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HomeMy WebLinkAbout20150402-5127(30456255)DUKE ENERGY. April 2, 2015 Via Electronic Filing Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC 20426 Re: Keowee - Toxaway Hydroelectric Project (FERC No. 2503 -154) Notice of Request for Water Quality Certification Dear Secretary Bose: Water Strategy & Hydro Licensing Duke Energy 526 S. Church Street Charlotte, NC 28202 Mailing Address EC12Y P.O. Box 1006 Charlotte, NC 28201 -1006 Duke Energy Carolinas, LLC (Duke Energy) filed a Final Application for New License (License Application) for the Keowee - Toxaway Hydroelectric Project, FERC No. 2503 (Project) with the Federal Energy Regulatory Commission (FERC) on August 27, 2014. On February 5, 2015, FERC issued the Notice of Application Accepted for Filing and Ready for Environmental Analysis. On March 31, 2015, Duke Energy filed a request for Water Quality Certification (WQC) with the South Carolina Department of Health and Environmental Control (SCDHEC). Pursuant to 18 CFR §5.23, Duke Energy herein provides a copy of the request for WQC filed with SCDHEC, including proof of the date on which SCDHEC received the request. The majority of the Project is located in South Carolina with a small portion of Lake Jocassee located in Transylvania County, North Carolina. The North Carolina Department of Environment and Natural Resources, Division of Water Quality (merged into the Division of Water Resources in 2013) issued a letter on April 7, 2011, indicating SCDHEC as the sole authority to issue WQC for the Project. No water release from the Project occurs in North Carolina. If you have questions or need additional information regarding this filing, please contact Ms. Jennifer Huff at 980.373.4392 or Jennifer. Huff @duke - energy.com. Sincerely: Jeffrey G. Lineberger, P.E. Director, Water Strategy & Hydro Licensing Duke Energy Enclosures: Request for 401 WQC Proof of receipt DUKE ENERGY. March 31, 2015 Via overnight delivery Mr. Charles Hightower South Carolina Department of Health and Environmental Control Water Quality Division, Bureau of Water 2600 Bull St Columbia, SC 29201 -1708 Water Strategy & Hydro Licensing Duke Energy 526 S. Church Street Charlotte, NC 28202 Mailing Address EC12Y P.O. Box 1006 Charlotte, NC 28201 -1006 Subject: Keowee - Toxaway Hydroelectric Project (FERC No. 2503) Application for Water Quality Certification Pursuant to Section 401 of the Clean Water Act Dear Mr. Hightower: Duke Energy Carolinas, LLC (Duke Energy) herein submits this application for Water Quality Certification pursuant to Section 401 of the Clean Water Act (401 WQC) for the Keowee- Toxaway Hydroelectric Project licensed by the Federal Energy Regulatory Commission (FERC) as FERC Project No. 2503 (Project). The Existing License for the Project expires on August 31, 2016, and Duke Energy is required to obtain a New License from the FERC in order to continue operating the Project. The federal action of issuing a New License for the Project requires Duke Energy to seek a 401 WQC from the South Carolina Department of Health and Environmental Control (SCDHEC) in accordance with the requirements of 18 CFR §5.23(b), unless waived by SCDHEC. On August 27, 2014, Duke Energy filed an Application for a New License (License Application) with the FERC along with a Relicensing Agreement (RA). The RA represents the collective vision of the 17 signatory parties as to how the Project should be operated during the New License term. On February 5, 2015, the FERC issued a Notice of Acceptance and Ready for Environmental Analysis (Notice of REA). Duke Energy is required to submit an application for 401 WQC in accordance with the requirements of the Federal Power Act within 60 days following the Notice of REA. The subject of this certification is the continued operation of the Project under a New License to be issued by the FERC that is consistent with the License Application and applicable sections of the Keowee - Toxaway RA. Enclosed is a complete application package for the 401 WQC of the Project. The enclosed application package is intended to provide the information to certify the operation of the Project will meet applicable water quality standards in accordance with Section 401 of the Clean Water Act and South Carolina Water Quality Standards. The enclosed application includes the following: Mr. Charles Hightower March 31, 2015 Page 2 • A description of the existing Project and Project operation; • An overview of the Relicensing Process including studies completed and agreements negotiated; • A description of the proposed Project operation and water quality measures; • A summary of South Carolina Water Quality Criteria; and • A summary of the assessment of water quantity, water quality, and aquatic and botanical resources at the Project excerpted from Exhibit E of the License Application. Duke Energy has provided all the information required by R 61 -101, including the adjacent landowner information. Additional Project information can be obtained from the License Application which is enclosed on a DVD with this application, and on the Project public relicensing website's online library at http: / /www. duke - energy. com / lakes / keowee - toxaway - relicensing.asp. If you have questions or need additional information regarding this filing, please contact Ms. Jennifer Huff at 980.373.4392 or Jennifer. Huff @duke - energy.com. Sincerely: �* 9'—Y Jeffrey G. Lineberger, P.E. Director, Water Strategy & Hydro Licensing Duke Energy Enclosures: Application for 401 Water Quality Certification Adjacent landowners (CD) License Application (DVD) cc w/o enclosures: Erin Owen, SCDHEC Jennifer Huff, Duke Energy Keith Finley, Duke Energy Garry Rice, Duke Energy John A. Whittaker IV, Winston & Strawn LLP Kim Ognisty, Winston & Strawn LLP Keowee - Toxaway Hydroelectric Project (FERC No. 2503) Application for Water Quality Certification Pursuant to Section 401 of the Clean Water Act (' DUKE ENERGY Duke Energy Carolinas, LLC Charlotte, North Carolina March 2015 © Duke Energy Carolinas, LLC (This page intentionally blank) Keowee - Toxaway Hydroelectric Project (FERC No. 2503) Application for Water Quality Certification Pursuant to Section 401 of the Clean Water Act Table of Contents Listof Figures ................................................................................................ ............................... ill Listof Tables ................................................................................................. ............................... iv RequiredInformation ...................................................................................... ............................... v 1.0 Introduction ............................................................................................ ............................... 1 2.0 Project Description .................................................................................. ..............................2 2.1 General Project Description .............................................................. ..............................2 2.1.1 Jocassee Development ............................................................... ..............................2 2.1.2 Keowee Development .............................................................. ............................... 6 2.2 South Carolina Water Quality Criteria ............................................ ............................... 9 2.3 Existing Project Operation ............................................................. ............................... 11 2.3.1 Jocassee Development ............................................................ ............................... 11 2.3.2 Keowee Development .............................................................. .............................12 2.4 Existing Agreements that Influence Project Operations .................. .............................12 2.4.1 New Operating Agreement ..................................................... ............................... 12 2.4.2 Keowee - Toxaway Fishery Resources Memorandum of Understanding ............... 13 2.4.3 Low Inflow Protocol .............................................................. ............................... 13 3.0 Overview of FERC Relicensing ........................................................... ............................... 14 3.1 Stakeholder Process ......................................................................... .............................14 3. 1.1 Stakeholder Team ..................................................................... .............................14 3.1.2 Resource Committees ............................................................. ............................... 14 3.1.3 Study Teams ............................................................................. .............................15 3.1.4 Ad Hoc Committees ............................................................... ............................... 15 3.2 Relicensing Studies ........................................................................ ............................... 15 3.3 Relicensing Agreement .................................................................... .............................16 3.4 Proposed Project Operations & Water Quality Resource Measures .............................16 3.4.1 Proposed Project Operations .................................................. ............................... 17 3.4.1.1 Reservoir Level Operating Ranges and Flow Releases under Normal Conditions..................................................................... ............................... 17 Duke Energy Carolinas, LLC i 401 WQC Application Keowee - Toxaway Project (FERC No. 2503) 3.4.1.2 Project Operation under Drought Conditions ................ ............................... 18 3.4.1.3 Project Operation during Maintenance and Emergency Conditions............ 18 3.4.2 Proposed Water Quality Resource Measures ........................... .............................19 4.0 Assessment of Water Quality, Water Quantity, and Aquatic Resources at the Project...... 20 4.1 Water Quality ................................................................................. ............................... 20 4. 1.1 Dissolved Oxygen .................................................................. ............................... 20 4.1.1.1 Keowee Reservoir Water Quality Modeling Study ....... ............................... 21 4.1.1.2 Jocassee Forebay and Tailwater Water Quality Study .... .............................22 4.1.2 Modeled Cumulative Effects .................................................. ............................... 23 4.1.2.1 Modeled Effects of Hypothetical Nutrient Loading Increases ..................... 23 4.1.2.2 Modeled Effects of Climate Change Scenarios ............. ............................... 23 4.1.3 Other Water Quality Parameters ............................................ ............................... 24 4.2 Water Quantity ............................................................................... ............................... 24 4.2.1 Operations Modeling ................................................................ .............................25 4.2.2 Project Reservoir Elevations .................................................. ............................... 25 4.2.3 Water Supply ............................................................................ .............................26 4.2.4 Downstream Effects ............................................................... ............................... 27 4.3 Aquatic Resources ......................................................................... ............................... 30 4.3.1 Rare, Threatened, and Endangered Species ........................... ............................... 30 4.3.2 Special and Unique Habitats .................................................. ............................... 30 4.3.2.1 National Wild and Scenic Rivers .................................. ............................... 30 4.3.2.2 National Estuarine Research Reserves .......................... ............................... 30 4.3.2.3 National Ecological Reserves .......................................... .............................30 4.3.2.4 State Scenic Rivers ........................................................ ............................... 30 4.3.3 Fisheries .................................................................................... .............................30 4.3.3.1 Littoral Fish Spawning and Reproduction ..................... ............................... 30 4.3.3.2 Lake Jocassee Pelagic Trout Fishery ............................. ............................... 31 5.0 Conclusion ........................................................................................... ............................... 32 6.0 Literature Cited .................................................................................... ............................... 33 Appendix A: Keowee Hydro Station and J. Strom Thurmond Hydro Station Flow Releases during Drought Years Duke Energy Carolinas, LLC ii 401 WQC Application Keowee - Toxaway Project (FERC No. 2503) List of Figures Figure2.1 -1. Project Map ......................................................................... ............................... 3 Figure 2.1 -2. Upper Savannah River Basin Reservoirs ............................ ............................... 4 Figure 2.1 -3. Lake Jocassee Dam, Tailrace, and Spillway Area Facilities Map ..................... 5 Figure 2.1 -4. Lake Keowee Dam and Tailrace Area Facilities and Little River Dam AreaFacilities Map ............................................................. ............................... 7 Duke Energy Carolinas, LLC iii 401 WQC Application Keowee - Toxaway Project (FERC No. 2503) List of Tables Table 2.1 -1. Physical Features of the Jocassee and Keowee Developments .......................... 8 Table 2.2 -1. Designated Use Classifications of Waterbodies within the Jocassee and Keowee Watersheds located in South Carolina ......... ............................... 10 Table 2.2 -2. South Carolina Numeric State Water Quality Standards Relevant to theProject .......................................................................... ............................... 11 Table 3.2 -1. Keowee - Toxaway Project Relicensing Studies ................ ............................... 16 Table 3.4 -1. Proposed Normal Maximum and Normal Minimum Elevations for Lake Jocassee and Lake Keowee ...................................... ............................... 17 Table 4.2 -1. Current and Proposed Normal Maximum and Normal Minimum Elevations for Lakes Jocassee and Keowee ...................... ............................... 25 Table 4.2 -2. Critical Elevations for Lake Jocassee and Lake Keowee ................................. 26 Duke Energy Carolinas, LLC iv 401 WQC Application Keowee - Toxaway Project (FERC No. 2503) Required Information Pursuant to S.C. Code Ann. § 48 -1 -30 and 48 -1 -50 of the 1976 code and under the regulations of R. 61 -101, an application to the South Carolina Department of Health and Environmental Control for water quality certification pursuant to Section 401 of the Clean Water Act must contain the following information: a) The name, address, phone numbers, principal place of business of the applicant and, if applicable, the name and address of the agent for the applicant. The name, address, phone number, and principal place of business of the applicant is: Duke Energy Carolinas, LLC Attention: Jennifer Huff Mail Code EC12Y 526 South Church Street (28202) PO Box 1006 Charlotte, North Carolina 28201 -1006 (980) 373 -4392 The names and addresses of the agents for the applicant are: Jeffrey G. Lineberger, P.E. Director, Water Strategy & Hydro Licensing Duke Energy Mail Code EC12Y 526 S. Church Street (28202) PO Box 1006 Charlotte, NC 28201 -1006 (704) 382 -5942 Jeff.Lineberger@duke-energy.com Duke Energy Carolinas, LLC Garry S. Rice Deputy General Counsel Duke Energy Mail Code DEC45A 550 S. Tryon Street Charlotte, NC 28202 (704) 382 -8111 Garry.Rice@duke-energy.com v 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Jennifer Huff Keowee - Toxaway Relicensing Project Manager Duke Energy Mail Code EC 12Y 526 S. Church Street (28202) PO Box 1006 Charlotte, NC 28201 -1006 (980) 373 -4392 Jennifer.Huff@duke-energy.com John A. Whittaker, IV Winston & Strawn LLP 1700 K St. N.W. Washington, DC 20006 (202) 282 -5766 jwhittak@winston.com b) A complete description of the proposed permitted activity, including the location, affected waterbody(s), purpose, and intent of the project; maps, drawings, and plans sufficient for review purposes (detailed engineering plans are not required). The permitted activity is the release of water related to continued operation of two hydropower electric generating facilities pursuant to a federally issued license. Remaining required information is provided in the following sections of this application. c) A description of all proposed activities reasonably associated with the proposed permitted project either directly or indirectly, including planned or proposed future development that relate to water quality considerations. d) e) F The proposed new federally issued operating license addresses all aspects of hydropower operations including, but not limited to, measures associated with operation of the reservoirs, construction and management of public recreation facilities, protection of significant archaeological and historic sites, and coordination with downstream hydropower operators. Additional information is provided in the following sections of this application. A description of the composition, source, and quantity of any material to be dredged or used as fill and a description of the area to be impacted, including the area of fill in acres. No dredging or filling activities are proposed under this application. The method of dredging or filling and specific plans for disposal and control of dredge spoils. Not applicable. The names and addresses of adjacent property owners. The names and addresses of property owners located adjacent to the Project Boundary are provided on the enclosed CD. Duke Energy Carolinas, LLC vi 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 1.0 Introduction Duke Energy Carolinas, LLC (Duke Energy) is the owner, operator, and Federal Energy Regulatory Commission (FERC) Licensee of the Keowee - Toxaway Hydroelectric Project, FERC Project No. 2503 (Project). The Existing License for the Project expires on August 31, 2016. Duke Energy is seeking to obtain a New License from the FERC for the continued operation of the Project. Duke Energy filed a Final License Application (FLA) for the Project with the FERC on August 27, 2014. The FLA is included on a DVD supplied with this application. The FLA includes a Relicensing Agreement (RA), a document representing the collective vision of the 17 signatory parties as to how the Project should be operated during the New License term. The RA is dated September 18, 2013, and was signed in November 2013 after more than four years of collaboration and negotiation. The RA became effective on December 1, 2013. See Section 3.3 of this Application for additional information about the RA. Pursuant to Section 401 of the Clean Water Act (CWA), 33 U.S.0 § 1341(a), Duke Energy must request Water Quality Certification (WQC) from South Carolina', unless the state authority waives this requirement. In South Carolina, the South Carolina Department of Health and Environmental Control (SCDHEC) administers WQC pursuant to S.C. Code Ann. § 48 -1 -30 and 48 -1 -50 of the 1976 Code as well as the regulations defined by R.61 -101. By filing this application, Duke Energy is seeking to obtain WQC from SCDHEC in accordance with Section 401 of the CWA for the continued operation of the Project under a New License issued by the FERC. This application is intended to provide the information to certify the operation of the Project will meet applicable water quality standards in accordance with Section 401 of the CWA and South Carolina Water Quality Standards. ' The majority of the Project is located in South Carolina with a small portion of Lake Jocassee located in Transylvania County, North Carolina. The North Carolina Department of Environment and Natural Resources, Division of Water Quality (merged into the Division of Water Resources in 2013) issued a letter on April 7, 2011, indicating SCDHEC as the sole authority to issue a 401 WQC for the Project. No water release from the Project occurs in North Carolina. Duke Energy Carolinas, LLC 1 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 2.0 Project Description 2.1 General Project Description The 867.6 -MW Keowee - Toxaway Hydroelectric Project is located in Oconee and Pickens counties, South Carolina with a small portion in Transylvania County, North Carolina. The Project consists of two developments: the Jocassee Development and Keowee Development. The Project was designed in the early to mid -1960s with construction commencing in 1968 and full commercial operation of all hydro units at the Project occurring by 1975. A map showing the general location of the Jocassee and Keowee Developments is included as Figure 2.1 -1. A general description of the developments is included below and a summary of Project features is included in Table 2.1 -1. The Project is located in the Upper Savannah River Basin on the Keowee and Little rivers. Upstream of the Project is the Bad Creek Hydroelectric Project (FERC Project No. 2740), also owned and operated by and licensed to Duke Energy. Downstream of the Project are Hartwell Lake, Richard B. Russell Lake, and J. Strom Thurmond Lake, all owned and operated by the US Army Corps of Engineers (USACE) (Figure 2.1 -2). 2.1.1 Jocassee Development The 710.1 -MW Jocassee Development is the upstream development of the Project. The Jocassee Development is located on the Keowee River in Oconee and Pickens counties, South Carolina, with a small portion of the reservoir extending into Transylvania County, North Carolina. The Jocassee Powerhouse, also known as the Jocassee Pumped Storage Station, is approximately 5.5 miles (mi) northeast of Salem, South Carolina (Figure 2.1 -1). Commercial operation of Units 1 and 2 began in 1973, and commercial operation of Units 3 and 4 began in 1975. The Jocassee Development releases water directly into Lake Keowee. The Jocassee Development includes Lake Jocassee, Jocassee Dam, two saddle dikes (designated 1 and 2), two intake structures, water conveyance tunnels, a powerhouse, and a gated spillway (Figure 2.1 -3). The Jocassee Pumped Storage Station generates electricity by operating four turbines supplied with water through the two intake structures and tunnels, typically during the day, and pumps water from Lake Keowee back to Lake Jocassee during low demand periods, typically at night. Lake Jocassee also serves as the lower reservoir for the Bad Creek Hydroelectric Project (FERC Project No. 2740), a pumped storage project (Figure 2.1 -2). Duke Energy Carolinas, LLC 2 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Figure 2.1 -1. Project Map I Hi gh lan �j`� T ltlsy v is sa HorsepassI River •� j f Tioxawgp River cS� I Nan t�A I r...�a4k C/ otit P 'fb nil a cat �\ \) / L P ! �sOU son River i �Gr,r jjryg 't ,) Jl�m Tlm •r W1° Y t r �� . � •Raoe.f •k, . a ' N O uu i,..eF' _ y, a_ r J d4so• or s C L I Resen�air SO T CAR L NA G O ' I ~~ lu Sum T rfryl Nitj4n,aI ,6re #t 1 OCC4 j and W a h a l l a \ �a 1004 Table Rock State Park i P �ck n s err t �> , Lifffe River �I}wt 7 C �''"�� a� ✓�tha ' S -r �� I z I l e 1%'A \� } Keowee Dam L b e r r and 7rrilrac rea llarrtr< c«he N q, ai v e i 4 123 m n ire r \ se eoa 76 orris.. /I rbul 17 Kentucky Virginia Legend Keowee - Toxaway Relicensing Tennessee ---Project Boundary =Lake — County Boundary —J National Forest] Natural Area. FERC Project No. 2503 i North Carolina Stream State Park I Natural Area US Highway Urban Area Project Location Map j I South Carolina ' abamai Georgia IJ x Project Location = 2 4 6 6 Data Source' Dam data derived from ESRI 93 Base Data Layers, 2003. Miles Projection: NAD 1933 StatePlane South Carolina International Feet Duke Energy Carolinas, LLC 3 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Figure 2.1 -2. Upper Savannah River Basin Reservoirs Lake Jcssee Bad Creels Reservoir d •'a�ilii ai'r 7M, r. - M ,L FHarnwelr La 1'tFatl Na. i4 `ff i11 ir.l. 11.1.. II 5 South Carolir-3 ti y:4 I +s JJI Georgia � t� r t^ Richard B. Russel; Lake rr 2k f AW .2+ 11 �4e "�1 •iu.dl Y�{'il �Ya�J.✓fIi, YYYBl.:r S1l it. rrFra, M.l lliDix'�afl •aiY1fY }!i Y1 "- r Duke Energy Carolinas, LLC 4 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 2k I qr �4 \ } M r Tennessee j south y11 Carolina Georgia Alabama $r Map Location. to - Legend North ___ Project Boundary Carolina Access Roads -- River Mile LaAe I f'� Mf �+rJ .r' rti Keowee - Toxaway Relicensing FERC Project No. 2503 Lake Jocassee Dam, Tailrace and Spillway Area Facilities Map a o.zs o.s 9.75 Os6e Source: ESR12OD9, (http',Oo[oercg— Ine.oxrn ps:'rbrld Imagery) Miles Prgedon: NAD 1693 5!atePlane South Caroline IMerna ionat Feet Duke Energy Carolinas, LLC 5 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 2.1.2 Keowee Development The 157.5 -MW Keowee Development is located on the Keowee and Little rivers in Oconee and Pickens counties, South Carolina. The Keowee Powerhouse, also known as the Keowee Hydro Station, is located on the Keowee River approximately 12 mi downstream of the Jocassee Powerhouse and 8 mi north of Seneca, South Carolina (Figure 2.1 -1). The Keowee Development consists of Lake Keowee; the Keowee Dam; the Little River Dam; four saddle dikes designated A, B, C, and D; the Oconee Nuclear Station (ONS) intake dike; a gated concrete ogee spillway; a powerhouse with two generating units; and an intake structure (Figure 2.1 -4). Commercial operation of the Keowee Development began in 1971. Lake Keowee serves as the lower reservoir for the Jocassee Pumped Storage Station. Water released from the Keowee Hydro Station flows directly into Hartwell Lake, a USACE reservoir. Duke Energy Carolinas, LLC 6 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Figure 2.1-4. Lake Keowee Dam and Tailrace Area Facilities and Little River Dam Area Facilities Map p VHF. rN I- -9 ti 6 5 IT, A It-324 Uzi] Duke Energy Carolinas, LLC 7 401 WQC Application Keowee-Toxaway Project (FERC no. 2503) CN'J E11- n Virginia Legend Keowee-Toxaway Relicensing Tennessee North Carolina Project Boundary FERC Project No. 2503 Access Roads Lake Keowee Dam and Tailrace Area Facilities & Little River Dam Area South Caroiina River Mile Facilities Site Map Georgia D 0.6 1 1.5 INap Location I Miles Dst S-..: FSRI Me, RWb- NAD 1983 SlaWNn. Sudh Car Wine Duke Energy Carolinas, LLC 7 401 WQC Application Keowee-Toxaway Project (FERC no. 2503) Table 2.1 -1. Physical Features of the Jocassee and Keowee Developments Development Jocassee Keowee River Keowee Keowee and Little Drainage Area Full Pond Elevation Gross Storage Volume at Full Pond Usable Storage Volume Surface Area at Full Pond Shoreline including Islands at Full Pond Reservoirs 145 square miles 1,110.0 feet AMSL 1,206,798 ac -ft 225,387 ac -ft (between 1110 feet AMSL and 1080 feet AMSL) 7,980 acres 92.4 miles 435 square miles 800.0 feet AMSL 869,338 ac -ft • 364,884 ac -ft (Existing License, between 800 feet AMSL and 775 feet AMSL) • 90,319 ac -ft (Existing Operations, between 800 feet AMSL and 794.6 feet AMSL) • 161,727 ac -ft (Proposed Operations, between 800 feet AMSL and 790 feet AMSL) 17,660 acres 387.9 miles Structure Turbine Type Number of Units Authorized Installed Capacity (per unit) Total Authorized Installed Capacity Maximum Hydraulic Capacity Powerhouses Semi - Outdoor Reversible Pump 4 177.525 MW 710.10 MW 36,200 cfs Concrete Diagonal Flow 2 78.75 MW 157.5 MW 24,920 cfs Notes: ac -ft — acre -feet; AMSL - above mean sea level; cfs - cubic feet per second; MW - megawatt Duke Energy Carolinas, LLC 8 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Dams Jocassee Dam Little River Dam Type Rock Fill with Earthen Core Compact Earth Fill Total Length 1,800 feet 1,800 feet Height 385 feet 165 feet Keowee Dam Type Compact Earth Fill Total Length 3,500 feet Height 165 feet Structure Turbine Type Number of Units Authorized Installed Capacity (per unit) Total Authorized Installed Capacity Maximum Hydraulic Capacity Powerhouses Semi - Outdoor Reversible Pump 4 177.525 MW 710.10 MW 36,200 cfs Concrete Diagonal Flow 2 78.75 MW 157.5 MW 24,920 cfs Notes: ac -ft — acre -feet; AMSL - above mean sea level; cfs - cubic feet per second; MW - megawatt Duke Energy Carolinas, LLC 8 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 2.2 South Carolina Water Quality Criteria The South Carolina Pollution Control Act (R. 61 -69, Classified Waters) provides a listing of all named waterbodies, some specific unnamed waterbodies, their designated use classifications, and locations. Lake Jocassee is designated as trout -put, grow, and take (TPGT). TPGT are freshwaters suitable for supporting growth of stocked trout populations and a balanced indigenous aquatic community of fauna and flora. These waters are also suitable for contact recreation and as a drinking water supply source after conventional treatment (SCDHEC 2012a). Lake Keowee is designated as freshwaters (FW). Freshwaters are suitable for contact recreation and as a source for drinking water supply after conventional treatment in accordance with the requirements of the SCDHEC. Freshwaters are also suitable for fishing and the survival and propagation of a balanced indigenous aquatic community of fauna and flora, as well as a water supply for industrial and agricultural uses (SCDHEC 2012a). A summary of the designated use classifications for Lake Jocassee and Lake Keowee watersheds (located in South Carolina) is included in Table 2.2 -1. South Carolina has assigned state water quality standards commensurate with the designated use classifications of a waterbody. Duke Energy has compiled an extensive water quality database for the Project reservoirs based on monitoring programs extending in time to immediately following original impoundment. The FLA describes water quality indicators that have been characterized within the Project reservoirs and tailwaters, in both historical and ongoing water quality monitoring assessments. Water quality results for pH, turbidity, major nutrients (phosphorus and nitrogen), and chlorophyll a were evaluated with respect to applicable water quality standards, and are summarized in FLA Exhibit E, Section 3.4.1.2, which is included on the DVD supplied with this application. Temperature and dissolved oxygen (DO) levels in Project flow releases are typically of primary significance during hydroelectric project relicensing and DO is typically the only numeric standard that becomes a compliance requirement for hydro project flow releases. A summary of South Carolina water quality standards for these two water quality parameters is included in Table 2.2- 2. Duke Energy Carolinas, LLC 9 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Table 2.2 -1. Designated Use Classifications of Waterbodies within the Jocassee and Keowee Watersheds located in South Carolina Watershed Name Description Designated Use Classification Thompson River From North Carolina -South Carolina TN state line to Lake Jocassee Rock Creek That portion within South Carolina TN (Toxaway River) Whitewater River From North Carolina -South Carolina ORW, TPGT state line to Lake Jocassee Bear Creek From North Carolina -South Carolina TN state line to Lake Jocassee Bear Camp Creek From North Carolina -South Carolina TN state line to Lake Jocassee Corbin Creek Entire tributary to Devils Fork Creek ORW, TPGT Limber Pole Creek Entire tributary to Devils Fork Creek TN Lake Jocassee From headwaters to 0.3 mi below Howard Creek Highway 130 above flow ORW, TPGT augmentation system at the Bad Creek Hydroelectric Project Dam From just above the flow Howard Creek augmentation system at the Bad Creek TN Hydroelectric Project Dam to Devils Fork Creek Devils Fork Creek From the confluence of Corbin Creek TN and Howard Creek to Lake Jocassee Laurel Fork Creek Entire tributary to Lake Jocassee TN Wright Creek Entire tributary to Lake Jocassee ORW, TPGT Lake Jocassee Entire lake TPGT Mill Creek Entire tributary to Eastatoe Creek TPGT Eastatoe Creek From its confluence with Laurel Creek TPGT Lake to Lake Keowee Keowee Little River Entire tributary to Hartwell Lake FW Martin Creek Entire tributary to Hartwell Lake FW Lake Keowee Entire lake FW Source: SCDHEC (2012a) Notes: FW — Freshwaters; ORW — Outstanding Resource Waters; TN — Trout - Natural; TPGT — Trout -Put, Grow, and Take Duke Energy Carolinas, LLC 10 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Table 2.2 -2. South Carolina Numeric State Water Quality Standards Relevant to the Project Parameter South Carolina Water Quality Standard Temperature Not to exceed 2.8 °C (5 °F) above natural temperatures up to 32.2 °C (applies to heated (90 °F) effluents only) Trout Waters: Not to vary from levels existing under natural conditions, unless determined that some other temperature shall protect the classified uses Dissolved oxygen Daily average not less than 5.0 mg/L Low of 4.0 mg /L Trout Waters: Not less than 6.0 mg /L Source: SCDHEC (2012b) Notes: mg /L — milligrams per liter 2.3 Existing Project Operation Duke Energy operates the Project primarily for the purposes of hydroelectric generation and supporting thermal electric generation and secondarily for water supply and recreation. The Keowee Development is a conventional hydroelectric facility and the Jocassee Development is a pumped- storage hydroelectric facility. Lake Keowee is the lower reservoir for the Jocassee Pumped Storage Station. Duke Energy has historically operated the Jocassee Development to meet its system's electrical demand. While the Keowee Development is also operated to meet Duke Energy system electrical demand, it is also a designated source of standby emergency power for ONS. Typically, Lakes Jocassee and Keowee are at their highest levels during the late winter and early spring months and then gradually decline to their lowest levels in the fall and early winter. The Normal Maximum Elevations specified in the Existing License for both reservoirs are the same elevation as the respective Full Pond Elevations (Table 2.1 -1), which are defined as the point at which water would first spill from the dams if Duke Energy took no action (the lowest point along the top of the floodgates). 2.3.1 Jocassee Development Under the Existing License, Lake Jocassee is allowed to operate between 1,110 feet above mean sea level (ft AMSL) and 1,080 ft AMSL. Historically, Duke Energy has operated Lake Jocassee at or above 1,094 ft AMSL more than 80 percent of the time. Typical daily fluctuations of Lake Jocassee elevations are less than approximately 1.5 ft; virtually all daily fluctuations are less than 2.9 ft. Duke Energy Carolinas, LLC 11 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 2.3.2 Keowee Development Under the Existing License, Lake Keowee is allowed to operate between 800 ft AMSL and 775 ft AMSL. Based on Nuclear Regulatory Commission (NRC) requirements for ONS and other operating considerations, Duke Energy generally maintains Lake Keowee at or above elevation 794.6 ft AMSL. Lake Keowee generally fluctuates less than 1.0 ft daily and almost all daily fluctuations are less than 1.8 ft. A December 1995 agreement with the SCDHEC (Duke Power Company et al. 1995) developed in accordance with Article 38 of the FERC license set the minimum water release from Lake Keowee at a leakage flow, consistent with Duke Energy's 1968 agreement with the USACE and the Southeastern Power Administration (SEPA). Even though the 1968 agreement with the USACE and was terminated and superseded by the execution of the New Operating Agreement (NOA), discussed in Section 2.4.1 below, the amount of leakage flow is unchanged, and neither the 1968 agreement nor the NOA stipulates a specific leakage flow. 2.4 Existing Agreements that Influence Project Operations 2.4.1 New Operating Agreement Duke Energy, the USACE, and the SEPA executed the NOA on October 17, 2014, which terminated and replaced a 1968 agreement associated with the Existing License. The NOA was developed to ensure the percent remaining usable water storage in the Duke Energy and USACE systems will remain in balance when low inflow conditions develop and as conditions become more severe. Under the NOA, declining remaining usable water storage in the downstream USACE reservoir system triggers Duke Energy to release water from the Keowee Development so both systems remain in balance until the Duke Energy system (i.e., Lakes Jocassee, Lake Keowee, and Bad Creek Reservoir) reaches 12 percent remaining usable water storage. At that point, while downstream water flow releases from the Keowee Development associated with hydroelectric generation would cease (excluding releases that may be required by the FERC, for ONS operations or situations covered by the Maintenance and Emergency Protocol (MEP)), approximately 650 ac -ft of water per week would continue flowing downstream due to leakage and seepage, consistent with existing operations. Therefore, water continues flowing into Hartwell Lake even during the most severe droughts. Further, at the point of ceasing hydroelectric generation releases, without sufficient inflow, the remaining usable water storage combined in the three Duke Energy reservoirs would continue to decline below 12 percent due to on- reservoir water withdrawals, surface evaporation, leakage, and seepage. Thus, as the USACE system continues to decline below 12 percent remaining usable water storage, the Duke Energy system remaining usable water storage would also continue to decline. The NOA also includes operational effects of access to additional water storage in Lake Keowee currently not available due to the operational limitations of ONS. The USACE completed an Environmental Assessment of the potential effects of the NOA and issued a Finding of No Significant Impact prior to executing the NOA (USACE 2014). Duke Energy Carolinas, LLC 12 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 2.4.2 Keowee - Toxaway Fishery Resources Memorandum of Understanding As part of the licensing of the Bad Creek Hydroelectric Project, Duke Energy entered into a Memorandum of Understanding (MOU) with the South Carolina Department of Natural Resources (SCDNR) for the long -term management of the fishery resources in Lake Keowee, Lake Jocassee, and their tributary streams. While not a party to the MOU, the US Fish and Wildlife Service (USFWS) is also notified of certain activities associated with implementation of the MOU. Through this MOU, SCDNR and Duke Energy personnel work cooperatively, and include third parties as necessary, to design and implement data collection and other activities to develop and enhance management strategies for fish in these areas. Activities and studies related to the MOU were first implemented in 1996 and have continued through a series of work plans that currently extend through 2015, when the next work plan will be developed. 2.4.3 Low Inflow Protocol The Low Inflow Protocol (LIP), included as Appendix D of the RA, sets forth responses to drought conditions in the Keowee - Toxaway Project river basin by RA signatories and others withdrawing water from the Project. It includes defined drought stages, drought stage trigger levels, drought stage recovery trigger levels, and water use reduction goals for each stage. The LIP is closely linked to the USACE's Drought Plan for the downstream federal reservoirs and the NOA. The LIP went into effect when the RA became effective on December 1, 2013. Duke Energy Carolinas, LLC 13 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 3.0 Overview of FERC Relicensing Duke Energy began relicensing activities, including a substantial effort to foster collaboration among regional stakeholders, five years prior to the submittal of the FLA to FERC. Relicensing has followed FERC's Integrated Licensing Process (ILP) supplemented by a separate stakeholder process aligned with the ILP, negotiation of the RA with stakeholders, and negotiation of the NOA with the USACE and SEPA. All three processes were focused on producing a New License reflecting comprehensive and coordinated development and management of the waterway. While the ILP includes opportunities for interested stakeholders to participate in the relicensing process, Duke Energy devoted significant resources to enhancing stakeholder involvement in the relicensing of the Project. These efforts have included public meetings, distribution of an electronic newsletter, extensive use of the public relicensing website, and the formation of relicensing teams. Since June 2009, the various relicensing teams including the Stakeholder Team, study teams, Resource Committees, and Ad Hoc Committees met more than 175 times combined to collaboratively identify interests, and key issues, define and implement studies, analyze study results, and negotiate alternatives related to continued operation the Project. 3.1 Stakeholder Process 3.1.1 Stakeholder Team The Stakeholder Team consists of representatives of local, state 2, and federal governmental agencies, Native American tribes, non - governmental organizations, businesses, the public, and Duke Energy. One of the primary responsibilities of the Stakeholder Team was the development of the RA, which was signed in November 2013 after more than four years of collaboration and negotiation. As stated earlier, the RA represents the collective vision of the 17 signatory parties as to how the Project should be operated during the New License term. 3.1.2 Resource Committees The Resource Committees (RCs) assisted in identifying studies related to their specific resource areas, providing technical input, identifying participants for the Study Teams, and synthesizing the findings of the Study Teams for review and consideration by the Stakeholder Team. The seven RCs— Aquatics, Cultural Resources, Recreation, Shoreline Management, Water Quality, Water Quantity and Operations, and Wildlife and Botanical —began meeting in October 2009. The Water Quality RC focused on water quality issues associated with operation of the Project. In addition to Duke Energy, the following organizations participated in the Water Quality RC: Friends of Lake Keowee Society, Greenville Water, Lake Hartwell Association, NC Department of Environment and Natural Resources, SCDHEC, SCDNR, and Upstate Forever. In addition to scoping the water quality studies conducted as part of relicensing (see description below), the 2 SCDHEC was an Interested Party on the the Stakeholder Team and was represented at most Stakeholder Team Meetings. Duke Energy Carolinas, LLC 14 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Water Quality RC also advised the Stakeholder Team regarding appropriate water quality protection and enhancement measures to incorporate into the RA. 3.1.3 Study Teams Duke Energy's scientists, engineers, and consultants conducted 14 studies during the relicensing of the Project. Each study was coordinated by its Study Team of technical experts who participated in study plan development and implementation. The Study Teams began meeting early in the process and concluded when the final study reports were issued. Those studies critical to assessing water quantity, water quality, and aquatic resources are discussed in more detail in Section 3.2 below. All 14 final study reports are included in Appendix E6 of the FLA, which is provided on a DVD with this application. 3.1.4 Ad Hoc Committees Ad Hoc Committees were formed as a means to address specific issues raised by the Stakeholder Team that could not be resolved efficiently in the facilitated discussion of the larger team. These five committees, made up of Stakeholder Team or RC members with particular resource expertise and /or interest in the subject at hand, participated in detailed discussions and brought recommendations back to the full Stakeholder Team. 3.2 Relicensing Studies As required by 18 CFR §5.11, Duke Energy prepared and filed a Proposed Study Plan (PSP) with the FERC on August 26, 2011. Duke Energy held the Initial PSP Meetings on September 13 and 14, 2011, in accordance with 18 CFR §5.11(e). Agency recommendations obtained during these and other meetings and formal comments to the FERC were integrated into the Revised Study Plan (RSP) filed with the FERC on December 22, 2011, and approved as modified by the FERC per the Study Plan Determination Letter issued on January 27, 2012. In 2012 and 2013, Duke Energy completed the 14 FERC- approved studies listed in Table 3.2 -1. Of the 14 studies completed, two pertain directly to water quality: (1) Jocassee Forebay and Tailwater Water Quality Study and (2) Keowee Reservoir Water Quality Model Study. Reports for these studies are included in the FLA in Appendix E6 of Exhibit E. Summaries of the objectives and results of these studies are provided in Section 4 of this application. Duke Energy Carolinas, LLC 15 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Table 3.2 -1. Keowee - Toxaway Project Relicensing Studies Fish Community Assessment & Entrainment Study Hydro Structures National Register of Historic Places Eligibility Assessment Study Recreation Use and Needs Study Shoreline Erosion Study Shoreline Classification Map Update Study Jocassee Forebay and Tailwater Water Quality Study Keowee Reservoir Water Quality Model Study Reservoir Level and Project Flow Releases Study Operations Model Study Water Supply Study Wetlands Study Avian Study Mammal Study Botanical Study 3.3 Relicensing Agreement Duke Energy and 16 other entities entered into the RA with an effective date of December 1, 2013.3 The RA represents the collective vision of the signatories for how the Project should be operated during the term of the New License and addresses issues involving reservoir elevations, water user needs, drought response, maintenance and emergency response, historic properties, public recreation, species protection, shoreline management, water quality, and other resource enhancement interests. Duke Energy's FLA, filed with the FERC on August 27, 2014, and this 401 WQC application incorporate measures consistent with the RA. The Stakeholder Team described in Section 3.1.1 above developed the RA. In the course of developing the RA, Stakeholder Team Members balanced competing resource and public interests. This outcome was realized by identifying interests, developing objectives, and collaborating to develop measures to protect, mitigate, and enhance resources, while providing for other beneficial uses of the Project waters, including hydroelectric generation, consumptive uses of Project water, and recreation. The RA includes measures associated with all aspects of continued operation of the Project. The RA was filed with the FLA as Appendix E1 of Exhibit E and is included on the DVD supplied with this application. 3.4 Proposed Project Operations & Water Quality Resource Measures Proposed Project operations and proposed measures specific to water quality are described below. 3 The 17 Parties to the Agreement are Duke Energy Carolinas, LLC; Advocates for Quality Development, Inc.; Anderson Area Chamber of Commerce; City of Seneca; Commissioners of Public Works of the City of Greenville; Friends of Lake Keowee Society, Inc.; Oconee County, South Carolina; Pickens County, South Carolina; Pickens County Water Authority; South Carolina Department of Archives and History; South Carolina Department of Natural Resources; South Carolina Department of Parks, Recreation and Tourism; South Carolina Wildlife Federation; The Cliffs at Keowee Vineyards Community Association, Inc.; The Reserve at Lake Keowee; Upstate Forever; and Warpath Development, Inc. Duke Energy Carolinas, LLC 16 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 3.4.1 Proposed Project Operations 3.4.1.1 Reservoir Level Operating Ranges and Flow Releases under Normal Conditions Except when operating in certain stages of the LIP (see Appendix D of the RA), the MEP (see Appendix E of the RA), or other temporary conditions as may be approved by the FERC, the Proposed Action is to operate the Project in accordance with the Normal Maximum Elevations and Normal Minimum Elevations shown in Table 3.4 -1. The Normal Minimum Elevation at Lake Jocassee would be increased from elevation 1,080 ft AMSL to elevation 1,096 ft AMSL. The level of Lake Jocassee has historically been at or above elevation 1,096 ft AMSL approximately 78 percent of the time (HDR Engineering 2012). Under Duke Energy's proposed operations, the water level in Lake Jocassee would fall below elevation 1,096 ft AMSL only under low inflow, maintenance, or emergency conditions consistent with the proposed LIP and MEP. Using the 73 -year historical unimpaired inflow to model proposed operations, Lake Jocassee would fall below 1,096 ft AMSL approximately 3 percent of the time. The Normal Minimum Elevation at Lake Keowee would be increased from elevation 775 ft AMSL to 796 ft AMSL. Reservoir levels have historically been at or above elevation 796 ft AMSL approximately 68 percent of the time (HDR Engineering 2012). Under proposed Project operations, elevations would fall below 796 ft only under low inflow, maintenance, or emergency conditions and only as allowed under the proposed LIP or MEP. Using the 73 -year historical unimpaired inflow to model proposed operations, Lake Keowee would fall below 796 ft AMSL approximately 7 percent of the time. Table 3.4 -1. Proposed Normal Maximum and Normal Minimum Elevations for Lake Jocassee and Lake Keowee Jocassee Pumped Storage Station and Keowee Hydro Station release water directly into Lake Keowee and Hartwell Lake, respectively, so continuous minimum flows or minimum average daily flow requirements from either hydroelectric facility are not proposed. Nonetheless, leakage flows of approximately 650 acre -feet of water per week will continue to be released from Lake Keowee into Hartwell Lake, consistent with agreements with SCDHEC (see Section 2.3.2 above), the LIP, and NOA. Duke Energy Carolinas, LLC 17 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Normal Maximum Elevation Normal Minimum Elevation Reservoir (ft AMSL) (ft AMSL) Lake Jocassee 1,110.0 1,096.0 Lake Keowee 800.0 796.0 Jocassee Pumped Storage Station and Keowee Hydro Station release water directly into Lake Keowee and Hartwell Lake, respectively, so continuous minimum flows or minimum average daily flow requirements from either hydroelectric facility are not proposed. Nonetheless, leakage flows of approximately 650 acre -feet of water per week will continue to be released from Lake Keowee into Hartwell Lake, consistent with agreements with SCDHEC (see Section 2.3.2 above), the LIP, and NOA. Duke Energy Carolinas, LLC 17 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 3.4.1.2 Project Operation under Drought Conditions Project operations during periods of low inflow would be subject to the requirements of both the LIP and the NOA. The LIP is described in detail below; the requirements of the NOA are consistent with the LIP. Given both the NOA and LIP address downstream water flow releases from Lake Keowee to support downstream water user needs during droughts, no continuous minimum flows or minimum average daily flow requirements from either hydroelectric facility are necessary or proposed. The LIP allows reservoir elevations lower than the Normal Minimum Elevations specified in Table 3.4 -1 when specific low inflow conditions exist, and includes provisions for limiting downstream flow releases. The LIP defines triggers for implementing the protocol, and resultant actions depend on the severity of the drought. There are five different drought stages in the LIP (0 -4), and each is defined by remaining usable storage in the Duke Energy reservoirs or the Drought Plan Level designated for the downstream USACE reservoirs, along with confirming triggers of the US Drought Monitor designation and streamflows representative of the Upper Savannah River Basin. Stage Minimum Elevations are defined for each drought stage. When a subsequent stage of the LIP is reached, each Project reservoir must be within 0.25 ft of the Stage Minimum Elevation of the previous stage of the LIP before each Project reservoir can be lowered to the next Stage Minimum Elevation. When operating in the LIP, Duke Energy will limit weekly flow releases from Keowee Dam to no more than the maximum weekly flow release as stated for the applicable LIP stage, except for flow releases that may be required for ONS operations, required by the FERC, or situations covered in the MEP. The weekly flow release amount includes the sum of all water released downstream from the Keowee Development (i.e., hydro unit generation plus hydro unit leakage, dam seepage, and spillway gate releases). When operating in the LIP near Stage Minimum Elevations, except for flow releases that may be required for ONS operations, required by the FERC or situations covered by the MEP, Duke Energy will not make an intentional flow release from Keowee Hydro Station if that flow release would reduce the level of Lakes Jocassee or Keowee below its Stage Minimum Elevation as specified for the applicable LIP stage. When operating in Stage 4, with remaining usable storage below 25 percent but greater than 12 percent, Duke Energy will not release water flows from the hydro units or flood gates of the Keowee Development if such flows would cause Lake Keowee to fall below 791.5 ft AMSL. Further, in Stage 4 of the LIP when the remaining usable storage is at or below 12 percent, Duke Energy will not make hydro unit or flood gate releases from Keowee Dam (except releases required by FERC, for ONS operations, or in accordance with the MEP). However, leakage flows of approximately 650 ac -ft per week will continue to be provided from the Keowee Development during drought periods. 3.4.1.3 Project Operation during Maintenance and Emergency Conditions Duke Energy proposes to implement the provisions of the MEP included as Appendix E of the RA. The MEP specifies when Duke Energy will notify entities of conditions under which Duke Energy Carolinas, LLC 18 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) reservoir elevations or downstream flow releases will differ from what may be specified in a New License (excluding operations under the LIP). The MEP lists the entities to be notified and/or consulted, along with timeframes for doing so. Examples of situations when the MEP might be used include hydro unit outages; dam safety emergencies; energy, voltage, or capacity emergencies; lake drawdowns required for maintenance; flood events; and support for local or regional emergencies. 3.4.2 Proposed Water Quality Resource Measures Based on the findings of completed Project water quality monitoring and water quality modeling studies, the Project water releases exhibit excellent water quality and will continue to do so under proposed Project operation. As supported by the consensus of the Water Quality RC and the signatories to the RA, Duke Energy proposes to continually monitor DO in the tailwaters of Keowee Hydro Station and Jocassee Pumped Storage Station in August for the term of the New License. Duke Energy proposes to submit the monitoring results to the SCDHEC annually by November 30. The month of August was selected because historic water quality data indicate DO levels are typically at their lowest during August. Duke Energy Carolinas, LLC 19 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 4.0 Assessment of Water Quality, Water Quantity, and Aquatic Resources at the Project The information presented below is a summary of historic water quality, water quantity, and aquatic resource data and the results of relicensing studies related to compliance with South Carolina water quality criteria (maintaining designated uses and associated water quality standards) under the Proposed Action. 4.1 Water Quality As described below, Lake Jocassee and Lake Keowee have historically met, currently meet, and based on modeling study results, are expected to continue meeting the applicable South Carolina designated uses and water quality standards (SCDHEC 2010)4. (See Exhibit E, Section E3.4.1.2 of the FLA for an extensive summary of historic water quality data collected at Lake Jocassee and Lake Keowee.) Water quality studies indicate Duke Energy's proposed operation of the Project is consistent with maintaining excellent water quality in support of South Carolina's designated uses. 4.1.1 Dissolved Oxygen The potential influence of hydroelectric operations on water quality is generally related to levels of DO, and where applicable, total dissolved gases that occur in generation water releases as a result of multiple, Project - specific factors. Due to the excellent reservoir water quality and the design and elevation of the hydro station water intakes at the Project within the well- oxygenated epilimnion of the two reservoirs, neither under - saturated nor supersaturated dissolved gas conditions (including DO) have been known to occur in water releases from either development. No violations of state DO water quality standards have been observed in the surface waters of either impoundment, nor in the water released from Jocassee Pumped Storage Station or Keowee Hydro Station. Duke Energy performed two studies during relicensing that assessed water quality at the Project based on existing and proposed operations: (1) Keowee Reservoir Water Quality Modeling Study and (2) Lake Jocassee Forebay and Tailwater Water Quality Study. Additionally, Duke Energy has collected water quality data in Lake Keowee since 1971 and Lake Jocassee since 1974. The sampling programs have consisted of different combinations of water quality parameters, but typically include monitoring for water temperature, DO, conductivity, pH, and nutrients. The information collected and analyzed during these studies was used to evaluate water quality at the Project in comparison to the South Carolina water quality criteria (supporting designated uses and complying with water quality standards). The relicensing studies and other relevant data are described below. 4 As noted in Table E3.4 -10 in Exhibit E of the FLA, only state water quality standards for DO apply to Project operations. Duke Energy Carolinas, LLC 20 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 4.1.1.1 Keowee Reservoir Water Quality Modeling Study The goal of the Keowee Reservoir Water Quality Modeling Study (Sawyer et al. 2013)5 was to evaluate the effects of the potential changes in Project operations on water quality in Lake Keowee and the water releases from the Keowee Hydro Station. The study used the CE -QUAL- W2 (W2) water quality model, a public domain model which has been employed extensively by scientists and engineers internationally to model water quality in many types of aquatic ecosystems, including large reservoirs like Lake Keowee. The W2 model was used to simulate the effects of existing and proposed Project operations on the water quality in Lake Keowee and the Keowee Hydro Station tailrace under varying meteorological conditions. Data used to calibrate the W2 model were collected in 2011 in Lake Keowee, the Keowee and Jocassee tailwaters, and tributary streams. Under the guidance of the Water Quality RC, the model was used to evaluate an extreme low- inflow, low reservoir level year (2008) and high - inflow year (1998), bracketing the range of water quality conditions likely to occur during future Project operations. Flows for the W2 model were derived from the CHEOPSTM model which was used by the Operations Scenario Ad Hoc Committee to assess various operational scenarios. The scenario "September 2012 Trial Balloon" was modeled to evaluate potential changes in water quality associated with changes in normal reservoir operating levels and implementation of the LIP and MEP (Sawyer et al. 2013). Proposed Project operations are the same as those modeled in the September 2012 Trial Balloon scenario, except the proposed LIP Stage 2 and 3 minimum elevations are 1 foot (ft) lower for Lake Jocassee than they were in the September 2012 Trial Balloon, and the proposed Normal Minimum, LIP Stage 0, and LIP Stage 1 Minimum Elevations are 1 ft higher for Lake Keowee than they were in the September 2012 Trial Balloon. The withdrawal zone for Keowee Hydro Station is influenced by an underwater weir, the top of which is at approximately 765 ft AMSL. Consequently, Keowee Hydro Station pulls relatively oxygen -rich water from nearer the reservoir surface instead of water with lower DO concentrations from deeper in the lake. This important controlling structural feature will not change with proposed Project operations. W2 modeling results indicate DO levels in Keowee Hydro Station water releases will meet or exceed state water quality standards under proposed Project operations. The excellent water quality in the reservoir and the upper level withdrawal from the lake are the primary reasons flow releases have consistently met and are predicted to continue to meet state water quality standards for DO. A summary of key study findings include the following. • Keowee Hydro Station Tailrace DO: All modeled DO results in the Keowee Hydro Station tailrace were well above the South Carolina Water Quality Standards of 5.0 mg /L daily average and 4.0 mg /L instantaneous. Modeled DO concentrations in Keowee 5 See FLA Exhibit E, Appendix E6 for a complete copy of the final study report. 6 CHEOPSTM is a computer -based hydroelectric operations model that assesses the impacts of simulated hydroelectric project operating conditions on flows and reservoir levels. See HDR Engineering 2014a (included in Exhibit E Appendix E6 of the FLA) for additional information about operations modeling. Duke Energy Carolinas, LLC 21 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Hydro Station water releases were slightly reduced under historic low inflow scenarios, yet remained consistently compliant with applicable water quality standards. Modeled scenarios with similar hydrology indicated that DO concentrations in tailwaters associated with hydro generation were relatively insensitive to changes from existing to proposed operations. • Keowee Hydro Station Tailrace Temperature: Water temperature in the Keowee Hydro Station tailrace is influenced by reservoir levels in both Lake Jocassee and Lake Keowee, operations of both Jocassee Pumped Storage Station and Keowee Hydro Station, and the temperature of the Jocassee Pumped Storage Station water releases into Lake Keowee. Modeling of various inflow and operational scenarios illustrated that the high -inflow (1998) scenario consistently exhibited summertime water release temperatures lower than release temperatures under the low -inflow (2008) scenarios. 4.1.1.2 Jocassee Forebay and Tailwater Water Quality Study The goal of the Lake Jocassee Forebay and Tailwater Water Quality Study (Reservoir Environmental Management, Inc. 2013) was to provide the information necessary to determine the effects of recent Project modifications (i.e., the installation of new hydro unit runners in 2010 -2011) on water quality in the forebay and tailwater of Jocassee Pumped Storage Station. Water temperature and DO data were collected in the Jocassee Pumped Storage Station forebay and tailwaters (Lake Keowee) from April through October 2012. Data were compared to the applicable water quality standards and historical water quality data collected at the sites. The data collected during the study were consistent with conditions observed between 2008 and 2011. During the period monitored, DO concentrations in the Jocassee Pumped Storage Station forebay or tailwater met South Carolina water quality standards at all times. Four years of Jocassee Pumped Storage Station tailwater (Lake Keowee) monitoring have demonstrated the water released from Lake Jocassee has DO concentrations well above (i.e., in compliance with) the applicable South Carolina Water Quality Standards (SCDHEC 2012b). The near - saturation levels of DO in the tailwater can be attributed primarily to generation flow withdrawals from the Jocassee Pumped Storage Station forebay that originate from the Lake Jocassee epilimnion, or the upper -most, well- oxygenated portion of the water column. This selective epilimnetic withdrawal corresponds to the Jocassee Pumped Storage Station intakes, which are between 1043 and 1067 ft AMSL. Similarly, during pumping operations, water pumped back to the forebay originates from the well- oxygenated Lake Keowee epilimnion. Pumping generally results in forebay DO concentrations very similar to the hydroelectric flow releases which had occurred within a similar timeframe. These important controlling structural features will not change with proposed Project operations. 7 See FLA Exhibit E, Appendix E6 for a complete copy of the final study report. Duke Energy Carolinas, LLC 22 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 4.1.2 Modeled Cumulative Effects 4.1.2.1 Modeled Effects of Hypothetical Nutrient Loading Increases The potential impacts attributable to hypothetical future increases in nutrient loading to Lake Keowee, although recognized by the Water Quality RC as watershed - derived and not directly related to Project operations, were nonetheless modeled by the Study Team at the request of the RC in order to examine the potential effects of anticipated regional population increase. A series of ten modeled scenarios were developed to analyze predicted water quality impacts resulting from hypothetical increased point and non -point source nutrient loading. Increasing modeled nutrient loading by as much as ten -fold did not result in any water quality standard violations. A modeled combination of doubled non -point nutritive inputs (mimicking hypothetical watershed disturbances or land use changes), coupled with the addition of a hypothetical 8- million gallon per day (MGD) wastewater treatment plant, produced localized increases of total phosphorus and chlorophyll a in the reservoir, yet predicted concentrations of both constituents were below applicable SCDHEC water quality standards, and the DO in Project tailwaters consistently remained well above water quality standards (Sawyer et al. 2013). 4.1.2.2 Modeled Effects of Climate Change Scenarios Following the completion of W2 model runs conducted for the Keowee Reservoir Water Quality Modeling Study (Sawyer et al. 2013), additional scenarios were analyzed at the request of the Water Quality RC to examine the potential water quality effects of a set of low- and high- impact climate change assumptions (Sawyer et al. 2014)8. The scenarios were modeled using updated CHEOPSTM- derived flows from the final proposed (WQ4) operational scenario for years 2008 (low- inflow) and 1998 (higher inflow). Potential climate change effects were evaluated separately by adding 3 °F (low- impact scenario) and 6 °F (high- impact scenario) to the air temperatures in the meteorological input data file, consistent with the operational modeling approach. Modeled water quality results from climate change scenarios showed minor water temperature increases and minimal corresponding reductions in DO concentration as compared to the modeled scenarios without air temperature adjustments. Modeled Lake Keowee tailrace temperatures were typically 1 to 2 °F warmer for the low- impact scenario and 2 to 3 °F warmer for the high- impact scenario. Modeled Lake Keowee forebay and tailwater DO concentrations corresponding to the low- and high - climate change scenarios were reduced by only 0.1 to 0.2 mg/L, or 0.2 to 0.3 mg /L, respectively, compared to the baseline scenario with unadjusted air temperatures. Scenarios modeled with actual 2011 air temperatures resulted in water temperatures and DO concentrations that were intermediate between those for the low- and high - impact climate change scenarios. Consistent with previous W2 modeling, the low inflow (2008- based) hydrology resulted in greater relative water quality impacts, although very minor in magnitude insofar as a reduction in DO concentration, compared to climate change scenarios run with 1998 hydrology. Modeled 8 See FLA Exhibit E, Appendix E6 for a complete copy of the final study report. Duke Energy Carolinas, LLC 23 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) DO concentrations in the Keowee Hydro Station tailrace, under even the most extreme modeled hydrology and climate change scenario, remained above 6.0 mg/L, and substantially above the 5.0 mg/L daily average water quality standard. 4.1.3 Other Water Quality Parameters A variety of water quality indicators, including turbidity, pH, concentrations of major nutrients (nitrogen and phosphorus) and chlorophyll a have been evaluated and are summarized in the FLA for the Project reservoirs (see FLA Exhibit E, Section 3.4.1.2, included on the DVD supplied with this application). These and other commonly measured water quality indicators are useful in characterizing the Project reservoirs' water quality as excellent from the standpoint of demonstrated consistent compliance with applicable numeric SCDHEC water quality standards. Patterns of nutrient and chlorophyll concentrations have established the reservoirs as having an oligotrophic (nutrient -poor) status. As a direct result, the Project reservoirs remain unimpaired by oxygen- demanding conditions that can result from nutritive inputs coupled with microbiological processes, and therefore, seasonal, near - saturation concentrations of DO in the reservoir epilimnion strata are the norm. However, because these additional water quality indicators are responsive to watershed influences and are generally un- responsive and un- linked to Project operations, no further discussion of these parameters has been included in this application. 4.2 Water Quantity As discussed in Section 3.2 above, Duke Energy performed three studies associated with water quantity during relicensing9: (1) Reservoir Level and Project Flow Releases Study; (2) Operations Model Study; and (3) Water Supply Study. The information collected and analyzed during these studies was used to evaluate water availability as a result of proposed Project operations, including meeting the existing and future competing demands and uses including hydropower generation, water supply, aquatic habitat, and recreation. The CHEOPSTM water quantity model10 was used to evaluate the effects of various operational scenarios on the downstream USACE reservoirs including water flow releases from the J. Strom Thurmond Dam using the 73 years of historic inflow data. During periods of normal inflow, simulated flow releases from the Keowee Development were associated with hydroelectric generation to meet system electrical demand. During periods of low inflow, the models simulated Project and downstream reservoir levels and flow releases consistent with the LIP and NOA. As described below, Duke Energy's proposed operation of the Project will ensure water availability to support South Carolina's designated uses. 9 All study reports are included in the Project FLA, Exhibit E, Appendix E6. io Duke Energy and the USACE used USACE's Hydrologic Engineering Center Reservoir System Simulation (HEC- ResSim) model to evaluate various operational alternatives when developing the NOA. Duke Energy Carolinas, LLC 24 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 4.2.1 Operations Modeling Duke Energy used a computer -based hydrologic /hydraulic water quantity simulation model (CHEOPSTM) of the two Project reservoirs, the upstream Bad Creek Reservoir, and the three large downstream USACE reservoirs to evaluate the potential effects of Project operations. The CHEOPSTM model was used to evaluate the capability of the system to operate under various scenarios and, therefore, provide stakeholders with information on how well or poorly particular scenarios met their individual and collective interests related to water quantity. The model has six nodes that correspond to the major hydraulic junctures in the modeled river system. The model accounts for inflows, discharges, changes in reservoir storage, water withdrawals, and surface evaporation, and power generation at the various nodes. Modeled scenarios described how each node in the model would respond to user - defined specific operating rules or conditions. As part of the Operations Model study, three scenarios were developed: Existing License, Baseline (Existing Operations), and Proposed Operations (Blend 2Db v2). These scenarios were run using the CHEOPSTM model with water use projections from the Water Supply Study; the HEC- ResSim model was used for the evaluation of the NOA with similar results ( USACE 2012). 4.2.2 Project Reservoir Elevations Duke Energy does not propose to change the Normal Maximum Elevations for either reservoir, but does propose changes to the Normal Minimum Elevations. The proposed Normal Minimum Elevations are low enough to allow for drawing down the reservoirs when substantial inflows are forecast and during dry periods without triggering the LIP, but are high enough to ensure public water supply intakes and Project Access Area boat ramps remain operational. The current and proposed Normal Maximum Elevations and Normal Minimum Elevations are summarized in Table 4.2 -1. Table 4.2 -2 provides a summary of surface elevations required to support various water uses at Lake Jocassee and Lake Keowee. Table 4.2 -1. Current and Proposed Normal Maximum and Normal Minimum Elevations for Lakes Jocassee and Keowee Note: The current minimum operating level for Lake Keowee is 794.6 ft AMSL to accommodate normal operations at ONS. Duke Energy Carolinas, LLC 25 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Current and Proposed Current Normal Proposed Normal Reservoir Normal Maximum Minimum Elevation Minimum Elevation Elevation (ft AMSL) (ft AMSL) (ft AMSL) Lake Jocassee 1,110.0 1,080.0 1,096.0 Lake Keowee 800.0 775.0 796.0 Note: The current minimum operating level for Lake Keowee is 794.6 ft AMSL to accommodate normal operations at ONS. Duke Energy Carolinas, LLC 25 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Table 4.2 -2. Critical Elevations for Lake Jocassee and Lake Keowee Notes: ac -ft — acre -feet, ft AMSL — feet above mean sea level; N/A — not applicable The proposed Normal Minimum Elevation for Lake Jocassee provides operating flexibility at Jocassee Pumped Storage Station while minimizing increases in fish entrainment associated with Bad Creek Hydroelectric Project pump -back operations when the reservoir elevation is below 1,096 ft AMSL. All existing Project Access Area boat ramps are usable at this elevation as well. Historically (including drought periods), Lake Jocassee has remained at or above elevation 1,096 ft AMSL about 78 percent of the time. The proposed Lake Keowee Normal Minimum Elevation of 796 ft AMSL will add a 1.4 -ft buffer to the current minimum reservoir elevation needed for normal ONS operation. The proposed Lake Keowee Normal Minimum Elevation will also ensure access to the Project Access Area boat ramps. Historically (including drought periods), Lake Keowee has remained at or above elevation 796 ft AMSL about 68 percent of the time. The higher Normal Minimum Elevations will reserve 116,650 ac -ft of storage in Lake Jocassee and 22,683 ac -ft of storage in Lake Keowee to be used only when operating under the LIP. After the planned ONS modification completion date of December 1, 2019, 94,091 ac -ft of additional storage (the volume in Lake Keowee between elevation 796 and 790 ft AMSL) will be reserved for use when operating under the LIP. 4.2.3 Water Supply The Water Supply Study (HDR Engineering 2014b; see FLA Exhibit E, Appendix E6) documented current water withdrawals, water returns, and overall water use for more than 60 public water and wastewater utilities throughout the Savannah River Basin, including the Keowee - Toxaway River Basin. The study further estimated future water withdrawals and returns for the next 50 years based on reasonable growth projections and assumptions. Those 50- year projections were in turn a key input to the operations model for that model's projections related to future operating scenarios. Duke Energy Carolinas, LLC 26 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Lake Jocassee Elevation (ft AMSL ) Lake Keowee Elevation (ft AMSL) Normal Full Pond Elevation 1,110.0 800.0 Level at Lake Jocassee below which fish entrainment becomes elevated during pump back at the Bad Creek Project 1,096.0 N/A Existing ONS lowest level operating restriction on Lake Keowee N/A 794.6 Lowest public boat ramp becomes unusable 1,080.0 786.7 City of Seneca water intake structure operational limit N/A 775.0 Lowest level for hydropower operations 1,080.0 775.0 Greenville Water intake structure operational limit N/A 770.0 Notes: ac -ft — acre -feet, ft AMSL — feet above mean sea level; N/A — not applicable The proposed Normal Minimum Elevation for Lake Jocassee provides operating flexibility at Jocassee Pumped Storage Station while minimizing increases in fish entrainment associated with Bad Creek Hydroelectric Project pump -back operations when the reservoir elevation is below 1,096 ft AMSL. All existing Project Access Area boat ramps are usable at this elevation as well. Historically (including drought periods), Lake Jocassee has remained at or above elevation 1,096 ft AMSL about 78 percent of the time. The proposed Lake Keowee Normal Minimum Elevation of 796 ft AMSL will add a 1.4 -ft buffer to the current minimum reservoir elevation needed for normal ONS operation. The proposed Lake Keowee Normal Minimum Elevation will also ensure access to the Project Access Area boat ramps. Historically (including drought periods), Lake Keowee has remained at or above elevation 796 ft AMSL about 68 percent of the time. The higher Normal Minimum Elevations will reserve 116,650 ac -ft of storage in Lake Jocassee and 22,683 ac -ft of storage in Lake Keowee to be used only when operating under the LIP. After the planned ONS modification completion date of December 1, 2019, 94,091 ac -ft of additional storage (the volume in Lake Keowee between elevation 796 and 790 ft AMSL) will be reserved for use when operating under the LIP. 4.2.3 Water Supply The Water Supply Study (HDR Engineering 2014b; see FLA Exhibit E, Appendix E6) documented current water withdrawals, water returns, and overall water use for more than 60 public water and wastewater utilities throughout the Savannah River Basin, including the Keowee - Toxaway River Basin. The study further estimated future water withdrawals and returns for the next 50 years based on reasonable growth projections and assumptions. Those 50- year projections were in turn a key input to the operations model for that model's projections related to future operating scenarios. Duke Energy Carolinas, LLC 26 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Water yield analyses were completed for the Existing Operations (Baseline) scenario and the RA (Blend 2Db v2) scenario which is consistent with proposed Project operations. The two water yield evaluations conducted for the RA (Blend 2Db v2) scenario include an analysis using the critical intake elevation constraint and an analysis using the full usable reservoir storage constraint. The RA (Blend 213b v2) scenario water yield analysis is intended to assess the Project's future ability to support regional water supply needs over the next 50 years, including during extended drought periods. Two public water suppliers (City of Seneca and Greenville Water) own and operate water intakes on Lake Keowee. These intakes are operational at reservoir elevations as low as 775 and 770 ft AMSL, respectively. The minimum reservoir elevation modeled at Lake Keowee using the CHEOPSTm model remained above 790.0 ft AMSL. Therefore, both intakes will continue to be operational under the proposed Normal Minimum Elevation at Lake Keowee as well as the reduced reservoir elevation allowed under the LIP. The LIP includes provisions for Duke Energy, Greenville Water, and City of Seneca to implement water conservation measures during certain LIP Stages. Further, the LIP stipulates that Duke Energy require, to the maximum feasible extent, new, expanded, and modified large water intakes constructed at the Project to be operable with Lake Keowee at its hydro operational limit of 775 ft AMSL. These measures plus the regional cooperative efforts required by the LIP will enhance protection of the water supply in the Upper Savannah River Basin. 4.2.4 Downstream Effects Water releases from Keowee Hydro Station flow directly into Hartwell Lake, a hydroelectric reservoir operated by the USACE. The USACE operates Hartwell Lake, as well as the Richard B. Russell and J. Strom Thurmond hydroelectric developments immediately downstream of Hartwell Lake, in accordance with its operational plans, the USACE Savannah River Drought Plan, and electric generation needs for use by SEPA. The USACE's operation of the J. Strom Thurmond Project directly affects flow releases into the Savannah River. Historically, flow releases from Lake Keowee are characterized by well- documented, excellent water quality (see Section 4.1) that consistently exceeds all applicable state water quality standards for DO. Keowee Hydro Station operations are projected to continue assuring excellent water quality characteristics in released water, thereby helping to assure designated uses of the downstream Savannah River are met. Furthermore, extensive water quality modeling studies indicate this ongoing trend will prevail in the future. This is attributable to water released from Keowee Hydro Station coming from oxygen- saturated water from near the top to the reservoir water column, as well as the very low nutrient status of the reservoir. Due to the relative smaller combined size of the Duke Energy reservoirs (Bad Creek and Keowee - Toxaway Projects) and their contributing drainage areas compared to the USACE reservoirs (Harwell, Richard B. Russell, and J. Strom Thurmond) and their drainage areas, water quantity modeling has indicated the Proposed Action (Blend 2Db v2) scenario will not significantly affect long -term USACE reservoir elevations or energy production at the USACE's developments. Relative differences in downstream Savannah River flow regimens potentially attributable to Proposed Operations, compared to Existing Operations, are minor and would occur infrequently (HDR 2014a). Duke Energy Carolinas, LLC 27 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) As discussed in Section 2.4.1, the NOA executed in October 2014 by Duke Energy, SEPA, and the USACE ensures that when sustained low inflow conditions develop in the Savannah River Basin, remaining usable water storage in the Duke Energy and USACE systems remains in balance as the USACE releases water from J. Strom Thurmond Dam. During development of the NOA, the USACE completed a thorough Environmental Assessment of the potential effects of the NOA and issued a Finding of No Significant Impact prior to executing the NOA (USACE 2014). The USACE Environmental Assessment summarized results from predictive water quality models applied by the Georgia Department of Natural Resources — Environmental Protection Division (DNR -EPD) to the Savannah River downstream of J. Strom Thurmond Dam, and also to the lower, estuarine section of the Savannah River, including Savannah Harbor (USACE 2012).11 The 2012 USACE's Savannah River Drought Plan (Drought Plan) stipulates an adaptive management approach when flow releases from J. Strom Thurmond are below 3,800 cfs during the months of November, December, and January. During such periods, state and/or federal regulatory agencies in Georgia and /or South Carolina can request the USACE increase flow releases from the J. Strom Thurmond Dam for the purpose of supporting downstream Savannah River water quality, including in the Savannah Harbor. As a result, adaptive management flow releases could be implemented during Drought Plan Levels 2, 3, and/or 4. If the USACE implements such flow releases, the USACE would increase the flow release from J. Strom Thurmond Dam above the minimum allowed during those months (for a given drought level) up to as much as 3,800 cfs to support downstream water quality needs. This potential increase in flow rate in such circumstances was noted by the USACE in its Environmental Assessment of the NOA. Because such adaptive management flow releases would likely reduce the remaining usable water storage in the USACE's three reservoirs as compared to what would have been released without the increased adaptive management flows, Duke Energy would then be contractually obligated under the NOA to release additional flow from Keowee Hydro Station in order to balance the remaining usable water storage in the Duke Energy reservoirs. Water quality in the Savannah River downstream of J. Strom Thurmond Reservoir can be linked in part to the magnitude and frequency of releases from J. Strom Thurmond Dam. The summer and early fall seasons typically present the most challenging circumstances for attainment of DO water quality standards in the Savannah River downstream of J. Strom Thurmond Dam, due to both the lower oxygen solubility at seasonally increased water temperatures and increased rates of microbial metabolism in the Savannah River, potentially increasing oxygen demand. Significantly, the Savannah River below J. Strom Thurmond Dam assimilates both non -point nutritive inputs as well as treated wastewater inputs from several National Pollution Discharge Elimination System (NPDES)- permitted outfalls. These inputs, as well as other factors such as " The DNR -EPD used the RIV1 (One - dimensional Dynamic Hydraulic and Water Quality) Model to investigate potential DO sags in the Savannah River mainstem downstream of the J. Strom Thurmond Dam to the US Geological Survey (USGS) Gage at Clyo, Georgia, under selected flow release assumptions from the J. Strom Thurmond Dam. For the further downstream estuarine portion of the river basin, including Savannah Harbor, the US Environmental Protection Agency (USEPA)- developed EFDC (Environmental Fluid Dynamics Code) and WASP (Water Quality Analysis Simulation Program) models were used in a separate effort related to the development of a Total Maximum Daily Load (TMDL) analysis. Duke Energy Carolinas, LLC 28 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) sediment oxygen demand, will typically have the most significant influence on water quality downstream of J. Strom Thurmond Dam. In conjunction with Project relicensing, Duke Energy used the CHEOPSTM model to investigate the potential effects of various operational scenarios on reservoir elevations and downstream flow releases. Model scenarios developed for current Project operations and the Proposed Action (Blend 213b v2) were run with period -of- record flows for the system, and separately, for drought years 12. For purposes of this analysis, it was assumed the USACE would continue to operate its three reservoirs consistent with the Drought Plan and the NOA. CHEOPSTM model results reveal that for drought years, J. Strom Thurmond Hydro Station would release on average about 0.6 percent less water under Proposed Operations (Blend2Db_v2_73yr) compared to Existing Operations during the time period April- December (the period identified as most likely to experience DO concerns). Year -by -year results within the modeled output, however, range from a 13.2 percent reduction to a 2.6 percent increase in water being released under Proposed Operations (Appendix A, Table A -1). The range of differences and average difference in flow releases were smaller for J. Strom Thurmond Hydro Station as compared to differences for Keowee Hydro Station (Appendix A, Table A -2). This is consistent with the relatively small drainage area contribution, and therefore effect, of flows released from Keowee Hydro Station when compared to the much larger inflows from the remainder of the J. Strom Thurmond watershed. Differences in Keowee Hydro Station flow releases between the Existing Operation scenario and Proposed Operation scenario are significantly attenuated in time and space as the flow difference travels downstream through the USACE's reservoirs as demonstrated by the timing of the largest differences in flows, both increases and decreases, under each scenario. For example, the largest negative percent difference (i.e., decrease) in flows at J. Strom Thurmond for the Proposed Operations scenario was 13.2 percent in 1941, but flow releases from Keowee Hydro Station for this same year increased by 3.3 percent. In some years, including notably the severe drought years 2007 and 2008, the Proposed Operations scenario resulted in either no change or an increase in flow releases from J. Strom Thurmond. Further, of the 50 drought years, 26 percent modeled an increase in flow releases from J. Strom Thurmond Hydro Station coinciding with a decrease in flow releases at Keowee Hydro Station or vice versa. Clearly, the magnitude and timing of flow releases from the J. Strom Thurmond Project into the downstream Savannah River are affected by more factors than simply releases from Keowee Hydro Station. Such differences in J. Strom Thurmond flow releases between Existing Operations and Proposed Operations would also be subject to significant channel routing attenuation downstream of the J. Strom Thurmond Dam. Regardless, flow releases from J. Strom Thurmond Dam are projected to be in compliance with the USACE's Drought Plan minimum flows. 12 Drought years were identified as a year in which the USACE's 2012 Savannah River Drought Plan was triggered. Duke Energy Carolinas, LLC 29 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 4.3 Aquatic Resources As described below, the aquatic resource studies indicated the Proposed Action will not adversely affect the aquatic ecosystem in the vicinity of the Project. 4.3.1 Rare, Threatened, and Endangered Species There are no federally listed Rare, Threatened, or Endangered species within the Project reservoirs or affected by operation of the Project. 4.3.2 Special and Unique Habitats 4.3.2.1 National Wild and Scenic Rivers A portion of the Horsepasture River which flows into Lake Jocassee is the only federally designated Wild and Scenic River in the vicinity of the Project. The downstream extent of the Wild and Scenic River corridor is located adjacent to, but not within, the Project Boundary. The portion of the Horsepasture River designated as a Wild and Scenic River is managed by the US Forest Service to maintain and enhance the scenic and riparian features of the river and to provide water - oriented recreation in a natural setting. Proposed Project operation will not adversely affect this resource. 4.3.2.2 National Estuarine Research Reserves There are no National Estuarine Reserves within the Project or affected by the Project. 4.3.2.3 National Ecological Reserves There are no National Ecological Reserves within the Project or affected by the Project. 4.3.2.4 State Scenic Rivers There are no SCDNR - listed State Scenic Rivers within the Project or affected by the Project. 4.3.3 Fisheries In conjunction with relicensing, Duke Energy summarized available data regarding the health of fish populations at the Project (Duke Energy Carolinas 2013; see FLA Exhibit E, Appendix E6). Proposed Project operations will not adversely affect these populations or the habitats on which they depend. 4.3.3.1 Littoral Fish Spawning and Reproduction Littoral fish populations at Project reservoirs are healthy and consistent with population levels that would be expected given the relatively low productivity of the Project reservoirs. Project operations under the Proposed Action would be consistent with existing and historic operations except the Proposed Action operations will reduce the extent of reservoir drawdowns in Lake Duke Energy Carolinas, LLC 30 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Jocassee and Lake Keowee as compared to existing Project operations, potentially providing more stability to littoral fish habitat. 4.3.3.2 Lake Jocassee Pelagic Trout Fishery Lake Jocassee is one of only a few reservoirs in South Carolina possessing the necessary combination of water temperatures and DO to allow the persistence and coexistence of both a warmwater and a coldwater (trout) fishery year- round. The sustainability of this fishery is partially dependent on the availability of suitable pelagic habitat, specifically, a hypolimnion that possesses water temperatures <20 °C and DO >5 mg /L during the critical summer and fall months. During extreme drought years, Lake Jocassee can experience periods of relatively low reservoir elevations. However, habitat monitoring since reservoir impoundment indicates year - to -year fluctuations in reservoir elevations alone have not influenced the amount of pelagic trout habitat; therefore, it is not expected for the Lake Jocassee trout fishery to be adversely affected by the Proposed Action (William Foris, Duke Energy, Personal Communication, October 15, 2013). Duke Energy Carolinas, LLC 31 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 5.0 Conclusion Duke Energy has allocated a substantial amount of effort and resources throughout and prior to the relicensing process to ensure the data needs of stakeholders were met, including that of the SCDHEC for 401 WQC. Collectively, the water quality data collected by Duke Energy to support certification and the assessments included in this application indicate the Proposed Action will meet applicable South Carolina designated uses and associated water quality standards. Duke Energy Carolinas, LLC 32 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) 6.0 Literature Cited Duke Energy Carolinas, LLC. (Duke Energy) 2013. Fish Community Assessment Study Plan Final Report. Duke Energy Carolinas, LLC, Charlotte, NC. January 2013. 2014. Comprehensive Environmental, Engineering, and Economic Impact Analysis Report for Revising the 1968 Operating Agreement for the Keowee - Toxaway Project. April 4, 2014. Duke Power Company and South Carolina Department of Health and Environmental Control. 1995. Federal Energy Regulatory Commission Minimum Streamflow Compliance Agreement Project No. 2503 (Keowee - Toxaway). December 1995. HDR Engineering. 2012. Reservoir Level and Project Flow Releases Study for the Keowee - Toxaway Relicensing Project (FERC No. 2503). Charlotte, NC. November 2012. 2014a. Operations Model Scenario Documentation Report. Prepared by HDR Engineering Inc. for Duke Energy Carolinas, Inc. May 2014. 2014b. Water Supply Study Report, Keowee - Toxaway Relicensing Project. Charlotte, NC. June 2014. Reservoir Environmental Management, Inc. 2013. Jocassee Forebay and Tailwater Water Quality Report. Prepared for Duke Energy Carolinas, LLC. February 2013. Sawyer, A. F., R. J. Ruane, and J. C. Knight. 2013. Keowee Reservoir Water Quality Modeling Study Report. Includes Appendices A -E. Prepared for Duke Energy Carolinas, LLC. March 2013. 2014. Keowee Reservoir Water Quality Modeling Study Addendum. CE- QUAL -W2 Model Results from WQ4 Operations Under Climate Change Scenarios. Prepared for Duke Energy Carolinas, LLC. May 2014. South Carolina Department of Health and Environmental Control (SCDHEC). 2010. Watershed Water Quality Assessment: Savannah River Basin. Technical Report No. 0217-10. Bureau of Water. Columbia, South Carolina. 2012a. R.61 -69 Classified Waters. Columbia, SC. June 22. 2012. [Online] URL: http: / /www.scdhec.gov/ environment /water /regs/R.61- 69.pdf. (Accessed September 12 2014.) 2012b. R.61 -68 Water Classifications and Standards. Columbia, SC. June 22. 2012. [Online] URL: https: / /www.scdhec.gov/ environment /water /regs /R.61- 68.pdf. (Accessed September 12, 2014.) US Army Corps of Engineers (USACE). 2012. Final Environmental Assessment and Finding of No Significant Impact - Drought Plan Revision, Savannah River Basin. July 2012. 2014. Final Environmental Assessment: New Operating Agreement Between U.S. Army Corps of Engineers, Southeastern Power Administration, and Duke Energy Carolinas, LLC. Savannah District USACE, October 2014. Duke Energy Carolinas, LLC 33 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) (This page intentionally blank) Appendix A Keowee Hydro Station and J. Strom Thurmond Hydro Station Flow Releases during Drought Years Duke Energy Carolinas, LLC 35 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) (This page intentionally blank) Table A -1. April - December Average J. Strom Thurmond Hydro Station Flow Releases for Drought Years (Projected Withdrawals with Historical Hydrology) Year April - December Average Flow Releases (cfs) percent Difference Compared to Existing Operations Existing Operations (BaseProjected_2012 -08- 23 73 r Proposed Operations (Blend2Db v2_73yr) 1940 7,435 7,405 -0.4 1941 5,749 4,988 -13.2 1942 6,413 6,399 -0.2 1944 7,336 7,331 -0.1 1945 6,967 6,960 -0.1 1946 7,522 7,523 0.0 1947 7,727 7,684 -0.6 1951 6,011 6,007 -0.1 1952 6,139 6,120 -0.3 1953 6,617 6,619 0.0 1954 4,986 4,855 -2.6 1955 4,285 4,333 1.1 1956 4,997 5,105 2.2 1957 7,223 7,235 0.2 1958 6,309 6,308 -0.0 1959 7,501 7,478 -0.3 1962 6,442 6,417 -0.4 1963 7,774 7,784 0.1 1966 6,327 6,335 0.1 1968 6,639 6,630 -0.1 1970 4,826 4,811 -0.3 1971 7,465 7,453 -0.2 1978 5,219 5,210 -0.2 1979 9,797 9,789 -0.1 1980 7,585 7,567 -0.2 1981 4,080 3,965 -2.8 1982 6,453 6,432 -0.3 1983 9,121 9,130 0.1 1985 4,885 4,850 -0.7 1986 3,845 3,835 -0.3 1987 4,934 4,924 -0.2 1988 3,866 3,798 -1.8 1989 6,792 6,908 1.7 1990 5,582 5,559 -0.4 1993 6,124 6,104 -0.3 1994 9,836 9,821 -0.2 1996 6,956 6,956 0.0 1997 7,192 7,185 -0.1 1998 7,887 7,891 0.1 1999 4,431 4,423 -0.2 2000 4,063 4,073 0.3 Duke Energy Carolinas, LLC 37 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Year April - December Average Flow Releases (cfs) Percent Difference Compared to Existing Operations Existing Operations (BaseProjected_2012 -08- 23 73 r) Proposed Operations (B1end2Db_v2_73yr) 2001 3,815 3,789 -0.7 2002 3,772 3,760 -0.3 2003 9,466 9,483 0.2 2004 7,472 7,487 0.2 2006 4,153 4,135 -0.4 2007 3,883 3,984 2.6 2008 3,686 3,686 0.0 2009 5,776 5,174 -10.4 2010 4,930 4,915 -0.3 2011 4,348 4,328 -0.5 Drought Year Average Percent Difference Drought Year Minimum Percent Difference Drought Year Maximum Percent Difference -0.6% -13.4% 2.0% Duke Energy Carolinas, LLC 38 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Table A -2. April - December Average Keowee Hydro Station Flow Releases for Drought Years (Projected Withdrawals with Historical Hydrology) Year April - December Average Flow Release (cfs) Percent Difference Compared to Existing Operations Existing Operations (BaseProjected_2012 -08- 23 73 r) Proposed Operations (B1end2Db v2_73yr) - 1940 928 898 -3.2 1941 600 619 3.3 1942 936 921 -1.6 1944 831 830 -0.2 1945 845 841 -0.5 1946 945 946 0.1 1947 715 676 -5.5 1951 850 846 -0.5 1952 758 753 -0.7 1953 930 925 -0.5 1954 683 481 -29.7 1955 633 541 -14.6 1956 645 642 -0.4 1957 1,126 1,093 -2.9 1958 973 971 -0.2 1959 1,177 1,154 -2.0 1962 907 877 -3.4 1963 655 642 -2.0 1966 817 816 -0.1 1968 791 782 -1.0 1970 607 587 -3.2 1971 1,015 1,002 -1.2 1978 502 489 -2.6 1979 1,540 1,534 -0.4 1980 863 854 -1.1 1981 555 439 -20.9 1982 795 779 -2.0 1983 882 891 1.0 1985 602 581 -3.6 1986 374 355 -4.9 1987 567 440 -22.4 1988 465 352 -24.4 1989 769 940 22.2 1990 628 623 -0.8 1993 711 630 -11.3 1994 1,045 1,032 -1.3 1996 798 785 -1.7 1997 643 643 0.0 1998 660 659 -0.0 1999 379 238 -37.1 2000 444 354 -20.3 2001 189 189 0.2 2002 314 302 -3.8 2003 1,141 1,142 0.1 2004 1,130 1,135 0.5 Duke Energy Carolinas, LLC 39 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) Year April — December Average Flow Release (cfs) Percent Difference Compared to Existing Operations Existing Operations (BaseProjected- 2012 -08- 23 73yr) Proposed Operations (B1end2Db v2_73yr) — 2006 578 393 -31.9 2007 514 364 -29.2 2008 266 314 17.7 2009 479 614 28.3 2010 613 480 -21.7 2011 664 467 -29.8 1996 798 785 -1.7 1997 643 643 0.0 1998 660 659 -0.0 1999 379 238 -37.1 2000 444 354 -20.3 2001 189 189 0.2 2002 314 302 -3.8 2003 1,141 1,142 0.1 2004 1,130 1,135 0.5 2006 578 393 -31.9 2007 514 364 -29.2 2008 266 314 17.7 2009 479 614 28.3 2010 613 480 -21.7 2011 664 467 -29.8 Drought Year Average Percent Difference Drought Year Minimum Percent Difference Drought Year Maximum Percent Difference -5.3 -37.1 28.3 Duke Energy Carolinas, LLC 40 401 WQC Application Keowee - Toxaway Project (FERC no. 2503) UPS: Tracking Information Proof of Delivery � Close Window Dear Customer, This notice serves as proof of delivery for the shipment listed below. Tracking Number: Service: Weight: Shipped /Billed On: Delivered On: Delivered To: Signed By: Left At: 1Z2124560193451552 UPS Next Day Air® 5.00 Ibs 03/31/2015 04/01/2015 10:18 A.M. COLUMBIA, SC, US FRANCIS Front Desk Thank you for giving us this opportunity to serve you. Sincerely, UPS Tracking results provided by UPS: 04/01/2015 10:38 A.M. ET Print This Page Close Window Page 1 of 1 http:// wwwapps .ups.comlWebTrackinglprocessPOD ?Requester= NES &tracknum =l Z21245... 4/1/2015