20031110 Ver 6_Other Agency Comments_20100528

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United States Department of the Interior
FISH AND WILDLIFE SERVICE
Asheville Field Office
160 Zillicoa Street
Asheville, North Carolina 28801
May 28, 2010
Mr. John Dorney
North Carolina Division of Water Quality
2321 Crabtree Boulevard, Suite 250
Raleigh, NC 27604
Subject: Public Notice of Application for a Section 401 Water Quality Certificate, Nantahala
Hydroelectric Project, FERC No. 2692, DWQ #2003-0110, Macon and Clay Counties,
North Carolina
Dear Mr. Dorney:
This letter is in response to the May 4, 2010 Public Notice, DWQ #2003-0110. On June 16,
2009, Duke Energy Carolinas, LLC (Duke) filed an Application for 401 Water Quality
Certificate to the North Carolina Division of Water Quality (NCDWQ) for the Nantahala
Hydroelectric Project.
On February 20, 2004, Duke filed an application for a new major license for the existing 42-MW
Nantahala Project (FERC No. 2692-032) located on the Nantahala River and its tributaries in
Macon and Clay counties, North Carolina. On January 8, 2004, Duke also filed the Nantahala
Cooperative Stakeholder Team Settlement Agreement describing Duke's proposed
environmental measures for the Nantahala Project. The Settlement Agreement was signed by
Duke and 26 other stakeholder parties, including the U.S. Fish and Wildlife Service.
RECOMMENDATIONS
We recommend these measures to compensate for the ongoing impacts of this project and its
operation on the natural resources of the area. These measures should include mitigation for
ongoing project impacts and project-induced effects on fish and wildlife populations and their
habitats.
Reservoir Level Management. We recommend reservoir levels be managed according to an
agreed "Normal Operating Range" - the band of reservoir levels within which the Licensee
normally attempts to maintain a given reservoir that it operates on a given day. Each reservoir
has its own specific Normal Operating Range, and that range is bounded by a Normal Maximum
Elevation and a Normal Minimum Elevation. If inflows and outflows to the reservoir are kept
within some reasonable tolerance of the average or expected amounts, project equipment is
operating properly and no protocols for abnormal conditions have been implemented, reservoir
level excursions outside of the Normal Operating Range should not occur. There are special
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USFWS comments Nantahala Hydroelectric Project
drought storage considerations included in the Low Inflow Protocol. The Licensee shall use the
existing float-operated gage or a suitable replacement gage to monitor the actual level of
Nantahala Lake. The Licensee shall calibrate the reservoir stage level gage within 60 days
following its acceptance of this license and at least once every two years thereafter. The
Licensee shall maintain the elevation of Nantahala Lake between the Normal Minimum and
Normal Maximum Elevations ("Normal Operating Range") indicated in the table below, except
when the Licensee is permitted to vary from the Normal Operating Range as established below.
All elevations are relative to the top of the dam (including the flood gates and fuse plugs), with
100.0 ft = Normal Full Pond Elevation (approximately 3012.2 ft USGS datum). Elevations for
other days of the month are determined by linear interpolation.
Month Normal
Minimum
Elevation ft Normal Target
Elevation (ft) Normal
Maximum
Elevation ft
January 73 78 83
February 76 83 88
March 78 88 93
Aril 85 93 98
May 93 97 99.5
June 93 97 99.5
Jul 93 97 99.5
August 91 96 99.5
September 88 93 98
October 83 88 93
November 78 83 88
December 73 78 83
The above are the Normal Maximum, Normal Minimum and Normal Target Elevations for the
first day of each month. The Normal Maximum, Normal Minimum and Normal Target
Elevations for any other day of the month can be determined by linear interpolation. The
reservoir as a multi-species recreational fishery, recognizing the limitations on angler success
that result from the extremely low productivity of the reservoir. Species of interest include black
bass (primarily smallmouth bass, but some largemouth bass), walleye, yellow perch, sunfish
(including rock bass), and rainbow trout. The diversity of sport fish species in the reservoir
exacerbates the effect of oligotrophic conditions and results in very low catch rates for most
species. Since no fish species are routinely stocked into Nantahala Reservoir, these reservoir
levels are important to allow natural recruitment of sport fishes and the prey base.
Stream Regulation and Bypass Flow Regimes -Minimum Flow for Bypassed Reaches.
Instream flow studies incorporated a global approach for evaluating the various flow issues for
the Nantahala project and collected the necessary information to make sound, reasonable stream
1 The Low Inflow Protocol is part of the Nantahala Cooperative Stakeholders Settlement Agreement, Attachment B
- Low Inflow Protocol (LIP) for the Nantahala Project.
USFWS comments Nantahala Hydroelectric Project
flow decisions that balanced the various competing user interests. The evaluation of instream
flows also drew upon the results of other studies that addressed physical parameters, such as
temperature and flow time of travel, and biological studies that described the aquatic biological
communities. We identified two areas for study: bypassed reaches and mainstem reaches
subject to peaking operations. The Instream Flow Study Plan outlined the various proposed
studies within each category, on a site-by-site basis. Generally, the approach for both bypass and
peaking reaches consisted of describing or quantifying the aquatic biota associated with that site,
conducting habitat surveys, and modeling habitat responses to changes in flow. Historical
resource data and re-analyses of historical stream flow studies were also used where these data
were available. We utilized a guild approach or generalized habitat criteria in addition to single
or multiple target species approach, for evaluating habitat suitability. The IFIM (aka PHABSIM)
model determines the amount of Weighted Usable Area (or habitat available) for a given flow on
a per species/life stage basis. Thirty six species/life stage combinations were modeled at 1 cfs
flow increments which created an extremely large amount of WUA data. In order to effectively
deal with this large amount of data, an Interactive Spreadsheet was developed to quickly provide
WUA results for any species/life stage at any flow. An interactive spreadsheet has the built-in
availability to look at WUA results three different ways. Comparison to existing conditions,
comparison to maximum possible habitat conditions, and comparison to unregulated flow (i.e.,
pre-project) conditions. The interactive spreadsheet was a very useful tool during Instream Flow
Technical Leadership Team (TLT) meetings. Habitat results for species, life stage, and flow
were compared for each modeled river segment. The resulting flow recommendations are not
necessarily tied to any specific species or life stage. Rather, the interactive spreadsheet was used
in an iterative process to develop flow recommendations that would provide habitat for the
majority of species/life stages (including any critical species or life stage). It is important for
those using the IFIM report to recognize that the result of an instream flow study was not a set
value but a range of values to be used as a guidance tool, in concert with other tools and other
instream flow issues, for determining the appropriate stream flow or set of stream flows. Actual
instream flows were negotiated items in association with the settlement agreement discussions.
It should be noted that the goal was to apply 80% of the natural flows for the target species and
be negotiated on several other factors. In order to include seasonality effects, flow
recommendations were made on a monthly basis. In some cases, the flow recommendations
were modified slightly to simplify compliance. For the Nantahala River above Dicks Creek, the
recommendation was to not put additional flow (other than leakage/seepage flow) in this section
of bypass channel because the amount of habitat that would be gained was very small compared
to the bypass segments below Dicks Creek, and there were concerns about thermal degradation
of the exisiting bypassed habitats. Therefore, the decision was made to recommend flows in the
segments where the greatest habitat gains would occur below Dicks Creek. A table of instream
flow recommendations (by month and river segment) based on the interactive spreadsheet are
provided below. These flow recommendations recognize seasonal inputs from tributaries.
Recommended Additional Stream Flow cfs
Nantahala
Nantahala Nantahala River below Nantahala
River above River below Whiteoak Whiteoak River
Month Dicks Creek Dicks Creek Creek Bypass Creek Tailwater
January leakage 8 8 16 16
February Leakage 8 8 16 16
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Nantahala Hydroelectric Project
March Leakage 8 8 16 16
Aril Leakage 8 8 16 16
May Leakage 8 8 16 16
June Leakage 16 8 24 24
Jul Leakage 16 8 24 24
August Leakage 16 8 24 24
September O leaka e 16 8 24 24
October O Leaka e 16 8 24 24
November Leakage 8 8 16 16
December Leakage 8 8 16 16
In the Nantahala Cooperative Stakeholders Team Settlement Agreement, we agreed to the
following minimum flows in bypassed reaches, and recommend the incorporation of the
following proposed license article into any new license that the Commission issues for the
Project:
The Licensee shall provide the following minimum flows in bypassed reaches:
(1) From the Whiteoak Creek Penstock: a total of 8 cfs into Dicks Creek from November
1 through May 31 and, after installation of the second valve required by subparagraph
(C)(2) of this Article, a total of 16 cfs into Dicks Creek from June 1 through October 31;
and
(2) From the Whiteoak Creek Diversion Dam after installation of the minimum flow
device required by subparagraph (C)(3) of this Article, 8 cfs or the inflow into Whiteoak
Creek Pond, whichever is less, into Whiteoak Creek at the base of the dam from January
1 through December 31.
The Licensee shall continue to maintain Dicks Creek and Diamond Valley as free flowing with
outflow from the dams being equal to inflow into the ponds.
The Licensee shall within six months following its acceptance of this license, consult with the
USFWS and other natural resource agencies (NCWRC, NCDWR, NCDWQ, and the USFS) and
file a plan ("Minimum Flow Plan") for Commission approval to modify project facilities to:
(1) Maintain the existing minimum flow valve capable of releasing up to 8 cfs, as
calibrated and metered at the valve, from the Whiteoak Creek Penstock into Dicks Creek;
(2) Install an additional minimum flow valve capable of releasing up to 8 cfs, as
calibrated and metered at the valve, from the Whiteoak Creek Penstock into Dicks Creek;
(3) Install a minimum flow device capable of releasing up to eight cfs, as calibrated and
metered at the device, from the Whiteoak Creek Diversion Dam into Whiteoak Creek.
Within one year following FERC approval of such plan, the Licensee shall complete the
modifications of project facilities identified in the plan and begin providing the minimum flows
as specified in this Article.
The Licensee may temporarily vary from the minimum flows identified in Paragraph (A) if
required by conditions beyond the Licensee's control or by operating emergencies or
maintenance needs as defined in Attachments B and C. Such temporary variances shall be in
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Nantahala Hydroelectric Project
accordance with the Low Inflow Protocol or the Hydro Project Maintenance & Emergency
Protocol, incorporated into this license as Attachments B and C, respectively.
The Licensee will calibrate the meters used to monitor minimum flows within 60 days following
installation of the additional minimum flow valve and device identified in this Article and at
least once every two years thereafter.
Riparian Enhancement. Duke Power should establish the Riparian Habitat Enhancement Fund
as agreed in the Settlement Agreement to address unavoidable ongoing and cumulative impacts
of the operation of the DPNA Hydro Projects on riparian habitats. The fund shall provide for
conservation activities to offset project-related impacts to land and water resources in the
Nantahala River valley on lands in the vicinity of the Project. A variety of conservation interests
were identified during discussions with the Nantahala Cooperative Stakeholder Team (NCST)
and the Tuckasegee Cooperative Stakeholder Team (TCST); many of which related to riparian
habitat protection and restoration. The NCST and TCST Settlement Agreements both include a
Paragraph 6.8 that establishes the following specific requirements relative to this Riparian
Habitat Enhancement Fund:
"68 DPNA agrees that within I to 15 years following its acceptance of the New
Licenses for the DPNA Hydro Projects, DPNA will provide a total of $200, 000
for the purpose of supporting DPNA-selected riparian habitat enhancement
projects on lands that drain to any of the DPNA Hydro Projects or the river
sections between the DPNA Hydro Projects and reservoirs belonging to the
Tennessee Valley Authority (TVA) where such projects (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. DPNA will
utilize the process outlined in Attachment I (i. e. this process document) in
selecting the projects to be funded. "
Other parts of the settlement agreement may also address project-related impacts for the DPNA
Hydro Projects through similar actions in the riparian areas.
Our specific goals for the Nantahala Project area include:
• Restore and protect riparian areas, aquatic habitats, and improve water quality
• Recover imperiled species
• Restore extirpated plant and animal populations
• Restore and protect riparian corridors and habitats
• Provide outdoor recreational opportunities
• Control of invasive exotic species
• Educate decision makers and citizens about the importance of the unique river
resources.
Ongoing land and water management activities in the DPNA service territory over the last 10
years provide an indication of continuing conservation needs. These activities, some of which
may be related to any ongoing impacts of the DPNA Hydro Projects, include:
USFWS comments Nantahala Hydroelectric Project
• Riparian habitat restoration
• Floodplain protection
• Environmental education
• Exotic species control (e.g., terrestrial and aquatic plants)
• Restoration effectiveness monitoring
• Land/forest management
• Land protection/conservation
• Wildlife habitat enhancement
The fund should emphasize activities that address project-related impacts, but recognize the
potential benefits of protection and restoration of riparian areas that may be impaired by other
sources (e.g., invasive exotic species). We proposed that the fund be locally administered by an
Advisory Board composed of persons most familiar with conservation priorities of the area. The
following agencies and organizations will provide one representative each to the Advisory
Board. Each representative should be very familiar with riparian ecology in the geographic area.
• North Carolina Wildlife Resources Commission
• North Carolina Division of Water Resources
• United States Fish & Wildlife Service
• United States Forest Service
• Land Trust for the Little Tennessee
• Little Tennessee Nonpoint Source Team
The Fund should be use to protect or enhance fish or wildlife habitat directly, or educate
landowners or school children about the importance of healthy riparian areas for fish and wildlife
habitat. Additional consideration should focus the available funds to:
• Have a long term impact
• Provide direct benefits to riparian resources
• Show measurable results
• Demonstrate co-funding (leveraging) from other funds, volunteer, or in-kind
resources, thus indicating broad support for the proposed project
• Implement creative approaches
• Have a demonstration element or adapt proven models
• Coordinate and cooperate with existing efforts (i.e. are part of a larger scheme of
riparian protection and restoration, or connect existing protected riparian habitat)
• Increase awareness of how varied activities affect the overall river basin
Low Inflow Protocol. Attachment B - Low Inflow Protocol (LIP) for the Nantahala
Project Introduction This Low Inflow Protocol (LIP) provides trigger points and procedures for
how the Nantahala Project will be operated by the Licensee during periods of low inflow (i.e.
periods when there is not enough water flowing into Nantahala Lake to meet the normal needs
for power generation, recreation flows, minimum flows, any on-reservoir water withdrawals and
lake level maintenance). The protocol was developed on the basis that all parties with interests in
water quantity will share the impact of low inflow.
We defined "Threshold Minimum Flows" - those minimum flow release amounts from the
project works that may be necessary to sustain aquatic communities consistent with the resource
USFWS comments Nantahala Hydroelectric Project
management goals and objectives for the affected stream reaches. Since the normal minimum
flow releases are for water quality and / or aquatic species habitat enhancements, the Threshold
Minimum Flows are related to and lower than the normal minimum flow releases required by the
FERC license. For the purposes of this protocol the Threshold Minimum Flows are as follows:
Whiteoak Creek Bypassed Reach - 2 cfs or inflow into Whiteoak Creek Pond, whichever
is less, released from Whiteoak Creek Diversion Dam into the Whiteoak Creek Bypassed
Reach.
Nantahala River Bypassed Reach - The following combined flowrates released from the
two Spill Valves on the Whiteoak Creek Penstock:
1) From November 1 through May 31 - 2 cfs
2) From June 1 through October 31 - 5 cfs.
Priority of Reducing Minimum Flows - when making reductions in minimum flows in the
bypassed reaches, the following priority will be used, reducing each release point to its
Threshold Minimum Flow value before moving to the next release point:
a. Reduce the spill at Whiteoak Creek Diversion Dam
b. Reduce the flowrates from the Spill Valves on the Whiteoak Creek Penstock
Project Maintenance and Emergency Protocol. Under some emergency and equipment failure
and maintenance situations, certain license conditions may be impractical to meet or may need to
be suspended or modified to avoid taking unnecessary risks. Therefore, we worked with Duke
Power to develop a protoco12 to define the most likely situations of this type for the Nantahala
Project, identify the potentially impacted license conditions and outline the general approach that
the Licensee will take to mitigate the impacts to license conditions and to communicate with the
resource agencies and affected parties. Due to the potential variability of these abnormal
situations, this Protocol 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
implemented. The licensee should emphasize maintenance of adequate flows and water
conditions (especially temperature and dissolved oxygen) during emergency situations. The
protocol describes notification and consultation with the natural resource agencies as soon as
possible following a deviation from license conditions for voltage or capacity emergency
reasons. The Licensee should consider options suggested by the agencies that could lessen the
impact of the emergency on the environmental needs relative to the project.
Stream Gage Station. The Licensee shall reimburse the United States Geological Survey
(USGS) on an annual basis for its cost to maintain USGS Gage # 03505500 located downstream
of the Nantahala Powerhouse near River Mile 11 on the Nantahala River (A suitable replacement
gage was installed in this vicinity by USGS in 2004) to allow for monitoring of compliance and
to enhance public access to information concerning river flow conditions.
z This protocol is part of the Nantahala Cooperative Stakeholders Settlement Agreement, Attachment C - Hydro
Project Maintenance & Emergency Protocol (HPMEP) for the Nantahala Project.
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Nantahala Hydroelectric Project
Monitor Effects of Recreation Releases. During the first two years of recreation flow releases
in the Nantahala River Bypassed Reach, the USFS, NCWRC, NCDWR and the USFWS will
monitor the existing fishery in the Nantahala River Bypassed Reach and identify any significant
adverse impacts to fisheries caused by these recreation flow releases. In October after the first
and second seasons of releases, DPNA will convene a meeting with AW, CCC, NGA, TU,
USFS, NCWRC, USFWS, and NCDWR to discuss any proposed changes that are based on the
monitoring results. Notwithstanding Paragraph 17.3, if DPNA, AW, CCC, NGA, TU, USFS,
NCWRC, NCDWR and the USFWS all agree in writing to permanent schedule changes, the
changes will take effect as agreed by the aforementioned Parties unless FERC approval is
required, otherwise DPNA shall develop and submit to FERC a request in whatever form is
necessary to effect such change and the change will take effect according to the FERC approval.
No Party shall request a modification of the recreation flow release schedule that would change
the total number of hours per month (for generation releases) or per calendar year (for Tainter
gate releases) at the approximate target flows.
Trash Management. The Licensee should remove man-made trash from the intake racks and
properly dispose of the trash in accordance with the project's proposed trash removal plan.
Natural woody debris should be passed through the system for maintenance of basic nutrient
cycles, and as a structural component of fish and wildlife habitat.
Implement shoreline management plan. The Licensee should implement the shoreline
management program for the Project that will incorporate permitting guidelines pertaining to the
use of the Project property in accordance with the standard land use articles and guidelines that
address among other activities pertaining to the use of islands, water pumps and water removal,
commercial operations, and prohibited acts or activities. The Licensee shall implement its
Shoreline Management Program including the Shoreline Classification Maps, Lake Use
Restrictions, Vegetation Management Requirements and the Shoreline Management Guidelines
as filed with its license application to aid the Licensee in its lake use permitting program.
We recommend coordinated vegetation management and maintenance of vegetated terrestrial
and riparian areas to protect and enhance the reservoirs' ecological values. Riparian and
terrestrial areas primarily filter runoff and can help reduce shoreline erosion when vegetation
extends to and/or below the shoreline, thus helping to reduce sedimentation and protect water
quality. They also provide wildlife corridors, foraging and nesting habitat for a variety of
terrestrial wildlife, waterfowl, and migratory birds. These reservoir riparian areas are a valuable
source of woody debris and leaves. Protection of riparian and nearshore areas for wildlife
movement is considered important by state and federal wildlife resource agencies concerned with
the potential for development adjoining these environmentally important areas. Therefore, we
recommend that the licensee implement the guidelines developed by the resource agencies and
stakeholders to protect riparian wildlife corridors on shoreline areas within the project boundary.
We recommend the licensee take actions to replant or allow the re-establishment of native
vegetation in areas within the project boundary where it has been removed by adjoining property
owners. A vegetated riparian area should be maintained (and restored wherever currently
degraded) at the Project. Appropriate public access areas should be developed and maintained
consistent with the Tuckasegee Settlement Agreement and Nantahala Stakeholders Settlement
Agreements.
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Nantahala Hydroelectric Project
Sediment Management. As described in the Nantahala Cooperative Stakeholder's Team
settlement agreement, Duke should develop a long-term Sediment Management Plan to describe
its strategy and implementation of a reservoir-wide sediment monitoring and management.
Bedload transport is stopped and peak flows are altered at Nantahala Dam. The change in peak
flow frequency, magnitude and duration results in a reduced capacity to carry sediment. The
flushing effect of the scheduled spill events may result in a change in the tributary sediment in
the channel that should specifically be monitored.
We recommend that the following proposed language be incorporated into the water quality
certificate for the Project:
The Licensee shall operate the project so as to minimize the need to draw the reservoirs
down to mechanically remove sediment. When sediment must be mechanically
removed, or the reservoirs must be drawn down, the Licensee shall consult and reach
agreement with the NCWRC, USFWS, NCDWR, USACOE (United States Army Corps
of Engineers) and the NCDWQ concerning any reasonable and necessary measures to
minimize the impact of the drawdown and sediment removal on the affected
environment. This consultation and measures identification shall be completed prior to
operating in any way that would be expected to allow sediment from upstream of the
Nantahala Dam or Whiteoak Creek Diversion Dam to enter the downstream reaches.
Sediment and streamflow from the Diamond Valley Dam and Dicks Creek Dam shall
be unimpeded into the downstream reaches3.
Endangered Species consultation has been completed. We have completed our consultation
with FERC for the Project effects on endangered species and designated Critical habitats. The
consultation concluded that the project would not likely adversely affect the threatened plant,
Virginia spiraea (Spiraea virginiana), since Duke would implement a Species Protection Plan for
the plan that occurs at the bypassed reaches of Whiteoak Creek and Nantahala River.
Fish Passage. The USFWS has reserved authority under §18 of the Federal Power Act to
prescribe fishways at the Project. We recommend the water quality certificate include similar
provisions to incorporate any future Fishway prescriptions, in order to maintain or restore the
biological integrity of the Project waters.
Fishways help mitigate the impacts of hydropower projects by providing safe, timely, and
effective fish passage around a project for spawning, rearing, feeding, growth to maturity,
dispersion, migration, and seasonal use of habitat. Fishway prescriptions also help to achieve
resource goals and objectives. These goals and objectives may be identified in national,
regional, or watershed-level planning documents or may be established by the Services on a site-
specific basis. Examples of resource goals and objectives include: (1) the enhancement,
protection, or restoration of existing fish populations within a river system; (2) the reunification
of fragmented fish populations; and (3) the reintroduction or reestablishment of fish runs. In
3 This last sentence is proposed differently from that included in the NCST settlement agreement,
since its original form was not practical, because these small impoundments are no longer used
to divert water, and are already essentially full of sediments.
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Nantahala Hydroelectric Project
addition, fishways may be necessary to protect tribal resources for the exercise of American
Indian rights.
CONCLUSION
We appreciate the opportunity to provide these comments and information about water quality at
the Nantahala Hydroelectric Project. If you have questions, please contact me at 828/258-3939,
Ext. 227.
Sincerely,
- original signed -
Mark A. Cantrell
Fish & Wildlife Biologist
cc via email: Duke Energy Carolinas, LLC, Lineberger, Johnson
NCWRC, Goudreau
NCDWR, Mead
NCDWQ, Barnett
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