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<br />VIII. ENVIRONMENTAL EVALUATION <br /> <br />In compliance with the National Environmental Policy Act (NEPA) <br />of 1969 and DOE re9ulations published in the Federal Register on <br />February 23, 1982, 47 FR 7976, Western wi 11 follow the process <br />described below in conducting environmental evaluations of proposed <br />rate adjustments. <br /> <br />Section 0 of the OO~ regulation states that for rate inCreases <br />for power marketing administrations, the level of documentation under <br />NEPA depends upon the following criterion: <br /> <br />The size of the rate increase as it relates to the rate of <br />inflation since the last rate increase. <br /> <br />If the rate increase exceeds the rate of inflation since the <br />last rate increase, an environmental assessment (EA) is normally <br />required. An EA considers the impacts of the proposed rate increase <br />and alternatives on the environment. <br /> <br />Western has made a determination as to the size of the rate <br />increase. Since it exceeds the rate,of inflation in the period since <br />the last rate increase, Western is preparing an EA and copies will be <br />sent to interested persons upon request. <br /> <br />If the EA concludes that there is nO significant impact on the <br />human environment, a finding of no significant impact will be <br />prepared. If an EA concludes that the rate increase does <br />significantly affect the quality of the human environment, Western <br />would prepare an environmental impact statement (EIS) and conduct <br />scoping activities to further define environmental considerations. A <br />draft EIS would be prepared, followed by the final EIS which would set <br />forth the final proposal and its related impacts. <br /> <br />IX. REGULATORY FLEXIBILITY ACT OF 1980 <br /> <br />Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 601 <br />~~., each agency, when required by 5 U.S.C. 553 to publish a <br />proposed rule, is further required to prepare and make available for <br />public comment an initial re9ulatory flexibility analysis to describe <br />the impact of the proposed rule on small entities. In this instance, <br />the rate adjustment for Rio Grande relates to nonregulatory services <br />provided by Western at a particular rate. Under 5 U.S.C. 601(2), <br />rules of particular applicability relating to rates or services are <br />not considered "rules" within the meaning of the Act. Since the rate <br />for Rio Grande power is of limited applicability, no flexibility <br />analysis is required. <br /> <br />17 <br /> <br />,~ <br />