20030147 Ver 2_EPA Comments_20071018

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Kimberly D. Bose, Secretary ~''" ~ ~ ~ 207
Federal Energy Regulatory Commission rar~,,~ - 4q~A1
888 First Street, N.E. ~~i~,~~f~ ,~~ ~~~!~ ~tCH
Washington, DC 20426
SUBJECT: Draft Environmental Impact Statement for Hydropower Licenses for the Yadkin
Hydroelectric Project (FERC Project No. P-2197-073); and the Yadkin-Pee Dee
River Hydroelectric Project (FERC Project No. P-2206-030) in Anson, Davidson,
Davie, Montgomery, Richmond, Rowan, and Stanly Counties, North Carolina
Dear Secretary Bose:
The U.S. Environmental Protection Agency (EPA) has reviewed the referenced Draft
Environmental Impact Statement (EIS) in accordance with its responsibilities under Section 309
of the Clean Air Act and Section 102(2)(C) of the National Environmental Policy Act (NEPA).
The Federal Energy Regulatory Commission (FERC) proposes to approve two new major
licenses for the Yadkin Hydroelectric Project, FERC Project No. 2197 (Yadkin Project) and the
Yadkin-Pee Dee River Hydroelectric Project, FERC Project No. P-2206 (Yadkin-Pee Dee
Project). The Yadkin Project is located on the Yadkin River in Davidson, Davie, Montgomery,
Rowan, and Stanly Counties, North Carolina. The Yadkin-Pee Dee Project is located on the
Yadkin and Pee Dee Rivers in Anson, Montgomery, Richmond, and Stanly Counties, North
Carolina. The Yadkin Project is owned by Alcoa Power Generating Inc. (Alcoa Generating), and
Progress Energy Carolinas (Progress Energy) owns and operates the Yadkin-Pee Dee Project.
The current licenses will expire on February 10, 2008. Alcoa Generating and Progress Energy
filed license applications with FERC for two new licenses under Part I of the Federal Power Act
on Apri125, 2006, and April 26, 2006, respectively.
The Yadkiri Project has an installed capacity of 210 megawatts (MW) and includes four
hydroelectric dams with associated reservoirs in central North Carolina. The four hydroelectric
developments, High Rock, Tuckertown, Narrows, and Falls, are located on a 38-mile stretch of
the Yadkin River. The Yadkin-Pee Dee Project has an installed capacity of 108.6 MW and
includes two hydroelectric developments, Tillery and Blewett Falls, located on an approximately
46-mile stretch of the Yadkin-Pee Dee River in central North Carolina. The Yadkin River
becomes the Pee Dee River at its confluence with the Uwharrie River located at the upper end of
Tillery reservoir. Outflows .from the Tillery Development flow into the Blewett Falls reservoir
after passing through a 20.5-mile reach of the Pee Dee River. Downstream from the Blewett
Falls dam, the Pee Dee River flows approximately 16 miles where it enters South Carolina.
From there it continues for approximately 172 miles unimpounded before it enters the Atlantic
Ocean via Winyah Bay.
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Three alternatives were evaluated in the Draft EIS: 1) the no action alternative
(continued operation as required by the existing licenses); 2) final settlement agreement (FSA)
conditions developed by Alcoa Generating and Progress Energy in cooperation with a number of
.public and private stakeholders; and 3) FERC staff-recommended alternative for both licenses.
The FERC staff alternative, which includes the FSA conditions and some additional
modifications, is the preferred alternative.
EPA participated in the enhanced-traditional FERC relicensing process for both
licensees, including acting as a participant in the settlement agreement proceedings referenced in
the Draft EIS. We were involved with several issue advisory groups and resource working
groups related to the development of specific study plans and conducted reviews and submitted
comments on draft study reports. EPA submitted comments on the Draft License Applications
and signed onto the two Agreements in Principle that preceded the FSAs. However, EPA did not
sign the FSAs due to concerns related to our statutory and regulatory roles.
Despite not signing the FSAs, EPA strongly supports the collaborative process that was
used to develop the FSAs, as well as many of the individual elements contained in the FSAs that
aze now lazgely represented in the FERC staff alternative. These agreements represent
significant attempts on the part of Alcoa Generating and Progress Energy to balance many
stakeholder interests through intensive mutual gains negotiations. The settlement agreements
described in Section 2.2 of the Draft EIS constitute a comprehensive and balanced approach to
water and natural resource management within the Project azea and downstream.
There aze significant environmental protection and enhancement measures proposed as
part of the FERC staff alternative for the new licenses. EPA would like to highlight those that
aze of particulaz importance for inclusion in the new license for these projects. EPA supports the
increased and more regulaz downstream flows (measured as either daily average or continuous
minimum) throughout the project to better protect aquatic life, including the flow adjustment
periods during the spring to enhance fish. spawning below Blewett Falls. Given the disagreement
on the appropriate level of minimum flows to be provided below Tillery dam, EPA strongly
supports the need for a comprehensive monitoring program to ensure that the provided minimum
flows aze adequately protecting aquatic life in the Pee Dee River below Tillery. EPA also
supports FERC's recommendation to develop the monitoring plan in consultation with
appropriate agencies and to include specific evaluation criteria to assist in the identification and
implementation of appropriate corrective measures, if necessary. We recommend that this
consultation include EPA, U.S. Fish and Wildlife Service, National Marine Fisheries Service,
North Cazolina Department of Environment and Natural Resources, and the North Cazolina
Wildlife Resources Commission, at a minimum.
The coordination between the Yadkin Project and the downstream Yadkin-Pee Dee
Project to provide these downstream flows and participate in ajointly-managed low inflow
protocol (LIP), a critical addition to the new license, should be commended. The LIP prescribes
how both projects would be operated and water conserved during periods when there is not
enough water in the system to meet all needs. The inclusion of the LIP in the new license is vital
to ensure that the critical low flows necessary to continue to meet water quality standards and
aquatic life use support are provided during times of drought.
2

Another important element of the preferred alternative for both projects is inclusion of
commitments by Alcoa Generating and Progress Energy to undertake a series of Project
modifications designed to increase dissolved oxygen (DO) concentrations and enhance water
quality in the six Project tailwaters. Currently, dischazges from all six project developments do
not meet state water quality standazds for DO during several months of the yeaz. Several
waterbodies in the project azea, including reaches of the Yadkin/Pee Dee River, aze not meeting
their designated uses and are considered impaired by the State of North Cazolina for turbidity,
chlorophyll a, and low DO. EPA supports an overall program and commitments in the new
license to ensure that dischazges from all six dams meet state water quality standazds. It is our
expectation that the Clean Water Act Section 401 Water Quality Certification from the State of
North Cazolina will include provisions that require the two applicants to meet state DO water
quality standards. In this regazd, EPA supports inclusion of the proposed DO enhancement
program in both licenses, including rigorous continuous monitoring, to validate success of the
project modifications.
EPA also supports the limitations on Project reservoir level fluctuations during important
spring spawning periods, as well as the proposed shoreline management policy for Blewett Falls
Reservoir that would prohibit private access across Project lands except at the designated public
access azeas. By this measure, shoreline management will focus on natural resource protection
to preserve the largely undisturbed nature of the Blewett Falls impoundment.
Based on the extensive environmental protection measures and monitoring programs
described in the Draft EIS, EPA has no additional concerns related to this project. We rate this
document LO (Lack of Objections). We appreciate the opportunity to review the proposed
action. Please contact Ben West of my staff at [phone] if you have any questions or want
to discuss our comments further.
Sincerely,
Heinz J. Mueller, Chief
NEPA Program Office
Office of Policy and Management
cc: U.S. Fish and Wildlife Service, Raleigh Office
U.S. Forest Service -National Forests in North Carolina
North Cazolina Division of Water Resources
North Carolina Division of Water Quality
North Cazolina Wildlife Resources Commission
South Cazolina Department of Natural Resources
South Cazolina Department of Health and Environmental Control
Alcoa Generating
Progress Energy