20070812 Ver 1_Public Comments_20080502 (2648)

ffiv�:
VA
NCDENR
North Carolina Department of Environment and
Division of Water Resources
Michael F. Easley, Governor
May 2, 2008
Mr. John Dorney
Division of Water Quality
Wetlands and Stormwater Branch
2321 Crabtree Boulevard
Raleigh, NC 27604
Subject: Application for 401 Water Quality Certification
Yadkin Hydroelectric Project (FERC No. 2197)
Alcoa Power Generating Inc., Stanly County
DWQ project Number 2007-0812
Dear Mr. Dorney:
Natural Resources
William G. Ross Jr., Secretary
John Morris, Director
MAY 2 2008
DENR - WATER QUAUTY
WETLANDS AND sTORMWATER BRANCH
The Division of Water Resources (DWR) has reviewed the Public Notice for this action issued by the Division
of Water Quality on April 16, 2008. DWR provided comments on the initial Application for 401 Water Quality
Certification for the Yadkin Hydroelectric Project by our letter to you of July 11, 2007. We have no additional
comments to add to our earlier comments. We are attaching a copy of our July 11, 2007 letter to you and ask
that these comments be included in the record for developing the new 401 Certification.
Please contact me at 715-5424 or Steven.Reed(a�ncmail.net should you have any questions regarding our
comments.
Sincerely,
"$Z�
Steve Reed
Hydropower Licensing Coordinator
Attachment
cc: Jim Mead (DWR)
Todd Ewing (WRC)
Marc Bernstein (NC DOJ)
1611 Mail Service Center, Raleigh, North Carolina 27699-1611
Phone: [phone] FAX: [phone] Internet: www.ncwater.org
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No thCarolina
Naturallff

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Resources
Michael F. Easley, Governor William G. Ross Jr., Secretary
July 11, 2007 John Morris, Director
Mr. John Dorney
Division of Water Quality
Water Quality Section
2321 Crabtree Boulevard
Raleigh, NC 27604
Subject: Application for 401 Water Quality Certification
Yadkin Hydroelectric Project (FERC No. 2197)
Alcoa Power Generating Inc., StanlyCounty
Dear Mr. Dorney:
The Division of Water Resources (DWR) has reviewed Alcoa Power Generating Incorporated's (APGI)
application for a 401 water quality certification in conjunction with the license application submitted to the
Federal Energy Regulatory Commission (FERC) for APGI's Yadkin Hydroelectric Project. DWR has been
an active participant during the relicensing process and our involvement has included: scoping and refining
issues to be addressed; review and/or design of technical studies; participation in field studies; participation on
various technical work groups; and review and providing comments on technical studies. We have reached
consensus with other resource agencies and other interests regarding the protection, mitigation, and
enhancement measures needed for this project. DWR along with other DENR divisions, fellow resource
agencies, APGI, and the majority of stakeholders involved in the relicensing process signed an relicensing
Settlement Agreement (RSA) on March5, 2007. Components of the RSA provide an enhanced instream flow
regime for the Pee Dee River downstream of Blewett Falls Dam, project modifications to meet State water
quality standards for dissolved oxygen in tailwaters, improved reservoir levels, modification of the shoreline
management plan, and donation or sale of important conservation lands.
We recommend that the following conditions be included in the 401 certification. These recommendations
are some of the Proposed License Articles in the Relicensing Settlement Agreement related to project
operations, instream flows, water quality, land protection and compliance monitoring for a New FERC
License for the Yadkin Project. References herein to the "License" are to the new FERC license for which
DWQ is considering 401 certification, and the reference includes the new license and all annual licenses
thereafter.
Nne
orthCarolina
Naturally
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Proposed License Articles
Project Operations
Unless in accordance with the Hydro Project Maintenance and Emergency Protocol and Low Inflow Protocol,
Project minimum flows take priority over reservoir water elevations, as specifically described in Articles PO -1
and PO -2, below.
Article PO -1- Reservoir Operations
High Rock Reservoir Operations
The Licensee shall operate High Rock Reservoir at or above the normal minimum elevation (NME) as depicted
on the High Rock Operating Curve (Figure PO -1), except as needed in order to maintain minimum flows or as
provided under the Low Inflow Protocol (LIP) or the Hydro Project Maintenance and Emergency Protocol
(HPMEP). High Rock Reservoir may be drawn down below its NME in order to meet the Required Minimum
Instream Flow at Falls, as specified in License Article PO -2, only after Narrows Reservoir has reached its NME.
If High Rock Reservoir water elevation is below NME at 12:01 AM on any operating day, where the operating
day is defined as 12:01 AM through 12:00 midnight, the Licensee shall reduce releases from High Rock
Reservoir for that operating day up to the maximum of the daily average flow equivalent of the minimum flow
requirement at Falls, as specified in License Article PO -2. Under this condition, releases from Falls will be
limited to the those defined in License Article PO -2.
624.9
623.9
622.9
621.9
0 620.9
H
619.9
x
c
618.9
0
617.9
m
w 616.9
.e
Z 615.9
614.9
613.9
612.9
611.9
610.9
Figure PO -1. High Rock Reservoir Operating Curve
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
F II Pond ElJvation (6211.9 ft)
..................... _... _....................... -..................... ................................ ........................... ........................ .......... ...................
I
Note: During periods for fill and drawdown during March and November High Rock j
Reservoir would transition between the 4 foot and 10 Operating Curve, with water
elevations increasing or decreasing, as applicable, generally along a straight line.
Normal Minimum Elevation — —Full Pond

Tuckertown Reservoir Operations
The Licensee shall operate Tuckertown Reservoir at or above the NME as depicted on the Tuckertown
Operating Curve (Figure PO -2), except as provided in the HPMEP.
Figure PO -2. Tuckertown Reservoir Operating Curve
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
565.7
Full Pond El..ti.. (56J7 ft)
564.7
563.7
562.7
C) u) 561.7
560.7
559.7
558.7
557.7
556.7
555.7
554.7
553.7
552.7
551.7
Normal Minimum Elevation —Full Pond]

Narrows Reservoir Operations
The Licensee shall operate Narrows Reservoir at or above the NME as depicted on the Narrows Operating
Curve (Figure PO -3), except as needed in order to maintain minimum flows, or as provided under the LIP or
HPMEP.
Figure PO -3. Narrows Reservoir Operating Curve
Jan Feb Mar Apr May Jun Jul Aug Sep Oct - Nov Dec
510.8...............................................................................................................................................................................................................................................................................................
Full and m ...ion .........................1;
509.8
508.8 -- - -- --
507.8—�------
506.8 —
N
505.8 —
504.8
r°
503.8
m �
w 502.8 --
501.8
a
500.8 --
499.8 —
498.8
497.8
496.8
Normal Minimum Elevation — —Full Pond

Falls Reservoir Operations
The Licensee shall operate Falls Reservoir at or above the NME as depicted on the Falls Operating Curve
(Figure PO -4), except as provided in the HPMEP.
Figure PO -4. Falls Reservoir Operating Curve
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
333.8
Full Po d Elevati n (332.8 k
332.8 --- '
i
331.8 ---- -- -- -
330.8
v) 329.8 -- ---
W I
328.8
327.8
c ---i
.' 326.8 --
v
w 325.8 -- —
'o
ro 324.8 ---- - -- ---=
w i
323.8
322.8 -
i
3
321.8
—a
320.8 -- --
319.8
—Normal Minimum Elevation — —Full Pond
Reservoir Stabilization to Enhance Fish Spawning
From April 15 through May 15 of each year, the Licensee will endeavor to maintain reservoir water elevations
at all four Project reservoirs no lower than -1.0 feet below the elevation of each reservoir on April 15 in order to
enhance conditions for fish spawning in the reservoirs. No later than August 31 of each year, the Licensee will
report the resulting reservoir water elevations at each reservoir during the April 15 through May 15 period in a
letter report to the North Carolina Wildlife Resources Commission (NCWRC). The letter report will provide an
explanation of any circumstances that prevented the Licensee from maintaining the target water elevations.
Within 60 days of filing the letter report with the NCWRC, a copy of the letter report will be filed with the
Commission. Satisfaction of these reporting commitments shall constitute compliance with this License
Article.

Article PO -2 - Project Instream Flows
Required Minimum Instream Flows
Commencing no later than six months from the effective date of this License and except when operating under
the LIP or HPMEP, the Licensee shall operate the Project so as to provide a daily average minimum flow from
the Falls Development in accordance with the following schedule:
June 1 — January 31 1,000 cfs
February 1 — May 15 2,000 cfs
May 16 — May 31 1,500 cfs
Article PO -3 - Flow and Reservoir Elevation Monitoring
Within six months of the effective date of this License, the Licensee shall file with the Commission a final Flow
and Reservoir Elevation Monitoring and Compliance Plan for the Yadkin Project. The Flow and Reservoir
Elevation Monitoring and Compliance Plan shall be developed in consultation with the North Carolina Division
of Water Resources (NCDWR), the North Carolina Division of Water Quality (NCDWQ), the South Carolina
Department of Natural Resources (SCDNR), the U.S. Geological Survey (USGS) and the Downstream Licensee
(the Licensee of the Yadkin -Pee Dee River Project, FERC No. 2206), and shall include detailed provisions for
monitoring reservoir water elevations and for monitoring flows from both the Narrows and High Rock
developments.
The Licensee shall include with the final plan documentation of consultation, copies of comments and
recommendations on the draft plan after it has been prepared and provided to the agencies and Downstream
Licensee, and specific descriptions of how comments are accommodated by the final plan. The Licensee shall
allow a minimum of 30 days for the agencies and Downstream Licensee to comment 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 information.
The Commission reserves the right to require changes to the plan. Upon Commission approval, the Licensee
shall implement the plan, including any changes required by the Commission. The Licensee shall file the final
plan with the North Carolina Division of Water Quality within 30 days of receiving Commission approval.
Flow monitoring through the High Rock Development powerhouse will measure flow release from the High
Rock development required under License Article PO -1 or under the Low Inflow Protocol. Daily average flows
within +25% of the applicable maximum flow, measured from 12:01 AM to 12:00 midnight, shall be considered
compliant for each operating day.
Flow monitoring in the Falls Development outflow will serve as the compliance measure for the minimum flow
release from the Falls Development required under License Article PO -2 or under the Low Inflow Protocol.
Daily average flows within -5% of the applicable minimum flow, measured from 12:01 AM to 12:00 midnight,
shall be considered to be in compliance for any operating day so long as the applicable daily average minimum
flow is achieved on a weekly average basis, measured from 12:01 a.m. Saturday to 12:00 p.m. midnight Friday.
Whenever High Rock is drawn down below its NME, releases from Falls shall be limited to +/- 5% of the cfs
equivalent of the Required Instream Minimum Flow at Falls, as measured on a weekly average basis from 12:01
a.m. Saturday to 12:00 p.m. midnight.

The Licensee shall endeavor to meet the Required Minimum Instream Flows required in Article PO -2 and shall
not intentionally utilize the flow variances provided above. The Licensee shall prepare an annual flow
monitoring report documenting its compliance with minimum releases, including a record of any days during
the year when the daily average required minimum instream flow fell within the -5% and was made up as part
of the weekly average, a record of flows during any period when High Rock was below its NME, and a record
of any LIP events. The Licensee shall file the report with the Commission and NCDENR summarizing its
evaluation by no later than March 31 of the following year. Article PO -4 - Low Inflow Protocol
The Licensee shall comply with the requirements of the Low Inflow Protocol shown below to the extent such
requirements are enforceable by this License.
Article PO -4 - Low Inflow Protocol
This License Article highlights the responsibilities of the Licensee from Appendix A, "Low Inflow Protocol for
the Yadkin -Pee Dee River Hydroelectric Projects" (LIP), of the Yadkin Hydroelectric Project, FERC No. 2197,
Relicensing Settlement Agreement.
3.1.4.1 Definitions
The following definitions shall be applicable to this Article PO -4:
1. Stream Gage Three -Month Rolling Averaee Flow — The three-month rolling average of streamflow at the
following U.S. Geological Survey (USGS) stream gages:
• Yadkin River at Yadkin College (02116500)
• South Yadkin River near Mocksville (02118000)
• Abbotts Creek at Lexington (02121500)
• Rocky River near Norwood (02126000)
On the last day of each month, the Licensee shall calculate the arithmetic mean of (a) the daily flows of the
current month and (b) the arithmetic mean of the daily flows of each of the two preceding months. The sum
of the three-month rolling average for these four gage stations shall be compared by the Licensee to the
Historic Stream Gage Three -Month Rolling Average Flow for the corresponding period and a percentage of
Historic Three -Month Rolling Average shall be calculated.
2. Historic Stream Gage Three -Month Rolling Average Flow — The historical three-month rolling average flow
for each of the four designated USGS stream gages for the period 1974 through 2003 (except for the
Abbotts Creek gage, for which the period is 1988 through 2003) are set forth in Table LIP -1 below:
Table LIP -1. Historic Stream Gage Three -Month Rolling Average Flow
HirriC`ih�rCE-Mn�nth r
rval�tian tsi
Average of daily flows
m
o{
RE/><ht�
y�
w' Trig�rba3
1,--
�'.. �� `? �u i" E�.,n... '.,
�
��erage Fliv��f
January 1
Oct -Nov -Dec
4,000
February 1
Nov -Dec -Jan
5,200
March 1
Dec -Jan -Feb
6,250
April 1
Jan -Feb -Mar
7,700
May 1
Feb -Mar -Apr
7,550
June 1
Mar -Apr -May
6,850

July 1
Apr -May -Jun
5,350
August 1
May -Jun -Jul
4,200
September 1
Jun -Jul -Aug
3,600
October 1
Jul -Aug -Sep
3,200
November 1
Aug -Sep -Oct
3,300
December 1
Sep -Oct -Nov
3,550
3. Full Pond Elevation -The Full Pond Elevation for each development's reservoir is listed in Table LIP -2.
Table LIP -2. Full Pond Elevations
4. Normal Minimum Elevation (NME) - NME for each Project reservoir is listed in Table LIP -3.
fable LIP -3. Normal Minimum Elevations (feet, USGS datum - N
GVD 1929)
5. U.S. Drought Monitor Three -Month Numeric Average - The Licensee shall calculate a three-month rolling
average of U.S. Drought Monitor (http://www.drought.unl.edu/dm/monitor.htmI.) values by (a) assigning a
numeric value equal to the highest U.S. Drought Monitor designation (e.g. D0=0, D1=1, D2=2, D3=3 and
D4=4) for any part of the Yadkin -Pee Dee River Basin draining to Blewett Falls development as of the last
day of that month; and (b) calculating an arithmetic mean of that numeric value and numeric values
correspondingly assigned for the previous two months. A normal condition in the basin, defined as the
absence of a drought designation, shall be assigned a numeric value of negative one (4).
6. Yadkin -Pee Dee River Basin Droueht Manaeement Advisory GCOun (YPD-DMAG) -The YPD-DMAG
shall consist of one representative from each of the following organizations (to the extent that they are
willing to participate): Alcoa Power Generating Inc. (APGI), Progress Energy (PE), 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 Wildlife
High
ticker
on
"
Rock'
Na ws
, r
. Falls
FuR Pond 62 .9
-509.8
332.8 -`':
January 1
613.9
561.7
504.8
328.8
February 1
613.9
561.7
504.8
328.8
March 1
transition
561.7
504.8
328.8
April 1
619.9
561.7
504.8
328.8
May 1
619.9
561.7
504.8
328.8
June 1
619.9
561.7
504.8
328.8
July 1
619.9
561.7
504.8
328.8
August 1
619.9
561.7
504.8
328.8
September 1
619.9
561.7
504.8
328.8
October 1
619.9
561.7
504.8
328.8
November 1
transition
561.7
504.8
328.8
December 1-15
613.9
561.7
504.8
328.8
Decemberl6-31
613.9
561.7
504.8
328.8
GVD 1929)
5. U.S. Drought Monitor Three -Month Numeric Average - The Licensee shall calculate a three-month rolling
average of U.S. Drought Monitor (http://www.drought.unl.edu/dm/monitor.htmI.) values by (a) assigning a
numeric value equal to the highest U.S. Drought Monitor designation (e.g. D0=0, D1=1, D2=2, D3=3 and
D4=4) for any part of the Yadkin -Pee Dee River Basin draining to Blewett Falls development as of the last
day of that month; and (b) calculating an arithmetic mean of that numeric value and numeric values
correspondingly assigned for the previous two months. A normal condition in the basin, defined as the
absence of a drought designation, shall be assigned a numeric value of negative one (4).
6. Yadkin -Pee Dee River Basin Droueht Manaeement Advisory GCOun (YPD-DMAG) -The YPD-DMAG
shall consist of one representative from each of the following organizations (to the extent that they are
willing to participate): Alcoa Power Generating Inc. (APGI), Progress Energy (PE), 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 Wildlife

Resources Commission (NCWRC), South Carolina Department of Natural Resources (SCDNR), South
Carolina Department of Health and Environmental Control (SCDHEC), the United States Fish and Wildlife
Service (USFWS), High Rock Lake Association (HRLA), Badin Lake Association (BLA), Duke Power
Company, Lake Tillery Homeowners Association, South Carolina Pee Dee River Coalition (SCPDRC) and
owners of intakes that withdraw more than one million gallons of water per day from the impoundments of
either the Yadkin Project (P-2197) or the Yadkin -Pee Dee Project (P-2206).
3.1.4.2 Implementation Procedure
Table LIP -4 sets forth the combinations of conditions under which the LIP shall be implemented. The
determination of the applicable LIP Stage shall be made using the High Rock Reservoir water elevation as
of midnight between the last day of the previous month and the first day of the current month in
combination with the U.S. Drought Monitor Three -Month Numeric Average and the Stream Gage Three -
Month Rolling Average Flow to determine the need to declare or change a Stage of the LIP. The LIP shall
be implemented beginning at Stage 0 and, if the combination of conditions becomes more severe, the Stages
shall increase in one Stage increments.
' Tible
iO4.unaaartiry,tiiF �t7g��1`S �- /� � ;
�� nl.
,E
t3S D�atgh eattor�
Stretlm Gaga Three Month -
-
Stage
�tti h mock Reservo,r
.. gThreeitRt�arinrrt�
_
�
TLo Average
,' I liv t30a
or
< NME minus 0.5 ft
and
any
or
any
9
OR
< NME
and either
>_ 0
or
<48 %
1
<NME minus 1 ft
and either
2 I
or
<41 %
2 _
<NME minus 2 ft
and either
>_ 2
or
<35 %
3
<NME minus 3 ft
and either
>_ 3
or
<30%
4,
<'/: of( NME minus Critical
and either
>_ 4
or
`30%
Reservoir Water Elevation)
1. The average daily flows set forth in Table LIP -5 shall be initiated no later than seven days after the
determination of the applicable LIP Stage and shall be in effect for the balance of the month except as
provided in Section 3.1.4.3.

3. The Licensee shall notify via email the Commission and NCDWR of LIP implementation or a change in
Stage as soon as practicable but no later than (i) three business days after a Stage 0 determination; (ii) two
business days after a Stage 1 or a Stage 2 determination; or (iii) 48 hours after a Stage 3 or Stage 4
determination.
4. The Licensee shall consult with the YPD-DMAG with respect to issues relating to or arising out of
implementation of the LIP, including, but not limited to, (i) notification to the public of the possible effects
of and/or continuance of drought; (ii) issues relating to the effects of drought conditions on life, health,
property, wildlife, aquatic life; (iii) possible public health concerns; and (iv) short and long term prospects
for recovery from drought.
5. The Licensee shall develop and provide information on its website to inform the public on reservoir water
elevations, Project releases, usability of public access areas, reservoir inflows, meteorological forecasts,
Historic and Actual Stream Gage Three -Month Rolling Average Flow calculations, U.S. Drought Monitor
Three -Month Numeric Average calculations, LIP status, YPD-DMAG meeting summaries, and
implementation of maintenance or emergency operation plans.
Article PO -5 - Hydro Project Maintenance and Emergency Protocol
If conditions so warrant, the Licensee shall operate the Project in accordance with the Hydro Project
Maintenance and Emergency Protocol (HPMEP).
Water Quality
Article WQ-1 -Water Quality
The Licensee shall operate the Project in accordance with the conditions of the water quality certification
submitted by the North Carolina Division of Water Quality under section 401 of the Clean Water Act.

Article WQ-2 - Dissolved Oxygen Monitoring
The Licensee shall conduct dissolved oxygen (DO) monitoring pursuant to the DO Monitoring Plan approved
by the North Carolina Division of Water Quality (NCDWQ) as part of the water quality certification issued by
that agency and attached to this License as an Appendix. Any subsequent amendments to the DO Monitoring
Plan approved in writing by NCDWQ shall also be approved by the Commission prior to implementation.
Copies of the annual DO monitoring reports submitted to NCDWQ shall be filed with the Commission within
30 days of their filing with NCDWQ.
Shoreline Management
Article SMP -1 - Shoreline Management Plan
The Licensee shall file a revised Shoreline Management Plan (SMP) for the Project with the Commission within
two years of the effective date of this License. The Licensee shall revise the SMP in consultation with state and
federal resource agencies and other interested parties. The Licensee shall provide the consulted parties with a
30 -day period to review and comment on a draft revised SMP. The Licensee shall include with its filing copies
of all comments received on the draft revised SMP and a discussion of those comments, including whether the
Licensee adopted the comments or the Licensee's rationale for not incorporating the comments in the final
revised SMP.
The Commission reserves the right to require changes to the SMP. Upon Commission approval, the Licensee
shall implement the approved SMP, including any changes required by the Commission.
If you have questions regarding these recommendations, please contact me at 919-715-5424 or
[e-mail]. The Division of Water Resources would appreciate receiving a draft version of the
401 certification before it is released for public comment, so that we can review it and discuss any questions we
might have with you and your staff.
Sincerely,
Steve Reed
Hydropower Licensing Coordinator
cc: Jim Mead (DWR)
Darlene Kucken (DWQ)
Todd Ewing (WRC)
Marc Bernstein (NC DOJ)