[Federal Register Volume 74, Number 158 (Tuesday, August 18, 2009)]
[Notices]
[Pages 41693-41695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19763]


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DEPARTMENT OF ENERGY


Variance for Certain Requirements Under the Department of 
Energy's National Environmental Policy Act Implementing Procedures for 
the Deployment of Combined Heat and Power, District Energy Systems, 
Waste Energy Recovery Systems, and Efficient Industrial Equipment 
Initiative

AGENCY: U.S. Department of Energy.

ACTION: Notice of Variance.

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SUMMARY: This notice announces the Department of Energy's (DOE's) 
decision, pursuant to 10 CFR 1021.343(c), that it is in the interest of 
public welfare to grant a variance from certain requirements of its 
National Environmental Policy Act (NEPA) Implementing Procedures (10 
CFR part 1021) in regard to the review of applications under the 
Deployment of Combined Heat and Power, District Energy Systems, Waste 
Energy Recovery Systems, and Efficient Industrial Equipment Initiative 
funded by the American Recovery and Reinvestment Act of 2009 (Recovery 
Act). The variance is limited to certain requirements identified in 10 
CFR 1021.216, Procurement, Financial Assistance, and Joint Ventures. 
The variance in no way affects the requirement to prepare an 
environmental assessment or environmental impact statement, as 
applicable, for projects selected for funding. The merit review of 
applications in response to this funding opportunity will include 
consideration of the potentially significant environmental impacts of 
the projects proposed for funding that are within the competitive 
range. By providing this variance, DOE can reduce the time needed to 
select projects for possible future funding consistent with the sense 
of urgency underpinning the Recovery Act.

DATES: Effective date: August 18, 2009.

FOR FURTHER INFORMATION CONTACT: Dr. R. Paul Detwiler, Director, Office 
of Project Facilitation and Compliance, National Energy Technology 
Laboratory, 626 Cochrans Mill Road, P.O. Box 10940, Pittsburgh, PA 
15236-0940 or <a href="/cdn-cgi/l/email-protection#0f5d6e637f67214b6a7b7866636a7d4f616a7b63216b606a21686079"><span class="__cf_email__" data-cfemail="e6b4878a968ec8a28392918f8a8394a68883928ac8828983c8818990">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background

    The purposes of the Recovery Act are to: (1) Preserve and create 
jobs and promote economic recovery; (2) assist those most impacted by 
the recession; (3) provide investments needed to increase economic 
efficiency by

[[Page 41694]]

spurring technological advances in science and health; (4) invest in 
transportation, environmental protection, and other infrastructure that 
will provide long-term economic benefits; and (5) stabilize State and 
local government budgets, in order to minimize and avoid reductions in 
essential services and counterproductive State and local tax increases. 
Federal departments must manage and expend funds made available through 
the Recovery Act to achieve these purposes, ``including commencing 
expenditures and activities as quickly as possible consistent with 
prudent management.'' (Recovery Act, section 3)
    In the Recovery Act, the Congress appropriated $16.8 billion for 
DOE to further energy efficiency and renewable energy. (Recovery Act, 
Division A, Title IV) DOE decided to make $156 million of these funds 
available for grants to entities that will deploy sustainable energy 
infrastructure projects and energy efficient industrial technologies in 
four areas: combined heat and power systems; district energy systems; 
industrial waste energy recovery; and efficient industrial equipment. 
To implement this decision, DOE issued a competitive financial 
assistance funding opportunity announcement on June 1, 2009. (Recovery 
Act: Deployment of Combined Heat and Power (CHP) Systems, District 
Energy Systems, Waste Energy Systems, and Efficient Industrial 
Equipment, DE-FOA-0000044).
    This funding opportunity is critical to the deployment of new and 
replacement systems and equipment that are highly efficient and that 
make use of energy that would otherwise be wasted. In the areas of 
combined heat and power systems and district energy systems, new 
systems must have a thermal efficiency of at least 60 percent; 
replacement systems must provide an efficiency increase of at least 25 
percent compared to the system being replaced. In the area of waste 
energy recovery systems, new systems must have a minimum efficiency of 
30 percent; replacement systems must provide a 25 percent increase over 
the replaced system. As to energy efficient industrial equipment, 
applicants must deploy technologies that result in a minimum efficiency 
improvement of 25 percent. Deployment of these systems and equipment 
will produce substantial energy savings and aid in the nation's 
economic recovery by creating or retaining jobs in the United States.
    The funding opportunity announcement is a competitive solicitation. 
DOE has received more than 225 applications, which is more than it 
expects to be able to fund. DOE is now reviewing the merits of the 
applications in order to select those to which it may provide funding. 
One aspect of the merit review process is consideration of potential 
adverse environmental impacts. As part of the application process, each 
applicant was required to complete an environmental questionnaire; the 
environmental information in these questionnaires will be considered 
during the merit review. Consideration of potential environmental 
impacts will be facilitated by the participation of DOE NEPA Compliance 
Officers, who will assist the merit review panel in preparation of the 
Merit Review Report, and the selection official in his consideration of 
the report and of the proposals deemed suitable for funding.
    DOE's NEPA implementing procedures, at 10 CFR 1021.216, establish a 
process for the consideration of potential environmental impacts prior 
to selection. The central element of this process is preparation by DOE 
of an environmental critique containing, among other things, a ``brief 
comparative evaluation of the potential environmental impacts of the 
offers, which will address direct and indirect effects, short-term and 
long-term effects, proposed mitigation measures, adverse effects that 
cannot be avoided, areas where important environmental information is 
incomplete and unavailable, unresolved environmental issues and 
practicable mitigating measures not included in the offeror's 
proposal.'' (10 CFR 1021.216(g)(3)) This environmental critique forms 
the basis for an environmental synopsis, which is made available to the 
public and is incorporated into any environmental assessment or 
environmental impact statement prepared. (10 CFR 1021.216(h)) Another 
feature of the environmental critique is that, in addition to 
information provided by the applicant, ``it may also evaluate 
supplemental information developed by DOE as necessary for a reasoned 
decision.'' (10 CFR 1021.216(f)) This contrasts with the merit review 
process, which is limited to information provided in the application. 
Some other components of an environmental critique (e.g., brief 
discussion of the purpose of the funding opportunity and of the 
applicants' proposals) repeat information that is already part of the 
Merit Review Report that is prepared for the selection official. (The 
Merit Review Report is not publicly available.)
    DOE's existing NEPA regulations provide for certain variances 
``soundly based on the interests of national security or the public 
health, safety, or welfare.'' (10 CFR 1021.343(c)) Any such variance 
must have the advance written approval of the General Counsel,\1\ and 
DOE must publish a notice in the Federal Register specifying the 
variance granted and the reasons.
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    \1\ DOE's NEPA regulations state at 10 CFR 1021.343(c) that the 
Secretary of Energy must provide written approval of any variance 
under that section. However, this authority has been delegated to 
the General Counsel pursuant to Department of Energy Delegation 
Order No. 00-015.00A to the General Counsel.
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Variance

    Pursuant to 10 CFR 1021.343(c), I have determined that granting a 
variance from the requirements of 10 CFR 1021.216(c) through (h) with 
respect to the Department's funding opportunity for the Deployment of 
Combined Heat and Power Systems, District Energy Systems, Waste Energy 
Systems, and Efficient Industrial Equipment (DE-FOA-0000044) is soundly 
based on the interests of public welfare. Expediting the award of 
funding to promising proposals will accelerate deployment of 
sustainable energy infrastructure and energy efficient industrial 
technologies that will reduce energy use. In addition, it will 
facilitate the nation's economic recovery by creating and retaining 
jobs.
    I have concluded that the Department's process for making these 
funding awards will provide the selecting official with sufficient 
information regarding potential environmental impacts in the Merit 
Review Report, which will summarize the strengths and weaknesses of the 
proposals according to the merit review criteria and discuss the 
potential environmental impacts of the proposals under consideration 
for selection. This report also will provide certain other information 
called for in 10 CFR 1021.216(g).
    This variance does not affect the requirements imposed by 10 CFR 
1021.216(i). If projects selected for funding require preparation of an 
environmental assessment or environmental impact statement, these NEPA 
reviews will be completed before DOE takes any action that would have 
an adverse environmental impact or limit the choice of reasonable 
alternatives. In addition, consistent with the openness provisions of 
10 CFR 1021.216(h), any such environmental assessment or environmental 
impact statement will describe the environmental factors noted in the 
Merit Review Report that are relevant to the proposal being analyzed.


[[Page 41695]]


    Issued in Washington, DC, on August 12, 2009.
Eric J. Fygi,
Acting General Counsel.
[FR Doc. E9-19763 Filed 8-17-09; 8:45 am]
BILLING CODE 6450-01-P


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