20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION APPLICATION FOR PRELIMINARY PERMIT

INITIAL STATEMENT

(1) Loxbridge Partners LLC, (“Loxbridge“ or the “Applicant”) applies to the Federal Energy Regulatory Commission for a preliminary permit for the proposed McNary Second Powerhouse (“MSP” or the “Project”), as described in the attached exhibits. This application is made in order that the applicant may secure and maintain priority of application for a license for the project under Part I of the Federal Power Act while obtaining the data and performing the acts required to determine the feasibility of the project and to support an application for a license.

(2) The location of the proposed project is:

State or territory: County: Umatilla County 216 SE 4th St Pendleton, OR 97801

Township or nearby town: City of Umatilla 700 Sixth Street, Umatilla, Oregon 97882 P.O. Box 130 Umatilla, Oregon 97882

The approximate Longitude is 119°17'57.50"W The approximate Latitude is 45°55'45.14"N

There are towns, cities, or other similar subdivisions with a population of 5,000 or more within 15 miles of the Project.

City of Hermiston 180 NE 2nd Street Hermiston, OR 97838

City of Kennewick City Hall - 210 W. 6th Ave. Kennewick, WA 99336

No political subdivisions will be affected by the proposed project.

Every irrigation district and drainage district that will be affected by the proposed project:

Umatilla County Soil & Water Conservation District 1 SW Nye Ave. Suite 130 Pendleton, OR 97801

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All Indian Tribes that may be affected by the Project

Nez Perce Tribe Anthony D. Johnson, Chairman Tribal Executive Committee P.O. Box 305 Lapwai, ID 83540 208-843-2253

Confederated Tribes and Bands of the Yakima Nation P.O. Box 151 Toppenish, WA 98948

Confederated Tribes of Warm Springs Reservation of Oregon P.O. Box 460 Warm Springs, OR 97761

Confederated Tribes of the Umatilla Indian Reservation Nixyáawii Governance Center 46411 Timine Way Pendleton, OR 97801

Stream or other body of water:

Columbia River McNary Lock and Dam Lake Wallula

(3) The exact name, business address, and telephone number of the applicant are:

Loxbridge Partners LLC 521 Thorn St #331 Sewickley, PA 15143 Ph. 480 435 0846

The exact name and business address of each person authorized to act as agent for the applicant in this application are:

Brieanna Dain Loxbridge Partners LLC 521 Thorn St #331 Sewickley, PA 15143 Ph. 480 435 0846 Email: [email protected]

and

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Mark Steinley Loxbridge Partners LLC 521 Thorn St #331 Sewickley, PA 15143 Ph. 480 435 0846 Email: [email protected]

and

Kristen Pettit Loxbridge Partners LLC 521 Thorn St #331 Sewickley, PA 15143 Ph. 480 435 0846 Email: [email protected]

(4) Loxbridge Partners LLC is a limited liability company organized/incorporated under the laws of the State of Wyoming and is not claiming preference under section 7(a) of the Federal Power Act.

(5) The proposed term of the requested permit is 36 months.

(6) There is an existing dam and reservoir. The dam and reservoir is McNary Day dam and Lake Wallula; owned and operated by the Army Corps of Engineers.

Walla Walla District United States Army Corps of Engineers 201 North Third Avenue Walla Walla, 99362

Northwestern Division United States Army Corps of Engineers 1201 NE Lloyd Blvd., Suite 400, Portland, OR 97232 P.O. Box 2870, Portland, OR 97208-2870

(7) The following Exhibits are filed herewith as part of this application:

Exhibit 1 Description of the Proposed Project Exhibit 2 Description of Studies Exhibit 3 Project Location

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EXHIBIT 1 PROJECT DESCRIPTION

(1) The proposed Project will be located at the United States Army Corps of Engineers (“USACE”) at the McNary Dam located at river mile 292 of the Umatilla County, Oregon.

The existing dam is 7,365 feet long, rising approximately 183 feet above the streambed. It consists of a concrete structure with an earthfill embankment at the Oregon (south) abutment. The spillway is a concrete, gravity-type spillway dam. It is 1,310 feet long, and contains 22 vertical lift gates, each 50 feet by 51 feet. The crest is at elevation 291 feet mean sea level and is designed to pass a flood of 2,200,000 cubic feet per second

The existing powerhouse has fourteen 70,000-kilowatt hydroelectric generator units – a 980- megawatt total powerhouse capacity. All 14 turbines in the powerhouse were operating by February 1957. The hydraulic capacity of McNary Dam, the amount of water that passes through the existing powerhouse turbines, is substantially less than that of any other project on the lower Columbia River. Congress authorized a second powerhouse in 1986, but it was deauthorized later due to a lack of economic feasibility in 1991. McNary remains a hydraulic constraint on the river.

The existing project includes McNary Dam, Lake Wallula, powerhouse, navigation lock, two fish ladders and a system of levees and pumping plants. The McNary dam is a concrete structure with an earthfill embankment at the Oregon (south) abutment.

The Corps identified 726 MW of potential hydroelectric development at existing federal facilities for Section 1834 of the Energy Policy Act of 2005.

The proposed Project will be about 1,140 feet long and from upstream to downstream it will be about 256 feet wide. Excavation for the draft tubes will extend down to elevation 168 mean sea level (MSL). About nine million cubic yards of excavation will be required downstream of the powerplant to create the tailrace area. The originally planned second powerhouse envisioned ten turbine units that will each pass 25,000 cubic feet per second (cfs) of water will drive generators with continuous over-load ratings of 100 megawatts each. The Proposed Project will be sized according to studies to be cared out but will likely be few than 10 turbines and likely with a total capacity of less than 1,000 MW. An estimated 700 MW capacity will be used for this preliminary permit even though the capacity may be any amount of 1,000 MW and lower.

Much of the supporting mechanical equipment will be independent of the existing powerhouse. It is proposed that the existing station service generators be permanently removed from service to facilitate cofferdam construction. The alignment of the powerhouse is to be determined after future study. It could be “in-line”, that is, the new generators could be installed directly in line with the existing 14-unit powerhouse. The second powerhouse will be placed in the area now occupied by the south abutment, which is a rock-fill,

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impervious core embankment adjacent to the existing powerhouse. It could also be possible that the new powerhouse be placed perpendicular to the dam.

As part of the construction of the Project, the juvenile fish facility and bypass system, as well as the southern fish ladders will be relocated.

No new dams or spillways are proposed for this Project but the earthfill embankment at the Oregon (south) abutment will be removed/modified/relocated to make room for an additional powerhouse.

The general configuration of the proposed structures is as follows:

a) One new powerhouse to be constructed as detailed above; b) Up to 10 turbine-generators of up to 100 MW capacity each, likely vertical Kaplan turbines; c) 2-3 step-up transformers; d) Likely two-1300 yard transmission line to the McNary substation; e) appurtenant facilities.

(2) The existing reservoir above the McNary Dam, Lake Wallula, has a water surface area of 38,800 acres. The normal full pool elevation of Lake Wallula is 340 feet mean sea level. The reservoir will not be affected by the proposed project. McNary Lock & Dam and Lake Wallula is owned and operated by the USACE and is not considered to be part of the Project.

(3) Electrical Interconnection options will be studied. The construction of 1-2 transmission lines of approximately 1300 yards from the Project site may be required to connect to the McNary switchyard.

(4) Estimated Energy and Installed Capacity

Installed Capacity, megawatts (MW) 700 (100 MW each) Expected Yearly Production, MW 3.7 million Design Head, feet 74 Number of Units 7

The final installed capacity and expected annual production will be determining during the feasibility and pre-design studies.

(5) The proposed project lies entirely within the boundaries of the USACE at McNary Dam. All land within the USACE project is land of the United States and will be approximately 70 acres plus transmission features to connect to the McNary substation/switchyard then approximately five (5) acres of land will be required.

(6) The Project will develop, conserve and use, in the public interest, the water resources of the Columbia River in Umatilla County, Oregon region by:

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a. Utilize the full hydraulic capacity at McNary Dam and Lake Wallula; b. To create additional flexibility in the operation of the entire Columbia basin by reducing/eliminating a hydraulic bottleneck; c. Construct a state of the art powerhouse incorporating fish friendly design; d. To fully use the water resources available at the Project, e. To design the powerhouse in such a way as to create a tourism destination for the benefit of area residents; f. To create local high-value employment; g. To obtain maximum efficiency of the Project, and h. To generate local tax revenues and fees.

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EXHIBIT 2 STUDY PLAN

(1) Proposed Study Plan (not limited to the following)

A. Review of publicly available information from the USACE regarding the water flows of McNary Dam. B. To review and update where appropriate the Environmental Impact Study previously done for the second powerhouse at McNary Dam. C. To work with the Corps to select an engineering firm and equipment manufacturers to design a leading edge powerhouse that incorporates environmental friendly design and is designed to enhance fish passage, as well as create a tourism attraction for the benefit of the local community. D. Electrical Interconnection – Application will undertake a study with input from the USACE and Bonneville Power Administration for the transmission line, the switchyard, and transformers. E. Engineering Design – Applicant will undertake more detailed engineering of the site to confirm size, type, number of units, and equipment as well as mode of operation. F. Operation – Applicant will conduct negotiations with the USACE to confirm the operating mode of the proposed Project and to maximize the benefits of the water energy at site. G. Financial and Marketing – Applicant will undertake a financial evaluation of the Project as well as evaluate options for the sale of energy generated by the Project. H. Environmental – Application will confirm with the USACE any environmental impact of the Project. I. Archeological and Historic Sites – The National Register of Historic Sites will be consulted to ensure that the site is not an archeological or historic site. J. It is proposed that available environmental studies be evaluated for the potential impact of Project. Given that the Project is proposed to operate within the established parameters of the McNary Dam, it is proposed that a review of existing studies be conducted, including the EIS already done for a second powerhouse, and be updated. In addition the Applicant will undertake a plan to mitigate any land used for the Project. K. O&M – The applicant will negotiate with the USACE for them to provide operations and maintenance services for the Project on a fee basis.

During the consultation process, additional issues will be identified and studies conducted where necessary.

No foundation exploration is anticipated for feasibility study, and no new roads will be constructed. There are no subsurface explorations (test pits, borings, or other foundation exploration) is anticipated for the Project. The Corps has done, or will do, enough work in this regard to provide more than adequate information. We also anticipate minimal field studies, test or other activities to be conducted in the area. These studies will not adversely affect cultural resources or endangered species and will not cause alterations or disturbances or lands and waters. Any land altered or disturbed will be adequately restored.

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There will be no new roads built for the purpose of conducting studies, or for construction or operation of the proposed Project.

(2) Work Plan for new dam construction

While no new dam is to be constructed as part of this Project, a new powerhouse will be constructed and therefore the Project will require test pit, borings, or other foundation exploration in the field. In this instance, considerable work has already been done by the Corps on a second powerhouse. Upon receipt of a preliminary permit, the Applicant will review all existing work done historically done at McNary Dam, to include both the construction of the original dam including the earthfill embankment at the Oregon (south) abutment and all studies done by the Corps when they were authorized to develop a second powerhouse. The Applicant anticipates only having to update already existing work done by the Corps, but will provide a work plan to the Commission upon review of the existing studies.

At this time the Applicant does not anticipate any field study, test, or other activity that may alter or disturb land or waters in the vicinity of the proposed project, including floodplains or wetlands. In the event that the Applicant undertakes any such activity, it will only do so with prior permission of the Corps, as the proposed Project is within the boundary of McNary Dam, owned and operated by the Corps.

After review of the existing material, the Applicant will work with the Commission to provide an appropriate schedule for any studies, investigations, tests or surveys which will be filed as part of the Proposed Study Plan required as part of the integrated licensing process § 5.11.

(3) Waiver

The applicant seeks waiver of the requirements of paragraph (c)(2) pursuant to §385.207 the field studies, tests, and other activities to be conducted under the permit would not adversely affect cultural resources or endangered species and would cause only minor alterations or disturbances of lands and waters, and that any land altered or disturbed would be adequately restored. This is because the majority of such field studies, tests, and other activities have already been completed by the Corps and that since any additional work undertaken will be within the project boundaries of McNary Dam, owned and operated by the Corps, and will only be done with the permission and oversight of the Corps.

(4) Statement of Estimated Costs and Financing

The estimated costs of carrying out and preparing the studies, investigation, tests, surveys, maps, and developing plans and specifications for the Project, negotiating with the USACE, are estimated to be approximately $3,000,000.

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Financing is expected to come from a mix of sources, including primarily private investment, , grants, Federal Department of Energy grant funds. The exact mix of financing will be determined as the licensing proceeds.

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EXHIBIT 3 PROJECT MAPS

Map A – Vicinity Map, shows general location of the Project located at McNary Dam.

Map B – Project Location at the McNary Dam

Map C – Project Features

Map D – Project boundary

Map E – Topographical Map, 1:24,000 scale metric topographical map.

All lands for the proposed Project are • federal land, • not included in nor designated for study for inclusion in the National Wild and Scenic Rivers System, and • under provisions of the Wilderness Act not designated as wilderness area, not recommended for designation as wilderness area, or designated as wilderness study area.

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Map A – Vicinity Map – McNary Dam (Project located at McNary Dam)

McNary Dam

Project 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map B – Project Loca?on at McNary Dam

McNary Dam 2nd Powerhouse Op?on 2 Exis?ng Powerhouse

2nd Powerhouse Op?on 1

New Tailrace 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map C – Project Features

McNary Dam Powerhouse General loca?on of tailrace

Project Powerhouse Op?ons

Substa?on/ Switchyard 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map D – Project Boundary

Project Tailrace McNary Dam

Project

Project Transmission Line 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map E – Topographical Map

McNary Dam Powerhouse Project 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Form FERC-587 OMB No. 1902-0145 (Expires 10/31/2018)

LAND DESCRIPTION

Public Land States (Rectangular Survey System Lands)

1. STATE 2. FERC PROJECT NO. ______

3. TOWNSHIP RANGE MERIDIAN ______

4. Check one: Check one:

License Pending Preliminary Permit Issued

If preliminary permit is issued, give expiration date: ______

5. EXHIBIT SHEET NUMBERS OR LETTERS Section 6 5 4 3 2 1

7 8 9 10 11 12

18 17 16 15 14 13

19 20 21 22 23 24

30 29 28 27 26 25

31 32 33 34 35 36

6. contact's name _

telephone no. ( )

Date submitted _

This information is necessary for the Federal Energy Regulatory Commission to discharge its responsibilities under Section 24 of the Federal Power Act.

20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map A – Vicinity Map – McNary Dam (Project located at McNary Dam)

McNary Dam

Project 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map B – Project Loca?on at McNary Dam

McNary Dam 2nd Powerhouse Op?on 2 Exis?ng Powerhouse

2nd Powerhouse Op?on 1

New Tailrace 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map C – Project Features

McNary Dam Powerhouse General loca?on of tailrace

Project Powerhouse Op?ons

Substa?on/ Switchyard 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map D – Project Boundary

Project Tailrace McNary Dam

Project

Project Transmission Line 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM

Map E – Topographical Map

McNary Dam Powerhouse Project Map f – Project – Large Map

Project

20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM 20160425-5073 FERC PDF (Unofficial) 4/23/2016 10:44:15 AM Document Content(s) Loxbridge PrelimPerApp Second Powerhouse FERC Submitted.PDF...... 1-16 Loxbridge Form 587 SecondPowerhouse McNary Submitted.PDF...... 17-23