National Defense Authorization Act Proposed ProceduresCentral Valley Project, California

DEPARTMENT OF ENERGY

Western Area Power Administration

National Defense Authorization Act Proposed Procedures--Central

Valley Project, California

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Procedures to Implement Section 2929 of the

1994 National Defense Authorization Act (National Defense Authorization

Act, Pub. L. No. 103-160, 107 Stat. 1547, 1935 (1993)).

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SUMMARY: The Western Area Power Administration (Western), a Federal

power marketing agency of the Department of Energy (DOE), has developed

proposed procedures to fulfill the requirements of section 2929 of the

National Defense Authorization Act for fiscal year 1994 (National

Defense Authorization Act, Pub. L. No. 103-160, 107 Stat. 1547, 1935

(1993)) (NDA Act). Under the proposed procedures to implement the

requirements of the NDA Act, Western would allocate up to 119.223

megawatts (MW) of Power from the Central Valley Project (CVP), which

represents the amount of CVP Power provided as of November 30, 1993, to

military installations. The NDA Act was signed into public law on

November 30, 1993. Section 2929 of the NDA Act provides that, for a 10-

year period beginning on November 30, 1993, the electric power

allocations provided as of November 30, 1993, by Western from the CVP

to military installations in the State of California which have been

closed or approved for closure pursuant to the Defense Base Closure and

Realignment Act of 1990 (part A, Title XXIX, Pub. L. 101-510; 10 U.S.C.

2687 note) (1990 Act) shall be reserved for sale through Long-Term

Contracts to Preference Entities which agree to use such Power to

promote economic development at a military installation that is closed

or approved for closure pursuant to the 1990 Act. To the extent Power

reserved by the NDA Act is not disposed of through Long-Term Contracts,

it shall be made available on a temporary basis during such 10-year

period to military installations in the State of California through

Short-Term Contracts. By implementing these Procedures, Western will

establish the criteria to allocate the Power made available as a result

of the NDA Act.

The procedures set forth in this Federal Register will explain in

detail how Western intends to implement the NDA Act. Under the proposed

NDA Act Procedures, Western has identified the Power that will be

classified as NDA Act Power and the types of services and contracts

that will be offered. Also set forth under the proposed NDA Act

Procedures are the general eligibility criteria that Western will apply

to all applicants requesting an Allocation of NDA Act Power, and the

procedures to be used by applicants when applying for NDA Act Power,

which include demonstration that certain economic development criteria

are being met. Lastly, Western has set forth the procedures that will

be used in allocating NDA Act Power to eligible applicants, including a

priority list developed by Western for allocating NDA Act Power. In

general, the proposed Procedures provide that the allocation of CVP

Power as of November 30, 1993, at a military installation that is

closed or approved for closure under the 1990 Act will be classified as

NDA Act Power and will be reserved through November 30, 2003, for use

at that military installation. Until the NDA Act Power is fully

utilized at that military installation, the NDA Act Power will be made

available on a temporary basis as described in Section G.1. of the NDA

Act Procedures.

NDA Act Power will be available to the following types of entities,

in the following priority:

1. First for a military load at a Closed Military Installation that

received CVP Power as of November 30, 1993, or to qualified preference

entities promoting economic development at such closed military

installation.

2. Second, on a recallable basis with 3 years' notice, to a

qualified preference entity promoting economic development at a Closed

Military Installation that did not have CVP Power as of November 30,

1993.

3. Third, on a recallable basis with 6 months' notice, to a

military branch which had CVP Power at a Closed Military Installation

as of November 30, 1993, for use within that military branch at a

military installation within the CVP marketing area.

4. Fourth, on a recallable basis with 6 months' notice, to any

military branch for use at a military installation within the CVP

marketing area, or to a negatively affected customer.

DATES: The comment period on the proposed procedures will begin with

the publication of this notice in the Federal Register and will end

August 10, 1994. To be assured consideration, all written comments

should be received by Western by the end of the comment period. Western

will hold a public information forum on the proposed NDA Act Procedures

at 9 a.m. on July 27, 1994. A public comment forum on the proposed NDA

Act Procedures will follow at 1 p.m. on July 27, 1994. The forums will

be held at the Holiday Inn-Holidome, 5321 Date Avenue, Sacramento,

California.

ADDRESSES: All written comments regarding the proposed procedures to

implement the requirements of the NDA Act should be directed to Mr.

James C. Feider, Area Manager, Sacramento Area Office, Western Area

Power Administration, 1825 Bell Street, Suite 105, Sacramento, CA

95825-1097. All documentation developed or retained by Western for the

purpose of developing these procedures will be available for inspection

and copying at the Sacramento Area Office located at the above address.

FOR FURTHER INFORMATION CONTACT: Zola M. Jackson, Assistant Area

Manager for Power Marketing, Sacramento Area Office, Western Area Power

Administration, 1825 Bell Street, Suite 105, Sacramento, CA 95825-1097,

(916) 649-4421.

After all public comments have been thoroughly considered, Western

will prepare and publish the final NDA Act Procedures in the Federal

Register.

SUPPLEMENTARY INFORMATION: On October 5, 1992, Western's Sacramento

Area Office published notice of the Final 1994 Power Marketing Plan,

Central Valley Project, California (57 FR 45782), governing allocations

of 529.946 MW of Power from the CVP. That notice provided the final

allocation of a total of 119.223 MW of Power to certain Department of

Defense (DOD) military installations, as specified in Appendix A

herein. Contracts for such Power were entered into for a term ending

December 31, 2004. The power contracts with the DOD agencies allow for

certain shifts of Power among military installations with approval by

Western. Effective November 30, 1993, such shifts became subject to the

NDA Act.

As of the date of publication of this Federal Register, the

following military installations are scheduled to close pursuant to the

1990 Act:

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

Type III

Military installations Long-term withdrawable Total

firm power

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

Naval Air Station, Moffett

Field, CA...................... 4.170 2.270 6.440

Naval Station, Treasure Island,

CA............................. 3.020 2.581 5.601

Naval Shipyard, Mare Island,

Vallejo, CA.................... 20.020 2.148 22.168

Totals...................... 27.210 6.999 34.209

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

Western is providing notice by this Federal Register that 34.209 MW

of the total possible 119.223 MW (as shown in Appendix A) will be

allocated pursuant to the final NDA Act Procedures on a first-come,

first-served basis beginning 30 days after publication of the final

procedures. As any of the remaining amount of 85.014 MW becomes

available for allocation, pursuant to the NDA Act, Western will provide

notification of the availability of that Power.

Proposed Procedures for the NDA Act

These proposed procedures address how Western plans to allocate up

to 119.223 MW of CVP contract rate of delivery (CROD) provided as of

November 30, 1993, to military installations closed or approved for

closure pursuant to the 1990 Act. When determining who will receive

Allocations of Power, Western will exercise its discretion as provided

by law.

A. Acronyms and Definitions

As used herein, the following acronyms and definitions when used in

initial capitalization, whether singular or plural, shall have the

following meanings:

Allocation: An offer by Western to sell to an applicant a specified

type and quantity of NDA Act Power made available by Western in

accordance with the final NDA Act Procedures.

Allottee: A Preference Entity receiving an Allocation pursuant to

the final NDA Act Procedures.

Closed Military Installation: A military installation in the CVP

Marketing Area which is closed or approved for closure pursuant to the

1990 Act.

Contract Rate of Delivery (CROD): The maximum amount of Power

served by Western on an annual basis under contract between a

contractor and Western, and as it may be reduced or increased in

accordance with applicable law or contractual terms.

Contract 2948A: Contract No. 14-06-200-2948A between the Pacific

Gas and Electric Company and Western, which provides for certain sales,

exchanges, and transmission of electric Power.

CVP: The Central Valley Project, a multipurpose Federal water

development project extending from the Cascade Range in northern

California to the plains along the Kern River south of Bakersfield,

operated by the Bureau of Reclamation.

CVP Marketing Area: The area which generally encompasses the CVP

water basin in northern and central California extending from the

Cascade Range in northern California to the plains along the Kern River

south of Bakersfield.

Final Withdrawal Procedures: Those procedures published in the

Federal Register on March 5, 1986 (51 FR 7702), which specify the

methods to be used by Western for the adjustment of CROD under varying

circumstances.

Long-Term Contract: A contract offered to a Preference Entity who

is promoting an economic development project at either a Priority-One

Base or a Priority-Two Base.

Long-Term Firm NDA Act Power: Firm Power allocated by Western and

subject to the terms and conditions specified in an electric service

contract and the final NDA Act Procedures.

Marketing Plan: The Final 1994 Power Marketing Plan, Central Valley

Project, California (57 FR 45782).

NDA Act Power: The CVP CROD, in the amounts set forth in Appendix

A, which shall be determined to be NDA Act Power by Western based on

the following two conditions: (1) such CVP CROD was under contract to

military installations in the CVP Marketing Area as of November 30,

1993, and (2) the military installations with such CVP CROD are closed

or approved for closure pursuant to the 1990 Act.

NDA Act Power Entitlement: An amount of NDA Act Power equal to the

amount of CVP CROD under contract with a Priority-One base as of

November 30, 1993.

NDA Act Procedures: Those procedures adopted by Western to fulfill

the requirements of the NDA Act.

Negatively Affected Customer: A Preference Entity with a contract

for CVP Power from Western as of November 30, 1993, which is

detrimentally affected as a result of a Closed Military Installation

which is located within the service area of such Preference Entity.

Pacific Gas and Electric Company (PG&E): The investor-owned utility

having a service area in northern and central California and load

control responsibility for the northern and central California area.

Power: Capacity and associated energy.

Preference Entity: An entity that meets the requirements of

Reclamation Law, which provides that preference shall be given to

municipalities and other public corporations or agencies; and also to

cooperatives and other nonprofit organizations financed in whole or in

part by loans made pursuant to the Rural Electrification Act of 1936

(Reclamation Act of 1939, section 9(c), 43 U.S.C. 485h(c)).

Priority-One Base: A Closed Military Installation with CVP CROD as

of November 30, 1993.

Priority-Three Base: A military installation, not scheduled for

closure, which meets the eligibility criteria set forth in the

Marketing Plan.

Priority-Two Base: A Closed Military Installation without a CVP

CROD.

Short-Term Contract: A contract offered on a temporary basis to a

Preference Entity at a Priority-Three Base or to a Negatively Affected

Customer.

Type III Withdrawable NDA Act Power: Firm Power which is

withdrawable to protect the 1,152-MW Load Level before withdrawal of

other types of noninterruptible Power and which is subject to

additional terms and conditions specified in an electric service

contract.

Unutilized NDA Act Power: NDA Act Power which is not allocated

under the final NDA Act Procedures.

Western: Western Area Power Administration, United States

Department of Energy (DOE), a Federal power marketing administration

responsible for marketing the surplus generation from Federal

hydroelectric multipurpose projects pursuant to Reclamation Law and the

DOE Organization Act (91 Stat. 565, 42 U.S.C. Sec. 7101 et seq.).

1,152-MW Load Level: The maximum simultaneous demand that Western

provides, and that PG&E is obligated to support, in accordance with the

terms of Contract 2948A.

B. Reclassification of CVP CROD to NDA Act Power

If at any time through November 30, 2003, an amount of CVP CROD set

forth in Appendix A is determined to be NDA Act Power by Western,

Western will administratively reclassify that amount of CVP CROD to NDA

Act Power. Western shall recall that amount of CVP CROD from the

military branch with a contractual right for that CVP CROD, and Western

shall amend the associated contract to reflect the recall of that

amount of reclassified CROD. At that time, Western shall offer the

military branch the right to shift any remaining CVP CROD among the

bases with CVP CROD at the time of the recall. The NDA Act Power will

be offered to the military branch it was recalled from, under a short-

term contract, subject to Western allocating all or part of such NDA

Act Power first to a qualified applicant with a greater right to such

NDA Act Power pursuant to the final NDA Act Procedures.

C. Types of Service

1. Long-Term Firm NDA Act Power

Western proposes to allocate up to a total of 106.000 MW as Long-

Term Firm NDA Act Power (identified in Appendix A), as such Power

becomes available due to base closures pursuant to the 1990 Act.

2. Type III Withdrawable NDA Act Power

Western proposes to allocate up to a total of 13.223 MW as Type III

Withdrawable NDA Act Power (identified in Appendix A), as such Power

becomes available due to base closures pursuant to the 1990 Act.

D. Types of Contracts

1. Long-Term Contracts

Long-Term Contracts may be offered to Preference Entities promoting

an economic development project at a Closed Military Installation. The

termination date of any such contract shall be no later than December

31, 2004, and such contracts shall be subject to the final NDA Act

Procedures and the Final Withdrawal Procedures.

2. Short-Term Contracts

Short-Term Contracts may be offered to Preference Entities at a

Priority-Three Base or to a Negatively Affected Customer. Western shall

have the right to recall all or any part of the NDA Act Power CROD

under such Short-Term Contract upon giving 6 months' written notice.

The termination date of the contract shall be no later than December

31, 2004, and such contract shall be subject to the final NDA Act

Procedures and the Final Withdrawal Procedures.

E. General Eligibility Criteria

General eligibility criteria apply to applicants seeking an

Allocation of NDA Act Power under the final NDA Act Procedures.

Criteria 1 through 6 shall apply to applicants who are promoting an

economic development project at a Closed Military Installation.

Criteria 4 through 7 shall apply to all other applicants seeking an

Allocation of NDA Act Power.

1. Applicant must have an economic development project plan that

fulfills the following criteria:

(i) Promotes the establishment or expansion of industrial,

commercial, or governmental facilities at the Closed Military

Installation, and

(ii) Helps create or retain jobs in the near term and assists in

the creation of additional long-term employment opportunities. The

economic development project plan must include a specific plan for

hiring the unemployed and underemployed persons from the area near the

Closed Military Installation, and

(iii) Has been approved by the appropriate governing body of the

military installation in which it is, or will be, located and has

community support, which is demonstrated by appropriate local

government agency's written approval of the economic development

project plan, and

(iv) Is supported by public and/or private sector investment and

can present evidence of adequate funding, and

(v) Demonstrates that necessary permits, land acquisitions, or

options on land and right-of-way have been obtained; demonstrates

either that ownership or a long-term lease of the electrical

distribution system has been obtained; and demonstrates that all other

legal requirements of the application process have been satisfied.

2. The economic development project must occur at a Closed Military

Installation.

3. Applicant must provide documentation certifying that the entity

operating the economic development project is eligible to exist and

operate at the Closed Military Installation that is the site of the

economic development project.

4. Applicant must qualify as a Preference Entity.

5. Applicant must be located within the CVP Marketing Area.

6. An applicant's load at each delivery point shall be no less than

an annual peak of 500 kW.

7. Those applicants applying for NDA Act Power to be used at a

Priority-Three Base must exist and operate and be ready, willing, and

able to receive and use, or receive and distribute such NDA Act Power

beginning on the date of application. Those applicants applying for NDA

Act Power as a Negatively Affected Customer must be a Preference Entity

with a contract for CVP Power from Western as of November 30, 1993.

F. Applications for NDA Act Power

Prospective applicants may begin requesting NDA Act Power from

Western at any time later than 30 days after publication of the Federal

Register notice detailing the final NDA Act Procedures, except that

requests for applications will not be considered after November 30,

2003. Requests shall be considered on a first-come, first-served basis.

1. Letter of Interest

(i) To be considered for NDA Act Power, each prospective applicant

must first submit to the Area Manager, Sacramento Area Office, a letter

of interest in receiving NDA Act Power. In the letter of interest, the

prospective applicant must indicate whether it is either a Preference

Entity requesting an allocation of NDA Act Power for use at a Priority-

One, Priority-Two, or Priority-Three Base, or a Negatively Affected

Customer.

(A) For Preference Entities requesting an allocation of NDA Act

Power to be used at a Priority-One, Priority-Two, or Priority-Three

Base, the letter of interest must also indicate the Closed Military

Installation where the NDA Act Power will be used, and the estimated

date when the economic development project plan will be completed.

(B) Negatively Affected Customers must also identify in the letter

of interest, the Closed Military Installation that is located within

its service area and the direct effects of the closing of that military

installation on the Negatively Affected Customer.

(ii) If the letter of interest does not meet the criteria set forth

in F.1.(i) (A) and (B) above, Western will notify the requestor within

60 days of receiving the request.

(iii) If the letter of interest meets the criteria set forth in

F.1.(i) (A) and (B) above, Western will determine whether NDA Act Power

can be made available to meet the request.

(A) If NDA Act Power is available, Western shall mail an applicant

profile data (APD) form to the prospective applicant within 60 days of

receiving the request. A completed application package which contains

all of the information listed on the APD will be required. This ensures

that Western will have a uniform basis upon which to evaluate the

applications.

(B) If NDA Act Power is not available, Western will send a letter

to the prospective applicant within 60 days of receiving the letter of

interest. This letter will state that there is no NDA Act Power

currently available to meet the request. Western will place the

prospective applicant's name on a list of interested parties. At any

time that NDA Act Power becomes available, Western will send a notice

of availability to all interested parties from which Western has

received a letter of interest and mail an APD form to the prospective

applicant.

2. Applicant Profile Data (APD):

The content and format of the APD is outlined below. The

information should be submitted in the sequence listed. The applicant

must provide all requested information or the most reasonable estimates

that are available. The applicant should note any requested information

that is not applicable or not available. The APD must be typed and two

copies submitted by certified mail to the address provided by Western's

Sacramento Area Office. The burden of ensuring consistency of the

content of both copies rests with the applicant. Western is not

responsible for errors in data or missing pages.

All items of information in the APD should be answered as if

prepared by the organization seeking the Allocation. The application

package shall consist of the following:

(i) Applicant.

(A) Applicant's name and address.

(B) Person(s) representing applicant: Please provide the name,

address, title, and telephone number of such person(s).

(C) Type of organization: For example, municipality, rural electric

cooperative, irrigation district, State agency, or Federal agency.

(D) Parent organization.

(E) Names of members.

(F) Applicable law under which organization was established.

(ii) The proposed economic development project plan, including the

name of the military installation on which the economic development

project is proposed.

(iii) Documentation certifying that the entity operating the

economic development project is eligible to exist and operate at the

Closed Military Installation.

(iv) Service Requested:

The amount of electrical service requested.

(v) Loads:

Projected maximum demand (kilowatts (kW)) and energy use

(kilowatthours (kWh)) for each month for a period of 5 calendar years,

beginning on the proposed date that the economic development project

begins operating.

(vi) Transmission:

(A) Points of delivery: Provide the preferred point(s) of delivery

on Western's system or a third-party's system, the required voltage of

service, and the capacity desired at each point of delivery.

(B) Transmission arrangements: Describe the transmission

arrangements necessary to deliver Power to the requested points of

delivery.

(vii) Other Information:

The applicant is welcome to provide any other information pertinent

to receiving an Allocation.

(viii) Signature:

The signature and title of an appropriate official who is able to

attest to the validity of the information submitted and who is

authorized to submit the application is required.

3. Western's Consideration of Applications

(i) When the application package is received by Western, Western

will verify that the general eligibility criteria set forth in Section

E. have been met, and that all items requested in the APD have been

provided.

(A) Western will request in writing additional information from any

applicant whose application package is determined to be deficient. The

applicant shall have 60 days from the postmark date on Western's

request to provide the information.

(B) If Western determines that the applicant does not meet the

general eligibility criteria, Western will send (within 60 days of

Western's receipt of the application package) a letter explaining why

the applicant did not qualify.

(C) If the applicant has met the general eligibility criteria,

Western will determine the amount of Power to be allocated pursuant to

the general allocation and contract principles set forth in Section G.

Western will send a draft contract to the applicant for review which

identifies the terms and conditions of the offer and the amounts and

types of available Power.

(ii) All NDA Act Power shall be allocated according to the

procedures set forth in the general allocation and contract principles.

(iii) If Western determines that reallocations are necessary to

fulfill the applicant's request, Western will initiate the reallocation

procedures set forth in the general allocation and contract principles.

(iv) In the event that two or more applicants are requesting NDA

Act Power and Western does not have enough NDA Act Power available to

meet those requests, Western shall use its discretion to determine the

amounts of NDA Act Power to be allocated. Western shall use information

contained in the application package, including, if applicable, the

economic development project plan to make its decision.

(v) Western reserves the right to determine the amount of NDA Act

Power to allocate to an applicant, as justified by the applicant in its

application package, including, if applicable, the economic development

project plan. As loads increase at a Priority-One Base, the Allottee

may request and Western may allocate any amount of NDA Act Power up to

the Priority-One Base's NDA Act Power Entitlement to meet such increase

in loads. If necessary, Western may recall NDA Act Power under the

general allocation and contract principles to allocate to the Priority-

One Base.

G. General Allocation and Contract Principles

The general allocation criteria and contract principles established

in the Marketing Plan shall apply to Allocations of NDA Act Power. To

meet the specific requirements of the NDA Act, Western shall also apply

the following allocation criteria to all applicants seeking an

Allocation of NDA Act Power. All Allocations of NDA Act Power shall be

at the sole discretion of Western and shall be determined on a case-by-

case basis.

Allocations of NDA Act Power will be made in amounts solely

determined by Western, subject to the final NDA Act Procedures.

1. Allocation Rights:

Western will allocate NDA Act Power to qualified applicants based

on the following hierarchy:

(i) First, for a military load at a Priority-One Base, or to

qualified Preference Entities promoting economic development at a

Priority-One Base.

Such first right to NDA Act Power will be limited to the NDA Act

Power Entitlement designated for a Priority-One Base.

(ii) Second, to a Preference Entity at a Priority-One Base for

amounts in excess of the NDA Act Power Entitlement for such base, to

serve a military load or to promote an economic development project; or

to a Preference Entity promoting an economic development project at a

Priority-Two Base.

NDA Act Power allocated under this paragraph will be subject to

recall upon a 3-year written notice in order to fulfill an Allocation

to a Priority-One Base which has not fully utilized its NDA Act Power

Entitlement under G.1.(i) above.

(iii) Third, to a military branch which had a CVP CROD at a Closed

Military Installation as of November 30, 1993, for use at a Priority-

Three Base within that military branch within the CVP Marketing Area.

NDA Act Power allocated under this paragraph will be subject to

recall upon a 6-month written notice in order to serve a Priority-One

or Priority-Two Base.

(iv) Fourth, to any military branch for use at a Priority-Three

Base within the CVP Marketing Area, or to a Negatively Affected

Customer.

NDA Act Power allocated under this subparagraph will be subject to

recall upon a 6-month written notice to serve a Priority-One or

Priority-Two Base, or a Priority-Three Base pursuant to G.1.(iii)

above.

2. Allocation of NDA Act Power

Western will use the following procedures to allocate NDA Act Power

to a qualified applicant:

(i) Western will determine whether sufficient Unutilized NDA Act

Power is available to fulfill the applicant's request.

(ii) If sufficient Unutilized NDA Act Power is available to fulfill

the applicant's request, Western shall allocate the amount needed.

(iii) If sufficient Unutilized NDA Act Power is not available to

fulfill the applicant's request, Western shall allocate all Unutilized

NDA Act Power and recall and reallocate NDA Act Power CROD to fulfill

the request by following the reallocation procedures stated in G.3.

below.

(iv) To ensure the most equitable distribution of long-term firm

NDA Act and Type III Withdrawable NDA Act Power, Western proposes that

each Allocation of NDA Act Power shall be determined as follows:

TN06JY94.023

TN06JY94.024

D is defined as Long-Term Firm NDA Act Power available at the time of

the Allocation.

E is defined as Type III Withdrawable NDA Act Power available at the

time of the Allocation.

If using the above procedure would result in an Allocation of Long-

Term Firm NDA Act Power which is less than 500 kW, Western will modify

the procedure to ensure that the Allottee receives a minimum of 500 kW

of Long-Term Firm NDA Act Power.

(v) Allocations will be made only to those applicants who qualify

pursuant to the final NDA Act Procedures. The NDA Act Power must be

used at a Closed Military Installation or a Priority-Three Base, or the

NDA Act Power must be used by a Negatively Affected Customer.

(vi) The Allottee has the right to purchase NDA Act Power only when

a new electric service contract between Western and the Allottee has

been executed and when all conditions precedent in that contract have

been satisfied.

(vii) To consummate any Allocation of NDA Act Power, an electric

service contract shall be executed within 6 months of a contract offer

by Western, unless otherwise agreed in writing by Western.

(viii) Western reserves the right to recall any amount of NDA Act

Power CROD from an Allottee if the NDA Act Power CROD allocated is in

excess of the loads being served by the Allottee.

(ix) Subject to the final NDA Act Procedures, Western's

Administrator has the sole discretion to reallocate any NDA Act Power

CROD that becomes available for marketing if an Allottee has failed to

accept a contract within the period allowed, or if a contract has

terminated, subject to the final NDA Act Procedures.

3. Reallocation Procedures

When Western must recall NDA Act Power CROD in order to meet a

request for NDA Act Power, Western will use the following procedures

and hierarchy:

(i) Allottees receiving Power pursuant to section G.1.(iv) above.

This Power is subject to recall by Western upon a 6-month written

notice.

(ii) Allottees receiving Power pursuant to section G.1.(iii) above.

This Power is subject to recall by Western upon a 6-month written

notice.

(iii) Allottees receiving Power pursuant to section G.1.(ii) above.

This Power is subject to recall by Western upon a 3-year written

notice.

(iv) If Western determines that a partial recall of NDA Act Power

from any of the priority groups identified above is necessary to

fulfill the request, Western shall apply the following formula to

determine the amount of NDA Act Power to be recalled from each

Allottee.

TN06JY94.025

A is defined as each Allottee's contribution to the sum of the NDA Act

Power CROD for all Allottees in the priority group.

B is the sum of all Allottees' NDA Act Power CROD in the priority

group.

C is the requested amount to be recalled from the priority group.

4. Withdrawal Procedures

When Western is required to initiate withdrawals of Type III

Withdrawable NDA Act Power pursuant to the Final Withdrawal Procedures,

Western shall determine the amount to be withdrawn from each Allottee

by using the Final Withdrawal Procedures. Western will then total the

amounts to be withdrawn from each Allottee and will use the following

hierarchy to initiate withdrawals of the Type III Withdrawable NDA Act

Power:

(i) Allottees receiving Power pursuant to section G.1.(iv).

(ii) Allottees receiving Power pursuant to section G.1.(iii).

(iii) Allottees receiving Power pursuant to section G.1.(ii).

(iv) Allottees receiving Power pursuant to section G.1.(i).

(v) If Western determines that a partial withdrawal of Type III

Withdrawable NDA Act Power from any of the above-mentioned groups is

necessary, Western shall apply the following formula to determine the

amount of Type III Withdrawable NDA Act Power to be withdrawn.

TN06JY94.026

A is defined as each Allottee's contribution to the sum of the Type III

Withdrawable NDA Act Power for all the Allottees within the group.

B is the sum of all Allottees' Type III Withdrawable NDA Act Power

within the group.

C is the requested amount of Type III Withdrawable NDA Act Power to be

withdrawn from the group.

5. Contract Terms for the Purpose of NDA Act Power

(i) Long-Term Contracts:

Western proposes that Long-Term Contracts entered into under the

final NDA Act Procedures shall provide for electric service for a

period ending by December 31, 2004, and be subject to the reallocation

procedures set forth in the final NDA Act Procedures. The effective

date of the Long-Term Contract shall be determined by Western at the

time of the contract offer. To abide by the requirements of the NDA

Act, Western shall have the right to recall all or any part of the NDA

Act Power CROD.

(ii) Short-Term Contracts:

Western proposes that Short-Term Contracts entered into under the

final NDA Act Procedures shall provide for electric service during a

temporary period ending by December 31, 2004, subject to the

reallocation procedures set forth in the final NDA Act Procedures. The

effective date of the Short-Term Contract shall be determined by

Western at the time of the contract offer. To abide by the requirements

of the NDA Act, Western shall have the right to recall all or any part

of the NDA Act Power CROD.

(iii) For any applicant requesting NDA Act Power to be used for an

economic development project, the point of delivery for the NDA Act

Power must be at the Closed Military Installation where the NDA Act

Power will be used, unless otherwise agreed to by Western.

(iv) The minimum Long-Term Firm NDA Act Power CROD shall be 500 kW.

(v) Transmission Service:

All transmission arrangements beyond Western's CVP system are the

full responsibility of the Allottee. Western will assist the Allottee

in obtaining third-party transmission arrangements with PG&E for

delivery of Power allocated under the final NDA Act Procedures.

Nonetheless, each Allottee is ultimately responsible for obtaining its

own delivery arrangements. Western reserves the right to terminate a

contract if the Allottee is unable to arrange for the transmission

necessary to receive the CROD within 6 months of the execution of the

contract.

(vi) For those Allottees that receive NDA Act Power to be used at a

Closed Military Installation, the following provisions must be complied

with:

(A) Western reserves the right to terminate a contract if the

Allottee cannot demonstrate that it is using the NDA Act Power for an

economic development project within 1 year of the execution of the

contract, unless otherwise agreed.

(B) The Allottee must provide a report to Western each January 15,

which describes the benefits of the NDA Act Power CROD being passed on

to the organization operating the economic development project. This

report must be provided to Western in such a way that Western can

separately identify the composite energy and capacity costs stated in

mills per kWh of NDA Act Power and non-NDA Act Power. The report must

also show that the economic development project is still in operation.

(C) Western, at its sole discretion, shall have the right to either

withdraw NDA Act Power or terminate its contract with the Allottee upon

30 days' written notice if the Allottee does not comply with

G.5.(vi)(B) above for each year of the contract.

(vii) Standard Provisions:

The contracts entered into as a result of the final NDA Act

Procedures will incorporate Western's standard provisions for power

sales contracts, resale of electric energy, and conservation and

renewable energy in addition to the General Power Contract Provisions.

Western is in the process of developing procedures to require that all

long-term firm customers develop an integrated resource plan consistent

with the Energy Policy Act of 1992. It is anticipated that these

procedures will be effective in late 1994.

Appendix A

[The military installations receiving CVP Power and their respective CVP

CRODs as of November 30, 1993, are listed below]

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

Long-term Type III

Military installations firm power withdrawable Total

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

Parks Reserve Forces Training

Area, Dublin, CA............... 0.500 ............ 0.500

Defense Distribution Depot, San

Joaquin, CA (Sharpe Facility).. 4.000 ............ 4.000

Defense Distribution Depot, San

Joaquin, CA (Tracy Facility)... 3.800 ............ 3.800

Naval Weapons Station, Concord,

CA............................. 2.170 0.098 2.268

Naval Radio Station, Dixon, CA.. 1.040 ............ 1.040

Naval Air Station, Lemoore, CA.. 16.000 ............ 16.000

Naval Air Station, Moffett

Field, CA...................... 4.170 2.270 6.440

Naval Security Group Activity,

Skaggs Island, CA.............. 0.650 ............ 0.650

Naval Communication Station,

Stockton, CA................... 3.630 ............ 3.630

Naval Station, Treasure Island,

CA............................. 3.020 2.581 5.601

Naval Shipyard, Mare Island,

Vallejo, CA.................... 20.020 2.148 22.168

Beale AFB, Marysville, CA....... 20.507 1.068 21.575

McClellan AFB, Sacramento, CA... 15.094 1.906 17.000

Onizuka AFB, Menlo Park, CA..... ........... 0.500 0.500

Travis AFB, Fairfield, CA....... 11.299 1.352 12.651

Travis Wherry, Fairfield, CA.... 0.100 1.300 1.400

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

Totals...................... 106.00 13.223 119.223

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

Regulatory Procedure Requirements

Regulatory Flexibility Analysis

Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 601 et

seq., each agency, when required to publish a proposed rule, is further

required to prepare and make available for public comment an initial

regulatory flexibility analysis to describe the impact of the rule on

small entities. Western has determined that (1) this rulemaking relates

to services offered by Western and, therefore, is not a rule within the

purview of the Act, and (2) the impacts of an Allocation from Western

would not cause an adverse economic impact to such entities. The

requirements of this Act can be waived if the head of the agency

certifies that the rule will not, if promulgated, have a significant

economic impact on a substantial number of small entities. By his

execution of this Federal Register notice, Western's Administrator

certifies that no significant economic impact on a substantial number

of small entities will occur.

Environmental Compliance

The National Environmental Policy Act of 1969, 42 U.S.C. Sec. 4321

et seq., and implementing regulations issued by the Council on

Environmental Quality, 40 CFR Sec. 1500 et seq., and the Department of

Energy, 10 CFR Sec. 1021, require that the environmental effects of

agency decisions be studied and considered by decision makers. Studies

were made to determine whether there were significant impacts to the

environment as a result of the original allocation of this Power to the

military installations. These studies and analysis are published in the

Revised Environmental Assessment and Finding of No Significant Impact

which were prepared by Western for its Sacramento Area Office 1994

Power Marketing Plan. Western is examining the applicability of the

1994 Revised Environmental Assessment to these Power allocations.

Paperwork Reduction Act Of 1980

The Paperwork Reduction Act of 1980, 44 U.S.C. 3501 et seq.,

requires that certain information collection requirements be approved

by the Office of Management and Budget (OMB) before information is

requested of the public. OMB has issued a final rule on the Paperwork

Burdens on the Public, 48 FR 13666, March 31, 1983.

Determination Under Executive Order 12866

DOE has determined that this is not a significant regulatory action

because it does not meet the criteria of Executive Order 12866, 58 FR

51735. Western has an exemption from centralized regulatory review

under Executive Order 12866; accordingly, no clearance of this notice

by OMB is required.

Issued at Washington, DC, June 16, 1994.

William H. Clagett,

Administrator.

[FR Doc. 94-15980 Filed 7-5-94; 8:45 am]

BILLING CODE 6450-01-P