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Enhancement Strategies for Mitigating Potential Operational Impacts Of Enhancement Strategies for Mitigating Potential Operational Impacts of Cooling Water Intake Structures Approaches for Enhancing Environmental Resources EPRI Report 1007454 Final Report, May 2003 EPRI Project Manager D. Dixon EPRI • 3412 Hillview Avenue, Palo Alto, California 94304 • PO Box 10412, Palo Alto, California 94303 • USA 800.313.3774 • 650.855.2121 • [email protected] • www.epri.com DISCLAIMER OF WARRANTIES AND LIMITATION OF LIABILITIES THIS DOCUMENT WAS PREPARED BY THE ORGANIZATION(S) NAMED BELOW AS AN ACCOUNT OF WORK SPONSORED OR COSPONSORED BY THE ELECTRIC POWER RESEARCH INSTITUTE, INC. (EPRI). NEITHER EPRI, ANY MEMBER OF EPRI, ANY COSPONSOR, THE ORGANIZATION(S) BELOW, NOR ANY PERSON ACTING ON BEHALF OF ANY OF THEM: (A) MAKES ANY WARRANTY OR REPRESENTATION WHATSOEVER, EXPRESS OR IMPLIED, (I) WITH RESPECT TO THE USE OF ANY INFORMATION, APPARATUS, METHOD, PROCESS, OR SIMILAR ITEM DISCLOSED IN THIS DOCUMENT, INCLUDING MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, OR (II) THAT SUCH USE DOES NOT INFRINGE ON OR INTEREFERE WITH PRIVATELY OWNED RIGHTS, INCLUDING ANY PARTY’S INTELLECTUAL PROPERTY, OR (III) THAT THIS DOCUMENT IS SUITABLE TO ANY PARTICULAR USER’S CIRCUMSTANCE; OR (B) ASSUMES RESPONSIBILITY FOR ANY DAMAGES OR OTHER LIABILITY WHATSOEVER (INCLUDING ANY CONSEQUENTIAL DAMAGES, EVEN IF EPRI OR ANY EPRI REPRESENTATIVE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES) RESULTING FROM YOUR SELECTION OR USE OF THIS DOCUMENT OR ANY INFORMATION, APPARATUS, METHOD, PROCESS, OR SIMILAR ITEM DISCLOSED IN THIS DOCUMENT. ORGANIZATION(S) THAT PREPARED THIS DOCUMENT ARGONNE NATIONAL LABORATORY ORDERING INFORMATION Requests for copies of this report should be directed to EPRI Orders and Conferences, 1355 Willow Way, Suite 278, Concord, CA 94520. Toll-free number: 800.313.3774, press 2, or internally x5379; voice: 925.609.9169; fax: 925.609.1310. Electric Power Research Institute and EPRI are registered service marks of the Electric Power Research Institute, Inc. EPRI. ELECTRIFY THE WORLD is a service mark of the Electric Power Research Institute, Inc. Copyright © 2002 Electric Power Research Institute, Inc. All rights reserved. CITATIONS This report was prepared by Argonne National Laboratory 9700 S. Cass Avenue Argonne, Illinois 60439 Principal Investigators I. Hlohowskyj J. Hayse R. Van Lonkhuyzen J. Veil W. Vinikour L. Urquidi This report describes research sponsored by EPRI. The report is a corporate document that should be cited in the literature in the following manner: Enhancement Strategies for Mitigating Potential Operational Impacts of Cooling Water Intake Structures: Approaches for Enhancing Environmental Resources, Final Report, EPRI, Palo Alto, CA, 2003. EPRI Report 1007454 iii ACKNOWLEDGMENTS The authors wish to acknowledge all reviewers who have assisted this effort by providing insightful comments and assistance. These reviewers, in alphabetical order, were: Elizabeth Aldridge Hunton & Williams Inc. David Bailey Mirant Mid-Atlantic Corporation John Balletto Public Service Electric & Gas Co. Kristy Bulleit Hunton & Williams Inc. Doug Dixon EPRI Rick Herd Allegheny Energy Gordon Hester EPRI Kirk LaGory Argonne National Laboratory Jules Loos Mirant Mid-Atlantic Corporation Robert H. Reider Detroit Edison Company Kenny Rose Louisiana State University, Coastal Fisheries Institute Paul Jacobson Langhei Ecology The authors also wish to acknowledge the following staff from Argonne National Laboratory for their invaluable assistance in data collection and evaluation, and technical editing and report production: John DePue Information and Publishing Division Alan Tsao Environmental Assessment Division iv REPORT SUMMARY This report describes environmental enhancement or restoration approaches that may be applicable for mitigating impingement and entrainment impacts associated with cooling water intake structures (CWISs). Background Environmental enhancement approaches (e.g., habitat restoration, restoration of fish passage, fish stocking) are often used to restore aquatic habitats or biological resources that have been affected by such activities as hydropower production, water supply system construction and use, mining, road construction, environmental contaminant cleanup, and commercial development. Environmental enhancements have become a common component of National Pollution Discharge Elimination System (NPDES) permitting under the Clean Water Act (CWA) and relicensing of hydroelectric operations by the Federal Energy Regulatory Commission (FERC). Trading of mitigation or restoration credits, historically considered by the U.S. Environmental Protection Agency (USEPA) for addressing air emissions, is also an emerging approach in water quality permitting. The USEPA is currently developing Federal regulations to address requirements of Section 316(b) of the CWA. Regulations for new electricity generation sources and draft regulations for existing electricity-generating sources both provide for using enhancements as a voluntary approach to mitigate 316(b) impacts. A need was identified for a review of the state- of-the-science of environmental enhancement and trading to help researchers, regulators, and the regulated community assess the role of enhancements and trading within the Section 316(b) regulatory context. Objectives To determine the state-of-science, including underlying objectives, implementation and operational requirements, costs, current use by government and the private sector, and advantages and limitations of environmental restoration measures for potentially mitigating CWIS operational impacts. Approach Environmental enhancement and trading strategies, decision frameworks, and scaling methods were evaluated against a variety of technical, ecological, regulatory, and operational parameters, including technological status, ability to target CWIS impacts, and the current level-of-use and state-of-the-science. A variety of sources were used to collect information for evaluation, including scientific journals; technical publications; conference and workshop proceedings; government, non-governmental organizations (NGO), and private sector publications and websites; and personal communications with technical and regulatory experts. The project team v did not comparatively evaluate the various enhancement and trading approaches or scaling methods, but rather addressed each on its own merits. Results Enhancement approaches fell into two categories: (1) those that directly address fish numbers and (2) those that address habitat. Stocking addresses fish numbers and may mitigate CWIS impacts by replacing fish directly affected by impingement or entrainment. Habitat restoration mitigates impacts by providing more or better quality habitat to support fish reproduction, growth, and survival. Approaches include restoration of fish passage, creation or restoration of wetlands and submerged aquatic vegetation beds, creation of artificial habitats (such as reefs), and the protection of existing habitat. Enhancement approaches are widely used by a variety of government agencies and NGOs to successfully manage, restore, and/or protect fisheries resources in marine and freshwater environments. They have also been used at many power plants to mitigate for CWIS impacts. Trading approaches could include (1) fish-for-fish trading that allows a cooling water user that provides greater CWIS impact reductions than required by its permit to trade those excess reductions to a second cooling water user; and (2) pollutants-for- fish trading that allows a cooling water user to have relaxed CWIS impact limits in its permit in exchange for reducing the load of key pollutants. A four-step framework was identified to aid in the selection and scaling of restoration projects to mitigate CWIS impacts. Steps in this framework include: (1) setting the baseline, which determines the type and amount of resources that incur impingement and entrainment impacts and for which mitigation is needed; (2) consideration of technological and/or operational alternatives; (3) selecting the restoration approach; and (4) scaling the restoration project. A critical component of this framework is the need for consultation with regulators, natural resource agencies, and appropriate stakeholders to develop the scope and scale of an appropriate project. EPRI Perspective This report provides energy company managers, regulators, and interested parties with an improved understanding of environmental enhancement approaches that can potentially mitigate CWIS operational impacts. The report will assist researchers, regulators, and the regulated community by identifying the current status and strengths and weaknesses of various enhancement and trading approaches and opportunities for applying these approaches to the regulation of CWIS. Keywords Clean Water Act Section 316(b) Cooling Water Intake Structure Fisheries Environmental Protection and Restoration Water Quality Trading vi CONTENTS 1 INTRODUCTION................................................................................................................. 1-1 1.1 Project Background ..................................................................................................... 1-1 1.2 Overview of Environmental Impacts of Cooling Water Intake Structure Operation........................................................................................... 1-2 1.3 Environmental Enhancement Strategies Evaluated in this Report................................ 1-2 1.4 Trading Strategies Evaluated in this
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