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HomeMy WebLinkAbout20030181 Ver 7_Emails_20140908 (2)From: Cranford, Chuck Sent: Monday, September U8,ZUl44:Z4PM To: 8urdette, Jennifer a Subject: FVV:4Ul Attachments: Mission New License lU Z5 ZUll.pdf,U0U8ZUl4l6Zl48 DO[000814.pdf See what you think. The I foot thing is in an addendum attached to Appendix A which has our 401 (sort of — the conditions don't match) in it [attached]. Hepme Jennifer, hepme. Is ********************************************** 55 15 r- Division of Water Resources Email correspondence to and from this address is subject to the North Carolina Public Records Law and may bedisclosed to third parties unless the content isexempt by statute or other regulation. From:]ohnson Steven Sent: Monday, September O8, 2O14]:46 PM To: Cranford, Chuck Subject: RE: 401 Here you go Chuck. I have attached the whole license. The WQC starts on page 51 and the typo definition of "Long Extended Drawdown" is on page 64. 1 have highlighted that for your convenience. Several years earlier we negotiated the terms of the Historic Properties Management Plan with the NCSHPO and other resource agencies, so the 10 ft > 30 day definition for a "Long Extended Drawdown" has been in place for several years before 2010. If it helps, the language was in the Maintenance and Emergency Protocol which was appended to the Lake Level and Flow This was all part ofabout a week-long negotiation with DVVQ, USFVVS, NCVVKC and USFVVSto determine conditions to be included in the 401 Water Quality Certification. From: Cranford, Chuck [ma i Ito: chuck.cranfordCa)ncdenr.Qov] Sent: Monday, September 08, 2014 2:18 PM To: Johnson, Steven R Subject: 401 ****** This is an EXTERNAL email. Exercise caution. DO NOT open attachments or click links from unknown senders or unexpected email. Hi Steve — Please provide a copy of the 401 you referred to regarding the 1- foot /10 -foot typo. I've searched through our electronic database and have come up short. Thanks, Chuck *************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Chuck Cranford Assistant Regional Supervisor, Water Quality Regional Operations Division of Water Resources Asheville Regional Office 2090 U.S. 70 Highway Swannanoa, NC 28778 Tel: 828 - 296 -4500 Fax: 828 - 299 -7043 chuck.cranford @ncdenr.gov Email correspondence to and from this address is subject to the North Carolina Public Records Law and may be disclosed to third parties unless the content is exempt by statute or other regulation. Fil 137 FERC ¶ 62,090 UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Duke Energy Carolinas, LLC INTRODUCTION Project No. 2619 -012 ORDER ISSUING NEW LICENSE (October 25, 2011) 1. On July 22, 2003, Duke Energy Carolinas, LLC (Duke)' filed, pursuant to sections 4(e) and 15 of the Federal Power Act (FPA),2 an application for a new license to continue operation and maintenance of the Mission Hydroelectric Project No. 2619. The project's authorized capacity being licensed is 1.8 megawatts (MW). The project is located on the Hiwassee River, a tributary to the Tennessee River, in Clay and Cherokee Counties, North Carolina .3 The project does not occupy any federal lands. As discussed below, I am issuing a new license for the project. ' The project was originally licensed to Nantahala Power and Light Company. In 2000, Nantahala Power and Light Company changed its name to Nantahala Power and Light, a division of Duke Energy Corporation. See 91 FERC ¶ 62,235 (2000). In 2001, the license was transferred from Nantahala Power and Light, a division of Duke Energy Corporation, to Duke Energy Corporation (under the name Duke Power, a division of Duke Energy Corporation, Nantahala Area). 96 FERC ¶ 62,142 (2001). In 2007, the license was transferred to Duke Energy Carolinas, LLC, and Duke Energy Carolinas, LLC was substituted as the relicense applicant. 118 FERC ¶ 62,223 (2007). 2 16 U.S.C. §§ 797(e) and 808 (2006). 3 The Hiwassee River is a tributary to the Tennessee River, a navigable waterway. See 13 F.P.C. 14, 23 -24 (1954). Pursuant to section 23(b)(1) of the FPA, the project is required to be licensed because of its location on a stream over which Congress has jurisdiction under the Commerce Clause, its connection to an interstate power grid, and construction occurring at the project after 1935. See Nantahala Power and Light Company, 56 F.P.C. 3560 (1976), order on reh'g, 57 F.P.C. 1033 (1977). Project No. 2619 -012 BACKGROUND -2- 2. The Commission issued the original license for the project on August 4, 1980, and the license expired on July 31, 2005.4 Since then, Duke has operated the project under an annual license pending the disposition of its new license application. 3. The Commission published notice of the application on November 7, 2003, setting January 6, 2004, as the deadline for filing notices of intervention and motions to intervene. s Motions to intervene were filed in the proceeding by the North Carolina Wildlife Resource Commission (North Carolina WRC), the U.S. Department of the Interior (Interior), the North Carolina Department of Environment and Natural Resources (North Carolina DENR) and the Western North Carolina Alliance (Alliance).6 In addition, late motions to intervene were filed by: Donald Beam; Jackson County, North Carolina; Macon County, North Carolina; and the Town of Franklin, North Carolina.' None of the intervenors oppose the project. The late motions to intervene were granted . 8 4. On October 14, 2004, the Commission published notice that the project was ready for environmental analysis and solicited comments, recommendations, terms and conditions, and prescriptions. In response, timely comments, recommendations, and terms and conditions were filed by Interior, U.S. Fish and Wildlife Service (FWS), North Carolina WRC, and North Carolina DENR. On June 16, 2005, a group of municipal and local entities (community commenters) jointly filed untimely comments and recommendations.9 4 12 FERC ¶ 62,069 (1980). The license was issued with an effective date of May 1, 1965, and a termination date of 25 years from the first day of the month in which the license was issued, i.e., July 31, 2005. 5 Commission staff held scoping meetings on February 11, 2004, in Hayesville, North Carolina. 6 The motions were timely and unopposed. Therefore, they were automatically granted under Rule 214(c)(1) of the Commission's regulations. 18 C.F.R. § 385.214(c)(1) (2011). Duke opposed the untimely motion to intervene by Jackson County, North Carolina. Further, on January 14, 2005, Duke opposed the untimely motions to intervene by Macon County and the Town of Franklin, North Carolina. 8 See unpublished notice issued January 25, 2006. 9 The community commenters are: Jackson County, Jackson County Soil and (continued) Project No. 2619 -012 -3- 5. On February 9, 2006, the Commission issued a draft Environmental Assessment (EA) for the relicensing of Mission Project No. 2619, Franklin Project No. 2603, and Nantahala Project No. 2692. Interior, North Carolina WRC, North Carolina DENR, FWS, U.S. Forest Service, American Whitewater, Jackson County, Macon County, the Town of Franklin, and Duke filed comments on the draft EA. On July 12, 2006, Commission staff issued a final EA. 10 6. The motions to intervene, comments, recommendations, and terms and conditions have been fully considered in determining whether, and under what conditions, to issue this license for the Mission Project. PROJECT DESCRIPTION A. Project Area 7. The Mission Project is located in western North Carolina at River Mile 106 on the Hiwassee River within the Hiwassee River Basin, just upstream of the Cherokee County line. The Tennessee Valley Authority's Chatugue dam and the Town of Hayesville are located 15 miles and 9 miles, respectively, upstream of the Mission dam. The Town of Mission is located approximately 0.5 mile downstream of the Mission dam. B. Project Facilities 8. The Mission Project consists of. (1) a 397 - foot -long, 50- foot -high concrete dam that includes, beginning at the left abutment (a) a 66- foot -long non - overflow concrete Water Conservation District, Jackson County Parks and Recreation Department Advisory Board, Jackson County Greenway Commission, Macon County, Town of Franklin, Town of Webster, Dillsboro Inn and T.J. Walker, Friends of Lake Glenville Association, Inc., Glenville Community Development Club, Cullowhee Falls, Inc., and Cullowhee Forest Property Owners Association, Inc. Although styled as a "preferred settlement," the pleading is unilateral (neither Duke nor any of the federal or state resource agencies are parties to it) and thus an agreement in name only. See Duke Energy Carolinas, LLC 120 FERC ¶ 61,054 (2007), order on reh'g, 123 FERC ¶ 61,069 (2008). The community commenters' recommendations were considered in the Environmental Assessment for the project, and are discussed in this order, infra, as they relate to the Mission Project. 10 Unless otherwise specified, references in this order to the EA are to the final EA. Project No. 2619 -012 - 4 - gravity section, (b) a 126- foot -long gated spillway section with seven bays and Tainter gates, (c) a 72- foot -long non - overflow concrete gravity section, (d) a 54- foot -long intake section with three intake bays, and (e) a 79- foot -long non - overflow concrete gravity section; (2) a 47 -acre reservoir (Mission Reservoir) at normal full pond elevation 1,658.17 feet mean sea level (msl); (3) three 56- foot -long concrete penstocks; (4) a powerhouse containing three turbine /generating units," the 500- kilowatt (kW) generating unit No. 1, the 500 -kW generating unit No. 2, and the 800 -kW generating unit No. 3, with a total installed capacity of 1.8 MW; and (5) appurtenant facilities. Because project power is transmitted directly to a single three -phase transformer switchyard which abuts the powerhouse, there is no primary transmission line at the project. There are currently no project recreation facilities. C. Project Boundary 9. The Mission Project boundary, consisting of lands necessary for the safe operation and maintenance of the project and other purposes, such as shoreline control and protection of environmental resources, encompasses about 99 acres. The project boundary encloses the dam, powerhouse, Mission Reservoir, the tailrace to a point 400 feet downstream of the dam, and an access road. The project boundary includes the Mission Reservoir and associated lands up to contour elevation 1,685.17 feet msl, except in some areas where it follows irregularly shaped metes and bounds property descriptions. Duke proposes no change to the project boundary. D. Current Project Operation 10. The Mission Project generates an average of 8,134 megawatt -hours (MWh) of energy annually when all three generating units are operating. As licensed, Duke operates the Mission Project in a run -of -river mode and operates to maintain a reservoir elevation within 0.5 foot of normal full pond elevation 1,658.17 feet msl. Reservoir levels are maintained by a programmable logic controller which controls three of the seven Tainter gates and the hydro units. The remaining four Tainter gates are operated manually. The three generating units have a total maximum hydraulic capacity of 786 cubic feet per second (cfs) and a minimum hydraulic capacity of 141 cfs. All inflow in excess of 786 cfs is passed through one or more Tainter gates. When the project is not operating (e.g., during emergencies, for project maintenance, or when not operating due to damaged generating facilities), Duke provides a minimum flow of 280 cfs, or inflow, whichever is less, from the powerhouse to maintain fishery resources downstream of the proj ect. 11 Facing downstream, from left to right, is the 500 -kW generating unit No. 1, 500 - kW generating unit No. 2, and 800 -kW generating unit No. 3. Project No. 2619 -012 -5 - E. Proposed Project Operation 11. Duke proposes no new capacity for the project; however, Duke proposes complete rehabilitation of two of the three generating units, specifically, the 500 -kW generating unit No. 1 and the 500 -kW generating unit No. 2, by December 2012. 12. Duke proposes to implement a Lake Level and Flow Management Plan 12 (Addendum No. I of the water quality certification (certification)) to manage and monitor Mission Reservoir water levels and flows downstream of the project dam. Under the plan, Duke proposes to continue operating the project in a run -of -river mode, using a programmable logic controller to control the units and the Tainter gates. When all generating units are operable, Duke would maintain reservoir elevations within ±0.1 foot of normal target elevation (1,657.67 feet msl) for 99 percent of the year and ±0.3 foot for 1 percent of the year. When fewer than two hydro units are operable, Duke would maintain reservoir levels within ±0.3 foot of the normal target elevation (1,657.67 feet msl).13 13. Duke proposes to maintain a minimum flow into the project tailrace during reservoir maintenance activities or drawdown and refill periods equal to the September median flow (about 341 cfs). The minimum flow would prevent dewatering of the Hiwassee River downstream of the dam and protect aquatic resources in this reach during project maintenance activities, which occur infrequently. F. Other Proposed Measures 14. Duke proposes to develop and implement a Long -Term Sediment Management Plan 14 (part of the Nantahala Area Run -of -River Projects Sediment Study Plan, 12 Duke developed the Lake Level and Flow Management Plan, the Nantahala Area Run -of -River Projects Sediment Study Plan, and the Nantahala Area Run -of -River Projects Maintenance and Emergency Protocol after consultation with the FWS, North Carolina Division of Water Quality, North Carolina Division of Water Resources, and the North Carolina WRC, and filed it with the Commission on July 14, 2010. 13 Duke proposes to maintain these elevations unless it is operating under its proposed Nantahala Area Run -of -River Projects Maintenance and Emergency Protocol (Appendix to Addendum No. 1 of the certification). However, if Duke determines that fewer than 2 units will be operable for more than 60 consecutive days, it would consult with the relevant agencies to develop a plan and schedule for complying with run -of -river operations. 14 See n. 12, supra. Project No. 2619 -012 - 6 - Addendum No. 3 to the certification), which would be applied to the Mission Project and its other two Nantahala Area Run -of -River Projects (the Bryson Project No. 2601 and Franklin Project No. 2603). The plan would be developed based on the results of a sediment removal pilot study (Pilot Study) to be conducted at the first project requiring sediment removal (i.e., either Bryson, Franklin, or Mission project). The plan would include provisions for: (1) monitoring turbidity and suspended solids for a period of 2 years after all hydro units are restored and operational; (2) removing and disposing of man -made trash from the intake rack in accordance with Duke's proposed trash removal plan; and (3) developing guidelines for trashrack maintenance, debris /sediment management and removal, and emergency drawdowns (e.g., rates of drawdown and refilling). After 5 years of implementing the Long -Term Sediment Management Plan, Duke proposes to consult with the resource agencies to review and evaluate the adequacy of the plan. 15. Duke proposes to install and maintain wood duck nesting boxes at the project to enhance wood duck habitat. 16. Duke proposes to construct: (1) a canoe portage around Mission dam; (2) a boat ramp downstream of the dam with a parking area for 4 to 6 vehicles, and for 4 to 6 vehicles with trailers; and (3) a 2,218- foot -long, non - motorized trail on Duke -owned land along the abandoned Peavine Railroad right-of-way, 15 extending from the Mission Project powerhouse upstream to the Carroll Lake outfall16 to provide for wildlife viewing. 17. Duke proposes to continue to implement its Shoreline Management Guidelines, which are general guidelines it has established to protect the environmental resources at all eight of its licensed hydroelectric projects. 18. Duke proposes to implement a Programmatic Agreement (PA) and its associated Historic Properties Management Plan (HPMP) to protect historic properties. 15 The abandoned Peavine Railroad right -of -way parallels the entire north shore of Mission Reservoir. 16 Carroll Lake is a small lake surrounded by private land located off the north bank of the Mission Reservoir, between the reservoir and Mission Dam Road. See EA at 156. Project No. 2619 -012 SUMMARY OF LICENSE REQUIREMENTS -7- 19. As summarized below, this license, which authorizes 1.8 MW of renewable energy, requires a number of measures to protect and enhance fish, wildlife, cultural, and recreation resources at the project. 20. To protect the aquatic resources in the Mission Reservoir and the Hiwassee River, the license requires Duke to: (1) operate the project in a run -of -river mode; (2) monitor project operation as described in its Lake Level and Flow Management Plan (Addendum No. 1 to the certification); and (3) revise its Sediment Management Plan (Addendum No. 3 to the certification) to include (a) provisions, when dredging, to minimize the impact of the project drawdown and sediment removal on environmental resources; (b) provisions for evaluating downstream effects on aquatic resources; (c) best management practices for sediment management; and (d) a schedule for implementation. 21. To protect the aquatic resources in the Hiwassee River, the license requires Duke to release a minimum flow of 341 cfs (the September median flow) into the project tailrace during reservoir maintenance activities or drawdown and refill periods. 22. To enhance wood duck nesting at the project, the license requires Duke to install and maintain wood duck nesting boxes. 23. The license reserves authority for the Commission to require Duke to construct, operate, and maintain fishways as may be prescribed in the future by the Secretary of the Interior. 24. To improve recreation opportunities at the project, the license requires Duke to develop and implement a Recreation Plan that provides for a canoe portage around Mission dam, a boat ramp downstream of the dam with parking for vehicles as well as for vehicles with trailers, and a 2,218- foot -long, non - motorized trail on Duke -owned land along the abandoned Peavine Railroad right -of -way, extending from the Mission Project powerhouse to the Carroll Lake outfall. 25. To protect the scenic quality and environmental resources at the project, the license requires Duke to develop and implement a Shoreline Management Plan that incorporates the provisions of Duke's Shoreline Management Guidelines that specifically pertain to the Mission Project. 26. To protect cultural resources at the project, the license requires Duke to implement the PA and associated HPMP for the Mission Project. Project No. 2619 -012 WATER QUALITY CERTIFICATION 27. Under section 401(a)(1) of the Clean Water Act (CWA),17 the Commission may not issue a license authorizing the construction or operation of a hydroelectric project unless the state water quality certifying agency either has issued certification for the project or has waived certification by failing to act on a request for certification within a reasonable period of time, not to exceed one year. Section 401(d) of the CWA provides that the certification shall become a condition of any federal license that authorizes construction or operation of the project. 18 28. On July 8, 2003, Duke applied to the North Carolina DENR, Division of Water Quality (North Carolina DWQ) for water quality certification for the Mission Project. Each year since that date, Duke has withdrawn and refiled its application. On June 9, 2009, Duke refiled its application. The North Carolina DWQ received the last request on June 11, 2009. On June 9, 2010, North Carolina DWQ issued certification for the project that included nine conditions, which are set forth in Appendix A of this order and incorporated into the license (see Ordering Paragraph D). On July 30, 2010, North Carolina DWQ made certain minor corrections to the certification for the Mission Project. 29. The certification includes: (1) a requirement to implement best management practices for waste, spoil, solids, or fill within wetlands, waters, or riparian areas; (2) measures regarding sediment and erosion control in wetlands or waters; (3) a requirement to identify and report to the North Carolina DWQ and the North Carolina Division of Water Resources (North Carolina DWR) existing and proposed consumptive uses of Mission Project waters; (4) a statement that the certification does not grant or affirm any property right or any right of use in any waters; (5) a requirement to comply with state water quality standards; (6) incorporation by reference the Lake Level and Flow Management Plan and run -of -river requirement (Addendum No. 1) and the Nantahala Area Run -of -River Projects Sediment Study Plan (Sediment Study Plan, Addendum No. 3),19 including additional agency consultation for modifying the Pilot Study Plan; (7) a requirement to develop a Long -Term Sediment Management Plan; (8) incorporation by reference of the Nantahala Area Run -of -River Projects Maintenance and Emergency Protocol (Maintenance and Emergency Protocol) which is an appendix to 17 33 U.S.C. § 1341(a)(1) (2006). 18 33 U.S.C. § 1341(d) (2006). 19 The Nantahala Area Run -of -River Project Sediment Study Plan consists of two components: (1) the Pilot Study and (2) the Long -Term Sediment Management Plan. Project No. 2619 -012 - 9 - the Lake Level and Flow Management Plan; and (9) a requirement to develop a Shoreline Management Plan. 30. Certain conditions of the certification refer to Addenda and an Appendix to Addendum No. 1, regarding the Lake Level and Flow Management Plan, the Sediment Study Plan, and the Maintenance and Emergency Protocol,20 and are summarized below, In addition, certain conditions of the certification do not provide for the licensee to file a report with, or to notify, the Commission regarding project operations, and portions of certain conditions are for other projects and are, thus, not applicable to the Mission Project. I discuss such matters below. A. Lake Level and Flow Management Plan (Addendum No. 1) 31. The Lake Level and Flow Management Plan, required by Condition 6 (Addendum No. 1) of the certification, includes provisions for: (1) establishing reservoir levels and flow management procedures during normal project operations; (2) identifying potential operational issues; (3) filing annual compliance reports; and (4) establishing emergency alert systems to enhance remote monitoring. 32. As part of the Lake Level and Flow Management Plan, Duke is required, after 5 years of project operation, to convene a meeting with the FWS, the North Carolina WRC, the North Carolina DWR, and the North Carolina DWQ to discuss project maintenance as well as the required project operations. However, neither the plan, nor the certification, provide for Commission notification of the meeting. Therefore, Article 401(b) requires Duke to notify the Commission of the meeting. Article 401(c) requires Duke to file with the Commission for approval any changes made to the Lake Level and Flow Management Plan, resulting from the meeting. 33. Condition 7 of the certification requires Duke, as part of the Lake Level and Flow Management Plan, to file compliance reports with the North Carolina DWQ, but not with the Commission. Therefore, Article 401(b) requires Duke to file the compliance reports with the Commission. 20 The Addendum and Appendix were not attached to the certification filed by the North Carolina DWQ. On July 14, 2010, Duke filed Addendum No. 1, Addendum No. 3, and the Appendix to Addendum No. 1. These plans and protocol are included in their entirety in Appendix A. Project No. 2619 -012 - 10- B. Nantahala Area Run -of -River Projects Maintenance and Emergency Protocol (Appendix to Addendum No. 1) (Maintenance and Emergency Protocol) 34. The Maintenance and Emergency Protocol defines normal operations, notification protocols, and conditions outside normal operations for Duke's three run -of -river projects, including the Mission Project. Duke proposes to implement the protocol when conditions outside of normal project operations occur. The Maintenance and Emergency Protocol identifies provisions for responding to scheduled and unscheduled project operations, including: (1) hydro unit maintenance; (2) minimum flow provisions during refilling of the reservoir; (3) dam safety emergencies; (4) voltage and capacity emergencies; (5) reservoir draw downs; and (6) notification of any temporary closures of access to recreation facilities. 35. Condition 8 of the certification requires Duke to implement the Maintenance and Emergency Protocol, which includes a general framework for managing reservoir levels and flows and monitoring reservoir levels and flows downstream, during normal operations, maintenance, and emergency operations. As such, procedural protocols for project operations during drawdowns of the project reservoir are included in this protocol. However, the Maintenance and Emergency Protocol does not require, nor does it provide, specific provisions for a Reservoir Drawdown Plan, including: (1) the timing; (2) the rates of drawdown and refill; and (3) agency notification of scheduled outages prior to drawdown and refill periods to minimize downstream effects due to outages and flows released below a minimum flow of 341 cfs (the September median flow). Therefore, I am requiring, in Article 409, that Duke develop a Reservoir Drawdown Plan that includes the above provisions, and file the plan with the Commission for approval. 36. The Maintenance and Emergency Protocol includes communication and reporting provisions to be implemented during and after project operation changes. Some reports are not required to be filed with the Commission. To facilitate the Commission's oversight of the license, Article 401(b) requires Duke to file a report, whenever fewer than two hydro units are operable, and notify the Commission of any access area closures. 37. Finally, the Maintenance and Emergency Protocol provides for unspecified, long- term changes to the protocol; however, it does not include a schedule for revisions. Therefore, Article 401(c) requires Duke to file with the Commission for approval any changes made to the Maintenance and Emergency Protocol and a schedule to implement applicable revisions, after consultation with the FWS, the North Carolina WRC, the North Carolina DWR, and the North Carolina DWQ. Project No. 2619 -012 - 11 - C. Nantahala Area Run -of -River Projects Sediment Study Plan (Addendum No. 3) (Sediment Study Plan) 38. The Sediment Study Plan, required by Conditions 6 and 7 of the certification, has three main objectives: (1) develop a protocol for a single Nantahala Area -wide sediment removal pilot study (Pilot Study); (2) conduct the Pilot Study at the first project requiring sediment removal (i.e. either Bryson, Franklin, or Mission project); and (3) file a Long - Term Sediment Management Plan for each of the three projects, based on the Pilot Study results. The Pilot Study would be conducted only at the first of the three Nantahala area run -of -river projects where sediment removal is to be done. Duke would conduct the Pilot Study to provide the basis for its Long -Term Sediment Management Plan that would be implemented for its three Nantahala area run -of -river projects, including the Mission Project . 21 39. The Sediment Study Plan, however, does not include specific provisions that address the plan's objective of avoiding effects on downstream environmental resources during dredging, nor does the plan include a provision for filing a post - license study of alternative minimum flows if Duke determines adequate instream flows (i.e., the September median flows) cannot be met during drawdown and refilling. 40. Therefore, I am requiring Duke, in Article 408, to revise its Sediment Study Plan, specifically the Pilot Study Plan, and file it with the Commission for approval. The revised Pilot Study Plan would include, at a minimum, the following provisions: (1) site specific measures to minimize the effects of project drawdowns on downstream resources during dredging; (2) monitoring, including short -term monitoring for inflow turbidity and suspended solids, including monitoring methods, locations, and frequencies; (3) a schedule for filing the Pilot Study report and a schedule for future sediment removal, including project maintenance; and (4) best management practices for sediment removal. 41. I am additionally requiring, as part of Article 401(a), that if Duke finds it necessary to conduct a September Median Flow Post - License Study, Duke file the study plan with the Commission for approval before implementation. Upon completion of the Pilot Study Plan (required in Article 408) and any September Median Flow Post - License Study, Article 401(a) requires Duke to file the Long -Term Sediment Management Plan with the Commission for approval. Further, Article 401(b) requires Duke to file the 21 The Long -Term Sediment Management Plan also would include a post - license study to determine adequate instream flows if the September median flow (about 341 cfs) cannot be met during drawdown and refilling. The timing for conducting the study is, however, unclear (i.e., as part of preparing the Long -Term Sediment Management Plan, or at some point in the future if conditions warranted). Project No. 2619 -012 -12- results of any September Median Flow Post - License Study with the Commission along with any necessary license amendment, as required by the certification. COASTAL ZONE MANAGEMENT ACT 42. Under section 307(c)(3)(A) of the Coastal Zone Management Act (CZMA),22 the Commission cannot issue a license for a project within or affecting a state's coastal zone unless the state CZMA agency concurs with the license applicant's certification of consistency with the state's CZMA program, or the agency's concurrence is conclusively presumed by its failure to act within 180 days of its receipt of the applicant's certification. 43. North Carolina DENR, Division of Coastal Management, manages North Carolina's Coastal Zone Management Program. North Carolina's coastal zone includes 20 counties that in whole, or in part, are adjacent to, adjoining, intersected by, or bounded by the Atlantic Ocean or any coastal sound(s). 44. Pursuant to the National Oceanic and Atmospheric Administration's regulations implementing the CZMA, 15 C.F.R. § 930.53 (2010), if a state chooses to review activities, with reasonably foreseeable effects, outside its coastal zone, it must generally describe the geographic location of such activities. If a state wishes to review activities outside of the coastal zone, and for which it has not generally described the geographic location for review, the state must follow the procedures established in 15 C.F.R. § 930.54 (2010). That section requires the state to notify the federal agency, the applicant, and the National Oceanic and Atmospheric Administration of unlisted activities affecting the coastal zone (that it wishes to review) within 30 days from notice of the license application. 23 45. The Mission Project is located outside North Carolina's coastal zone, and North Carolina has not described a geographic location for federal license activities outside the coastal zone that it wishes to review. Notice of the license application was published in the Federal Register on November 19, 2003. The agency did not notify the Commission or the applicant that it wished to review the application. Therefore, certification is not required. 22 16 U.S.C. § 1456(c)(3)(A) (2006). 23 Notice may be constructive, if it is published in the Federal Register. 15 C.F.R. § 930.54(a)(2) (2011). Project No. 2619 -012 SECTION 18 FISHWAY PRESCRIPTIONS -13- 46. Section 18 of the FPA24 provides that the Commission shall require the construction, maintenance, and operation by a licensee of such fishways as may be prescribed by the Secretary of the Interior or the Secretary of Commerce, as appropriate. 47. On December 13, 2004, the Secretary of the Interior timely requested that the Commission reserve authority to prescribe fishways at the Mission Project in the future. Consistent with Commission policy, Article 404 of this license reserves the Commission's authority to require fishways that may be prescribed by the Secretary of the Interior for the Mission Project. THREATENED AND ENDANGERED SPECIES 48. Section 7(a)(2) of the Endangered Species Act (ESA) of 197325 requires federal agencies to ensure that their actions are not likely to jeopardize the continued existence of federally listed threatened and endangered species, or result in the destruction or adverse modification of designated critical habitat. 49. By letter filed on December 10, 2004,26 the FWS stated that there are no listed species or critical habitats found in the Mission Project area and that the project would not affect endangered or threatened species and their habitats. Therefore, the requirements under section 7 of the ESA are fulfilled. NATIONAL HISTORIC PRESERVATION ACT 50. Under section 106 of the National Historic Preservation Act (NHPA)27 and its implementing regulations ,28 federal agencies must take into account the effect of any proposed undertaking on properties listed or eligible for listing in the National Register of Historic Places (defined as historic properties) and afford the Advisory Council on Historic Preservation a reasonable opportunity to comment on the undertaking. This 24 16 U.S.C. § 811 (2006). 2516 U.S.C. § 1536(a) (2006). 26 Letter from G. Hogue, Regional Environmental Officer, U.S. Fish and Wildlife Service, to M.R. Salas, Secretary, FERC. 27 16 U.S.C. § 470 et seq. (2006). 28 36 C.F.R. Part 800 (2011). Project No. 2619 -012 -14- generally requires the Commission to consult with the State Historic Preservation Officer (SHPO) to determine whether and how a proposed action may affect historic properties, and to seek ways to avoid or minimize any adverse effects. 51. To satisfy these responsibilities, the Commission executed a PA with the North Carolina SHPO and invited Duke and the Eastern Band of Cherokee Indians29 to concur with the stipulations of the PA. Duke and the Eastern Band of Cherokee Indians concurred. The PA requires Duke to implement its HPMP for the term of any license issued for this project. Duke's "Historic Properties Management Plan, Mission Hydroelectric Project No. 2619 -012" filed August 7, 2006, is approved in Ordering Paragraph E. Execution of the PA demonstrates the Commission's compliance with section 106 of the NHPA. Article 407 requires the licensee to implement the PA and its approved HPMP. RECOMMENDATIONS OF FEDERAL AND STATE FISH AND WILDLIFE AGENCIES PURSUANT TO SECTION 106) OF THE FPA 52. Section 100)(1) of the FPA30 requires the Commission, when issuing a license, to include conditions based on recommendations by federal and state fish and wildlife agencies submitted pursuant to the Fish and Wildlife Coordination Act,31 to "adequately and equitably protect, mitigate damages to, and enhance fish and wildlife (including related spawning grounds and habitat)" affected by the project. 53. In response to the October 14, 2004 public notice that the project was ready for environmental analysis, Interior 32 filed 11 recommendations under section 100). North 29 The Eastern Band of Cherokee Indians is a federally- recognized tribe. While the project is not located on tribal land, the Eastern Band of Cherokee Indians expressed an interest in reviewing cultural resources reports and working with Duke to develop and implement the HPMP. 3016 U.S.C. § 8030)(1) (2006). 31 16 U.S.C. § 661 et seq. (2006). 32 See Interior filing of December 10, 2004. Project No. 2619 -012 - 15 - Carolina WRC33 filed 15 recommendations, and North Carolina DENR 34 filed six recommendations under section 100).35 54. Four recommendations made by Interior, 10 recommendations made by North Carolina WRC, and three recommendations made by North Carolina DENR were determined to be outside the scope of section 100) and are discussed in the next section. This license includes the following conditions consistent with the remaining seven recommendations made by Interior, five remaining recommendations made by North Carolina WRC, and three remaining recommendations made by North Carolina DENR that are within the scope of section 100). Some recommendations were considered by staff to overlap and were combined for consistency, therefore staff considered a total of seven recommendations within the scope of section 100). 55. Six of the seven section 100) recommendations have been incorporated into this license by the certification and include: (1) Interior's, North Carolina WRC's, and North Carolina DENR's recommendations to operate the Mission Project in a run -of -river mode and maintain the reservoir level within ±0.1 to ±0.3 foot of normal target elevation; (2) Interior's, North Carolina WRC's, and North Carolina DENR's recommendations to provide downstream flows of 341 cfs (the September median flow) during reservoir drawdown and refill or develop an alternative to include agency notification for planned events during operational changes; (3) Interior's recommendation to dredge in the vicinity of the intake during high flow periods; (4) Interior's recommendation to conduct water quality monitoring during drawdown and refill; (5) Interior's and North Carolina WRC's recommendations to conduct and implement a sediment management study and plan; and (6) Interior's, North Carolina WRC's, and North Carolina DENR's recommendations to install a device for monitoring compliance with project operation. 56. In addition to those recommendations required by the certification, this license includes the following condition consistent with the remaining recommendation that is within the scope of section 100): install and maintain wood duck nesting boxes, after consultation with North Carolina WRC and the FWS, and submit a report to the resource agencies, beginning the second year on the condition, usage, and maintenance of the wood duck boxes (Article 403). 33 See North Carolina WRC filing of December 13, 2004. 34 See North Carolina DENR filing of December 13, 2004. 35 In an April 27, 2006 teleconference, staff conducted a 100) meeting with North Carolina WRC, North Carolina DENR, and Interior to resolve inconsistencies between the agencies' recommendations and the purposes and requirements of the FPA. Project No. 2619 -012 SECTION 10(a)(1) of the FPA -16- 57. Section 10(a)(1) of the FPA 36 requires that any project for which the Commission issues a license shall be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce; for the improvement and utilization of waterpower development; for the adequate protection, mitigation, and enhancement of fish and wildlife; and for other beneficial public uses, including irrigation, flood control, water supply, recreation, and other purposes. 58. Interior made four recommendations, North Carolina WRC made 10 recommendations, and North Carolina DENR made three recommendations under section 100) that are not specific measures to protect, mitigate damages to, or enhance fish and wildlife. Consequently, I do not consider these recommendations under section 100) of the FPA .37 Instead, I consider these recommendations under the broad public interest standard of section 10(a)(1) of the FPA. 59. The community commenters made two recommendations in their community proposal, including a license term for the Mission Project not to exceed 40 years. The other recommendation, developing a sediment removal plan, is included in the certification (Appendix A) and will not be discussed further. The license term is discussed separately. A. Recreation Measures 1. Canoe Portage, Boat Ramp, and Fishing Access 60. Duke proposes to construct: (1) a canoe portage around Mission dam and (2) a boat ramp downstream of the dam with a parking area for 4 to 6 vehicles, and for 4 to 6 vehicles with trailers. 61. North Carolina DENR and Interior recommended Duke provide: (1) a canoe portage around Mission dam and (2) a boat ramp downstream of the dam, with parking. North Carolina WRC recommended Duke provide: (1) a canoe portage; (2) a vehicle 3616 U.S.C. § 803(a)(1) (2006). 37 Some section 10(a)(1) recommendations were considered by staff to overlap and were combined for consistency. Two of North Carolina WRC's recommendations overlapped with recommendations made by Interior, two recommendations made by North Carolina DENR overlapped with a recommendation made by Interior. Therefore, staff considered a total of 13 recommendations within the scope of section 10(a)(1). Project No. 2619 -012 -17- unloading site upstream of the dam; and (3) barrier -free bank fishing facilities at Mission Reservoir and downstream of the dam. 62. In the EA '38 staff recommended Duke's proposal and the agencies' recommendations to provide for a canoe portage around Mission dam and a boat ramp downstream of the dam with parking to accommodate the launching of boats, which would allow boaters and anglers access to the Hiwassee River. 63. In the EA,39 staff did not recommend adopting North Carolina WRC's recommendation that Duke provide a vehicle unloading site upstream of the dam because the proposed canoe portage would be available for launching boats. In addition, there is a river access site located approximately 1 mile upstream of the Mission Project at the Sweetwater Community Park. Further, the EA found that barrier -free bank fishing facilities at the Mission Reservoir and downstream of the dam would not be feasible due to site constraints which would preclude safe public access. 64. I agree with staff findings, and therefore, Article 405 requires Duke to develop and implement a Recreation Plan that provides for a canoe portage around Mission dam and a boat ramp downstream of the dam with parking for 4 to 6 vehicles, and for 4 to 6 vehicles with trailers. 2. Trails 65. Duke proposes to construct a 2,218- foot -long, non - motorized trail on Duke -owned land along the abandoned Peavine Railroad right -of -way, extending from the Mission Project powerhouse upstream to the Carroll Lake outfall to provide for wildlife viewing. 66. North Carolina WRC and the Alliance recommended Duke provide access along the entire length of the Mission Reservoir for wildlife viewing by improving the 12,000 - foot -long abandoned Peavine Railroad right -of -way. The EA 40 noted that Duke filed with the Commission a map showing land ownership associated with the abandoned Peavine Railroad right -of -way in its response to the Commission's additional information request. Duke also noted eight existing trails in the project area. As discussed in the EA and Duke's filing, Duke commented it would be difficult to improve the almost 12,000 - foot -long Peavine Railroad right -of -way because ownership of approximately 6,700 feet 38 See EA at 205 -06. 39 Id. at 206. 40 Id. at 208. Project No. 2619 -012 - 18- of the property is in dispute.41 Of the remaining, undisputed 5,238 feet, the EA42 noted 3,020 feet is not suitable for development of a trail, as it would entail crossing the Carroll Lake outfall, which would present site engineering challenges on difficult terrain. Staff, therefore, did not recommend North Carolina WRC's or the Alliance's recommendations for improving the almost 12,000- foot -long abandoned Peavine Railroad right -of -way. 67. Staff, however, recommended Duke's proposal to construct, along the abandoned Peavine Railroad right -of -way owned by Duke, an estimated 2,218- foot -long, non - motorized trail to provide public access to the Mission Reservoir for wildlife viewing. With the existing eight trails in the project area and Duke's proposal to construct the non - motorized trail, there would be adequate recreation opportunities for public access and wildlife viewing. 43 The Alliance recommended the trail should be barrier -free to provide access for disabled persons. Staff found developing the trail as barrier -free would be difficult due to the steep terrain and therefore did not recommend the Alliances' recommendation. I agree with staff findings. Article 405 requires Duke to construct and maintain a 2,218- foot -long, non - motorized trail on Duke -owned land along the abandoned Peavine Railroad right -of -way from the Mission Project powerhouse to the Carroll Lake outfall. 3. Free Public Access and Recreation Easements 68. North Carolina WRC recommended Duke: (1) ensure that all recreation facilities are open to the public free of charge and (2) convey, to an unspecified entity, recreation easements to all recreation facilities within 2 years of license issuance, or at least 90 days prior to selling or transferring any project property. In the EA '44 staff did not recommend adopting these measures. The Commission's regulations at 18 C.F.R. section 2.7 (2011) allow a licensee to charge reasonable fees to users of such facilities in order to help defray the cost of constructing, operating, and maintaining such facilities. Duke, as licensee, will own, operate, and maintain the project recreation facilities, and as such, the recreation facilities would not be conveyed to another entity without Commission approval. In the event that the Mission Project license is surrendered, the disposition of Duke's recreation facilities would be determined at that time. Therefore, I am not adopting North Carolina WRC's recommendations. 41 See Duke's filing of January 5, 2004. Duke and several entities claim ownership to the approximate 6,700 feet of land along the abandoned Peavine Railroad right -of -way. 42 See EA at 210. 43 Id. at 209. 44 Id. at 212. Project No. 2619 -012 B. Shoreline Management Plan -19- 69. Duke, as part of its license application, filed a draft Project Reservoir and Land Management Plan and Shoreline Management Guidelines (Shoreline Management Guidelines)45 that include provisions for eight projects, including Bryson, Dillsboro'46 Franklin, Mission, East Fork, West Fork, and Nantahala Projects, as well as the Queens Creek Project No. 2694.47 The Shoreline Management Guidelines establish a framework to protect environmental resources at the projects, and enhance public access to the projects' lands and waters. 70. Interior and North Carolina WRC recommended Duke implement its Shoreline Management Guidelines as drafted. The Alliance commented that a Shoreline Management Plan for the Mission Project is needed because Duke does not have a separate plan for the Mission Project. 71. In the EA,48 staff recommended adopting the measures contained in the Shoreline Management Guidelines. However, staff noted the Shoreline Management Guidelines address all of the above projects, and recommended Duke develop and implement a separate Shoreline Management Plan for each of its projects, including the Mission Project. 72. Condition 9 of the certification requires Duke to develop a Shoreline Management Plan for the Mission Project, but does not include any details. Therefore, Article 406 requires Duke to file for Commission approval a Shoreline Management Plan that incorporates the provisions of Duke's Shoreline Management Guidelines, specifically pertaining to the Mission Project. C. Species Diversity Plan 73. North Carolina WRC recommended Duke consult with the North Carolina WRC and FWS to determine appropriate methods to increase species diversity in the watershed. North Carolina WRC49 asserts that fish movement is inhibited by the Mission dam, thereby reducing fishery and aquatic diversity. 45 See License Application, filed July 22, 2003, Volume I, Appendix 3. 46 120 FERC ¶ 61,054 (2007). 47 98 FERC ¶ 62,214 (2002). 48 See EA at 274 -75. 49 See North Carolina WRC filing of March 8, 2004. Project No. 2619 -012 -20- 74. The EA 50 noted that fish surveys resulted in the collection of a diverse assemblage of cold and warmwater fish species, both upstream of, and downstream from, the Mission dam. Although the dam acts as a barrier for upstream and downstream fish movement, the effect depends on whether a species has an obligatory need to move past the dam to other river reaches to maintain life stages. With regard to the species of concern in the Hiwassee River that exhibit these patterns of movement within the river system (such as, river redhorse, shorthead redhorse, mottled sculpin and various darter species), there is a lack of information documenting their presence in the project area. Therefore, I am not requiring a species diversity plan as part of the license. D. Project Operations 75. This license requires, in Article 402, Duke to operate the Mission Project in run - of -river mode and maintain the water surface elevation of the Mission Reservoir at 1,657.67 feet msl, +0.1 to ±0.3 foot,51 except during droughts or emergency situations. Operating the project in a run -of -river mode would protect water quality, aquatic biota, and aquatic habitat, by minimizing fluctuations of water surface levels both upstream and downstream of the project. Run -of -river operation would provide adequate protection of fish and other aquatic organisms that rely on near -shore habitat for feeding, spawning, and cover, as well as aquatic vegetation beds near the shoreline. The Lake Level and Flow Management Plan, required by Conditions 6 and 7 of the certification and included in Article 402, will provide a means to monitor project operation and assure compliance with run -of -river operation. 76. In addition, the Maintenance and Emergency Protocol, required by Condition 8 of the certification, includes a 341 -cfs minimum flow or inflow, if less, during operating emergencies. During emergency situations, which may alter run -of -river operation and reduce flows downstream of the Mission dam, providing a minimum flow into the project tailrace would assure that the Hiwassee River downstream of the dam would not be dewatered and downstream fisheries and aquatic resources are protected. Therefore, I am also including this measure in Article 402. 50 See EA at 83 -85. sl As noted above, when two or three hydro units are operating, the range is +0.1 foot for 99 percent of the year and ±0.3 foot for 1 percent of the year, and when fewer than two hydro units are operating, it is ±0.3 foot. See EA at 268 -69. Project No. 2619 -012 -21- OTHER ISSUES 1. Review of License Application and Evidentiary Hearing 77. Donald Beam contends that Duke's application is flawed and should be denied, but he does not identify or cite any specific flaws. During the license application review process, staff did not find any flaws or deficiencies in the license application, nor any inconsistencies with the statutory and regulatory requirements of the Commission. 78. Donald Beam also asserts that an evidentiary hearing is needed to consider material issues of fact that have been omitted in the relicensing process, such as the failure to disclose the existence of a private subdivision access road and a private road easement. Donald Beam does not indicate the location of the private access road or easement to which he refers, but based upon available information in Duke's January 5, 2004 filing, staff assumes Donald Beam is referring to a portion of the abandoned Peavine Railroad right -of -way for which Larry and Patsy Raby hold an easement. Duke explained in its 2004 filing that in 1988, the Rabys purchased from Duke's predecessor, Nantahala Power and Light Company, a private road easement along the abandoned Peavine Railroad right -of -way, which the Rabys currently use to access their property. In light of the information Duke has provided, there has been no failure to disclose the existence of a private access road or easement. 79. Alliance similarly contends that an evidentiary hearing is required because there are material issues of fact in dispute, such as the lack of response to a request for a trail along the former railway bed (abandoned Peavine Railroad right -of -way) on the north shore of Mission Reservoir. As discussed in this order, infra, staff addressed the need for, and feasibility of, a non - motorized trail along the almost 12,000- foot -long abandoned Peavine Railroad right -of -way and concluded that development of a 2,218- foot -long, non - motorized trail would be appropriate. 80. Where, as here, a paper hearing provides a sufficient basis for resolving the material issues of fact in a proceeding, a trial -type evidentiary hearing is not necessary. 52 2. Need for an Environmental Impact Statement 81. Donald Beam stated that the relicensing proceeding does not address the potential cumulative impacts of a private subdivision access road and a private road easement adjacent to Mission Reservoir. Donald Beam stated that additional studies in recreational use, wildlife habitat, and all other environmental areas, which could be affected by 52 See Citizens for Allegan County v. FPC 414 F.2d 1125 (D.C. Cir. 1969). Project No. 2619 -012 -22- private use, as well as an environmental impact statement (EIS), are needed to address this concern. The Alliance commented that the impacts of the Mission Project are significant and an EIS is needed. 82. Neither commenter identified additional information or studies to be undertaken beyond what is in the record. During the relicensing proceeding for the Mission Project, the EA 53 noted Duke conducted studies, after consultation with the stakeholders, which included, among other studies, water quality, wildlife habitat, and recreation use. Based on the best available information, including the results of the studies, staff considered the potential cumulative impacts on water quality, aquatic resources, riverine habitat, and recreation resources associated with Duke's proposed action, including the continued operation of the Mission Project, Nantahala Project No. 2692, and the Franklin Project No. 2603 in combination with other activities on the affected river reaches. 54 83. The test for determining the need for an EIS is whether the action is a major federal action significantly affecting the quality of the human environment .55 The test for determining if the potential impacts are significant is twofold: 56 (1) the extent to which the action will cause adverse environmental effects in excess of those created by existing uses in the area affected by it; and (2) the absolute, quantitative adverse environmental effects of the action itself, including the cumulative harm that results from its contribution to existing adverse conditions or uses in the affected area. 84. Staff found the effects of the Mission Project were not significant and would be reduced through specific mitigation measures. The EA sets forth the basis for a staff finding of no significant impact, and therefore, an EIS is not required. Furthermore, with the conditions that are in the license, any unavoidable adverse effects would be reduced below the threshold of significance. 53 See EA at 64, 124, and 176. 54 Id. at 33 -34, 70 -71, 121 -24, and 213. 55 42 U.S.C. § 4332(2)(c) (2006). 56 Hanly v. Kleindienst, 471 F.2d 823, 830 (2nd Cir. 1972). Project No. 2619 -012 3. Project Boundary -23- 85. North Carolina WRC and the Interior recommended Duke provide more precise mapping for the existing Mission Project boundary. The Alliance commented that the project boundary is not adequately defined. In the EA, staff found the Mission Project boundary did not show the location of proposed project recreation facilities and recommended Duke file revised Exhibit G drawings .57 Article 203 requires Duke to file revised Exhibit G drawings. 86. North Carolina DENR recommended Duke expand the current project boundary to include all Duke -owned lands around the Mission Reservoir and along the Hiwassee River. In the EA,sg staff did not recommend adopting North Carolina DENR's recommendation because the project boundary is meant to include only those lands necessary for project operation and other project purposes. Duke has proposed a project boundary that encompasses the lands necessary for the safe and efficient operation and maintenance of the project, and other specified project purposes, such as the protection of environmental and cultural resources, including project recreation facilities, at the Mission Project. ADMINISTRATIVE PROVISIONS A. Annual Charges 87. The Commission collects annual charges from licensees for administration of the FPA. Article 201 provides for the collection of funds for administration of the FPA. B. Exhibit F and G drawings 88. The Commission requires licensees to file sets of approved project drawings on microfilm and in electronic file format. Article 202 requires the filing of the approved Exhibit F drawings in those formats. 89. The Exhibit G drawings filed with the license application and the revised Exhibit G drawings, filed April 2, 2009, do not show the proposed project recreation facilities within the project boundary. The Exhibit G drawings must show all approved project features; therefore, I am not approving the project boundary drawings. Article 203 requires Duke to file revised Exhibit G drawings pursuant to §§ 4.39 and 4.41 of the Commission's regulations. 57 See EA at 161. 58 Id. at 287. Project No. 2619 -012 -24- C. Use and Occupancy of Project Lands and Waters 90. Requiring a licensee to obtain prior Commission approval for every use or occupancy of project land would be unduly burdensome. Therefore, Article 410 allows the licensee to grant permission, without prior Commission approval, for the use and occupancy of project lands for such minor activities as landscape planting. Such uses must be consistent with the purposes of protecting and enhancing the scenic, recreational, and environmental values of the project. D. Repair of Generating Units 91. The Mission Project has three generating units, the 500 -kW generating unit No. 1, 500 -kW unit No. 2, and 800 -kW unit No. 3. Generating unit No. 1 has been inoperable since 2005 due to bearing damage. Generating unit No. 2 has been inoperable since 2009 due to debris damage. By letter filed May 17, 2010, Duke proposes to complete rehabilitation of these units by December 2012. Article 301 requires Duke to file, within 60 days of license issuance, a plan and schedule for repairing the inoperable units. E. Review of Final Plans and Specifications 92. This license requires, in Article 405, that Duke construct new recreation facilities. Article 302 requires the licensee to provide the Commission's Division of Dam Safety and Inspection Atlanta Regional Office (D2SI -ARO) with final plans and specifications for the recreation facilities. STATE AND FEDERAL COMPREHENSIVE PLANS 93. Section 10(a)(2)(A) of the FPA'59 requires the Commission to consider the extent to which a project is consistent with federal or state comprehensive plans for improving, developing, or conserving a waterway or waterways affected by the project .60 Under section 10(a)(2)(A), federal and state agencies filed 37 comprehensive plans that address various resources in North Carolina. Of these, the staff identified and reviewed 10 comprehensive plans that are relevant to this project .61 No conflicts were found. 59 16 U.S.C. § 803(a)(2)(A) (2006). 60 Comprehensive plans for this purpose are defined at 18 C.F.R. § 2.19 (2011). 61 The list of applicable plans can be found in section IX of the EA for the project. In addition to these comprehensive plans, staff reviewed the North Carolina Wildlife Action Plan, dated December 2005, and found no conflicts. Project No. 2619 -012 APPLICANT'S PLANS AND CAPABILITIES -25- 94. In accordance with sections 10(a)(2)(C) and 15(a) of the FPA '62 Commission staff evaluated Duke's record as a licensee with respect to the following: (1) conservation efforts; (2) compliance history and ability to comply with the new license; (3) safe management, operation, and maintenance of the project; (4) ability to provide efficient and reliable electric service; (5) need for power; (6) transmission services; (7) cost effectiveness of plans; and (8) actions affecting the public. I accept the staffs findings in each of the following areas. A. Conservation Efforts 95. Section 10(a)(2)(C) of the FPA requires the Commission to consider the extent of electricity consumption efficiency improvement programs in the case of license applicants primarily engaged in the generation or sale of electric power, like Duke. Duke has provided conservation services for its electricity customers since 1971. Duke has several programs to promote conservation and energy efficiency for residential, commercial, industrial, and agricultural customers, including: (1) making available special electric rates to customers who modify or build their homes to meet insulation and other energy conservation requirements and to large industrial customers that shift usage from peak times; (2) providing the public with energy saving tips through local advertisements; (3) making available an online energy audit suitable for individual residences or small business; and (4) providing on -site energy needs assessments along with recommendations on how to solve energy - related problems for larger businesses. These programs show that Duke is making an effort to conserve electricity and has made a satisfactory good faith effort to comply with section 10(a)(2)(C) of the FPA. B. Compliance History and Ability to Comply with the New License 96. Based on a review of Duke's compliance with the terms and conditions of the existing license, staff finds Duke's overall record of making timely filings and compliance with its license is satisfactory. Therefore, staff believes Duke can satisfy the conditions of a new license. C. Safe Management, Operation, and Maintenance of the Project 97. Staff has reviewed Duke's management, operation, and maintenance of the Mission Project pursuant to the requirements of 18 C.F.R. Part 12 and the Commission's Engineering Guidelines. Staff concludes that the dam and other project works meet the Commission's Engineering Guidelines and criteria, and that there is no reason to believe 6216 U.S.C. §§ 803(a)(2)(C) and 808(a) (2006). Project No. 2619 -012 -26- that Duke cannot continue to safely manage, operate, and maintain these facilities under a new license. D. Ability to Provide Efficient and Reliable Electric Service 98. Staff has reviewed Duke's plans and its ability to operate and maintain the project in a manner most likely to provide efficient and reliable electric service. Duke has been operating the project within the constraints of the existing license and has proposed a reasonable time schedule to refurbish and repair the inoperable generating units. Staff concludes that Duke is capable of operating the project to provide efficient and reliable electric service in the future. E. Need for Power 99. To assess the need for power, we looked at the needs in the operating region in which the project is located. The Mission Project is located within the Virginia- Carolinas area of the Southeastern Electric Reliability Council (SERC) region, which includes Virginia, North Carolina, and South Carolina. SERC expects capacity resources will be sufficient to provide adequate and reliable service for forecast demands. The capacity resource margin for 2005 was 13.8 percent. The forecast average annual demand growth rate was 2.0 percent. The 2005 summer total internal demand forecast was 161,811 MW, and the forecast for 2013 is 191,459 MW. Within the Virginia- Carolinas region, the forecast 2005 summer peak demand was 56,069 MW, and the 2013 summer peak demand is forecast to be 65,831, an average growth rate of 2.1 percent. SERC anticipates that capacity, in addition to the currently planned capacity, will be needed to maintain reliability. The Mission Project, as licensed, will continue to provide about 1.8 MW of this demand. Staff concludes that the project's power, low cost, and contribution to the region's diversified generation mix will help meet a need for power in the region. F. Transmission Services 100. Electric power generated from the powerhouse connects to the grid at the adjacent non - project sub - station. No changes are recommended or proposed that would affect its own or other transmission services for continued delivery of electric power to the region. G. Cost Effectiveness of Plans 101. Duke plans to make a number of facility and operational modifications to both improve project generating capability and enhance environmental resources affected by the project. Based on Duke's record as an existing licensee, staff concludes that these proposals are likely to be carried out in a cost - effective manner. Project No. 2619 -012 -27- H. Actions Affecting the Public 102. Duke provided extensive opportunity for public involvement in the development of its application for a new license for the Mission Project. The Mission Project generates electricity that is used to service Duke's customers. Duke pays taxes to local and state governments. There is no reason to doubt that Duke will implement the various environmental enhancement measures approved in this license. These measures discussed in this order and in the EA, as well as the power to be generated by the project, will benefit the public. PROJECT ECONOMICS 103. In determining whether to issue a new license for an existing hydroelectric project, the Commission considers a number of public interest factors, including the economic benefits of project power. Under the Commission's approach to evaluating the economics of hydropower projects, as articulated in Mead Corp.,63 the Commission uses current costs to compare the costs of the project and likely alternative power with no forecasts concerning potential future inflation, escalation, or deflation beyond the license issuance date. The basic purpose of the Commission's economic analysis is to provide a general estimate of the potential power benefits and the costs of a project, and of reasonable alternatives to project power. The estimate helps to support an informed decision concerning what is in the public interest with respect to a proposed license. 104. In applying this analysis to the Mission Project, Commission staff has considered two options: Duke's proposal and the project as licensed herein. As proposed by Duke, the levelized annual cost of operating the Mission Project is $337,740, or $42.21 per MWh. The proposed project would generate an estimated average of 8,002 MWh of energy annually. When the estimate of average generation is multiplied by the alternative power cost of $40.77 per MWh ,64 the result is a total value of the project's power of $326,240 in 2005 dollars. To determine whether the proposed project is economically beneficial, staff subtracts the project's cost from the value of the project's power. 65 Therefore, in the first year of operation, the project would cost $11,490, or $1.44 per MWh, more than the likely alternative cost of power. 63 72 FERC ¶ 61,027 (1995). 64 The alternative power cost of $40.77 per MWh is based on information obtained from Duke. 65 Details of staffs economic analysis for the project, as licensed herein, and for various alternatives are included in the EA at 245 -51. Project No. 2619 -012 -28- 105. As licensed herein with the mandatory conditions and staff measures, the levelized annual cost of operating the project would be about $338,950 ($42.36/MWh). Average annual generation and the value of the project power would be similar to Duke's proposal. Subtracting the project's cost from the value of power in the first year of operation the project would cost $12,710 ($1.59 /MWh) more than the likely alternative cost of power. 106. In considering public interest factors, the Commission takes into account that hydroelectric projects offer unique operational benefits to the electric utility system (ancillary service benefits). These benefits include their ability to help maintain the stability of a power system, such as by quickly adjusting power output to respond to rapid changes in system load; and to respond rapidly to a major utility system or regional blackout by providing a source of power to help restart fossil -fuel based generating stations and put them back on line. 107. Although the analysis shows that the project as licensed herein would cost more to operate than the estimated cost of alternative power, it is the applicant who must decide whether to accept this license and any financial risk that entails. 108. Although staff does not explicitly account for the effects inflation may have on the future cost of electricity, the fact that hydropower generation is relatively insensitive to inflation compared to fossil fueled generators is an important economic consideration for power producers and the consumers they serve. This is one reason project economics is only one of the many public interest factors the Commission considers in determining whether or not, and under what conditions, to issue a license. COMPREHENSIVE DEVELOPMENT 109. Sections 4(e) and 10(a)(1) of the FPA66 require the Commission to give equal consideration to the power development purposes and to the purposes of energy conservation, the protection, mitigation of damage to, and enhancement of fish and wildlife, the protection of recreational opportunities, and the preservation of other aspects of environmental quality. Any license issued shall be such as in the Commission's judgment will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for all beneficial public uses. The decision to issue a new license for this project, and the terms and conditions included herein, reflects such consideration. 110. The EA for the Mission Project contains background information, analysis of effects, and support for related license articles. I conclude based on the record of this proceeding, including the EA and the comments thereon, that licensing the Mission 6616 U.S.C. §§ 797(e) and 803(a)(1) (2006). Project No. 2619 -012 -29- Project as described in this order would not constitute a major federal action significantly affecting the quality of the human environment. The project will be safe if operated and maintained in accordance with the requirements of this license. 111. Based on an independent review and evaluation of the project, recommendations from the resource agencies and other stakeholders, and the no- action alternative, as documented in the EA, I find that issuance of a new license for the Mission Project, with the conditions attached hereto, will serve the public interest because it is best adapted to the comprehensive development of the Hiwassee River. 112. I selected this alternative because: (1) issuance of a new license will serve to maintain a beneficial, dependable, and an inexpensive source of electric energy; (2) the required environmental measures will protect and enhance fish and wildlife resources, water quality, recreation resources, and historic properties; and (3) the 1.8 MW of electric capacity comes from renewable resources, which does not contribute to pollution. LICENSE TERM 113. Section 15(e) of the FPA 67 provides that any new license issued shall be for a term that the Commission determines to be in the public interest, but not less that 30 years or more than 50 years. The Commission's general policy is to establish 30 -year terms for projects with little or no redevelopment, new construction, new capacity, or environmental mitigation and enhancement measures; 40 -year terms for projects with a moderate amount of such activities; and 50 -year terms for projects with extensive measures. 68 This license authorizes a minor amount of construction, no new capacity, and only a minor amount of new environmental mitigation and enhancement measures. Accordingly, I will issue this license for a term of 30 years. The Director orders: (A) This license is issued to Duke Energy Carolinas, LLC (licensee), for a period of 30 years, effective the first day of the month in which this order is issued, to construct, operate, and maintain the Mission Hydroelectric Project. This license is subject to the terms and conditions of the Federal Power Act (FPA), which is incorporated by reference as part of this license, and subject to the regulations the Commission issues under the provisions of the FPA. 6716 U.S.C. § 808(e) (2006) 68 See Consumers Power Co., 68 FERC ¶ 61,077 at 61,383 -84 (1994). Project No. 2619 -012 -30- (B) The project consists of: (1) All lands, to the extent of the licensee's interests in these lands, described in the project description and the project boundary discussion of this order. (2) Project works which include: (1) a 397 - foot -long, 50- foot -high concrete dam, which includes beginning at the left abutment (a) a 66- foot -long non - overflow concrete gravity section, (b) a 126- foot -long gated spillway section with seven bays and Tainter gates, (c) a 72- foot -long non - overflow concrete gravity section, (d) a 54- foot -long intake section with three intake bays, and (e) a 79- foot -long non - overflow concrete gravity section; (2) a 47 -acre reservoir (Mission Reservoir) at full pond elevation 1,658.17 feet mean sea level; (3) three 56- foot -long concrete penstocks; (4) a powerhouse containing three turbine /generating units, the 500- kilowatt (kW) generating unit No. 1, the 500 -kW generating unit No. 2, and the 800 -kW generating unit No. 3, with a total installed capacity of 1.8 megawatts; and (5) appurtenant facilities. The project works generally described above are more specifically shown and described by those portions of Exhibits A and F shown below: Exhibit A: The following sections of Exhibit A filed on July 22, 2003 and further clarified on January 7, 2004 and May 27, 2004: Exhibit A — Description of Project, page Al -1 through Al -9. Exhibit F: The following sections of Exhibit F filed on July 22, 2003: Exhibit F- FERC Drawing No. 2619- Sheet F -1 1001 Sheet F -2 1002 Sheet F -3 1003 Sheet F -4 1004 Description Dam Plan & Elevation Dam Sections Powerhouse and Intake Plan Powerhouse and Intake Cross Section (3) All of the structures, fixtures, equipment or facilities used to operate or maintain the project, all portable property that may be employed in connection with the project, and all riparian or other rights that are necessary or appropriate in the operation or maintenance of the project. (C) The Exhibits A and F described above are approved and made part of this license. The Exhibit G drawings filed as part of the application for license do not conform to Commission regulations and are not approved. The Exhibit G drawings do not show the project recreation facilities within the project boundary. The normal full pond elevation for the Mission Reservoir is identified as 1,658.4 feet mean sea level (msl) in Exhibit G, while other records indicate that the normal full pond elevation is 1,658.17 Project No. 2619 -012 feet msl. -31- (D) This license is subject to the conditions submitted by the North Carolina Department of Environmental and Natural Resources, Division of Water Quality under section 401(a)(1) of the Clean Water Act, 33 U.S.C. § 1341(a)(1)(2006), as those conditions are set forth in Appendix A to this order. (E) The Historic Properties Management Plan, Mission Hydroelectric Project No. 2619, filed by the licensee on August 7, 2006, is approved and made a part of this license. Article 407 requires implementation of the Programmatic Agreement and the plan. (F) This license is also subject to the articles set forth in Form L -10 (October 1975), entitled "Terms and Conditions of License for Constructed Major Project Affecting the Interests of Interstate or Foreign Commerce" (see 54 FPC 1799 et seq.), as reproduced at the end of this order, and the following additional articles: Article 201. Administrative Annual Charges. The licensee shall pay the United States annual charges, effective the first day of the month in which this license is issued, and as determined in accordance with the provisions of the Commission's regulations in effect from time to time, for the purposes of reimbursing the United States for the cost of administration of Part I of the Federal Power Act. The authorized installed capacity for that purpose is 1.8 megawatts. Article 202. Exhibit E Drawings. Within 45 days of the license issuance, the licensee shall file the approved Exhibit F drawings in aperture card and electronic file formats. (a) Three sets of the approved exhibit drawings shall be reproduced on silver or gelatin 35mm microfilm. All microfilm shall be mounted on type D (3 -1/4" X 7 -3/8 ") aperture cards. Prior to microfilming, the FERC Project- Drawing Number (i.e., P -2619- 1001 through P- 2619 -1004) shall be shown in the margin below the title block of the approved drawing. After mounting, the FERC Drawing Number shall be typed on the upper right corner of each aperture card. Additionally, the Project Number, FERC Exhibit (i.e., F -1, etc.), Drawing Title, and date of this license shall be typed on the upper left corner of each aperture card. Two of the sets of aperture cards shall be filed with the Secretary of the Commission, ATTN: OEP /DHAC. The third set shall be filed with the Commission's Division of Dam Safety and Inspections Atlanta Regional Office. (b) The licensee shall file two separate sets of exhibit drawings in electronic raster format with the Secretary of the Commission, ATTN: OEP /DHAC. A third set Project No. 2619 -012 -32- shall be filed with the Commission's Division of Dam Safety and Inspections Atlanta Regional Office. Exhibit F drawings must be identified as Critical Energy Infrastructure Information (CEII) material under 18 C.F.R. § 388.113(c). Each drawing must be a separate electronic file, and the file name shall include: FERC Project- Drawing Number, FERC Exhibit, Drawing Title, date of this license, and file extension in the following format [P- 2619 -1001, F -1, Description, MM- DD- YYYY.TIF]. Electronic drawings shall meet the following format specification: IMAGERY — black & white raster file FILE TYPE — Tagged Image File Format, (TIFF) CCITT Group 4 RESOLUTION — 300 dpi desired, (200 dpi min) DRAWING SIZE FORMAT — 24" X 36" (min), 28" X 40" (max) FILE SIZE — less than 1 MB desired Article 203. Exhibit G Drawings. Within 90 days of license issuance, the licensee shall file, for Commission approval, revised Exhibit G drawings enclosing within the project boundary all principal project works necessary for operation and maintenance of the project, including the proposed project recreation facilities. The Exhibit G drawings must comply with sections 4.39 and 4.41 of the Commission's regulations. Article 301. Inoperable Generating Unit(s). Within 60 days of license issuance, the licensee shall file for Commission approval, a plan and schedule for repairing the inoperable generating units. The units shall be made operable and begin generating no later than December 31, 2012, as specified in the licensee's May 17, 2010 filing with the Commission. Article 302. Commission's Review of Contract Plans and Specifications. At least 60 days prior to the start of construction of recreation facilities, the licensee shall submit one copy of its plans and specifications to the Commission's Division of Dam Safety and Inspections (D2SI)- Atlanta Regional Engineer, and two copies to the Commission (one of these shall be a courtesy copy to the Director, D2SI). The submittal must also include a Soil Erosion and Sediment Control Plan. The licensee may not begin any land - disturbing activities until the D2SI- Atlanta Regional Engineer has reviewed and commented on the plans and specifications, determined that all preconstruction requirements have been satisfied, and authorized the start of construction. Project No. 2619 -012 Article 401. Commission Approval, Notification, and Filing of Amendments. (a) Requirement to File Plans -33- Two conditions of the North Carolina Department of Environment and Natural Resources, Division of Water Quality (North Carolina DWQ) water quality certification (Appendix A to this order) require the licensee to implement plans that have not yet been developed prior to Commission approval. This license requires these plans to be developed and filed with the Commission, for approval, prior to implementation. These plans are listed below. North Carolina DWQ Condition No. Addendum /Appendix (Section) Description Due Date Nantahala Area Run -of -River Projects Sediment Study Plan Within 120 days Addendum No. 3 September Median prior to 7 (Long -Term Sediment Flow Post - License conducting Management Plan Development: Study Plan study Section 3; Sediment Management Plan Components) Within 180 days Nantahala Area Run -of -River Long -Term of completing 7 Projects Sediment Study Plan Sediment the Nantahala Addendum No. 3 Management Plan Area Run -of- River Projects Sediment Study Plan (b) Requirement to File Reports and Notifications Conditions 6, 7, and 8, respectively, of the certification (Appendix A to this order) require the licensee to prepare reports documenting the results of various studies and surveys, and to notify the North Carolina DWQ of the occurrence of certain events without filing the reports and notifications with the Commission. Each such submittal shall also be filed with the Commission. These are listed below. Project No. 2619 -012 -34- North Carolina DWQ Addendum /Appendix Description Due Date Condition (Section) No. Lake Level and Flow Notification of Management Plan meeting to determine After five full 6 Addendum No. 1 if operational calendar years of (Compliance Monitoring and changes are needed operation Reporting: `Reporting') to the plan Nantahala Area Run -of -River Reporting of project Projects Maintenance and operations with 8 Emergency Protocol fewer than two hydro Within 30 days of Appendix to Addendum No. 1 units for more than occurrence (Key Facts and Definitions: 60 consecutive days 'Returning to Normal' Reporting of Lake Level and Flow deviations to Within 30 days of 7 Management Plan discharge and lake occurrence Addendum No. 1 level fluctuations that vary from the plan Nantahala Area Run -of -River Projects Sediment Study Plan Addendum No. 3 September Median Within 60 days of 7 (Long -Term Sediment Flow Report completion Management Plan Development: Section 3; Sediment Management Plan Components) Nantahala Area Run -of -River Projects Maintenance and Notification when 8 Emergency Protocol temporary or Within 10 days Addendum No. 1 extended access area after an event (Abnormal Situations: A.1; A.2; closure events occur C; D; E.1; E.2; and F) The licensee shall file with the Commission documentation of consultation, and copies of comments and recommendations made by a consulted entity in connection with each report. (c) Requirement to File Amendment Applications Conditions 6 and 8 of the certification (Appendix A to this order) contemplate Project No. 2619 -012 -35- unspecified, long -term changes to the Nantahala Area Run -of -River Projects Maintenance and Emergency Protocol (Maintenance and Emergency Protocol) and the Lake Level and Flow Management Plan, but do not include notification of these changes or a timeframe for revisions. Changes to the Maintenance and Emergency Protocol and the Lake Level and Flow Management Plan shall not be implemented until Commission approval, after the filing of an application to amend the license. Article 402. Run -of River Operation and Monitoring Project Operations. To protect aquatic resources in the Hiwassee River, the licensee shall operate the Mission Hydroelectric Project in run -of -river mode, where instantaneous outflows approximate instantaneous inflows to the project. The licensee shall maintain the level of the Mission Reservoir in accordance with Addendum No. 1 (Lake Level and Flow Management Plan) of the water quality certification issued by the North Carolina Department of Natural Resources, Division of Water Quality (North Carolina DWQ) on July 30, 2010. The addendum includes specific targets for the headpond elevation during normal and emergency operations, and procedures for monitoring the headpond elevation. This shall include, but not be limited to, maintaining the Mission Reservoir: (1) within +0.3 foot of normal target elevation (1,657.67 feet mean sea level) when fewer than two hydro units are operating and (2) within +0.1 foot of the normal target elevation for 99 percent of the year, and within +0.3 foot of the normal target elevation for the remaining 1 percent of the year when two or more hydro units are operable. To protect aquatic resources downstream of the project, the licensee shall release a minimum flow to the project tailrace in accordance with the Appendix to Addendum No. 1 ( Nantahala Area Run -of -River Projects Maintenance and Emergency Protocol) of the water quality certification. This shall include, but not be limited to, providing a 341 cubic feet per second minimum flow (the September median flow), or inflow if less, to the Mission Project tailrace during emergency, equipment failure, maintenance, headpond drawdown, or other abnormal situations. The flow shall be provided through the project turbines, Tainter gates, or both. Run -of -river operation, headpond surface elevations, and the minimum flow may be temporarily modified if required by conditions beyond the control of the licensee, or for short periods upon mutual agreement with the North Carolina DWQ. If project operations are so modified, the licensee shall notify the Commission as soon as possible, but not later than 48 hours after each such incident, and shall provide a reason for the change in project operations. Article 403. Wood Duck Nesting Box Plan. Within 1 year of license issuance, the licensee shall file with the Commission for approval, a Wood Duck Nesting Box Plan for the Mission Hydroelectric Project. The plan shall include, but not be limited to, the number of proposed boxes and installation sites and an annual maintenance schedule. The number of wood duck nesting boxes and the installation sites shall be determined Project No. 2619 -012 -36- after consultation with the North Carolina Wildlife Resources Commission (North Carolina WRC) and the U.S. Fish and Wildlife Service (FWS). The licensee shall submit an annual report documenting the condition and usage of the nesting boxes by wood ducks to the North Carolina WRC and the FWS and file the annual report with the Commission by December 31 of each year. Any replacement or relocation of the nesting boxes shall be noted in the annual report along with documentation of consultation on nesting box relocation. The licensee shall include with the plan documentation of consultation, copies of recommendations on the completed plan after it has been prepared and provided to the entities above, and specific descriptions of how the entities' comments are accommodated by the plan. The licensee shall allow a minimum of 30 days for the entities to comment and to make recommendations before filing the plan with the Commission. If the licensee does not adopt a recommendation, the filing shall include the licensee's reasons, based on project- specific reasons. The Commission reserves the right to require changes to the plan. Implementation of the plan shall not begin until the licensee is notified by the Commission that the plan is approved. Upon Commission approval the licensee shall implement the plan, including any changes required by the Commission. Article 404. Reservation of Authority to Prescribe Fishways. Authority is reserved to the Commission to require the licensee to construct, operate, and maintain, or to provide for the construction, operation, and maintenance of such fishways as may be prescribed by the Secretary of the Interior pursuant to section 18 of the Federal Power Act. Article 405. Recreation Plan. Within 1 year of license issuance, the licensee shall file with the Commission for approval, a Recreation Plan for the Mission Hydroelectric Project. The Recreation Plan shall include the provisions proposed by the licensee in its July 22, 2003 license application, including, but not be limited to: (1) A description of (a) a canoe portage, including its length, around Mission dam; (b) a boat ramp downstream of the dam with a parking area for 4 to 6 vehicles, and for 4 to 6 vehicles with trailers; and (c) a 2,218- foot -long, non - motorized trail on licensee -owned land along the abandoned Peavine Railroad right -of -way on the north shore of the Mission Reservoir, extending from the Mission Project powerhouse to the Carroll Lake outfall; (2) a schedule for construction of the canoe portage, the boat ramp downstream of the dam with parking, and the 2,218- foot -long, non - motorized trail; (3) a description of soil erosion and sediment control measures to be used where ground - disturbing activities are proposed; (4) a provision for trash removal from the project recreation facilities; (5) a discussion of how the needs of the disabled were considered in the planning and design of the recreation facilities; (6) a provision for installation of a Project No. 2619 -012 -37- sign or signs at the recreation facilities pursuant to the Commission's regulations at 18 C.F.R. section 8.2; (7) a schedule for construction of the project recreation facilities; and (8) a provision for continued operation and maintenance of all project recreation facilities. The plan shall include appropriate site drawings, specifications, and a map or maps showing the type of recreation facilities and their location in relation to the project boundary. The Recreation Plan shall be developed after consultation with the U.S. Fish and Wildlife Service, the North Carolina Wildlife Resources Commission, and the North Carolina Division of Parks and Recreation. The licensee shall include with the plan documentation of consultation, copies of recommendations on the completed plan after it has been prepared and provided to the entities above, and specific descriptions of how the entities' comments are accommodated by the plan. The licensee shall allow a minimum of 30 days for the entities to comment and to make recommendations prior to filing the plan with the Commission. If the licensee does not adopt a recommendation, the filing shall include the licensee's reasons, based on project- specific reasons. The Commission reserves the right to require changes to the plan. Land - disturbing or land - clearing activities associated with the Recreation Plan shall not begin until the licensee is notified by the Commission that the plan is approved. Upon Commission approval the licensee shall implement the plan, including any changes required by the Commission. Article 406. Shoreline Management Plan. Within 1 year of license issuance, the licensee shall file with the Commission for approval a Shoreline Management Plan for the Mission Hydroelectric project to protect the scenic quality and environmental resources at the project. The plan shall incorporate the Shoreline Management Guidelines filed on July 22, 2003, Mission Hydroelectric Project License Application, Volume I, Appendix 3 that specifically pertain to the Mission Hydroelectric Project. The Shoreline Management Plan shall include, but not be limited to, the following items: (1) a list of land use management objectives and goals; (2) a list and description of the types of land use classifications, to include at a minimum: (a) private; (b) public recreation access; (c) environmentally sensitive areas; and (d) commercial; (3) a map or maps that clearly identifies the Mission Project boundary and the above land use classifications; (4) a description of the basis for the various land use classifications, including supporting documentation; (5) a description of allowable and prohibited uses for each of the above land use classifications; (6) a permitting program for allowable facilities and /or uses of the shoreline, including permit application procedures, monitoring, and enforcement provisions; (7) a provision for informing the public of the licensee's procedures for issuance of a permit and /or lease, including the application process; and (8) a provision to review, every 10 years, the adequacy of the Shoreline Management Plan to meet its stated goals and the need for any modifications to the plan. Project No. 2619 -012 -38- The Shoreline Management Plan shall be developed after consultation with the U.S. Fish and Wildlife Service, the North Carolina Wildlife Resources Commission, and the North Carolina State Historic Preservation Office. The licensee shall include with the plan documentation of consultation, copies of recommendations on the completed plan after it has been prepared and provided to the entities above, and specific descriptions of how the entities' comments are accommodated by the plan. The licensee shall allow a minimum of 30 days for the entities to comment and to make recommendations before filing the plan with the Commission. If the licensee does not adopt a recommendation, the filing shall include the licensee's reasons, based on project- specific reasons. The Commission reserves the right to require changes to the plan. Implementation of the plan shall not begin until the licensee is notified by the Commission that the plan is approved. Upon Commission approval the licensee shall implement the plan, including any changes required by the Commission. Article 407. Programmatic Agreement. The licensee shall implement the "Final Programmatic Agreement Among the Federal Energy Regulatory Commission and the North Carolina State Historic Preservation Officer for Managing Historic Properties that may be Affected by a License Issuing to Duke Power Company, LLC for the Continued Operation and Maintenance of the Mission Hydroelectric Project in Clay County, North Carolina," executed on June 14, 2006, and including but not limited to the approved Historic Properties Management Plan (HPMP), filed August 7, 2006, for the project. In the event that the Programmatic Agreement is terminated, the licensee shall continue to implement the provisions of its approved HPMP. The Commission reserves the authority to require changes to the HPMP at any time during the term of the license. Article 408. Pilot Study Plan. As required by Condition 6 and 7 of the section 401 Water Quality Certification, Addendum No. 3, the Nantahala Area Run -of -River Projects Sediment Study Plan, in the Sediment Removal Pilot Study section, issued by the North Carolina Department of Water Quality, for the Mission Hydroelectric Project, the licensee shall develop and implement a Pilot Study Plan to avoid environmental effects on downstream resources. The licensee shall file the plan at least 180 days prior to the first normal sediment removal operation conducted as the Pilot Study at the Mission Project. The Pilot Study Plan shall include, but not be limited to: (1) provisions for dredging that shall include measures to minimize the effect of project drawdown and sediment removal activities on environmental resources at the Mission Reservoir; (2) provisions for specific monitoring methods, locations, and frequencies to evaluate water quality, including inflow turbidity or suspended solids, and downstream effects on sensitive aquatic habitats within and downstream from the Mission Reservoir; (3) provisions for best management practices for removal and disposal of sediment from the Mission Reservoir; (4) a schedule for filing the Pilot Study report, as well as a Project No. 2619 -012 -39- schedule for future sediment removal, including project maintenance; and (5) provisions to review, once the Pilot Study is completed, the applicability of the Pilot Study results to the Nantahala Area Run -of -River Projects Sediment Study Plan. The Pilot Study Plan shall be developed after consultation with the U.S. Fish and Wildlife Service, the North Carolina Wildlife Resources Commission, the North Carolina Department of Environment and Natural Resources, the North Carolina Division of Water Quality, and the North Carolina Division of Water Resources. The licensee shall include with the plan documentation of consultation, copies of recommendations on the completed plan after it has been prepared and provided to the entities above, and specific descriptions of how the entities' comments are accommodated by the plan. The licensee shall allow a minimum of 30 days for the entities to comment and to make recommendations before filing the plan with the Commission. If the licensee does not adopt a recommendation, the filing shall include the licensee's reasons, based on project - specific reasons. The Commission reserves the right to require changes to the plan. Implementation of the plan shall not begin until the licensee is notified by the Commission that the plan is approved. Upon Commission approval the licensee shall implement the plan, including any changes required by the Commission. Article 409. Reservoir Drawdown Plan. As required by Condition 8 of the section 401 Water Quality Certification, included as an Appendix to Addendum No. 1, the Nantahala Area Run -of -River Projects Maintenance and Emergency Protocol, specifically in the: (a) Abnormal Situation Subsection A.1 — Scheduled Hydro Unit Maintenance, (b) Abnormal Situation Subsection B.1 — Scheduled Maintenance of the Normal Means of Providing Minimum Flows, and (c) Abnormal Situation, Subsection E.1 — Schedule Reservoir Drawdown, issued by the North Carolina Department of Water Quality for the Mission Hydroelectric Project, the licensee shall develop and implement a Reservoir Drawdown Plan to avoid environmental effects on downstream resources. The licensee shall file the plan at least 180 days prior to any planned drawdown. The Reservoir Drawdown Plan shall include, but not be limited to: (1) a description of measures implemented to reduce any effects of a project drawdown on the Mission Reservoir; (2) a description of timing for any planned and scheduled drawdowns occurring for maintenance and inspections to avoid environmental effects on sensitive aquatic habitats within and downstream from the Mission Reservoir; (3) a report to the agencies of any drawdown and /or refill event, including specific provisions to ensure the minimum flow of 341 cubic feet per second (September median flow) is maintained during scheduled drawdown and refill periods; and (4) agency notification of scheduled outages prior to drawdown and refill periods. The Reservoir Drawdown Plan shall be developed after consultation with the U.S. Project No. 2619 -012 -40- Fish and Wildlife Service, the North Carolina Wildlife Resources Commission, the North Carolina Department of Environment and Natural Resources, the North Carolina Division of Water Quality, and the North Carolina Division of Water Resources. The licensee shall include with the plan documentation of consultation, copies of recommendations on the completed plan after it has been prepared and provided to the entities above, and specific descriptions of how the entities' comments are accommodated by the plan. The licensee shall allow a minimum of 30 days for the entities to comment and to make recommendations before filing the plan with the Commission. If the licensee does not adopt a recommendation, the filing shall include the licensee's reasons, based on project - specific reasons. The Commission reserves the right to require changes to the plan. Implementation of the plan shall not begin until the licensee is notified by the Commission that the plan is approved. Upon Commission approval the licensee shall implement the plan, including any changes required by the Commission. Article 410. Use and Occupancy. (a) In accordance with the provisions of this article, the licensee shall have the authority to grant permission for certain types of use and occupancy of project lands and waters and to convey certain interests in project lands and waters for certain types of use and occupancy, without prior Commission approval. The licensee may exercise the authority only if the proposed use and occupancy is consistent with the purposes of protecting and enhancing the scenic, recreational, and other environmental values of the project. For those purposes, the licensee shall also have continuing responsibility to supervise and control the use and occupancies, for which it grants permission, and to monitor the use of, and ensure compliance with the covenants of the instrument of conveyance for, any interests that it has conveyed, under this article. If a permitted use and occupancy violates any condition of this article or any other condition imposed by the licensee for protection and enhancement of the project's scenic, recreational, or other environmental values, or if a covenant of a conveyance made under the authority of this article is violated, the licensee shall take any lawful action necessary to correct the violation. For a permitted use or occupancy, that action includes, if necessary, canceling the permission to use and occupy the project lands and waters and requiring the removal of any non - complying structures and facilities. (b) The type of use and occupancy of project lands and waters for which the licensee may grant permission without prior Commission approval are: (1) landscape plantings; (2) non - commercial piers, landings, boat docks, or similar structures and facilities that can accommodate no more than 10 water craft at a time and where said facility is intended to serve single - family type dwellings; (3) embankments, bulkheads, retaining walls, or similar structures for erosion control to protect the existing shoreline; and (4) food plots and other wildlife enhancement. To the extent feasible and desirable to protect and enhance the project's scenic, recreational, and other environmental values, the licensee shall require multiple use and occupancy of facilities for access to project lands Project No. 2619 -012 -41- or waters. The licensee shall also ensure, to the satisfaction of the Commission's authorized representative, that the use and occupancies for which it grants permission are maintained in good repair and comply with applicable state and local health and safety requirements. Before granting permission for construction of bulkheads or retaining walls, the licensee shall: (1) inspect the site of the proposed construction, (2) consider whether the planting of vegetation or the use of riprap would be adequate to control erosion at the site, and (3) determine that the proposed construction is needed and would not change the basic contour of the reservoir shoreline. To implement this paragraph (b), the licensee may, among other things, establish a program for issuing permits for the specified types of use and occupancy of project lands and waters, which may be subject to the payment of a reasonable fee to cover the licensee's costs of administering the permit program. The Commission reserves the right to require the licensee to file a description of its standards, guidelines, and procedures for implementing this paragraph (b) and to require modification of those standards, guidelines, or procedures. (c) The licensee may convey easements or rights -of -way across, or leases of project lands for: (1) replacement, expansion, realignment, or maintenance of bridges or roads where all necessary state and federal approvals have been obtained; (2) storm drains and water mains; (3) sewers that do not discharge into project waters; (4) minor access roads; (5) telephone, gas, and electric utility distribution lines; (6) non - project overhead electric transmission lines that do not require erection of support structures within the project boundary; (7) submarine, overhead, or underground major telephone distribution cables or major electric distribution lines (69 -kV or less); and (8) water intake or pumping facilities that do not extract more than one million gallons per day from a project reservoir. No later than January 31 of each year, the licensee shall file three copies of a report briefly describing for each conveyance made under this paragraph (c) during the prior calendar year, the type of interest conveyed, the location of the lands subject to the conveyance, and the nature of the use for which the interest was conveyed. (d) The licensee may convey fee title to, easements or rights -of -way across, or leases of project lands for: (1) construction of new bridges or roads for which all necessary state and federal approvals have been obtained; (2) sewer or effluent lines that discharge into project waters, for which all necessary federal and state water quality certification or permits have been obtained; (3) other pipelines that cross project lands or waters but do not discharge into project waters; (4) non - project overhead electric transmission lines that require erection of support structures within the project boundary, for which all necessary federal and state approvals have been obtained; (5) private or public marinas that can accommodate no more than 10 water craft at a time and are located at least one -half mile (measured over project waters) from any other private or public marina; (6) recreational development consistent with an approved Exhibit R or approved report on recreational resources of an Exhibit E; and (7) other uses, if. (i) the amount of land conveyed for a particular use is five acres or less; (ii) all of the land conveyed is located at least 75 feet, measured horizontally, from project waters at normal Project No. 2619 -012 -42- surface elevation; and (iii) no more than 50 total acres of project lands for each project development are conveyed under this clause (d)(7) in any calendar year. At least 60 days before conveying any interest in project lands under this paragraph (d), the licensee must submit a letter to the Director, Office of Energy Projects, stating its intent to convey the interest and briefly describing the type of interest and location of the lands to be conveyed (a marked Exhibit G map may be used), the nature of the proposed use, the identity of any federal or state agency official consulted, and any federal or state approvals required for the proposed use. Unless the Director, within 45 days from the filing date, requires the licensee to file an application for prior approval, the licensee may convey the intended interest at the end of that period. (e) The following additional conditions apply to any intended conveyance under paragraph (c) or (d) of this article: (1) Before conveying the interest, the licensee shall consult with federal and state fish and wildlife or recreation agencies, as appropriate, and the State Historic Preservation Officer; (2) Before conveying the interest, the shall determine that the proposed use of the lands to be conveyed is not inconsistent with any approved Exhibit R or approved report on recreational resources of an Exhibit E; or, if the project does not have an approved Exhibit R or approved report on recreational resources, that the lands to be conveyed do not have recreational value; (3) The instrument of conveyance must include the following covenants running with the land: (i) the use of the lands conveyed shall not endanger health, create a nuisance, or otherwise be incompatible with overall project recreational use; (ii) the grantee shall take all reasonable precautions to ensure that the construction, operation, and maintenance of structures or facilities on the conveyed lands will occur in a manner that will protect the scenic, recreational, and environmental values of the project; and (iii) the grantee shall not unduly restrict public access to project waters; (4) The Commission reserves the right to require the licensee to take reasonable remedial action to correct any violation of the terms and conditions of this article, for the protection and enhancement of the project's scenic, recreational, and other environmental values. (f) The conveyance of an interest in project lands under this article does not in itself change the project boundaries. The project boundaries may be changed to exclude land conveyed under this article only upon approval of revised Exhibit G drawings (project boundary maps) reflecting exclusion of that land. Lands conveyed under this article will be excluded from the project only upon a determination that the lands are not necessary for project purposes, such as operation and maintenance, flowage, recreation, Project No. 2619 -012 -43- public access, protection of environmental resources, and shoreline control, including shoreline aesthetic values. Absent extraordinary circumstances, proposals to exclude lands conveyed under this article from the project shall be consolidated for consideration when revised Exhibit G drawings would be filed for approval for other purposes. (g) The authority granted to the licensee under this article shall not apply to any part of the public lands and reservations of the United States included within the project boundary. (G) The licensee shall serve copies of any Commission filing required by this order on any entity specified in the order to be consulted on matters relating to that filing. Proof of service on these entities must accompany the filing with the Commission. (H) This order constitutes final agency action. Any party may file a request for rehearing of this order within 30 days from the date of its issuance, as provided in section 313(a) of the FPA, 16 U.S.C. § 8251 (2006), and section 385.713 of the Commission's regulations, 18 C.F.R. § 385.713 (2010). The filing of a request for rehearing does not operate as a stay of the effective date of this license or of any other date specified in this order. The licensee's failure to file a request for rehearing shall constitute acceptance of this order. Jeff C. Wright Director Office of Energy Projects Project No. 2619 -012 Form L -10 (October, 1975) FEDERAL ENERGY REGULATORY COMMISSION TERMS AND CONDITIONS OF LICENSE FOR CONSTRUCTED MAJOR PROJECT AFFECTING THE INTERESTS OF INTERSTATE OR FOREIGN COMMERCE Article 1. The entire project, as described in this order of the Commission, shall be subject to all of the provisions, terms, and conditions of the license. Article 2. No substantial change shall be made in the maps, plans, specifications, and statements described and designated as exhibits and approved by the Commission in its order as a part of the license until such change shall have been approved by the Commission: Provided, however, That if the Licensee or the Commission deems it necessary or desirable that said approved exhibits, or any of them, be changed, there shall be submitted to the Commission for approval a revised, or additional exhibit or exhibits covering the proposed changes which, upon approval by the Commission, shall become a part of the license and shall supersede, in whole or in part, such exhibit or exhibits theretofore made a part of the license as may be specified by the Commission. Article 3. The project area and project works shall be in substantial conformity with the approved exhibits referred to in Article 2 herein or as changed in accordance with the provisions of said article. Except when emergency shall require for the protection of navigation, life, health, or property, there shall not be made without prior approval of the Commission any substantial alteration or addition not in conformity with the approved plans to any dam or other project works under the license or any substantial use of project lands and waters not authorized herein; and any emergency alteration, addition, or use so made shall thereafter be subject to such modification and change as the Commission may direct. Minor changes in project works, or in uses of project lands and waters, or divergence from such approved exhibits may be made if such changes will not result in a decrease in efficiency, in a material increase in cost, in an adverse environmental impact, or in impairment of the general scheme of development; but any of such minor changes made without the prior approval of the Commission, which in its judgment have produced or will produce any of such results, shall be subject to such alteration as the Commission may direct. Article 4. The project, including its operation and maintenance and any work incidental to additions or alterations authorized by the Commission, whether or not conducted upon lands of the United States, shall be subject to the inspection and supervision of the Regional Engineer, Federal Energy Regulatory Commission, in the Project No. 2619 -012 -45- region wherein the project is located, or of such other officer or agent as the Commission may designate, who shall be the authorized representative of the Commission for such purposes. The Licensee shall cooperate fully with said representative and shall furnish him such information as he may require concerning the operation and maintenance of the project, and any such alterations thereto, and shall notify him of the date upon which work with respect to any alteration will begin, as far in advance thereof as said representative may reasonably specify, and shall notify him promptly in writing of any suspension of work for a period of more than one week, and of its resumption and completion. The Licensee shall submit to said representative a detailed program of inspection by the Licensee that will provide for an adequate and qualified inspection force for construction of any such alterations to the project. Construction of said alterations or any feature thereof shall not be initiated until the program of inspection for the alterations or any feature thereof has been approved by said representative. The Licensee shall allow said representative and other officers or employees of the United States, showing proper credentials, free and unrestricted access to, through, and across the project lands and project works in the performance of their official duties. The Licensee shall comply with such rules and regulations of general or special applicability as the Commission may prescribe from time to time for the protection of life, health, or property. Article 5. The Licensee, within five years from the date of issuance of the license, shall acquire title in fee or the right to use in perpetuity all lands, other than lands of the United States, necessary or appropriate for the construction maintenance, and operation of the project. The Licensee or its successors and assigns shall, during the period of the license, retain the possession of all project property covered by the license as issued or as later amended, including the project area, the project works, and all franchises, easements, water rights, and rights or occupancy and use; and none of such properties shall be voluntarily sold, leased, transferred, abandoned, or otherwise disposed of without the prior written approval of the Commission, except that the Licensee may lease or otherwise dispose of interests in project lands or property without specific written approval of the Commission pursuant to the then current regulations of the Commission. The provisions of this article are not intended to prevent the abandonment or the retirement from service of structures, equipment, or other project works in connection with replacements thereof when they become obsolete, inadequate, or inefficient for further service due to wear and tear; and mortgage or trust deeds or judicial sales made thereunder, or tax sales, shall not be deemed voluntary transfers within the meaning of this article. Article 6. In the event the project is taken over by the United States upon the termination of the license as provided in Section 14 of the Federal Power Act, or is transferred to a new licensee or to a nonpower licensee under the provisions of Section 15 of said Act, the Licensee, its successors and assigns shall be responsible for, and shall Project No. 2619 -012 -46- make good any defect of title to, or of right of occupancy and use in, any of such project property that is necessary or appropriate or valuable and serviceable in the maintenance and operation of the project, and shall pay and discharge, or shall assume responsibility for payment and discharge of, all liens or encumbrances upon the project or project property created by the Licensee or created or incurred after the issuance of the license: Provided, That the provisions of this article are not intended to require the Licensee, for the purpose of transferring the project to the United States or to a new licensee, to acquire any different title to, or right of occupancy and use in, any of such project property than was necessary to acquire for its own purposes as the Licensee. Article 7. The actual legitimate original cost of the project, and of any addition thereto or betterment thereof, shall be determined by the Commission in accordance with the Federal Power Act and the Commission's Rules and Regulations thereunder. Article 8. The Licensee shall install and thereafter maintain gages and stream - gaging stations for the purpose of determining the stage and flow of the stream or streams on which the project is located, the amount of water held in and withdrawn from storage, and the effective head on the turbines; shall provide for the required reading of such gages and for the adequate rating of such stations; and shall install and maintain standard meters adequate for the determination of the amount of electric energy generated by the project works. The number, character, and location of gages, meters, or other measuring devices, and the method of operation thereof, shall at all times be satisfactory to the Commission or its authorized representative. The Commission reserves the right, after notice and opportunity for hearing, to require such alterations in the number, character, and location of gages, meters, or other measuring devices, and the method of operation thereof, as are necessary to secure adequate determinations. The installation of gages, the rating of said stream or streams, and the determination of the flow thereof, shall be under the supervision of, or in cooperation with, the District Engineer of the United States Geological Survey having charge of stream - gaging operations in the region of the project, and the Licensee shall advance to the United States Geological Survey the amount of funds estimated to be necessary for such supervision, or cooperation for such periods as may mutually agreed upon. The Licensee shall keep accurate and sufficient records of the foregoing determinations to the satisfaction of the Commission, and shall make return of such records annually at such time and in such form as the Commission may prescribe. Article 9. The Licensee shall, after notice and opportunity for hearing, install additional capacity or make other changes in the project as directed by the Commission, to the extent that it is economically sound and in the public interest to do so. Article 10. The Licensee shall, after notice and opportunity for hearing, coordinate the operation of the project, electrically and hydraulically, with such other Project No. 2619 -012 -47- projects or power systems and in such manner as the Commission any direct in the interest of power and other beneficial public uses of water resources, and on such conditions concerning the equitable sharing of benefits by the Licensee as the Commission may order. Article 11. Whenever the Licensee is directly benefited by the construction work of another licensee, a permittee, or the United States on a storage reservoir or other headwater improvement, the Licensee shall reimburse the owner of the headwater improvement for such part of the annual charges for interest, maintenance, and depreciation thereof as the Commission shall determine to be equitable, and shall pay to the United States the cost of making such determination as fixed by the Commission. For benefits provided by a storage reservoir or other headwater improvement of the United States, the Licensee shall pay to the Commission the amounts for which it is billed from time to time for such headwater benefits and for the cost of making the determinations pursuant to the then current regulations of the Commission under the Federal Power Act. Article 12. The operations of the Licensee, so far as they affect the use, storage and discharge from storage of waters affected by the license, shall at all times be controlled by such reasonable rules and regulations as the Commission may prescribe for the protection of life, health, and property, and in the interest of the fullest practicable conservation and utilization of such waters for power purposes and for other beneficial public uses, including recreational purposes, and the Licensee shall release water from the project reservoir at such rate in cubic feet per second, or such volume in acre -feet per specified period of time, as the Commission may prescribe for the purposes hereinbefore mentioned. Article 13. On the application of any person, association, corporation, Federal agency, State or municipality, the Licensee shall permit such reasonable use of its reservoir or other project properties, including works, lands and water rights, or parts thereof, as may be ordered by the Commission, after notice and opportunity for hearing, in the interests of comprehensive development of the waterway or waterways involved and the conservation and utilization of the water resources of the region for water supply or for the purposes of steam - electric, irrigation, industrial, municipal or similar uses. The Licensee shall receive reasonable compensation for use of its reservoir or other project properties or parts thereof for such purposes, to include at least full reimbursement for any damages or expenses which the joint use causes the Licensee to incur. Any such compensation shall be fixed by the Commission either by approval of an agreement between the Licensee and the party or parties benefiting or after notice and opportunity for hearing. Applications shall contain information in sufficient detail to afford a full understanding of the proposed use, including satisfactory evidence that the applicant possesses necessary water rights pursuant to applicable State law, or a showing of cause why such evidence cannot concurrently be submitted, and a statement as to the Project No. 2619 -012 relationship of the proposed use to any State or municipal plans or orders which may have been adopted with respect to the use of such waters. Article 14. In the construction or maintenance of the project works, the Licensee shall place and maintain suitable structures and devices to reduce to a reasonable degree the liability of contact between its transmission lines and telegraph, telephone and other signal wires or power transmission lines constructed prior to its transmission lines and not owned by the Licensee, and shall also place and maintain suitable structures and devices to reduce to a reasonable degree the liability of any structures or wires falling or obstructing traffic or endangering life. None of the provisions of this article are intended to relieve the Licensee from any responsibility or requirement which may be imposed by any other lawful authority for avoiding or eliminating inductive interference. Article 15. The Licensee shall, for the conservation and development of fish and wildlife resources, construct, maintain, and operate, or arrange for the construction, maintenance, and operation of such reasonable facilities, and comply with such reasonable modifications of the project structures and operation, as may be ordered by the Commission upon its own motion or upon the recommendation of the Secretary of the Interior or the fish and wildlife agency or agencies of any State in which the project or a part thereof is located, after notice and opportunity for hearing. Article 16. Whenever the United States shall desire, in connection with the project, to construct fish and wildlife facilities or to improve the existing fish and wildlife facilities at its own expense, the Licensee shall permit the United States or its designated agency to use, free of cost, such of the Licensee's lands and interests in lands, reservoirs, waterways and project works as may be reasonably required to complete such facilities or such improvements thereof. In addition, after notice and opportunity for hearing, the Licensee shall modify the project operation as may be reasonably prescribed by the Commission in order to permit the maintenance and operation of the fish and wildlife facilities constructed or improved by the United States under the provisions of this article. This article shall not be interpreted to place any obligation on the United States to construct or improve fish and wildlife facilities or to relieve the Licensee of any obligation under this license. Article 17. The Licensee shall construct, maintain, and operate, or shall arrange for the construction, maintenance, and operation of such reasonable recreational facilities, including modifications thereto, such as access roads, wharves, launching ramps, beaches, picnic and camping areas, sanitary facilities, and utilities, giving consideration to the needs of the physically handicapped, and shall comply with such reasonable modifications of the project, as may be prescribed hereafter by the Commission during the term of this license upon its own motion or upon the recommendation of the Secretary of the Interior or other interested Federal or State agencies, after notice and opportunity Project No. 2619 -012 for hearing. Article 18. So far as is consistent with proper operation of the project, the Licensee shall allow the public free access, to a reasonable extent, to project waters and adjacent project lands owned by the Licensee for the purpose of full public utilization of such lands and waters for navigation and for outdoor recreational purposes, including fishing and hunting: Provided, That the Licensee may reserve from public access such portions of the project waters, adjacent lands, and project facilities as may be necessary for the protection of life, health, and property. Article 19. In the construction, maintenance, or operation of the project, the Licensee shall be responsible for, and shall take reasonable measures to prevent, soil erosion on lands adjacent to streams or other waters, stream sedimentation, and any form of water or air pollution. The Commission, upon request or upon its own motion, may order the Licensee to take such measures as the Commission finds to be necessary for these purposes, after notice and opportunity for hearing. Article 20. The Licensee shall clear and keep clear to an adequate width lands along open conduits and shall dispose of all temporary structures, unused timber, brush, refuse, or other material unnecessary for the purposes of the project which results from the clearing of lands or from the maintenance or alteration of the project works. In addition, all trees along the periphery of project reservoirs which may die during operations of the project shall be removed. All clearing of the lands and disposal of the unnecessary material shall be done with due diligence and to the satisfaction of the authorized representative of the Commission and in accordance with appropriate Federal, State, and local statutes and regulations. Article 21. If the Licensee shall cause or suffer essential project property to be removed or destroyed or to become unfit for use, without adequate replacement, or shall abandon or discontinue good faith operation of the project or refuse or neglect to comply with the terms of the license and the lawful orders of the Commission mailed to the record address of the Licensee or its agent, the Commission will deem it to be the intent of the Licensee to surrender the license. The Commission, after notice and opportunity for hearing, may require the Licensee to remove any or all structures, equipment and power lines within the project boundary and to take any such other action necessary to restore the project waters, lands, and facilities remaining within the project boundary to a condition satisfactory to the United States agency having jurisdiction over its lands or the Commission's authorized representative, as appropriate, or to provide for the continued operation and maintenance of nonpower facilities and fulfill such other obligations under the license as the Commission may prescribe. In addition, the Commission in its discretion, after notice and opportunity for hearing, may also agree to the surrender of the license when the Commission, for the reasons recited herein, deems Project No. 2619 -012 it to be the intent of the Licensee to surrender the license. -50- Article 22. The right of the Licensee and of its successors and assigns to use or occupy waters over which the United States has jurisdiction, or lands of the United States under the license, for the purpose of maintaining the project works or otherwise, shall absolutely cease at the end of the license period, unless the Licensee has obtained a new license pursuant to the then existing laws and regulations, or an annual license under the terms and conditions of this license. Article 23. The terms and conditions expressly set forth in the license shall not be construed as impairing any terms and conditions of the Federal Power Act which are not expressly set forth herein. Project No. 2619 -012 - 51 - APPENDIX A Water Quality Certificate Conditions for the Mission Hydroelectric Project Issued By the North Carolina Department of Environment and Natural Resources, Division of Water Quality Issued June 9, 2010, Revised Certificate Issued on July 30, 2010. Conditions of Certification: No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian areas beyond the footprint of the impacts depicted in the Certification. All construction activities, including the design, installation, operation, and maintenance of sediment and erosion control Best Management Practices, shall be performed so that no violations of State Water Quality Standards, Statutes, or Rules occur. 2. Sediment and erosion control measures shall not be placed in wetlands or waters to the maximum extent practicable. If placement of sediment and erosion control devices in wetlands and waters is unavoidable, they shall be removed and the natural grade restored within six months of the date that the North Carolina Division of Land Resources has released the project. 3. Duke Energy Carolinas, LLC shall identify and report in writing existing and proposed consumptive uses of Mission Project waters to DWQ and the North Carolina Division of Water Resources (DWR). Duke Energy Carolinas, LLC shall report the existing or projected (as appropriate) average consumptive withdrawal and maximum approved withdrawal capacity for each water intake in excess of one million gallons per day that is located or proposed for location within the Federal Energy Regulatory Commission (FERC) Project boundary. Duke Energy Carolinas, LLC shall report existing consumptive uses to DWQ and DWR within 60 days following the acceptance of the License and shall report proposed new or expanded consumptive uses to DWQ and DWR within 30 days following receipt of a written request for approval of a proposed new or expanded withdrawal and before submitting any approval requests to FERC. 4. This Certification does not grant or affirm any property right, license or privilege in any waters or any right of use in any waters. This Certification does not authorize any person to interfere with the riparian rights, littoral rights or water use rights of any other person, and this Certification does not create any prescriptive right or any right of priority regarding any usage of water. No person shall interpose this Certification as a defense in any action respecting the determination of riparian or littoral rights or other water use rights. No consumptive user is deemed by virtue of this Certification to possess any prescriptive or other right of priority with respect to Project No. 2619 -012 -52- any other consumptive user regardless of the quantity of the withdrawal or the date on which the withdrawal was initiated or expanded. This Certification issues on the express understanding of the North Carolina Department of Environment and Natural Resources (DENR) that, pursuant to Federal Power Act Section 27, 16 U.S.C. § 821, the License does not establish or determine a proprietary right to any use of water. It establishes the nature of the use to which a proprietary right may be put under the Federal Power Act. Continuing Compliance: 5. Duke Energy Carolinas, LLC shall conduct its activities in a manner consistent with State Water Quality Standards (including any requirements resulting from compliance with Section 303(d) of the Clean Water Act) and any other appropriate requirements of State law and federal law. If the Division determines that as a result of the discharge or operation of the Mission Project such standards or laws are not being met (including the failure to sustain a designated or achieved use) or that State or federal law is being violated, or that further conditions are necessary to assure compliance, the Division may reevaluate and modify this Certification to include conditions relative to the discharge or operation of the Mission Project appropriate to assure compliance with such standards and requirements in accordance with 15A NCAC 2H.0507(d). Before modifying the Certification, the Division shall notify Duke Energy Carolinas, LLC and the FERC, provide public notice in accordance with 15A NCAC 2H.0503 and provide opportunity for public hearing in accordance with 15A NCAC 2H.0504. Any new or revised conditions shall be provided to Duke Energy Carolinas, LLC in writing, shall be provided to the FERC for reference in any Permit or License issued by that agency and shall also become conditions of the FERC License for the project. Other Conditions 6. Addenda No. 1 and No. 3 sent from Duke Energy Carolinas, LLC to Mr. John Dorney from Mr. Steven Jester on May 26, and May 27, 2010, respectively are hereby incorporated into this Certification. Any modifications to the provisions in these Addenda require additional written approval from DWQ. In particular, additional written approval may be required from DWQ for a modified version of the Sediment Removal Pilot Study after additional consultation with all interested parties including Duke Energy Carolinas, LLC, DWQ, DWR, US Fish and Wildlife Service (USFWS), and the North Carolina Wildlife Resources Commission (WRC). 7. Duke Energy Carolinas, LLC will consult with DWQ, DWR, WRC, and the USFWS to develop the Long -Term Sediment Management Plan for the Mission Project. In Project No. 2619 -012 -53- particular, the Long -Term Sediment Management Plan (as described in Addendum No. 3) shall provide assurance to the DWQ that all existing aquatic life uses of downstream waters including mussel habitat will be protected from negative impacts due to Mission Project operations. The Long -Term Sediment Management Plan will be filed with the FERC and the DWQ for written approval within 60 days following the later of (a) completion of the Sediment Removal Pilot Study or (b) issuance of the License for the Mission Project. The DWQ shall be notified in writing as specified in Addendum No. 1 of any deviations to the discharge and lake level fluctuations that vary from these approved Plans. Any such discharge and lake level deviations shall be corrected as soon as practical to the written satisfaction of the DWQ. 8. The Nantahala Area Run of River Projects Maintenance and Emergency Protocol (MEP) submitted as an Appendix to the Lake Level and Flow Management Plan on May 26, 2010 is hereby incorporated as a condition of this Certification. The MEP has provisions for communications and consultation with the resource agencies listed above during emergencies and routine maintenance activities. Any changes to this Protocol require written concurrence from DWQ. 9. Shoreline Management — Duke Energy Carolinas, LLC shall develop a shoreline management plan for written DWQ approval. Such Plan shall prohibit private access facility construction on Project lands.. By this measure, shoreline management shall focus on natural resource protection to preserve the largely undisturbed nature of the shoreline. Additional written approval from DWQ is required for changes to the shoreline management plan. Structures and impacts that are pre- existing (as of the date of this Certification) are grandfathered and allowed to remain as long as their footprint is not expanded. Project No. 2619 -012 Addendum No. 1 Duke Energy Carolinas, LLC Mission Project (P -2619) Lake Level and Flow Management Plan May 26, 2010 (filed July 14, 2010) Background -54- The Mission Project (FERC # 2619) (the Project) is located on the Hiwassee River approximately 9 miles downstream of the City of Hayesville, North Carolina, in Clay County and approximately 15 miles downstream of the Tennessee Valley Authority's (TVA) Chatuge Dam, which regulates inflow into the Mission Project. Mission Dam crosses the Hiwassee River at River Mile 106.1. Constructed by the Town of Andrews, North Carolina to serve its citizens, the Project was considered complete when the two original units were put on -line in December 1924. Nantahala Power and Light Company (NP &L) purchased the Project from the Town 5 years later and installed a third unit in 1943 to better utilize available flow in the river. The Project was licensed by the Federal Energy Regulatory Commission (FERC) on August 4, 1980. Duke Power (now Duke Energy Carolinas, LLC) (Duke) acquired NP &L in 1988. Duke's Hydro Central assumed operational control of NP &L's hydro stations in August 2000. The Mission Project consists of a reservoir, dam, and powerhouse plus a small amount of land surrounding the dam, tailrace and reservoir. Mission Dam was originally designed as an Ambursen -type, flat slab concrete structure. In 1999, due to continuing concrete deterioration, slab areas in Bay Nos. 1, 2, 3, 4, 8, 9, 10, 11, 19, 20, and 21 were filled, essentially changing the dam to a concrete gravity type structure. The electricity from the generators is regulated by one transformer located adjacent to the powerhouse. Duke owns approximately 102 acres within and adjacent to the Project and the Mission Reservoir has approximately 3 miles of shoreline. Major components of the Mission Dam (also referred to herein as the Project Dam) are listed below, beginning at the left abutment (facing downstream). Unless stated otherwise, all elevations are referenced in U.S. Geological Survey (USGS) datum and are expressed in feet above mean sea level (AMSL). • Three bulkhead sections with crest elevation 1665.17 ft AMSL. Project No. 2619 -012 -55- • Seven ogee spillway sections surmounted by 14- foot -high, 16- foot -wide gates with the top of the gates at Elevation 1658.17 ft AMSL (i.e. the Normal Full Pond Elevation) and an opening deck at Elevation 1665.17 ft AMSL. • Four bulkhead sections with crest elevation 1665.17 ft AMSL. • A powerhouse intake structure with crest elevation 1665.17 ft AMSL. • Four bulkhead sections with crest elevation 1665.17 ft AMSL. The buttresses for each bulkhead and spillway bay are spaced 18 feet on- center. Including the powerhouse intake structure and a 12 -foot long access section at each abutment, the dam has a total crest length of 397 feet and a maximum height of 50 feet. Three of the seven Tainter gates are operated automatically by an independent control center located in a metal building on the deck above the gates. Gate No. 7, located nearest the left abutment, opens automatically when the reservoir reaches Normal Full Pond Elevation (Elevation 1,658.17 ft AMSL). Gate No. 5 raises automatically after Gate No. 7, followed in turn by Gate No. 6. The remaining gates are operated manually by a movable hoist on rails on the deck above the spillway. The powerhouse is separate from the dam and consists of a reinforced concrete substructure and a brick superstructure of conventional architecture of the period in which the Project was built. Inside the powerhouse are three generating units. Each one consists of an S. Morgan Smith vertical Francis -type turbine directly connected to a 750 - kilovolt- ampere (kVa) General Electric generator at 0.80 power factor and a DC exciter. The turbines of Unit Nos. 1 and 2 (left and center bays facing downstream), installed in 1924, are each rated at 930 horsepower (hp) under 38 -foot head and 225 revolutions per minute (rpm), while the Unit No. 3 turbine is rated at 1,040 hp at 40 -foot head and 225 rpm. Each unit has a 34.9 foot -long, 8 -foot diameter steel cased penstock. Unit Nos. 1 and 2 each have a steel cased draft tube and Unit No. 3 has a concrete Al -5 cased draft tube. Normally, the plant is capable of producing 2,200 kilowatts (kW) under an average net head of 41.2 feet. The rated hydraulic capacities of the turbines are 216 cfs for Unit Nos. 1 and 2 and 247 cfs for Unit No. 3. The maximum hydraulic capacities of Units 1 & 2 and Unit 3 are 247 cfs and 292 cfs respectively. The minimum hydraulic capacities of Unit Nos. 1 & 2 and Unit 3 are 141 cfs and 165 cfs respectively. The average annual generation for the Mission Project over the period of 1941 to 2002 was 8,134,370 kWh. Total maximum hydraulic capacity of the 3 units combined at the Mission Project is 786 cfs. Project No. 2619 -012 -56- The Mission reservoir has a surface area of approximately 47 acres at Normal Full Pond Elevation 1,658.17 ft AMSL. The drainage area upstream of the dam encompasses 292 square miles of which 189 square miles are impounded by the TVA Chatuge Dam. The drainage area is mountainous and extends into both western North Carolina and north Georgia. The average annual runoff into the Project reservoir is 661 cfs. There are three intakes at the Mission Project. Each intake system is an 8 -foot diameter steel -cased penstock with a 25 foot by 16 foot grated trash rack mounted at a sloping angle in front of the intake pipe. The intake trash rack is located 20 feet 3 inches in front of the bottom of the penstock pipe. The steel grating bars are 3/16 -inch diameter thick and the center to center spacing between the bars varies from 2.25 inches to 2.5 inches. Horizontal support bars are spaced 3 feet apart. These bars are round and have a diameter of 1.5 inches. Reservoir level is approximately 1 foot below the top of the grating during periods of maximum generation. Under the current license for the Mission Project, Duke releases a minimum flow of 280 cfs or inflow, whichever is lower. Flows downstream of the Project reservoir have been measured in the past at the U.S. Geological Survey (USGS) Gage Hiwassee River upstream of Murphy, NC (Gage #03548500) and can be found at the USGS web site address: htip: // waterdata. usgs.gov /nc /nwis /uv ?site _ no = 03548500. This gage has been inactive since September 2004. Under the current license, the Mission Project operates in approximate run -of -river mode (ROR) with an ordinary available drawdown of approximately 6 inches. Project generation is dependent upon the availability of stream flow in the Hiwassee River, which is regulated by TVA's Chatuge Dam. The Project operates semi - automatically; a float controls the wicket gates automatically, but the units must be put on -line or taken off -line manually. The float makes the units responsive to headwater pool levels, which are determined by variations in stream flow. Through a series of relays, the float controls the governor and opens or closes the wicket gates as necessary to utilize available flow while typically maintaining reservoir level within a band from approximately 6 inches below Full Pond Elevation to Full Pond Elevation. Unit No. 3, then No. 2, takes available stream flow up to a combined generator output of 1,500 kilowatts. Unit No. 1 then takes any flows in excess of this capacity. When stream flow decreases, Unit No. 1 reduces its load but maintains synchronous speed by motoring. If stream flow continues to decrease, Unit 2 and 3 will also change mode to synchronous speed motoring. Duke submitted an application for New License for the Project on July 17, 2003. In this License Application Duke proposed to operate the Project in a run -of -river (ROR) Project No. 2619 -012 -57- manner such that outflow from the Project is approximately equal to inflow into it at any given time. In a subsequent Environmental Assessment (EA) issued on July 12, 2006, the FERC recommended that in order to meet the intent of ROR operations Duke should operate the Project so that Project reservoir levels are within 0.1 ft of full pond for 99 percent of the time and within 0.3 ft of full pond the remaining 1 percent of the time on an annual basis. In addition, the FERC recommended (i.e., Nantahala West Project Final Environmental Assessment -July 12, 2006) that Duke consult with the appropriate resource agencies to develop a Lake Level and Flow Management Plan (LLFMP) for the Project to ensure compliance with ROR operations, as well as a Sediment Management Plan for the Project. In 2004, Duke filed the initial Application for a Section 401 Water Quality Certification (401 WQC) with the North Carolina Division of Water Quality (NCDWQ. Since that time, Duke has withdrawn and resubmitted its application for a 401 WQC each year. The 401 WQC Application is currently under review by the NCDWQ. Purpose The purpose of the Mission Project LUMP is to provide a framework for appropriate management and monitoring of reservoir levels and flows downstream of the Project during normal operations, and maintenance and emergency situations under the New License. Obiectives The objectives of the LUMP are as follows: 1) Describe lake level and flow management during normal Project operations 2) Describe potential operational problems and solutions 3) Describe compliance monitoring and reporting procedures 4) Describe procedures for maintenance and emergency operations. Normal Project Operations The definition of ROR operations for a hydro project is that outflow is approximately equal to inflow at any given point in time. This can be achieved by maintaining Project reservoir levels at a constant elevation called the Normal Target Elevation. For this LUMP, Normal Target Elevation is defined as the level of a ROR Project reservoir (measured in ft above Mean Sea Level (AMSL) or feet relative to the full pond contour with 100.0 ft corresponding to full pond) that the Licensee will endeavor in good faith to achieve, unless operation in the Maintenance and Emergency Protocol allows otherwise. For this Mission Project LUMP, Normal Target Elevation will be 99.5 ft. local datum which equates to 8 evat i on 1,657.67 ft AN8L. In order to achieve a consistent reservoir level, control must be maintained through operation of the Project's hydro units, Tainter Project No. 2619 -012 -58- gates, or both. The operating philosophy for normal operations of Tainter gates and hydro units at the Project is described in the following: Hydro Unit Operation • A Programmable Logic Controller (PLC) will control each hydro unit. • The operation of the hydro unit will be determined by lake level, electrical grid syst em conditions, and amount of debris build up on trash racks. • Lake levels will be managed to maintain the Normal Target Elevation (99.5 ft.), with 100.0 ft representing the Normal Full Pond Elevation of 1, 658. 17 ft AMSL. • The lake level set point for hydro unit control must be at a lower elevation than the lake level set point for Tainter gate control such that the hydro units will operate prior to Tainter gate operation. Tainter Gate Operation • For the Tainter gates with automatic controls, PLCs compare actual lake level to a lake level set point. • The PLC will control the Tainter gate position based on the lake level set point value. • When reservoir levels continue to rise during hydro unit operation, the Tainter gates open as water levels rise in order to maintain reservoir levels at Normal Target Elevation. • A permanent back -up generator that will provide a redundant power source to the Project (i.e., Tainter gates) during emergency situations (e.g., power loss) will be provided. Based on the operations philosophy described above, the Project reservoir level control will consist of the following components: • A 5 psi pressure transducer secured in a stilling well and calibrated to measure lake level based on Normal Full Pond Elevation of 100.0 ft local datum. The transducer is accurate to within 0.01 feet. A back -up transducer is also installed. • A gate position transducer with a stainless steel tape connected to the top of each automatically controlled Tainter gate. The transducer measures gate opening from fully closed to fully open with an accuracy of 0.02 feet. • Each automatic gate hoist has an encoder on the shaft that gives a relative position of the Tainter gate to the position of the hoist shaft. • Each hoist has a low limit and a high limit switch on the hoist shaft. • A PLC is used to control Tainter gate movement through either a (1) variable frequency drive or (2) motor contactors. Manual control is also available. • There is a communication system between the Tainter gate controller and the plant controller. These controllers communicate either by radio, fiber link, modem, or RS485. • The Tainter gate PLC communicates the status of the gate position, lake level, and alarm points to the plant PLC. Project No. 2619 -012 -59- • The plant PLC communicates via wireless modem to the work station node at the Nantahala Hydro Station (FERC Project 2692). • The information from the Nantahala Hydro Station is sent to Hydro Central in Charlotte, North Carolina through a secure network. Potential Operational Issues: There are a number of factors that can affect the Project reservoir level control. These factors include equipment failures, high inflow conditions, and debris build up in front of trash racks and Tainter gates. • A PLC response to rapid changes in these reservoir level factors may result in reservoir level variations greater than 0.1 feet. • Since the Tainter gates at the Mission Project are large (14 ft high x 16 ft wide), control of gate position by the PLC to a tolerance of 0.02 feet allows for flow variances of 10 cfs or more through each automatically controlled gate. • There are occasional conditions, such as when there is trash or debris accumulations on the trash racks which may create situations when one of the units cannot maintain the lake level set point. At these times, an automated Tainter gate will begin pond control when the lake level is 0.05 feet above the lake level set point for hydro unit operation. Compliance Monitoring and Reporting Run -of -River Compliance Provided the Project is not operating in the Nantahala Area ROR Projects Maintenance and Emergency Protocol (see Appendix), the Mission Project will be considered in compliance with ROR operations under the following conditions: • Reservoir elevations maintained at ±0.3 ft of Normal Target Elevation (99.5 ft.) when less than 2 hydro units are operable • Reservoir elevations maintained ±0.1 ft of Normal Target Elevation (99.5 ft.) for 99% of year and ±0.3 ft of Normal Target Elevation (99.5 ft.) for 1% of year when 2 or more hydro units are operable • If the Licensee determines that the Project will have less than 2 hydro units operable for a period of more than 60 consecutive days, the Licensee will consult with the agencies identified in the MEP within 30 days of making such a determination, to develop a plan and schedule for complying with ROR operations. Reporting • Reservoir elevation data will be collected no less frequently than every 15 minutes. Real -time reservoir elevation information will be available for the Project at URL http: / /www.duke- energy. cone /➢ akes/ nantahada /nantahada- Iake- IeveIs.asp • The Licensee will provide 7 -day reservoir history on its website. Any other history or period of record is available from the Licensee upon written request. Project No. 2619 -012 -60- • The Licensee will archive the 15- minute reservoir elevation data for the term of the New License. • No later than March 31 of each calendar year beginning the first full calendar year after the calendar year in which the New License is issued, the Licensee will provide to the NCDWQ, NCDWR, the NCWRC, and the USFWS and file with the FERC a report containing a table of the elevation of the reservoir on a daily basis (including midnight, daily minimum and maximum elevations) during the previous calendar year, a certification by the Licensee that the lake level requirements were met during the previous calendar year, and a discussion of each incident during the previous calendar year where the elevation of the reservoir was above or below the normally required levels. • After five full calendar years of operation under the New License, the Licensee will confer with the NCDWR, NCDWQ, NCWRC, USFWS, and the FERC to consider holding an informational meeting, to review the operational history of the LUMP and to determine if any operational changes are needed and agreeable to all the parties. Any such meeting will be scheduled and held no later than October 31 of the appropriate year. Emergency and Other Non - Routine Operations • The Licensee will enhance remote monitoring of the Mission Project by implementing an expanded alert system concerning gate control failures, hydro unit trips, power failures, low inflows, and other situations where downstream flows could be temporarily interrupted. • Alerts will be directed to the Licensee where appropriate technical staff will be called out as needed to respond to such situations. • In addition the Licensee will provide a key contact individual that will be available during normal business hours for the agencies to contact should significant Project - related issues arise. Project No. 2619 -012 APPENDIX to Addendum I -61- NANTAHALA AREA RUN -OF -RIVER PROJECTS MAINTENANCE AND EMERGENCY PROTOCOL (MEP) Introduction Under some emergency, equipment failure, maintenance or other abnormal situations, certain license conditions may be impractical or even impossible to meet and may need to be suspended or modified temporarily to avoid taking unnecessary risks. The objectives of this protocol are: 1) to define the most likely abnormal situations for the Nantahala Area Run of River (ROR) Projects (i.e., Mission, Bryson and Franklin Projects), 2) describe the operations protocol for certain abnormal situations, 3) identify the potentially impacted license conditions, 4) outline the general approach that the Licensee will take to mitigate the impacts to license conditions, and 5) describe how these situations will be communicated to resource agencies and others. Note: Due to the potential variability of these abnormal situations, this Maintenance and Emergency Protocol (MEP) is not intended to give an exact step -by -step solution path. It will, however, provide basic expectations for the Licensee's approach to dealing with the situation. Specific details will vary and will be determined on a case -by -case basis as the protocol is being enacted. The Licensee will review the requirements of this protocol each time it is used and may revise the MEP from time to time as noted below. Key Facts and Definitions Human Health and Safety and the Integrity of the Public Water Saply and Electric Systems are of Utmost Importance — Nothing in this protocol will limit the Licensee's ability to take any and all lawful actions necessary at the Project to protect human health and safety, protect its equipment from major damage, and ensure the stability of the regional electric grid and public water supply systems. It is recognized that the Licensee may take the steps that are necessary to protect these things without prior consultation or notification. Likewise, nothing in this MEP will limit the State of North Carolina from taking any and all lawful actions necessary in its jurisdiction to protect human health and safety. It is recognized that North Carolina may also take the steps necessary to protect these things without prior consultation or notification. Project No. 2619 -012 -62- 2. Normal Full Pond Elevation — Also referred to simply as "full pond," this is the level of a reservoir that corresponds to the point at which water would first begin to spill from the reservoir's dam(s) if the Licensee took no action. This level corresponds to the lowest point along the top of the spillway (including flashboards) for reservoirs without floodgates and to the lowest point along the top of the floodgates for reservoirs that have floodgates. To avoid confusion among the many reservoirs the Licensee operates; it has adopted the practice of referring to the Normal Full Pond Elevation for all of its reservoirs as equal to 100.0 ft. relative. The following are the Normal Full Pond Elevations for the Nantahala Area ROR Projects expressed in terms of USGS datum (ft above Mean Sea Level (AMSL)) rather than relative or local datum: • Franklin Project — 2,000.22 ft AMSL • Bryson Project — 1,828.41 ft AMSL • Mission Project — 1,658.17 ft AMSL 3. Normal Target Elevation - The level of a ROR Project reservoir (measured in ft above Mean Sea Level (AMSL) or feet relative to the full pond contour with 100.0 ft corresponding to full pond) that the Licensee will endeavor in good faith to achieve, unless operation in this MEP allows otherwise. The Normal Target Elevation for the Franklin and Mission Projects is 99.5 ft and it is 99.95 ft local datum for the Bryson Project. These Normal Target Elevations correspond to the following USGS elevations at each ROR Project: • Franklin Project — 1,999.72 ft AMSL • Bryson Project — 1,828.36 ft AMSL • Mission Project — 1,657.67 ft AMSL 4. Returning to Normal — Some of the abnormal situations noted in this MEP can impact the Licensee's ability to operate the hydro project in the most efficient and safest manner for power production. The Licensee will therefore endeavor in good faith to repair existing hydro project equipment and facilities and return them to service within a reasonable period of time, commensurate with the severity of the equipment / facility repair requirements and availability of budgeted funding. If the Licensee determines that the Project will have less than 2 hydro units operable for a period of more than 60 consecutive days, the Licensee will consult with the agencies identified in this MEP, within 30 days of making such a determination, to develop a plan and schedule for complying with ROR operations. 5. Incidental Maintenance — These are maintenance activities at Project works that are very brief in nature or that require minimal if any deviation from normal license conditions. For the purposes of this protocol, maintenance of Project works that does not require deviation from any license conditions related to prescribed Project No. 2619 -012 -63- flow releases from Project structures that is less than 24 hours in duration and will not require any excursions below the Minimum Flow (as identified in this MEP) is considered Incidental Maintenance and, except for the notification steps identified in the tables below for communication with resource agencies and affected parties for conditions that impact prescribed flow releases, Incidental Maintenance is exempt from the requirements of this protocol. 6. Notification — Typically includes informing or providing information concerning a Project activity or situation (e.g., scheduled maintenance drawdown) to interested parties. Notification is an important aspect of the communication protocol for the Projects and can be used under both scheduled and emergency situations. 7. Consultation — Typically includes meetings and /or correspondence regarding agency deliberation, decision, or guidance concerning a Project activity (e.g., review operational changes, review plan modifications). Consultation is also an important aspect of the communication protocol for the Projects. 8. Notification Guidance a. Scheduled Maintenance that Affects License Conditions — Typically scheduled maintenance is planned months in advance. Once a likely maintenance schedule has been established, the Licensee will endeavor to provide as much advance notice as possible to the affected parties identified in this protocol. b. Unscheduled Maintenance and Emergencies that Affect License Conditions — It is not possible for the Licensee to assure any level of advance notice. For these situations, the Licensee will endeavor to inform the affected parties identified in this protocol within some reasonable amount of time after the situation has been identified. 9. Minimum Flow — The minimum flow releases from the Nantahala Area ROR Projects that may be necessary to: a. prevent long -term or irreversible damage to aquatic communities consistent with the resource management goals and objectives for the affected stream reaches; b. provide some basic level of water quality maintenance in the affected stream reaches. For the purpose of this MEP, the Minimum Flow will be equal to the September median flow for the given Project. The Minimum Flows for the Nantahala Area ROR Projects are as follows: Little Tennessee River at Franklin Dam is 309 cfs. • Oconaluftee River at Bryson Dam is 204 cfs. • Hiwassee River at the Mission Dam is 341 cfs. Project No. 2619 -012 10. Organizational abbreviations include the Eastern Band of Cherokee Indians (EBCI), United States Fish and Wildlife Service (USFWS), Federal Energy Regulatory Commission (FERC), United States Geological Survey (USGS), North Carolina Department of Environment and Natural Resources (NCDENR), North Carolina Division of Water Resources (NCDWR), North Carolina Division of Water Quality (NCDWQ), North Carolina State Historic Preservation Office (NCSHPO), North Carolina Wildlife Resources Commission (NCWRC), Duke System Operating Center (SOC) and Duke Transmission Control Center (TCC). 11. Voltage and Capacity Emergencies.— _ The electric transmission system serving the Nantahala Area is part of the Licensee's main transmission system. The Licensee's system is connected to other large transmission systems located in the southeast. If the Licensee's system reliability is at risk due to Voltage and Capacity Emergencies, the ability to provide secure and continuous electric service to the Licensee's electric customers becomes compromised. The Licensee's System Operating Center (SOC) and Transmission Control Center (TCC) continuously monitor the electric transmission system. Therefore, for the purposes of this protocol, a Voltage or Capacity Emergency will exist when declared by the Licensee's SOC or TCC. 12. Large Extended Drawdown — Any drawdown of a Nantahala Area ROR Project reservoir that will expose substantial lakebed areas for an extended period of time that are not normally exposed during the year. For the purposes of this ROR Project MEP document, a Large Extended Drawdown is any drawdown that is expected to maintain a ROR Project's reservoir level greater than 1.0 foot below the Normal Target Elevation for at least 30 consecutive days. 13. Revising the MEP — The Licensee will review the requirements of this MEP each time it is used and will consult with the pertinent agencies if the Licensee determines that revisions are warranted. The Licensee will file any revised MEP with the FERC, including filing a license amendment request if the Licensee determines that the amendment is needed. Assumptions Run -of -River Operation — The Subsequent or New Licenses for the Nantahala Area ROR Projects are expected to require the Projects to be operated in such a manner that outflow is approximately equal to inflow at any given time while allowing variations during maintenance, emergencies, and equipment failures. Guidance for Responding to Abnormal Situations The table below identifies the most likely abnormal situations when this protocol will be enacted and the license requirements that would most likely be impacted. Project No. 2619 -012 -65- Potentially Abnormal Situation Impacted License Re uirements Situation Situation Name Indications Run -of -River Letter Operations A Hydro Unit Maintenance will require hydro unit Yes Maintenance shutdown. Maintenance of Maintenance will require interruption of B Floodgates scheduled releases from normal Yes locations (e.g., gates) Condition A or B (i.e. dam failure has Dam Safety occurred, is imminent or a potentially C Concerns hazardous situation exists) is declared Yes per Emergency Action Plan or other dam safety concern is identified. Voltage or capacity conditions on the electric grid in the Licensee's system or r the larger regional electric grid cause the D Capacity Licensee's system reliability and safety Yes Emergency to be at risk and a voltage or capacity emergency is declared by Licensee's System Operating Center (SOC) or Transmission Control Center (TCC). Reservoir Drawdown Below Normal Target Elevation due to The reservoir level is below Normal E Target Elevation by more than is Yes maintenance, allowable for normal operation emergency or other reasons (not due to low or high inflow) River Access Safe access to regulated river reaches F Special requires interruption of releases from Yes Circumstances normal locations Project No. 2619 -012 -66- Communication with Resource Agencies and Affected Parties General Notification As soon as possible after the Licensee determines that the response to an abnormal situation will potentially impact license conditions, the Licensee will add appropriate messages to its public information Web site and /or its reservoir level toll -free phone system to inform the general public. Specific consultation is discussed below for each identified abnormal situation. Notification and Consultation Notification and consultation requirements are specified for each abnormal situation. The Licensee will consider options suggested by the identified agencies and organizations that could lessen the impact of the abnormal situation on the environmental, cultural and human needs relative to the Project. Project No. 2619 -012 Abnormal Situation A.1— Scheduled Hydro Unit Maintenance Mitigating Actions -67- 1. Scheduling — To the extent practical, the Licensee will avoid scheduling hydro unit maintenance that would impact flow requirements for aquatic habitat or water quality unless it is likely that the equipment condition will cause damage or unscheduled unit maintenance if repairs are delayed. 2. Drawing Down the Affected Reservoir —To minimize the impacts to its electric customers, the Licensee may choose to draw down a reservoir using its hydro units to minimize spillage from the dam during maintenance operations. 3. Avoid Falling Below the Minimum Flow — To the extent practical, the Licensee will avoid falling below the applicable Minimum Flow as noted above. If it is determined that 100 percent exceedance of the Minimum Flow cannot reasonably be achieved, the Licensee will work with the resource agencies to (a) monitor any potential aquatic species impacts in the affected stream segments and (b) replace any aquatic species mortalities that are identified. Communication with Resource Agencies and Affected Parties Abnormal Situation A.1— Scheduled Hydro Unit Maintenance Notification Consultation Comments NCDENR Provide notification, initiate consultation and provide FERC NCWRC agencies 30 days to comment on drawdown plan as soon USFWS as approximate dates are determined (typically months in advance). Consult at least 10 days prior to beginning the hydro NCSHPO unit outage or any reservoir drawdown if maintenance EBCI will affect Historic Properties ( NCSHPO) and include consultation with the EBCI if the maintenance will result in a Large Extended Drawdown. Access Area The Licensee will conduct notification procedures for Closure any temporary recreation facility /Access Area closures Notification (e.g., closure due to extended low reservoir levels). As soon as possible after the Licensee determines that the response to an abnormal situation will potentially General impact license conditions, the Licensee will add appropriate messages to its public information Web site and its reservoir level toll -free phone system to inform the general public. Project No. 2619 -012 Abnormal Situations A.2 — Unscheduled Hydro Unit Maintenance Mitigating Actions 1. Drawing Down the Reservoir —To minimize the impacts to its electric customers, the Licensee may choose to draw down a reservoir using its hydro units to minimize spillage from the dam during maintenance operations. 2. Avoid Falling Below the Minimum Flow — To the extent practical, the Licensee will avoid falling below the applicable Minimum Flow as noted above. If it is determined that 100 percent exceedance of the Minimum Flow cannot reasonably be achieved, the Licensee will work with the resource agencies to (a) monitor any potential aquatic species impacts in the affected stream segments and (b) replace any aquatic species mortalities that are identified. Communication with Resource Agencies and Affected Parties Abnormal Situation A.2 — Unscheduled Hydro Unit Maintenance Notification Consultation Comments FERC If the maintenance will affect run -of -river operations, NCDENR NCDENR perform notification as soon as possible after the NCWRC NCWRC unscheduled hydro unit outage begins, but no longer than USFWS USFWS 5 days afterwards. Begin consultation within 10 days after the unscheduled hydro unit outage begins. Notify (within 5 days) and consult (within 10 days) after NCSHPO NCSHPO the hydro unit outage or drawdown begins with EBCI EBCI NCSHPO if maintenance will affect Historic Properties and include consultation with EBCI if the maintenance will result in a Large Extended Drawdown. Access Area The Licensee will conduct notification procedures for Closure any temporary recreation facility /Access Area closures Notification (e.g., closure due to extended low reservoir levels). As soon as possible after the Licensee determines that the response to an abnormal situation will potentially impact General license conditions, the Licensee will add appropriate messages to its public information Web site and its reservoir level toll -free phone system to inform the general public. Project No. 2619 -012 Abnormal Situation B.1— Scheduled Maintenance of the Normal Means of Providing Minimum Flows Mitigating Actions Scheduling — To the extent practical, the Licensee will avoid scheduling maintenance (e.g., floodgate maintenance requiring drawdown; hydro unit outage) that would impact the ability of the Licensee to release flows for aquatic habitat or water quality unless it is likely that the equipment condition will cause damage or an unscheduled maintenance situation if repairs are delayed. 2. Drawing Down the Reservoir —To minimize the impacts to its electric customers, the Licensee may choose to draw down a reservoir using its hydro units to minimize spillage from the dam during maintenance operations. 3. Avoid Falling Below the Minimum Flow — To the extent practical, the Licensee will avoid falling below the applicable Minimum Flow as noted above. If it is determined that 100 percent exceedance of the Minimum Flow cannot reasonably be achieved, the Licensee will work with the resource agencies to (a) monitor any potential aquatic species impacts in the affected stream segments and (b) replace any aquatic species mortalities that are identified. Communication with Resource Agencies and Affected Parties Abnormal Situation B.1— Scheduled Maintenance of the Normal Means of P oviding Minimum Flows Notification Consultation Comments NCDENR Provide notification, initiate consultation and provide FERC NCWRC agencies 30 days to comment on drawdown plan as USFWS soon as approximate dates are determined (typically months in advance). Notify (within 5 days) and consult (within 10 days) after NCSHPO NCSHPO the hydro unit outage or drawdown begins with EBCI EBCI NCSHPO if maintenance will affect Historic Properties and include consultation with EBCI if the maintenance will result in a Large Extended Drawdown. As soon as possible after the Licensee determines that the response to an abnormal situation will potentially General impact license conditions, the Licensee will add appropriate messages to its public information Web site and /or its reservoir level toll -free phone system to inform the general public. Project No. 2619 -012 Abnormal Situation B.2 — Unscheduled Maintenance of the Normal Means of Providing Minimum Flows Mitigating Actions -70- Avoid Falling Below the Minimum Flow — To the extent practical, the Licensee will avoid falling below the applicable Minimum Flow as noted above. If it is determined that 100 percent exceedance of the Minimum Flow cannot reasonably be achieved, the Licensee will work with the resource agencies to (a) monitor any potential aquatic species impacts in the affected stream segments and (b) replace any aquatic species mortalities that are identified. Communication with Resource Agencies and Affected Parties Abnormal Situation B.2 — Unscheduled Maintenance of the Normal Means of Providing Minimum Flows Notification Consultatio Comments n If the maintenance cannot avoid impacting run -of- FERC NCDENR river operations, perform notification as soon as NCDENR NCWRC possible after the unscheduled maintenance begins, NCWRC USFWS but no longer than 5 days afterwards. Begin USFWS consultation within 10 days after the unscheduled maintenance begins. As soon as possible after the Licensee determines that the response to an abnormal situation will General potentially impact license conditions, the Licensee will add appropriate messages to its public information Web site and /or its reservoir level toll - free phone system to inform the general public. Abnormal Situation C — Dam Safety Emergency Mitigating Actions 1. Safety Must Come First — If a Condition A or B is declared per the Licensee's Emergency Action Plan, or other dam safety concerns arise, the Licensee may modify or suspend any license conditions immediately and for as long as necessary to restore the dam to a safe condition. Project No. 2619 -012 Communication with Resource Agencies and Affected Parties -71- Abnormal Situation C — Dam Safety Emergency Notification Consultation Comments Conducted strictly in accordance with the Licensee's Emergency Action Plan. In cases During EAP Condition A or B Where dam safety concerns arise that are not a or Other Dam Safety Concerns Condition A or B per the Licensee's Emergency Action Plan, consultation with resource agencies and affected parties will occur as soon as possible, after the dam safety concern arises. As soon as possible after the Licensee determines that the response to an abnormal situation will Once Dam Safety Conditions potentially impact license conditions, the Licensee Have Stabilized will add appropriate messages to its public information Web site and /or its reservoir level toll - free phone system to inform the general public. The Licensee will conduct notification procedures Access Area Closure for any temporary recreation facility /Access Area Notification closures (e.g., closure due to extended low reservoir levels). Abnormal Situation D — Voltage and Capacity Emergencies Mitigating Actions Suspension of the Normal Run -of -River Project Operation — If a voltage or capacity emergency (as defined above) occurs, the Licensee may modify or suspend reservoir level operating limitations immediately and for as long as necessary if doing so would allow additional hydro station operation that is needed to restore the electric grid to a stable condition. 2. Conserving Water for Power Generation — If a voltage or capacity emergency (as defined above)-occurs and if it is expected to continue for an extended period of time (e.g. two weeks or more), the Licensee may reduce minimum flows to the applicable Minimum Flow (as defined above). During a Voltage or Capacity Emergency, the Licensee will not deviate from the normal license conditions to conserve water for power generation strictly as a cost avoidance measure, but only to assist in addressing the emergency. Project No. 2619 -012 Communication with Resource Agencies and Affected Parties -72- Abnormal Situation D — Voltage and Capacity Emergencies Notification Consultation Comments FERC Perform notification as soon as possible, but no EN NCDENR NCDENR longer than 5 days following the deviation from a NC NCWRC license condition for Voltage or Capacity USFWS USFWS Emergency reasons. Initiate consultation as soon as possible. Notify (within 5 days) and consult as soon as NCSHPO possible with NCSHPO if a Voltage or Capacity NCSHPO EBCI Emergency will affect Historic Properties and include consultation with EBCI if the emergency will result in a Large Extended Drawdown. Access Area The Licensee will conduct notification procedures Closure for any temporary recreation facility /Access Area Notification closures (e.g., closure due to extended low reservoir levels). As soon as possible after the Licensee determines that the response to an abnormal situation will General potentially impact license conditions, the Licensee will add appropriate messages to its public information Web site and its reservoir level toll -free phone system to inform the general public. Abnormal Situation E.1— Scheduled Reservoir Drawdown Mitigating Actions 1. Scheduling — To the extent practical, the Licensee will avoid scheduling reservoir drawdowns that would impact the ability of the Licensee to release the Minimum Flow for aquatic habitat and water quality. 2. Avoid Falling Below the Minimum Flow — To the extent practical, the Licensee will avoid falling below the applicable Minimum Flow as noted above. If it is determined that 100 percent exceedance of the Minimum Flow cannot reasonably be achieved, the Licensee will work with the resource agencies to (a) monitor any potential aquatic species impacts in the affected stream segments and (b) replace any aquatic species mortalities that are identified. Project No. 2619 -012 Communication with Resource Agencies and Affected Parties -73- Abnormal Situation E.1— Scheduled Reservoir Drawdown Notification Consultation Comments NCDENR Provide notification, initiate consultation and FERC NCWRC provide agencies 30 days to comment on drawdown USFWS plan as soon as approximate dates are determined (typically months in advance). Consult at least 10 days prior to beginning the NCSHPO NCSHPO reservoir drawdown if the drawdown will affect EBCI EBCI Historic Properties ( NCSHPO) and include consultation with the EBCI if the maintenance will result in a Large Extended Drawdown. Access Area The Licensee will conduct notification procedures Closure for any temporary recreation facility /Access Area Notification closures (e.g., closure due to extended low reservoir levels). As soon as possible after the Licensee determines that the response to an abnormal situation will General potentially impact license conditions, the Licensee will add appropriate messages to its public information Web site and its reservoir level toll -free phone system to inform the general public. Abnormal Situation E.2 — Unscheduled Reservoir Drawdown Mitigating Actions 1. Avoid Falling Below the Minimum Flow — To the extent practical, the Licensee will avoid falling below the applicable Minimum Flow as noted above. If it is determined that 100 percent exceedance of the Minimum Flow cannot reasonably be achieved, the Licensee will work with the resource agencies to (a) monitor any potential aquatic species impacts in the affected stream segments and (b) replace any aquatic species mortalities that are identified. Project No. 2619 -012 Communication with Resource Aizencies and Affected Parties -74- Abnormal Situation E.2 — Unscheduled Reservoir Drawdown Notification Consultation Comments If the drawdown cannot avoid impacting run -of- river operations, perform notification as soon as FERC NCDENR possible, but no longer than 5 days after the NCDENR NCWRC drawdown begins. Begin consultation within 10 NCWRC USFWS, days after the drawdown begins. Include USFWS NCSHPO, consultation with the NCSHPO if the drawdown EBCI will affect Historic Properties and include consultation with the EBCI if the drawdown will be a Large Extended Drawdown. Access Area The Licensee will conduct notification procedures Closure for any temporary recreation facility /Access Area Notification closures (e.g., closure due to extended low reservoir levels). As soon as possible after the Licensee determines that the response to an abnormal situation will General potentially impact license conditions, the Licensee will add appropriate messages to its public information Web site and its reservoir level toll - free phone system to inform the general public. Project No. 2619 -012 Abnormal Situation F — Special River Access Circumstances Mitigating Actions -75- 1. Avoid Falling Below the Minimum Flow — To the extent practical, the Licensee will avoid falling below the applicable Minimum Flow as noted above. If it is determined that 100 percent exceedance of the Minimum Flow cannot reasonably be achieved, the Licensee will work with the resource agencies to (a) monitor any potential aquatic species impacts in the affected stream segments and (b) replace any aquatic species mortalities that are identified. Communication with Resource Agencies and Affected Parties Abnormal Situation F — Special River Access Circumstances Notification Consultation Comments If the Licensee must alter outflow from the Project such that the stream flow will be reduced to a level that is below the Minimum Flow, then the NCDENR Licensee will initiate consultation as soon as FERC NCWRC possible after the dates are known, but at least 10 USFWS days prior to beginning the temporary flow alteration. Initiate consultation for unplanned river access within 5 days after the temporary flow alteration begins. Access Area The Licensee will conduct notification procedures Closure for any temporary recreation facility /Access Area Notification closures (e.g., closure due to extended low reservoir levels. As soon as possible after the Licensee determines that the response to an abnormal situation will General potentially impact license conditions, the Licensee will add appropriate messages to its public information Web site and its reservoir level toll - free phone system to inform the general public. Project No. 2619 -012 Addendum No. 3 Duke Energy Carolinas, LLC Nantahala Area Run -of -River Projects Sediment Study Plan May 27, 2010 (filed July 14, 2010) -76- In order to address concerns related to potential sediment releases that may be caused by hydro project operation and maintenance, Duke Energy Carolinas, LLC's (Duke) License Applications for the Nantahala Area Run -of -River (ROR) Projects (Projects) (i.e., the Mission, Bryson and Franklin Projects) proposed the development of a Long -Term Sediment Management Plan. The FERC concurred with this recommendation (i.e., Nantahala West Project Final Environmental Assessment -July 12, 2006) and stated its expectation that Duke consult with the appropriate resource agencies to develop a Long - Term Sediment Management Plan for the ROR Projects, as well as specific Lake Level and Flow Management Plans (under a separate cover). Purpose The purpose of the Nantahala Area ROR Projects Sediment Study Plan is to provide a framework and guidelines for appropriate management of sediment and monitoring of sediment releases associated with normal maintenance and emergency activities. This study plan will provide the basis for a Long -Term Sediment Management Plan that will be developed after completion of this Sediment Study in consultation with the resource agencies. Objectives The objectives of the Sediment Study Plan for the ROR Projects are as follows: 1) Describe sediment study procedures during the first normal sediment maintenance operation at one of the Nantahala Area ROR Projects. 2) Provide information to allow the Licensee to develop a Long -Term Sediment Management Plan. Sediment Management The proposed Sediment Study for the Nantahala Area ROR Projects (i.e., Mission, Bryson, and Franklin Projects) is based upon a pragmatic approach incorporating general knowledge of sediment behavior but flexible enough to incorporate existing or future knowledge of sediment transport and any subsequent impact to downstream aquatic life including listed species and important or designated critical habitats. The basic approach for either limited sediment removal operations or reservoir drawdown involves four steps, namely: (1) planning, (2) consultation, (3) monitoring, and (4) documentation. Project No. 2619 -012 -77- The first step in the development of a Long -Term Sediment Management Plan is to identify, through this initial pilot study, the appropriate protocols and evaluation of acceptable boundaries of sediment loading due to limited sediment removal (i.e., intake zone) and /or reservoir drawdown. After gathering this initial information, the second step of this process is to incorporate this information into a Long -Term Sediment Management Plan which will guide the planning, consultation, monitoring, and documentation of future sediment removal or drawdown activities. Sediment Removal Pilot Study This study would be conducted on the first sediment removal operation at the Franklin, Bryson, or Mission Projects following the submittal of this Sediment Study Plan to the North Carolina Division of Water Quality (NCDWQ) as an addendum (Addendum No. 3) to Duke's Application for 401 Water Quality Certification (401 WQC) for each Nantahala Area ROR Project filed with NCDWQ in June, 2009. Since many aspects of the geography, geology and river conditions are similar between the ROR Projects, the results of this pilot study may provide the basis for future limited sediment removal activities for the other ROR Projects in the Nantahala Area. Limited sediment removal in the immediate vicinity of the intake areas (i.e., forebay) of the powerhouses typically involves removing accumulated debris and sediment from the reservoir via a mechanical bucket and barge method. In the past, up to approximately 6,000 cubic yards of sediment have been removed at one time from the individual ROR Project forebay areas. However, even though most of the material is removed, some fine - grained sediments such as silts are re- suspended in the water column during the process and moved downstream. Since the Licensee typically does not operate the generating units during sediment removal operations, the re- suspended sediments would move downstream by spilling over the dam or, if necessary, through the Tainter gates. The process for the initial Sediment Removal Pilot Study will be as follows: Establish Methodology and Assessment for Limited Sediment Removal Operation 1) Limited Sediment Removal a) Operations would be planned during periods with Project inflows that are equaled or exceeded 25% to 50% of the time. b) Operations would be conducted at drawdowns of approximately 3 feet below the Normal Target Elevation and under the notification and consultation requirements as described in the Nantahala Area ROR Projects Maintenance and Emergency Protocol (which is an Appendix to this document and which has already been filed with NCDWQ as an Project No. 2619 -012 Appendix to Addendum No. 1 to Duke's 401 WQC Application. To avoid confusion, Duke is not including this Appendix again in this filing of Addendum No. 3). 2) Forebay Assessment a) Volume of Sediment Removed i. Perform a depth survey in the immediate intake area prior to sediment removal and estimate the total volume of material to be removed ii. Utilize the same methodology to perform a depth survey in the immediate intake area after sediment removal to estimate the total volume of material that was removed b) Develop Protocol for Measurement of Sediment i. Prior to sediment removal 1. Sample (i.e., gradation) the sediments to be removed and estimate the potential for re- suspension 2. Establish relationship between turbidity (field estimate of suspended solids) to wet weight and dry weight of sediment remaining in suspension ii. During Limited Sediment Removal 1. Sample (i.e., gradation) the suspended sediments transported into the reservoir during limited sediment removal 2. Sample (i.e., gradation) the suspended sediments transported from the reservoir during limited sediment removal. Sediment removal will cease temporarily when downstream turbidity is greater than 50 NTU above ambient. Sediment removal will restart when downstream turbidity measurements are 25% or less above ambient turbidity. 3. Establish relationship between turbidity (field estimate of suspended solids) to wet weight and dry weight of sediment from sediment samples ill. Develop Protocol for Measurement of Total Sediments Transported from Reservoir Due to Sediment Removal 1. Measure (calculate) spill flow 2. Calculate total sediments transported into the reservoir (mass per day, mass total) 3. Calculate total sediments transported from the reservoir (mass per day, mass total) Project No. 2619 -012 3) River Assessment -79- a) Establish monitoring stations at `sensitive' sites (sites either of biological interest including the known listed species communities and critical habitats and /or those considered prone to deposition such as shoals) in consultation with federal and state agencies i. Sample water for suspended sediments (able to calculate mass per day, mass total) ii. Pre and post sediment removal operations, sample substrate for deposition b) Document deposition areas and particle size distribution through bedload sampling and photography. 4) Report a) Document the methods, results, conclusions and recommendations of the reservoir and river assessment and provide to the pertinent agencies (i.e., Federal Energy Regulatory Commission (FERC), United States Fish and Wildlife Service (USFWS), North Carolina Division of Water Resources (NCDWR), North Carolina Division of Water Quality (NCDWQ), and North Carolina Wildlife Resources Commission (NCWRC) for review). b) The results, conclusions and recommendations will provide the bases for the future Long -Term Sediment Management Plan. Project No. 2619 -012 _80- Long -Term Sediment Management Plan Development Based upon results of the Sediment Removal Pilot Study, Duke will prepare a Long -Term Sediment Management Plan to guide future sediment removal operations at the Nantahala Area ROR Projects. The Long -Term Sediment Management Plan will include a maintenance drawdown and refill protocol that minimizes flow fluctuations and reservoir sediment mobilization by addressing rates of drawdown and refill (to coincide with precipitation events and rising hydrograph) and scheduling drawdowns to coincide with season of least potential for harm to downstream aquatic communities, whenever possible. In addition to the specific elements provided by the Sediment Removal Pilot Study, the Long -Term Sediment Management Plan will also include several basic elements, including the following: 1) Short Ternn Sediment k6nitoring Shady Once the FERC has issued the New License for the Franklin Project, Duke has fully implemented the Lake Level and Flow Management Plan at the Franklin Project and the two hydro units at the Franklin Project are fully restored to operational status, Duke will implement a short -term turbidity and /or suspended solids monitoring study at the Franklin Project for a period of two years. The monitoring will cover a range of operating conditions and river flows and will be used in the development of the Long - Term Sediment Management Plan for the Nantahala Area Run -of -River Hydro Projects. In order to conduct this study, Duke will utilize measurements that are already being provided by USGS at the existing Cartoogechaye Creek gage to develop a measurement of turbidity and /or suspended solids in inflows to the Franklin Project. For measurements downstream of the Franklin Project, Duke will contract with the USGS to include turbidity and /or suspended solids monitoring at the USGS gage at the Iotla Bridge (i.e., the USGS streamflow gage that Duke is proposing to reactivate for a 10 -year period per the Franklin Project Lake Level and Flow Management Plan) for a period of two years. After this two -year monitoring period, Duke will prepare a report summarizing the information and consult with the USFWS, NCWRC, NCDWQ, and NCDWR on study results. 2) Trash and [Debris nagement -, The Licensee will remove man -made trash from the intake racks and properly dispose of the trash in accordance with the Project's proposed trash removal plan. 3) Sediment Uhnagement Ran Gb ponenits The Long -Term Sediment Management Plan will incorporate trash rack maintenance guidelines, debris /sediment management and removal, and guidelines for emergency drawdown including drawdown procedures, timing, rates of drawdown and refilling, and agency notification. The Licensee will conduct a post - relicensing study to Project No. 2619 -012 determine what the adequate instream flows are if the September median flows cannot be met during those very infrequent periods. 4) Notification and Consultation The proposed Long -Term Sediment Management Plan will be prepared in consultation with the pertinent federal and state agencies (i.e., FERC, USFWS, NCDWR, NCDWQ, and NCWRC). Communication with resource and regulatory agencies about maintenance and emergency operations at the ROR Projects is a critical component of protecting the environmental resources downstream of these facilities. The Nantahala Area ROR Projects Maintenance and Emergency Protocol (MEP) is included as the Appendix to this document and covers the appropriate notifications and consultations required when a ROR Project reservoir must be drawn down or sediment removal is required. The proposed Long -Term Sediment Management Plan will also include the appropriate notifications and consultations. 5) Guidelines for Planned and Emergency Maintenance Operations Following are the initial guidelines for conducting reservoir drawdowns or sediment removal operations: a) As much as reasonably possible and except for emergency situations (see Appendix), the Licensee will endeavor in good faith to conduct sediment releases only during periods of high flows, cold temperatures, and low probability aquatic life spawning periods (e.g., spotfin chub spawning periods from June through August). b) Based on the Sediment Removal Pilot Study, site specific guidelines will be established for trashrack maintenance, emergency drawdowns, Tainter gate operation, drawdown rates and refill, offsite disposal, monitoring, and reporting during sediment removal operations. 6) Plan Adjustments After five full calendar years of operations under the provisions of the Long -Term Sediment Management Plan (i.e., after completion of the pilot study, the short -term sediment monitoring study and development and FERC approval of the final Long - Term Sediment Management Plan), the Licensee will consult with the agencies to review the implementation of the Plan and to determine if any Plan changes are needed and agreeable to all the pertinent federal and state agencies and the Licensee. Any such meeting will be scheduled and held no later than October 31 of the appropriate year. NCDETIR North Carolina Department of Environment and Natural Resources Division of Water Quality Beverly Eaves Perdue Coleen H. Sullins Dee Freeman Governor Director Secretary July 30, 2010 Steven D. Jester, Vice President Hydro Strategy, Licensing and Lake Services Duke Energy Carolinas, LLC 526 South Church Street P.O. Box 1006 Charlotte, NC 28201 -1006 Re: Nantahala Hydroelectric Project Macon and Clay Counties DWQ #2003 -1110, Version 6.0; Federal Energy Regulatory Commission Project Number 2692 APPROVAL of 401 Water. Quality Certification - REVISED Dear Mr. Jester: Attached hereto is a copy of Certification No. 3829 issued to Duke Energy Carolinas, LLC dated July 30, 2010. In addition, you should get any other applicable federal, state or local permits before .you go ahead with your project including (but not limited to) Solid Waste, Sediment and Erosion Control, Stormwater, Dam Safety, Non - discharge and Water Supply Watershed regulations. If we can be of further assistance, do not hesitate to contact us. Si rely, Coleen H. Sullins CS /jrd cc: Kevin Barnett, DWQ, Asheville Regional Office Roger Edwards, DWQ Asheville Regional Office File Copy Jim Mead, NC Division of Water Resources Ms. Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, DC 20426 Steve Johnson, Duke Energy Carolinas — Hydro Strategy and Licensing 401 Oversightlftpress Review Permitting Unit 1650 Mail Service Center, Raleigh, North Carolina 27699 -1650 Location: 2321 Crabtree Blvd„ Ralegh, North Carolina 27604 Phone: 919. 733.17661 FAX: 919 - 733-6893 Internet: http: /m2o.enrstate.nc.uslncwetlands/ An Equal Opportunity l Affirmative Action Employer Filename: Duke Energy Nantahala 401 version 1.6 NWe Calina A wroa!! Duke Energy Carolinas; LLC , Page 2 of 4 ` July 30, 2020 NORTH CAROLINA 401 WATER QUALITY CERTIFICATION THIS CERTIFICATION is issued in conformity with the requirements of Section 401 Public Laws 92 -500 and 95 -217 of the United States and subject to the North Carolina Division of Water Quality (DWQ or the Division) Regulations in 15 NCAC 21-1, Section .0500 to Duke Energy Carolinas, LLC to continue the operation of hydropower dams at the Nantahala Hydroelectric Project in Macon and Clay Counties, North Carolina pursuant to an application filed on the 7th day of December 2009 which included the Nantahala Cooperative Stakeholder Team (NCST) Settlement Agreement dated October 23, 2003 and executed on October 29, 2003. The application and supporting documentation provide adequate assurance that the proposed work will not`result in a violation of applicable Water Quality Standards and discharge guidelines. Therefore, the State of North Carolina certifies that this activity will not violate the applicable portionsof Sections 301, 302, 303, 306, 307 of PL 92 -500 and PL 95 -217 if conducted in accordance with the application, the supporting documentation, and conditions hereinafter set forth. This approval is only valid for the purpose and design submitted in the application materials and as described in the Public Notice. If the project is changed, a new application for a new Certification is required. If the property is sold, the new owner must be given a copy of the Certification and approval letter and is thereby responsible for complying with all conditions of this Certification. Any new owner must notify the Division and request the Certification be issued in their name. Should wetland or stream fill be requested in the future, additional compensatory mitigation may be required as described in 15A NCAC 2H .0506 (h) (6) and (7). If any plan revisions from the approved site plan result in a change in stream or wetland impact or an increase in impervious surfaces, the DWQ shall be notified in writing and a new application for 401 Certification may be required. For this approval to be valid, compliance with the conditions listed below is required. Conditions of Certification: 1. No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian areas beyond the footprint of the impacts depicted in the Certification. All construction activities, including the design, installation, operation, and maintenance of sediment and erosion control Best Management Practices, shall be performed so that no violations of State Water Quality Standards, Statutes, or Rules occur. 2. Sediment and erosion control measures shall not be placed in wetlands or waters to the maximum extent practicable. If placement of sediment and erosion control devices in wetlands and waters is unavoidable, they shall be removed and the natural grade restored within six months of the date that the North Carolina Division of Land Resources has released the project. 3. Duke Energy Carolinas, LLC shall identify and report in writing existing and proposed consumptive uses of Nantahala Project waters to DWQ and the North Carolina Division of Water Resources (DWR). Duke Energy Carolinas, LLC shall report the existing or projected (as appropriate) average consumptive withdrawal and maximum approved Withdrawal capacity for each water intake in excess of one million gallons per day that is located or proposed for location within the Federal Energy Regulatory Commission Duke Energy Carolinas, LLC • Page 3 of 4 July 30, 2010 (FERC) Project boundary, Duke Energy Carolinas, LLC shall report existing consumptive uses to DWQ and ,DWR within 60 days following the acceptance of the License and shall report proposed new or expanded consumptive uses to DWQ and DWR within 30 days following receipt of a written request for approval of a proposed new or expanded withdrawal and before submitting any approval requests to FERC. 4. This Certification does not grant or affirm any property right, license or privilege in any waters or any right of use in any waters. This Certification does not authorize any person to interfere with the riparian rights, littoral rights or -water use rights of any other person, and this Certification does not create any prescriptive right or any right :of priority regarding any usage of water. No person shall interpose this Certification as a defense in any action respecting the determination of riparian or littoral rights or other water use rights. No consumptive user is deemed by virtue of this Certification to possess any prescriptive or other right of priority with respect to any other consumptive user regardless of the quantity of the withdrawal or the date on which the withdrawal was initiated or expanded. This Certification issues on the express understanding of the North Carolina Department of Environment and Natural Resources (DENR) that, pursuant to Federal Power Act Section 27, 16 U.S.C. § 821, the License does not establish or determine a proprietary right to any use of water. It establishes the nature of the use to which a proprietary right may be put under the Federal Power Act. Continuinq Compliance 5. Duke Energy Carolinas, LLC shall conduct its activities in a manner consistent with State Water Quality Standards (including any requirements resulting from compliance with Section 303(d) of the Clean Water Act) and any other appropriate requirements of State law and federal law. If the Division determines that as a result of the discharge or operation of the Nantahala Project such standards or laws are not being met (including the failure to sustain a designated or achieved use) or that State or federal law is being violated, or that further conditions are necessary to assure compliance, the Division may reevaluate and modify this Certification to include conditions relative to the discharge or operation of the Nantahala Project appropriate to assure compliance with such standards and requirernei ito in accordance with i 5A NGAC 2H.0507(d). Beiui e modifying the Certification, the Division shall notify Duke Energy Carolinas, LLC and the FERC, provide public notice in accordance with 15A NCAC 2H.0503 and provide opportunity for public hearing in accordance with 15A NCAC 21-1.0504. Any new or revised conditions shall be provided to Duke Energy Carolinas, LLC in writing, shall be provided to the FERC for reference in any Permit or License issued by that agency and shall also become conditions of the FERC License for the project. Other Conditions 6. Comprehensive Settlement Agreement — The Comprehensive Settlement Agreement dated October 23, 2003 is hereby incorporated into this Certification by reference. In particular, the following sections, including any attachments identified within those sections, of the NCST Settlement Agreement dated October 23, 2003 are hereby incorporated into this Certification by reference: Section 1.0 (Reservoir Level Agreements); Section 4.0 (Minimum Flow Agreements for Bypassed Reaches); Section 7.0 Shoreline Management; Section 9.0 (Sediment Management Agreements); Section 13.0 Agreements on Compliance Monitoring and Reporting Requirements as well as Duke Energy Carolinas, LLC Page 4 of 4 July 30, 2010 Attachment B - Low Inflow Protocol (LIP) for the Nantahala Project and Attachment C - Hydro Project Maintenance and Emergency Protocol (HPMEP) for the Nantahala Project. If Duke Energy Carolinas, LLC believes that any of the listed sections or attachments of that Comprehensive Settlement Agreement are not pertinent to water quality, then they shall so notify DWQ in writing for DWQ's written concurrence. Also, this approval to proceed with your proposed impacts or to conduct impacts to waters as depicted in your application shall expire upon expiration of the License that the FERC will issue subsequent to this Certification. If you wish to contest any statement in the attached Certification you must file a petition for an administrative hearing. You may obtain the petition form from the office of Administrative hearings. You must file the petition with the office of Administrative Hearings within sixty (60) days of receipt of this notice. A petition is considered filed when it is received in the office of Administrative Hearings during normal office hours. The Office of Administrative Hearings accepts filings Monday through Friday between the hours of 8:OOam and 5:OOpm, except for official state holidays. The original and one (1) copy of the petition must be filed with the Office of Administrative Hearings. The petition may be faxed provided the original and one copy of the document is received by the Office of Administrative Hearings within five (5) business days following the faxed transmission. The mailing address for the Office of Administrative Hearings is: Office of Administrative Hearings 6714 Mail Service Center Raleigh, NC 27699 -6714 Telephone: (919) - 733 -2698, Facsimile: (919) - 733 -3478 A copy of the petition must also be served on DENR as follows: Ms. Mary Penny Thompson, General Counsel Department of Environment and Natural Resources 1601 Mail Service Center, Raleigh, NC 27699 -1601 This the 30th day of July 2010 DIVISION OF W UALITY oleen H. Sullins CS /jrd