96-31064. National Environmental Policy Act Implementing Procedures  

  • [Federal Register Volume 61, Number 236 (Friday, December 6, 1996)]
    [Rules and Regulations]
    [Pages 64603-64609]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-31064]
    
    
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    DEPARTMENT OF ENERGY
    
    10 CFR Part 1021
    
    RIN 1901-AA67
    
    
    National Environmental Policy Act Implementing Procedures
    
    AGENCY: Department of Energy.
    
    
    [[Page 64604]]
    
    
    ACTION: Final rule.
    
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    SUMMARY: The Department of Energy (DOE or the Department) is amending 
    its regulations governing compliance with the National Environmental 
    Policy Act (NEPA). These amendments incorporate changes primarily 
    related to DOE's power marketing activities, based on DOE's experience 
    in applying the current NEPA regulations. The revised regulations are 
    intended to improve DOE's efficiency in implementing NEPA requirements 
    by reducing costs and preparation time, while maintaining quality, 
    consistent with the DOE Secretarial Policy Statement on NEPA issued in 
    June 1994.
    
    EFFECTIVE DATE: This rule will become effective January 6, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Carol Borgstrom, Director, Office of 
    NEPA Policy and Assistance, EH-42, U.S. Department of Energy, 1000 
    Independence Avenue, SW., Washington, DC 20585-0119, (202) 586-4600 or 
    leave a message at (800) 472-2756.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        The National Environmental Policy Act of 1969 (42 USC 4321 et seq.) 
    requires that Federal agencies prepare environmental impact statements 
    for major Federal actions that may ``significantly affect the quality 
    of the human environment.'' NEPA also created the President's Council 
    on Environmental Quality (CEQ), which issued regulations in 1978 
    implementing the procedural provisions of NEPA. Among other 
    requirements, the CEQ NEPA regulations (40 CFR Parts 1500-1508) require 
    Federal agencies to adopt their own implementing procedures to 
    supplement the Council's regulations. DOE's NEPA implementing 
    regulations were promulgated in 1992 (57 FR 15122, April 24, 1992) and 
    are codified at 10 CFR Part 1021.
        On February 20, 1996, DOE published a proposed rulemaking to revise 
    the 1992 NEPA implementing regulations (61 FR 6414). Publication of the 
    Notice of Proposed Rulemaking began a 45-day public comment period that 
    originally ended on April 5, 1996. In response to requests, the comment 
    period was subsequently reopened on April 19, 1996 (61 FR 17257), and 
    extended until May 10, 1996. As part of the notice and comment process 
    and also in response to requests, DOE held a public hearing on the 
    proposed amendments on May 6, 1996. The final rule on all of the 
    proposed amendments, other than those that pertain to power marketing 
    activities, was published on July 9, 1996 (61 FR 36222). Regarding the 
    power marketing activities, DOE decided to solicit further input, 
    especially from state and Federal agencies that have responsibility for 
    environmental review of comparable non-federal utility projects in the 
    Pacific Northwest. Therefore, in the same issue of the Federal Register 
    as noted above (July 9, 1996), DOE published a notice of limited 
    reopening of the comment period on the following proposed amendments to 
    Subpart D--Typical Classes of Actions, which primarily affect power 
    marketing activities: B4.1-B4.3, B4.6, B4.10-B4.13, C4, C7, and D7 (61 
    FR 35990). In response to a request, DOE also provided further 
    clarification of the rationale for two of the proposed amendments: 
    B4.1, Contracts/marketing plans/policies for excess electric power, and 
    B4.3, Electric power marketing rate changes. The comment period was 
    extended until August 8, 1996.
        Copies of all written comments and the transcript of the public 
    hearing held on May 6, 1996, have been provided to CEQ and are 
    available for public inspection at the DOE Freedom of Information 
    Reading Room, Room 1E-190, Forrestal Building, 1000 Independence 
    Avenue, SW., Washington, DC 20585, (202) 586-6020.
        The following amendments relating primarily to power marketing 
    activities revise subpart D of the existing regulations by expanding or 
    clarifying existing classes of actions. This final rule adopts the 
    amendments proposed in the Notice of Proposed Rulemaking for the power 
    marketing classes of actions listed above, with certain changes 
    discussed below, and amends the existing regulations at 10 CFR Part 
    1021. Copies of the final amendments to the rule are available upon 
    request from the information contact listed above.
        In accordance with the CEQ NEPA regulations, 40 CFR 1507.3, DOE has 
    consulted with CEQ regarding these final amendments to the DOE NEPA 
    rule. CEQ has found that the amendments conform with NEPA and the CEQ 
    regulations and has no objection to their promulgation.
    
    II. Statement of Purpose
    
        The amendments to the DOE NEPA regulations are intended to improve 
    the efficiency of DOE's implementation of NEPA by expanding or 
    clarifying certain classes of actions, primarily related to power 
    marketing activities, thereby reducing implementation costs and time. 
    This goal is consistent with the DOE Secretarial Policy Statement on 
    NEPA (June 1994), which encourages actions to streamline the NEPA 
    process without sacrificing quality and to make the process more useful 
    to decision makers and the public. Full compliance with the letter and 
    spirit of NEPA is an essential priority for DOE. In addition, DOE's 
    experience in applying the DOE NEPA regulations since they were issued 
    in 1992 suggested the need for DOE to make changes to its NEPA 
    regulations.
    
    III. Comments Received and DOE's Responses
    
        DOE has considered and evaluated the comments on the proposed 
    rulemaking concerning power marketing activities received during the 
    public comment periods. Minor revisions suggested in these comments 
    have been incorporated into the final amendments to the rule. The 
    following discussion describes the comments received, provides DOE's 
    responses to the comments, and describes any resulting changes to the 
    proposed amendments. Section references and headings below are 
    identical to those in the proposed amendments.
    
    A. Procedural Comments
    
        One commenter requested that no action be taken to adopt any of the 
    proposed power marketing administration amendments until additional 
    information could be obtained from relevant state and Federal agencies 
    (e.g., state environmental review procedures for comparable non-federal 
    utility projects). In response, the final rule published on July 9, 
    1996 (61 FR 36222) excluded the proposed amendments pertaining 
    primarily to power marketing activities, and the comment period for the 
    proposed amendments pertaining to power marketing activities was 
    reopened from July 9, 1996 through August 8, 1996 (61 FR 35990, July 9, 
    1996). As explained below, DOE received one set of new comments during 
    this reopened comment period.
    
    B. Comments on Appendices of Subpart D--Typical Classes of Actions
    
        Two commenters objected to several categorical exclusions (B4.1, 
    B4.10-B4.13) on the grounds of cumulative effects, connected actions, 
    or extraordinary circumstances. Another commenter objected to a number 
    of categorical exclusions (B4.1, B4.2, B4.6, B4.10-B4.13) on the 
    grounds that they appear to expand substantially the universe of power 
    marketing administration actions that would no longer require an 
    environmental impact statement or perhaps an environmental assessment.
    
    [[Page 64605]]
    
        Under the current regulations, before a proposed action may be 
    categorically excluded, DOE must determine in accordance with 
    Sec. 1021.410(b) that: (1) The proposed action fits within a class of 
    actions listed in appendix A or B to subpart D; (2) there are no 
    extraordinary circumstances related to the proposal that may affect the 
    significance of the environmental effects of the action; and (3) there 
    are no connected or related actions with cumulatively significant 
    impacts and, where appropriate, the proposed action is a permissible 
    interim action. In addition, to fit within a class of actions that is 
    normally categorically excluded under appendix B, a proposed action 
    must include certain integral elements (appendix B, paragraphs B(1) 
    through (4)). These conditions are intended to ensure that an excluded 
    action will not threaten a violation of applicable requirements, 
    require siting and construction of waste management facilities, disturb 
    hazardous substances such that there would be uncontrolled or 
    unpermitted releases, or adversely affect environmentally sensitive 
    resources. DOE believes that the general restrictions on the 
    application of categorical exclusions will provide adequate safeguards 
    to ensure that they are not applied to activities that could result in 
    significant effects. For actions that do not satisfy these conditions, 
    an environmental impact statement or an environmental assessment would 
    be prepared. DOE believes that it will serve environmental concerns and 
    the public's interest best by focusing its efforts on the careful 
    analysis of those actions that actually have the potential for 
    significant impact.
        Finally, after considering all public comments on the proposed 
    amendments, DOE has determined that the final amendments to appendix B 
    constitute classes of actions that do not individually or cumulatively 
    have a significant effect on the human environment, and are covered by 
    a finding to that effect in Section 1021.410(a). In making this 
    finding, DOE has considered, among other things, its own experience 
    with these classes of actions, other agencies' experience as reflected 
    in their NEPA procedures, DOE's technical judgment, and the comments 
    received on the proposed amendments.
    
    Classes of Actions Listed in Appendix B
    
         Proposed Clarification B4.1--Contracts/marketing plans/
    policies for excess electric power.
        One commenter requested explanation of the rationale for the 
    proposed clarification of B4.1. The existing categorical exclusion is 
    for the establishment and implementation of contracts, plans, and 
    policies, the terms of which do not exceed five years, would not cause 
    changes in normal operating limits, and any related transmission would 
    occur over existing transmission systems. The existing five-year term 
    limit was proposed for elimination from this categorical exclusion 
    because experience has demonstrated that the mere length of a contract, 
    policy, or plan does not have the potential for environmental impacts. 
    Rather, the development or integration of new generating resources, 
    changes in the operation of existing generation resources, or 
    construction of transmission facilities, are the types of activities 
    that have shown the potential for environmental impacts. By not 
    including these changes in generation, operation or transmission, the 
    categorical exclusion ensures that only those actions that have no 
    potential for environmental impact would be categorically excluded. 
    Those contracts, plans, and policies that do not fit within this 
    categorical exclusion would require further NEPA analysis to ascertain 
    the associated environmental impacts.
         Proposed Modification B4.2--Export of electric energy.
        DOE proposed to modify the existing categorical exclusion for the 
    export of electric energy over existing transmission systems to also 
    apply to exports over transmission system changes that are themselves 
    categorically excluded (e.g., short powerline segments, substations). 
    One commenter stated that DOE should consider the social and economic 
    impacts on U.S. utility ratepayers caused by selling power to foreign 
    countries. DOE believes that the potential for physical impacts of such 
    a proposed action are very slight and notes that socioeconomic impacts 
    alone do not require the preparation of an environmental impact 
    statement (40 CFR 1508.14).
         Proposed Modification B4.3--Electric power marketing rate 
    changes.
        The proposed modification would eliminate the existing restriction 
    that, in order to be categorically excluded, a proposed rate change 
    must not exceed the rate of inflation, a condition that DOE has found 
    is not relevant to the action's potential for environmental impacts. 
    Any environmental impacts resulting from rate changes would be caused 
    only if the rate change involved associated changes in the operation of 
    generation resources. Therefore, this categorical exclusion would only 
    apply to those rate changes that would not affect the operation of 
    generation projects. The term ``changes in rates,'' as in the proposed 
    rule, was changed to ``rate changes'' to be consistent with C3.
        One commenter expressed concern regarding the economic impact to 
    domestic utility customers of allowing electric power marketing rate 
    changes to be raised more than the rate of inflation, and of the 
    unrestrained sale of electricity to the highest bidder, whether foreign 
    or domestic. Federal Power Marketing Administrations market their power 
    resources at cost. Existing law prevents Federal electric power from 
    being sold at a profit, and further prohibits customers from reselling 
    Federal power for profit. Federal Power Marketing Administrations are 
    not allowed to sell power to the highest bidder, but rather must 
    recover all costs associated with the power. DOE believes that there is 
    no potential for environmental impacts from rate changes based on 
    revenue requirements where, as the categorical exclusion requires, the 
    operations of generation projects would remain within normal operating 
    limits.
         Proposed Modification B4.10--Deactivation, dismantling and 
    removal of electric powerlines and substations.
        DOE proposed to add deactivation to the categorical exclusion for 
    dismantling and removal of transmission lines and to add substations, 
    switching stations and other transmission facilities. One commenter 
    suggested that this categorical exclusion applies to deactivation of 
    power plants and that such actions should include public participation. 
    Deactivation under this categorical exclusion, however, would not apply 
    to power plants, but only to transmission facilities.
         Proposed Modification B4.11--Construction or modification 
    of electric power substations.
         Proposed Modification B4.12--Construction of electric 
    powerlines (generally less than 10 miles in length), not integrating 
    major new sources.
         Proposed Modification B4.13--Reconstruction and minor 
    relocation of existing electric powerlines (generally less than 20 
    miles in length).
        The proposed amendments include: (1) expanding categorically 
    excluded modification activities to substations of any voltage, 
    provided that the modification does not increase the existing voltage 
    (B4.11); (2) expanding the construction of tap lines to include all 
    electric powerlines not integrating major new sources (B4.12); and (3) 
    increasing the length of powerlines that can be reconstructed from 10 
    miles to 20 miles (B4.13).
        One commenter noted correctly that the word ``generally'' as 
    applied to the
    
    [[Page 64606]]
    
    length of electric powerlines in proposed modifications to B4.11 could 
    allow the class of actions to be applied to proposed actions that would 
    otherwise not even approximately fit the definition. Second, commenters 
    questioned the justification for the specific quantity values chosen 
    and even whether any specific value could be justified.
        DOE's intention with respect to both issues is better expressed by 
    the concept of ``approximately'' rather than ``generally,'' and the 
    class of actions in the final rule has been changed accordingly. By 
    using ``approximately,'' DOE is indicating that the numerical values 
    used in defining the class of actions are to be interpreted flexibly 
    rather than with unwarranted precision. DOE has also changed the 
    phrases in B4.11 and B4.12 to be consistent in wording. In addition, 
    for consistency DOE has changed the phrase ``major new resource'' in 
    B4.11 and ``major new sources of generation into a main transmission 
    system'' in B4.12, as in the proposed rule, to read ``major new 
    generation resources into a main transmission system'' in both B4.11 
    and B4.12.
        Two commenters stated that the proposed modifications to these 
    three categorical exclusions would exempt a wide array of power 
    marketing administration electric power transmission line construction, 
    reconstruction and/or relocation from the requirements of an 
    environmental assessment or environmental impact statement, possibly 
    resulting in a lower standard of environmental review than is imposed 
    by relevant state agencies, on comparable projects undertaken by non-
    federal utilities, or those imposed by other Federal agencies on non-
    federal entities, or even those adopted by other Federal agencies for 
    their own actions. In response to this concern, in conjunction with the 
    second reopened comment period, DOE asked the appropriate state 
    agencies for their views on the proposed modifications to the classes 
    of actions primarily related to power marketing, and on how the 
    environmental review that would result for Federal power marketing 
    administration projects would compare with the review those state 
    agencies require for comparable non-federal utility projects. 
    Similarly, the Department solicited the views of other Federal agencies 
    that may engage in comparable activities or issue permits to non-
    federal entities conducting comparable activities.
        Of the states and Federal agencies that DOE contacted, one 
    commenter responded to this initiative. The commenter was concerned 
    about exempting facilities of this magnitude from meaningful 
    environmental review given the level of controversy and the potential 
    environmental consequences typically associated with the construction 
    of new transmission lines. In response to this general concern 
    regarding environmental review, DOE notes that the exemption could only 
    be applied if there were no extraordinary circumstances, connected 
    actions with cumulatively significant impacts, or violation of the 
    integral elements, as discussed above under Section III.B. For example, 
    any proposed action with potential impacts on a sensitive resource, or 
    involving scientific controversy about the environmental effects of the 
    proposal would constitute a violation of the integral elements or 
    extraordinary circumstances and thus would not be categorically 
    excluded. Similarly, if the electric powerline or substation was ``a 
    connected action'' with regard to a facility not covered by a 
    categorical exclusion (such as a power plant), the appropriate level of 
    NEPA review would be conducted, i.e., environmental assessment or 
    environmental impact statement. Therefore, the expansion of these 
    categorical exclusions will not reduce the meaningful environmental 
    review of Federal proposals with significant controversy or potential 
    environmental consequences, as compared to non-federal proposals.
        This commenter previously provided a similar comment regarding 
    specific concerns about all three proposed modifications stemming, in 
    part, from the nature of the transmission grid owned and operated by 
    the Bonneville Power Administration (BPA) in the Pacific Northwest. The 
    commenter noted that, unlike other Federal Power Marketing 
    Administrations, BPA is the predominant owner and operator of major 
    transmission lines in the Pacific Northwest. Because of the ubiquity of 
    BPA's lines in this area, the commenter stated that the proposed 
    categorical exclusions could permit BPA to build substantial facilities 
    in the Northwest, including facilities in major metropolitan areas, 
    without being subject to meaningful environmental scrutiny. For the 
    reasons stated immediately above, DOE does not believe that the 
    circumstance described in the comment could occur.
        The commenter suggested that these proposed amendments to the 1992 
    DOE NEPA regulations would supplant a Memorandum of Understanding (MOU) 
    between the commenter and BPA. The NEPA regulations have no effect on 
    the MOU; it remains in effect as agreed upon by the two parties. The 
    commenter also incorrectly implied that the proposed categorical 
    exclusions are new. However, these categorical exclusions have existed 
    since 1992. Under B4.11, the proposal would allow the modification of 
    substations at any voltage, as opposed to those at a power delivery of 
    230 kV, as long as there is no voltage increase. Under B4.12, the 
    proposal would allow the construction of any electric powerline, not 
    just ``tap'' lines. Under B4.13, the length of existing electric 
    powerlines that could be reconstructed would be increased from 10 to 20 
    miles. DOE notes, however, that this reconstruction and/or minor 
    relocation under B4.13 is only for existing electric powerlines and 
    only to enhance environmental and land use values.
    
    Classes of Actions Listed in Appendix C
    
         Modification C3--Electric Power Marketing Rate Changes, 
    not Within Normal Operating Limits.
        As discussed above in reference to exclusion B4.3, DOE has 
    determined that inflation is not relevant to an action's potential for 
    environmental impact. Consistent with that determination, and as a 
    necessary conforming change, DOE has modified paragraph C3 of Appendix 
    C. This modification bases the application of the class of actions on 
    the effect on the operation of generation projects, rather than on the 
    rate of inflation.
         Proposed Modification C4--Upgrading and constructing 
    electric power lines.
        There were no comments on the proposed modification to this class 
    of actions; however, to be consistent with language in categorical 
    exclusions B4.11, B4.12, and B4.13, DOE is changing ``powerline'' to 
    ``powerlines'' and ``upgrading (reconstructing)'' to ``reconstructing 
    (upgrading and rebuilding).''
         Proposed Modification C7--Allocation of electric power, no 
    major new generation resource/major changes in operation of generation 
    resources/major new loads.
        DOE proposed amending this class of actions to be consistent with 
    B4.1 and D7 and to focus on market responses to the action rather than 
    the duration of the contract. One commenter expressed concern that DOE 
    was privatizing its energy resources. This class of actions does not 
    address privatization or sale of facilities, but rather the marketing 
    or allocation of power by the power marketing administrations and the 
    associated changes in generation resources, operating limits, or new 
    loads.
    
    [[Page 64607]]
    
    Classes of Actions Listed in Appendix D
    
         Proposed Modification D7--Allocation of electric power, 
    major new generation resources/major changes in operation of power 
    generation resources/major loads.
        DOE proposed amending this class of actions to be consistent with 
    B4.1 and C7 to focus on market responses to the change in allocation or 
    operation rather than duration of the underlying contract. One 
    commenter questioned the use of the word ``major,'' referencing ``Major 
    Projects'' as used in the previous C1 class of action which was removed 
    by the recent final rule (61 FR 36222). The word ``major'' in this 
    class of actions is used as an adjective with its normal usage, in this 
    case modifying the terms generation resources, changes, and loads.
    
    IV. Procedural Review Requirements
    
    A. Environmental Review Under the National Environmental Policy Act
    
        These amendments to the DOE NEPA rule establish, modify, and 
    clarify procedures for considering the environmental effects of DOE 
    actions within the Department's decision making process. Implementation 
    of this rule will not affect the substantive requirements imposed on 
    DOE or on applicants for DOE licenses, permits, and financial 
    assistance, and this rule will not result in environmental impacts. 
    Therefore, DOE has determined that this rule is covered by the 
    categorical exclusion found at paragraph A6 of appendix A to subpart D, 
    10 CFR Part 1021, which applies to procedural rulemaking. Accordingly, 
    neither an environmental impact statement nor an environmental 
    assessment is required.
    
    B. Review Under the Regulatory Flexibility Act
    
        The Regulatory Flexibility Act (5 USC 601 et seq.) requires that an 
    agency prepare an initial regulatory flexibility analysis to be 
    published at the time the proposed rule is published. This requirement 
    does not apply if the agency ``certifies that the rule will not, if 
    promulgated, have a significant economic impact on a substantial number 
    of small entities'' (5 USC 603). The rule modifies existing policies 
    and procedural requirements for DOE compliance with NEPA. The rule 
    makes no substantive changes to requirements imposed on applicants for 
    DOE licenses, permits, financial assistance, and similar actions as 
    related to NEPA compliance. Therefore, DOE certifies that the rule will 
    not have a ``significant economic impact on a substantial number of 
    small entities.''
    
    C. Review Under the Paperwork Reduction Act
    
        No new information collection or recordkeeping requirements are 
    imposed by these amendments. Accordingly, no Office of Management and 
    Budget clearance is required under the Paperwork Reduction Act of 1980 
    (44 U.S.C. 3501 et seq.).
    
    D. Review Under Executive Order 12612
    
        Executive Order 12612, ``Federalism,'' 52 FR 41685 (October 30, 
    1987) requires that regulations be reviewed for Federalism effects on 
    the institutional interest of states and local governments, and, if the 
    effects are sufficiently substantial, preparation of a Federalism 
    assessment is required to assist senior policymakers. These amendments 
    will affect Federal NEPA compliance procedures, which are not subject 
    to state regulation. The amendments will not have any substantial 
    direct effects on states and local governments within the meaning of 
    the Executive Order. Therefore, no Federalism assessment is required.
    
    E. Review Under Executive Order 12988
    
        With respect to the review of existing regulations and the 
    promulgation of new regulations, Section 3(a) of Executive Order 12988, 
    ``Civil Justice Reform'' 61 FR 4729 (February 7, 1996), imposes on 
    Executive agencies the general duty to adhere to the following 
    requirements: (1) Eliminate drafting errors and ambiguity, (2) write 
    regulations to minimize litigation, and (3) provide a clear legal 
    standard for affected conduct rather than a general standard and 
    promote simplification and burden reduction. With regard to the review 
    required by Section 3(a), Section 3(b) of Executive Order 12988 
    specifically requires that Executive agencies make every reasonable 
    effort to ensure that the regulation: (1) clearly specifies the 
    preemptive effect, if any; (2) clearly specifies any effect on existing 
    Federal law or regulation; (3) provides a clear legal standard for 
    affected conduct while promoting simplification and burden reduction; 
    (4) specifies the retroactive effect, if any; (5) adequately defines 
    key terms; and (6) addresses other important issues affecting clarity 
    and general draftsmanship under any guidelines issued by the Attorney 
    General. Section 3(c) of Executive Order 12988 requires Executive 
    agencies to review regulations in light of applicable standards in 
    Section 3(a) and Section 3(b) to determine whether they are met or it 
    is unreasonable to meet one or more of them. DOE has completed the 
    required review and determined that, to the extent permitted by law, 
    the final rule meets the relevant standards of Executive Order 12988.
    
    F. Review Under Executive Order 12866
    
        The final amendments were reviewed in accordance with Executive 
    Order 12866, ``Regulatory Planning and Review,'' 58 FR 51735 (October 
    4, 1993), which requires a Federal agency to prepare a regulatory 
    assessment, including the potential costs and benefits, of any 
    ``significant regulatory action.'' The order defines ``significant 
    regulatory action'' as any regulatory action that may have an annual 
    effect on the economy of $100 million or more and may adversely affect 
    the economy, productivity, competition, jobs, the environment, public 
    health or safety, or state, local, or tribal governments in a material 
    way; create a serious inconsistency or otherwise interfere with an 
    action taken or planned by another agency; materially alter the 
    budgetary impact of entitlements, grants, user fees, or loan programs; 
    or raise novel legal or policy issues arising out of legal mandates 
    (section 3(f)).
        These amendments will modify already existing policies and 
    procedures for compliance with NEPA. The amendments contain no 
    substantive changes in the requirements imposed on applicants for a DOE 
    license, financial assistance, permit, or similar actions. Therefore, 
    DOE has determined that the incremental effect of these amendments to 
    the DOE NEPA regulations will not have the magnitude of effects on the 
    economy, or any other adverse effects, to bring this proposal within 
    the definition of a ``significant regulatory action.''
    
    G. Review Under the Unfunded Mandates Reform Act
    
        Under Section 205 of the Unfunded Mandates Reform Act of 1995 (2 
    USC 1533), Federal agencies are required to prepare a budgetary impact 
    statement to accompany any proposed or final rule that includes a 
    Federal mandate that may result in the expenditure by state, local and 
    tribal governments, in the aggregate, or by the private sector, of $100 
    million or more in any one year. Because the DOE NEPA regulations 
    affect only DOE and do not create obligations on the part of any other 
    person or government agency, neither state, local or tribal governments 
    nor the private sector will be affected by amendments to these 
    regulations. Therefore, DOE has determined that further review under 
    the Unfunded Mandates Reform Act is not required.
    
    [[Page 64608]]
    
    H. Congressional Notification
    
        The final regulations published today are subject to the 
    Congressional notification requirements of Small Business Regulatory 
    Enforcement Fairness Act of 1996 (Act) (5 USC 801). The Office of 
    Management and Budget has determined that the final regulations do not 
    constitute a ``major rule'' under the Act (5 USC 804). DOE will report 
    to Congress on the promulgation of the final regulations prior to the 
    effective date set forth at the beginning of this notice.
    
    List of Subjects in 10 CFR Part 1021
    
        Environmental impact statements.
        Issued in Washington, D.C., November 27, 1996.
    Peter N. Brush,
    Principal Deputy Assistant Secretary, Environment, Safety and Health.
    
        For reasons set out in the preamble, 10 CFR Part 1021 is amended as 
    follows:
    
    PART 1021--NATIONAL ENVIRONMENTAL POLICY ACT IMPLEMENTING 
    PROCEDURES
    
        1. The authority citation for Part 1021 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 7254; 42 U.S.C. 4321 et seq.
    
        2. Appendix B to Subpart D, is amended to revise the Table of 
    Contents entries for B4.1, B4.2, B4.3, B4.6, B4.10, B4.11, B4.12, and 
    B4.13 to read as follows:
    
    Appendix B to Subpart D to Part 1021--Categorical Exclusions Applicable 
    to Specific Agency Actions
    
    Table of Contents
    
    * * * * *
        B4.1  Contracts/marketing plans/policies for excess electric 
    power.
        B4.2  Export of electric energy.
        B4.3  Electric power marketing rate changes, within normal 
    operating limits.
    * * * * *
        B4.6  Additions/modifications to electric power transmission 
    facilities within previously developed area.
    * * * * *
        B4.10  Deactivation, dismantling and removal of electric 
    powerlines and substations.
        B4.11  Construction or modification of electric power 
    substations.
        B4.12  Construction of electric powerlines approximately 10 
    miles in length or less, not integrating major new sources.
        B4.13  Reconstruction and minor relocation of existing electric 
    powerlines approximately 20 miles in length or less.
    
        3. Appendix B to Subpart D, section B4, is amended to revise 
    paragraphs B4.1, B4.2, B4.3, B4.6, B4.10, B4.11, B4.12 and B4.13, to 
    read as follows:
    
        B4.  Categorical Exclusions Applicable to Power Marketing 
    Administrations and to all of DOE with Regard to Power Resources.
        B4.1  Establishment and implementation of contracts, marketing 
    plans, policies, allocation plans, or acquisition of excess electric 
    power that does not involve: (1) the integration of a new generation 
    resource, (2) physical changes in the transmission system beyond the 
    previously developed facility area, unless the changes are 
    themselves categorically excluded, or (3) changes in the normal 
    operating limits of generation resources.
        B4.2  Export of electric energy as provided by Section 202(e) of 
    the Federal Power Act over existing transmission systems or using 
    transmission system changes that are themselves categorically 
    excluded.
        B4.3  Rate changes for electric power, power transmission, and 
    other products or services provided by a Power Marketing 
    Administration that are based on a change in revenue requirements if 
    the operations of generation projects would remain within normal 
    operating limits.
    * * * * *
        B4.6  Additions or modifications to electric power transmission 
    facilities that would not affect the environment beyond the 
    previously developed facility area including, but not limited to, 
    switchyard rock grounding upgrades, secondary containment projects, 
    paving projects, seismic upgrading, tower modifications, changing 
    insulators, and replacement of poles, circuit breakers, conductors, 
    transformers, and crossarms.
    * * * * *
        B4.10  Deactivation, dismantling, and removal of electric 
    powerlines, substations, switching stations, and other transmission 
    facilities, and right-of-way abandonment.
        B4.11  Construction of electric power substations (including 
    switching stations and support facilities) with power delivery at 
    230 kV or below, or modification (other than voltage increases) of 
    existing substations and support facilities, that could involve the 
    construction of electric powerlines approximately 10 miles in length 
    or less, or relocation of existing electric powerlines approximately 
    20 miles in length or less, but not the integration of major new 
    generation resources into a main transmission system.
        B4.12  Construction of electric powerlines approximately 10 
    miles in length or less that are not for the integration of major 
    new generation resources into a main transmission system.
        B4.13  Reconstruction (upgrading or rebuilding) and/or minor 
    relocation of existing electric powerlines approximately 20 miles in 
    length or less to enhance environmental and land use values. Such 
    actions include relocations to avoid right-of-way encroachments, 
    resolve conflict with property development, accommodate road/highway 
    construction, allow for the construction of facilities such as 
    canals and pipelines, or reduce existing impacts to environmentally 
    sensitive areas.
    
        4. Appendix C to Subpart D is amended to revise the Table of 
    Contents entries for C3, C4, and C7 to read as follows:
    
    Appendix C to Subpart D to Part 1021--Classes of Actions That Normally 
    Require EAs But Not Necessarily EISs
    
    Table of Contents
    
    * * * * *
        C3  Electric power marketing rate changes, not within normal 
    operating limits.
        C4  Reconstructing and constructing electric powerlines.
    * * * * *
        C7  Allocation of electric power, no major new generation 
    resource/major changes in operation of generation resources/major 
    new loads.
    * * * * *
        5. Appendix C to Subpart D to Part 1021 is amended to revise 
    paragraphs C3, C4, and C7 to read as follows:
    * * * * *
        C3  Rate changes for electric power, power transmission, and 
    other products or services provided by Power Marketing 
    Administrations that are based on changes in revenue requirements if 
    the operations of generation projects would not remain within normal 
    operating limits.
        C4  Reconstructing (upgrading or rebuilding) existing electric 
    powerlines more than approximately 20 miles in length or 
    constructing new electric powerlines more than approximately 10 
    miles in length.
    * * * * *
        C7  Establishment and implementation of contracts, policies, 
    marketing plans, or allocation plans for the allocation of electric 
    power that do not involve (1) the addition of new generation 
    resources greater than 50 average megawatts, (2) major changes in 
    the operating limits of generation resources greater than 50 average 
    megawatts, or (3) service to discrete new loads of 10 average 
    megawatts or more over a 12 month period. This applies to power 
    marketing operations and to siting, construction, and operation of 
    power generating facilities at DOE sites.
    * * * * *
        6. Appendix D to Subpart D is amended to revise the Table of 
    Contents entry for D7 to read as follows:
    
    Appendix D to Subpart D to Part 1021--Classes of Actions That Normally 
    Require EISs
    
    Table of Contents
    
    * * * * *
        D7  Allocation of electric power, major new generation 
    resources/major changes in operation of generation resources/major 
    loads.
    * * * * *
        7. Appendix D to Subpart D to Part 1021 is amended to revise 
    paragraph D7 to read as follows:
    
        D7  Establishment and implementation of contracts, policies, 
    marketing plans or allocation plans for the allocation of electric 
    power that involve (1) the addition of new generation resources 
    greater than 50 average megawatts, (2) major changes in the 
    operating limits of generation resources greater than 50 average 
    megawatts, or (3) service to discrete
    
    [[Page 64609]]
    
    new loads of 10 average megawatts or more over a 12 month period. 
    This applies to power marketing operations and to siting 
    construction, and operation of power generating facilities at DOE 
    sites.
    * * * * *
    [FR Doc. 96-31064 Filed 12-5-96; 8:45 am]
    BILLING CODE 6450-01-P
    
    
    

Document Information

Effective Date:
1/6/1997
Published:
12/06/1996
Department:
Energy Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-31064
Dates:
This rule will become effective January 6, 1997.
Pages:
64603-64609 (7 pages)
RINs:
1901-AA67: Amendments to NEPA Regulations
RIN Links:
https://www.federalregister.gov/regulations/1901-AA67/amendments-to-nepa-regulations
PDF File:
96-31064.pdf
CFR: (1)
10 CFR 1021.410(b)