Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices 38675 

significant environmental impacts. This 

is because Super Hornet flight training 

is nearly identical to Hornet flight 

training. Consequently, there would be 

little to no change to the type and 

quantity of flight training operations at 

NAS Oceana and NALF Fentress as a 

result of the transition. The analysis also 

showed there would be only minor 

noise increases in a few areas; however, 

no increases would be greater than 1.6 

decibels (dB) Day-Night Average Sound 

Level (DNL). A 3 dB DNL or less change 

in noise levels is barely perceptible to 

the human ear. No significant 

environmental impacts were identified 

for the other resources analyzed in the 

EA, including air quality, public health 

and safety, environmental justice, land 

use, biological resources, and cultural 

resources. Accordingly, the DoN 

announces to public the redesignation 

of the EIS as an EA for this action. 

With this redesignation of the EIS as 

an EA, the DoN is initiating a 30-day 

public review and comment period on 

the Draft EA beginning on August 16, 

2017 and ending on September 15, 

2017. The Draft EA is available at the 

following link: http://

www.oceanastrikefighter.com. A printed 

copy and an electronic copy of the Draft 

EA have also been placed in the 

following libraries: 

1. Great Neck Area Library, 1251 

Bayne Drive, Virginia Beach, Virginia 

23454. 

2. Meyera E. Oberndorf Central 

Library, 4100 Virginia Beach Boulevard, 

Virginia Beach, Virginia 23452. 

3. Oceanfront Area Library, 700 

Virginia Beach Boulevard, Virginia 

Beach, Virginia 23451. 

4. Princess Ann Area Library, 1444 

Nimmo Parkway, Virginia Beach, 

Virginia 23456. 

5. Wahab Public Law Library, 2425 

Nimmo Parkway, Judicial Center, Bldg 

10B, Virginia Beach, Virginia 23456. 

6. Windsor Wood Area Library, 3612 

South Plaza Trail, Virginia Beach, 

Virginia 23452. 

7. Chesapeake Central Library, 298 

Cedar Road, Chesapeake, Virginia 

23322. 

8. Greenbrier Library, 1214 Volvo 

Parkway, Chesapeake, Virginia 23320. 

The DoN will hold public meetings to 

inform the public and answer questions 

about the Draft EA and the proposed 

action as well as provide opportunities 

for the public to comment on the Draft 

EA. Federal, state, and local agencies 

and officials, Native American Indian 

Tribes and Nations, and interested 

organizations and individuals are 

encouraged to provide comments in 

person at the public meetings or in 

writing during the 30-day public review 

period. Two public meetings will be 

held from 5:00 p.m. to 7:00 p.m. on: 

1. Tuesday, August 29, 2017, at the 

Columbian Club, 1236 Prosperity Road, 

Virginia Beach, Virginia 23451. 

2. Wednesday, August 30, 2017, at the 

Hickory Ruritan Club, 2752 Battlefield 

Boulevard South, Chesapeake, Virginia 

23322. 

The public meetings will be open 

house sessions with informational 

poster stations. Members of the public 

will have the opportunity to ask 

questions of DoN representatives and 

subject matter experts. Attendees will 

also be able to provide verbal comments 

to a stenographer or submit written 

comments during the public meetings. 

In addition to participating in the public 

meetings, members of the public may 

submit comments via the U.S. Postal 

Service using the mailing address 

identified in the contact information 

later in this notice or electronically 

using the project Web site (http://

www.oceanastrikefighter.com). All 

comments made at the public meetings, 

or postmarked or received online by 

September 15, 2017, will become part of 

the public record and be considered in 

the Final EA. 

The DoN may release the city, state, 

and 5-digit zip code of individuals who 

provide comments during the Draft EA 

public review and comment period. 

However, the names, street addresses, 

email addresses and screen names, 

telephone numbers, or other personally 

identifiable information of those 

individuals will not be released by the 

DoN unless required by law. Prior to 

each commenter making verbal 

comments to the stenographer at the 

public meetings the commenter will be 

asked whether he or she agrees to a 

release of their personally identifiable 

information. Those commenters 

submitting written comments, either 

using comment forms or via the project 

Web site, will be asked whether they 

authorize release of personally 

identifiable information by checking a 

‘‘release’’ box. 

FOR FURTHER INFORMATION CONTACT: NAS 

Oceana Strike Fighter Transition EA 

Project Manager (Code EV21/TW); Naval 

Facilities Engineering Command 

Atlantic, 6506 Hampton Boulevard, 

Norfolk, Virginia 23508. 

Dated: August 7, 2017. 

A.M. Nichols, 

Lieutenant Commander, Judge Advocate 

General’s Corps, U.S. Navy, Federal Register 

Liaison Officer. 

[FR Doc. 2017–17142 Filed 8–14–17; 8:45 am] 

BILLING CODE 3810–FF–P 

DEPARTMENT OF ENERGY 

Western Area Power Administration 

2025 Power Marketing Plan 

AGENCY: Western Area Power 

Administration, DOE. 

ACTION: Notice of final plan. 

SUMMARY: The Department of Energy 

(DOE), Western Area Power 

Administration (WAPA), announces its 

final 2025 Power Marketing Plan 

(Marketing Plan) for the Sierra Nevada 

Region (SNR). On December 31, 2024, 

all of SNR’s long-term power sales 

contracts will expire. This notice 

responds to comments received on the 

Proposed 2025 Power Marketing Plan 

(Proposed Plan) and sets forth the 

Marketing Plan. The Marketing Plan 

specifies the terms and conditions 

under which WAPA will market power 

from the Central Valley Project (CVP) 

and the Washoe Project beginning 

January 1, 2025. This Marketing Plan 

supersedes all previous marketing plans 

for these projects. WAPA will offer new 

contracts for the sale of power to 

existing customers as more fully 

described in the Marketing Plan. 

Entities who wish to apply for a new 

allocation of power from WAPA, and 

who meet the criteria defined in the 

Marketing Plan, should submit formal 

applications. Application procedures 

will be set forth in the Call for 2025 

Resource Pool Applications in a 

separate Federal Register notice to be 

published after the Marketing Plan is 

applicable. 

DATES: The Marketing Plan will become 

applicable September 14, 2017 in order 

to make power allocations and complete 

the other processes necessary to begin 

providing services on January 1, 2025. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Sonja Anderson, Vice President of 

Power Marketing, Sierra Nevada 

Customer Service Region, Western Area 

Power Administration, 114 Parkshore 

Drive, Folsom, CA, 95630–4710, by 

email at sanderso@wapa.gov, or by 

telephone (916) 353–4421. Information 

on development of the Marketing Plan 

can be found at https://www.wapa.gov/ 

regions/SN/PowerMarketing/Pages/ 

2025-Program.aspx. 

SUPPLEMENTARY INFORMATION: 

Development of the 2025 Power 

Marketing Plan 

WAPA currently markets power from 

the CVP and the Washoe Project under 

long-term contracts to approximately 80 

preference customers in northern and 

central California and Nevada. On 

December 31, 2024, all of SNR’s longmstockstill on DSK30JT082PROD with NOTICES

38676 Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices 

term power sales contracts will expire. 

This notice sets forth WAPA’s 

Marketing Plan and responds to 

comments received on the Proposed 

Plan. The Marketing Plan specifies the 

terms and conditions under which 

WAPA will market power from CVP and 

the Washoe Project beginning January 1, 

2025. This Marketing Plan supersedes 

all previous marketing plans for these 

projects. 

CVP power facilities include 11 

powerplants with a maximum operating 

capability of about 2,113 megawatts 

(MW) and an estimated average annual 

generation of 4.6 million megawatthours 

(MWh). The Washoe Project, Stampede 

Powerplant has a maximum operating 

capability of 3.65 MW with an estimated 

annual generation of 10,000 MWh. 

To deliver CVP power, WAPA owns 

the 94 circuit-mile Malin-Round 

Mountain 500-kilovolt (kV) 

transmission line (an integral part of the 

Pacific AC Intertie (PACI)), the 84 

circuit-mile Los Banos-Gates No. 3 500- 

kV transmission line, 803 circuit miles 

of 230-kV transmission line, 7 circuit 

miles of 115-kV transmission line, and 

approximately 63 circuit miles of 69-kV 

and below transmission line. WAPA 

also has partial ownership in the 342- 

mile California-Oregon Transmission 

Project (COTP) 500-kV transmission 

line. Many of WAPA’s existing 

customers have no direct access to 

WAPA’s transmission lines and receive 

service over transmission lines owned 

by other utilities. The Washoe Project is 

not directly connected to the CVP. 

Sierra Pacific Power Company (SPPC) 

owns and operates the only 

transmission system available for access 

to the Washoe Project. 

The following table lists a range of 

estimated CVP and Washoe Project 

power resources and adjustments. This 

table is for informational purposes only 

and does not imply the power resources 

and adjustments shown will be the 

actual amounts available or adjustments 

applied. 

Estimated CVP power resources and adjustments prior to first preference entitlements and base resource allocations 

Power resources/adjustment Range/value 

Annual energy generation ............................................................................................................. 2,400,000–8,600,000 MWh. 

Monthly energy generation ............................................................................................................ 87,000–1,100,000 MWh. 

Monthly capacity ............................................................................................................................ 360–1,900 MW. 

Annual project use ........................................................................................................................ 334,000 MWh–1,670,000 MWh. 

Monthly project use ....................................................................................................................... 10,000–180,000 MWh. 

Monthly project use (on peak) ...................................................................................................... 30–360 MW. 

Monthly maintenance .................................................................................................................... 0–300 MW. 

Reserves—hydro ........................................................................................................................... minimum 5% of monthly capacity. 

CVP transmission and transformation losses from the generator bus to a 230–kV load bus ..... 1.6%. 

WAPA began developing the 

Marketing Plan with a series of three 

informal public information meetings. 

These meetings helped WAPA identify 

pertinent issues, including contract 

provisions and methodologies for 

creating resource pools. 

WAPA subsequently published its 

Proposed Plan (81 FR 27433, dated May 

6, 2016). WAPA held a public 

information forum on June 1, 2016, to 

present the Proposed Plan and answer 

questions. On July 12, 2016, WAPA held 

a public comment forum to accept 

verbal comments, and accepted written 

comments from the public through 

August 4, 2016. WAPA considered the 

comments received in developing the 

Marketing Plan. 

Responses to Comments Received on 

the Notice of Proposed Plan 

During the public consultation and 

comment period, WAPA received 13 

letters commenting on the Proposed 

Plan. In addition, six customers and 

interested stakeholder representatives 

commented during the July 12, 2016, 

public comment forum. In preparing the 

Marketing Plan, WAPA reviewed and 

considered all comments received 

during the public consultation and 

comment period. 

The following is a summary of the 

comments received during the 

consultation and comment period, and 

WAPA’s responses to those comments. 

Comments are grouped by subject and 

paraphrased for brevity. Specific 

comments are used for clarification 

where necessary. 

I. Marketing Plan Term 

Comment: All commenters supported 

the 30-year term; however, several 

stated without some additional 

balancing of the termination provisions 

and/or the rate procedures, the 

additional term could result in cost or 

risk exposure that negatively impacts 

Base Resource customers. Additionally, 

Base Resource customers will be 

exposed to increased risks due to the 

take-or-pay nature of the power 

contracts unless WAPA includes 

reduction and early termination 

provisions. 

Response: Please see WAPA’s 

response under Termination and 

Reduction Provisions for a response to 

the reduction and early termination 

portion of these comments. 

II. Marketable Resource—Base Resource 

Comment: Two commenters stated 

WAPA should explicitly define the Base 

Resource and list all applicable 

attributes including energy, capacity, 

ancillary services, reserves, 

transmission and environmental 

attributes. 

Response: WAPA has modified the 

definition of Base Resource in the 

Marketing Plan to clarify that power 

includes capacity and energy. 

Transmission is not an attribute of the 

Base Resource. It is the customers’ 

responsibility to secure any necessary 

transmission service; however, WAPA 

will provide transmission service to 

deliver the Base Resource on the CVP 

system. The definition continues to 

include ancillary services reserves, and 

environmental attributes. 

Comment: A commenter stated it 

understands that Project Use, First 

Preference, maintenance, reserves, and 

system and transmission losses are 

subtracted from the CVP generation 

prior to determining the Base Resource 

available. The commenter asked if there 

were any other existing or new 

obligations on the CVP resource that 

should be explicitly identified in the 

Marketing Plan. 

Response: At this time, there are no 

additional obligations on CVP power 

resources other than those listed. 

Comment: A commenter stated WAPA 

should determine the amount of Base 

Resource available in an equitable 

manner, and not by which balancing 

authority area the customers are located. 

WAPA can improve the equity by 

considering all aspects of its CVP 

portfolio of assets, including generation, 

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Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices 38677 

capacity, ancillaries, and transmission 

assets. 

Response: The Marketing Plan defines 

Base Resource and allocates Base 

Resource to each preference customer 

based on the preference customer’s 

percentage. WAPA does not consider a 

customer’s balancing authority area 

when determining the amount of Base 

Resource available. 

Comment: A commenter encouraged 

greater efforts by WAPA and the U.S. 

Department of the Interior, Bureau of 

Reclamation (Reclamation) to consider 

measures to increase the value and 

flexibility of the Base Resource. 

Response: WAPA will continue to 

work with Reclamation to maximize the 

value of the Base Resource. 

III. Marketable Resource—Custom 

Products 

Comment: Several commenters 

supported offering Custom Products. 

The commenters stated that WAPA’s 

commitment to explore requested 

Custom Products provides needed 

certainty and possible additional 

opportunities for customers to explore 

new uses for the Base Resource and 

transmission assets. The commenters 

further stated that WAPA’s process for 

establishing Custom Products involves 

appropriate customer input, and ensures 

that WAPA’s other customers may even 

benefit indirectly from the offering of 

Custom Products. The commenters also 

stated that Custom Products improve 

the value of the Base Resource to all 

customers. The customers support all 

costs incurred being paid by those 

customers contracting for such Custom 

Products. 

Response: WAPA will continue to 

offer Custom Products with all costs 

incurred paid by those customers 

contracting for those products and/or 

services. 

Comment: A commenter encouraged 

WAPA to identify the Custom Products 

being offered to customers, including 

the product terms and cost, and to 

increase the visibility and availability of 

the price and terms and conditions of 

Custom Products. The commenter 

suggested that WAPA provide periodic 

reports on the Custom Products used by 

preference customers, including data on 

prices, terms, and conditions for all 

products. 

Response: WAPA anticipates it will 

continue to offer Full Load, Variable 

Resource, and Scheduling Coordinator 

Services. WAPA is open to assisting 

customers with their electric service 

needs under a Custom Product contract 

if WAPA is able to do so. Custom 

Products will initially be offered for 5- 

year terms. The cost for such products 

and services will be on a pass-through 

basis. WAPA will not know what other 

products or services it may provide 

until those services are requested, nor 

will WAPA know the cost of any 

Custom Products until those services are 

determined, along with the number of 

customers participating in those 

services, and other relevant parameters. 

At such time as the pricing, terms and 

conditions related to Custom Products is 

no longer considered proprietary and/or 

market sensitive, WAPA may provide it 

upon request. 

Comment: A commenter asked WAPA 

to clarify how it will carry out the 

collaborative process to ensure all 

stakeholder perspectives are considered. 

Response: Custom Products are any 

product or service requested by an 

individual customer or group of 

customers. These products or services 

will be mutually negotiated between a 

specific customer or a specific group of 

customers and WAPA. 

Comment: A commenter stated that, 

to the extent the Custom Products 

offered reduce the value of the Base 

Resource to other preference customers 

by reducing the availability of 

electricity, capacity, reserves, ancillary 

services, transmission and/or 

environmental attributes, the 

beneficiary should pay for the value of 

the displaced Base Resource. WAPA 

should modify the Marketing Plan to 

clearly define the Custom Products that 

could reduce power and transmission 

available for Base Resource generation 

before all customers are asked to 

execute a contract in 2020. 

Response: Custom Products do not 

include the Base Resource or CVP 

generation. Custom Products are meant 

to enhance the Base Resource for those 

customers that may need additional 

services from WAPA to maximize the 

benefit from the Base Resource. WAPA 

provides transmission with the Base 

Resource; therefore, Custom Products do 

not affect the availability of 

transmission for Base Resource delivery. 

Comment: If WAPA is providing a 

service or facility for voltage support or 

some similar benefit to a specific entity, 

according to WAPA’s Open Access 

Transmission Tariff (OATT), the costs 

for such a project must be paid by that 

individual entity. If WAPA does not 

follow its own OATT and allocates 

these costs to other entities, these other 

entities must be authorized an off-ramp. 

Response: All costs associated with 

providing Custom Products are passed 

to those customers requesting Custom 

Products. If a Custom Product involves 

services under WAPA’s OATT, the 

customer will take and pay for those 

services under the OATT. 

IV. Exchange Program 

Comment: A commenter supported 

the hourly and seasonal exchange 

programs provided that they are 

administered and implemented fairly 

whereby all who can share in the 

benefits of Base Resource can do so 

without taking on additional burdens. 

Response: WAPA intends to develop 

the exchange program with input from 

the customers and the public to 

maximize the benefits and lessen any 

burdens associated with exchange 

program participation. The exchange 

program is an optional program. 

V. Extension of the Resource 

Comment: Several commenters 

support extending 98 percent of the 

Base Resource to existing customers. 

Response: WAPA will extend 98 

percent of the Base Resource to existing 

customers as specified in the Marketing 

Plan. 

Comment: A commenter stated WAPA 

should allow existing customers to take 

less than 98 percent of their current 

Base Resource percentage. 

Response: WAPA will allow an 

existing customer to reduce its base 

resource percentage allocation under 

this Marketing Plan with at least six 

months’ written notice to WAPA prior 

to January 1, 2025. 

Comment: A commenter supported 

limiting allocations to no more than 100 

percent of load, but suggested using 

consistent data to determine load 

between existing and new customers. 

Response: A customer should not 

have an allocation larger than its load. 

Reviewing a 5-year period of energy 

consumption for existing customers is 

appropriate so an existing customer is 

not unduly harmed due to unusual 

factors (drought, environmental 

impacts, etc.) that may affect their load 

for just one year. 

VI. Resource Pools 

Comment: Several commenters 

support creating the resource pools; the 

calculation methodology to create the 

resource pools; and the 2 and 1 percent 

resource pools in 2025 and 2040, 

respectively, which are sufficient to 

broaden the preference customer base 

without overly penalizing existing 

customers. 

Response: WAPA acknowledges the 

comment. 

Comment: Two commenters stated the 

Marketing Plan should have a provision 

to address how WAPA will manage 

returned allocations from customers that 

either do not opt for new power 

contracts or exercise early termination. 

A commenter recommends that 

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38678 Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices 

surrendered or excess allocations 

(where load exceeds allocations) be 

offered to existing customers on a pro 

rata basis. Another commenter supports 

returning all surrendered allocations to 

existing customers, even if that amount 

is beyond 2 percent. 

Response: The Marketing Plan states 

that surrendered allocations will be 

returned to existing customers on a pro 

rata basis, up to 100 percent of each 

existing customer’s pre-2025 

allocations. WAPA will not allocate 

Base Resource above an existing 

customer’s pre-2025 allocation unless 

that existing customer applies for an 

additional allocation because some 

existing customers may neither need nor 

want more Base Resource. Any Base 

Resource available after returning 

existing customers to 100 percent of 

their pre-2025 allocations will be 

included in the resource pool. Any Base 

Resource available from excess 

allocations, which WAPA believes will 

be minimal, will also be included in the 

resource pool. Existing customers 

interested in receiving additional Base 

Resource are encouraged to apply for a 

resource pool allocation. This same 

process will be used for the 2040 

resource pool. 

VII. Allocation Criteria 

Comment: A commenter stated the 

Northern California Power Agency 

members with small allocations due to 

prior withdrawals should receive at 

least equal consideration with Native 

American tribes. 

Response: WAPA will consider all 

applications received in response to the 

Calls for Applications. It is WAPA’s 

policy to provide assistance to Native 

American tribes consistent with 25 

U.S.C. 3505. 

Comment: A commenter stated that 

under the Proposed Plan, a new 

customer could potentially receive up to 

2 percent of the Base Resource in 2025 

if additional customers are not available 

to split the resource pool. The 

commenter stated that if there are not 

enough new customers to fully 

subscribe to the 2 percent offering, the 

remaining share of the Base Resource 

product that is not allocated to a new 

customer can then be distributed to 

existing customers. The commenter also 

stated that existing customers could still 

potentially receive less than 1 percent of 

the Base Resource if several existing 

customers sign up to receive a share of 

unsubscribed Base Resource in the 

resource pool for new customers. 

Response: WAPA has not determined 

how much Base Resource will be 

allocated to any allottee or group of 

allottees, which would include new 

allottees or increases in existing 

customers’ allocations. Existing 

customers may apply for additional 

Base Resource. 

Comment: A commenter said the 

allocation methodology states the 

allocation of Base Resource ‘‘will be 

based on applicant’s load during the 

calendar year prior to the Call for 

Applications or the amount requested, 

whichever is less.’’ The commenter 

advocated establishing this load ratio 

share benchmark to determine which 

existing customers’ Base Resource 

allocations exceed their load ratio share 

and subjecting only those excess 

allocations to the 2 percent reduction to 

establish the resource pool. Those 

existing customers whose Base Resource 

allocations fall below the benchmark 

would not be subject to the 2 percent 

reduction and would also be eligible for 

participation in the resource pool. 

Response: WAPA considered several 

different methodologies to create the 

Resource Pools, including reducing only 

a subset of existing customers’ 

allocations. After reviewing the 

comments received during informal 

stakeholder meetings, WAPA 

determined it would treat all customers 

equally by reducing the existing 

customers’ allocation by 2 percent and 

1 percent to create the 2025 and 2040 

Resource Pools, respectively. 

Comment: A commenter strongly 

encouraged development of minimum 

threshold criteria to ensure that the 

existing customers are not 

disadvantaged by the resource pool and 

that the resource value is not weakened 

or jeopardized by new customers. The 

commenter encouraged setting 

standards or carefully monitoring the 

resource pool process to ensure the 

resource is being used consistent with 

the project purposes. 

Response: The Marketing Plan sets 

forth the eligibility criteria necessary to 

be met to qualify for an allocation of 

Federal power. The criteria apply to 

both existing and new customers. All 

new and existing customers will execute 

the same electric service contract and 

are bound by the same terms and 

conditions. 

Comment: A commenter was 

concerned by the proposal to allow only 

those customers who have a load ratio 

share below 25 percent to receive 

additional allocations under the 

resource pool. The commenter 

understands the intent to avoid 

allocating additional Base Resource to 

entities who already have large 

allocations; however, the commenter 

stated the 25 percent threshold is 

somewhat arbitrary and that a set 

threshold neglects consideration of 

customers’ socio-economic conditions 

or technical issues. 

Response: In an informal public 

information meeting, WAPA proposed 

only existing customers whose 

allocation meets less than 25 percent of 

their load could apply for an additional 

allocation of Base Resource. Several 

stakeholders stated concerns with that 

proposal. Based on those concerns, the 

Marketing Plan does not contain a 

threshold. Any existing customer can 

apply for a resource pool allocation. 

VIII. General Criteria and Contract 

Principles 

Comment: Section V.B. states that 

‘‘Allocation percentages are subject to 

adjustment.’’ A commenter stated the 

circumstances of such an adjustment 

need to be specified so customers have 

an understanding of the nature of their 

commitment to an allocation. WAPA 

should clarify that Base Resource 

percentage adjustments will only be 

made in very limited circumstances, 

such as by customer termination or 

reduction, or when a customer no longer 

exists. 

Response: WAPA agrees there are 

limited circumstances when Base 

Resource percentages may be adjusted 

as defined by the Marketing Plan. For 

instance, existing customers’ Base 

Resource percentages may be increased 

if one or more existing customers reduce 

their Base Resource percentage or 

terminate their contracts prior to 2025. 

All customers’ Base Resource 

percentages will be reduced for the 2040 

Resource Pool. If it is determined that a 

customer has too large of an allocation, 

or is using the Base Resource for 

purposes other than serving its own 

load, that customer’s Base Resource 

percentage may be reduced or 

withdrawn. An assignment, or 

withdrawal of an assignment, also 

would cause an adjustment in a 

customer’s Base Resource percentage. 

Comment: Section V.I. states 

‘‘Contracts will include clauses 

specifying criteria that customers must 

meet on a continuous basis to be eligible 

to receive electric service from WAPA.’’ 

Two commenters stated if WAPA 

intends to include criteria in the 

contracts that differ from the criteria for 

eligibility for an allocation, then the 

nature of the intended ongoing criteria 

should be explained. WAPA should 

clarify the criteria a customer must 

continue to meet to remain a customer. 

Response: The eligibility criteria 

listed in the Marketing Plan will remain 

during the term of the Marketing Plan. 

However, other criteria may be required 

during the 30-year term to maintain 

flexibility and adapt to changes. Criteria 

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that a customer may need to meet will 

be included in contracts which can be 

modified as necessary to correspond 

with changes in the electric utility 

industry. 

Comment: A commenter asked what 

version of the General Power Contract 

Provisions (GPCP) will be attached to 

the new contracts. 

Response: The GPCP in effect at the 

time of the contract offer will be 

attached to the contracts for electric 

service. 

IX. Termination/Reduction 

Comment: Several commenters 

expressed interest in contract 

termination/Base Resource reduction. 

Commenters stated that to achieve 

balance for a 30-year take-or-pay 

obligation, the contract should include 

a reasonable termination or reduction 

provision. Commenters asserted that 

precedent for contract termination 

provisions within contracts has been set 

by Federal Energy Regulatory 

Commission (FERC)-approved 

transmission contracts. Due to the vague 

language in the GPCP, commenters 

stated that the Marketing Plan should 

clearly articulate customers’ ability to 

terminate or reduce their Base Resource 

percentages when rates are extended. 

Commenters asserted that the Marketing 

Plan should clarify a customer’s ability 

to terminate its contract under the 

GPCP. While the current GPCP provide 

for any customer, during a 90-day 

notification window, to terminate a 

contract following a rate change or 

formula rate extension, commenters 

recommended that a clear termination 

or allocation reduction provision be 

included in the body of the new 

agreement. Commenters asserted that 

there is clear precedent in major WAPA 

agreements for a reasonable termination 

notice provision. Commenters stated 

that specific language should be 

included in the body of the power 

contracts to allow a customer to reduce 

or terminate its allocation upon notice 

to WAPA, because GPCP termination 

triggered by rate change action is not 

sufficient risk protection for customers. 

Response: WAPA acknowledges a 30- 

year term for a contract is a significant 

commitment and understands the 

concern regarding the ability to 

terminate the contract. WAPA’s GPCP 

provide for customers to terminate 

service in the event of a change of rates. 

However, to address the commenters’ 

concerns, WAPA will exclude Section 

11 of the GPCP and, in collaboration 

with the customers, will clarify Section 

11 and insert it directly into the 

contract. 

Comment: Several commenters also 

stated the contracts should provide an 

exit clause at 5-year intervals during the 

term, after a change in the rates or terms 

of service, or after a significant 

regulatory change. According to the 

commenters, such a provision would 

provide protection for customers’ 

ratepayers. Without an undisputable 

termination provision, commenters 

asserted that a 30-year take-or-pay 

contract will be a difficult commitment 

to make in the current environment of 

low cost renewable resources relative to 

the highly uncertain resource 

availability and allocated costs 

associated with the Base Resource. 

Commenters stated that sufficient notice 

periods would give WAPA time to 

explore alternative means for marketing 

power. The commenters strongly 

recommended consideration of a 

process that allows customers to 

terminate or reduce their Base Resource 

percentages under prescribed 

conditions. Such conditions could 

include a requirement that customers 

attempt to reassign the Base Resource 

percentage; longer notice provisions; or 

other criteria that would provide a 

balance for all parties. Some of these 

commenters advocated an opportunity 

for customers, upon reasonable notice, 

to terminate or modify their Base 

Resource allocation, for any reason, 

every five years throughout the term of 

the contract. 

Response: As discussed above, WAPA 

will allow for termination as a result of 

a rate adjustment. WAPA anticipates 

electric utility industry changes and has 

provided for the ability to modify 

contracts in collaboration with 

customers in this Marketing Plan; 

therefore, WAPA does not believe an 

exit clause will be necessary in response 

to changes in the electric utility 

industry. Additionally, WAPA will use 

best efforts to assist customers that wish 

to reassign an allocation to the extent 

there are customers interested in 

additional allocations. 

Comment: A commenter advocated a 

process whereby those customers 

intending to terminate their Base 

Resource contracts make an offering to 

other remaining Base Resource 

customers prior to filing a notice to 

terminate the contract. This would 

allow the remaining Base Resource 

customers to elect the level of additional 

Base Resource product that they would 

want to take and provide an overall 

balance of certainty for the entire 

program. 

Response: If an existing customer 

surrenders some or all of its Base 

Resource percentage during a resource 

pool process, WAPA will first use that 

surrendered Base Resource percentage 

to return all existing customers up to 

their full Base Resource percentage prior 

to the resource pool reduction. Any 

remaining Base Resource percentage 

after all customers are returned to their 

full Base Resource percentage will be 

included in the resource pool. Outside 

of a resource pool period, if a customer 

were to surrender any or all of its Base 

Resource percentage, WAPA, at its 

discretion, will reallocate that Base 

Resource percentage. 

X. First Preference Entitlement and 

Allocation 

Comment: A commenter stated the 

Final Plan should state that any and all 

preference entities located within 

Calaveras County are eligible to join a 

joint powers authority (JPA) as members 

and receive power through such JPA, 

irrespective if any of those entities 

receive a Base Resource allocation. 

Response: Increasing Calaveras 

County’s first preference allocation to 

serve additional loads of other 

preference customers would circumvent 

the allocation process. Additionally, it 

would lower the amount of Base 

Resource available for all preference 

customers. 

XI. Transmission 

Comment: A commenter supported 

continued use of the CVP transmission 

for Base Resource deliveries. 

Response: Western acknowledges the 

comment. 

Comment: A commenter stated WAPA 

should work with customers to ensure 

transmission arrangements are 

completed to provide for delivery of 

power made available by the Marketing 

Plan. 

Response: WAPA will use best efforts 

to assist customers with their 

transmission arrangements. However, 

because WAPA does not own all the 

transmission and distribution necessary 

to serve all customers’ loads, obtaining 

the transmission and distribution 

service necessary for delivery of WAPA 

power is ultimately the customers’ 

responsibility. 

Comment: Several commenters 

support consideration of the PACI to aid 

and benefit the CVP. Commenters stated 

that WAPA’s transmission assets can be 

used to improve the economic benefit of 

the CVP to preference customers. 

Commenters also stated that WAPA 

should carefully manage and use all of 

its transmission assets to maximize and 

enhance economic and operational 

benefits to allow CVP costs to be 

minimized and benefits to be shared 

with preference customers. Commenters 

supported WAPA’s commitment to 

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make surplus transmission available to 

aid and benefit the CVP. Commenters 

encouraged WAPA to explore the best 

use of its surplus transmission, 

including the Path 15 transmission line, 

to minimize costs for the CVP while 

honoring its existing commitments. 

Response: Under WAPA’s OATT, 

WAPA is required to charge all 

customers the same rate it charges itself, 

unless there is a statutory exemption. 

The PACI legislation (16 U.S.C. 837g) 

provides that WAPA should sell the 

excess capacity at equitable rates. 

Operational control of Path 15 has been 

turned over to the California 

Independent System Operator (CAISO). 

WAPA will continue to examine ways 

to utilize the PACI to aid and benefit the 

CVP. 

XII. Changes in the Electric Utility 

Industry 

Comment: Numerous commenters 

support WAPA incorporating specific 

provisions to negotiate changes to 

contracts should changes in the electric 

industry/markets be significant enough 

that CVP transactions would need to be 

managed differently than might be 

articulated in the contracts. Commenters 

stated that this may be important in 

light of the significant changes that 

continue to impact the electric utility 

industry. Commenters further stated 

that the Marketing Plan needs to remain 

flexible due to the evolving power 

system, and that WAPA may need to reevaluate the products and services it 

offers to continue to provide power at 

the lowest possible rates consistent with 

sound business principles. Commenters 

requested that WAPA clarify that any 

changes will be done with mutual 

agreement by WAPA and the customers. 

Response: WAPA may need to reevaluate the manner in which it markets 

the resource due to changes in the 

electric market. Any contractual 

changes will be made via mutual 

consent through an amendment 

executed by both parties to the contract. 

XIII. Additional Comments 

Comment: A commenter stated that, 

in the Proposed 2025 Schedule, the onetime termination milestone should be 

removed and replaced with the 

opportunity to terminate or reduce the 

Base Resource percentage prior to 

contract start date. 

Response: WAPA has determined that 

a minimum of 6 months is needed to 

allow time to reallocate any returned 

allocations. Customers may reduce or 

return their allocations no later than 

July 1, 2024. 

Comment: A commenter asked what 

credit provisions will be applied to all 

customers. 

Response: WAPA’s standard credit 

provisions in effect at the time of 

contract execution will be applied to all 

customers. 

Comment: Numerous commenters 

stated the Marketing Plan should 

include a limiter that would cap power 

customers’ payments when power 

customers’ combined CVP power and 

Restoration Fund payments exceed the 

annual average of the North of Path 15 

market rate. A commenter strongly 

requested the Marketing Plan include a 

cap on costs that can be allocated to 

power customers under certain 

conditions to ensure the contract 

remains financially sustainable for 

customers and provides for a more 

proportionate allocation of costs 

between water and power customers. 

The commenters also stated that 

contracts should include a cap on power 

customers’ payments when CVP power, 

Restoration Fund payments, Twin 

Tunnel payment and all other fees in 

total exceed the annual average market 

price. Commenters further stated that 

Restoration Fund costs are more than a 

third of the total cost of the Base 

Resource. While customers indicated 

that they understand that WAPA’s cost 

recovery mechanisms for the CVP are 

based on the foundation of recovery for 

direct project costs through the power 

revenue requirement, they asked that 

WAPA explore further the Central 

Valley Project Improvement Act 

(CVPIA) costs that are being passed 

through by Reclamation before Plan 

implementation. Commenters stated 

that cost containment and cost certainty 

must be part of the equation so that Base 

Resource customers are able to better 

plan on power expenses and better 

justify budget impacts. If no significant 

benefits to power customers are 

associated with certain cost types, 

commenters argued that sound cost 

causation principles would suggest that 

those costs should not be passed on to 

power customers. Customers 

recommended that WAPA agree to 

suspend the collection of non-essential 

costs and projects when CVP generation 

levels are reduced, allowing Federal 

power to be assessed at rates equal or 

near alternative power costs. In the 

customers’ view, the GPCP alone would 

not give customers protection from the 

CVP cost impacts occurring because of 

continually increasing CVPIA 

Restoration Fund costs. Because WAPA 

rate actions establish total revenue 

requirements, and not per unit costs, 

customers believe that the GPCP do not 

protect customers from increasing per 

unit costs due to declining CVP power 

production. Lastly, customers argued 

that because WAPA rate actions 

establish total revenue requirements, 

and do not consider the value of CVP 

power generated, the GPCP do not 

protect customers from declining value 

of CVP production due to water 

management shifts to periods when 

power is less valuable. 

Response: WAPA will sell the Base 

Resource at a cost-based rate. WAPA is 

required to recover costs within a 

statutorily defined period. The public 

ratemaking process is separate from the 

development of, and allocation of power 

under, the Marketing Plan. WAPA 

encourages the public to participate in 

WAPA’s rate processes. Costs and 

availability will be more clearly 

identified by the time commitments are 

required for the Base Resource. 

Reclamation develops and implements 

the programs under the CVPIA, and 

determines the costs associated with its 

programs. WAPA is the billing agent for 

the Restoration Fund charges to the 

power customers and has no control 

over those costs; however, WAPA 

minimizes WAPA components of power 

costs to provide the best possible service 

at the lowest possible rates consistent 

with sound business principles. WAPA 

will continue to work with Reclamation 

and the customers on the CVPIA costs 

Reclamation is passing on to WAPA’s 

customers. 

Summary of Revisions to the Proposed 

Plan 

WAPA revised the Proposed Plan as 

a result of the comments received 

during the comment period and public 

forums. Additionally, changes have 

been made to more clearly define the 

intent, but not to alter the substance, of 

the original proposal. The revisions are 

summarized as follows: 

WAPA will exclude GPCP Section 11 

from the electric service contract and, 

instead, will include language in the 

electric service contract developed in 

collaboration with customers that 

clearly defines the customers’ ability to 

terminate their contracts after certain 

rate processes. 

The definition of Base Resource is 

modified to clarify that power includes 

both capacity and energy. Additionally, 

the word ‘‘forfeit’’ is being replaced 

with ‘‘surrender’’ to more accurately 

refer to a voluntary return of an 

allocation. 

In response to comments regarding 

the Custom Product, the definition of 

Custom Product is modified to clarify it 

does not include Base Resource and 

may not necessarily be supplemental 

power. 

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2025 Power Marketing Plan 

The Marketing Plan addresses: (1) The 

power to be marketed after December 

31, 2024, which is the termination date 

for all existing SNR electric service 

contracts; (2) the general terms and 

conditions under which the power will 

be marketed January 1, 2025, through 

December 31, 2054; and (3) the criteria 

to determine who will be eligible to 

receive allocations from the resource 

pools. 

WAPA will continue a collaborative 

process in implementing the terms set 

forth in this Marketing Plan. 

Within broad statutory guidelines, 

WAPA has discretion as to whom and 

under what terms it will contract for the 

sale of Federal power, as long as 

preference is accorded to statutorilydefined public bodies. WAPA markets 

power in a manner that will encourage 

the most widespread use at the lowest 

possible rates consistent with sound 

business principles. All products and 

services provided under this Marketing 

Plan will be subject to the operational 

requirements and constraints of the CVP 

and the Washoe Project, transmission 

availability, purchase power limitations, 

and Federal authorities. 

I. Acronyms and Definitions 

As used herein, the following 

acronyms and terms, whether singular 

or plural, capitalized or not capitalized, 

shall have the following meanings: 

Allocation An offer from WAPA to sell 

Federal power for a certain period of 

time, which will convert to a right to 

purchase after execution of a contract. 

Allocation Criteria Criteria used to 

determine the amount of energy 

allocated to allottees. 

Allottee A preference entity receiving 

an allocation percentage. 

Ancillary Services Those services 

necessary to support the transfer of 

electricity while maintaining reliable 

operation of the transmission 

provider’s transmission system in 

accordance with good utility practice. 

Ancillary services are generally 

defined by the North American 

Electric Reliability Corporation. 

Base Resource CVP and Washoe 

Project power (capacity and energy) 

output determined by WAPA to be 

available for marketing, including the 

environmental attributes, after 

meeting the requirements of project 

use and first preference customers, 

and any adjustments for maintenance, 

reserves, system losses, and certain 

ancillary services. 

Bill Crediting Contractual provisions 

whereby payments due to WAPA by 

a customer shall be paid by a 

customer to a third party when so 

directed by WAPA. 

Capacity The electrical capability of a 

generator, transformer, transmission 

circuit or other equipment. 

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. 

Contract Principles Provisions of the 

electric service contracts, including 

WAPA’s General Power Contract 

Provisions. 

Custom Product A combination of 

products and services which may be 

made available by WAPA per 

customer request. 

Customer An entity with a contract 

and receiving electric service from 

WAPA’s Sierra Nevada Region. 

Eligibility Criteria Conditions that 

must be met to qualify for an 

allocation. 

Energy Measured in terms of the work 

it is capable of doing over a period of 

time; electric energy is usually 

measured in kilowatthours or 

megawatthours. 

Firm A type of product and/or service 

that is available to a customer at the 

times it is required. 

First Preference Customer/Entity A 

preference customer and/or a 

preference entity (an entity qualified 

to use, but not using, preference 

power) within a county of origin 

(Trinity, Calaveras, and Tuolumne) as 

specified under the Trinity River 

Division Act (69 Stat. 719) and the 

New Melones Project provisions of 

the Flood Control Act of 1962 (76 

Stat. 1173, 1191–1192). 

General Power Contract Provisions 

(GPCP) Standard terms and 

conditions included in WAPA’s 

electric service contracts. 

Integrated Resource Plan (IRP) A 

process and framework within which 

the costs and benefits of both demand 

and supply-side resources are 

evaluated to develop the least total 

cost mix of utility resource options. 

Kilowatt (kW) A unit measuring the 

rate of production of electricity; one 

kilowatt equals one thousand watts. 

Marketing Plan WAPA’s final 2025 

Power Marketing Plan for the Sierra 

Nevada Region. 

Megawatt (MW) A unit measuring the 

rate of production of electricity; one 

megawatt equals one million watts. 

Net Billing Payments due to WAPA by 

a customer may be offset against 

payments due to that customer by 

WAPA. 

Power Capacity and energy. 

Preference The requirements of 

Reclamation Law that provide for 

preference in the sale of Federal 

power be given to certain entities, 

such as governments (state, Federal 

and Native American), municipalities 

and other public corporations or 

agencies, and cooperatives and other 

nonprofit organizations financed in 

whole or in part by loans made 

pursuant to the Rural Electrification 

Act of 1936 (See, e.g., Reclamation 

Project Act of 1939, Section 9(c), 43 

USC 485h(c)). 

Primary Marketing Area The area 

generally encompassing northern and 

central California extending from the 

Cascade Range to the Tehachapi 

Mountains and west-central Nevada. 

Project Use Power as defined by 

Reclamation Law and/or used to 

operate CVP and Washoe Project 

facilities. 

Reclamation Law Refers to a series of 

Federal laws with a lineage dating 

back to the late 1800s. Viewed as a 

whole, those laws create the 

framework under which WAPA 

markets power. 

Reimbursable Financing WAPA may 

purchase power or provide other 

services using reimbursable authority 

pursuant to the Economy Act, 31 USC 

1535. This is a funding mechanism 

used by Federal customers. 

Sierra Nevada Region (SNR) The 

Sierra Nevada Region of the Western 

Area Power Administration. 

Unbundled Electric service that is 

separated into its components and 

offered for sale with separate rates for 

each component. 

WAPA Western Area Power 

Administration, United States 

Department of Energy, a Federal 

power marketing administration 

responsible for marketing and 

transmitting Federal power pursuant 

to Reclamation Law and the DOE 

Organization Act (42 USC 7101, et 

seq.). 

Washoe Project A Federal water 

project located in the Lahontan Basin 

in west-central Nevada and eastcentral California. 

II. Base Resource 

The Base Resource, as defined in 

Section I., will include CVP and Washoe 

Project power. CVP generation will vary 

hourly, daily, monthly, and annually 

because it is subject to hydrological 

conditions and other constraints that 

may govern CVP operations. CVP 

generation must be adjusted for project 

use, first preference, maintenance, 

reserves, system losses, and certain 

ancillary services before the Base 

Resource is available for marketing. The 

Base Resource will be further adjusted 

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for transmission losses to the point of 

delivery. 

The U.S. Department of the Interior, 

Fish and Wildlife Service (F&WS), 

Lahontan National Fish Hatchery and 

Marble Bluff Fish Facility are project 

use loads of the Washoe Project and 

have first priority to those power 

resources. WAPA will continue to make 

every effort to provide the Washoe 

Project power resource to F&WS. The 

generation available after serving the 

F&WS needs will be marketed with the 

CVP power resources. The Washoe 

Project is subject to the same variability 

and constraints as the CVP. 

III. Products and Services 

WAPA will market its Base Resource 

alone or in combination with a Custom 

Product, which could include 

purchasing some level of firming power 

on behalf of all customers, a group of 

customers, or individual customers. All 

costs incurred by WAPA in providing 

additional services to customers will be 

paid by those customers using the 

services. The degree to which WAPA 

continues to purchase power will 

depend on customer requests and 

Federal authorities. 

Each allottee will be allocated a 

percentage of the Base Resource. All 

allottees will be required to commit to 

the Base Resource within 6 months of a 

contract offer. 

Upon request, WAPA may develop a 

Custom Product for any customer. A 

Custom Product may include any 

products or services mutually 

negotiated between WAPA and a 

customer. This may include firming 

and/or renewable power purchases, 

ancillary services, reserves, portfolio 

management services, scheduling 

coordinator services, etc. Commitments 

to purchase a Custom Product must be 

made by January 1, 2023, for a period 

of no less than 5 years of service, 

beginning January 1, 2025. Thereafter, 

the Custom Product will be offered for 

periods as determined by WAPA. All 

costs incurred by WAPA in providing 

Custom Product services to customers 

will be paid by those customers using 

the services. 

WAPA may, at its discretion, extend 

the commitment dates for the Base 

Resource and/or Custom Products. 

WAPA will manage an exchange 

program to allow all customers to fully 

and efficiently use their power 

allocations. Any power allocated by 

WAPA to a customer that cannot be 

used on a real-time basis due to that 

customer’s load profile will be offered 

under this program to other customers. 

The exchange program will be 

developed in collaboration with the 

customers. 

Any unused resources may be 

marketed for periods of time as 

determined by WAPA, and may be 

marketed outside the primary marketing 

area. Such sales may be to any entity 

(preference or non-preference), under 

any terms, conditions, rates, or charges 

determined solely by WAPA. 

IV. Resource Extensions and Resource 

Pool Allocations 

WAPA will initially provide 98 

percent of its available power resources 

to existing customers and establish a 

resource pool with the remaining power 

resources for new allocations. Starting 

on January 1, 2040, WAPA will reduce 

the then-existing customers’ allocations 

by 1 percent to develop the 2040 

resource pool. 

A. Extension for Existing Customers 

Starting January 1, 2025, existing 

customers will have a right to purchase 

98 percent of their current Base 

Resource percentage amount; except as 

provided below: 

1. In the event that an existing 

customer(s) surrenders some or all of its 

allocation prior to 2025, that percentage, 

up to 2 percent of the total Base 

Resource, will be returned to the 

existing customers on a pro rata basis. 

2. In January 2024, WAPA will 

compare all existing customers’ 

allocations to their loads. WAPA will 

use the average Base Resource MWh 

annual generation and the customers’ 

previous 5 years energy consumption to 

compare allocations to loads. No 

customer should have an allocation 

greater than its load. If, after the 

comparison, WAPA believes a 

customer(s) has an allocation greater 

than its load, WAPA will consult with 

the customer(s) to determine if the 

allocation is, in fact, larger than its load. 

If WAPA determines the allocation is 

too large, WAPA will reduce that 

customer(s) allocation to 98 percent of 

its load. 

3. Starting on January 1, 2040, WAPA 

will reduce all customers’ allocations, 

including 2025 Resource Pool 

customers, by an additional 1 percent to 

create the 2040 Resource Pool. WAPA 

will follow the steps listed in IV.A.1. 

and IV.A.2. in January 2039 when 

creating the 2040 Resource Pool. 

B. Resource Pool Allocations 

WAPA will establish a resource pool 

by reserving a portion of the power 

available after 2024 for allocation to 

eligible preference entities and existing 

customers. A second resource pool will 

be established for service starting on 

January 1, 2040. Allocations from the 

resource pools will be determined 

through a separate public process at a 

later date. 

1. Resource Pool Amount 

The 2025 Resource Pool will initially 

consist of 2 percent of the power 

resources available after 2024, and the 

2040 Resource Pool will initially consist 

of 1 percent of the power resources 

available after 2039. Should any Base 

Resource become available because of 

Sections IV.A.1., IV.A.2., or IV.A.3., 

above, WAPA will include the 

additional Base Resource in the 

appropriate resource pool. WAPA will, 

at its discretion, allocate a percentage of 

the resource pools to applicants that 

meet the Eligibility and Allocation 

Criteria. 

2. Eligibility Criteria 

WAPA will apply the following 

Eligibility Criteria to all applicants 

seeking a resource pool allocation under 

the Marketing Plan: 

a. Applicants must meet the 

preference requirements under Section 

9(c) of the Reclamation Project Act of 

1939 (43 U.S.C. 485h(c)(1)), as amended 

and supplemented. 

b. Applicants should be located 

within SNR’s primary marketing area 

(map of marketing area available upon 

request). If SNR’s power resources are 

not fully subscribed, WAPA may market 

its resource outside the primary 

marketing area. 

c. Applicants that require power for 

their own use must be ready, willing, 

and able to receive and use Federal 

power. 

d. Applicants that provide retail 

electric service must be ready, willing, 

and able to receive and use the Federal 

power to provide electric service to their 

customers, not for resale to others. 

e. Applicants must submit an 

application in response to the Call for 

Resource Pool Applications issued by 

WAPA in a separate Federal Register 

notice. The notice will include the 

deadline for receipt of those 

applications. 

f. Native American applicants must be 

a Native American tribe as defined in 

the Indian Self Determination Act of 

1975 (25 U.S.C. 5304). 

g. WAPA generally will not allocate 

power to applicants with loads of less 

than 1 MW; however, allocations to 

applicants with loads which are at least 

500 kilowatts may be considered, 

provided the loads can be aggregated 

with other allottees’ loads to schedule 

and deliver to a minimum load of 1 

MW. 

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3. Allocation Criteria 

The following Allocation Criteria will 

apply to all applicants receiving a 

resource pool allocation under the 

Marketing Plan: 

a. Allocations will be made in 

amounts as determined solely by WAPA 

in the exercise of its discretion under 

Reclamation Law and considered to be 

in the best interest of the U.S. 

Government. 

b. Allocations will be based on the 

applicant’s load during the calendar 

year prior to the Call for Applications or 

the amount requested, whichever is less. 

c. An allottee will have the right to 

purchase power from WAPA only upon 

the execution of an electric service 

contract between WAPA and the 

allottee, and satisfaction of all 

conditions in that contract. 

d. All customers, including those 

receiving an allocation from the 2025 

Resource Pool, will be subject to the 

2040 Resource Pool adjustment. 

e. Eligible Native American applicants 

will receive greater consideration for an 

allocation of up to 65 percent of their 

total energy load in the calendar year 

prior to the Call for Applications, as 

authorized by 25 U.S.C. 3505. 

V. General Criteria and Contract 

Principles 

The following criteria and contract 

principles apply to all contracts 

executed under the Marketing Plan, 

except that certain criteria may not 

apply to contracts for first preference 

customers (see Section VI.): 

A. Electric service contracts shall be 

executed within 6 months of a contract 

offer, unless otherwise agreed to in 

writing by WAPA. 

B. Allocation percentages shall be 

subject to adjustment. 

C. All power supplied by WAPA will 

be delivered pursuant to a scheduling 

arrangement. 

D. Customers will be required to pay 

for their percentage of the Base 

Resource, regardless of whether they 

can actually use the power. 

E. Customers must pay for all charges 

associated with the products and 

services provided, including charges 

associated with ancillary services, 

Custom Products, and transmission. 

Those charges will be passed on to the 

customer(s) contracting for the product 

or service. 

F. WAPA will develop rate schedules 

for services provided under the 

Marketing Plan. Such rates will be 

developed through a separate public 

process. 

G. Customers must pay all applicable 

rates and charges in the manner and 

within the time prescribed in the 

contract. 

H. A written commitment to the 

Custom Product will be required on or 

before January 1, 2023. WAPA may 

extend the final commitment dates for 

the Custom Product. 

I. Contracts will include clauses 

specifying criteria that customers must 

meet on a continuous basis to be eligible 

to receive electric service from WAPA. 

J. Upon request, WAPA may provide, 

or assist each new and existing 

customer in obtaining, transmission 

arrangements for delivery of power 

marketed under the Marketing Plan; 

nonetheless, each entity is ultimately 

responsible for obtaining its own 

delivery arrangements for its load. 

Transmission service over the CVP 

system will be provided in accordance 

with Section VII. of this Marketing Plan. 

K. Contracts shall provide for WAPA 

to furnish electric service beginning 

either January 1, 2025, or January 1, 

2040, and continuing through December 

31, 2054. 

L. Specific products and services may 

be provided for periods of time as 

agreed to in the electric service contract. 

M. Contracts shall incorporate 

WAPA’s standard provisions, policies 

and procedures for electric service 

contracts, integrated resource plans, and 

GPCP, as determined by WAPA. WAPA 

will exclude Section 11 of the GPCP 

from the electric service contracts and, 

instead, will include language 

developed in collaboration with the 

customers that clearly defines the 

customers’ ability to terminate their 

electric service contracts after certain 

rate processes. 

N. Contracts will include a clause that 

allows WAPA to reduce or rescind a 

customer’s allocation percentage, upon 

90 days’ notice, if WAPA determines 

that (1) the customer is not using this 

power to serve its own loads, except as 

otherwise specified in Section III.; or (2) 

the allocation amounts are consistently 

greater than the customer’s maximum 

load. 

O. Any power not under contract may 

be allocated at any time, at WAPA’s sole 

discretion, or sold as deemed 

appropriate by WAPA, consistent with 

Federal law. 

P. Contracts will include a clause 

providing for WAPA to adjust the 

customers’ allocation percentage for the 

2040 Resource Pool. 

Q. Contracts may include a clause 

providing for alternative funding 

arrangements, including Net Billing, Bill 

Crediting, Reimbursable Financing, and 

advance payment. 

VI. First Preference Entitlement and 

Allocation 

The Trinity River Division Act and 

the New Melones Project provisions of 

the Flood Control Act of 1962 (Acts) 

specify that contracts for the sale and 

delivery of the additional electric 

energy, available from the CVP power 

system as a result of the construction of 

the plants authorized by these Acts and 

their integration into the CVP system, 

shall be made in accordance with 

preferences expressed in Reclamation 

Laws. These Acts also provide that a 

first preference of up to 25 percent of 

the additional energy shall be given, 

under Reclamation Law, to preference 

customers in the counties of origin 

(Trinity, Tuolumne, and Calaveras), for 

use in those counties, who are ready, 

willing, and able to enter into contracts 

for the energy. 

WAPA will calculate and allocate the 

Maximum Entitlements of First 

Preference Customers (MEFPC), which 

is the maximum amount of energy 

available to first preference customers/ 

entities, in accordance with the 

following: 

A. The MEFPC will be calculated 

separately for the New Melones Project, 

Calaveras and Tuolumne Counties, and 

the Trinity River Division (TRD), Trinity 

County (first preference projects). To 

determine the 25 percent of additional 

energy made available to the CVP as a 

result of the construction of each of 

these projects, WAPA will use the 

average of the previous 20 years of 

historical annual generation. The TRD 

MEFPC includes generation from 

Trinity, Carr, and Spring Creek 

Powerplants and a portion of the 

Keswick Powerplant generation. Based 

on the most current information 

available, this calculation results in an 

estimated MEFPC of 122,800 MWh 

available from the New Melones Project, 

and an estimated MEFPC of 361,500 

MWh available from the TRD. WAPA 

will calculate the MEFPC on June 1, 

2024, to be applicable January 1, 2025. 

WAPA will recalculate the MEFPC 

every 5 years thereafter. 

B. Upon recalculation, if the MEFPC 

from a first preference project is 10 

percent above or below the currently 

applicable MEFPC from that first 

preference project, the MEFPC will be 

adjusted to reflect that increase or 

decrease. WAPA will notify affected 

first preference customers at least 6 

months before making an adjustment to 

the MEFPC. If recalculation reduces the 

MEFPC to an amount less than the load 

previously served, WAPA may, upon 

request and at its discretion, make 

purchases necessary to replace that 

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38684 Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices 

amount of power no longer available. 

The costs for all such purchases made 

on behalf of a first preference customer 

will be passed on to that first preference 

customer. 

C. An allocation made to a first 

preference customer/entity under the 

Marketing Plan will be based on the 

power requirements of that first 

preference customer/entity. The sum of 

allocations of first preference power, 

including losses, shall not exceed the 

MEFPC from each first preference 

project, or a county of origin’s share of 

the MEFPC, except as allowed under 

Section VI.G. below. 

D. WAPA will provide full 

requirements service as described below 

to first preference customers. The first 

preference customer will be responsible 

for transformation and transmission 

losses to the first preference customer 

delivery point. Transmission losses 

shall include losses for CVP 

transmission and third-party 

transmission. 

WAPA will provide the first 

preference customer with its full power 

requirements (capacity and energy) up 

to its right to the MEFPC at the Base 

Resource rate. If there is more than one 

first preference customer in a county of 

origin, or a first preference entity in that 

county makes a request for power, 

WAPA reserves the right to establish a 

maximum amount of power available to 

each first preference customer from the 

MEFPC. Payment for full requirements 

service will be based on usage. 

E. A first preference entity may 

exercise its right to use a portion of the 

MEFPC by providing written notice to 

WAPA at least 18 months prior to the 

anniversary date of the first preference 

project located in its county. The 

anniversary date is the successive fifth 

year anniversary of the date the 

Secretary of the Interior declared the 

availability of power from the 

powerplants in the counties of origin. 

New applications for service to begin on 

January 1, 2025, must be received 18 

months prior to January 1, 2022 (i.e., 

July 1, 2020), for Trinity County and 18 

months prior to April 5, 2022 (i.e., 

October 5, 2020), for Calaveras and 

Tuolumne Counties. Other anniversary 

years applicable to this Marketing Plan 

are 2027, 2032, 2037, 2042, 2047, and 

2052. 

F. If the request of a first preference 

customer/entity for power, including 

adjustment for losses, is greater than the 

remaining MEFPC from that county’s 

first preference project, then WAPA will 

allocate the remaining MEFPC to the 

first preference customer/entity first 

making a request for a power allocation 

or a justified increase in its allocation 

percentage. 

G. Power allocated to first preference 

customers/entities in Tuolumne and 

Calaveras Counties will be subject to the 

following additional conditions: 

1. Tuolumne and Calaveras Counties 

shall each be entitled to one-half of the 

New Melones Project MEFPC. 

2. If first preference customers in 

either Tuolumne County or Calaveras 

County are not using their county’s full 

one-half share, and a first preference 

customer/entity in the other county 

requests power in an amount exceeding 

that county’s one-half share, then 

WAPA will allocate the unused power, 

on a withdrawable basis, to the 

requesting first preference customer/ 

entity. Such power may be withdrawn 

for use by a first preference customer/ 

entity in the county not using its full 

one-half share upon 6 months’ written 

notice from WAPA. 

H. Trinity Public Utilities District is 

currently the sole recipient of the TRD’s 

first preference rights. 

I. Transmission service will be 

provided in accordance with applicable 

laws and Section VII. of this Marketing 

Plan. 

J. For planning purposes, first 

preference customers may be required to 

provide forecasts and other information 

required by WAPA as set forth in the 

electric service contract. 

K. The general criteria and contract 

principles set forth in Sections V.A., C. 

through I., K., M., and O. of this 

Marketing Plan will apply to first 

preference customers. 

VII. Transmission Service 

Allottees and customers must secure 

necessary transmission service to 

deliver Federal power. WAPA will 

provide transmission service to deliver 

the Base Resource over the CVP 

transmission system. WAPA will work 

with allottees and customers to secure 

bundled or unbundled transmission 

services as appropriate beyond its CVP 

transmission system in conjunction 

with its power sales in a manner 

consistent with FERC orders, legislated 

mandates, or CAISO agreements. While 

WAPA will work with allottees and 

customers, it is the allottees’ and 

customers’ obligations to secure all 

necessary transmission service. 

Generally, WAPA will market surplus 

transmission capacity on the CVP and 

COTP available under WAPA’s OATT. 

The legislation authorizing the PACI (16 

U.S.C. 837g) provides for the Secretary 

of Energy to market surplus available 

transmission capacity on the PACI at 

equitable rates to aid and benefit the 

CVP. WAPA will determine the use of 

its transmission resources concurrently 

with further development of the 

products and services under this 

Marketing Plan. Specific terms and 

conditions for surplus transmission 

sales will be provided for in future 

service agreements. WAPA will develop 

transmission rates under a separate 

proceeding. 

VIII. Changes in the Electric Utility 

Industry 

WAPA recognizes that there have 

been, and continue to be, significant 

changes in the electric utility industry. 

To address this concern, WAPA, in 

collaboration with its customers, will 

include the ability to make changes in 

how the Federal resource is marketed if 

there is deemed a benefit to WAPA and 

its customers. Any changes 

implemented would be done through 

negotiation and revision to individual 

customer contracts. 

Authorities 

WAPA developed this Marketing Plan 

in accordance with its power marketing 

authorities pursuant to the Department 

of Energy Organization Act (42 U.S.C. 

7101, et seq.); the Reclamation Act of 

June 17, 1902 (ch. 1093, 32 Stat. 388), 

as amended and supplemented by 

subsequent enactments, particularly 

Section 9(c) of the Reclamation Project 

Act of 1939 (43 U.S.C. 485h(c)); and 

other acts specifically applicable to the 

projects involved. 

Regulatory Procedure Requirements 

Review Under the Paperwork Reduction 

Act 

In accordance with the Paperwork 

Reduction Act of 1980 (44 U.S.C. 3501, 

et seq.), WAPA has received approval 

from the Office of Management and 

Budget for the collection of customer 

information in this rule, under control 

number 1910–5136, which expires on 

September 30, 2017. 

Regulatory Flexibility Analysis 

The Regulatory Flexibility Act of 1980 

(5 U.S.C. 601, et seq.) requires 

preparation of an initial regulatory 

flexibility analysis whenever an agency 

is required by 5 U.S.C. 553, or any other 

law, to publish general notice of 

proposed rulemaking for any proposed 

rule. A final regulatory flexibility 

analysis is required whenever the 

agency promulgates a final rule under 5 

U.S.C. 553, after being required by that 

section or any other law to publish a 

general notice of proposed rulemaking. 

WAPA has determined that the 

analytical requirements of the 

Regulatory Flexibility Act do not apply 

to this rulemaking because it is a 

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Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices 38685 

rulemaking involving services 

applicable to public property. 

Environmental Compliance 

In compliance with the National 

Environmental Policy Act (NEPA) (42 

U.S.C. 4321–4370), Council on 

Environmental Quality NEPA 

implementing regulations (40 CFR parts 

1500–1508), and DOE NEPA 

implementing regulations (10 CFR part 

1021), WAPA completed a Categorical 

Exclusion (CX). Since WAPA is 

reallocating its existing resources and is 

not planning to increase its generation 

or transmission under this Marketing 

Plan, a CX is the appropriate level of 

environmental review. 

Determination Under Executive Order 

12866 

WAPA has an exemption from 

centralized regulatory review under 

Executive Order 12866; accordingly, no 

clearance of this Federal Register notice 

by the Office of Management and 

Budget is required. 

Dated: July 6, 2017. 

Mark A. Gabriel, 

Administrator. 

[FR Doc. 2017–17210 Filed 8–14–17; 8:45 am] 

BILLING CODE 6450–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

[EPA–HQ–OLEM–2017–0458; FRL–9966– 

52–OLEM] 

Release of Interim Final Guidance for 

State Coal Combustion Residuals 

Permit Programs; Comment Request 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Notice of availability; request 

for comment. 

SUMMARY: The Environmental Protection 

Agency (EPA) is announcing the 

availability of and requests comment on 

a document titled Coal Combustion 

Residuals State Permit Program 

Guidance Document; Interim Final. As a 

result of the Water Infrastructure 

Improvements for the Nation (WIIN) Act 

signed by the President on December 16, 

2016, States may submit coal 

combustion residuals (CCR) programs to 

EPA for review and approval. This 

document describes EPA’s 

interpretations of the WIIN Act 

provisions and the way in which EPA 

generally intends to review State 

programs. 

DATES: Comments must be received on 

or before September 14, 2017. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–HQ– 

OLEM–2017–0458; Title: Coal 

Combustion Residuals (CCR) State 

Permit Program Guidance Document 

(Interim Final) at http://

www.regulations.gov. Follow the online 

instructions for submitting comments. 

Once submitted, comments cannot be 

edited or removed from Regulations.gov. 

The EPA may publish any comment 

received to its public docket. Do not 

submit electronically any information 

you consider to be Confidential 

Business Information (CBI) or other 

information whose disclosure is 

restricted by statute Multimedia 

submissions (audio, video, etc.) must be 

accompanied by a written comment. 

The written comment is considered the 

official comment and should include 

discussion of all points you wish to 

make. EPA will generally not consider 

comments or comment contents located 

outside of the primary submission (i.e., 

on the web, cloud or other file sharing 

system). For additional submission 

methods, the full EPA public comment 

policy, information about CBI or 

multimedia submissions, and general 

guidance on making effective 

comments, please visit http://

www.epa.gov/dockets/commenting-epadockets. 

FOR FURTHER INFORMATION CONTACT: 

Mary Jackson, Materials Recovery and 

Waste Management Division, Office of 

Resource Conservation and Recovery 

(5304P), Environmental Protection 

Agency, 1200 Pennsylvania Avenue 

NW., Washington, DC 20460; telephone 

number: (703) 308–8453; email address: 

jackson.mary@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 2301 of the Water 

Infrastructure Improvements for the 

Nation Act (WIIN) Act amended the 

Resource Conservation and Recovery 

Act to allow States to submit and EPA 

to approve State permit (or other system 

of prior approval and conditions) 

programs for CCR. 

Coal Combustion Residuals State 

Permit Program Guidance Document; 

Interim Final is designed to provide 

information about the provisions of the 

2016 WIIN Act, related to CCR, as well 

as the process and procedures EPA 

generally intends to use to review and 

make determinations on State CCR 

Permit Programs. The purpose of this 

document is to provide States guidance 

for developing and submitting a State 

CCR Permit Program for EPA approval. 

The document has four (4) chapters. 

The first two are in the form of 

questions and answers. The first chapter 

provides an overview of the provisions 

of the WIIN Act. The second chapter 

contains the process and procedures 

EPA is currently planning to use to 

review and make determinations on 

State CCR programs, as well as the 

documentation EPA generally expects to 

request from States seeking approval of 

a program. The third and fourth 

chapters consist of checklists to aid the 

States as they are considering and 

developing their program submittals. 

Chapter 3 contains a checklist of all the 

requirements of the current CCR rule at 

40 CFR part 257 subpart D. Chapter 4 

provides a checklist of those items EPA 

generally expects a State would submit 

when seeking approval of its CCR 

program. 

This guidance describes EPA’s 

statutory interpretations and the way in 

which EPA generally intends to review 

State programs. As such, EPA 

encourages States to consult this interim 

final guidance and to use it as a 

technical resource as they develop and 

submit State CCR Permit programs to 

EPA for review and approval. As 

provided by Section 2301 of the WIIN 

Act, EPA must provide public notice 

and an opportunity for comment prior 

to approval of a State program by EPA. 

Thus, EPA’s review and approval of a 

State program will be a separate process 

from this action that will provide for 

public notice and opportunity for 

comment on each State program. 

The information and procedures in 

the document are intended as a 

technical resource to States that may be 

useful in developing and submitting a 

State CCRs Permit Program to EPA for 

approval. This Guidance does not 

constitute rulemaking by the Agency, 

and cannot be relied on to create a 

substantive or procedural right 

enforceable by any party in litigation 

with the United States. As indicated by 

the use of non-mandatory language such 

as ‘‘may’’ and ‘‘should,’’ it only provides 

recommendations and does not impose 

any legally binding requirements. 

The guidance document can be found 

in the docket (Docket ID No. EPA–HQ– 

OLEM–2017–0458; Title: Coal 

Combustion Residuals (CCR) State 

Permit Program Guidance Document 

(Interim Final)) at http://

www.regulations.gov. In addition, a 

copy of the guidance document and 

additional resources on CCR can also be 

found on EPA’s Web site: www.epa.gov/ 

coalash. 

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