REVISED NOTICE OF PREPARATION OF A DRAFT ENVIRONMENTAL IMPACT REPORT (STATE CLEARINGHOUSE NO )

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1 REVISED NOTICE OF PREPARATION OF A DRAFT ENVIRONMENTAL IMPACT REPORT (STATE CLEARINGHOUSE NO ) Date: January 6, 2017 To: Agencies and Interested Parties From: Sacramento Municipal Utility District Subject: Revised Notice of Preparation of a Draft Environmental Impact Statement and Environmental Impact Report for the Colusa- Transmission Line Project Changes to the Project Description Review Period: January 6, 2017 to March 7, 2017 Introduction: Pursuant to the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA), the Sacramento Municipal Utility District (SMUD) and Western Area Power Administration (WAPA) will hold an additional 60-day public scoping period for a joint Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for the Colusa- (CoSu) Transmission Line Project. The proposed 500-kilovolt (kv) line would provide a new link between the existing California-Oregon Transmission Project (COTP) line on the west side of the Sacramento Valley and SMUD s and WAPA s transmission facilities on the east side of the Sacramento Valley. The joint EIS/EIR will examine potentially significant environmental impacts of the construction and operation of the proposed new CoSu Line Project and SMUD s action to fund the proposed project. This Notice of Preparation (NOP) starts a public scoping period that will assist in the preparation of a Draft EIS/EIR. The public scoping period is for 60 days and will run from January 6, 2017, to March 7, The purpose of the NOP is to provide sufficient information about the revised proposed project and its environmental impacts to allow agencies and the interested parties the opportunity to provide a meaningful response related to the scope and content of the EIS/EIR, including possible environmental impacts, mitigation measures and alternatives. In response to public and agency comments received during the first public scoping period, WAPA and SMUD developed an additional corridor study area, located in Yolo and Sacramento Counties and modified the previously scoped study areas, as described below (Project Description Summary).

2 Previous Notice of Preparation: On December 18, 2015, SMUD issued the original NOP to agencies and interested parties that a joint EIS/EIR would be prepared for the above-referenced project. On January 29, 2016, SMUD issued a revised NOP in order to announce two additional scoping meetings and extending the public scoping period to April 18, At the time of the December 2015 and January 2016 NOPs, the proposed project consisted of building 27 to 44 miles of new transmission lines and two substations located within one of two study corridors (Northern and Southern) in Colusa and counties. The Northern Route also included one segment alternative (Segment 1) to minimize impacts near a wildlife refuge. Background Information: WAPA annually markets and transmits more than 25,000 gigawatt-hours of clean, renewable power from 56 hydroelectric powerplants owned and operated by the U.S. Bureau of Reclamation and U.S. Army Corps of Engineers in 15 central and western states, including California. WAPA also owns, operates and maintains a more than 17,000 circuitmile, high-voltage transmission system in its service territory. It is part of the U.S. Department of Energy. SMUD is the primary distributor of electric power within an area of approximately 900 square miles in Sacramento County and a portion of Placer County, serving over 624,000 electric customers. SMUD owns and operates an integrated electric system that includes transmission, distribution and generation facilities. SMUD is a member of the Transmission Agency of Northern California, which holds significant entitlements to obtain energy through the COTP. To date, SMUD has secured transmission service with WAPA through long-term service agreements. The CoSu project would give SMUD 700 MW of bi-directional transmission capacity with direct access to the COTP for a minimum of 40 years. It would also allow demand to be reliably served at lower internal generation requirements, reducing carbon emissions from SMUD s natural gas generation facilities. SMUD submitted a transmission service request to WAPA under WAPA s Open Access Transmission Tariff for service between the COTP and SMUD s transmission system. WAPA s existing facilities do not have enough capacity to meet SMUD s need for increased service so the CoSu Line is being proposed as a solution to meet this need. WAPA will prepare the joint EIS/EIR with SMUD as the lead State agency for CEQA and WAPA as the lead Federal agency under NEPA. WAPA would build the Project as allowed by law pursuant to the Acts of Congress approved June 17, 1902 (32 Stat. 388); August 26, 1937 (50 Stat. 844, 850); August 4, 1939 (53 Stat. 1187); and August 4, 1977 (91 Stat. 565); as supplemented and amended.

3 The CoSu Project would provide SMUD access to existing renewable resources in the Pacific Northwest and other energy markets, improve local and regional reliability, and assist SMUD in planning for anticipated load growth. In addition, the CoSu Project would improve the network transmission infrastructure and import/export capability for the Sacramento area and ensure the continued safe and reliable operation of the regional transmission system. Project Description Summary: The proposed CoSu Line Project would provide a new 500-kV link between the existing COTP line on the west side of the Sacramento Valley and SMUD s and WAPA s transmission facilities on the east side of the Sacramento Valley. As part of the environmental review process, WAPA and SMUD will examine several different alternatives. These alternatives would include constructing and operating up to 44 miles of new transmission lines and two new substations. For this revised NOP, WAPA and SMUD are currently considering and reviewing three study area corridors and two segment alternatives, in which the CoSu Line could be located, in Colusa and or in Yolo and Sacramento counties (see attached figures). The originally-proposed and new corridor study areas for the revised NOP are described below: Northern Corridor Study Area: This previously scoped proposed study area is approximately 44 miles long and would be constructed adjacent to WAPA s existing 230-kV Olinda-O Banion and Keswick-O Banion double circuit transmission lines. This new line would connect the existing COTP transmission line near the existing COTP s Maxwell Series Compensation Substation in Maxwell to WAPA s CVP transmission system near the existing WAPA O Banion Substation in County. Two new substations would be built within this study area one near the Maxwell Series Compensation Substation and another adjacent to the O Banion Substation. Southern Corridor Study Area This previously scoped study area is approximately 27 miles long. The new transmission line would connect to the existing COTP transmission line system approximately eight miles northwest of Arbuckle in Colusa County and continue east toward WAPA s existing O Banion Substation in County. Two new substations would be built within this study area one adjacent to the existing COTP transmission line northwest of Arbuckle and another adjacent to the O Banion Substation. Segment 1 Study Area This previously scoped segment study area is approximately nine miles long and would provide an alternate north-to-south route for the Northern Corridor. It would be located

4 immediately west of the existing O Banion Substation. Instead of following WAPA s existing 230-kV Olinda-O Banion and Keswick-O Banion double circuit transmission lines to the O Banion Substation, this segment would extend south, at a location approximately 30 miles from the Maxwell Series Compensation Substation, and then continue east to connect to the O Banion Substation. Under this segment alternative, the new line would be located farther away from the National Wildlife Refuge. County Road 16 Corridor Study Area (New) This is a new proposed study area approximately 27 miles long. The new transmission line would connect to the existing COTP transmission line system approximately 8 miles west of the community of Dufour, Yolo County, California and continue east toward the existing Elverta Substation in northwestern Sacramento County. The County Road 16 Corridor would also require the construction of an additional substation adjacent to the existing COTP transmission line northwest of Dufour and an additional substation adjacent to the Elverta Substation. Segment 2 Study Area (New) This segment is an alternate west-to-east route for the County Road 16 Corridor. Nine miles long, this segment would extend north in a loop-like fashion, at a location approximately 2.5 miles north of the Sacramento International Airport, and then rejoin the County Road 16 Corridor as it continues due east to connect to the Elverta Substation. Under this segment alternative, the new line would be located farther away from the Sacramento International Airport to increase clearance of transmission structures for airplanes. WAPA and SMUD will consider a No Action/No Project Alternative in the EIS/EIR. Under the No Action/No Project Alternative, WAPA would not construct the proposed CoSu Line Project and the environmental impacts associated with construction and operation would not occur. The No Action Alternative will also form the baseline against which the potential impacts of the CoSu Line Project and other project alternatives will be compared. Potential Environmental Effects: The joint EIS/EIR will analyze resources that could be affected by the project, including but not limited to the following: Impacts on protected, threatened, endangered, or sensitive species of animals or plants; Impacts on migratory birds; Introduction of noxious weeds, invasive and non-native species; Impacts on recreation and transportation; Impacts on land use, wilderness, farmlands, and environmentally-sensitive areas; Impacts on cultural or historic resources and tribal values;

5 Impacts on human health and safety; Impacts on air, soil, and water resources (including air quality and surface water impacts); Visual impacts; and Socioeconomic impacts and disproportionately high and adverse impacts to minority and low-income populations (i.e., environmental justice). This list is not intended to be all-inclusive or to imply any predetermination of impacts. WAPA and SMUD invite interested parties to suggest specific issues within these general categories, or other issues not included above, to be considered in the joint EIS/EIR. Public Participation: The EIS/EIR process includes a public scoping period; public scoping meetings; publication and public review of the Draft EIS/EIR; publication of a Final EIS/EIR; and publication of a Record of Decision and filing of a Notice of Determination. WAPA and SMUD are conducting a 60-day public scoping period, from Friday, January 6, 2017 to Tuesday, March 7, 2017, to take public comments on the scope of issues to consider in the Draft EIS/EIR. Six public meetings are scheduled in January and February 2017 to provide information about the proposed project and to receive public comments. The meetings will be an open-house format, where members of the public can talk with project representatives, review project information, and submit verbal or written public comments. No formal presentations will be given. Public Scoping Meetings SUTTER COUNTY Tuesday, Jan. 24, 2017 COLUSA COUNTY SACRAMENTO COUNTY Thursday, Jan. 26, Tuesday, Jan. 31, :00 8:00 p.m. 5:00 8:00 p.m. 9:00a.m 12:00 p.m. 5:00 8:00 p.m. YOLO COUNTY Thursday, Feb. 2, :00 a.m. 12:00 p.m. 5:00 8:00 p.m. Youth Organization Center 7740 Butte House Road,, CA Colusa Casino Resort 3770 California 45 Colusa, CA Haggin Grant American Legion Post th Street Rio Linda CA Woodland Community and Senior Center 2001 East Street Woodland, CA If you require special assistance during the public scoping meeting, please contact us at info@cosuline.com at least 72 hours before the meeting.

6 Public comments on the scope of the Draft EIS/EIR will be accepted from Friday, January 6, 2017 to Tuesday, March 7, Comments can be submitted in the following ways: Mail (must be postmarked on or before March 7, 2017): Mr. Andrew M. Montaño National Environmental Policy Act (NEPA) Document Manager Western Area Power Administration, Headquarters P.O. Box Lakewood, Colorado All relevant substantive comments received during the public scoping period will be considered in the preparation of the Draft EIS/EIR. Comments provided previously, in response to the original NOP, remain part of the official record and do not need to be resubmitted in response to this revised NOP. No final decisions will be made regarding going forward with the CoSu Line Project until completion of the NEPA and CEQA processes. For the most recent information and for announcements, please visit the Project website at:

7 Maxwell Colusa «70 «30 «20 Williams «30 Marysville Yuba City Study Area Overview Map Arbuckle O'Banion «99 «70 «65 Y u b a C o u n t y Existing Substation Existing WAPA Transmission Lines California-Oregon Transmission Project Substation Study Area Northern Corridor Study Area Segment 1 Study Area Southern Corridor Study Area County Road 16 Corridor Study Area Segment 2 Study Area Colusa County California-Oregon Tranmission Project Napa County Placer County C o l u s a C o u n t y Yo l o C o u n t y «113 «99 S u t t e r C o u n t y P l a c e r C o u n t y Sacramento County County Yolo County Yuba County Dunnigan «16 05 Knights Landing «99 Dufour «113 N a p a C o u n t y Esparto Yolo «16 Woodland Sacramento International Airport S a c r a m e n t o C o u n t y Elverta Rio Linda K Miles

8 B u t t e C o u n t y C o l u s a C o u n t y S u t t e r C o u n t y Fairview Rd Maxwell Danley Rd Lurline Ave San Jose Rd Hunter Rd Colusa Northern Corridor and Segment 1 Study Areas Existing Substation Existing WAPA Transmission Lines California-Oregon Transmission Project Substation Study Area «20 Williams N. Meridian Rd W Butte Rd S Butte Rd «20 «20 S Tarke Rd Northern Corridor Study Area Segment 1 Study Area Butte County Colusa County County Franklin Rd California-Oregon Tranmission Project McClatchy Rd McClatchy Rd Progress Rd Brown Rd Oswald Rd Robbins Rd Schlag Rd Oswald Rd Boulton Rd Arbuckle Tisdale Rd O'Banion Obanion Rd East Canal K Miles

9 Miller Rd Spicer Rd Poundstone Rd «20 Williams «20 Southern Corridor Study Area Existing Substation Existing WAPA Transmission Lines California-Oregon Transmission Project Substation Study Area Cortina School Rd Hahn Rd Grimes Arbuckle Rd Southern Corridor Study Area Colusa County County Yolo County Arbuckle Traynham Rd Tule Rd Lodi Rd Fruchtenicht Reclamation Rd East Canal Tisdale Rd Obanion Rd O'Banion Cranmore Rd California-Oregon Tranmission Project C o l u s a C o u n t y S u t t e r C o u n t y Yo l o C o u n t y «113 K Dunnigan Miles

10 County Road 102 «99 «70 Dunnigan County Road 88 County Rd 14 County Road 14 Road 14A County Road 16 Dufour County Road 96 County Road 98 County Road 15 County Road 16 Yolo «113 Knights Landing County Road 16 County Road 17 Road 107 Road 107A Road 16 Levee Rd Power Line Rd Lone Tree Rd Sankey Rd W Riego Rd S u t t e r C o u n t y W Elverta Rd P l a c e r C o u n t y Elverta County Road 16 Corridor and Segment 2 Study Areas Existing Substation Existing WAPA Transmission Lines California-Oregon Transmission Project Substation Study Area County Road 16 Corridor Study Area Segment 2 Study Area Placer County Sacramento County County Yolo County Sacramento International Airport «99 Sorento Rd Rio Linda «16 Woodland Yo l o C o u n t y S a c r a m e n t o C o u n t y E Levee Rd 05 California-Oregon Transmission Project Natomas « «84 «275 « K Miles