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HomeMy WebLinkAboutMitigation PlanFinal Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 1 Final Mitigation Plan In response to US Forest Service Section 4(e) Condition No. 19, FERC Articles 405 and 406, and to United States Army Corps of Engineers authority under Section 404 of the Clean Water Act Blue Lake Hydroelectric Project (FERC No. 2230) Expansion City and Borough of Sitka Electric Department Sitka Alaska September, 2012 1.0 Introduction and Background The City and Borough of Sitka, Alaska ("City") owns and operates the Blue Lake Hydroelectric Project (FERC No. 2230) near Sitka. Due to unforeseen electrical load growth in the City, the City and Borough of Sitka Electric Department has proposed to raise the dam and construct other project features which will increase annual energy output at the Project. Actions to accomplish this new construction are called the Blue Lake Project Expansion ("Expansion"). The Project license was issued by the Federal Energy Regulatory Commission (FERC) in 2007 and was amended by FERC Order in May, 2012 authorizing the proposed construction and operation to take place. Major components of the Amendment Order are Articles addressing environmental and other conditions which the City must observe during and after construction. 1.1 Need for This Plan This Draft Mitigation Plan (Plan) has been developed to satisfy requests for a Mitigation and Monitoring Plan from the Federal Energy Regulatory Commission (FERC) and the US Department of Agriculture Forest Service (USFS). The FERC requirements are stated in Articles 405 and 406 of the Order Issuing Amendment. The USFS Condition No. 19 is among items listed pursuant to Federal Power Act (FPS) Section 4(e) Condition no. 19. Condition 19 reads as follows: The Licensee, in consultation with the Forest Service and interested stakeholders, will develop a Project Mitigation and Monitoring Plan (Plan) within 60 days after amendment issuance. The Plan shall include detailed descriptions of the mitigation and monitoring measure(s), implementation schedules (including public notification strategy), and detailed steps for planning, design, construction, etc. of the approved measure(s). Additionally, the Plan shall provide a mechanism for the Licensee and the Forest Service to meet periodically to review/modify the implementation schedule of these measures. Once approved by the Forest Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 2 Service, the Licensee shall file the final Plan, including evidence of consultation, with the Commission and shall implement those measures approved by the Commission. It is anticipated that certain details of the environmental monitoring (e.g., specific years of sampling and/or specific study sites) may need modification during development of detailed study plans or during subsequent implementation of the environmental monitoring. All such modifications shall be developed in consultation with the Forest Service and stakeholders and approved by these agencies and provided to the Commission before implementation. Additionally, the Plan would address the United States Army Corps of Engineers (Corps) mitigation requirements based on Section 404 authority of the Clean Water Act for the unavoidable impacts to aquatic resources that would result from the proposed project. FERC Article 406 reads: Grassland Mitigation and Monitoring. As a component of Forest Service 4(e) Condition No. 19, the licensee shall develop a grassland mitigation measure to mitigate for reductions in grasslands caused by the proposed project. As part of the measure, the licensee shall also develop a monitoring plan to measure natural generation of wetlands around the new high water elevation and develop mitigation measures to ensure wetland functions are restored and the effects on wetlands are minimized. 1.2 Plan Organization A draft of this plan was prepared by the City to describe both mitigation proposals and the details of proposed monitoring programs for a list of resources. As described below, the mitigation proposals will be specific actions proposed by the City to mitigate for unavoidable project- related impacts. In a meeting with USFS on August 24, 2012, the City and USFS agreed that it would be wise to separate the mitigation plan from the monitoring plans because the monitoring plans may have been required by different Articles or Conditions. This final version of the Mitigation Plan does not contain the Monitoring Plans which were part of the original versions, and reference to those plans has been removed in this version. The Monitoring Plans are collected in a separate document. 1.3 Consultation and Plan Changes The City conducted a meeting among certain Stakeholders on July 20, 2012. At the meeting, agreement was reached among participants on specifics of the mitigation measures described in this plan. Final minutes of this meeting, incorporating participant comment has been distributed to all Stakeholders. On August 1, 2012, the USFS sent written comments on the draft plan (Attachment I). We have addressed these comments according to Attachment 1, Table 1, noting locations of changes made Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 3 in response to the comments. All comments from the USFS letter were incorporated without dispute. On August 16, 2012, the US Army Corps of Engineers (COE) sent comments regarding the Mitigation and Monitoring Plans (Attachment II). All changes suggested in this letter were incorporated verbatim; locations of the changes are documented in Attachment II, Table 1. Changes in this revised documented (added text) resulting from addressing the comments and meeting proceedings, are in italics. The City has also incorporated FERC Article 406 requirements in this plan. Changes relative to that action are in italics and underlined in this revised document. 2.0 Mitigation Proposals 2.1 Mitigation Planning Background The City has been involved in mitigation planning for several years. The planning effort has included several City-Stakeholder meetings and distribution of at least three documents and mitigation meetings describing City mitigation proposals. The USFS outlined two proposals for mitigation in a letter dated June 13, 2011 (Attachment III). This mitigation proposal is based on plan A, outlined in the letter. In conjunction with the above planning process, the City has also worked extensively with the US Army Corps of Engineers (USACOE) to assess impacts to Waters of the US, including potentially-affected wetlands, lakes and streams. This mitigation planning has been part of the application process for a Clean Water Act Section 404 permit. Other mitigation proposals from Sitka Conservation Society (SCS), USFS and Sitka Tribe of Alaska, and the associated City responses, are in Attachment IV. During the course of mitigation planning, the City has solicited mitigation recommendations from Stakeholders and after review has either included or eliminating these proposals from further consideration. 2.2 Resource-specific impacts and City Response Based on the analyses in the FERC EA, the City has developed a list of unavoidable impacts to which mitigation measures could be applied. Note that not all resources were noted to be significantly impacted by the Project. In many cases, impacts noted in the FERC EA will be addressed by avoidance measures obviating the need for mitigation measures. These cases are noted in the following discussion of impacts and measures for each resource. Resources have been divided into three categories: 1) Those with no impacts and no need for mitigation; 2) resources which may have impacts which will be addressed by avoidance measures; and 3) resources which may have impacts and for which mitigation is proposed. Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 4 2.2.1 Resources with no impacts Fish. The FERC EA did not note significant impacts to fish, either in Blue Lake or in Sawmill Creek. In Blue Lake, rainbow trout were not expected to be impacted by the higher reservoir level (trout would gain in spawning habitat in some inflow tributaries, lose habitat in others, and would have a similar amount in the remainder, resulting in no net change among all areas) or by the reduced rate of reservoir fluctuation relative to the existing condition. Therefore, no avoidance, mitigation or compensation is proposed for fish. 2.2.2 Resources with Impacts Addressed by Avoidance Measures Wildlife. One of the Project's significant impacts would be increased access to Blue Lake if increased boat access from raised water level were not restricted. To avoid this occurrence, the City plans to restrict access to blue lake, particularly for the purpose of launching a boat. This restriction would be achieved by emplacement of a gate, near the current parking lot, past which no vehicles may pass. No specific mitigation measures are proposed at this time because the City believes that the access restriction will avoid wildlife impacts Water Quality. Similar to increased access-related impacts to wildlife, it is expected that water quality might be affected by facilitating easier boat launching and consequent recreation usership. Restrictions in the City's Watershed Control Plan prohibit increased usership, beyond current levels, on Blue Lake because the lake is the City's drinking water supply. Therefore, without access restrictions, lake use could increase violating Control Plan conditions and possibly impacting drinking water quality. As with the plan for wildlife resources, the City believes that restricting access, using the gate, will sufficiently impede access to avoid water quality impacts. 2.2.3 Resources with Impacts Addressed by Mitigation Inundation of 362 acres of National Forest System land around the Blue Lake Creek valley and other areas of the lakeshore. Description of Impacts The most significant unavoidable impact would be permanent loss of the timber, recreation, subsistence, wildlife habitat, and botanical resources around the lake due to raised water levels. All of these land areas are currently within the National Forest System and are under ownership of and management by USFS. (Certain potentially-affected botanical resources, specifically meadow and mudflat vegetative types, are the subject of FERC Article 406). Also included in discussions of the 362 acre inundation were wetlands which would be inundated. A quantitative functional analysis of impacts to wetlands and Waters of the U.S. was performed in consultation with the US Army Corps of Engineers and other Stakeholders. Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 5 Also included in discussions of the 362 acre inundation are the loss of 15.2 acres of wetlands, and 32.7 acres of stream channels (approximately 20,129 linear feet). A quantitative functional analysis of impacts to wetlands and Waters of the U.S. was performed by DOWL HKM dated November 2011. The Corps provided an approved jurisdictional determination of the inundation area on July 5, 2012. City-Proposed Mitigation The City proposes to donate 48 acres of land on Chichagof Island as mitigation for the inundated area. The lands in question, in three parcels known as “Basoiniuer No. 1, Basoiniuer No. 2, and Golden West” on City planning documents, are currently municipal owned lands within the West Chichagof-Yakobi Wilderness Area managed by the USFS Sitka Ranger District. These lands are depicted in Plat 87-32BS, Boundary Line Retracement of MS 1587 and MS 1453 recorded at the Sitka Recording District on December 21, 1987 and will be referred to as the “Boomer lands” in this document. The property will be incorporated in the Wilderness area within 5 years of the time of donation. Mining claims for these properties were staked; MS 1453 (Golden West) was patented as Patent 941732 in 1924 and patent 1087814 was issued to Joseph T. Baur and John Soini in 1936 at which time the property was located in the Sitka mining district. Sitka records indicate that the properties were on the delinquent tax roll and foreclosure list for the tax year 1968. In 1971, as Statutory Warranty Deed was issued to the Borough by the Superior Court of the State of Alaska. In 1984, the City and Borough of Sitka leased the property to Boomer Exploration Inc. Boomer Inc. prospected the property but filed no mineral report. The Boomer prospecting camp was abandoned and the City removed potential hazardous material from the site in the late 1990s. The deteriorated camp and prospecting equipment remain to this day. The non-Wilderness designation of the Boomer property is not consistent with that in the surrounding West Chichagof-Yacobi Wilderness area. It has been suggested by the USFS that the most appropriate use of the property would be to include it in the Wilderness area after certain rehabilitation measures have been performed. The City has in principle agreed to this donation, plus certain actions related to improving the area. The actions currently under discussion are: 1) Donate in fee all ownership rights to the Boomer lands by Warranty Deed to the United States of America and its assigns. The acquiring agency of the United States is the Forest Service, United States Department of Agriculture. Forest Service acceptance of the donation will require review of the title to make sure it meets Department of Justice Title Standards for federal land acquisition. If it does not meet this standard the City agrees to work to remove title conditions and exceptions that are unacceptable to the Forest Service. The Forest Service agrees to inspect the property and complete an Environmental Site Assessment as described in the American Standards for Testing and Materials (ASTM) E-1527- 05, Standard Practice for Environmental Site Assessments: Phase 1 Environmental Site Assessments; and United States Department of Agriculture (USDA) / United States Department of the Interior (DOI) Pre-Acquisition Environmental Assessment Guidance for Federal Land Transactions. The City should make every effort to participate in the inspection. Should Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 6 hazardous material concerns be identified in the Phase 1 report they would need to be addressed to the satisfaction of the Forest Service before a donation could be accepted. 2) Clean up the equipment and buildings left at the exploration site and restore the land to a condition suitable for regrowth by native vegetation. The equipment and buildings are located at the very east end of the property documented by photos. The cleanup will require access to the exploration site via an existing road crossing USFS property. The Forest Service agrees to evaluate in accordance with the Alaska National Interests Land Conservation Act (ANILCA) of 1980 the suitability of the Secretary granting temporary access across Wilderness and the conditions necessary to insure that access is accomplished in a manner that is not inconsistent with the purposes for which the public lands are reserved and which insures that no permanent harm will result to the resources of the area. 3) Quantitatively Inventory the properties for wetlands and conduct wetlands delineation for wetlands on the Boomer property. This delineation will serve as quantitative inventory of wetlands and waters of the United States to be used as total mitigation for impacts on Waters of the United States and wetlands relative to the Blue Lake Project Expansion. The Blue Lake wetlands delineation and functional analysis, including both field and office work has been completed. The City further proposes to mitigate the loss of Waters of the United States located in the inundation area at Blue Lake with the donation of Waters of the United States located on the Boomer property as outlined in the Clean Water Act Section 404 permit application filed with the U.S. Army Corps of Engineers on July 23, 2012. Recreation and Aesthetics, Wildlife Habitat and Botanical Resources Description of Impacts Recreation. Restriction to reservoir access for the purposes of meeting the City's Watershed Control Plan (discussed under wildlife and water quality sections, above) would reduce recreation access for certain recreation elements resulting in no impact relative to access. However, recreational use of the reservoir has decreased in recent years (based on ADF&G harvest records) and ADF&G closed goat hunting in the Blue Lake drainage in 2011 due to over-harvest of females. Surveys conducted by Sitka Conservation Society indicate there is significant recreation in the Blue Lake watershed, particularly in the Blue Lake Creek valley. Fishing in Blue Lake Creek, a high quality sport fishery which will be almost entirely eliminated by the dam raise. This impact is difficult to quantify, but, whatever the use level, it is recognized as significant based the qualities of the fishery and its surrounding environs. Aesthetics. Analyses based on photographic rendering of pre- and with-Project conditions indicated that there would be minimal visual impact of the higher water levels expected after the dam raise. For most of the lake's viewshed, in fact, visual impacts would slightly decrease with the Project because of the lower level of drawdown each year and reduced "bathtub ring" visible from viewpoints near the reservoir access point. But, not removing the timber from the reservoir Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 7 will result in a “bathtub ring of a different nature (because of standing timber) that will remain year around. Visual impacts from the access view point could be similar. Visual impacts in the upper reaches of the lake, however, could be significant based on the current plan to leave the potentially-inundated forests intact after flooding. This would create visual impacts at both high water and low water levels. Subsistence, Wildlife Habitat and Botanical Resources. Impacts to these resources would result from inundation of the 362 acres around Blue Lake and have been documented in the FERC Environmental Assessment (EA). City Proposed Mitigation The City proposes two measures to mitigate for recreation, subsistence, wildlife habitat, botanical resources and aesthetic impacts associated with inundation of the Blue Lake Creek valley. These are: 1) Directly fund a campground host at the Sawmill Creek campground near the FVU. This funding would be set at $10,000 per year for the term of the license paid to the Forest Service as well as absorbing the cost of electrical service to the campground host site and service to the vault toilets. Payment will be made to the Forest Service on an annual basis by January 1 of each year. 2) Directly fund the Redoubt Lake fertilization project in the amount of $10,000.00 per year for 10 years as long as the fertilization project is continued. Payment will be made to the USFS on an annual basis. 2.3 Stakeholder-Requested Mitigation Proposals At meetings held on June 2, 2010, Nov. 5, 2010, May 19, 2011, and July 20, 2012 the City and Stakeholders discussed specific mitigation proposals. After the meetings, some Stakeholders [Sitka Conservation Society (SCS), Sitka Tribe of Alaska (STA) and US Forest Service (USFS)] provided the City with written requests for such proposals (See Attachment II). The proposals were discussed in the July 20 meeting and a consensus reached on the City’s proposal identified in this plan. In all cases the measures recommended in Attachment I were deemed to have been replaced by the measures listed above, specifically: 1. Donation of the Boomer property; 2. Funding of the campground host; and 3. Funding of the Redoubt Lake fish fertilization program for 10 years; 4. Mitigation Escrow Fund. 2.4 Mitigation Escrow Fund Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 8 The City will establish a Mitigation Escrow Fund (MEF) in the amount of $50,000 to be used to address unforeseen impacts. While this measure is not listed among the FERC Articles or USFS 4(e) Conditions, the City has proposed this fund as a way of addressing impacts to any resource which may arise during or after construction. The City will use part of the MEF to mitigate for reservoir access impacts on recreation as suggested by the USFS as a comment on the reservoir access plan dated August 6, 2012 (Attachment V, underlined), as suggested if required. 3.0 Mitigation and Monitoring Effectiveness Evaluation Beginning one year following the initiation of mitigation measures and individual monitoring plans, the City will invite comment from responsible Stakeholders regarding effectiveness of the various plans and measures. To the extent possible, evaluations will be done objectively and quantitatively, recognizing that such outcomes may not be possible in all cases. The purposes of these evaluations will be twofold: First, to evaluate how the plan or measure was implemented during the preceding year. Were the monitoring studies conducted? Were they properly conducted, according to plan specifications? Second, evaluations, after having concluded that the measures and/or studies were properly implemented, would be examined to note how resources were being affected. For example, did the recreation measure to restrict access to Blue Lake succeed in reducing hunting pressure on goats? Has Blue Lake water quality been affected by additional use, or were the access restrictions successful at protecting drinking water quality? Based on its own evaluation methods and input from reviewing Stakeholders, the City will prepare annual mitigation and monitoring reports documenting the status of all measures implemented during the previous year. Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 9 ATTACHMENT 1 USFS Letter of August 2, 2012, Regarding Mitigation Plan File Code: 2770 Date: Christopher Brewton Utility Director City & Borough of Sitka 105 Jarvis Street Sitka, AK 99835 Dear Mr. Brewton: We reviewed the Revised Draft Mitigation and Monitoring Plan, Blue Lake Hydroelectric Project (FERC No. 2230) Expansion, prepared by the City July 25, 2012. Based on this review, we offer the following comments: USFS 1. 2.1 Mitigation Planning Background (first paragraph, last sentence) should read: This mitigation proposal is based on plan A, outlined in the letter. USFS 2. 2.2.3 Resources with Impacts Addressed by Mitigation should read: Inundation of 362 acres of National Forest System lands around the Blue Lake Creek valley and other areas of the lakeshore. USFS 3. City-Proposed Mitigation Below this entire section is presented rewritten as suggested. The City proposes to donate 48 acres of land on Chichagof Island as mitigation for the inundated area. The lands in question, in three parcels known as “Basoiniuer No. 1, Basoiniuer No. 2, and Golden West” on City planning documents, are currently municipal owned lands within the West Chichagof-Yakobi Wilderness Area managed by the USFS Sitka Ranger District. These lands are depicted in Plat 87-32BS, Boundary Line Retracement of MS 1587 and MS 1453 recorded at the Sitka Recording District on December 21, 1987 and will be referred to as the “Boomer lands” in this document. The property will be incorporated in the Wilderness area within 5 years of the time of donation. Mining claims for these properties were staked; MS 1453 (Golden West) was patented as Patent 941732 in 1924 and patent 1087814 was issued to Joseph T. Baur and John Soini in 1936 at which time the property was located in the Sitka mining district. Sitka records indicate that the properties were on the delinquent tax roll and foreclosure list for the tax year 1968. In 1971, as Statutory Warranty Deed was issued to the Borough by the Superior Court of the State of Alaska. In 1984, the City and Borough of Sitka leased the property to Boomer Exploration Inc. Boomer Inc. prospected the property but filed no mineral report. The Boomer prospecting camp was abandoned and the City removed potential hazardous material from the site in the late 1990s. The deteriorated camp and prospecting equipment remain to this day. The non-Wilderness designation of the Boomer property is not consistent with that in the surrounding West Chichagof-Yacobi Wilderness area. It has been suggested by the USFS that Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 10 the most appropriate use of the property would be to include it in the Wilderness area after certain rehabilitation measures have been performed. The City has in principle agreed to this donation, plus certain actions related to improving the area. The actions currently under discussion are: 1) Donate in fee all ownership rights to the Boomer lands by Warranty Deed to the United States of America and its assigns. The acquiring agency of the United States is the Forest Service, United States Department of Agriculture. Forest Service acceptance of the donation will require review of the title to make sure it meets Department of Justice Title Standards for federal land acquisition. If it does not meet this standard the City agrees to work to remove title conditions and exceptions that are unacceptable to the Forest Service. The Forest Service agrees to inspect the property and complete an Environmental Site Assessment as described in the American Standards for Testing and Materials (ASTM) E-1527- 05, Standard Practice for Environmental Site Assessments: Phase 1 Environmental Site Assessments; and United States Department of Agriculture (USDA) / United States Department of the Interior (DOI) Pre-Acquisition Environmental Assessment Guidance for Federal Land Transactions. The City should make every effort to participate in the inspection. Should hazardous material concerns be identified in the Phase 1 report they would need to be addressed to the satisfaction of the Forest Service before a donation could be accepted. 2) Clean up the equipment and buildings left at the exploration site and restore the land to a condition suitable for regrowth by native vegetation. The equipment and buildings are located at the very east end of the property documented by photos. The cleanup will require access to the exploration site via an existing road crossing USFS property. The Forest Service agrees to evaluate in accordance with the Alaska National Interests Land Conservation Act (ANILCA) of 1980 the suitability of the Secretary granting temporary access across Wilderness and the conditions necessary to insure that access is accomplished in a manner that is not inconsistent with the purposes for which the public lands are reserved and which insures that no permanent harm will result to the resources of the area. 3) Quantitatively Inventory the properties for wetlands and conduct wetlands delineation for wetlands on the Boomer property. This delineation will serve as quantitative inventory of wetlands and waters of the United States to be used as total mitigation for impacts on Waters of the United States and wetlands relative to the Blue Lake Project Expansion. The Blue Lake wetlands delineation and functional analysis, including both field and office work has been completed. The City further proposes to mitigate the loss of Waters of the United States located in the inundation area at Blue Lake with the donation of Waters of the United States located on the Boomer property as outlined in the Clean Water Act Section 404 permit application filed with the U.S. Army Corps of Engineers on July 23, 2012. USFS 4. Recreation, Aesthetics, Subsistence, Wildlife Habitat, and Botanical Resources (completion of section title). USFS 5. City Proposed Mitigation Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 11 1) Directly fund a campground host at the Sawmill Creek campground near the FVU. This funding would be set at $10,000 per year for the term of the license paid to the Forest Service as well as absorbing the cost of electrical service to the campground host site and service to the vault toilets. Payment will be made to the Forest Service on an annual basis by January 1 of each year. USFS 6. 2.3 Stakeholder-Requested Mitigation Proposals Delete the duplicate period at the end of the fourth item in the list. USFS 7. 2.4 Mitigation Escrow Fund Remove multiple extra spacing between paragraphs. Sincerely, CAROL A. GOULARTE District Ranger Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 12 ATTACHMENT I, Table 1. Comments summary for USFS comments sent August 2, 2012 Numbered Comment Comment Summary City Response USFS 1 Word changes in Section 2.1. Page 3, Section 2.1, first para. Suggested changes made verbatim. USFS 2 Insertion of language in Section 2.2.3. Page 4, 2.2.3. Suggested changes made verbatim. USFS 3 City Proposed Mitigation, suggested rewrite of section. Page 5, top of page 6. Suggested rewrite incorporated verbatim. USFS 4 Recreation, aesthetics, etc. section title. Page 7, 3rd para. Title revised as suggested. USFS 5 City Proposed Mitigation, language on campground host. Page 7, number 1, first para. Suggested language inserted verbatim. USFS 6 Punctuation changes. Page 7, Section 2.3, number 4. Deleted extra period. USFS 7 Line spacing changes. Page 8, 2.4, last para. Deleted additional spaces. Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 13 ATTACHMENT II Letter from COE regarding Mitigation Plan DEPARTMENT OF THE ARMY U.S. ARMY ENGINEER DISTRICT, ALASKA REGULATORY DIVISION SITKA REGULATORY FIELD OFFICE P.O. BOX 16 SITKA, ALASKA 99835 August 16, 2012 Regulatory Division POA-2012-0441 Dean Orbison City and Borough of Sitka 100 Lincoln Street Sitka, Alaska 99835 Dear Mr. Orbison: This is in response to your request for comments on the Draft Mitigation and Monitoring Plan (Plan) for the Blue Lake Hydroelectric Project proposed by the City and Borough of Sitka (CBS) dated July 24, 2012. It has been assigned number POA-2012-0441, Blue Lake, which should be referred to in all correspondence with us. The project site is located within Section 35, T. 55 S., R. 64 E., Copper River Meridian; USGS Quad Map Sitka A-4; Latitude 57.06232º N., Longitude 135.20033º W.; at the terminus of Forest Road 7577 in Sitka, Alaska. I have the following comments on the draft Plan: 1) Include the following to the title of the document: In response to the United States Army Corps of Engineers authority under Section 404 of the Clean Water Act. Rationale: In accordance with 332.3 (j)(1)General compensatory mitigation requirements, Compensatory mitigation projects for Department of Army (DA) permits may also be used to satisfy the environmental requirements of other programs, as long as the mitigation is used for no more than one permitted activity. 2) Include the following under Section 1.1 Need for this Plan: Additionally, the Plan would address the United States Army Corps of Engineers (Corps) mitigation requirements based on Section 404 authority of the Clean Water Act for the unavoidable impacts to aquatic resources that would result from the proposed project. Rationale: In accordance with 33 CFR Part 325.1(d)(7), “For activities involving discharges of dredged or fill material into waters of the U.S., the applicant must provide a statement describing how impacts to waters of the United States are to be compensated for. COE 1 COE 2 Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 14 3) Include the following under Section 2.2.3 Resources with Impacts Addressed by Mitigation Also included in discussions of the 362 acre inundation are the loss of 15.2 acres of wetlands, and 32.7 acres of stream channels (approximately 20,129 linear feet). A quantitative functional analysis of impacts to wetlands and Waters of the U.S. was performed by DOWL HKM dated November 2011. The Corps provided an approved jurisdictional determination of the inundation area on July 5, 2012. I appreciate the opportunity to comment. If you have any questions you may contact me via email at linda.speerstra@usace.army.mil, by mail at the address above, or by phone at (907) 747-0658 if you have questions. For additional information about our Regulatory Program, visit our web site at www.poa.usace.army.mil/reg. Sincerely, Linda Speerstra Project Manager ATTACHMENT II, Table 1 COE Comment Comment Summary Action on Comment COE 1 Add suggested language in title Language added in title lines COE 2 Add language in Section 1.1 Language added, page, second full paragraph COE 3 Add language to Section 2.2.3 Page 5, Section 2.2.3, first paragraph on page COE 3 Cont. COE 3 Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 15 ATTACHMENT III, USFS Letter of June 13, 2011 Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 16 Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 17 Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 18 ATTACHMENT IV SCS, USFS and STA MITIGATION PROPOSALS and CITY RESPONSES Sitka Conservation Society Mitigation Proposals and City Responses (By Andrew Thoms, Director) Timber (T) SCS T1. First selection of trees and wood products (burls, etc) for use in local Native Education carving programs (STA, NPS, SNEP, etc) 1. City sponsorship (in association with sponsorships and contributions of other entities) of a Tlingit Canoe, carved by local carver Tommy Joseph, that represents the City’s investment in renewable energy/action on climate change and serves as a memorial for the loss of the Blue Lake Forest 2. Use of timber from Blue Lake valley for personal use wood. City Response. It would be possible to highgrade some Yellow Cedar by felling and limbing the trees prior to inundation the limited number of trees could be collected just prior to spill and removed from the reservoir. SCS T2. For the utility grade wood, I think we need to develop the ideas a little bit more on how we are going to put this wood to use. I think that this is a potential opportunity to supply firewood or provide an opportunity for a local business to process this wood (pellets, bricks, packaged cords, etc). However, I think that the City/Forest Service will need to be fairly strategic on how this is done. The wood that comes out could easily flood the market. Or, the wood could be stockpiled to the point that it rots and is un-usable and becomes a liability. SCS would be willing to help work on a plan for figuring out how to best approach this subject. City Response. Utility wood will be left standing or burned in the burn area based on the inundation plan. SCS T3. For the saw logs, I would like to see the city give a premium or incentives for any local processing of this wood. I don’t know what the structure of this would look like but the value of the economic activity and sale-taxes associated with local processing of the wood may be more valuable than the money saved in the timber removal contract for selling the timber. More work needs to be done to figure out how to best utilize this resource for full benefit to Sitka City Response. Saw logs will be left standing or burned in the burn area based on the inundation plan. Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 19 Viewshed (VS) SCS VS1. Upon completion of the project, the upper staging area for dam construction will be converted to a scenic overlook of Blue Lake with interpretive signs that could serve as a potential tourist attraction or focal point for visitors City Response. The 2007 license requires development of an overlook. This suggestion can be incorporated in the overlook. This would be classified as improved recreation. Inundated Habitat (IH) SCS IH 1. Analyze value of habitat to be inundated and set up a mitigation program as per examples/involvement of Corp of Engineers Representative. City Response. This will be addressed in the wetlands study plan. SCS IH 2. The loss of habitat for recreation and subsistence is especially important to my membership. Part of the mitigation for this loss of this habitat should be the commitment by the City to partner with the Forest Service and Trailworks to find a way to bridge the Vodopad River and connect a trail to the Salmon Lake Valley. The City’s contribution would be to at least commit to installing a hiking bridge over the River. City Response. The City is opposed to providing access across the Vodopad River for security and safety reasons. Routing hikers across the dam site or by the switchyard and tailrace is considered a liability. SCS IH 3. For the irreversible loss of habitat in the Blue Lake valley, mitigation compensation should include additional lands transferred to the Tongass National Forest. These could include lands available on the Sitka Ranger District that are available for transfer/sale or the trade of City Lands (especially lands within the West Chichagof Wilderness Area) City Response. "Boomer Properties", 48 acres per city tax roles. This land swap must be discussed in more detail with City staff and USFS. The ultimate decision must be made at the Assembly level. SCS IH 4. TLMP amendment that changes the entirety of the Salmon Lake Valley to a Remote Recreation LUD City Response. This is under the jurisdiction of the USFS, not the City. US Forest Service (USFS) Mitigation Proposals and City Responses Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 20 USFS 1. Stocking Blue, Beaver, Heart, and/or Thimbleberry Lakes with native rainbow trout every X years for the duration of the license City Response. This must be reviewed with ADF&G. The City would prefer to agree to a one time mitigation escrow fund. The fund would mitigate for any impacts discovered during the monitoring address. This would particular request would be classified as mitigation for lost fish habitat at Blue Lake. USFS 2. Enter into an agreement to annually purchase food grade fertilizer to enhance juvenile sockeye production at Redoubt Lake for X years City Response. The City would rather participate in one time mitigation acceptable to all stakeholders. The future of Redoubt is currently in question. USFS 3. Supply and maintain john boats and oars at Blue, Beaver, Heart, and Thimbleberry Lakes City Response. This is recreation mitigation, The city would rather fund a one time project USFS 4. construct a hike-in public recreation cabin along the Blue Lake to Beaver lake route City Response. The City could agree to a cabin at Beaver Lake but not Blue Lake USFS 5. Consideration for the increase in accessibility for goat hunting - we're not sure what type of mitigation to seek but it needs to be considered City Response. The access to Blue Lake will not be increased. Even so the access to goat areas may be improved. The increased access must be reviewed by ADF&G. USFS 6. Provide the money to construct a fishing pier at the Starrigavan Recreation Area City Response. The City needs more specific information to consider this suggestion USFS 6. Provide the money to develop additional improvements at Sandy Beach City Response. This is offsite mitigation and a onetime project that the City believes would provide public benefit. The city could agree USFS 7. Provide the money to have a campground host at Sawmill Creek campground City Response. The City and USFS would mutually benefit from having a Camp Ground host at Sawmill Creek Campground. The city could agree USFS 8. provide firewood at Sawmill Creek campground City Response. The City prefers not to enter into a multiyear service supply agreement Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 21 USFS 9. donation of the X acres the City owns within the West Chichagof-Yakobi Wilderness. The property would have to present no known health/safety/liability problems, (that is hazardous waste contamination, unsafe structures, and the like) that the City is not willing to correct. City Response. This land swap must be discussed in more detail with City staff and USFS. The ultimate decision must be made at the Assembly level. USFS 10. Develop partnerships to find a way to cross the Green Lake Dam outfall City Response. This recommendation is not on National Forest Land. The City is opposed to providing access across the Vodopad River for security and safety reasons. Routing hikers across the dam site or by the switchyard and tailrace is considered a liability. Sitka Tribe of Alaska STA 1. STA staff does not fully support a solely analytical approach to the mitigation process. The staff feel that a social or human aspect in terms of lost or reduced sport or subsistence opportunities should be factored into the mitigation process. STA firmly believes that the mitigation process should not take place between just the city, state, and federal agencies but that it should be a transparent process that is open to the public. The mitigation process should also take into account that the full effects of the project on the aquatic and terrestrial wildlife may not be realized until years after the completion of the project. City Response City Response The entire Blue Lake Amendment process has been open to the public and the public has been encouraged to participate. The Blue Lake Project Expansion provides an overall benefit to all Stakeholders by decreasing environmental impacts. Mitigation should generally not be required for an overall benefit. STA 2. STA supports the partial funding of the Redoubt Lake fertilization project in the amount of $10,000 per year for 10 years as mitigation for the loss of subsistence opportunities caused by the project's impacts. City Response See USFS 2 above Final Mitigation Plan Blue Lake Expansion Project Articles 405 & 406, 4e Condition No. 19 P-2230 22 ATTACHMENT V USFS Comments on of August 6, 2012, on Access Plan File Code: 2770 Date: Christopher Brewton Utilities Director City & Borough of Sitka 105 Jarvis Street Sitka, AK 99835 Dear Mr. Brewton: We have reviewed the Final Reservoir Access Control Plan, Blue Lake Hydroelectric Project (FERC No. 2230) Expansion, prepared by City & Borough of Sitka Electric Department in May, 2012. Base on this review we submit the following comments: This plan presents a wide variety of impacts on recreation access to Blue Lake. Included are gating Blue Lake Road, inundation of standing timber, and three sets of booms. The Forest Service anticipates that the effects on recreation and subsistence access (e.g. angling opportunities, goat hunting) will not be increased or remain static, but be reduced. Reservoir access should be included in the Project Mitigation & Monitoring Plan as another impact that will have to be evaluated in the future and may require use of the City’s mitigation escrow. If you have questions please call Clay Davis at (907) 747-4225 or email clayrdavis@fs.fed.us. Sincerely, CAROL A. GOULARTE District Ranger