HomeMy WebLinkAbout20080915 Ver 1_CRA Update 2-2015 SC401 Issued_20150213Burdette, Jennifer a
From: Oakley, Mark <Mark.Oakley @duke - energy.com>
Sent: Friday, February 13, 2015 3:55 PM
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Wayne Chapman; Wilce Martin; Will Hinson; Wilmer Metlon; Barry Gullet; Barry
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Medlin; Patty Hall; Paul mitchell; Paul Mrzlak; Rani Holland; Ron George; Shuford
Wise; Steve Peeler; Todd Clark; Tom Couch; Jabon, Jennifer Robson
Subject: Catawba - Wateree Comprehensive Relicensing Agreement Newsletter February 2015
Attachments: C -W CRA Parties Update February 2015.docx
This e -mail is being sent to Catawba - Wateree Comprehensive Relicensing Agreement (CRA) Parties, Catawba - Wateree
Drought Management Group members, Catawba - Wateree Water Management Group members, and other interested
parties. Please pardon any duplicate deliveries.
The Catawba - Wateree Final Agreement Committee (FAC) is providing the attached newsletter to keep all Catawba -
Wateree CRA Parties up -to -date with relicensing- related activities in the Catawba - Wateree River Basin.
Spoiler Alert— Big news in this edition. Enjoy.
YOU SCtff C'-E FOR C' P E .E.NSIVE . _F_l,U,' NglS N(C� A(_�R_V_ ". FNT N_VWq STN(-'F, 2006
Long-Awaited 1 sto
Complete'.
Will The Dog Finally Catch The
'truck?
Articles in this issue
One for the Money — What's in DHEC's WQC? ..................... ............................... ....page 2
Two for the Show — What do we expect from the FERC and when " ................ ...........................page
Three to Get Ready — What can we do to get ready before the New License is issued?..,,,,,.,,,,. . .... page 3
Now Here We Go — What to expect once the New License is issued ....... ...........................page 4
The Catawba - Wateree Final Agreement Committee (FAC) provides this newsletter to keep all Catawba - Wateree
Comprehensive Relicensing Agreement (CRA) Parties up -to -date with relicensing- related activities in the Catawba - Wateree
River Basin.
1
What's in the South Carolina Water Quality Certification?
On July 11, 2014, DHEC, American Rivers (AR), the South Carolina Coastal Conservation League
( SCCCL) and Duke Energy signed a settlement agreement (WQC agreement) resolving the impasse
regarding the South Carolina water quality certification (WQC) for the Project. The WQC agreement
clarifies (but does not change) a few sections of the CRA that are important to AR and the SCCCL in a
manner agreeable to DHEC, providing additional details on how Duke Energy will meet its commitment to
manage flows to enhance fish spawning habitat in the river downstream of Wateree Hydro Station. The
agreement also outlines a series of steps to expeditiously attain a WQC for the Project. After signing the
WQC agreement, Duke Energy asked the SC Supreme Court to stay any further consideration of its
WQC appeal request and asked the FERC to stay further consideration of its WQC waiver petition while
it reapplied for a WQC with DHEC.
Duke Energy reapplied for a WQC in July 2014. DHEC issued its Notice of Department Decision (NODD)
in January 2015 initiating a 15 -day period during which parties to this certification process could request
a review of the NODD by the DHEC Board. No such requests were received, allowing DHEC to finalize
the WQC on February 12. Now that the WQC has been issued and sent to the FERC, the parties to the
WQC agreement will take the needed steps with the South Carolina courts and the FERC to end all court
cases and petitions. These parties will then urge the FERC to expedite its issuance of a New License for
the Project.
In general, this WQC looks a lot like the former DHEC staff proposal (May 2009) with the following three
changes. The resulting WQC remains consistent with the CRA.
1. Some of the content from the July 2014 WQC agreement has been brought into the certification,
requiring Duke Energy to copy AR and SCCCL on annual reports documenting flow releases from
Wateree Hydro Station between February 15 and May 15 during the previous calendar year.
2. There is more clarity in the WQC regarding which subsections of the CRA are incorporated into
the WQC conditions, primarily so that subsections not enforceable by the FERC in a New License
are not included in the WQC.
3. CRA requirements related to future consultation with resource agencies to determine if Wateree
Spring Stable Flow and Floodplain Inundation Protocols can be developed into New License
requirements (and, if so, amending the New License) have been added as WQC conditions.
We are encouraged at the prospect of soon receiving a New License. Once the New License is issued
we can all begin implementing the associated benefits, such as land conveyances, resource protection
and enhancements and additional public recreational amenities, called for in the CRA.
2
What do we expect from the FERC (and when)?
It's hard to say.
We expect the New License to combine the requirements recommended by the FERC in its July 2009
Final Environmental Impact Statement (Section 5), the terms and conditions in the July 2013 National
Marine Fisheries Service's Final Biological Opinion, and the certification requirements in the WQCs
from both North Carolina and South Carolina. However, we will have to wait until the FERC issues the
New License to see exactly what it contains in order to determine whether it is consistent with the
CRA.
There are no statutory, regulatory, or procedural requirements defining the timeframe in which the
FERC must act on our New License. Of course, the FERC must have all required information, which
it does now that the DHEC WQC has been issued. The FERC must now incorporate WQC conditions
into the New License and complete its internal review by both the Office of Environmental Projects
and the Office of General Counsel.
Ex -parte communication restrictions prohibit off - the - record discussions with the FERC, so Duke
Energy has no information on when to expect the New License. We anticipate the remainder of the
process will take four to six months, meaning a New License could potentially be issued by the FERC
this summer.
What can we do before the New License is issued?
The FAC wants to reach out to all CRA Parties in hopeful anticipation of the issuance of a New License
in 2015. In consideration of the time that has passed and personnel turnover among CRA Parties since
the CRA was signed in 2006, we need to alert and refresh all CRA Parties so they understand their
and Duke Energy's obligations and what to expect when the New License is issued.
The outreach program will consist of (but is not limited to) the following features:
One -on -one contact with CRA Parties intended to address specific questions and issues
Information packages customized for each CRA Party containing information about the
background behind the CRA, each Party's commitments, and Duke Energy's commitments
to them
• An open -house or other form of an all- Parties meeting (may occur following issuance of the
New License)
If you have specific questions or suggestions to make this outreach program more useful for you
and /or your organization, please send them to Mark Oakley (mark.oakley(a7duke- energy.com; 704-
382 -5778) or to any of the FAC members listed below.
Mike Bailes, Catawba River Water Treatment Plant ..... ...............................
mbailes .crwtp.orq
Maurice Blackburn, Carolina Canoe Club ................................
....mblackburn1 @carolina.rr.com
Dick Christie, South Carolina Department of Natural Resources ..................
christied @dnr.sc.gov
Jacky Eubanks Catawba County ............ ...............................
ieubanks(a7catawbacountync.gov
Gary Faulkenberry, Lake Wateree Association . ...............................
gariverrats @comporium.net
Chris Goudreau, North Carolina Wildlife Resources Commission...
chris.goudreau(a7ncwildlife.org
Barry Gullet, Charlotte Water ......................... ...............................
bgullet @ci.charlotte.nc.us
Al James, SC Department of Parks, Recreation, and Tourism .............
landsfordcanal @scprt.com
Jeff Lineberger, Duke Energy ................. ...............................
jeff.lineberger @duke - energy.com
Jim Prosser, Centralina Council of Governments ............................
........jprosser @centralina.org
Fred Tarver, NC Department of Environment and Natural Resources....... fred.tarver @ncdenr.gov
Vicki Taylor, Catawba Wateree Relicensing Coalition ..........................
vetaylor @roadrunner.com
New FAC Member
Jacky Eubanks of Catawba County, North Carolina is our newest FAC member. He fills the
position vacated by Mary George, also of Catawba County, upon her retirement in April, 2014.
Thanks, Jacky for taking on this role as we soon begin to implement the benefits we have all
been waiting on since 2006.
What to expect once the New License is issued
When the New License is issued, we will have 30 days to thoroughly read it and determine if it is
consistent with the CRA. If not, or if there are unclear requirements, Duke Energy will have to file a
Request for Rehearing with the FERC in order to seek corrections and clarifications. We may be able
to schedule a meeting of all CRA Parties during this 30 -day period in order to share our findings, see if
there are other Request for Rehearing items, and make sure we all understand what we need to do to
implement the CRA and New License.
The requirements in the New License become effective immediately on the effective date of the New
License (typically the first day of the month in which it is issued). Fortunately, Duke Energy has been
voluntarily implementing new reservoir level, minimum flow release, recreation flow release, drought
management, and public information requirements in the CRA that are expected to appear in the New
License. Also, Duke Energy has been working for years to develop recreation access area plans so
that we can meet our commitment to implement 89 public recreation improvements.
The time period to implement some CRA requirements begins to run "following the FERC's issuance of
the New License and the closure of all rehearing and administrative challenge periods ". For CRA
provisions that are not being challenged, the time period begins as soon as the New License is
issued.
Seventy signatory parties to the CRA worked to assure environmental resources and the people of
North Carolina and South Carolina will benefit from a New License. In summary, the following benefits
will occur under the CRA once a consistent New License is issued. Note that some of these benefits
are anticipated to be in the New License and others are off - license agreements contained in the CRA.
• Duke Energy will replace an existing hydro unit at both the Wylie and Wateree Hydro Stations
with new aerating hydro units to deliver higher continuous minimum flow releases and to raise
dissolved oxygen. These flow and water quality enhancements greatly improve aquatic habitat
in approximately 100 miles of the Catawba and Wateree Rivers.
• Duke Energy will implement continuous flow releases into the Catawba River Bypassed Reach
(downstream of Lake James), the Great Falls Long Bypassed Reach, and the Great Falls
Short Bypassed Reach, reintroducing sustained flow in these river sections for the first time in
over 100 years.
• Duke Energy will increase aeration capabilities at its Bridgewater (Lake James), Rhodhiss,
Oxford (Lake Hickory), and Lookout Shoals Developments and make new higher continuous
minimum flow releases at Bridgewater, Oxford, and Lookout Shoals.
• Duke Energy and public water suppliers will implement a new Low Inflow Protocol (LIP)
establishing a basin -wide approach to reduce water use during droughts (though Duke Energy
and water systems in the Basin have been following this protocol voluntarily since 2006).
• Duke Energy and the public water system owners in the Basin have also established the
Catawba - Wateree Water Management Group to jointly fund long -term initiatives to improve
water quantity and quality management.
• Duke Energy will make over $3 million available to state resource agencies for aquatic and
terrestrial habitat enhancements and for land purchase /conservation.
• Duke Energy will convey more than 1,255 acres of land to North Carolina and to South
Carolina for public recreation and for compatible permanent conservation.
• Duke Energy will donate over $600,000 for cultural resources protection and enhancement.
• Duke Energy will donate over $4 million for others (primarily local governments) to develop
river and reservoir recreational amenities.
• Duke Energy will implement 89 public recreation amenity enhancements, including new access
areas, expansion of existing access areas, new fishing piers, new swimming areas, new
restrooms, new canoe /kayak launches, new or improved picnicking areas, and new or
improved parking areas.
• If the FERC issues a 50 -year license, Duke Energy will:
o Modify the Wateree spillway to improve high water management; and
o Make an additional $3 million available to state agencies to purchase additional land for
recreation and conservation.
The Catawba - Wateree Water Management Group ( CWWMG) was one of the very first elements of the
CRA implemented in 2007. Since that time, the CWWMG has developed into the leading regional
organization shaping and securing our water supply future
In 2014, the CWWMG rolled out the first -ever Water Supply Master Plan (WSMP) for the Catawba -
Wateree River Basin. Growth in the basin will happen with or without a plan for dealing with it. For the
first -time we now have a plan for feasible regional actions that can sustain the water supply until the
year 2100, a full half- century in addition to the mid -2000s sustainability achieved during the relicensing
process. The WSMP was developed over four years with the input of a 19- member Stakeholder
Advisory Team (SAT). Numerous water quantity enhancement ideas were analyzed by an upgraded
CHEOPSTM computer model and those that proved effective were merged into scenarios and analyzed
again for their combined potential to extend the available water supply in the region. Basically, the
WSMP is the result of integrated resource planning across both the water and energy sectors. You can
read the WSMP Executive Summary as well as the entire plan at http : / /www.catawbawatereewmq.orq /.
The WSMP was issued in May 2014.13 of 18 CWWMG member elected boards acted on the WSMP
in 2014 and each unanimously adopted non - binding resolutions of support (72 %). The five remaining
elected boards are expected to take action on non - binding resolutions in 2015. The Lincoln County
Commission heard a WSMP presentation in 2014 but delayed action pending a presentation to be
given to the Lake Norman Marine Commission. The CWWMG will discuss potential amendments to the
WSMP with the SAT, then amend the document later in 2015.
So, how is the WSMP related to the CRA and the New License? First of all, the requirements
(minimum flows, Normal Operating Ranges, Low Inflow Protocol) of the CRA remain intact. The WSMP
is a product of the CWWMG (a provision of the CRA), but the CWWMG's WSMP work product is
neither a CRA requirement nor a New License requirement. Implementation efforts for the WSMP will
all be going on simultaneously but independent from implementation of the CRA and the New License.
The CWWMG will lead WSMP implementation efforts. The Centralina Council of Governments has
convened regional "Thought Leaders" for input that could expand collaboration from within the
Catawba - Wateree Basin to include adjacent river basins. Such an expansion creates opportunities for
more comprehensive water supply plans and to start grappling with issues such as interbasin transfers
that transcend the Catawba - Wateree River Basin.