Re: Calligan Creek Hydroelectric Project (FERC No. P-13948) - Preliminary Permit Progress Report, No.2

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1 SNOHOMISH COUNTY Providing quality water, power and service at a competitive price that our customers value PUBLIC UTILITY DISTRICT NO.1 March 28,2012 Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street NE Washington, DC E-Filed Dear Secretary Bose: Re: Calligan Creek Hydroelectric Project (FERC No. P-13948) - Preliminary Permit Progress Report, No.2 The Public Utility District No.1 of Snohomish County ("District") respectively submits our second preliminary permit progress report for the Calligan Creek Hydroelectric Project. This report covers activities from October 2012 through March If you have any questions, please do not hesitate to contact me at , or Dawn Presler, Sr. Environmental Coordinator, at or D1Presler@snopud.com. Sincerely, Kim D. Moore, P. Assistant General Manager of Generation, Water and Corporate Services KDMoore@snopud.com Enclosed: cc: PPP Report, No.2 Kelly Wolcott, FERC Distribution List (Service List and Mailing List) 2320 California Street. Everett, WA / Mailing Address: P.O. Box Everett, WA Toll-free in Western Washington at

2 Preliminary Permit 6 Month Progress Report Report No. 2 Per the Commission s Order Issuing Preliminary Permit and Granting Priority to File License Application dated April 8, 2011, term and condition article 4, for the Calligan Creek Hydroelectric Project FERC No. P (Project), the Public Utility District No. 1 of Snohomish County (District) hereby files its first preliminary permit progress report. This report includes activities completed from October 2011 through March The District conducted the following activities: 1. Environmental Studies The District s staff and consultants worked towards completion of the following studies: a. Vegetation Covertype Mapping Covertype mapping consisted of reviewing 2010 and 2011 aerial photos, reviewing past licensing documents, recent field data, and ground truthing fieldwork. A covertype map was developed for estimating potential impacts and inclusion in documents and presentations. The Project is located within an actively managed tree farm and the covertype map will be updated during the licensing process as harvesting activities occur and as practical. b. Critical Areas Report and Vegetation Assessment Herrera Environmental Consultants of Seattle, Washington, conducted field surveys for critical areas (including wetlands, streams, buffers, and wildlife habitat conservation areas), special status plants, and noxious weeds during summer Special status plants and noxious weed surveys will be completed in spring Survey information was also used in updating the covertype maps. A Preliminary Critical Areas Report and Vegetation Assessment was prepared and is being analyzed against the preliminary Project alignment in an effort to avoid and/or minimize impacts. This document was included in the permit package which was created for application for King County Shorelines and Conditional Use permits, as described in #2 and #10 below. A final report will be available once spring studies are completed and the alignment analysis is complete. c. Stream Habitat Survey A final technical memo was sent to Brock Applegate of Washington Department of Fish and Wildlife on March 8, The memo included data from a survey of the stream habitat in proximity to the proposed intake structure and a request for a waiver on the requirement for upstream passage based on that data. Preliminary Permit Progress Report Page 1 No. 2, October 2011 March 2012

3 Calligan Creek Hydro Project (FERC No. P 13948) d. Gaging of Stream Flow Two gages were established in the Calligan Creek, one near the outlet of the lake and one downstream of the springs near the fish population monitoring site. These sites will likely be used for minimum flow compliance once approved as part of the license issued by the FERC. Calibration activities are underway at each site. e. Cultural Resource Survey The final technical report was provided to Hancock Forest Management, King County Historic Preservation Program, Washington Department of Archaeology and Historic Preservation (DHAP), Yakama Nation, Snoqualmie Tribe and Tulalip Tribes on October 28, In its letter dated November 2, 2011, the DAHP concurred that no historic properties affected by the proposed Project. 2. Engineering Analysis and Design The District s consultant (EES Consulting of Kirkland, Washington) continued preliminary design work and analysis to optimize the Project based on topographic and environmental conditions. Design activities were undertaken to support the permit package which was created for application for King County Shorelines and Conditional Use permits. Included in this are Project drawings, conceptual drainage report, level 1 drainage analysis, geohazards report, critical aquifer recharge area report, and completion of the geotechnical report for Calligan Creek. The District is also participating in an aerial photography collection effort led by King County which would gather 2012 base data for the Project area. 3. Interconnection District staff met with Black Creek Hydro, Inc (BCH) (owner of Black Creek Hydroelectric Project FERC NO. 6221) and Puget Sound Energy (PSE) to discuss interconnection coordination. PSE completed a System Impact Study for the Project, and the Facility Study Agreement has been signed. Additional meetings are planned to arrange for use of transmission and communication facilities owned and maintained by BCH and PSE. 4. Draft License Application (DLA) DLA requirements were reviewed, a DLA template was prepared, and information gathering began. 5. Stakeholder Consultation A meeting was held with the administrator for the City of North Bend to discuss the Project. As part of the SEPA process, there was dialogue with the Washington Department of Fish and Wildlife regarding clarification of preliminary design questions. Dialogue (related to access issues, mitigation land and construction easements) with Hancock Forest Management is ongoing. The District continues to update its Project web site with updates as appropriate. Preliminary Permit Progress Report Page 2 No. 2, October 2011 March 2012

4 Calligan Creek Hydro Project (FERC No. P 13948) 6. Joint Meeting/Site Visit Project information was presented and stakeholder questions were answered at the November 3, 2011 joint meeting and site visit. This meeting was located in North Bend, Washington. 7. Stakeholder Comments and Study Requests No stakeholder comments and/or study requests to address information gaps were received by the District by January 2, 2012 (60 days from the joint agency/public meeting date). 8. Tribal Consultation with FERC Conference Calls Participated in a conference call between the FERC and the Tulalip Tribes on January 18, 2012, and between the FERC and the Snoqualmie Tribe on January 30, State Environmental Protection Act (SEPA) Checklist As lead agency for Washington State s environmental review of District activities, an environmental review was conducted by the District and the Washington State SEPA Checklist for the Project along with the Hancock Creek Hydro Project and interconnection location was prepared. The District s SEPA Responsible Official made a mitigated determination of non significance. 10. Shoreline /Conditional Use Permit Application To receive Snohomish County approval for (and therefore viability of) the alternative penstock alignment identified in the Pre Application Document, the District submitted an Application for Shoreline Use and Conditional Use Permit for the Project. As part of this effort, staff met with Snohomish County permitting authorities to discuss Project details and developed numerous documents to support the application. 11. Water Permit A public notice was published on February 9 and 16, 2012 in the Seattle Times for the water permit application (s , 13 cfs). Additionally, staff began working with the Washington Department of Ecology to establish a cost reimbursement agreement to process the application. Preliminary Permit Progress Report Page 3 No. 2, October 2011 March 2012

5 CERTIFICATE OF SERVICE I hereby certify that I have this day served via or via the U.S. Postal Service a copy of the foregoing filing upon each person designated on the official service list compiled by the Secretary in this proceeding in accordance with Rule 2010 of the Rules of Practice and Procedure of the Federal Energy Regulatory Commission. Dated at Everett, Washington, this 28 th day of March, Dawn Presler, Sr. Environmental Coordinator Public Utility District No. 1 of Snohomish County Everett, WA Phone: DJPresler@snopud.com

6 Calligan Creek Service List: Thomas O'Keefe PNW Stewartship Director Indivdual 3537 NE 87th St Seattle, WASHINGTON Kim Moore Assistant General Manager Public Utility District No. 1 of Snohomish County, Washington Everett,WASHINGTON kdmoore@snopud.com Jeffrey Kallstrom Senior Counsel Public Utility District No. 1 of Snohomish County, Washington Everett,WASHINGTON jkallstrom@snopud.com MICHELLE DEMMERT TULALIP TRIBES OF WASHINGTON 6406 Marine Drive Tulalip, WASHINGTON MDEMMERT@TULALIPTRIBES NSN.GOV Brett Swift American Rivers 320 SW Stark Street Suite 412 Portland, OREGON bswift@amrivers.org Rich Bowers HYDROPOWER REFORM COALITION 803 Reveille Rd. Bellingham, WASHINGTON rich@hydroreform.org Dawn Presler Relicensing Specialist Public Utility District No. 1 of Snohomish County, Washington Everett,WASHINGTON djpresler@snopud.com Daryl Brent Williams Environmental Liaison TULALIP TRIBES OF WASHINGTON 6406 Marine Drive Tulalip, WASHINGTON dwilliams@tulaliptribes nsn.gov PUD e Mailing List: mayor@northbendwa.gov mdemmert@tulaliptribes nsn.gov dwilliams@tulaliptribes nsn.gov Okeefe@americanwhitewater.org Rich@hydroreform.org jstangell@hnrg.com bswift@amrivers.org kmiller@tu.org lawrence.j.schick@usace.army.mil brock.applegate@dfw.wa.gov steven.m.fransen@noaa.gov tim_romanski@fws.gov cmay461@ecy.wa.gov mkan461@ecy.wa.gov rob.whitlam@dahp.wa.gov susan_rosebrough@nps.gov jime@rco.wa.gov rgarrow@northbendwa.gov harry.reinert@kingcounty.gov