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HomeMy WebLinkAbout20031113 Ver 6_401 Application_20091208I P Duke Energye Carolinas December 7, 2009 Mr. John Dorney North Carolina Division of Water Quality (NCDWQ) 2321 Crabtree Boulevard Raleigh, NC 27604 HYDRO LICENSING AND LAKE SERVICES Duke Energy Carolinas, LLC 526 South Church St. Charlotte, NC 28202 Mailing Address: EC12K / PO Box 1006 Charlotte, NC 28201-1006 5kO1,NV i5 DEC - 03 2009 DENR - WATER QUALITY WETLANDS AND STORAIWATER BRANCH Re: Withdrawal and Re-submittal of Application for 401 Water Quality Certification West Fork Hydroelectric Project, FERC No. 2686 DWQ # 2003-1113 V 10 Dear Mr. Dorney: By a letter dated December 8, 2008, Duke Energy Carolinas, LLC ("Duke") filed a 401 Water Quality Certification (401 WQC) application with the NCDWQ for relicensing of the West Fork Project. Since the one-year timeframe that FERC allows states to process 401 WQC applications expires on December 10, 2009 (i.e., one year following the date that Duke's WQC application was stamped accepted by NCDWQ) for the West Fork Project, Duke hereby Withdraws the previous 401 WQC application that was stamped received by NCDWQ on December 10, 2008 and is simultaneously submitting a new 401 WQC application to NCDWQ for the West Fork Project. Enclosed is the application fee of $570 for the West Fork Project. At this time, Duke is also requesting that the NCDWQ place a hold on the processing of the West Fork Project 401 WQC application. Duke is requesting this hold because final disposition of the Dillsboro Project is an important consideration in the Tuckasegee Cooperative Stakeholder Team Settlement Agreement (which also addresses the West Fork Project) and regulatory approvals related to the Dillsboro Project are not fully resolved. We request that you provide public notice of this application within 20 days of the day of receipt. We will be glad to work with you to identify local newspapers as well as place and pay for the appropriate notices. The demolition and removal of the Dillsboro Dam and Powerhouse is anticipated to be completed by March, 2010, at which time Duke will request that NCDWQ begin processing the West Fork 401 WQC application. If there are any questions, please call Steve Johnson at 704-382-4240 or Phil Fragapane at 704-382-4138. Sincerely, Z e--111 ,4,e tcl Steven D. Jester, Vice President Hydro Strategy, Licensing and Lake Services Duke Energy Carolinas, LLC SDJ/sj www. duke-energy. com c: Mr. Kevin Barnett, Asheville NCDWQ Regional Office Mr. Jim Mead, NC Division of Water Resources Secretary, FERC Jeff Lineberger, Duke Energy Carolinas, LLC Steve Johnson, Duke Energy Carolinas, LLC Phil Fragapane, Duke Energy Carolinas, LLC Garry Rice, Duke Energy 2 DWQ ID: 03-1113 FERC 401 WATER QUALITY CERTIFICATION APPLICATION For existing Federal Energy Regulatory Commission (FERC) Permits * SEND SEVEN (7) COPIES AND THE APPROPRIATE FEE (SEE ITEM # 16)* OF THIS APPLICATION TO: THE NC DIVISION OF WATER QUALITY ATTN: JOHN DORNEY 2321 CRABTREE BLVD., SUITE 250 RALEIGH, NC 27604 (PLEASE PRINT OR TYPE) 1. OWNER'S NAME: Duke Energy Carolinas, LLC ("Duke") Note: Duke is the both the applicant for the 401 Water Quality Certificate, and the Owner and Licensee of the West Fork Tuckasegee River Hydroelectric Proiect. 2. MAILING ADDRESS: 526 South Church Street, CITY: Charlotte STATE: North Carolina ZIP CODE: 28202 PROJECT NAME: West Fork Tuckasegee River Hydroelectric Proiect, FERC No. 2686 ("Proiect") PROJECT LOCATION ADDRESS (IF DIFFERENT FROM MAILING ADDRESS ABOVE): Thorpe Station 13201 Highway 107 Tuckasegee, NC 28783 Tuckasegee Station 41 Disney Lane Version 1.0 January, 1999 Tuckasegee, NC 28783 )382-5942 3. TELEPHONE NUMBER: (WORK) (294 4. IF APPLICABLE: AGENT'S NAME OR RESPONSIBLE CORPORATE OFFICIAL, ADDRESS, and PHONE NUMBER: Mr. Jeffrey G. Lineberger, Director, Hydro Strategy and Licensing Duke Energy Carolinas, LLC 526 South Church Street, Charlotte, NC 28202 5. LOCATION PROJECT (PROVIDE A MAP, INCLUDING A COPY OF USGS TOPOGRAPHIC MAP OR AERIAL PHOTOGRAPHY WITH SCALE): COUNTY: Jackson NEAREST TOWN: Glenville SPECIFIC LOCATION (INCLUDE ROAD NUMBERS, LANDMARKS, ECT.) See attached map 6. IMPACTED STREAM/RIVER: West Fork Tuckasegee River RIVER BASIN: Little Tennessee River Basin CURRENT DIVISION OF WATER QUALITY (DWQ) CLASSIFICATION: West Fork Tuckasegee River and all regulated tributaries: WS-III, Class B, Class C, OWR, TR 7. (a) IS THE PROJECT LOCATED WITHIN A NORTH CAROLINA DIVISION OF COASTAL MANAGEMENT AREA OF ENVIRONMENTAL CONCERN (AEC)? YES 1 NO (b) IF THE PROJECT IS LOCATED WITHIN A COASTAL COUNTY (SEE PAGE 7 FOR LIST OF COASTAL COUNTIES), WHAT IS THE LAND USE PLAN (LUP) DESIGNATION? Version 1.0 January, 1999 (a) ARE ADDITIONAL PERMIT REQUESTS EXPECTED FOR THIS PROPERTY IN THE FUTURE? YES ? NO H IF YES, DESCRIBE ANTICIPATED WORK: (a) ESTIMATED TOTAL NUMBERS OF ACRES IN PROJECT: The total West Fork Proiect includes 1,470 acres (surface area at full pond of reservoirs) and approximately 323 acres of land. The West Fork Proiect includes the following reservoirs: ¦ Lake Glenville -1,462 acres at a full pond elevation of 3,491.7 feet above mean sea level (msl); and ¦ Tuckasegee Lake - 7.9 acres at a full pond elevation of 2,278.75 feet msl 10. PROVIDE AN APPROPRIATE ENVIRONMENTAL DOCUMENT. THE DOCUMENT SHOULD ADDRESS: (a) DATA SHOWING THAT A 7Q10 MINIMUM FLOW WILL BE PROVIDED The West Fork Proiect hydro stations are operated as peaking stations under normal flow and water conditions. During periods of high stream flow and high reservoir elevation, the stations are operated at maximum load, 24 hours a day, if necessary, to minimize spilling. In accordance with the Tuckasegee Cooperative Stakeholder Team (TCST) Settlement Agreement, several flow-related Protection, Mitigation, and Enhancement Measures (PM&E) were agreed upon by the stakeholder team, including the NCDWQ (see the attached Settlement Agreement- Section 4.0 for details). These minimum flow related measures are as follows: ¦ Duke shall provide minimum flows of 20 cfs or inflow into Tuckasegee Lake, whichever is less, from Tuckasegee Lake into the West Fork of the Tuckasegee River at Tuckasegee Dam from January 1 to December 31 of each year. These flows will begin on January 31, 2006 or upon acceptance of the new FERC license by Duke, whichever is later. Duke may temporarily vary from the minimum flows identified above if required by conditions beyond its control or by operating emergencies or maintenance needs as defined in Attachments B and C of the attached Settlement Agreement. Such temporary variances shall be in accordance with the Low Inflow Protocol or the Hydro Proiect Maintenance & Emergency Protocol, incorporated into the attached Settlement Agreement. Version 1.0 January, 1999 ¦ Duke shall calibrate the existing staff gage located just upstream of the Tuckasegee Powerhouse tailrace within 60 days following acceptance of the new FERC license by Duke and at least once every two years thereafter. ¦ The Parties to the Settlement Agreement agree that Duke will continue providing each minimum flow for each release point as specified by the current license, even after expiration of the current license, until the new minimum flow, pursuant to the New License, for any specific release point is required to be implemented under terms of the New License. (b) A COST BENEFIT ANALYSIS OF THE PROJECT SHOWING WHY THE PROJECT IS STILL NECESSARY Please see Exhibit H (Supplemental Information), Section H2.0 of the West Fork License Application for pertinent cost benefit information. A summary is as follows: The benefits of the West Fork Project as a resource for both capacity and energy can be expressed in terms of avoided costs. For the purposes of this evaluation, avoided costs are energy and capacity costs, which would be incurred by Duke if the hydro project was not available. These costs can be estimated to evaluate alternative resources, which have a similar impact on system energy and capacity costs. Duke can connect to the main Duke Energy system at the Tuckasegee Substation in Jackson County. Duke can also acquire additional power from the Tennessee Valley Authority (TVA) thru an interconnection at the Santeetlah Substation in Graham County. Under normal conditions, either of these two suppliers is capable of providing the necessary replacement energy although at a higher system price. The average annual generation for the West Fork Project is approximately 95,474 MWh. This figure is based on a Thorpe Hydroelectric Station average of 84,805 MWh (1946-2002) and a Tuckasegee Hydroelectric Station average of 10,669 MWh (1951-2002). If the license were not granted, Duke would incur an additional expenditure. Using the average annual generation and the SCHEDULE PP-H (NC) 15-year fixed rates for a small hydro project with storage capability and transmission connection as the proxy alternative, the annual cost of replacement would be approximately $3,084,333. The Thorpe and Tuckasegee Hydroelectric facilities, in addition to Duke's other hydro facilities, produce the lowest cost energy available to Duke and its Nantahala Area customers. By keeping its costs low, Duke can in turn keep its electric rates low for its retail and wholesale customers. The increase in energy costs to customers if a license is not granted is computed as the Version 1.0 January, 1999 difference in the cost of replacement power and the cost of power produced by the Proiect. If the license is not granted, the subsequent increase in energy costs from purchased replacement power (estimated currently at $3,084,333 annually as described above) may result in higher electric rates for Duke's retail and wholesale customers. When water is available to run Duke's conventional hydro units in the Nantahala Area, this is the least cost option for Duke and its Nantahala area customers. However, Duke has a shortage of generation capacity relative to its current Nantahala Area demand during all times of the year. Because of this, Duke must acquire additional power from either the Tennessee Valley Authority (TVA) or the rest of Duke's system to satisfy the demand in the Nantahala Area. Loss of the Thorpe and Tuckasegee Hydroelectric facilities would therefore increase the generation shortfall and increase dependence on external power supplies. (c) DESCRIPTION OF LENGTH OF BYPASS REACH (IF ANY) AND MEASURES TO PROVIDE FLOW TO THE REACH IN LOW FLOW CONDITIONS. There are two separate bypassed reaches associated with the West Fork Hydroelectric Proiect; West Fork (Glenville) Bypassed Reach and Tuckaseaee Bypassed Reach. The Glenville Bypassed Reach is approximately 7.3 miles long from the Glenville Dam to the full pond water level of Tuckaseue Lake. The Tuckasegee Bypassed Reach is approximately 1.4 miles long from the Tuckasegee Dam to the Tuckasegee Powerhouse. Combined for the entire Proiect, the bypassed reaches total 8.7 miles. The current License for the West Fork Proiect has PM&E measures in place to protect water quality within the Project. Duke agreed to the following PM&E measures on May 5, 1999 under the current FERC license: The 1999 settlement agreement requires Duke to release a minimum instantaneous flow of 20 cfs or the stream flow entering Tuckasegee Lake from the West Fork of the Tuckasegee River, whichever is less, into the West Fork of the Tuckasegee River. Duke will also install and maintain a calibrated staff gage on the West Fork of the Tuckasegee River downstream of the Tuckasegee Development at an agreed-upon location. The 2003 TCST Settlement Agreement provides for minimum flow measures as described in 10(a) of this application and found in Section 4.0 of the attached Settlement Agreement. These flows are summarized as follows: ¦ Minimum Flows in the Tuckasegee River Main Stem - Assuming that the new licenses for the West Fork Proiect and the associated East Fork Version 1.0 January, 1999 Project will include the following minimum flow requirements for the main stem of the Tuckasegee River: 1. 30 cfs combined minimum flow from December 1 through June 30 (assuming inflow into Tuckasegee Lake is greater than or equal to 20 cfs) and provided by the same means as the existing provision: a. Continue existing minimum flow at Tuckasegee Dam (20 cfs or inflow, whichever is less). b. Continue existing minimum flow at the East Fork Project's Cedar Cliff Powerhouse (10 cfs from a valve at the hydro station during non- generation hours only). When Cedar Cliff Powerhouse is generating, the minimum flow valve is turned off. 2. 55 cfs combined minimum flow from July 1 through November 30 (assuming inflow into Tuckasegee Lake is greater than or equal to 20 cfs) and provided by. a. Continue existing minimum flow at Tuckasegee Dam (20 cfs or inflow, whichever is less). b. Increase the minimum flow valve capacity at the East Fork Proiect's Cedar Cliff Powerhouse and provide 35 cfs minimum flow during non-generation hours only. When Cedar Cliff Powerhouse is generating, the minimum flow valve is turned off. The non-generation minimum flow requirements of 10 cfs from December 1 through June 30 and 35 cfs for the remainder of the year will be met by construction of a either a new turbine and powerhouse adjacent to the existing Cedar Cliff Powerhouse or with a modification to the existing 10 cfs valve. The new minimum flow facility will be able to pass continuously the anticipated requirement of 10 cfs of water for 7 months (December through June) of the year and 35 cfs of water for the remaining 5 months (July through November). ¦ The following TCST Protection, Mitigation and Enhancement measures also are associated with the relicensing of the West Fork Project and are important to an overall Settlement Agreement (see Section 6.0 of the TCST Settlement Agreement): 1. Duke will provide a one-time funding contribution, in-kind services or a combination of the two, at Duke's option, not to exceed a total cost of $40,000* to support a proiect by the USFWS, NCWRC and the USFS to restore the native strain of brook trout to a selected stream in the vicinity of the Tennessee Creek Hydro Station. 2. Within 1 to 15 vears following its acceptance of the new licenses for the Duke Hydro Projects, Duke will provide Cherokee, Clay, Jackson, Macon and Swain counties $40,000* each to implement the Duke- selected initiatives from a prioritized list identified by each county's Soil and Water Conservation District board as of July 1, 2005 that (1) make physical improvements that protect soil or water resources, (2) educate landowners or school children on proper soil or water Version 1.0 January, 1999 conservation practices, and/or (3) improve soil or water conservation programs that affect lands that drain to any of the Duke Hydro Projects or the river sections between the Duke Hydro Projects and reservoirs belonging to the TVA. 3. Within 1 to 15 years following its acceptance of the new licenses for the Duke Hydro Projects, Duke will provide a total of $200,000* for the purpose of supporting Duke-selected riparian habitat enhancement projects on lands that drain to any of the Duke Hydro Protects or the river sections between the Duke Hydro Projects and reservoirs belonging to the TVA where such proiects (1) protect or enhance fish or wildlife habitat directly, or (2) educate landowners or school children about the importance of healthy riparian areas for fish and wildlife habitat. 4. By January 1, 2006 or within one vear following its acceptance of the new licenses for the East Fork Project, West Fork Project and the Nantahala Project (FERC Project No. 2692), Duke will purchase and convey the approximately 150-ac tract of land identified in Attachment J of the TCST Settlement Agreement to the USFS. o Duke worked with the USFWS, NCDWR, NCDWQ, NCWRC, the North Carolina State Historic Preservation Officer (NCSHPO) and the Eastern Band of Cherokee Indians (EBCI) and completed the necessary environmental, cultural resource, and engineering assessments regarding removal of Dillsboro Dam and potentially the Dillsboro Powerhouse (see Attachment F of the TCST Settlement Agreement for a summary). These assessments evaluated the potential effects of dam removal on aquatic species; determined the extent of any cultural resources impacts, and considered the options for removing the powerhouse (i.e. removal, closure, or leave as-is). (Note - the final assessment report is included in the Dillsboro Project License Surrender Application that was filed with the FERC on June 1, 2004 as noted below). The FERC issued a License Surrender Order for Dillsboro Dam on July 19, 2007. This Order required the Dillsboro Dam and Powerhouse to be removed by July 19, 2010. After the License Surrender Order was issued by the FERC, Duke received a 401 Water Oualitv Certification from NCDWO which requires the removal of 70,000 vd3 of sediment prior to the demolition and removal of the dam and powerhouse. Duke has also had many legal challenges associated with the Dillsboro Dam Removal. At the time of this application Duke has successfully removed 34,336 vd3 of sediment and is planning to remove the remaining available sediment by December 31, 2009 with Dam Removal scheduled to beOn on 1/4/2010, assuming all appropriate approvals have been received. * Amount increases annually subject to escalation clause in the Tuckasegee Cooperative Stakeholder Team Settlement Agreement. Version 1.0 January, 1999 (d) MEASURES PLANNED OR TAKEN TO MAINTAIN DOWNSTREAM WATER QUALITY SUCH AS ADEQUATE DISSOLVED OXYGEN. The two-year historical monthly data indicates that the area downstream of the Proiect dams consistently had oxygen concentrations greater than the State water quality minimum in 2001 and 2002. Even though oxygen concentrations in the deeper depths of the upstream storage reservoirs decreased throughout the stratified period, the DO concentrations in deep water released from the reservoirs were at least 3 mg/1 greater than the minimum standard for North Carolina trout waters. Based upon dissolved oxygen data collected in 2001 and the NCDENR-DWQ historical data, oxygen concentrations consistently exceeded the minimum concentrations established by State water quality standards for the Tuckasegee River. For a full data set, please refer to Exhibit E, Section E2.9 of the West Fork Proiect License Application. 11. WHAT IS THE SIZE OF THE WATERSHED? The drainage area associated with the Proiect is 91.4 square miles combining the two developments. The Thorpe Development has an incremental drainage area of 36.7 square miles and the Tuckasegee Development has an incremental drainage area of 54.7 square miles. WHAT IS THE FULL-POND SURFACE AREA? The Proiect includes approximately 1,470 acres of reservoir surface area at full pond. This figure is derived from the total surface acres associated with the two Proiect reservoirs. The Thorpe Development has a reservoir surface area of approximately 1,462 acres at full pond at a surface elevation of approximately 3,491.7 ft msl. The Tuckasegee Development has a reservoir surface area of approximately 7.9 acres at full pond at a surface elevation of approximately 2,278.75 ft msl. 12. YOU ARE REQUIRED TO CONTACT THE US FISH AND WILDLIFE SERVICE AND/OR NATIONAL MARINE FISHERIES SERVICE REGARDING THE PRESENCE OF ANY FEDERALLY LISTED OR PROPOSED FOR LISTING ENDANGERED OR THREATENED SPECIES OR CRITICAL HABITAT IN THE PERMIT AREA THAT MAY BE AFFECTED BY THE PROPOSED PROJECT. DATE CONTACTED: Version 1.0 January, 1999 Letter from Brian Cole (USFWS-Asheville) on March 8, 2000 in association with Proiect Section 7 consultation and subsequent letters/discussions with the USFWS during the relicensing process. 13. YOU ARE REQUIRED TO CONTACT THE STATE HISTORIC PRESERVATION OFFICER (SHPO) REGARDING THE PRESENCE OF HISTORIC PROPERTIES IN THE PERMIT AREA WHICH MAY BE AFFECTED BY THE PROPOSED PROJECT. DATE CONTACTED: Letter from Renee Gledhill-Earley (NC Dept. of Cultural Resources) on December 16, 1999 in association with cultural resource consultation and subsequent letters/discussions with the NCDCR during the relicensing process. 14. DOES THE PROJECT INVOLVE AN EXPENDITURE OF PUBLIC FUNDS OR THE USE OF PUBLIC (STATE) LAND? YES I NO © (IF NO, GO TO 15) (a) IF YES, DOES THE PROJECT REQUIRE PREPARATION OF AN ENVIRONMENTAL DOCUMENT PURSUANT TO THE REQUIREMENTS OF THE NORTH CAROLINA ENVIRONMENTAL POLICY ACT? YES NO (b) IF YES, HAS THE DOCUMENT BEEN REVIEWED THROUGH THE NORTH CAROLINA DEPARTMENT OF ADMINISTRATION STATE CLEARINGHOUSE YES ? NO IF ANSWER 17b IS YES, THEN SUBMIT APPROPRIATE DOCUMENTATION FROM THE STATE CLEARINGHOUSE WITH THE NORTH CAROLINA ENVIRONMENTAL POLICY ACT. QUESTIONS REGARDING THE STATE CLEARINGHOUSE REVIEW PROCESS SHOULD BE DIRECTED TO MS. CHRYS BAGGETT, DIRECTOR STATE CLEARINGHOUSE, NORTH CAROLINA DEPARTMENT OF ADMINISTRATION, 116 WEST JONES STREET, RALEIGH, NORTH CAROLINA 27603-8003, TELEPHONE (919) 733-6369. 15. THE FOLLOWING ITEMS SHOULD BE INCLUDED WITH THIS APPLICATION IF PROPOSED ACTIVITY INVOLVES THE DISCHARGE OF EXCAVATED OF FILL MATERIAL INTO WETLANDS: N/A Version 1.0 January, 1999 (a) WETLAND DELINEATION MAP SHOWING ALL WETLANDS, STREAMS, LAKES, AND PONDS ON THE PROPERTY (FOR NATIONWIDE PERMIT NUMBERS 14, 18, 21,26, 29, AND 38). ALL STREAM (INTERMITTENT AND PERMANENT) ON THE PROPERTY MUST BE SHOWN ON THE MAP. MAP SCALES SHOULD BE 1 INCH EQUALS 50 FEET OF 1 INCH EQUALS 100 FEET OF THEIR EQUIVALENT. (b) IF AVAILABLE, REPRESENTATIVE PHOTOGRAPH OF WETLANDS TO BE IMPACTED BY PROJECT. (c) IF DELINEATION WAS PERFORMED BY A CONSULTANT, INCLUDE ALL DATA SHEETS RELEVANT TO THE PLACEMENT OF THE DELINEATION LINE. (d) ATTACH A COPY OF THE STORMWATER MANAGEMENT PLAN IF REQUIRED. (e) WHAT IS LAND USE OF SURROUNDING PROPERTY? (f) IF APPLICABLE, WHAT IS PROPOSED METHOD OF SEWAGE DISPOSAL? 16. CERTIFICATION FEE (a) IF THE IMPACT IS LESS THAN 1 ACRE OF WETLAND OR WATER AND LESS THAN 150 FEET OF STREAM, PLEASE ENCLOSE A CHECK FOR $240.00 MADE OUT TO THE NORTH CAROLINA DIVISION OF WATER QUALITY. (b) IF THE IMPACT EXCEEDS EITHER OR BOTH OF THE LEVELS IN (a), PLEASE ENCLOSE A CHECK FOR $570.00 MADE OUT TO THE NORTH CAROLINA DIVISION OF WATER QUALITY. 17. PUBLIC NOTICE IS REQUIRED FOR ALL FERC PROJECTS. PLEASE NOTE THAT THE APPLICANT IS REQUIRED TO REIMBURSE THE Version 1.0 January, 1999 DIVISION OF WATER QUALITY FOR THE COSTS ASSOCIATED WITH THE PLACEMENT OF THE PUBLIC NOTICE. REFERENCE 15A NCAC 2H .0503 (f). SIGNED AND DATED AGENT AUTHORIZATION LETTER, IF APPLICABLE. NOTE: WETLANDS OR WATERS OF THE US MAY NOT BE IMPACTED PRIOR TO: ISSUANCE OF A SECTION 404 CORPS OF ENGINEERS PERMIT, 2. EITHER THE ISSUANCE OR WAIVER OF A 401 DIVISION OF WATER QUALITY CERTIFICATION, AND 3. (IN THE TWENTY COASTAL COUNTIES ONLY), A LETTER FROM THE NORTH CAROLINA DIVISION OF COASTAL MANAGEMENT STATING THE PROPOSED ACTIVITY IS CONSISTENT WITH THE NORTH CAROLINA COASTAL MANAGEMENT PROGRAM, Version 1.0 January, 1999 OWNER'S/AGENT'S SIGNATURE Steven D. Jester, Vice President Hydro Strategy, Licensing and Lake Services Duke Energy Carolinas, LLC DATE (AGENT'S SIGNATURE VALID ONLY IF AUTHORIZATION LETTER FROM THE OWNER IS PROVIDED). 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