of written request, Mr. Nink will also arrange an informational meeting and/or site visit with interested entities. In this regard, Reclamation reserves the right to schedule a
FR Citation83 FR 28861 

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