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Date: September 19, 2017 NOTICE OF PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT To: Agencies and Interested Parties Lead Agency: Sacramento Municipal Utility District 6201 S Street, MS B203 Sacramento, CA 95817-1899 Contact: Rob Ferrera at (916) 732-6676 Subject: Sacramento Headquarters Campus Master Plan Environmental Impact Report Review Period: September 19, 2017 to October 18, 2017 Purpose of Notice: In accordance with the California Environmental Quality Act (CEQA), the Sacramento Municipal Utility District (SMUD) is distributing a notice of preparation (NOP) to solicit comments on the scope of an environmental impact report (EIR) that is being prepared for the Headquarters Campus Master Plan (HQCMP) project. SMUD is the lead agency responsible for the project and as such, is also responsible for complying with the provisions of CEQA. The HQCMP would provide strategic and long-term planning of the SMUD Headquarters Campus and support streamlined development and ongoing maintenance of the campus. SMUD will prepare an EIR, as required by Public Resources Code Section 21080.09, to evaluate the environmental effects of growth and development under the HQCMP. The EIR will evaluate the HQCMP at a programmatic level, but will also evaluate elements at a project-level of detail where appropriate. A program EIR is intended to generally evaluate an overall project, such as a plan, and to streamline environmental review of subsequent activities (i.e., individual projects) that are consistent with the overall project (e.g., HQCMP). This NOP has been prepared pursuant to Sections 15082 and 15083 of the CEQA Guidelines. This NOP starts a public scoping period that will assist in the preparation of the Draft EIR. The public scoping period is for 30 days and will run from September 19, 2017 to October 18, 2017. The purpose of the NOP is to provide sufficient information about the 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 EIR, including possible environmental impacts, mitigation measures, and alternatives. Project Location: The SMUD Headquarters Campus (project site) is located in Sacramento, California and is entirely owned and operated by SMUD (Exhibits 1 and 2). The project site is bounded by 59th Street to the west, 65th Street to the east, Folsom Boulevard to the north, and S Street to the south (Exhibit 3). SMUD property located to the west of 59 th Street, previously the SMUD Corporate yard, is not a component of the HQCMP and will not be analyzed as part of this project. The Sacramento Regional Transit (RT) light rail tracks bisect the site and form a portion of the site s northern border. The total HQCMP area is approximately 34 acres, with Page 1

Exhibit 1 Regional Location Page 2

Exhibit 2 Project Vicinity Page 3

Exhibit 3 Existing Campus Layout - Aerial Page 4

approximately 9.5 acres north of the Sacramento RT track alignment and 24.5 acres south of the alignment. Currently, 5 permanent structures, and additional temporary support structures occupy the Headquarters Campus, providing approximately 437,000 square feet (sf) of space for utility and office functions. While property west of 59 th Street and East City Substation are also owned and operated by SMUD, they are not part of the HQCMP or considered part of the project site. Description of Proposed Project: The project would involve the implementation of the HQCMP, which would guide the development and transition of SMUD s 34-acre headquarters campus into a more active, sustainable, and flexible land use created through density, street experience, and variety that interfaces with the community and maintains consistency with local and regional planning efforts. The HQCMP would be implemented over a 20-year horizon, and each phase of the project will be described further in the EIR. The HQCMP would also allow SMUD to identify physical improvements to support the strategic vision. These may include new facilities to be located at the project site or how existing uses would be relocated within the campus. As shown in Exhibit 4, the following elements are included as part of the project: A campus focused on the south side of the light rail tracks (except for the Central Plant and potential auxiliary building); A customer/innovation center building at the corner of 59th and S Streets; A training center and office building with corporate training rooms, offices, and mail/print services; A utility building providing warehousing storage and related administrative offices; Expansion of the SMUD Corporate Center (SCC), previously the Customer Service Center (CSC), to provide additional space for potential research and development, information technology, expanded business support services, renewable energy demonstration area, and expanded/improved outdoor seating and employee gathering space uses; and, Flex space along Folsom Boulevard for potential future spacing needs. Under the current conceptual land plan, the majority of onsite structures (other than the flagship Headquarters and CSC buildings) would be replaced within the western and southern areas of campus. Up to 550,000 sf of utility and office space would be provided, which represents a net 113,000 sf increase above existing conditions at the Headquarters Campus. The existing Headquarters Building and Central Plant would be retained. The southeastern corner of campus, which is considered underused, could be modified to include an expansion of the existing CSC building for additional business support services, a renewable energy demonstration area, or expanded/improved outdoor seating and gathering spaces for employees. The majority of the northern portion of the Headquarters Campus (i.e., north of the RT track alignment) would be retained as flexible space to address potential future spacing needs, although an auxiliary building would be relocated to this portion of the campus. The proposed HQCMP would not involve the realignment of existing public streets adjacent to the project site, although additional access points, including improved access along Folsom Boulevard, may be included as part of the HQCMP. Page 5

Exhibit 4 Conceptual Land Plan Page 6

Potential Approvals and Permits Required: Elements of the project could be subject to permitting and/or approval authority of other agencies. As the lead agency pursuant to CEQA, SMUD is responsible for considering the adequacy of the IS and determining whether to approve the project. Permits potentially required from other agencies could include: State Local State Water Resources Control Board/Central Valley Regional Water Quality Control Board: Construction Storm Water Discharge Permits. California Department of Transportation: Permits for movement of oversized or excessive loads on State Highways. Sacramento Metropolitan Air Quality Management District (SMAQMD): Authority to Construct/Permit to Operate pursuant to SMAQMD Regulation 2 (Rule 201 et seq.). City of Sacramento: Tree removal permit to comply with the City of Sacramento Tree Ordinance Building permits to comply with Sacramento City Code requirements Encroachment permit Improvement Plans Grading Permit Rezone Lot Merger Tentative Subdivision Map Conditional Use Permit Site Plan and Design Review Potential Environmental Effects: The EIR will describe the significant direct and indirect environmental impacts of the project. The EIR also will evaluate the cumulative impacts of the project, defined as impacts that could be exacerbated when considered in conjunction with other related past, present, and reasonably foreseeable future projects. SMUD anticipates that the project could result in potentially significant environmental impacts in the following resource areas, which will be further evaluated in the EIR: Aesthetics: Temporary and long-term changes in scenic views or visual character of the project site, as viewed by motorists on State Route 50, 59 th Street, 65 th Street, and Folsom Boulevard. Air Quality: Temporary increases in air pollutant emissions associated with construction; and long-term increases in pollutant emissions associated with project operation and maintenance (including employee commute to and from the Headquarters Campus). Cultural Resources: Temporary or permanent disturbances of known and unknown historic, archaeological, or tribal cultural resources. Page 7

Greenhouse Gas Emissions: Temporary increases in greenhouse gas emissions associated with mobile-source exhaust from construction worker commute trips, truck haul trips, and equipment (e.g., excavators, graders); and long-term increases in greenhouse gas emissions associated with project operation (including employee commute to and from campus and stationary equipment, such as internal-combustionengine-powered generators). Hazards and Hazardous Materials: Potential risks associated with accident or upset conditions during construction because of previous commercial operations within the Headquarters Campus. Noise: Temporary increases in noise (including off-site, vehicle traffic noise) and vibration levels during construction; and long-term increases in noise from project operation and maintenance. Transportation and Traffic: Temporary and long-term increases in traffic and traffic hazards on local roadways during construction and project operation and maintenance. Utilities and Service Systems: Increased demand for water and wastewater service within the Headquarters campus and the potential need to increase capacity of existing infrastructure. These potential impacts will be assessed and discussed in detail in the EIR, and feasible and practicable mitigation measures will be recommended to reduce any identified significant or potentially significant impacts. SMUD anticipates that the project would not result in significant environmental impacts in the following resource areas, which will not be further evaluated in the EIR: agriculture and forest resources, biological resources, geology and soils, hydrology and water quality, land use and planning, mineral resources, population and housing, public services, and recreation. An Initial Study will be included as an appendix in the EIR with brief explanations as to why significant impacts to each resource are not anticipated, as required by CEQA. Comment Period: Written comments on the NOP can be sent anytime during the NOP review period which begins September 19, 2017 to October 18, 2017 at 5:00 pm. Please send your written or electronic responses, with appropriate contact information, to the following address: Rob Ferrera Sacramento Municipal Utility District Environmental Management P.O. Box 15830 MS B203 Sacramento, CA 95852-1830 rob.ferrera@smud.org Page 8

Digital copies of the NOP are available on the internet at: https://www.smud.org/en/aboutsmud/company-information/document-library/ceqa-reports.htm. Hardcopies of the NOP are available for public review at the following locations: Sacramento Municipal Utility District Customer Service Center 6301 S Street Sacramento, CA 95817 Sacramento Municipal Utility District East Campus Operations Center 4401 Bradshaw Road Sacramento, CA 95827 Scoping Session: Written comments on the NOP may also be provided at the open house scoping session to be held September 27, 2017 from 6:30 to 7:30 p.m. at SMUD s Customer Service Center located at 6301 S Street, Sacramento CA 95817. At the scoping session, project information can be discussed with SMUD staff and written NOP comments will also be accepted. If you have questions regarding the IS and NOP or the scoping session, please contact Rob Ferrera at the email address shown above. Page 9