Guide for Water Resources Division Responsibilities Relating to Federal Energy Regulatory Commission Projects

To: "A  - Division Chief and Staff",
        "FO - State, District, Subdistrict and other Field Offices",
        "AO - All Administrative Officers"
From: "Catherine L Hill, ACH/Operations, Reston, VA "
Cc: "Catherine L Hill, ACH/Operations, Reston, VA ",
        "Stephen F Blanchard, Deputy ACHO, Reston, VA ",
        "William G Shope Jr., Chief, Br. of Oper. Support, Reston, VA ",
        "Carlyn V West, Program Analyst, Reston, VA ",
        "Carole Nethaway, Secretary (OA), Reston, VA ",
        "Alice C Dilandro, Secretary (S), Reston, VA ",
        "  WRD Archive File, Reston, VA "
Subject: WRD Memo No. 97.31--Guide for WRD Responsibilities Relating
         to Federal Energy Regulatory Commission Projects
Date: Wed, 16 Jul 1997 08:32:00 -0400
Sender: "Alice C Dilandro, Secretary (S), Reston, VA "


In Reply Refer To:
Mail Stop 405                                                             
     
                                                   July 15, 1997


WATER RESOURCES DIVISION MEMORANDUM NO. 97.31

Subject:  Guide for Water Resources Division Responsibilities
          Relating to Federal Energy Regulatory Commission Projects

The Federal Energy Regulatory Commission (FERC) requires that certain 
hydrologic information be collected as part of their permits and 
licenses.  The U.S. Geological Survey (USGS) provides assistance to 
FERC permittees and licensees in the collection and analysis of the 
required hydrologic data when (1) the service is requested, and (2) 
it is practical and related to our mission. 
 
The request from FERC under the authority of 16 USC 797(c) allows us 
to enter into agreements with FERC permittees and licensees.  The 
historical background is described in Water Resources Division 
Memorandum No. 82.67. 

The attached guideline (Attachment A) provides a framework for making 
uniform responses to requests from FERC applicants for the collection 
of hydrologic data at proposed hydropower sites.

The USGS district may contact the applicant upon receiving a copy 
of the permit or wait until the applicant makes the initial contact.  
A sample letter for your use is attached if you wish to make the 
initial contact (Attachment B).  The District Chief decides the number
and location of data-collection stations for each FERC licensee.  If 
the district does not have the required expertise, help should be 
requested from the regional specialist or the discipline offices at 
Headquarters.  The Power Company may arrange for data collection 
through the USGS, pay someone else to do the work, or do it 
themselves.  If the work is not done by the USGS, the Department of
the Interior Solicitor's Office has ruled that a fee cannot be
charged for the preliminary evaluation.  In this case, the USGS, in
conjunction with FERC, can decide what level of quality assurance
is required to verify the record.  The FERC can then write this into 
the license agreement.

The license places a responsibility on the licensee to provide water 
data pertinent to the project.  If the data collection stations are 
already being operated with USGS funds, the district could choose to 
ask the licensee to assume part or all of the operation and 
maintenance cost of such stations.  If shared support is appropriate 
for records which are of value to the FERC, as well as to another 
agency (or agencies), the sharing of costs should be equitably 
determined.  In determining a revised cost sharing plan, districts 
should consider the impact when FERC funding is no longer available.

If existing records relating to the project are inadequate for full 
appraisal of the utilization of the available water resources and the 
establishment of new data collection stations is needed, the licensee 
is expected to bear the cost of the additional facilities required.   
Authority to sign agreements with the licensees is delegated to the 
District Chiefs per the attached memorandum signed by the Chief 
Hydrologist on June 16, 1997 (Attachment C).  The Joint Funding 
Agreement form cannot be used for these agreements.  Attached are 
suggested agreement letters to the licensee, which can also be used 
to transmit the bill, for initial and renewal work (Attachments D 
and E).  A sample of the bill, form DI 1040, is also attached 
(Attachment F).  Documentation in the district office file must
consist of signed copies of these documents.  The FERC agreements 
must be billed in advance with a 30-day due date.  (Reference Survey 
Manual 336.2 for billing information). 

Work under agreements signed with FERC licensees cannot be matched 
with cooperative program funding.  Customer numbers used for 
agreements signed with the licensees should be from the FERC series 
and not the cooperative program series.  Any questions regarding 
these guidelines, or the FERC program in general, should be referred 
to the Chief, Branch of Operational Support, Mail Stop 405, Reston, 
Virginia (703) 648-5364.


                                /signed/Stephen F. Blanchard, Acting

                               Catherine L. Hill       
                               Assistant Chief Hydrologist
                               for Operations

6 Attachments: 

A.  Guideline 
B.  Initial Contact Letter 
C.  Signature Authority Memorandum 
D.  Initial Work Acceptance Letter 
E.  Renewal of Work Acceptance Letter 
F.  Form DI 1040

Distribution: A, FO, AO (distributed by hard copy and electronic mail)
              
"This Memorandum does not supersede any previous WRD Memorandum."


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                                           ATTACHMENT A -- GUIDELINE


           GUIDELINE FOR CONDUCTING WORK WITH THE FERC

The purpose of this guideline is to establish a uniform procedure for
WRD district offices to respond to the needs of the Federal Energy 
Regulatory Commission (FERC) for hydrologic information at potential 
hydropower sites.  The procedure outlined is a guide for making a 
technical analysis of the hydrologic information required when a 
preliminary permit is issued by FERC.

1.  The needs of FERC for Hydrologic Information

The FERC needs hydrologic information from the U.S. Geological Survey
for several different purposes.  The FERC is responsible for seeing 
that each applicant develops hydropower at the site to the fullest 
possible extent.  They must also analyze the reliability of the power
production and, therefore, the characteristics of the streamflow.  
They must look at flood frequency for safety of design.  They need to
know the annual flow if the power site is below a regulatory structure
so that an assessment can be made of water released for use at the 
site.  They must analyze the availability of flow for prior water
rights and the effect of the power plant on these water rights, and 
they must determine the effects on fisheries.  To develop the 
information needed, the applicant must supply information on flow 
duration, average annual flow, flood characteristics, and low flows 
to FERC.

The FERC will make their evaluations with whatever hydrologic 
information is available.  They would, of course, prefer to have a 
long hydrologic record on which to base their decisions, but because 
a decision is required in a fixed time frame, they will base their 
decisions on the available hydrologic information.  In general, the 
FERC relies on the District Chief to use his/her best judgment in 
deciding what hydrologic information is needed, and the accuracy of 
this information that would best satisfy the needs of the FERC.

2. Procedure

The applicant is instructed in the preliminary permit and in each 
license to contact the District Chief and request that the hydrologic
information required by FERC be made available.  The WRD district has
the option of contacting the applicant when a copy of the permit is 
received or waiting for the applicant to make the initial contact.  
When the request for assistance is received, the District Chief must 
determine whether the hydrologic information available is adequate to
provide for the needs of FERC or whether data collection is required.
     
    (a) Instream Requirements

     The first step should be to determine, if possible, the instream 
requirements for prior water rights and fisheries at the site.  In
many states there is an agency or agencies which maintain information
on the instream requirements, and this information can be obtained 
from them in a relatively easy manner.  Where an agency such as
this does not exist, or other sources are not available, then the 
assessment must be made without knowledge of instream requirements.

     (b)  Existing Data

     An inventory should be made of the hydrologic information 
available at or near the site which could provide the information 
required by FERC.

     (c)  Regionalized Information

     If the hydrologic information is insufficient at the site, 
then an analysis should be made of any regional studies or data 
collection projects which may be applicable to the site.  If a 
regional regression can be applied to the site and provides the 
information required by FERC, then the data collection effort need 
not proceed any further.

     (d)  Correlation

     If a streamflow station exists nearby with which a correlation 
could be made by taking periodic streamflow measurements--such as in 
the Riggs Method or in other correlating techniques--then an analysis 
should be made to determine if the requirements of FERC can be met in 
this manner.

     (e)  Additional Data-Collection Stations  

     If the hydrologic information required by FERC cannot be 
provided by any of the above techniques, then an analysis should be 
made to determine the extent of additional data collection required.
A recommendation should be made to the FERC and the applicant that 
additional data collection is required.

3.  In exercising his/her judgment, the District Chief should keep the
size of the project in mind.  For example, if the structure is large 
and the possible damage downstream extensive, then FERC will use the
maximum probable flood in their design.  If the site is of the low 
hazard type, which most sites will be, then the FERC will use a 
100-year flood in their design.  The FERC would be satisfied with a 
range for the 100-year flood.  That is, if they knew the 100-year 
flood at a site was 100 cfs plus or minus 50 cfs, this would provide 
a design figure which they could use, and probably the design would be
based on the higher 150 cfs.

The short-term record which would be obtained during the permit state
if a gaging station is installed may not provide the information on 
variability of the flow with reliability.  However, it still provides 
valuable information for environmental assessments of the site and 
the instream requirements.


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                              ATTACHMENT B -- INITIAL CONTACT LETTER


In Reply To:                                        Date ______
Mail Stop _____


__Applicant Name___
____Address________
___________________
___________________


Dear Mr/Ms:

We have received a copy of permit No. _________ issued to you by the
Federal Energy Regulatory Commission (FERC).  This is to inform you 
that we are available to assist you in determining whether additional 
hydrologic information is required at the site.  If you would like the
U.S. Geological Survey to make the determination called for in the 
permit, please contact ___________________ of my staff with your 
request for this service.

                                      Sincerely yours,
                                        /signature/
                                       District Chief


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                      ATTACHMENT C -- SIGNATURE AUTHORITY MEMORANDUM


In Reply Refer To:
Mail Stop 441


                            MEMORANDUM

                                                      June 16, 1997

To:       Chief Hydrologist

From:     Catherine L. Hill   /signed/
          Assistant Chief Hydrologist for Operations

Subject:  Redelegation of Authority to Sign Agreements with
          Federal Energy Regulatory Commission Permittees and
          Licensees

It is requested that the authority to sign agreements with Federal
Energy Regulatory Commission (FERC) permittees and licensees be
redelegated from the Chief Hydrologist, Water Resources Division, 
to the District Chiefs, Water Resources Division.  This redelegation
request is in keeping with the President's reinventing government
initiatives to transfer responsibility to the level of operation.



Approved:              /signed/                   Date:    6/16/97
          -------------------------------------         ------------
                 Chief Hydrologist



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                      ATTACHMENT D -- INITIAL WORK ACCEPTANCE LETTER


In Reply To:                                        Date ______
Mail Stop _____


__Applicant Name___
____Address________
___________________

Dear Mr/Ms:

As a result of your discussions with _____________ of this office, 
it has been determined that the hydrologic (streamflow, water quality,
temperature) gaging station operation and maintenance costs during 
the year ____ through _____ will be ______.  If this amount is 
agreeable to you, please sign and date both copies of this letter on 
the acceptance lines below and return one copy to this office at the
following address:

                   U.S. Geological Survey
                   Office of the District Chief
                   ________Address_____________
                   _____City and State_________

Payment of the enclosed bill for operation and maintenance of 
the stream gaging site under Federal Regulatory Commission Permit 
No. ________ must be received before work can be performed.  
Payment should be made to the U.S. Geological Survey (USGS) and
mailed to:

                   U.S. Geological Survey
                   Office of Financial Management
                   Mail Stop 270
                   12201 Sunrise Valley Drive
                   Reston, VA  20192

The USGS is pleased to perform this work for (licensee).  It is
understood that the results of this work will be available to the 
USGS for publication and use in connection with related work.

If you require further information, you may reach me at (phone no).

                                  Sincerely yours,
                                    /signature/
                                   District Chief

2 Enclosures

Accepted by: _________________________    Date: ____________
                        Name

             _________________________
                        Title
                                      

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                   ATTACHMENT E -- RENEWAL OF WORK ACCEPTANCE LETTER


In Reply To:                                        Date ______
Mail Stop _____


__Applicant Name___
____Address________
___________________

Dear Mr/Ms:

Enclosed is a bill for the continued operation costs for the period
of ___________ to __________ of the stream gaging site under Federal
Energy Regulatory Commission Permit No. _________.  If this amount
is agreeable to you, please sign and date both copies of this letter 
on the acceptance lines below and return one copy to this office at 
the following address:

                   U.S. Geological Survey
                   Office of the District Chief
                   ________Address_____________
                   _____City and State_________

For continued operation, payment of the enclosed bill should be made
to the U.S. Geological Survey (USGS) and mailed to:

                   U.S. Geological Survey
                   Office of Financial Management
                   Mail Stop 270
                   12201 Sunrise Valley Drive
                   Reston, VA  20192

The USGS is pleased to continue this work for (licensee).  It is 
understood that the results of this work will be available to the 
USGS for publication and use in connection with related work.

If you require further information, you may reach me at (phone no).

                                  Sincerely yours,
                                    /signature/
                                   District Chief

2 Enclosures

Accepted by: _________________________    Date: ____________
                        Name

             _________________________
                        Title
                                      

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                                         ATTACHMENT F -- SAMPLE BILL
                                          (See actual DI-1040 Form)


DI-1040            BILL FOR COLLECTION                  
Revised                                        Bill No. 6-4436-0362
(Aug 1973)                                              ************


Make Remittance Payable To:  U.S. Geological Survey    Date 10/01/96
***************************************************    *************
                  USGS, Office of Financial Mgmt., Mail Stop 270  
Mail Payment To:  12201 Sunrise Valley Dr., Reston, VA 20192  
********************************************************************
                          (Address)

   PAYER:  135AA
           Mr. James J. McCarthy, Jr.
           New York Power Authority
           P.O. Box F
           Grand Gorge, New York  12434
                                          Amount of Payment $_______
********************************************************************
                                                 Unit Price
 Date         DESCRIPTION               Quantity  Cost Per  Amount
********************************************************************

     ADVANCE PAYMENT for operation and                     43,710 00
     maintenance of 5 gaging stations 
     in connection with FERC License
     No. 2685, Blenheim-Gilboa Project,
     for the period October 1, 1996,
     to September 30, 1997.


     Federal Regulations require a 5.0%
     annual percentage rate (0.416%/month)
     be assessed from the date of this bill.
     No interest will be charged if payment
     is made by the due date.
     Please return the white copy with your
     remittance.

     I certify that this bill is correct 
     and that payment has not been received.

               /signed/
     _____________________________________
     Cheryl M. Music, Administrative Officer
                         (518) 285-5656

     DUE DATE:  December 1, 1996

*******************************************************************
                                AMOUNT DUE THIS BILL,   $ 43,710 00
*******************************************************************
                                       Amount received, $________

*******************************************************************
   ACCOUNTING CLASSIFICATION (Appropriation Symbol must be shown;
                                other classification optional)
*******************************************************************
  135AA
  NY9700300
  FY 1997
  $43,710.00
*******************************************************************
                 ADMINISTRATIVE OR BILLING COPY