22732 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 

performance report requirement, 

including information on: (1) The 

number of individuals whose case 

record has not been closed, but have not 

received project services for 90 

consecutive calendar days, (2) the 

number of eligible individuals who 

were employed three months after 

achieving the employment outcome, (3) 

the number of eligible individuals who 

were employed six months after 

achieving an employment outcome, (4) 

the average weekly earnings at entry, 

and (5) the average weekly earnings of 

the individuals whose employment 

outcomes resulted in earnings. 

Note: For purposes of this section VI. 4., 

the term ‘‘employment outcome’’ has the 

meaning provided in 34 CFR 369.4. 

VII. Agency Contact 

For Further Information Contact: 

August Martin, U.S. Department of 

Education, 400 Maryland Avenue, SW., 

room 5088, PCP, Washington, DC 

20202–2800. Telephone: (202) 245–7410 

or by e-mail: august.martin@ed.gov. 

If you use a TDD, call the FRS, toll 

free, at 1–800–877–8339. 

VIII. Other Information 

Accessible Format: Individuals with 

disabilities can obtain this document 

and a copy of the application package in 

an accessible format (e.g., braille, large 

print, audiotape, or computer diskette) 

by contacting the Grants and Contracts 

Services Team, U.S. Department of 

Education, 400 Maryland Avenue, SW., 

room 5075, PCP, Washington, DC 

20202–2550. Telephone: (202) 245– 

7363. If you use a TDD, call the FRS, toll 

free, at 1–800–877–8339. 

Electronic Access to This Document: 

You can view this document, as well as 

all other documents of this Department 

published in the Federal Register, in 

text or Adobe Portable Document 

Format (PDF) on the Internet at the 

following site: http://www.ed.gov/news/ 

fedregister. 

To use PDF you must have Adobe 

Acrobat Reader, which is available free 

at this site. If you have questions about 

using PDF, call the U.S. Government 

Printing Office (GPO), toll free, at 1– 

888–293–6498; or in the Washington, 

DC, area at (202) 512–1530. 

Note: The official version of this document 

is the document published in the Federal 

Register. Free Internet access to the official 

edition of the Federal Register and the Code 

of Federal Regulations is available on GPO 

Access at: http://www.gpoaccess.gov/nara/ 

index.html. 

Delegation of Authority: The Secretary 

of Education has delegated authority to 

Andrew J. Pepin, Executive 

Administrator for the Office of Special 

Education and Rehabilitative Services, 

to perform the functions of the Assistant 

Secretary for Special Education and 

Rehabilitative Services. 

Dated: May 8, 2009. 

Andrew J. Pepin, 

Executive Administrator for the Office of 

Special Education and Rehabilitative 

Services. 

[FR Doc. E9–11202 Filed 5–13–09; 8:45 am] 

BILLING CODE 4000–01–P 

DEPARTMENT OF ENERGY 

Western Area Power Administration 

Transmission Infrastructure Program 

AGENCY: Western Area Power 

Administration, DOE. 

ACTION: Notice of Program. 

SUMMARY: The Western Area Power 

Administration (Western) hereby 

announces its Transmission 

Infrastructure Program (Program). The 

Program implements section 402 of the 

American Recovery and Reinvestment 

Act of 2009 (Recovery Act) for the 

purpose of constructing, financing, 

facilitating, planning, operating, 

maintaining, or studying construction of 

new or upgraded electric power 

transmission lines and related facilities 

with at least one terminus within the 

area served by Western, and for 

delivering or facilitating the delivery of 

power generated by renewable energy 

resources constructed or reasonably 

expected to be constructed after the date 

this section was enacted. The Program 

will use authority granted under this 

section to borrow funds from the U.S. 

Treasury Department to accomplish 

these purposes. 

DATES: The Program is effective upon 

May 14, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Please contact Transmission 

Infrastructure Program, Western Area 

Power Administration, P.O. Box 281213, 

Lakewood, CO 80228–8213, e-mail 

txprogram@wapa.gov. The Program is 

also available on Western’s Web site at 

http://www.wapa.gov/recovery. 

SUPPLEMENTARY INFORMATION: 

Background 

Western markets and transmits 

wholesale hydroelectric power 

generated at Federal dams across the 

western United States. This power is 

sold to customers in accordance with 

Federal law. Western’s transmission 

system was developed to deliver the 

Federal hydro-power to those 

customers. Western owns and operates 

an integrated 17,000 circuit-mile, highvoltage transmission system and 

markets power across 15 western states 

and a 1.3 million square-mile service 

area. Western’s service area 

encompasses all of the following states: 

Arizona, California, Colorado, Nebraska, 

Nevada, New Mexico, North Dakota, 

South Dakota, Utah, and Wyoming; as 

well as parts of Iowa, Kansas, Montana, 

Minnesota, and Texas. Today, Western 

makes capacity on its transmission 

system excess to that needed to serve its 

preference customers available through 

the policies and procedures outlined in 

its Open Access Transmission Tariff 

(OATT). Western offers 

nondiscriminatory access to its 

transmission system, including requests 

to interconnect new generating 

resources to that transmission system 

under its OATT on file with the Federal 

Energy Regulatory Commission (FERC). 

Western sought public comment on 

the proposed principles, policies and 

practices it will use to implement its 

new Recovery Act authority in a 30-day 

consultation and comment period as 

announced in a March 4, 2009, Federal 

Register notice (74 FR 9391). A formal 

public comment forum was held in 

Lakewood, Colorado, on March 23, 

2009, and a transcript and meeting 

video were made available through 

Western’s external Web site at http:// 

www.wapa.gov/recovery. Western 

received comments from 40 customers 

and other stakeholders. All comments 

were reviewed and, where appropriate, 

incorporated into the Program. The 

Discussion of Comments section 

provides Western’s response to the 

comments. Where possible, comments 

and related responses were 

consolidated. In defining the proposed 

Program, Western identified a series of 

principles to provide overarching 

guidance. Western further identified a 

series of policies and practices it will 

follow in implementing the Program. 

Those principles, policies and practices 

are set forth in this notice. 

With this notice, Western is making 

its Program effective upon publication 

in the Federal Register. The procedures 

and statements of policies set forth in 

Western’s Program are consistent with 

the Recovery Act and other statutes, and 

the Program does not include additional 

substantive requirements. Therefore, 

Western’s program is not subject to the 

Administrative Procedure Act’s delayed 

effective date provision (5 U.S.C. 

553(d)). 

Discussion of Comments 

Western received 40 submittals 

related to its proposed Program. To 


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facilitate presentation and discussion of 

the comments, Western categorized the 

comments into four general categories: 

(1) Comments on set-up, operation, and 

management of the Program; (2) 

comments on project identification, 

evaluation, selection, and certification 

criteria; (3) comments on project 

funding, financing, and repayment 

criteria; and (4) other comments. 

1. Comments on Set-Up, Operation, and 

Management of the Program 

a. Time and Information Comments 

Summary Comment: Western 

received numerous comments regarding 

extending the comment period, 

sequencing of the Request for 

Information and the Program comment 

periods, and overall need to spend more 

time developing Program procedures 

and criteria. 

Response: The comment period will 

not be extended. The purpose of the 

Recovery Act, which authorized this 

Program, is to stimulate job creation in 

the near term. 

The Program also supports the Obama 

Administration’s goal of rapid 

development of infrastructure to deliver 

renewable resources. Therefore, Western 

is moving expeditiously, while 

following the intent and purpose of the 

law and balancing the need of 

stakeholders for substantive and 

procedural input. Western will 

implement the Program as defined in 

this notice. However, Western is 

committed to continually evaluating the 

Program and is open to the possibility 

of making further changes as 

appropriate through open and 

transparent public processes. 

b. Process Comments 

Summary Comment: Western 

received numerous comments on the 

need for an open, transparent, fair, and 

meaningful process to allow 

stakeholders to assist Western in 

identifying, prioritizing, selecting, and 

funding projects, either for further study 

or for implementation, and to determine 

these projects’ repayment methodology. 

Several commenters asked for more 

public meetings. Commenters also 

expressed interest in serving on an 

advisory board to assist Western in 

managing the Program. 

Response: Western has a long history 

of partnering with other entities in 

developing new additions to the 

transmission system, and will continue 

this business model in implementing 

the Program. In fact, Western is 

adopting a principle of ensuring the 

Program provides an opportunity, where 

appropriate, for the participation of 

other entities in constructing, financing, 

owning, facilitating, planning, 

operating, maintaining, or studying 

construction of new or upgraded electric 

power transmission lines. The Federal 

Register notices titled ‘‘Notice of 

Availability of Request for Interest’’ and 

‘‘Notice of Proposed Program and 

Request for Public Comments’’ 

published on March 4, 2009, provided 

interested parties opportunities to 

suggest projects for Western’s 

consideration and to comment on the 

practices and policies of the Program. 

Where appropriate, Western intends to 

open projects to additional participation 

so other entities can contribute 

meaningfully. 

Public meetings, and opportunities for 

public comment, will be scheduled for 

specific project proposals during each 

project’s National Environmental Policy 

Act compliance process. Commenters’ 

interest in serving on a Program 

advisory board is noted; however, 

Western believes its long history of ad 

hoc collaborative engagement with 

stakeholders will adequately meet the 

needs of the Program. 

c. Laws/Rules Comments 

Summary Comment: Numerous 

comments were received asking for the 

Program to not impact the statutory 

obligations of Western. Additional 

comments requested that the Program 

comply with all applicable Federal 

laws, regulations, policies, and state 

laws. 

Response: It is Western’s intention to 

fully comply with all of its statutory 

obligations, including its Reclamation 

Law obligations and those contained in 

the new Recovery Act statute. In 

particular, Western’s Program activities 

will be implemented to assure 

compliance with all applicable National 

Environmental Policy Act requirements. 

Summary Comment: Several 

commenters asked that all transmission 

capacity excess to Western’s needs be 

posted and made available on a nondiscriminatory basis. 

Response: Available transfer 

capability surplus to Western’s needs 

will continue to be made available in a 

nondiscriminatory manner consistent 

with FERC open access transmission 

rules, Federal statute, and Western 

policies. 

Summary Comment: Some 

commenters recommended that Western 

should give priority to projects already 

in its interconnection and/or 

transmission queues when conflicts 

exist between the Program’s projects 

and projects in the queues. Other 

commenters suggested that the 

Program’s projects be handled 

separately from projects in Western’s 

queues. 

Response: Where possible, Western 

will pursue projects that simultaneously 

satisfy queue requests and meet the 

requirements of the Program. However, 

where that is not possible, Western will 

give priority to projects developed 

under section 402 of the Recovery Act. 

2. Comments on Project Identification, 

Evaluation, Selection, and Certification 

Criteria. 

a. Renewable Comments 

Summary Comment: Western 

received comments indicating that the 

Program should assist in bringing 

renewable energy sources on line and 

delivering those resources to market, 

and that encouraged Western to 

consider a diverse range of renewable 

generation resources. 

Response: Western agrees with these 

comments. As the statute indicates, 

transmission projects that Western 

participates in under the Program will 

facilitate the development of renewable 

energy resources, and the delivery of 

those resources to market. Western is 

not focused on any particular source of 

renewable energy, and will consider 

transmission projects that meet the 

Program’s criteria from all sources of 

renewable energy generation. By statute, 

these renewable energy resources must 

be constructed or reasonably expected 

to be constructed after the statute’s 

enactment date. 

Summary Comment: Some 

commenters asked that Western remain 

flexible and willing to consider the 

development of new products and 

services to assist the integration of 

renewables into the existing 

transmission system. 

Response: Western will remain open 

to the development of new products and 

services that assist in integrating 

renewables into the existing 

transmission system that do not conflict 

with statutory requirements. 

b. Public Interest Comments 

Summary Comment: Western 

received comments indicating that the 

Program, and the projects selected by 

the Program, should serve the public 

interest, and asked for clarification on 

how Western will determine what is in 

the public interest. 

Response: Western agrees the Program 

and the projects selected under the 

Program should serve the public 

interest. Although the Recovery Act 

specifically does not define what 

constitutes ‘‘public interest’’, when 

selecting projects, Western believes that 

it has discretion to balance the merits of 


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each proposed project on a case-by-case 

basis and on the circumstances of each 

situation. 

Summary Comment: Some 

commenters stated that adding 

transmission lines does not serve the 

public interest. 

Response: Section 402 of the Recovery 

Act clearly indicates that Congress 

desires Western to build transmission 

projects to facilitate the delivery of 

renewable energy. Western intends to 

carry out its Program to fulfill this 

Congressional direction. 

c. System Impact Comments 

Summary Comment: Western 

received numerous comments that it 

should develop evaluation criteria so 

that projects selected for 

implementation will not result in the 

creation of any negative reliability, 

operational, or financial impacts to 

neighboring transmission systems, but 

also protect against the diminution of 

any rights and obligations of existing 

transmission users. 

Response: Additions, modifications, 

and/or upgrades to the nation’s electric 

transmission infrastructure will be 

coordinated so that the interests of the 

affected parties are represented. As 

proposed projects are considered for 

possible implementation under the 

Program, Western intends to seek input 

from the appropriate stakeholders, 

including regional planning forums 

and/or processes on a case-by-case 

basis, to ensure that the relevant 

interests and issues are identified, 

represented, and appropriately 

considered. 

Summary Comment: Western 

received a comment that it should select 

projects for implementation that 

enhance reliability. 

Response: Western will not limit itself 

to just projects that enhance reliability. 

The Recovery Act allows Western to 

build projects as long as they will not 

adversely impact system reliability or 

operations. Whenever additions, 

modifications, and/or upgrades to the 

nation’s electric transmission 

infrastructure are undertaken, they are 

coordinated through regional planning 

forums and/or processes where all 

stakeholders have the opportunity to 

have their issues and concerns raised 

and discussed. Western intends to seek 

input from the appropriate stakeholders, 

including regional planning forums 

and/or processes on a case-by-case 

basis, to ensure that the relevant interest 

and issues are identified, represented, 

and appropriately considered as projects 

are considered for possible 

implementation. 

d. Project Priority Comments 

Summary Comment: Western 

received several comments indicating 

that, when considering projects for 

implementation, Western should give a 

higher priority to those projects that 

upgrade and modernize the existing 

transmission infrastructure to increase 

its capacity for integrating more 

renewables into the grid; promote more 

public/private partnerships; are further 

along in their developmental 

prerequisites; confront less financial, 

technological, and regulatory hurdles; or 

can be quickly constructed. 

Response: Western always appreciates 

suggestions from stakeholders which 

enhance the effective and efficient 

management of its programs. The 

Program anticipates a combination of 

new transmission construction and 

upgrades to existing infrastructure, and 

will use public/private partnerships to 

the extent practicable in order to meet 

the objectives of the Recovery Act to 

create jobs in the near term and rapidly 

develop infrastructure to deliver 

renewable resources. 

e. Criteria Comments 

Summary Comments: Western 

received numerous comments regarding 

project evaluation criteria. Suggestions 

included the development of a 

comprehensive list to include 

consideration of the creditworthiness of 

any potential partner; not funding 

projects that are fundamentally 

unsound; job creation and the long-term 

economic benefits of any project; and 

other project eligibility criteria. 

Response: Western’s expectation is 

that unsound projects will be screened 

out through a rigorous evaluation 

process. Prior to committing borrowed 

funds to any selected project, as 

mandated, the Administrator must 

certify that the project is in the public 

interest; it will not adversely impact 

system reliability or operations, or other 

statutory obligations; and it is 

reasonable to expect that revenue from 

the project will be adequate to repay the 

project loan, expenses for ancillary 

services and the ongoing operation and 

maintenance costs of the project. In 

addition to these criteria, Western will 

also assess the technical merits and 

feasibility of a project; its ability to 

deliver power generated by renewable 

resources; the financial stability and 

capability of all potential project 

partners; project readiness (e.g., 

permitting, local, state and/or regional 

approvals); and the economic 

developmental benefits of the project. 

The Program’s project evaluation 

criteria will be applied to provide the 

basis for the Administrator’s 

certification. 

Summary Comment: Western 

received several comments requesting 

that it allow participation in 

transmission projects through long-term 

contracts, including an open season 

period, e.g., Bonneville Power 

Administration’s (BPA) open season. 

Response: Western is open to 

considering the concept of allowing 

participation in transmission projects 

through long-term contracts, including 

the use of an open season period to 

select counterparties to those contracts, 

similar to that used by BPA. 

Summary Comment: Western 

received a comment that it should not 

consider refinancing as a part of the 

original feasibility analyses of the new 

projects. 

Response: The Recovery Act 

authorizes Western to refinance loans 

taken pursuant to section 402. 

Refinancing would not be part of the 

original feasibility analyses of new 

projects, but will be considered during 

the useful life of projects and will be 

used when it makes good business 

sense. 

f. Coordination Comments 

Summary Comment: Western 

received numerous comments advising 

it to take advantage of studies and work 

(previous, current, future) on potential 

transmission projects, coordinate the 

Program’s projects through regional 

planning forums and processes, possibly 

lead regional planning efforts, and 

consider coordination of regional grid 

operations to integrate renewable 

resources. 

Response: Western is involved in 

many regional and subregional 

transmission planning groups, 

collaborating with transmission entities 

on proposed transmission additions to 

coordinate and efficiently plan for 

transmission line development. For 

example, Western is a member of the 

WestConnect transmission planning 

group, which provides an annual 10- 

year regional transmission plan, 

coordinating all transmission plans 

across the WestConnect planning area. 

Western also participates in the MidContinent Area Power Pool (MAPP) 

Regional Plan that integrates the 

transmission plans developed by 

individual MAPP members through the 

MAPP’s Transmission Planning 

Subcommittee and by sub-regional 

planning groups, in order to meet the 

transmission needs in the MAPP Region 

of Members and interested parties. 

Western will continue to be involved in 

these and other transmission planning 

groups to coordinate projects, and will 


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use existing and future studies and 

analyses to enhance its decision 

process. 

g. Ancillary Services Comments 

Summary Comment: Western 

received several comments related to 

the provision of ancillary services. Some 

commenters felt Western should use 

Federal hydro-power resources to 

provide ancillary services to the 

Program projects; others were equally 

opposed. Other commenters suggested 

that any customers using the Program 

projects should be fully responsible for 

any ancillary services required in 

conjunction with that transmission 

service. Also, some commenters were 

unsure of what Principle 5 meant when 

Western stated that each Program 

project ‘‘[h]as the necessary capabilities 

to provide generation related ancillary 

services.’’ (Emphasis added.) 

Response: Nothing in the provisions 

of the Recovery Act ‘‘confers on the 

Administrator any additional authority 

or obligation to provide ancillary 

services to users of transmission 

facilities developed under this section.’’ 

Under normal industry operation 

procedures, it is the responsibility of the 

recipient of the transmission service to 

undertake the necessary arrangements to 

secure the provisioning of the required 

ancillary services. Under the Recovery 

Act, and as part of the Administrator’s 

certification responsibilities, the 

Administrator must also ensure a 

proposed new Program project does not 

conflict with his responsibilities to 

existing transmission and preference 

power customers of the Federal power 

system. 

In order to clarify any 

misunderstanding that stakeholders may 

have, Western has changed Principle 5 

to use the words ‘‘obtain and deliver’’ 

rather than ‘‘provide’’ to clarify that a 

Program project must have the ability to 

obtain and deliver ancillary services. 

3. Comments on Project Funding, 

Financing, and Repayment Criteria 

a. Use of Funds Comments 

Summary Comment: Several 

commenters requested that Western be 

flexible and open to alternative 

financing options to leverage its 

borrowing authority to gain the most 

benefit. 

Response: Western is open to 

considering alternative financing 

options on a case-by-case basis in order 

to maximize utilization of its new 

borrowing authority. 

Summary Comment: Western 

received several comments regarding 

the funding of studies and 

environmental analyses, including 

setting the criteria for the repayment of 

those costs when a project does not get 

completed. 

Response: Western welcomes 

proposals from any entity who may seek 

funding through Western to undertake 

the necessary planning and 

environmental studies to determine the 

feasibility of a project. However, in 

order to assure the public that its funds 

are being used prudently, Western will 

evaluate the probability of each 

proposal leading to a successful 

outcome on a case-by-case basis before 

making any commitment to advance 

funds. Funds expended to study 

projects that are not constructed shall be 

handled in accordance with provisions 

of the Recovery Act. 

Summary Comment: Western 

received some comments regarding the 

need to set the terms and conditions of 

funds borrowed in conjunction with the 

selection of the projects to be able to 

fully analyze the repayment ability of 

the project. 

Response: Western has executed a 

Memorandum of Understanding with 

the U.S. Treasury Department that 

establishes the terms and conditions 

under which Western can borrow funds. 

Thus, Western will have access to 

adequate financing information when 

analyzing the repayment terms of each 

Program project. 

b. Recovery of Costs Comments 

Summary Comment: Western 

received numerous comments that 

selected projects must generate 

sufficient revenues to assure repayment 

of its costs, as required by the Recovery 

Act, including the suggestion of a policy 

that project beneficiaries pay for all 

project costs. 

Response: Western plans to develop a 

repayment program that complies with 

the Recovery Act. Western’s 

Administrator stated in his testimony 

before the Subcommittee on Water and 

Power, Committee on Natural 

Resources, and U.S. House of 

Representatives, on March 10, 2009, that 

‘‘Western will * * * use revenues from 

project beneficiaries as the only source 

of repayment of all associated project 

costs, and * * * All selected projects, 

including upgrades to Western’s 

existing transmission lines, must meet 

the requirement that there is a 

reasonable likelihood that it will 

generate enough transmission service 

revenue to repay the principal 

investment, all operating costs and the 

accrued interest.’’ Pursuant to the 

Recovery Act, Western will evaluate 

each project and, if selected, the 

Administrator will certify that it is 

reasonable to expect that the proceeds 

from the project shall be adequate to 

repay the loan. In addition, Western will 

modify its Program-related Principles to 

ensure that project beneficiaries repay 

project costs. 

Summary Comment: Western 

received some comments that selected 

projects use generally accepted 

accounting principles for financial 

accounting and reporting so 

beneficiaries know their repayment 

obligations. 

Response: To elaborate on a statement 

in the Federal Register notice, 

published on March 4, 2009, in Section 

III.C.1., Program Funding—Policies and 

Practices, Western will use current 

business practices and accounting 

policies (based on generally accepted 

accounting principles) to record and 

track all expenses and revenues and 

other financial transactions for each 

project selected. 

Summary Comment: Western 

received numerous comments that rates 

for selected projects are kept separate 

and not financially integrated for the 

purposes of repayment with any 

existing or potential future transmission 

system so that there is no impact to 

existing users. 

Response: To comply with the 

Recovery Act, and as stated in the 

Principles section of the Federal 

Register notice published on March 4, 

2009, Western will isolate the 

accounting transactions of the new 

projects in Western’s existing financial 

management system. In response to a 

question submitted for the record of the 

hearing before the Subcommittee on 

Water & Power, Committee on Natural 

Resources, U.S. House of 

Representatives, on March 10, 2009, 

Western stated, ‘‘Section 402 of the 

Recovery Act clearly requires, for 

repayment purposes, Western to treat 

each project funded with Treasury 

borrowings as separate and distinct from 

all other Western transmission facilities 

* * *’’ 

Summary Comment: Western 

received comments that it needs to have 

a strategy for interconnection-wide costsharing for projects designed to achieve 

national renewable energy goals. 

Response: Interconnection-wide costsharing is not a requirement of the 

Recovery Act or the Program. Western 

may consider interconnection-wide 

cost-sharing, as well as other costsharing concepts, if appropriate, as it 

evaluates project proposals on a case-bycase basis. If national renewable energy 

goals are established and changes to 

Program processes and procedures are 

required, they will be modified as 

appropriate. 


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Summary Comment: Western 

received a comment that it should adopt 

rate setting methodologies consistent 

with Department of Energy (DOE) Order 

RA6120.2 (RA6120.2). 

Response: RA6120.2 establishes 

financial reporting requirements for 

Power Marketing Administrations. 

RA6120.2 was developed primarily for 

financial reporting of hydroelectric 

power projects using Federal 

appropriations. This Program is for 

transmission projects funded using 

treasury borrowing and transmission 

service revenue. Even though these 

differences exist, they tend to be minor 

and Western believes that it can comply 

with the applicable portions of 

RA6120.2. 

Summary Comment: Western 

received a comment that the specific 

provisions of the Recovery Act related 

to ‘‘participation’’ do not provide how a 

third-party participant will recover its 

costs. 

Response: Rates and repayment for 

projects funded through the Program 

will be determined on a case-by-case 

basis. Western anticipates that its rates 

and repayment methods will apply only 

to those portions of a project that are 

under Western’s operational control. For 

projects that are not under Western’s 

operational control, Western will use 

contract provisions with the third-party 

participant to require that rates be 

established to assure a sufficient 

revenue stream to repay project costs. In 

addition, one of Westerns objectives is 

to encourage nonfederal participation to 

leverage Westerns borrowing authority. 

Depending upon the roles and 

responsibilities agreed to by the parties, 

the transmission rates charged by 

another entity may be subject to FERC 

rate jurisdiction, or that of a public 

utility commission or other rate setting 

body. 

Summary Comment: Western 

received several comments regarding 

the acceptability of the pancaking of 

transmission rates. Conversely, several 

commenters were opposed to pancaking 

of transmission rates. 

Response: Western has noted these 

comments. The Program’s policies and 

procedures are flexible and may provide 

for either ‘‘pancaking’’ or ‘‘nonpancaking’’ of rates as the situation 

requires. Rate design for transmission 

capacity that Western markets will be 

determined using Western’s appropriate 

rate setting processes. 

Summary Comment: Western 

received a comment that after Federal 

loan obligations are paid off, right 

holders can migrate to a common tariff 

charge as a part of a larger network. 

Response: Western has noted this 

comment. Nothing in the Recovery Act 

or the Program policies and procedures 

precludes migration to a common tariff 

charge as a part of a larger network. 

Summary Comment: Some 

commenters requested that Western 

clarify when the forgiveness of loan 

balances will be used and that firm 

power customers will not be liable for 

any unforgiven loan balance. 

Response: The Recovery Act clearly 

states that balances owed to Treasury at 

the end of the useful life of a project, or 

funds expended to study projects that 

are not constructed, shall be forgiven. It 

further states that revenue from the use 

of the project shall be the only source 

of funds for repayment of project loans 

and payment of ancillary services and 

operation and maintenance costs. 

Summary Comment: Western 

received a comment that before projects 

are implemented, Western should 

ensure that contracts with customers for 

renewables are executed. 

Response: Western acknowledges this 

comment and will endeavor to ensure, 

where appropriate, that renewable 

energy generators have executed the 

necessary contracts with their 

customers. 

4. Other Comments Received 

Summary Comment: Western 

received a number of other 

miscellaneous comments which 

requested clarification on a number of 

items as well as providing suggestions 

on the overall management and 

operation of the Program. 

Response: Western always appreciates 

suggestions from stakeholders which 

enhance the effective and efficient 

management of its programs. Western 

will consider each of the comments 

provided under this section and as 

appropriate, integrate them into its 

management and operation of the 

Program. In addition, should there be 

any changes that require further 

notification of stakeholders, Western 

will communicate those changes in a 

timely manner. 

Summary Comment: Western 

received a comment that access to all 

information submitted for project 

information should be available without 

using the Freedom of Information Act 

(FOIA). 

Response: Formal FOIA procedures 

need not necessarily be followed in 

order to request project information. A 

functional request can be submitted that 

does not invoke FOIA. However, 

Western does not generally have the 

ability, nor does the Recovery Act 

specifically grant Western ability, to 

waive protections afforded to parties 

under ‘‘Exemption 4’’ of FOIA. 

Exemption 4 provides protections for 

trade secrets or commercial or financial 

information submitted on a privileged 

or confidential basis. In this regard, 

Western has also received comments 

asking for greater confidentiality 

protections for project information. 

FOIA and Exemption 4 provide an 

adequate framework, and balancing of 

interests, by which Western will treat 

requests for both disclosure and 

nondisclosure. 

Summary Comment: Western 

received several comments that it needs 

to provide more detail to ensure how 

confidential information will be 

protected. 

Response: In protecting confidential 

information, Western will look to the 

law related to FOIA, and in particular to 

Exemption 4. 

Summary Comment: Western 

received some comments that all 

potential conflicts of interest of project 

participants shall be disclosed and 

reported to Western. 

Response: Western appreciates the 

fact that if it contracts for support in 

evaluating projects that these 

contractors may have worked for one or 

more project proponents in the past. 

Western is also concerned with conflicts 

of interest, and therefore will use its 

current acquisition practices to retain 

contractors based on specific 

requirements in the Federal Acquisition 

Regulations (FAR) to address any 

organizational conflicts of interest or 

‘‘OCIs.’’ 

Summary Comment: Western 

received a comment that the term 

‘‘entity’’ is too narrowly defined and 

may exclude public power. 

Response: Western includes public 

power in its definition of ‘‘entity.’’ 

Summary of Changes From Proposed 

Program 

Western has revised the proposed 

Program in response to public 

comments to the Federal Register notice 

(FRN) published on March 4, 2009. The 

more significant changes made to the 

Program include: 

All references to the ‘‘proposed’’ 

Program were deleted, and now refer to 

the ‘‘Program.’’ The Definition section 

was revised to refine the definition of 

entity as ‘‘any individual or 

organization that seeks to participate 

with Western under the Program’s 

authority.’’ The section was expanded to 

include a definition of ‘‘beneficiary’’ as 

any individual or organization that 

receives an economic, financial, 

operational, or physical benefit from the 

construction and/or operation of a 

project funded by the Program. 


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Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 22737 

The Program elements of Project 

Development and Project Operations 

and Maintenance were combined. In 

addition, Western added a Principles 

section as part of the Program to 

evaluate potential projects. Specifically, 

Principles are categorized as being 

either project- or Program-related. 

Initially, nine Principles (six projectrelated, three Program-related) were 

previously identified in the Background 

section of the FRN. Principles were 

expanded to ten. A fourth Program 

principle was added and reads: 

‘‘Ensures that project beneficiaries repay project costs.’’ The inclusion of this 

project Principle and related definition 

will clarify repayment responsibility for 

individual Program project costs. In 

addition, the fifth project Principle was 

revised as follows: ‘‘Has the necessary 

capabilities to obtain and deliver 

generation-related ancillary services.’’ 

The Principle as previously worded 

required the project provide generationrelated ancillary services. All references 

in the Program criteria to ‘‘provide . . . 

ancillary services’’ were subsequently 

changed to ‘‘obtain and deliver . . . 

ancillary services.’’ The Project Funding 

section was changed to reflect revision 

of the definition of Applicability as 

follows: ‘‘All projects selected for 

funding under this authority will be 

governed by the principles, policies, 

and practices outlined in this notice.’’ 

Also, the Criteria element was deleted. 

The Project Funding Policies and 

Practices element was expanded to 

incorporate a third component to read: 

‘‘Western will look for public-private 

partnerships to maximize the leveraging 

of funds.’’ 

Under Project Evaluation, 

Applicability was changed to read: ‘‘All 

Projects to be considered for funding 

under this authority will be evaluated 

against minimum criteria outlined 

below.’’ Criteria were changed 

significantly, expanded to include six 

additional criteria and the revision of 

two. Policies and Practices was changed 

to include narrative on Western’s 

adherence to the Federal Acquisition 

Regulation in addressing potential 

organizational conflicts of interest when 

contracting for outside expertise to 

assist in evaluating proposed projects 

seeking funding under the Program. 

The Project Development and 

Operations and Maintenance, Policies 

and Practices was revised. Specifically, 

Western will give priority to projects 

that satisfy OATT or related requests. 

This has been moved to Project 

Evaluation criteria. In addition, 

narrative referencing applicable Federal 

laws, regulations and policies was 

expanded to include: ‘‘* * * the 

National Environmental Policy Act, the 

FAR, and other applicable provisions of 

the Recovery Act.’’ 

The Project Rates and Repayment, 

Policies and Practices section now 

contains an expanded definition of 

Program project costs to include 

overhead. In addition, the development 

of Program project transmission rates for 

transmission capacity was changed from 

Western owns and controls to simply 

controls. Western will adopt applicable 

requirements contained in DOE Order 

RA6120.2 as part of its repayment and 

reporting processes. 

Western’s Transmission Infrastructure 

Program 

Western’s Transmission Infrastructure 

Program will implement the Program 

authorized in section 402 of the 

Recovery Act. The Program will 

identify, prioritize and participate in the 

study, facilitation, financing, planning, 

operating, maintaining, and 

construction of new or upgraded 

transmission facilities and additions 

that will help bring renewable energy 

resources to market across the West. 

One objective is to encourage nonFederal participation so as to leverage 

Western’s borrowing authority. The 

Program consists of several major 

components: Program Principles; Project 

Funding, Project Evaluation, Project 

Development and Operation and 

Maintenance, and Project Rates and 

Repayment. 

Table of Contents 

I. Definitions 

II. Principles 

A. Project-Related Principles 

B. Program-Related Principles 

III. Project Funding 

A. Applicability 

B. Policies and Practices 

IV. Project Evaluation 

A. Applicability 

B. Criteria 

C. Policies and Practices 

V. Project Development and Operations and 

Maintenance 

A. Applicability 

B. Policies and Practices 

VI. Project Rates and Repayment 

A. Applicability 

B. Criteria 

C. Policies and Practices 

I. Definitions 

A. The term ‘‘Administrator’’ means 

the Administrator of Western. 

B. The term ‘‘entity’’ means any 

individual or organization that seeks to 

participate with Western under the 

Program’s authority. 

C. The term ‘‘beneficiary’’ means any 

individual or organization that receives 

an economic, financial, operational, or 

physical benefit from the construction 

and/or operation of a project funded by 

the Program. 

II. Principles 

In implementing the authority granted 

to Western in section 402, Western will 

use the following principles which 

provide overarching guidance: 

A. Project-Related Principles: 

Western will ensure each project 

approved for funding using Treasury 

borrowing authority: 

1. Is in the public interest. 

2. Will not adversely impact system 

reliability or operations, or other 

statutory obligations. 

3. Offers a reasonable expectation that 

the proceeds from such project shall be 

adequate to meet Western’s financial 

repayment obligations. 

4. Uses a public process when 

Western sets the rates for any 

transmission capacity resulting from 

new facilities developed from Western’s 

participation in such projects. 

5. Has the necessary capability to 

obtain and deliver generation-related 

ancillary services. 

6. Uses the proceeds from the sale of 

the transmission capacity from such 

project for the repayment of the 

principal and interest of the loan from 

the Treasury attributable to that project, 

after reserving such funds as Western 

determines are necessary, 

a. to pay for the ancillary services that 

are obtained and delivered; and 

b. to meet the costs of operating and 

maintaining the new project. 

B. Program-Related Principles: 

Western will ensure the Program: 

1. Provides an opportunity, where 

appropriate, for participation by other 

entities in constructing, financing, 

owning, facilitating, planning, 

operating, maintaining, or studying 

construction of new or upgraded electric 

power transmission lines under this 

authority. 

2. Uses revenues from projects 

developed under this authority as the 

only source of revenue for, 

a. repayment of the associated loan for 

the project; 

b. payment of expenses for ancillary 

services, and operation and 

maintenance; and 

c. payments for ancillary services that 

will be credited to the existing power 

system providing these services, when 

the existing Federal power system is the 

source of the ancillary services. 

3. Maintains appropriate controls to 

ensure, for accounting and repayment 

purposes, each transmission line and 

related facility project in which Western 

participates under this authority is 

treated as separate and distinct from, 

a. each other such project; and 


pwalker on PROD1PC71 with NOTICES
22738 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 

b. all other Western power and 

transmission facilities. 

4. Ensures that project beneficiaries 

repay project costs. 

III. Project Funding 

A. Applicability: All projects selected 

for funding under this authority will be 

governed by the principles, policies, 

and practices outlined in this notice. 

B. Policies and Practices: 

1. Western will use generally accepted 

accounting principles and practices in 

recording and tracking all expenses and 

revenue transactions for each project 

selected. 

2. Western will isolate these financial 

accounting transactions in its existing 

financial management system. 

3. Western will look for public-private 

partnerships to maximize the leveraging 

of funds. 

IV. Project Evaluation 

A. Applicability: All projects to be 

considered for funding under this 

authority will be evaluated against the 

minimum criteria outlined below. 

B. Criteria: Project evaluation 

includes feasibility of developing a 

project that meets the following 

minimum criteria: 

1. Facilitates the delivery to market of 

power generated by renewable resources 

constructed or reasonably expected to 

be constructed; 

2. is in the public interest; 

3. will not adversely impact system 

reliability or operations, or other 

statutory obligations; 

4. establishes the reasonable 

expectation that the project will 

generate enough transmission service 

revenue to repay the principal 

investment; all operating costs, 

including overhead; and the accrued 

interest by the end of the project’s 

service life; 

5. has at least one terminus located 

within Western’s service territory; 

6. describes the economic 

developmental benefits of the project, 

including an estimate of how many and 

the type, how fast, and where in the 

country jobs are created; 

7. gives priority to projects that satisfy 

Western’s Open Access Transmission 

Tariff or related requests; 

8. addresses the technical merits and 

feasibility of a project; 

9. demonstrates the financial stability 

and capability of all potential project 

partners; 

10. describes project readiness (e.g., 

permitting, local, state and/or regional 

approval); and 

11. describes all project partners’ 

participation in a region-wide 

interconnection-wide planning group or 

forum. 

C. Policies and Practices: 

1. Western will establish additional 

criteria to evaluate proposed projects as 

necessary. 

2. Western may, at its discretion, use 

outside expertise to assist in evaluating 

proposed projects seeking funding 

under this authority. Western will use 

its current acquisition practices to retain 

any contractors to assist in project 

evaluation and will use the specific 

regulations in the FAR to address any 

organizational conflicts of interest. 

3. Western will treat data submitted 

by project participants related to this 

authority, including project 

descriptions, participation and 

financing arrangements by other parties, 

as available to the public through the 

FOIA. However, participants may 

request confidential treatment of all or 

part of a submitted document under 

FOIA’s exemption for ‘‘Confidential 

Business Information.’’ Materials so 

designated and which meet the criteria 

stipulated in the FOIA will be treated as 

exempt from FOIA inquiries. 

V. Project Development and Operations 

and Maintenance 

A. Applicability: All projects funded 

under this authority. 

B. Policies and Practices: 

1. For study, facility development, 

construction and any other related 

purposes, where applicable, Western 

will consider projects that are 

constructed pursuant to its authority 

under section 402 of the Recovery Act 

separately from procedures and 

requirements for arranging for 

transmission service or interconnection 

under its OATT, or related 

interconnection agreements. Western 

will use the appropriate project 

management methods to initiate, plan, 

execute, monitor, control and close all 

transmission projects approved for 

funding under this authority. 

2. Available transfer capability 

surplus to Western’s need will be made 

available in a nondiscriminatory 

manner consistent with FERC open 

access transmission rules, Federal 

statute, and Western policies. 

3. Western will comply with all other 

applicable Federal laws, regulations and 

policies, including the National 

Environmental Policy Act, the FAR, and 

other applicable provisions of the 

Recovery Act. 

VI. Project Rates and Repayment 

A. Applicability: All projects funded 

under this authority. 

B. Criteria: The repayment 

requirements and applicable 

transmission rates will be designed so 

that proceeds from the project meet the 

repayment obligation. 

C. Policies and Practices: 

1. Before project development, 

Western will confirm the reasonable 

likelihood that the project will generate 

enough transmission service revenue to 

meet Western’s financial repayment 

obligations including principal 

investment, operating costs including 

overhead, accrued interest, and other 

appropriate costs. 

2. Transmission rates for transmission 

capacity Western controls will be 

developed in a public process following 

the applicable requirements outlined in 

10 CFR part 903 and RA6120.2, and set 

by the Administrator as specified in 

relevant DOE orders. 

Environmental Compliance 

In compliance with the National 

Environmental Policy Act of 1969 

(NEPA) (42 U.S.C. 4321, et seq.), the 

Council on Environmental Quality 

Regulations for implementing NEPA (40 

CFR parts 1500–1508) and the DOE 

NEPA Implementing Procedures and 

Guidelines (10 CFR part 1021). 

Western has determined that this 

action is categorically excluded from 

further NEPA analysis. Future actions 

under this authority will undergo 

appropriate NEPA analysis. 

Dated: April 21, 2009. 

Timothy J. Meeks, 

Administrator. 

[FR Doc. E9–11299 Filed 5–13–09; 8:45 am] 

BILLING CODE 6450–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

[EPA–R09–OAR–2008–0728; FRL–8905–2] 

Adequacy Status of Motor Vehicle 

Emissions Budgets in Submitted Early 

Progress Plan for Clark County 8-hour 

Ozone for Transportation Conformity 

Purposes; Nevada 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Notice of Adequacy. 

SUMMARY: In this notice, EPA is 

notifying the public that the Agency has 

found that the motor vehicle emissions 

budgets for 8-hour ozone in the 8-hour 

Ozone Early Progress Plan for Clark 

County, Nevada (June 2008) (‘‘Clark 

County Ozone EPP’’) are adequate for 

transportation conformity purposes. The 

Clark County Ozone EPP was submitted 

to EPA on July 28, 2008 by the Nevada 

Division of Environmental Protection 

(NDEP) as a revision to the Nevada State 

Implementation Plan (SIP). As a result 


pwalker on PROD1PC71 with NOTICES