Draft Initial Study and Proposed Negative Declaration. Redirected Contract PG&E Water from the Miocene Canal to the Thermalito Power Canal

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1 Draft Initial Study and Proposed Negative Declaration for the Redirected Contract PG&E Water from the Miocene Canal to the Thermalito Power Canal Lead Agency: Butte County Department of Water & Resource Conservation Vickie Newlin, Assistant Director 308 Nelson Avenue Oroville, CA (530) Prepared By: 111 Mission Ranch Blvd., Suite 100, Chico, CA P: F: May 2014

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3 Table of Contents Table of Contents Project Description Project Title Lead Agency Contact Project Sponsor Contract Project Location Project Description Environmental Setting Other public agencies whose approval is required... 5 Determination Environmental Checklist Aesthetics Agricultural and Forestry Resources Air Quality Biological Resources Cultural Resources Geology and Soils Greenhouse Gas Emissions Hazards and Hazardous Materials Hydrology and Water Quality Land Use and Planning Mineral Resources Noise Population and Housing Public Services Recreation Traffic and Transportation Utilities and Service Systems Mandatory Findings of Significance Preparers and References Acronyms and Abbreviations Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page i

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5 Project Description 1. Project Title: Redirected Contract PG&E Water from the Miocene Canal to the Thermalito Power Canal 2. Lead Agency Contact: Butte County Department of Water & Resource Conservation Vickie Newlin, Assistant Director 308 Nelson Avenue Oroville, CA (530) Project Sponsor Contact: California Water Service Company, Oroville District Toni Ruggle, District Manager 1905 High Street Oroville CA (530) Project Location: Butte County, CA The proposed project is located in Butte County, California, Figure 1, Project Location. The project involves water that is conveyed down the Upper Miocene Canal to Kunkle Reservoir, the Middle Miocene Canal to Coal Canyon Powerhouse, and Lower Miocene Canal to the Cherokee Reservoir. The Lime Saddle Powerhouse and Pump Station are located on the Middle Miocene Canal. The entire Miocene Canal facility begins at the Miocene Diversion Dam on the West Branch of the Feather River, east of the Magalia community. Magalia is situated approximately two miles north of the Town of Paradise and 20 miles north of the City of Oroville. The West Branch of the Feather River flows into Lake Oroville. Water from Lake Oroville continues into the Thermalito Diversion Pool and is subsequently diverted into the Thermalito Power Canal or the Feather River. Refer to Figure 2, Conveyance Facilities for Contract PG&E Water. 5. Project Description: California Water Service Company (Cal Water) provides water services to 38 communities throughout California. The Cal Water Oroville District incorporated in 1926 and has provided water service to the Oroville community since 1927 (UWMP). The proposed project consists of the Cal Water Oroville District redirecting approximately 3,000 AF of its 33,000 AFY contract Pacific Gas and Electric (PG&E) water from the Miocene Canal to Lake Oroville, into the Thermalito Power Canal, and to the District s Filtration Plant (Water Treatment Plant - WTP. The redirected contract PG&E water will be moved from the Middle Miocene Canal at the Lime Saddle Powerhouse to Lake Oroville via an unnamed channel that extends from Kunkle Reservoir to the Lime Saddle Powerhouse and, subsequently, Lake Oroville. PG&E uses this channel to divert water into the Miocene Canal or from the Powerhouse into Lake Oroville. The portion of the channel from the Powerhouse to Lake Oroville is typically used when ongoing maintenance activities occur on the Miocene Canal. A simplified system schematic of Cal Water s existing and proposed water conveyance for a portion of its contract PG&E water is provided in Figure 3, Existing and Proposed Conveyance Schematic. Although Cal Water will reduce deliveries to the Lower Miocene Canal, Cal Water will meet its contractual obligations to its 12 existing rural irrigation customers. Cal Water will continue to provide sufficient carrier water to accommodate seepage, water loss due to leakage, and evaporation so that each customer is able to receive its contracted amount. Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 1

6 Project Description Butte County, as a State Water Contractor (SWC), will provide wheeling services, for the redirected water to Lake Oroville and the Thermalito Power Canal. Butte County as a SWC is authorized, with the permission of the California Department of Water Resources (DWR), to convey water that is not part of the State Water Project ( non-project water) through the SWP facilities. This conveyance agreement is part of the County s water supply contract with DWR, Therefore, the Butte County Department of Water and Resource Conservation (BCDWRC) is the Lead Agency for this project. 6. Environmental Setting: Water System The Sacramento River basin is composed of three major subbasins: the American River subbasin, the Feather River subbasin, and the Sacramento River subbasin. The Feather River subbasin is composed primarily of the Bear River, Yuba River, and Feather River. The Feather River is considered a major tributary to the Sacramento River. The Feather River watershed upstream of Oroville Dam includes the West Branch, Upper North Fork, Lower North Fork, South Fork, and Middle Fork of the Feather River and ten smaller tributary creeks that drain directly into Lake Oroville. The upper watershed is ruggedly mountainous, bisected by deep canyons in the western third of the watershed. The upper watershed is primarily owned and managed by a variety of federal, state, and local entities, including U.S. Forest Service (USFS), Bureau of Land Management (BLM), California Department of Parks and Recreation (DPR), California Department of Fish and Wildlife (DFW), Butte County, and the City of Oroville. The West Branch, North Fork, South Fork, and Middle Fork Feather River are the primary rivers that form the Lake Oroville reservoir. Downstream of Oroville Dam, the Feather River flows can be diverted into the Thermalito Complex (including the Thermalito Diversion Pool and Power Canal) and the Feather River Fish Hatchery, and used to maintain instream flows in the Low Flow Channel (LFC) of the Feather River. Water that is not diverted from the Thermalito Complex for use in the region is returned to the Feather River approximately 6 miles downstream of Oroville Dam. Lake Oroville, and its associated water conveyance facilities, are owned and operated by DWR and is the principal source of water for the SWP. The Miocene Canal originates at the Miocene Diversion Dam on the West Branch of the Feather River (West Branch) east of the town of Magalia. The Miocene Canal generally parallels the West Branch and flows into Cherokee Reservoir. Refer to Figure 2, Conveyance Facilities for Contract PG&E Water. Surface Water Supply The Cal Water Oroville District obtains a portion of its water supply from the SWP and PG&E. Cal Water has an entitlement to supplies from the SWP through an agreement with Butte County. The Cal Water agreement with Butte County includes a delivery of up to 3,500 AF per year from the SWP. Although this contract has been adjusted through amendments over the life of the contract. The main source of surface water for the Oroville District is a contract with PG&E to receive the outflow of its Lime Saddle and Coal Canyon Powerhouse operations. Cal Water s water supply is diverted into the Miocene Canal to the Cherokee Reservoir. The delivery of water is subject to the time of use of the power generation facility. May 2014 Page 2 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

7 Project Description Both sources of water are treated at the WTPSWP water supply is conveyed through Lake Oroville to the Thermalito Power Canal, where Cal Water pumps its allocation to the WTP via Pump Station 14. PG&E water arrives at the WTP via the Miocene Canal. Surface Water Use Cal Water provides water services to approximately 75 percent of the City of Oroville residents and irrigation customers along the Miocene Canal (Cal Water, 2010 UWMP). Cal Water sells a portion of the water delivered by PG&E to irrigation users south of the Coal Canyon Powerhouse along the Lower Miocene Canal. These raw water deliveries take place along the canal prior to treatment by Cal Water. Historically, up to 12 raw water irrigation customers have been supplied water from the Canal, with irrigation deliveries averaging about 1,300 AFY. Since 2002, the number of raw water irrigation users has decreased, and irrigation usage has averaged about 400 AFY (Cal Water, 2009). Water for municipal and industrial (M&I) use is delivered by gravity from Cherokee Reservoir to the WTP. PG&E supply alone has not historically met the water needs of the Oroville District due to factors such as the power generating schedule at PG&E power plants, planned and unplanned maintenance outages of PG&E facilities, and, lower deliveries in recent, drier years. In the winter, when water demands are low, more PG&E supply is delivered than can be used and excess supply is discharged into Gold Run Creek and Thermalito Power Canal. Of the water delivered by PG&E, Cal Water, on average, treats about 3,000 AFY at the WTP. Miocene Canal The Miocene Canal extends from the Miocene Diversion Dam on the West Branch near Magalia to Cherokee Reservoir near Oroville. The canal is a combination of an earthen ditch system, cobbled tunnels and catwalk-topped metal flumes. The Upper Miocene (9.1-miles long), from the Diversion Dam to the Kunkle Reservoir is owned by PG&E. Water is then diverted through the Lime Saddle Powerhouse into the Middle Miocene Canal (11.2-miles long) to the Coal Canyon Powerhouse. From the Coal Canyon Powerhouse to Cherokee Reservoir, the lower reach of the system is called the Lower Miocene or alternately, Powers Canal, and is owned by Cal Water. Cal Water takes delivery of water downstream of Coal Canyon Powerhouse. The Coal Canyon Powerhouse and Lower Miocene Canal has a capacity of 48 cubic feet per second (cfs) and historically, Cal Water could receive up to this amount in the Lower Miocene, depending on PG&E operations and hydrologic conditions. However, in 2002, a 20-foot section of 20-inch penstock in the Coal Canyon Powerhouse ruptured. PG&E installed a temporary bypass, routing water from the Middle Miocene Canal to Gold Run Creek, and then diverting it back to the Lower Miocene Canal. Portions of the Miocene Canal are in need of repair and a substantial amount of water is lost from the system during transit. The losses are due to a combination of factors, including leakage. Losses in excess of delivery commitments along the canal are estimated to be approximately 7,000 AFY (MBK Engineers, 2008). Cal Water and PG&E have established a framework for making repairs on the Miocene Canal, and thus improve the reliability of PG&E water supply to the District. Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 3

8 Project Description Lake Oroville Lake Oroville stores and releases water that flows into the reservoir from upstream reservoir releases and runoff within the watershed. Lake Oroville is part of the SWP Oroville Facilities and consists of a water storage and delivery system of reservoirs, aqueducts, power plants, and pumping plants. As part of the SWP, the Oroville Facilities are also operated for flood management, power generation, water quality improvement, recreation, and fish and wildlife enhancement (DWR, 2007). Oroville Dam, along with two small saddle dams, impounds Lake Oroville, which has a 3.5-million AF capacity storage reservoir with a surface area of 15,810 acres at its normal maximum operating level. DWR stores winter and spring runoff in Lake Oroville for release to the Feather River, as necessary, to meet downstream demands (DWR, 2007). Water is released from the Oroville Facilities as part of a coordinated effort which is highly dependent on constraints placed upon the SWP. The Oroville Facilities operational planning is performed by DWR s Operations Control Office (OCO). The day-to-day operation of the Oroville Facilities is handled through the Oroville Field Division. Operations plans are developed on a weekly basis to meet the overall annual operational objectives. Daily schedules are subsequently developed to meet the weekly operational objectives and are adjusted in real-time as needed to respond to changes in conditions (DWR, 2007). Thermalito Power Canal The Thermalito Diversion Dam is located on the Feather River, about 4.5 miles downstream from Oroville Dam. The Thermalito Pool is the area between the Oroville Dam and the Diversion Dam. The Thermalito Power Canal extends from the Thermalito Diversion Dam to the Thermalito Forebay. The Diversion Dam diverts water into the Thermalito Power Canal. Water is conveyed between the Thermalito Diversion Dam and Thermalito Forebay for pumping and power generation at PG&E facilities and delivery for agricultural irrigation within the region. Pump Station 14 Cal Water s Pump Station 14 is located on the south side of the Thermalito Power Canal, where Cherokee Road crosses the Canal. Pump Station 14 pumps water from the Thermalito Power Canal to the WTP. The WTP is located approximately 0.5 miles south of the Canal. In 2008, Cal Water expanded the intake pump at Station 14 to allow for increased use of Station 14 because of ongoing changes in water deliveries from PG&E. Station 14 consists of a 2,800 gallons per minute (gpm) intake pump, a new 5,000 gpm intake pump, a new diesel generator for emergency power back-up, and fencing that secures the entire site. Water Treatment Plant Surface water is treated at a rate of 7.0 million gallons per day (mgd) at the Cal Water Oroville Filtration Plant or Water Treatment Plant. The WTP is a conventional treatment plant consisting of sedimentation basins and a gravity multi-media filtration system. Treated water from the multimedia filters enters a sump where four pumps deliver water to the 450,000 gallon reservoir at Cal Water Station 15. From the Station 15 reservoir, supply is gravity fed to Cal Water customers (Cal Water, 2009). May 2014 Page 4 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

9 Project Description 7. Other public agencies whose approval is required: California Department of Water Resources (DWR); DWR is responsible for the management of SWP Facilities, and would approve the use of the SWP Facilities for the redirected water per Butte County s SWC water supply agreement. Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 5

10 Project Description Page intentionally left blank. May 2014 Page 6 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

11 ! Sacramento! Carson City San Francisco!! San Jose! Fresno MAGALIA CHICO PARADISE OROVILLE BIGGS GRIDLEY Legend Project Area Lakes and Resevoirs Major Streams County Boundary City/Town Limits inch = 7 miles (printed at 8.5 x 11) Map Date: 14 May 2014 Miles!I Drawn By: CJW Data Source: Butte County GIS NSE Project # Figure 1: Project Location Redirected Contract PG&E Water NorthStar Engineering

12 Project Description Figure 1 (back) May 2014 Page 8 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

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14 Project Description Figure 2 (back) May 2014 Page 10 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

15 West Branch Feather River Upper Miocene Canal Miocene Diversion Dam Kunkle Reservoir West Branch Feather River Middle Miocene Canal Lime Saddle Powerhouse Unnamed Channel Coal Canyon Powerhouse Lime Saddle Marina Lake Oroville Lower Miocene Canal Irrigation Users Cal Water WTP Cherokee Reservoir Thermalito Power Canal Pump Station 14 Thermalito Power Canal Feather River Legend Existing Water Route Water Body Map Date: 14 May 2014 Data Source: Cal Water / PG&E Figure 3: Existing & Proposed Conveyance Schematic Redirected Contract PG&E Water Proposed Water Route Natural Waterway Facility NSE Project # Drawn By: CJW NorthStar Engineering

16 Project Description Figure 3 (back) May 2014 Page 12 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

17 Determination Environmental Factors Potentially Affected The environmental factors checked below could be potentially affected by this project; however, with the incorporation of mitigation measures, potentially significant impacts are reduced to less than significant level by the project (CEQA Guidelines Section 15382). Aesthetics Agricultural/Forestry Resources Air Quality Biological Resources Cultural Resources Geology/Soils Greenhouse Gas Emissions Hazards/Hazardous Materials Hydrology/Water Quality Land Use/Planning Mineral Resources Noise Population & Housing Public Services Recreation Transportation/Traffic Utilities/Service Systems Mandatory Findings of Significance Determination: On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a potentially significant impact or potentially significant unless mitigated impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. May 19, 2014 Kamie Loeser, Senior Environmental Planner, Preparer NorthStar Engineering Date Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 13

18 Determination Evaluation of Environmental Impacts: 1) A brief explanation is required for all answers except No Impact answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A No Impact answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g., the project falls outside a fault rupture zone). A No Impact answer should be explained where it is based on project-specific factors as well as general standards, (e.g., the project will not expose sensitive receptors to pollutants based on a project-specific screening analysis.) 2) All answers must take account of the whole action involved including off-site as well as on-site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts. 3) Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. Potentially Impact is appropriate if there is substantial evidence that an effect may be significant. If there are one or more Potentially Impact entries when the determination is made, an EIR is required. 4) Negative Declaration: With Incorporated applies where the incorporation of mitigation measures has reduced an effect from Potentially Impact to a Impact. The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section VII, Earlier Analyses, may be cross-referenced). 5) Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case, a brief discussion should identify the following: a) Earlier Analysis Used: Identify and state where they are available for review. b) Impacts Adequately Addressed: Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Measures: For effects that are with Measures Incorporated, describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g., general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 8) The explanation of each issue should identify: a) The significance criteria or threshold, if any, used to evaluate each question; and b) The mitigation measure identified, if any, to reduce the impact to less than significant. May 2014 Page 14 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

19 Environmental Checklist 1. Aesthetics Would the project: a) Have a substantial adverse effect on a scenic vista? Potentially with No Impact b) Substantially damage scenic resources within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site/surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? Discussion a d) No Impact: The proposed project would redirect approximately 3,000 AF of Cal Water s contracted PG&E water through existing PG&E, Cal Water, and SWP conveyance and storage facilities. There would be no construction activities or expansion of facilities with implementation of the proposed project. Therefore, there would be no change to scenic resources or scenic vistas. There would be no change to the existing visual character of the region. The project would not create new light sources. None Required. 2. Agricultural and Forestry Resources Would the project: Potentially with No Impact a) Convert Farmland (Prime, Unique or of Statewide Importance) pursuant to the Farmland Mapping and Monitoring Program of the CA Resources Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 1220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 15

20 Environmental Checklist d) Result in the loss of forest land or conversion of forest land to non-forest use? e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? Discussion a e) No Impact: The redirected water would not result in construction activities that would convert farmland or forest land to a non-agricultural or non-forest use. The project would not cause changes in zoning or general plan land use designations within the project area that would contribute to conversions of agricultural or forest land. Cal Water would continue to provide its contracted water amounts to the 12 irrigation customers that receive water from the Lower Miocene Canal. Therefore, there would be no change to agricultural uses or loss of forest land due to the proposed project. None Required. 3. Air Quality Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? Potentially with No Impact b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including emissions that exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? Discussion a e) No Impact: The proposed redirection of water would not conflict with the implementation of any air quality attainment plans, as there would be no construction activities associated with project implementation. The project is a change in where a portion of Cal Water s contracted PG&E water is conveyed in the Miocene Canal. This change would use the existing PG&E, Cal Water and May 2014 Page 16 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

21 Environmental Checklist SWP system. The proposed project would not violate or contribute to a violation of any air quality standard, it would not result in a cumulatively considerable net increase of any criteria pollutants, nor would it expose any sensitive receptors to pollutants or create objectionable odors. Greenhouse Gas Emissions are evaluated in Section 7 below. None Required. 4. Biological Resources Would the project: Potentially With No Impact a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? c) Have a substantial adverse effect on protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? Discussion a) No Impact. The proposed project would redirect a portion of Cal Water s contracted PG&E water from the Miocene Canal to Lake Oroville into the Thermalito Power Canal. The project would Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 17

22 Environmental Checklist not result in a direct or indirect impact on habitat or modification to habitat that would affect any candidate, sensitive or special status species. The project will utilize existing PG&E, Cal Water and SWP water conveyance facilities. Water from the West Branch will continue to be directed into the Miocene Canal at the Miocene Diversion Dam near Magalia. A portion of the contracted amount will be redirected from the Middle Miocene Canal at the Lime Saddle Powerhouse into Lake Oroville, moved into the Thermalito Power Canal and pumped to the WTP. Habitat adjacent to the conveyance facilities, including riparian habitat, wetlands and Waters of the U.S. would not be altered as a result of the redirection of water. b c) No Impact: The proposed redirection of contracted PG&E water will not have a substantial impact on riparian or other sensitive habits, including wetlands, as the project proposes to use existing PG&E, Cal Water, and SWP conveyance and storage facilities. Refer to discussion under Item a) above. d) No Impact. The project will not interfere with the movement of any native resident or migratory fish or wildlife species, or with established native resident or migratory corridors. The project will not impede the use of native wildlife nursery sites. The proposed project will use existing PG&E, Cal Water, and SWP facilities that have been constructed for water conveyance. The project does not propose any changes to the operations of the SWP and Lake Oroville. The SWP Oroville Facilities will continue to be operated for flood management, power generation, water quality improvement, recreation, and fish and wildlife enhancement. e f) No Impact. The proposed project would not conflict with any local, regional, or state policy, ordinance or conservation plan in effect for the area. While some of the project facilities are located within the boundaries of the proposed Butte County Regional Conservation Plan (BCRCP, the redirection of water through the existing PG&E, Cal Water and SWP conveyance and storage facilities would not conflict with the provisions of the Draft BCRCP. None Required. 5. Cultural Resources Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in California Code of Regulations, Section ? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to CA Code of Regulations, ? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside of formal cemeteries? Potentially With No Impact May 2014 Page 18 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

23 Environmental Checklist Discussion a d) No Impact. The proposed project does not involve any land alteration or structural modifications to existing PG&E, Cal Water and SWP facilities. Therefore, there are no impacts or alterations to potential historical resources, as defined by the California Code of Regulations. In addition, the project would not impact archeological or paleontological resources, as disturbances, typically associated with construction activities, are not proposed. In addition, because the project does not include ground disturbing activities, there would be no disturbances to potential burial sites or cemeteries. The proposed project would not lower Lake Oroville, and thus would not impact the baseline condition. None Required. 6. Geology and Soils Would the project: Potentially With No Impact a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i.) Rupture of a known earthquake fault, as delineated on the Alquist-Priolo Earthquake Fault Zoning Map for the area or based on other substantial evidence of a known fault? ii.) Strong seismic ground shaking? iii.) Seismic-related ground failure/liquefaction? iv.) Landslides? b) Substantial soil erosion or the loss of topsoil? c) Located on a geologic unit or soil that is unstable, or would become unstable as a result of the project, and potentially result in landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 19

24 Environmental Checklist Discussion a d) No Impact. The proposed project, would redirect a portion of Cal Water s contracted PG&E water within existing PG&E, Cal Water and SWP facilities. The proposed project does not involve the construction of new or expanded facilities. The implementation of the project would not change or increase the exposure of people or structures to potential risk of loss, injury, or death involving rupture of a known earthquake fault, strong seismic ground shaking, ground failure, liquefaction, subsidence, lateral spreading or landslides. Therefore, no impact associated with geology and soils would occur with project implementation. e) No Impact. The proposed project would not involve the use of septic tanks or alternative wastewater treatment disposal systems to handle wastewater generation. No impacts would result with implementation of the project. None Required. 7. Greenhouse Gas Emissions Would the project: a) Generate greenhouse gas emissions, directly or indirectly, that may have a significant impact on the environment? Potentially With No Impact b) Conflict with any applicable plan, policy or regulation of an agency adopted for the purpose of reducing the emissions of greenhouse gases? Discussion a) Less than. The proposed project would use existing PG&E, Cal Water and SWP facilities to redirect a portion of Cal Water s contracted PG&E water. The use of Pump Station 14 would increase to its anticipated capacity in order to move the redirected water from the Thermalito Power Canal to the WTP. In 2008, Pump Station 14 was improved to add a new 5,000 gpm intake pump and new diesel generator for emergency power back-up. The purpose of the improvements was to allow Cal Water to meet its supply and demand needs. Due to shutdowns and maintenance problems at the Coal Canyon Powerhouse, Cal Water has had to increase its reliance on Station 14 for supply out of Thermalito Canal to make up the difference in loss of water deliveries from PG&E and the Miocene Canal. Because the contracted PG&E water will be redirected from the Middle Miocene Canal to Lake Oroville and subsequently the Thermalito Power Canal, the change or increase in water pulled from the Power Canal would be similar to or slightly increased from current amounts. The amount of water purchased from PG&E and the SWP and supplied to Oroville customers would remain the same. Therefore, the increase in energy consumption, and associated increase in greenhouse gasses, would have a less than significant impact on the environment. May 2014 Page 20 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

25 Environmental Checklist b) No Impact. Refer to discussion under Item a) above. The proposed project would not conflict with any plan, policy or regulation adopted for the purpose of reducing greenhouse gas emissions. None Required. 8. Hazards and Hazardous Materials Would the project: Potentially With No Impact a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 21

26 Environmental Checklist Discussion a h) No Impact. The proposed project would not involve the transport or use of hazardous materials nor change or increase any public exposure to hazards or hazardous materials. There would be no hazardous impacts with project implementation. None Required. 9. Hydrology and Water Quality Would the project: Potentially With No Impact a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation onor off-site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding onor off-site? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise degrade water quality? May 2014 Page 22 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

27 Environmental Checklist Would the project: g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? Potentially With j) Inundation by seiche, tsunami, or mudflow? No Impact Discussion a) No Impact. The proposed project would redirect a portion of Cal Water s contracted PG&E water. The redirected water will continue to use existing PG&E and Cal Water conveyance facilities. The water currently enters the PG&E and Cal Water system from the West Branch at the Miocene Diversion Dam near Magalia. The redirected water will continue to use the Miocene Canal. South of Kunkle Reservoir, at the Lime Saddle Powerhouse, approximately 3,000 AF of contracted water will be redirected via an unnamed channel that extends from Kunkle Reservoir to the Lime Saddle Powerhouse and, subsequently, Lake Oroville. PG&E uses this channel to divert water into the Miocene Canal or from the Powerhouse into Lake Oroville. The portion of the channel from the Powerhouse to Lake Oroville is typically used when ongoing maintenance activities occur on Miocene Canal. Because Butte County is a State Water Contractor, the County is providing wheeling services through the Lake Oroville SWP facility. The project would not involve any discharge that would violate water quality standards or waste discharge requirements. The redirected water would be conveyed under normal operations and restrictions of PG&E, Cal Water and SWP, so that water quality standards are maintained. No impacts to water quality standards would occur with project implementation. b) No Impact. The proposed project would not extract groundwater nor deplete groundwater supplies. The project would not interfere with groundwater recharge and would not result in a net deficit in aquifer volume or lowering of local groundwater table levels. c d) No Impact. The redirected water would use existing PG&E, Cal Water and SWP facilities and would not alter the existing drainage pattern of a site, area, or stream or river. The change in conveyance would occur under normal operations and restrictions of PG&E, Cal Water and SWP. No substantial erosion siltation or flooding on- or off-site would occur as a result of this project. In addition, there are no construction activities associated with the proposed project. Therefore, no impacts related to water drainage patterns would occur with project implementation. e) No Impact. The proposed project would not create or contribute to runoff water thereby exceeding the capacity of existing or planned storm water drainage systems (refer to the discussion Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 23

28 Environmental Checklist under Item c-d) above). Therefore, no impacts relating to storm water drainage systems would occur with project implementation. f) No Impact. The proposed project would ultimately improve over-all water quality for Cal Water customers. Refer to the discussion under Item a), above. The redirected water would be conveyed under normal operations and restrictions of the PG&E, Cal Water and SWP. These facilities are operated for flood management, power generation, water quality improvement, recreation, and fish and wildlife enhancement. No impact to water quality would occur with project implementation. g i) No Impact. The proposed project would not involve the construction of housing. The project would use existing PG&E, Cal Water and SWP conveyance and storage facilities, which were constructed to standard engineering design practices to limit the potential for exposure of people or property to water-related hazards, such as flooding. In addition, the timing of and proposed water conveyance would occur within the regulatory parameters for the SWP as well as operation restrictions placed on PG&E and Cal Water. The proposed project would not expose people or property to water-related hazards such as flooding or impede or redirect flood flows. j) No Impact. Implementation of the proposed project would not expose people, structures or associated facilities to inundation of seiche, tsunami, or mudflow. No impacts would result from project implementation with respect to tsunamis, seiches, or mudslides. None Required. 10. Land Use and Planning Would the project: Potentially With a) Physically divide an established community? b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan? Discussion No Impact a) No Impact. The proposed project would not displace or divide an established community, as no new construction activities would occur with project implementation. The project proposes to use existing PG&E, Cal Water and SWP water conveyance and storage facilities. May 2014 Page 24 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

29 Environmental Checklist b) No Impact. The proposed project does not conflict with any applicable plan, policy or regulation of local or state responsible agencies. The propose project would be subject to the operational requirements and restrictions that have been placed on PG&E, Cal Water and SWP that have been put in place for flood management, power generation, water quality improvement, recreation, and fish and wildlife enhancement. c) No Impact. The proposed project would not conflict with any applicable habitat conservation plan or natural community conservation plan. While some of the project facilities are located within the boundaries of the proposed Butte County Regional Conservation Plan (BCRCP), the redirection of water through the existing PG&E, Cal Water and SWP conveyance and storage facilities would not conflict with the provisions of the Draft BCRCP. None Required. 11. Mineral Resources Would the project: Potentially With No Impact a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locallyimportant mineral resource recovery site on a local general plan, specific plan or other land use plan? Discussion a b) No Impact. The implementation of the proposed project would not result in the loss of availability of a known mineral resource or locally-important mineral resource that would be of future value to the region and residents of the State. No impacts to mineral resources would occur with the proposed water transfer. None Required. Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 25

30 Environmental Checklist 12. Noise Would the project: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? Potentially With No Impact Discussion a f) No Impact. The proposed project does not involve the development or enhancement of any new noise emitting sources. In addition, the proposed project, would redirect a portion of Cal Water s contracted PG&E water and would rely on existing PG&E, Cal Water and SWP conveyance and storage facilities. There are no construction activities associated with the proposed project. No noise impacts would result with project implementation. None Required. May 2014 Page 26 Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal Initial Study/Negative Declaration

31 Environmental Checklist 13. Population and Housing Would the project: Potentially With No Impact a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? Discussion a c) No Impact. The proposed project would rediect a portion of Cal Water s contracted PG&E water and does not result in an increase in water supply. The project would rely on existing PG&E, Cal Water and SWP conveyance and storage facilities and would not remove obstacles to growth, nor be considered growth inducing as it does not result in an expansion of facilities or infrastructure. Cal Water would continue to provide its contracted amount to the 12 rural irrigation customers that draw water from the Lower Miocene Canal. In addition, no housing would be constructed, demolished or replaced as a result of the proposed project. The project would not result in displacement of people and no substantial population growth would result. Therefore, no impacts to housing or population distribution would occur as a result of the proposed project. None Required. 14. Public Services Would the project: result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Potentially With No Impact a) Fire protection? b) Police protection? c) Schools? Redirected Contract PG&E Water from the Miocene Canal to Thermalito Power Canal May 2014 Initial Study/Negative Declaration Page 27