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HomeMy WebLinkAboutRedelegation Advisement 061411 City and Borough of Sitka Electric Department 105 Jarvis Street Sitka, Alaska 99835 (907) 747-1870, FAX (907)747-3208 chrisb@cityofsitka.com Christopher Brewton, Utility Director June 15, 2011 Mr. Steve Hocking, Chief Environmental Review Branch Division of Hydropower Administration and Compliance Federal Energy Regulatory Commission Washington, DC 20426 Subject: Roadless Rule Resolution, Blue Lake Hydro Project (FERC No. 2230) Expansion Dear Mr. Hocking: This communication describes final resolution of the "Roadless Rule" issues for the Subject Project. As described in the following sections, the City and Borough of Sitka Electric Department ("City") has received a copy of a Decision Memorandum (Attachment I) showing approval of the Secretary of Agriculture ("Secretary") which represents final action on this issue. In the following sections, we describe background information and various actions leading up to this decision. BACKGROUND Roadless Rule issues have arisen from a 2001 US Department of Agriculture Forest Service (USFS) policy designating Inventoried Roadless Areas (IRA's) on USFS lands. Within these IRA's, certain actions, such as road-building, would be prohibited as being inconsistent with the area's roadless character. Among other actions prohibited under the Roadless Rule would be certain aspects of hydroelectric project development including access road construction and timber clearing. The Roadless Rule has affected FERC licensing of several hydroelectric projects in Alaska. CITY ACTIONS The City and Borough of Sitka Electric Department ("City") was directed by Nick Jayjack of your office, dated June 24, 2010, to meet with USFS in Alaska to discuss Roadless Rule issue relative to the Takatz Lake hydroelectric project ("Takatz Project", FERC No. 13234). The City met with representatives from the USFS Sitka Ranger District on September 10, 2010. At that meeting, the City discussed Roadless Rule issues as they pertained to both the Takatz Project (an Roadless Rule Resolution Blue Lake Hydro Project (FERC No. 2230) Page 2 of 5 original licensing for which the City holds a Preliminary Permit) and to the Blue Lake Project Expansion ("Expansion", FERC No. 2230-044) for which the City has submitted a Final Application for a capacity-related amendment to the existing Project license. The Expansion would consist, among other actions, of raising the existing project dam by 83 feet and increasing generating capacity from 6.0 to 15.9 megawatts (MW). Raising the dam would inundate over 360 acres of USFS-managed land, all of which is in an IRA. At the September 10 meeting, USFS representatives said that authority to authorize actions in an IRA had been reserved by the Secretary of Agriculture (Secretary). On a project-by-project basis, the Secretary would consider approving actions and project(s) in the relevant IRA. By letter dated October 21, 2010, the City responded to Mr. Jayjack, explaining the proceedings of the September 10 meeting and the City's current understanding of the Roadless Rule issues as they related to both the Takatz Project and the Expansion In December, 2010, City representatives met in Washington D.C. with Department of Agriculture and USFS representatives to discuss the Roadless Rule restrictions in light of the pressing need to begin construction on the Expansion. It was explained that, while the City wished to resolve Roadless Rule issues for both the Takatz Project and the Expansion, the schedule for the Expansion was more critical because of unexpected Sitka electrical load growth and the need to avoid costly and polluting diesel generation. USDA and USFS in Washington DC (USFS DC) attendees were receptive to the City's presentation and committed to expedite resolution of Roadless Rule issues on the Expansion. USDA/USFS ACTION The City was copied on a Decision Memorandum (DM) dated March 22, 2011 (See Attachment I) from USDA. Signatures on the DM indicated passage of the matter from USFS DC through the Undersecretary of Agriculture to the Secretary of Agriculture, Thomas Vilsack. In the DM, Secretary Vilsack redelegated authority to issue the roadless-related SUA for the Expansion back to USFS in Alaska (USFS Alaska). Secretary Vilsak's initials on the DM were his approval of the redeligation. In the DM, the USFS DC recommended support for the redelegation because: 1) final license amendment decisions and authorizations would be made by FERC acting under the Federal Power Act (FPA) Section 4(e) which would assure inclusion of all USFS recommendations in the amended license; and 2) USFS Alaska, throughout the amendment process, has "has taken all measures available to preserve the character of the roadless area". In the DM, USFS DC went on to give three reasons why the Expansion should go forward: • "Sitka operates an isolated electrical system and is not connected to other communities by an intertie; it generates all of its electrical needs from hydropower. Roadless Rule Resolution Blue Lake Hydro Project (FERC No. 2230) Page 3 of 5 • The enlargement of the dam is necessary to meet the current and future energy needs of Sitka. • The alternative for power generation would be the use of more costly and environmentally harmful diesel powered generators." It is the City's understanding that the re-delegation applies only to the Expansion and does not address roadless-rule issues for the Takatz Lake or any other Alaskan hydro Project. In subsequent discussions between the City and USFS Alaska, the parties have agreed that: 1) The re-delegation represents final Department of Agriculture action on the Expansion; 2) Roadless Rule issues will be addressed through mandatory Terms and Conditions submitted under FPA Section 4(e) and by conditions in the SUA; and 3) All action on License Amendment Terms and Conditions and on conditions in the SUA will be taken by USFS Alaska from the offices of the Regional Forester, the Tongass National Forest Supervisor and the Sitka Ranger District, as appropriate. SCHEDULE The Roadless Rule-related SUA will be issued after FERC issuance of the capacity-related license amendment. Issuance of the roadless-related SUA will not interrupt or extend the existing amendment process schedule. If you have questions or concerns about this summary, don't hesitate to contact me at 907-747- 1870 or via email at chrisb@cityofsitka.com. Thanks for your continued guidance and participation on the Blue Lake Project Expansion. Sincerely, Christopher Brewton Utility Director Roadless Rule Resolution Blue Lake Hydro Project (FERC No. 2230) Page 4 of 5 ATTACHMENT I Roadless Rule Resolution Blue Lake Hydro Project (FERC No. 2230) Page 5 of 5