Collections From Central Valley Project Power Contractors to Carry Out the Restoration, Improvement, and Acquisition of Environmental Habitat Provisions of the Central Valley Project Improvement Act of 1992

DEPARTMENT OF ENERGY

Western Area Power Administration

Collections From Central Valley Project Power Contractors to

Carry Out the Restoration, Improvement, and Acquisition of

Environmental Habitat Provisions of the Central Valley Project

Improvement Act of 1992

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of final procedures.

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

SUMMARY: The Western Area Power Administration (Western) is, by

publication of this notice, announcing its final procedures for the

assessment and collection of restoration fund payments from the Central

Valley Project (CVP) power contractors. These final procedures

supersede the procedures published in the Federal Register on April 8,

1994. Western published the proposed procedures in the Federal Register

on April 13, 1998. Included in this notice is a discussion of the

comments on the proposed procedures.

DATES: The final procedures will become effective September 3, 1998 and

will remain in effect until superseded.

ADDRESSES: Information regarding the final procedures, including

comments, letters, and other supporting documents made or kept by

Western to develop these final procedures, is available for public

inspection and copying at Western's Sierra Nevada Customer Service

Region, 114 Parkshore Drive, Folsom, California.

FOR FURTHER INFORMATION CONTACT: Ms. Zola M. Jackson, Power Marketing

Manager, Sierra Nevada Customer Service Region, Western Area Power

[[Page 41562]]

Administration, 114 Parkshore Drive, Folsom, California, 95630-4710,

(916) 353-4421.

SUPPLEMENTARY INFORMATION: Section 3407 of the CVP Improvement Act of

1992 (Act) (Pub. L. 102-575, 106 Stat. 4706, 4726) establishes in the

Treasury of the United States the CVP Restoration Fund (Restoration

Fund) to carry out the habitat restoration, improvement, and

acquisition provisions of the Act. The Act further requires the

Secretary of the Interior to assess and collect annual mitigation and

restoration payments from CVP water and power contractors (Restoration

Payments). The Secretary of the Interior, through the Bureau of

Reclamation (Reclamation), is responsible for determining and

collecting the CVP water and power contractors' shares of the annual

total restoration payment obligation.

Western is responsible for the marketing and transmission of CVP

power. Western has agreed to administer the assessment and collection

of the Restoration Payments from CVP power contractors. Western has

executed a letter of agreement with Reclamation to establish procedures

for depositing the collections from CVP power contractors into the

Restoration Fund.

Western will assess the annual power restoration payment

obligation, determined by Reclamation, to CVP power contractors.

Western will issue a monthly Restoration Fund Bill to each CVP power

contractor. This bill will reflect the amount the CVP power contractor

must pay into the Restoration Fund. The CVP power contractor pays that

amount to Western, who will transfer all amounts collected from CVP

power contractors to Reclamation for deposit into the Restoration Fund.

Western published final procedures in the Federal Register on April

8, 1994 (59 FR 16801). Those procedures provided that Western review

the procedures if an apparent inequity in the assessment method is

discovered. An apparent inequity was discovered and Western initiated

the public process to replace the procedures.

Public Notice and Comment

Summarized below is the process Western used to ensure involvement

of interested parties in the development of the final procedures for

the assessment and collection of Restoration Fund payments from CVP

power contractors.

1. Western published a notice in the Federal Register (63 FR 18005)

on April 13, 1998. This notice officially announced the proposed

procedures, initiated the public consultation and comment period, and

announced the public information and comment forums.

2. Western sent letters on April 16, 1998, to all CVP preference

customers and interested parties transmitting the Federal Register

notice dated April 13, 1998, and announcing the times and locations for

the two public forums.

3. Western held the public information and comment forums on April

29, 1998, at its Sierra Nevada Customer Service Region in Folsom,

California. At the public information forum, Western explained the

proposed procedures, detailed a proposed option, and answered

questions. Western held the public comment forum after the public

information forum, to give the public the opportunity to comment for

the record. Two representatives made oral comments.

4. Western mailed letters to all CVP preference customers and

interested parties on May 1, 1998, informing them of the information

provided at the April 29, 1998, public information forum. The

information contained a description of the option that Western was

offering for public comment.

5. Western received four comment letters during the public

consultation and comment period. Western reviewed and considered all

comments received by the end of the public consultation and comment

period, May 13, 1998, in developing the final procedures.

Western received written comments from the following organizations:

Ecosystem Management International, Inc. (Arizona)

Trinity County Public Utilities District (California)

Sacramento Municipal Utility District (California)

City of Redding (California)

Representatives of the following organizations made oral comments:

Sacramento Municipal Utility District (California)

U.S. Bureau of Reclamation, Mid-Pacific Region (California)

Summarized below are the paraphrased comments Western received and

Western's responses to those comments. Western used specific comments

for clarification where necessary.

A. Alternative Method for Assessing the Annual Power Restoration

Payment Obligation (PRPO)

Comment: The alternative method should be the primary method for

assessing the annual PRPO and the other proposed method in the Federal

Register (63 FR 18005) notice of April 13, 1998, should be the

alternative method.

Response: The commentator did not provide sufficient justification

for changing Western's proposal. Furthermore, Western presented the

alternative method, as proposed in the Federal Register notice of April

13, 1998, to various CVP power contractors at customer meetings. The

resulting consensus from these meetings was that there is not enough

general support for making the alternative method the primary method.

Western will continue to offer the alternative method as an option for

assessing the annual PRPO.

Comment: Including an alternative method for assessing the annual

PRPO in the procedures is encouraging. The alternative method should

give CVP contractors a method to average the payments over the entire

year without significant changes caused by large midyear adjustments.

Response: Western agrees with the comment to offer the alternative

method as an option for assessing the annual PRPO. Under the

alternative method, Western determines the CVP power contractor's

Restoration Fund payment amount monthly by prorating the CVP power

contractor's share of the annual PRPO based on the CVP power

contractor's forecasted or prior year's power purchases. CVP power

contractors who prefer the alternative method must notify Western in

writing before August 31, 1998.

B. Option That Changes the Assessment Year Period and the Assessment

Month

Comment: The information presented on the option at the public

information forum and as provided in Western's letter dated May 1,

1998, lacked the necessary supporting historical load data to support

the advantage of moving the month when assessments are made and then

billed. The commentator is not opposed to moving the month when

assessments are made and then billed, if Western can provide supporting

details showing that this better balances the capacity and energy usage

on a percentage basis for each customer group for the first 6 months of

the assessment year.

Response: Western's May 1, 1998, letter offered to provide

additional information on the option if requested. The supporting data

for this option is part of the record and is available for review. The

supporting data shows that this method better balances the capacity and

energy usage.

C. Assessing the Annual PRPO Based on a Percentage Split of 50 Percent

to Capacity and 50 Percent to Energy

Comment: Western should present an analysis of using a 40/60, a 60/

40, and

[[Page 41563]]

a 50/50 percent split of the PRPO, as well as any other percentage

combinations that they see as necessary for evaluating the sharing of

the PRPO to capacity and energy. The commentator believes an analysis

of how the PRPO is shared by different customer groups for different

combinations of capacity and energy, over a projected 5-year period (or

based on historical capacity and energy sales data for the last 5

years), would help justify Western's decision to continue to use a 50/

50 percent split between capacity and energy sales.

Response: Western reviewed the procedure in assessing the annual

PRPO based on a percentage split of 50 percent to capacity and 50

percent to energy. Western believes that continuing to assess the

annual PRPO based on this 50/50 percentage split would reflect the

actual percentage split used. Western performed an analysis with CVP

power contractors' historical capacity and energy amounts, delivered or

scheduled with Western, for Fiscal Year (FY) 1994 (when assessment and

collection of restoration fund payments began) through FY 1996

(complete data for FY 1997 was unavailable at the time). The results of

this analysis showed that the historical average capacity and energy

percentage splits were close to a 50/50 basis. Western presented these

results to various CVP power contractors at customer meetings. The

consensus from these meetings recommended that Western continue to use

the procedure in assessing 50 percent of the annual PRPO to capacity

and 50 percent to energy. Furthermore, the 50/50 percent split is

consistent with the recent CVP rate adjustment proceeding, in which

Western's cost of the CVP power generation was allocated 50 percent to

capacity and 50 percent to energy. The analysis is part of the record

and is available for review.

D. Adjustment to the Annual PRPO

Comment: Some advantages may exist in lowering the proposed 25

percent deviation figure used to determine if adjustments are needed to

the capacity and energy multipliers. A benchmark in the range of 10 to

15 percent is suggested. The lower figure would reduce the risk of how

carryover funds will be treated for the over collected situations and

would reduce the burden for makeup payments in a following year for the

under collected situations.

Response: Western evaluated the issue and agrees with the comment.

As a result, Western is including a 15 percent greater or less

benchmark figure to determine if adjustments are needed to the capacity

and energy multipliers, in the final procedures.

E. Other Comments

Comment: An inequity will continue to exist if the procedures are

adopted as published in the Federal Register notice of April 13, 1998.

The legislative authority to construct the Trinity River Division (TRD)

included provisions to mitigate the resulting local economic and

environmental impacts. However, those provisions have not come close to

compensating the people of Trinity County for the TRD's impacts. Yet

the TRD has provided tremendous benefits to the Central Valley,

including reducing the environmental losses to the Central Valley's

ecosystem. Contributions to the Restoration Fund mean that the people

of Trinity County pay twice to restore the Central Valley's ecosystem.

This is clearly an inequity that Western could end by exempting Trinity

County from further Restoration Fund charges. The CVP Improvement Act

of 1992 provides Western significant discretion on how to allocate the

cost of the Restoration Fund among its contractors. The commentator

urges Western to use this discretion to limit Restoration Fund payments

to those who have benefited from the ecological losses.

Response: Western analyzed the CVP Improvement Act of 1992

regarding the assessment of the Restoration Fund's cost, and similar

costs under other related legislation affecting CVP power contractors.

Western has discretion in how the Restoration Fund's cost that is

assessed to power is allocated. Western also analyzed Trinity County's

contribution toward the restoration programs compared to contributions

made by other CVP power contractors. Western concluded from this

analysis that Trinity County may, at times, be paying a greater share

of the costs for these restoration programs. Based on these findings,

it is appropriate to adjust the amounts of Restoration Fund payments

assessed to Trinity County by prospectively applying a credit to the

monthly Restoration Fund bills for Trinity County. The amount and

timing of the credits will be determined by Western and set forth in an

agreement with Trinity County. The credit will not be greater than

Trinity County's share of the PRPO.

Comment: How much revenue has been transferred to the Bureau of

Reclamation under the aegis of the CVP Improvement Act since 1993? What

rate was charged to the power contractors for the actual capacity and

energy for 1993 through 1997? Has the addition of the Restoration Fund

caused the repayment period for the CVP to be extended? What percentage

of the total revenues does the Restoration Fund represent? Is it 1

percent of the total revenue or larger?

Response: Western provided the data requested by the commentator.

The data is part of the record and is available for review.

Comment: The commentator requested that Western clarify the

statement found in the Federal Register notice of April 13, 1998, that

any balances remaining on the CVP power contractor's Restoration Fund

bill(s) must be paid in full by the thirtieth (30th) of September for

each assessment year. Western should state that September 30 is the

last day for Western to transfer all Restoration Fund payments received

from CVP power contractors to Reclamation for deposit into the

Restoration Fund. The clarification is requested to ensure that the

reference date of September 30 is not confused with the actual due date

for Restoration Fund Bills.

Response: Western agrees with the comment and has clarified this

statement in the final procedures.

Changes to Proposed Procedures

Western considered all comments received during the 30-day public

consultation and comment period and has made changes to the proposed

procedures. While the decisions outlined in the final procedures may

not reflect a consensus on every issue, Western believes the final

procedures to be an equitable distribution of the total restoration

payment obligation among the CVP power contractors. The final

procedures will provide the mechanism required to assess and collect an

amount that is reasonably expected to equal the amount allocated to

power by Reclamation.

Under the proposed procedures, the assessment month was defined as

the service month 1 month prior to the billing month. The assessment

year was defined as the period that uses the service months from August

1 through July 31 for which CVP power contractors will be billed for

Restoration Payments. These definitions have been changed. In the final

procedures, the assessment month is defined as the service month which

is 3 months prior to the billing month, and the assessment year is

defined as the period that uses the service months from June 1 through

May 31 for which CVP power contractors will be billed Restoration

Payments.

The proposed procedures provided for a midyear adjustment period.

If the actual payment amounts are 25 percent

[[Page 41564]]

greater or less than projected, Western would adjust the capacity and

energy multipliers for the remaining months of the subject assessment

year. The 25 percent deviation amount has been changed to 15 percent.

The proposed procedures included a reviewing process for Western to

review the procedures every 5 years, or if one of three provisions

occurs. The final procedures added another provision in which Western

will review the procedures if any significant change occurs that

affects the procedures.

Final Procedures

A. Acronyms and Definitions

As used herein, the following acronyms and definitions when used

with initial capitalization, whether singular or plural, will have the

following meanings:

Administrator: The Administrator of the Western Area Power

Administration.

Assessment Month: The service month, which is 3 months prior to the

Billing Month.

Assessment Year: The period that uses the service months from June

1 through May 31 for which CVP Power Contractors will be billed

Restoration Payments.

Billing Month: The month CVP Power Contractors will be billed for

the Restoration Payments.

Central Valley Project (CVP): A multipurpose Federal water

development project extending from the Cascade Range in northern

California to the plains along the Kern River south of the city of

Bakersfield.

CVP Improvement Act of 1992 (Act): Title 34 of Public Law 102-575,

106 Stat. 4706, et seq. A legislative act, which was enacted on October

30, 1992, and defines provisions for habitat restoration, improvement

and acquisition, and other fish and wildlife restoration activities in

the CVP area of California.

DOE: United States Department of Energy.

Fiscal Year (FY): The year which begins October 1 and ends

September 30.

Interior: United States Department of the Interior.

kW: Kilowatt, the electrical unit of capacity that equals 1,000

watts.

kWh: Kilowatt-hour, the electrical unit of energy that equals the

generation of 1,000 watts over 1 hour.

Letter of Agreement: Letter of Agreement No. 93-SAO-10156, a

written agreement between Reclamation and Western that established

procedures to deposit the Restoration Payments collected from CVP Power

Contractors into the Restoration Fund.

Load Adjustment(s): The adjustment(s) to CVP Power Contractors'

forecasted monthly capacity and energy purchases from Western as

determined by Western based on CVP Power Contractors' actual capacity

and energy amounts delivered by or scheduled with Western.

Midyear Adjustment: The adjustment to the annual Power Restoration

Payment Obligation as determined by Reclamation on or about April 1 of

the Assessment Year.

Power: Capacity and energy.

Power Contractor: An entity purchasing firm capacity and/or energy

from Western for a period in excess of 1 year.

Power Restoration Payment Obligation (PRPO): The portion of the

Total Restoration Payment Obligation calculated and assigned annually

to CVP Power Contractors by Reclamation.

Reclamation: United States Department of the Interior, Bureau of

Reclamation.

Restoration Fund: The CVP Restoration Fund, established by Section

3407 of the Act, into which revenues provided by the Act are deposited,

and from which funds are used by the Secretary to carry out the habitat

restoration, improvement and acquisition provisions of the Act.

Restoration Fund Bill(s): The instrument prepared and issued

monthly by Western as a mechanism for collecting the Restoration

Payments from CVP Power Contractors.

Restoration Payment(s): The amount(s) recorded as payable on CVP

Power Contractors' Restoration Fund Bills.

Secretary: Secretary of Energy.

Total Restoration Payment Obligation: The total amount of payments

to be collected from the CVP water and power contractors, calculated

annually by Reclamation.

Western: United States Department of Energy, Western Area Power

Administration.

B. Determination of the Power Restoration Payment Obligation (PRPO)

Reclamation is responsible for determining the annual PRPO for CVP

Power Contractors. Prior to each Assessment Year, on or about July 1,

Reclamation will, by letter, provide to Western's Regional Manager of

the Sierra Nevada Customer Service Region the amount determined to be

the PRPO and a detailed explanation of the computation of the amount

for the upcoming Assessment Year. Upon receiving this letter from

Reclamation, Western's Sierra Nevada Customer Service Region will

notify each CVP Power Contractor of the annual PRPO, the capacity and

energy multipliers for the Assessment Year, and for CVP Power

Contractors choosing the alternative method for assessing the annual

PRPO, the resulting monthly Restoration Payment amount. An adjustment

to the annual PRPO may be accomplished through the Midyear Adjustment

determined by Reclamation.

C. Assessing the PRPO

For each Assessment Year, Western will prorate the annual PRPO to

actual capacity and energy amounts delivered by or scheduled with

Western for each CVP Power Contractor. Western will assess 50 percent

of the annual PRPO to capacity and 50 percent to energy. Western will

determine a capacity multiplier and an energy multiplier using

projected Power sales based on CVP Power Contractors' forecasts and/or

prior year's total capacity and energy amounts delivered or scheduled

to all CVP Power Contractors. Prior to July 1, when Western receives

Reclamation's letter for the annual PRPO, and beginning with the FY

2000 Assessment Year, Western will request each CVP Power Contractor to

submit to Western its forecasted monthly capacity and energy purchases

from Western. The CVP Power Contractor's forecast will be for June 1

through May 31 of the subject Assessment Year. If the CVP Power

Contractor does not submit a forecast of monthly capacity and energy

purchases, Western will use the CVP Power Contractor's prior year's

(June 1 through May 31) actual capacity and energy amounts delivered or

scheduled, with adjustments Western may deem appropriate, as the

projected Power sales used for the subject Assessment Year.

The annual PRPO for the subject Assessment Year to be prorated to

capacity will be divided by Western's projected capacity sales to

determine the capacity multiplier. The same process will be repeated

using the annual PRPO prorated to energy divided by Western's projected

energy sales to determine the energy multiplier. For the FY 1999

Assessment Year, Western will determine the capacity and energy

multipliers based on actual capacity and energy amounts delivered or

scheduled (with appropriate adjustments) to all CVP Power Contractors

during the period from June 1, 1997, through May 31, 1998.

During each Assessment Month of the subject Assessment Year, these

capacity and energy multipliers will be applied to each CVP Power

Contractor's actual

[[Page 41565]]

capacity and energy amounts delivered by or scheduled with Western to

determine the CVP Power Contractor's Restoration Payment, unless the

alternative method for assessing the PRPO is used. Each CVP Power

Contractor will be billed monthly for its individual Restoration

Payment.

D. Alternative Method for Assessing the PRPO

As an alternative method to the assessment method described above

and if requested by the CVP Power Contractor, Western will determine

the CVP Power Contractor's monthly Restoration Payments as equal

monthly payment amounts, as adjusted, for the subject Assessment Year.

The monthly Restoration Payment amounts will be based on the CVP Power

Contractor's forecasted or prior year's actual capacity and energy

amounts delivered by or scheduled with Western.

Under this alternative method, for each Assessment Year, Western

will prorate the annual PRPO based on the CVP Power Contractor's

forecasted or prior year's monthly capacity and energy purchases from

Western. Western will determine the CVP Power Contractor's monthly

Restoration Payment amount by multiplying the CVP Power Contractor's

total forecasted or prior year's capacity purchases by the capacity

multiplier determined by Western, and repeating the calculation for

energy using the energy multiplier. Western will sum the resulting

capacity and energy calculations and then divide by 12 to determine the

monthly Restoration Payment amount. The CVP Power Contractor will be

billed monthly for its individual Restoration Payment.

CVP Power Contractors who prefer this alternative method for

assessing the annual PRPO must notify Western in writing prior to

August 31, 1998. Once the CVP Power Contractor elects this alternative

method, the method will remain in effect unless otherwise mutually

agreed by Western and the CVP Power Contractor.

E. Collection of CVP Power Contractors' Restoration Fund Bills

Each CVP Power Contractor will receive a Restoration Fund Bill on

or about the twenty-fifth (25th), but no later than the last day of the

month for each month designating the amount payable. The Restoration

Fund billing cycle will begin in the month of September for each

Assessment Year.

If the Restoration Fund billing is suspended for a time, Western's

Sierra Nevada Customer Service Region will notify all CVP Power

Contractors as soon as possible. Suspension of billing may occur to

avoid overpayment on the annual PRPO.

F. Payment Due Date

All CVP Power Contractors' Restoration Payments are due and payable

by CVP Power Contractors before the close of business on the twentieth

(20th) calendar day after the date of the issuance of each Restoration

Fund Bill or the next business day thereafter if said day is a

Saturday, Sunday, or Federal holiday.

G. Late Payment Charges Assessed to Delinquent Restoration Payments

Restoration Fund Bills not paid in full by the CVP Power

Contractor(s) by the due date as specified above will be assessed a

late payment charge of five hundredths percent (0.05%) of the principal

amount unpaid for each day payment is delinquent, to be added until the

amount due is paid in full. Payments received will be first applied to

the charges for the late payment assessed on the principal and then to

the payment of the principal.

H. Deposit of CVP Power Contractors' Restoration Payments into the

Restoration Fund

On or about the twenty-first (21st) calendar day of the month

following each Billing Month, Western will transfer all of the

Restoration Payments received from CVP Power Contractors, including

late payment charges, to Reclamation for deposit into the Restoration

Fund. The thirtieth (30th) of September of each subject Assessment

Year, is the last day Western is allowed to transfer Restoration

Payments, including late payment charges, to Reclamation for deposit

into the Restoration Fund.

I. Adjustment to the PRPO

There are two types of adjustments that can be made relative to

each Assessment Year's annual PRPO, a Midyear Adjustment determined by

Reclamation and Load Adjustments determined by Western. Reclamation

will notify Western, in writing, of the Midyear Adjustment. Upon

receiving Reclamation's written notification, Western will notify each

CVP Power Contractor of the Midyear Adjustment to the annual PRPO and

any adjustments to capacity and energy multipliers for the remaining

months of the subject Assessment Year.

The Midyear Adjustment is determined by Reclamation and occurs on

or about April 1 of the subject Assessment Year, following

Reclamation's annual determination of available CVP water supply for

the year. This adjustment applies to the annual PRPO and is based on

hydrological conditions and Reclamation's most recently available

forecast of CVP water deliveries to the CVP water contractors

applicable to the subject Assessment Year. Upon receiving Reclamation's

notification, Western may adjust the capacity and energy multipliers as

appropriate to coincide with the adjusted annual PRPO.

During the Midyear Adjustment period, Western will also review the

Restoration Payments from the CVP Power Contractors received thus far

for the subject Assessment Year. If the actual payment amounts are 15

percent greater or less than projected, Western may adjust the capacity

and energy multipliers for the remaining Billing Months of the subject

Assessment Year. Beginning with the Assessment Month of January and

continuing throughout the remaining Billing Months of the subject

Assessment Year, the adjusted multipliers will be applied to each CVP

Power Contractor's actual capacity and energy amounts delivered by or

scheduled with Western.

For the alternative method for assessing the PRPO, Load

Adjustment(s), determined by Western, will be evaluated quarterly

during the subject Assessment Year for each CVP Power Contractor.

Western will compare the CVP Power Contractor's forecasted capacity and

energy amounts to the actual capacity and energy amounts delivered by

or scheduled with Western during the subject Assessment Year. If, in

Western's judgment, the difference would significantly impact other CVP

Power Contractors, Western will adjust the CVP Power Contractor's

forecasted capacity and energy amounts to align with actual load data.

This adjustment will result in a change to the CVP Power Contractor's

monthly Restoration Payment amount. Western will notify the CVP Power

Contractor(s) of any Load Adjustment(s) and the resulting change(s) to

the monthly Restoration Payment amount prior to any adjustments.

To the extent practicable, for those CVP Power Contractors choosing

the alternative method for assessing the PRPO, Western will also make

Load Adjustment(s) during the last quarter of the subject Assessment

Year to ensure that the CVP Power Contractor's total annual Restoration

Payment amount is equal to the amount the CVP Power Contractor would

have paid if billing had been based on actual capacity and energy

amounts delivered by or scheduled with Western. Any balances remaining

on the CVP Power Contractor's Restoration Fund Bill(s)

[[Page 41566]]

must be paid in full by the September due date for each Assessment

Year.

All other deviations, in the amounts collected or assessed relative

to the annual PRPO, will be rolled into the following Assessment Year.

The rolled over amount will be added or subtracted from the PRPO amount

to be assessed in that year to the CVP Power Contractor(s).

J. Review Process

Western will review the procedures for the assessment and

collection of the Restoration Payments from CVP Power Contractors every

5 years, or if one of the following occurs: (1) If there is a

significant change to or suspension of the legislation; (2) if a

material issue arises; (3) if an apparent inequity in the procedures is

discovered; or (4) if any significant change occurs that affects the

procedures.

Availability of Information

All studies, comments, letters, memoranda, or other documents made

or kept by Western for developing the final procedures, are and will be

made available for inspection and copying at Western's Sierra Nevada

Customer Service Region, located at 114 Parkshore Drive, Folsom,

California.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.)

requires Federal agencies to perform a regulatory flexibility analysis

if a final rule is likely to have a significant economic impact on a

substantial number of small entities and there is a legal requirement

to issue a general notice of proposed rulemaking. Western has

determined that this action does not require a Regulatory Flexibility

analysis since it is a rulemaking of particular applicability involving

rates or services applicable to public property.

Environmental Compliance

In compliance with the National Environmental Policy Act (NEPA) of

1969 (42 U.S.C. 4321, et seq.); the Council on Environmental Quality

Regulations for implementing NEPA (40 CFR parts 1500 through 1508); and

the DOE NEPAImplementing Procedures and Guidelines (10 CFR part 1021),

Western has determined that this action is categorically excluded from

the preparation of an environmental assessment or an environmental

impact statement (10 CFR part 1021 Appendix A-5 and A-6).

Review Under Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.

3501, et seq.), Western has received approval from the Office of

Management and Budget for the collection of information in this rule,

under control number 1910-1200.

Determination Under Executive Order 12866

Western has an exemption from centralized regulatory review under

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

Office of Management and Budget is required.

Small Business Regulatory Enforcement Fairness Act

Western has determined that this rule is exempt from Congressional

notification requirements under 5 U.S.C. 801 because the action is

rulemaking of particular applicability relating to rates or services

and involves matters of procedure.

Michael S. Hacskaylo,

Administrator.

[FR Doc. 98-20726 Filed 8-3-98; 8:45 am]

BILLING CODE 6450-01-P