20080915 Ver 1_Approval Letter_20081114

O?6F W ATFgPG Michael F. Easley, Governor
William G. Ross Jr., Secretary
t - North Carolina Department of Environment and Natural Resources
'C Coleen H. Sullins,Director
Division of Water Quality
November 14, 2008
Mr. Steven D. Jester, VP
Hydro Licensing and Lake Services
Duke Energy Carolinas, LLC
526 South Church Street
Charlotte, NC 28202
Re: Catawaba-Wateree Hydroelectric Project
DWQ Number 2008-0915
FERC Project Number 2232
Burke, Caldwell, Catawba, Iredell, Lincoln, and Gaston Counties
Dear Mr. Jester:
Attached hereto is a copy of Certification No. 3767 issued to Duke Energy Carolinas,
Inc. dated November 14, 2008. In addition, you should get any other federal, state or
local permits before you go ahead with your project including (but not limited to) Solid
Waste, Sediment and Erosion Control, Stormwater, Dam Safety, Non-discharge and
Water Supply Watershed regulations.
If we can be of further assistance, do not hesitate to contact us.
CS/jrd
Attachments: Certificate of Completion
cc: E. Mark Oakley, P.E., Catawba-Wateree Relicensing Project Manager, Duke Energy
File Copy
Central Files
Heather Preston, South Carolina Water Quality Division, Bureau of Water, 2600
Bull Street, Columbia, South Carolina
Steve Reed, NC Division of Water Resources
Christopher Goudreau, NC Wildlife Resources Commission
Sean Murphy, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 27426
NhCarolina
oce
Wetlands and Stormwater Branch 1617 Mail Service Center Raleigh, NC 27699-1617 Phone [phone]
Internet: h2o.enr.state.nc.us 512 N. Salisbury St. Raleigh, NC 27604 FAX [phone]
An Equal Opportunity/Affirmative Action Employer- 50% Recycled/10% Post Consumer Paper
Sincerely,
Duke Energy Carolinas, Inc.
Page 2 of 4
November 14, 2008
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401 Public
Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division of
Water Quality (DWQ) Regulations in 15 NCAC 2H, Section .0500 to Duke Energy Carolinas,
Inc. to continue the operation of hydropower dams at Bridgewater Development, Rhodhiss
Development, Oxford Development, Lookout Shoals Development, Cowans Ford
Development, Mountain Island Development and Wylie Development in Burke, Caldwell,
Catawba, Iredell, Lincoln, and Gaston Counties, North Carolina and York County, South
Carolina, pursuant to an application filed on the 5th day of June of 2008, the Comprehensive
Relicensing Agreement and additional correspondence received October 21, 2008.
The application and supporting documentation provide adequate assurance that the proposed
work will not result in a violation of applicable Water Quality Standards and discharge
guidelines. Therefore, the State of North Carolina certifies that this activity will not violate the
applicable portions of Sections 301, 302, 303, 306, 307 of PL 92-500 and PL 95-217 if
conducted in accordance with the application, the supporting documentation, and conditions
hereinafter set forth.
This approval is only valid for the purpose and design submitted in the application materials and
as described in the Public Notice. If the project is changed, a new application for a new
Certification is required. If the property is sold, the new owner must be given a copy of the
Certification and approval letter and is thereby responsible for complying with all conditions of
this Certification. Any new owner must notify the Division and request the Certification be
issued in their name. Should wetland or stream fill be requested in the future, additional
compensatory mitigation may be required as described in 15A NCAC 2H .0506 (h) (6) and (7).
If any plan revisions from the approved site plan result in a change in stream or wetland impact
or an increase in impervious surfaces, the DWQ shall be notified in writing and a new
application for 401 Certification may be required. For this approval to be valid, compliance with
the conditions listed below is required.
Conditions of Certification:
1. No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian areas
beyond the footprint of the impacts depicted in the Certification. All construction activities,
including the design, installation, operation, and maintenance of sediment and erosion
control Best Management Practices, shall be performed so that no violations of state water
quality standards, statutes, or rules occur;
2. Sediment and erosion control measures shall not be placed in wetlands or waters to the
maximum extent practicable. If placement of sediment and erosion control devices in
wetlands and waters is unavoidable, they shall be removed and the natural grade restored
within six months of the date that the Division of Land Resources has released the project;
3. The Applicant shall identify and report in writing existing and proposed consumptive
uses to NCDWQ and the N.C. Division of Water Resources (NCDWR). The Applicant
shall report the existing or projected (as appropriate) average consumptive withdrawal
and maximum capacity for each withdrawal. The applicant shall report existing
consumptive uses to NCDWQ and NCDWR within 60 days of the acceptance of the
License and shall report proposed new or expanded consumptive uses to NCDWQ and
Duke Energy Carolinas, Inc.
Page 3 of 4
November 14, 2008
NCDWR within 30 days of receiving a request for the proposed new or expanded
withdrawal and before submitting any requests to FERC.
4. This Certification does not grant or affirm any property right, license or privilege in any
waters or any right of use in any waters. This Certification does not authorize any person
to interfere with the riparian rights, littoral rights or water use rights of any other person,
and this Certification does not create any prescriptive right or any right of priority
regarding any usage of water. No person shall interpose this Certification as a defense
in any action respecting the determination of riparian or littoral rights or other water use
rights. No consumptive user is deemed by virtue of this Certification to possess any
prescriptive or other right of priority with respect to any other consumptive user
regardless of the quantity of the withdrawal or the date on which the withdrawal was
initiated or expanded. This Certification issues on the express understanding of DENR
that, pursuant to Federal Power Act section 27, 16 U.S.C. § 821, the License does not
establish or determine a proprietary right to any use of water. It establishes the nature of
the use to which a proprietary right may be put under the Federal Power Act.
Continuing Compliance:
5. Duke Energy Carolinas, Inc. shall conduct its activities in a manner consistent with State
water quality standards and any other appropriate requirements of State law and federal
law. If the Division determines that such standards or laws are not being met (including
the failure to sustain a designated or achieved use) or that State or federal law is being
violated, or that further conditions are necessary to assure compliance, the Division may
reevaluate and modify this Certification to include conditions appropriate to assure
compliance with such standards and requirements in accordance with 15A NCAC
2H.0507(d). Before modifying the Certification, the Division shall notify Duke Energy
Carolinas, Inc. and the Federal Energy Regulatory Commission, provide public notice in
accordance with 15A NCAC 21-1.0503 and provide opportunity for public hearing in
accordance with 15A NCAC 21-1.0504. Any new or revised conditions shall be provided
to Duke Energy Carolinas, Inc. in writing, shall be provided to the Federal Energy
Regulatory Commission for reference in any Permit or License issued by that agency
and shall also become conditions of the FERC License for the project.
Mitigation:
6. Compensatory mitigation shall be done as outlined in the Catawba-Wateree
Comprehensive Relicensing Agreement, Signature Copy, Rev.1, dated December 22,
2006 and as outlined below. DWQ shall be copied on the property transfer, lease, and
any related conservation easements for the property outlined in the Comprehensive
Relicensing Agreement.
Other Conditions
7. The revised Quality Assurance Project Plan (QAPP) dated October 20, 2008 (Revision
#0) shall be followed while the FERC license is valid. If changes are proposed to the
QAPP, they shall be submitted to DWQ for review and written approval before any
changes are implemented.
8. The Catawba-Wateree Comprehensive Relicensing Agreement, Signature Copy, Rev. 1,
dated December 22, 2006 (Comprehensive Relicensing Agreement or CRA) is hereby
incorporated into this Certification by reference. If Duke Energy Carolinas believes that
Duke Energy Carolinas, Inc.
Page 4 of 4
November 14, 2008
any items of that Agreement are not pertinent to water quality, then they shall so notify
DWQ in writing for DWQ's written concurrence. In particular, the following sections of
the Comprehensive Relicensing Agreement are hereby incorporated by reference into
this Certification -
a. 2.0 Reservoir Elevation Agreements
b. 4.0 Habitat Flow Agreements
c. Sections 4.5 and 4.6 of the CRA regarding compensatory mitigation.
d. 6.0 Low Inflow Protocol Agreements
e. 7.0 Maintenance and Emergency Protocol Agreements
f. 13.0 Water Quality Agreements
g. 15.0 Gauging and Monitoring Agreements Sections 15.1 through 15.5
h. Appendix A: Proposed License Articles Sections A-1.0, A-3.0, A-4.0, A-5.0 ad A-
6.0
i. Appendix A: Proposed License Articles Section A-2.0 for Maximum Flows, Wylie
High Inflow Protocol. Flows Supporting Public Water Supply and Industrial
Processes, and Flow and Water Quality Implementation Plan.
j. Appendix C: Low Inflow Protocol (LIP) for the Catawba-Wateree Project
k. Appendix D: Maintenance and Emergency Protocol (MEP) for the Catawba-
Wateree Project
1. Appendix F: Water Quality Monitoring Plan
m. Appendix L: Flow and Water Quality Implementation Plan
As noted above other sections of the CRA are also incorporated unless Duke Energy
Carolinas notifies DWQ that they are not pertinent and DWQ concurs in writing.
9. The Division shall be notified in writing within five (5) days of any deviations to the
Comprehensive Relicensing Agreement proposed flow rates and lake level fluctuations.
Decreased flow shall be restored as soon as practical to the written satisfaction of DWQ.
Also, this approval to proceed with your proposed impacts or to conduct impacts to
waters as depicted in your application shall expire upon expiration of the FERC License.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing upon
written request within sixty (60) days following receipt of this Certification. This request must be
in the form of a written petition conforming to Chapter 150B of the North Carolina General
Statutes and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh,
N.C. 27699-6714. If modifications are made to an original Certification, you have the right to an
adjudicatory hearing on the modifications upon written request within sixty (60) days following
receipt of the Certification. Unless such demands are made, this Certification shall be final and
binding.
This the 14th day of November 2008
DIVISION OF WATER QUALITY
CS/jrd
Sullins, Dir (It