National Environmental Policy Act Implementing Procedures

DEPARTMENT OF ENERGY

10 CFR Part 1021

RIN 1901-AA67

National Environmental Policy Act Implementing Procedures

AGENCY: Department of Energy.

[[Page 64604]]

ACTION: Final rule.

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SUMMARY: The Department of Energy (DOE or the Department) is amending

its regulations governing compliance with the National Environmental

Policy Act (NEPA). These amendments incorporate changes primarily

related to DOE's power marketing activities, based on DOE's experience

in applying the current NEPA regulations. The revised regulations are

intended to improve DOE's efficiency in implementing NEPA requirements

by reducing costs and preparation time, while maintaining quality,

consistent with the DOE Secretarial Policy Statement on NEPA issued in

June 1994.

EFFECTIVE DATE: This rule will become effective January 6, 1997.

FOR FURTHER INFORMATION CONTACT: Carol Borgstrom, Director, Office of

NEPA Policy and Assistance, EH-42, U.S. Department of Energy, 1000

Independence Avenue, SW., Washington, DC 20585-0119, (202) 586-4600 or

leave a message at (800) 472-2756.

SUPPLEMENTARY INFORMATION:

I. Background

The National Environmental Policy Act of 1969 (42 USC 4321 et seq.)

requires that Federal agencies prepare environmental impact statements

for major Federal actions that may ``significantly affect the quality

of the human environment.'' NEPA also created the President's Council

on Environmental Quality (CEQ), which issued regulations in 1978

implementing the procedural provisions of NEPA. Among other

requirements, the CEQ NEPA regulations (40 CFR Parts 1500-1508) require

Federal agencies to adopt their own implementing procedures to

supplement the Council's regulations. DOE's NEPA implementing

regulations were promulgated in 1992 (57 FR 15122, April 24, 1992) and

are codified at 10 CFR Part 1021.

On February 20, 1996, DOE published a proposed rulemaking to revise

the 1992 NEPA implementing regulations (61 FR 6414). Publication of the

Notice of Proposed Rulemaking began a 45-day public comment period that

originally ended on April 5, 1996. In response to requests, the comment

period was subsequently reopened on April 19, 1996 (61 FR 17257), and

extended until May 10, 1996. As part of the notice and comment process

and also in response to requests, DOE held a public hearing on the

proposed amendments on May 6, 1996. The final rule on all of the

proposed amendments, other than those that pertain to power marketing

activities, was published on July 9, 1996 (61 FR 36222). Regarding the

power marketing activities, DOE decided to solicit further input,

especially from state and Federal agencies that have responsibility for

environmental review of comparable non-federal utility projects in the

Pacific Northwest. Therefore, in the same issue of the Federal Register

as noted above (July 9, 1996), DOE published a notice of limited

reopening of the comment period on the following proposed amendments to

Subpart D--Typical Classes of Actions, which primarily affect power

marketing activities: B4.1-B4.3, B4.6, B4.10-B4.13, C4, C7, and D7 (61

FR 35990). In response to a request, DOE also provided further

clarification of the rationale for two of the proposed amendments:

B4.1, Contracts/marketing plans/policies for excess electric power, and

B4.3, Electric power marketing rate changes. The comment period was

extended until August 8, 1996.

Copies of all written comments and the transcript of the public

hearing held on May 6, 1996, have been provided to CEQ and are

available for public inspection at the DOE Freedom of Information

Reading Room, Room 1E-190, Forrestal Building, 1000 Independence

Avenue, SW., Washington, DC 20585, (202) 586-6020.

The following amendments relating primarily to power marketing

activities revise subpart D of the existing regulations by expanding or

clarifying existing classes of actions. This final rule adopts the

amendments proposed in the Notice of Proposed Rulemaking for the power

marketing classes of actions listed above, with certain changes

discussed below, and amends the existing regulations at 10 CFR Part

1021. Copies of the final amendments to the rule are available upon

request from the information contact listed above.

In accordance with the CEQ NEPA regulations, 40 CFR 1507.3, DOE has

consulted with CEQ regarding these final amendments to the DOE NEPA

rule. CEQ has found that the amendments conform with NEPA and the CEQ

regulations and has no objection to their promulgation.

II. Statement of Purpose

The amendments to the DOE NEPA regulations are intended to improve

the efficiency of DOE's implementation of NEPA by expanding or

clarifying certain classes of actions, primarily related to power

marketing activities, thereby reducing implementation costs and time.

This goal is consistent with the DOE Secretarial Policy Statement on

NEPA (June 1994), which encourages actions to streamline the NEPA

process without sacrificing quality and to make the process more useful

to decision makers and the public. Full compliance with the letter and

spirit of NEPA is an essential priority for DOE. In addition, DOE's

experience in applying the DOE NEPA regulations since they were issued

in 1992 suggested the need for DOE to make changes to its NEPA

regulations.

III. Comments Received and DOE's Responses

DOE has considered and evaluated the comments on the proposed

rulemaking concerning power marketing activities received during the

public comment periods. Minor revisions suggested in these comments

have been incorporated into the final amendments to the rule. The

following discussion describes the comments received, provides DOE's

responses to the comments, and describes any resulting changes to the

proposed amendments. Section references and headings below are

identical to those in the proposed amendments.

A. Procedural Comments

One commenter requested that no action be taken to adopt any of the

proposed power marketing administration amendments until additional

information could be obtained from relevant state and Federal agencies

(e.g., state environmental review procedures for comparable non-federal

utility projects). In response, the final rule published on July 9,

1996 (61 FR 36222) excluded the proposed amendments pertaining

primarily to power marketing activities, and the comment period for the

proposed amendments pertaining to power marketing activities was

reopened from July 9, 1996 through August 8, 1996 (61 FR 35990, July 9,

1996). As explained below, DOE received one set of new comments during

this reopened comment period.

B. Comments on Appendices of Subpart D--Typical Classes of Actions

Two commenters objected to several categorical exclusions (B4.1,

B4.10-B4.13) on the grounds of cumulative effects, connected actions,

or extraordinary circumstances. Another commenter objected to a number

of categorical exclusions (B4.1, B4.2, B4.6, B4.10-B4.13) on the

grounds that they appear to expand substantially the universe of power

marketing administration actions that would no longer require an

environmental impact statement or perhaps an environmental assessment.

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Under the current regulations, before a proposed action may be

categorically excluded, DOE must determine in accordance with

Sec. 1021.410(b) that: (1) The proposed action fits within a class of

actions listed in appendix A or B to subpart D; (2) there are no

extraordinary circumstances related to the proposal that may affect the

significance of the environmental effects of the action; and (3) there

are no connected or related actions with cumulatively significant

impacts and, where appropriate, the proposed action is a permissible

interim action. In addition, to fit within a class of actions that is

normally categorically excluded under appendix B, a proposed action

must include certain integral elements (appendix B, paragraphs B(1)

through (4)). These conditions are intended to ensure that an excluded

action will not threaten a violation of applicable requirements,

require siting and construction of waste management facilities, disturb

hazardous substances such that there would be uncontrolled or

unpermitted releases, or adversely affect environmentally sensitive

resources. DOE believes that the general restrictions on the

application of categorical exclusions will provide adequate safeguards

to ensure that they are not applied to activities that could result in

significant effects. For actions that do not satisfy these conditions,

an environmental impact statement or an environmental assessment would

be prepared. DOE believes that it will serve environmental concerns and

the public's interest best by focusing its efforts on the careful

analysis of those actions that actually have the potential for

significant impact.

Finally, after considering all public comments on the proposed

amendments, DOE has determined that the final amendments to appendix B

constitute classes of actions that do not individually or cumulatively

have a significant effect on the human environment, and are covered by

a finding to that effect in Section 1021.410(a). In making this

finding, DOE has considered, among other things, its own experience

with these classes of actions, other agencies' experience as reflected

in their NEPA procedures, DOE's technical judgment, and the comments

received on the proposed amendments.

Classes of Actions Listed in Appendix B

Proposed Clarification B4.1--Contracts/marketing plans/

policies for excess electric power.

One commenter requested explanation of the rationale for the

proposed clarification of B4.1. The existing categorical exclusion is

for the establishment and implementation of contracts, plans, and

policies, the terms of which do not exceed five years, would not cause

changes in normal operating limits, and any related transmission would

occur over existing transmission systems. The existing five-year term

limit was proposed for elimination from this categorical exclusion

because experience has demonstrated that the mere length of a contract,

policy, or plan does not have the potential for environmental impacts.

Rather, the development or integration of new generating resources,

changes in the operation of existing generation resources, or

construction of transmission facilities, are the types of activities

that have shown the potential for environmental impacts. By not

including these changes in generation, operation or transmission, the

categorical exclusion ensures that only those actions that have no

potential for environmental impact would be categorically excluded.

Those contracts, plans, and policies that do not fit within this

categorical exclusion would require further NEPA analysis to ascertain

the associated environmental impacts.

Proposed Modification B4.2--Export of electric energy.

DOE proposed to modify the existing categorical exclusion for the

export of electric energy over existing transmission systems to also

apply to exports over transmission system changes that are themselves

categorically excluded (e.g., short powerline segments, substations).

One commenter stated that DOE should consider the social and economic

impacts on U.S. utility ratepayers caused by selling power to foreign

countries. DOE believes that the potential for physical impacts of such

a proposed action are very slight and notes that socioeconomic impacts

alone do not require the preparation of an environmental impact

statement (40 CFR 1508.14).

Proposed Modification B4.3--Electric power marketing rate

changes.

The proposed modification would eliminate the existing restriction

that, in order to be categorically excluded, a proposed rate change

must not exceed the rate of inflation, a condition that DOE has found

is not relevant to the action's potential for environmental impacts.

Any environmental impacts resulting from rate changes would be caused

only if the rate change involved associated changes in the operation of

generation resources. Therefore, this categorical exclusion would only

apply to those rate changes that would not affect the operation of

generation projects. The term ``changes in rates,'' as in the proposed

rule, was changed to ``rate changes'' to be consistent with C3.

One commenter expressed concern regarding the economic impact to

domestic utility customers of allowing electric power marketing rate

changes to be raised more than the rate of inflation, and of the

unrestrained sale of electricity to the highest bidder, whether foreign

or domestic. Federal Power Marketing Administrations market their power

resources at cost. Existing law prevents Federal electric power from

being sold at a profit, and further prohibits customers from reselling

Federal power for profit. Federal Power Marketing Administrations are

not allowed to sell power to the highest bidder, but rather must

recover all costs associated with the power. DOE believes that there is

no potential for environmental impacts from rate changes based on

revenue requirements where, as the categorical exclusion requires, the

operations of generation projects would remain within normal operating

limits.

Proposed Modification B4.10--Deactivation, dismantling and

removal of electric powerlines and substations.

DOE proposed to add deactivation to the categorical exclusion for

dismantling and removal of transmission lines and to add substations,

switching stations and other transmission facilities. One commenter

suggested that this categorical exclusion applies to deactivation of

power plants and that such actions should include public participation.

Deactivation under this categorical exclusion, however, would not apply

to power plants, but only to transmission facilities.

Proposed Modification B4.11--Construction or modification

of electric power substations.

Proposed Modification B4.12--Construction of electric

powerlines (generally less than 10 miles in length), not integrating

major new sources.

Proposed Modification B4.13--Reconstruction and minor

relocation of existing electric powerlines (generally less than 20

miles in length).

The proposed amendments include: (1) expanding categorically

excluded modification activities to substations of any voltage,

provided that the modification does not increase the existing voltage

(B4.11); (2) expanding the construction of tap lines to include all

electric powerlines not integrating major new sources (B4.12); and (3)

increasing the length of powerlines that can be reconstructed from 10

miles to 20 miles (B4.13).

One commenter noted correctly that the word ``generally'' as

applied to the

[[Page 64606]]

length of electric powerlines in proposed modifications to B4.11 could

allow the class of actions to be applied to proposed actions that would

otherwise not even approximately fit the definition. Second, commenters

questioned the justification for the specific quantity values chosen

and even whether any specific value could be justified.

DOE's intention with respect to both issues is better expressed by

the concept of ``approximately'' rather than ``generally,'' and the

class of actions in the final rule has been changed accordingly. By

using ``approximately,'' DOE is indicating that the numerical values

used in defining the class of actions are to be interpreted flexibly

rather than with unwarranted precision. DOE has also changed the

phrases in B4.11 and B4.12 to be consistent in wording. In addition,

for consistency DOE has changed the phrase ``major new resource'' in

B4.11 and ``major new sources of generation into a main transmission

system'' in B4.12, as in the proposed rule, to read ``major new

generation resources into a main transmission system'' in both B4.11

and B4.12.

Two commenters stated that the proposed modifications to these

three categorical exclusions would exempt a wide array of power

marketing administration electric power transmission line construction,

reconstruction and/or relocation from the requirements of an

environmental assessment or environmental impact statement, possibly

resulting in a lower standard of environmental review than is imposed

by relevant state agencies, on comparable projects undertaken by non-

federal utilities, or those imposed by other Federal agencies on non-

federal entities, or even those adopted by other Federal agencies for

their own actions. In response to this concern, in conjunction with the

second reopened comment period, DOE asked the appropriate state

agencies for their views on the proposed modifications to the classes

of actions primarily related to power marketing, and on how the

environmental review that would result for Federal power marketing

administration projects would compare with the review those state

agencies require for comparable non-federal utility projects.

Similarly, the Department solicited the views of other Federal agencies

that may engage in comparable activities or issue permits to non-

federal entities conducting comparable activities.

Of the states and Federal agencies that DOE contacted, one

commenter responded to this initiative. The commenter was concerned

about exempting facilities of this magnitude from meaningful

environmental review given the level of controversy and the potential

environmental consequences typically associated with the construction

of new transmission lines. In response to this general concern

regarding environmental review, DOE notes that the exemption could only

be applied if there were no extraordinary circumstances, connected

actions with cumulatively significant impacts, or violation of the

integral elements, as discussed above under Section III.B. For example,

any proposed action with potential impacts on a sensitive resource, or

involving scientific controversy about the environmental effects of the

proposal would constitute a violation of the integral elements or

extraordinary circumstances and thus would not be categorically

excluded. Similarly, if the electric powerline or substation was ``a

connected action'' with regard to a facility not covered by a

categorical exclusion (such as a power plant), the appropriate level of

NEPA review would be conducted, i.e., environmental assessment or

environmental impact statement. Therefore, the expansion of these

categorical exclusions will not reduce the meaningful environmental

review of Federal proposals with significant controversy or potential

environmental consequences, as compared to non-federal proposals.

This commenter previously provided a similar comment regarding

specific concerns about all three proposed modifications stemming, in

part, from the nature of the transmission grid owned and operated by

the Bonneville Power Administration (BPA) in the Pacific Northwest. The

commenter noted that, unlike other Federal Power Marketing

Administrations, BPA is the predominant owner and operator of major

transmission lines in the Pacific Northwest. Because of the ubiquity of

BPA's lines in this area, the commenter stated that the proposed

categorical exclusions could permit BPA to build substantial facilities

in the Northwest, including facilities in major metropolitan areas,

without being subject to meaningful environmental scrutiny. For the

reasons stated immediately above, DOE does not believe that the

circumstance described in the comment could occur.

The commenter suggested that these proposed amendments to the 1992

DOE NEPA regulations would supplant a Memorandum of Understanding (MOU)

between the commenter and BPA. The NEPA regulations have no effect on

the MOU; it remains in effect as agreed upon by the two parties. The

commenter also incorrectly implied that the proposed categorical

exclusions are new. However, these categorical exclusions have existed

since 1992. Under B4.11, the proposal would allow the modification of

substations at any voltage, as opposed to those at a power delivery of

230 kV, as long as there is no voltage increase. Under B4.12, the

proposal would allow the construction of any electric powerline, not

just ``tap'' lines. Under B4.13, the length of existing electric

powerlines that could be reconstructed would be increased from 10 to 20

miles. DOE notes, however, that this reconstruction and/or minor

relocation under B4.13 is only for existing electric powerlines and

only to enhance environmental and land use values.

Classes of Actions Listed in Appendix C

Modification C3--Electric Power Marketing Rate Changes,

not Within Normal Operating Limits.

As discussed above in reference to exclusion B4.3, DOE has

determined that inflation is not relevant to an action's potential for

environmental impact. Consistent with that determination, and as a

necessary conforming change, DOE has modified paragraph C3 of Appendix

C. This modification bases the application of the class of actions on

the effect on the operation of generation projects, rather than on the

rate of inflation.

Proposed Modification C4--Upgrading and constructing

electric power lines.

There were no comments on the proposed modification to this class

of actions; however, to be consistent with language in categorical

exclusions B4.11, B4.12, and B4.13, DOE is changing ``powerline'' to

``powerlines'' and ``upgrading (reconstructing)'' to ``reconstructing

(upgrading and rebuilding).''

Proposed Modification C7--Allocation of electric power, no

major new generation resource/major changes in operation of generation

resources/major new loads.

DOE proposed amending this class of actions to be consistent with

B4.1 and D7 and to focus on market responses to the action rather than

the duration of the contract. One commenter expressed concern that DOE

was privatizing its energy resources. This class of actions does not

address privatization or sale of facilities, but rather the marketing

or allocation of power by the power marketing administrations and the

associated changes in generation resources, operating limits, or new

loads.

[[Page 64607]]

Classes of Actions Listed in Appendix D

Proposed Modification D7--Allocation of electric power,

major new generation resources/major changes in operation of power

generation resources/major loads.

DOE proposed amending this class of actions to be consistent with

B4.1 and C7 to focus on market responses to the change in allocation or

operation rather than duration of the underlying contract. One

commenter questioned the use of the word ``major,'' referencing ``Major

Projects'' as used in the previous C1 class of action which was removed

by the recent final rule (61 FR 36222). The word ``major'' in this

class of actions is used as an adjective with its normal usage, in this

case modifying the terms generation resources, changes, and loads.

IV. Procedural Review Requirements

A. Environmental Review Under the National Environmental Policy Act

These amendments to the DOE NEPA rule establish, modify, and

clarify procedures for considering the environmental effects of DOE

actions within the Department's decision making process. Implementation

of this rule will not affect the substantive requirements imposed on

DOE or on applicants for DOE licenses, permits, and financial

assistance, and this rule will not result in environmental impacts.

Therefore, DOE has determined that this rule is covered by the

categorical exclusion found at paragraph A6 of appendix A to subpart D,

10 CFR Part 1021, which applies to procedural rulemaking. Accordingly,

neither an environmental impact statement nor an environmental

assessment is required.

B. Review Under the Regulatory Flexibility Act

The Regulatory Flexibility Act (5 USC 601 et seq.) requires that an

agency prepare an initial regulatory flexibility analysis to be

published at the time the proposed rule is published. This requirement

does not apply if the agency ``certifies that the rule will not, if

promulgated, have a significant economic impact on a substantial number

of small entities'' (5 USC 603). The rule modifies existing policies

and procedural requirements for DOE compliance with NEPA. The rule

makes no substantive changes to requirements imposed on applicants for

DOE licenses, permits, financial assistance, and similar actions as

related to NEPA compliance. Therefore, DOE certifies that the rule will

not have a ``significant economic impact on a substantial number of

small entities.''

C. Review Under the Paperwork Reduction Act

No new information collection or recordkeeping requirements are

imposed by these amendments. Accordingly, no Office of Management and

Budget clearance is required under the Paperwork Reduction Act of 1980

(44 U.S.C. 3501 et seq.).

D. Review Under Executive Order 12612

Executive Order 12612, ``Federalism,'' 52 FR 41685 (October 30,

1987) requires that regulations be reviewed for Federalism effects on

the institutional interest of states and local governments, and, if the

effects are sufficiently substantial, preparation of a Federalism

assessment is required to assist senior policymakers. These amendments

will affect Federal NEPA compliance procedures, which are not subject

to state regulation. The amendments will not have any substantial

direct effects on states and local governments within the meaning of

the Executive Order. Therefore, no Federalism assessment is required.

E. Review Under Executive Order 12988

With respect to the review of existing regulations and the

promulgation of new regulations, Section 3(a) of Executive Order 12988,

``Civil Justice Reform'' 61 FR 4729 (February 7, 1996), imposes on

Executive agencies the general duty to adhere to the following

requirements: (1) Eliminate drafting errors and ambiguity, (2) write

regulations to minimize litigation, and (3) provide a clear legal

standard for affected conduct rather than a general standard and

promote simplification and burden reduction. With regard to the review

required by Section 3(a), Section 3(b) of Executive Order 12988

specifically requires that Executive agencies make every reasonable

effort to ensure that the regulation: (1) clearly specifies the

preemptive effect, if any; (2) clearly specifies any effect on existing

Federal law or regulation; (3) provides a clear legal standard for

affected conduct while promoting simplification and burden reduction;

(4) specifies the retroactive effect, if any; (5) adequately defines

key terms; and (6) addresses other important issues affecting clarity

and general draftsmanship under any guidelines issued by the Attorney

General. Section 3(c) of Executive Order 12988 requires Executive

agencies to review regulations in light of applicable standards in

Section 3(a) and Section 3(b) to determine whether they are met or it

is unreasonable to meet one or more of them. DOE has completed the

required review and determined that, to the extent permitted by law,

the final rule meets the relevant standards of Executive Order 12988.

F. Review Under Executive Order 12866

The final amendments were reviewed in accordance with Executive

Order 12866, ``Regulatory Planning and Review,'' 58 FR 51735 (October

4, 1993), which requires a Federal agency to prepare a regulatory

assessment, including the potential costs and benefits, of any

``significant regulatory action.'' The order defines ``significant

regulatory action'' as any regulatory action that may have an annual

effect on the economy of $100 million or more and may adversely affect

the economy, productivity, competition, jobs, the environment, public

health or safety, or state, local, or tribal governments in a material

way; create a serious inconsistency or otherwise interfere with an

action taken or planned by another agency; materially alter the

budgetary impact of entitlements, grants, user fees, or loan programs;

or raise novel legal or policy issues arising out of legal mandates

(section 3(f)).

These amendments will modify already existing policies and

procedures for compliance with NEPA. The amendments contain no

substantive changes in the requirements imposed on applicants for a DOE

license, financial assistance, permit, or similar actions. Therefore,

DOE has determined that the incremental effect of these amendments to

the DOE NEPA regulations will not have the magnitude of effects on the

economy, or any other adverse effects, to bring this proposal within

the definition of a ``significant regulatory action.''

G. Review Under the Unfunded Mandates Reform Act

Under Section 205 of the Unfunded Mandates Reform Act of 1995 (2

USC 1533), Federal agencies are required to prepare a budgetary impact

statement to accompany any proposed or final rule that includes a

Federal mandate that may result in the expenditure by state, local and

tribal governments, in the aggregate, or by the private sector, of $100

million or more in any one year. Because the DOE NEPA regulations

affect only DOE and do not create obligations on the part of any other

person or government agency, neither state, local or tribal governments

nor the private sector will be affected by amendments to these

regulations. Therefore, DOE has determined that further review under

the Unfunded Mandates Reform Act is not required.

[[Page 64608]]

H. Congressional Notification

The final regulations published today are subject to the

Congressional notification requirements of Small Business Regulatory

Enforcement Fairness Act of 1996 (Act) (5 USC 801). The Office of

Management and Budget has determined that the final regulations do not

constitute a ``major rule'' under the Act (5 USC 804). DOE will report

to Congress on the promulgation of the final regulations prior to the

effective date set forth at the beginning of this notice.

List of Subjects in 10 CFR Part 1021

Environmental impact statements.

Issued in Washington, D.C., November 27, 1996.

Peter N. Brush,

Principal Deputy Assistant Secretary, Environment, Safety and Health.

For reasons set out in the preamble, 10 CFR Part 1021 is amended as

follows:

PART 1021--NATIONAL ENVIRONMENTAL POLICY ACT IMPLEMENTING

PROCEDURES

1. The authority citation for Part 1021 continues to read as

follows:

Authority: 42 U.S.C. 7254; 42 U.S.C. 4321 et seq.

2. Appendix B to Subpart D, is amended to revise the Table of

Contents entries for B4.1, B4.2, B4.3, B4.6, B4.10, B4.11, B4.12, and

B4.13 to read as follows:

Appendix B to Subpart D to Part 1021--Categorical Exclusions Applicable

to Specific Agency Actions

Table of Contents

* * * * *

B4.1 Contracts/marketing plans/policies for excess electric

power.

B4.2 Export of electric energy.

B4.3 Electric power marketing rate changes, within normal

operating limits.

* * * * *

B4.6 Additions/modifications to electric power transmission

facilities within previously developed area.

* * * * *

B4.10 Deactivation, dismantling and removal of electric

powerlines and substations.

B4.11 Construction or modification of electric power

substations.

B4.12 Construction of electric powerlines approximately 10

miles in length or less, not integrating major new sources.

B4.13 Reconstruction and minor relocation of existing electric

powerlines approximately 20 miles in length or less.

3. Appendix B to Subpart D, section B4, is amended to revise

paragraphs B4.1, B4.2, B4.3, B4.6, B4.10, B4.11, B4.12 and B4.13, to

read as follows:

B4. Categorical Exclusions Applicable to Power Marketing

Administrations and to all of DOE with Regard to Power Resources.

B4.1 Establishment and implementation of contracts, marketing

plans, policies, allocation plans, or acquisition of excess electric

power that does not involve: (1) the integration of a new generation

resource, (2) physical changes in the transmission system beyond the

previously developed facility area, unless the changes are

themselves categorically excluded, or (3) changes in the normal

operating limits of generation resources.

B4.2 Export of electric energy as provided by Section 202(e) of

the Federal Power Act over existing transmission systems or using

transmission system changes that are themselves categorically

excluded.

B4.3 Rate changes for electric power, power transmission, and

other products or services provided by a Power Marketing

Administration that are based on a change in revenue requirements if

the operations of generation projects would remain within normal

operating limits.

* * * * *

B4.6 Additions or modifications to electric power transmission

facilities that would not affect the environment beyond the

previously developed facility area including, but not limited to,

switchyard rock grounding upgrades, secondary containment projects,

paving projects, seismic upgrading, tower modifications, changing

insulators, and replacement of poles, circuit breakers, conductors,

transformers, and crossarms.

* * * * *

B4.10 Deactivation, dismantling, and removal of electric

powerlines, substations, switching stations, and other transmission

facilities, and right-of-way abandonment.

B4.11 Construction of electric power substations (including

switching stations and support facilities) with power delivery at

230 kV or below, or modification (other than voltage increases) of

existing substations and support facilities, that could involve the

construction of electric powerlines approximately 10 miles in length

or less, or relocation of existing electric powerlines approximately

20 miles in length or less, but not the integration of major new

generation resources into a main transmission system.

B4.12 Construction of electric powerlines approximately 10

miles in length or less that are not for the integration of major

new generation resources into a main transmission system.

B4.13 Reconstruction (upgrading or rebuilding) and/or minor

relocation of existing electric powerlines approximately 20 miles in

length or less to enhance environmental and land use values. Such

actions include relocations to avoid right-of-way encroachments,

resolve conflict with property development, accommodate road/highway

construction, allow for the construction of facilities such as

canals and pipelines, or reduce existing impacts to environmentally

sensitive areas.

4. Appendix C to Subpart D is amended to revise the Table of

Contents entries for C3, C4, and C7 to read as follows:

Appendix C to Subpart D to Part 1021--Classes of Actions That Normally

Require EAs But Not Necessarily EISs

Table of Contents

* * * * *

C3 Electric power marketing rate changes, not within normal

operating limits.

C4 Reconstructing and constructing electric powerlines.

* * * * *

C7 Allocation of electric power, no major new generation

resource/major changes in operation of generation resources/major

new loads.

* * * * *

5. Appendix C to Subpart D to Part 1021 is amended to revise

paragraphs C3, C4, and C7 to read as follows:

* * * * *

C3 Rate changes for electric power, power transmission, and

other products or services provided by Power Marketing

Administrations that are based on changes in revenue requirements if

the operations of generation projects would not remain within normal

operating limits.

C4 Reconstructing (upgrading or rebuilding) existing electric

powerlines more than approximately 20 miles in length or

constructing new electric powerlines more than approximately 10

miles in length.

* * * * *

C7 Establishment and implementation of contracts, policies,

marketing plans, or allocation plans for the allocation of electric

power that do not involve (1) the addition of new generation

resources greater than 50 average megawatts, (2) major changes in

the operating limits of generation resources greater than 50 average

megawatts, or (3) service to discrete new loads of 10 average

megawatts or more over a 12 month period. This applies to power

marketing operations and to siting, construction, and operation of

power generating facilities at DOE sites.

* * * * *

6. Appendix D to Subpart D is amended to revise the Table of

Contents entry for D7 to read as follows:

Appendix D to Subpart D to Part 1021--Classes of Actions That Normally

Require EISs

Table of Contents

* * * * *

D7 Allocation of electric power, major new generation

resources/major changes in operation of generation resources/major

loads.

* * * * *

7. Appendix D to Subpart D to Part 1021 is amended to revise

paragraph D7 to read as follows:

D7 Establishment and implementation of contracts, policies,

marketing plans or allocation plans for the allocation of electric

power that involve (1) the addition of new generation resources

greater than 50 average megawatts, (2) major changes in the

operating limits of generation resources greater than 50 average

megawatts, or (3) service to discrete

[[Page 64609]]

new loads of 10 average megawatts or more over a 12 month period.

This applies to power marketing operations and to siting

construction, and operation of power generating facilities at DOE

sites.

* * * * *

[FR Doc. 96-31064 Filed 12-5-96; 8:45 am]

BILLING CODE 6450-01-P