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Eagle Mountain Pumped Storage Project No. 13123 Exhibit E: Applicant Prepared Environmental Impact Statement Volume 2 of 6 Palm Desert, California

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Eagle Mountain Pumped Storage Project No. 13123 Exhibit E: Applicant Prepared Environmental Impact Statement Volume 2 of 6 Palm Desert, California PUBLIC VERSION Eagle Mountain Pumped Storage Project No. 13123 Exhibit E: Applicant Prepared Environmental Impact Statement Volume 2 of 6 Palm Desert, California Submitted to: Federal Energy Regulatory Commission Submitted by: Eagle Crest Energy Company Date: June 22, 2009 GEI Project No. 080473 © 2009 Eagle Crest Energy Company APPLICANT PREPARED ENVIRONMENTAL IMPACT STATEMENT - EXHIBIT E This license application is organized into six volumes, as described below: Volume 1 Initial Statement and Exhibits A, B, C, and D Public Volume 2 Exhibit E, Applicant Prepared Environmental Public Impact Statement Volume 3 Appendices to Exhibit E, Applicant Prepared Public Environmental Impact Statement Volume 4 Privileged information for Exhibit E, Applicant Privileged, not for release Prepared Environmental Impact Statement Volume 5 Exhibit F, Supporting Design Report Critical Energy Infrastructure Information (CEII), not for release Volume 6 Exhibit G Public © 2009 Eagle Crest Energy Company ii APPLICANT PREPARED ENVIRONMENTAL IMPACT STATEMENT - EXHIBIT E Cover Sheet a. Title: License Application for Eagle Mountain Pumped Storage Hydroelectric Project, FERC Project No. 13123-000 b. Subject: Applicant Prepared Environmental Impact Statement c. Lead Agency: Federal Energy Regulatory Commission d. Cooperating Agency: None e. Abstract: On January 10, 2008, Eagle Crest Energy Company (Eagle Crest) filed with the Federal Energy Regulatory Commission (Commission) a Notice of Intent to file a license application, a request to use the Traditional Licensing Process, and a Pre-Application Document for the proposed 1,300- megawatt Eagle Mountain Pumped Storage Project.1 The project would be located in two depleted mining pits in the Eagle Mountain Mine in Riverside County, California, near the town of Desert Center, California. The proposed project would occupy federal lands administered by the Bureau of Land Management (BLM) and private lands owned by Kaiser Eagle Mountain, LLC and others. On June 16, 2008, Eagle Crest submitted a Draft License Application (DLA). The Commission has reviewed the DLA and provided comments along with interested stakeholders. These comments can be viewed on the Commission’s website at http://elibrary.FERC.gov/idmws/file_list.asp?accession_num=20081015-5009. This Applicant Prepared Environmental Impact Statement2 (APEIS) was prepared with consideration for the comments submitted on the DLA by the Commission and others. 1 Previously, the project was given FERC Project No. 12509-001. Upon issuance of a new preliminary permit on August 13, 2008, the project was given FERC Project No. 13123-000. On March 4, 2008, the Commission approved Eagle Crest’s request to use the TLP. 2 ECE requested a waiver of FERC regulations at §4.41(f) for filing an Applicant Prepared Environmental Impact Statement (APEIS). The Commission approved this request on October 29, 2008. © 2009 Eagle Crest Energy Company iii APPLICANT PREPARED ENVIRONMENTAL IMPACT STATEMENT - EXHIBIT E The Commission conducted scoping on the project in January and February 2009. Scoping meetings were held on January 15 and 16, 2009. Transcripts of these meetings are available at http://elibrary.FERC.gov/idmws/file_list.asp?accession_num=20090116- 4018 and http://elibrary.FERC.gov/idmws/file_list.asp?accession_num=20090115-4018. A site visit was conducted for any interested parties on January 15, 2009. Eagle Crest proposes to license the project including the proposed protection, mitigation, and enhancement measures included in this APEIS. f. Contact: Eagle Crest Energy Company, Stephen Lowe, President One El Paseo West Building 74-199 El Paseo Drive, Suite 204 Palm Desert, California 92260 g. Transmittal: This Applicant Prepared EIS to license the Eagle Mountain Pumped Storage Project is being submitted to the Commission on June 22, 2009. © 2009 Eagle Crest Energy Company iv APPLICANT PREPARED ENVIRONMENTAL IMPACT STATEMENT - EXHIBIT E Foreword The Federal Energy Regulatory Commission (Commission or FERC), pursuant to the Federal Power Act (FPA)3 and the U.S. Department of Energy (DOE) Organization Act4 is authorized to issue licenses for up to 50 years for the construction and operation of non-federal hydroelectric developments subject to its jurisdiction, on the necessary conditions: That the project adopted… shall be such as in the judgment of the Commission will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, for the improvement and utilization of waterpower development, for the adequate protection, mitigation, and enhancement of fish and wildlife (including related spawning grounds and habitat), and for other beneficial public uses, including irrigation, flood control, water supply, and recreational and other purposes referred to in Section 4(e)…5 The Commission may require such other conditions not inconsistent with the FPA as may be found necessary to provide for the various public interests to be served by the project.6 3 16 U.S.C. §§ 791(a)-825(r), as amended by the Electric Consumers Protection Act of 1986, Pub. L. 99-495 (1986), the Energy Policy Act of 1992, Pub. L. 102-486 (1992), and the Energy Policy Act of 2005, Pub. L. 109-58 (2005). 4 Pub. L. 95-91, Stat. 556 (1977). 5 16 U.S.C. § 803(a). 6 16 U.S.C. § 803(g). © 2009 Eagle Crest Energy Company v APPLICANT PREPARED ENVIRONMENTAL IMPACT STATEMENT - EXHIBIT E Table of Contents Cover Sheet iii Foreword v Table of Contents vi Acronyms and Abbreviations xx Executive Summary ES-1 Proposed Action ES-1 Alternatives Considered ES-15 Public Involvement and Areas of Concern ES-15 Project Effects ES-15 Conclusions ES-18 1 Introduction 1-1 1.1 Application 1-1 1.2 Purpose of Action and Need for Power 1-1 1.2.1 Purpose of Action 1-1 1.2.2 Need for Power 1-2 1.2.2.1 Peak Power Demand 1-2 1.2.2.2 Energy Storage for Renewable Energy Sources 1-4 1.3 Statutory and Regulatory Requirements 1-6 1.3.1 Federal Power Act 1-6 1.3.2 Clean Water Act 1-6 1.3.3 Endangered Species Act 1-7 1.3.4 Coastal Zone Management Act 1-7 1.3.5 National Historic Preservation Act 1-8 1.3.6 Pacific Northwest Power Planning and Conservation Act 1-8 1.3.7 Wild and Scenic Rivers Act 1-8 1.3.8 Magnuson-Stevens Fishery and Conservation and Management Act 1-8 1.4 Public Review and Comment 1-9 1.4.1 Scoping 1-9 1.4.2 Interventions 1-9 1.4.3 Comments on the License Application 1-9 2 Proposed Action and Alternatives 2-1 2.1 No Action Alternative 2-1 2.2 Proposed Action 2-1 2.2.1 Proposed Project Facilities 2-1 2.2.1.1 Upper Dams and Reservoir 2-3 © 2009 Eagle Crest Energy Company vi APPLICANT PREPARED ENVIRONMENTAL IMPACT STATEMENT - EXHIBIT E 2.2.1.2 Lower Reservoir 2-5 2.2.1.3 Spillways 2-6 2.2.1.4 Conduits 2-6 2.2.1.5 Powerhouse 2-7 2.2.1.6 Access Tunnel 2-8 2.2.1.7 Other Structures 2-8 2.2.1.8 Water Supply and Conveyance Pipelines 2-9 2.2.1.9 Reverse Osmosis System 2-10 2.2.1.10 Transmission lines 2-12 2.2.1.11 Access roads 2-13 2.2.1.12 Public lands within the project boundary 2-13 2.2.2 Project Safety 2-14 2.2.3 Project Operation 2-14 2.2.4 Proposed Environmental Measures 2-15 2.2.4.1 Geological Resources 2-15 2.2.4.2 Surface Water Resources 2-16 2.2.4.3 Groundwater Resources 2-16 2.2.4.4 Fishery Resources 2-18 2.2.4.5 Terrestrial Resources 2-18 2.2.4.6 Threatened and Endangered Species 2-21 2.2.4.7 Aesthetic Resources 2-23 2.2.4.8 Cultural Resources 2-24 2.2.4.9 Recreation and other Land Uses 2-25 2.2.4.10 Socioeconomics 2-25 2.2.4.11 Air Quality 2-26 2.2.4.12 Noise 2-27 2.2.4.13 Greenhouse Gases 2-27 2.3 Other Alternatives 2-28 2.4 Alternatives Considered but Eliminated from Further Analysis 2-28 2.4.1 Pumped Storage Location Alternatives 2-28 2.4.2 Water Treatment Alternatives 2-29 2.4.3 Alternative Power Sources 2-30 2.4.4 Transmission Alternatives 2-30 2.4.5 Water Supply Alternatives 2-31 3 Environmental Analysis 3-1 3.1 General Description of the River Basin 3-1 3.2 Scope of Cumulative Effects Analysis 3-3 3.2.1 Geographic Scope 3-3 3.2.2 Temporal Scope 3-3 3.2.3 Past, present, and reasonably foreseeable actions 3-3 3.2.3.1 Landfill 3-3 3.2.3.1.1 Land Exchange 3-4 © 2009 Eagle Crest Energy Company vii APPLICANT PREPARED ENVIRONMENTAL IMPACT STATEMENT - EXHIBIT E 3.2.3.1.2 Landfill Operations 3-4 3.2.3.1.3 Landfill Permitting 3-5 3.2.3.1.4 Compatibility of Specific Features 3-6 3.2.3.1.5 Potential Seepage Issues 3-6 3.2.3.1.6 Ancillary Facilities Interferences 3-7 3.2.3.1.7 Summary of Cumulative Effects of the Proposed Landfill and the Eagle Mountain Pumped Storage Project 3-8 3.2.3.2 Solar Projects 3-9 3.3 Proposed Action and Action Alternatives 3-11 3.3.1 Geological Resources 3-11 3.3.1.1 Affected Environment 3-11 3.3.1.1.1 General Geologic Setting 3-11 3.3.1.1.2 Project Area Geology 3-12 3.3.1.1.3 Soil Resources 3-17 3.3.1.1.4 Earthquakes and Faults 3-20 3.3.1.2 Environmental Analysis 3-28 3.3.1.2.1 Reservoir Seepage 3-28 3.3.1.2.2 Ground Subsidence 3-28 3.3.1.2.3 Active and Inactive Mines 3-29 3.3.1.2.4 Soil Erosion 3-29 3.3.1.2.5 Landslides and Mass Movements 3-29 3.3.1.2.6 Earthquakes and Faults 3-30 3.3.1.2.7 Liquefaction 3-30 3.3.1.2.8 Reservoir Triggered Seismicity 3-31 3.3.1.2.9 Contaminants 3-33 3.3.1.3 Proposed Environmental Measures 3-33 3.3.1.3.1 Reservoir Seepage 3-34 3.3.1.3.2 Ground Subsidence 3-35 3.3.1.3.3 Active and Inactive Mines 3-35 3.3.1.3.4 Soil Erosion 3-35 3.3.1.3.5 Landslides and Mass Movements 3-36 3.3.1.3.6 Earthquakes and Faults 3-37 3.3.1.3.7 Reservoir Triggered Seismicity 3-37 3.3.1.4 Cumulative Effects 3-38
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