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Community/Recreational-Areas/UARP/Hydro-License 20140723-3046 FERC PDF (Unofficial) 07/23/2014 148 FERC ¶ 62,070 UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Sacramento Municipal Utility District Project No. 2101-084 ORDER ISSUING NEW LICENSE (Issued July 23, 2014) INTRODUCTION 1. On July 7, 2005, the Sacramento Municipal Utility District (SMUD) filed, pursuant to sections 4(e) and 15 of the Federal Power Act (FPA),1 an application2 for a new license to continue operation and maintenance of its Upper American River Hydroelectric Project (Upper American Project) No. 2101, and to construct, as a part of the project, the proposed Iowa Hill Pumped Storage Development (Iowa Hill Development).3 The authorized installed capacity under this license for the existing part of the project is 637.3 megawatts (MW),4 and the proposed installed capacity for the Iowa Hill Development under this license is 400 MW, for a total project installed capacity of 1,037.3 MW. 2. The project currently consists of seven developments located on the Rubicon River, Silver Creek, and South Fork American River in El Dorado and Sacramento Counties in central California. These seven developments occupy 6,190.2 acres of federal land within the Eldorado National Forest, managed by the U.S. Department of Agriculture - Forest Service (Forest Service), and 53.9 acres of federal land administered 1 16 U.S.C. §§ 797(e) and 808 (2012), respectively. 2 The application was prepared using the Commission’s Alternative Licensing Process (ALP). As such, it included an applicant-prepared environmental assessment. 3 On July 15, 2005, Pacific Gas & Electric Company filed an application for a new license for its Chili Bar Hydroelectric Project (Chili Bar Project) No. 2155, located immediately downstream of the Upper American Project on the South Fork American River. Due to their proximity, both projects were the subject of a collaborative proceeding and settlement negotiations. 4 See Sacramento Mun. Util. Dist. (SMUD), 122 FERC ¶ 62,017 at ordering para. (C) (2008). 20140723-3046 FERC PDF (Unofficial) 07/23/2014 Project No. 2101-084 - 2 - by the U.S. Department of Interior Bureau of Land Management (BLM).5, 6 The Iowa Hill Development will be located in El Dorado County, and will occupy 185 acres of federal land within the Eldorado National Forest. 3. As discussed below, this order issues a new license for the Upper American River Project, and authorizes the construction of the Iowa Hill Development as part of the project. BACKGROUND 4. The Commission issued the original license for the Upper American Project on August 28, 1957.7 The license expired on July 31, 2007. Since then, SMUD has operated the project under an annual license pending the disposition of its new license application.8 5. On July 28, 2006, the Commission issued a public notice accepting the application for filing, soliciting motions to intervene, protests, comments, and final recommendations, terms and conditions, and prescriptions.9 The notice set a deadline of September 26, 2006, later extended to October 18, 2006,10 for filing motions to intervene 5 The Commission charges SMUD annually for the use of federal lands under section 10(e) of the FPA, 16 U.S.C. § 803(e) (2012), for 4,553.41 non-transmission line acres and 359.79 transmission line acres, which are fewer than the total federally-owned acres occupied by the project because acreage transferred by SMUD to the Forest Service in the 1960s is not subject to annual charges because SMUD retained occupancy rights on those lands. 6 Because the project is located on the South Fork American River, a navigable waterway of the United States, El Dorado Irrigation District, 29 FERC ¶ 61,375, at 61,792 (1984), and is located on federal lands administered by the US Forest Service, the project is required to be licensed pursuant to section 23(b)(1) of the Federal Power Act, 16 U.S.C. § 817(1) (2012). 7 18 FPC 228 (1957). The original license was granted on August 28, 1957, with an effective date of August 1, 1957, for a term of fifty years. 8 See 16 U.S.C. § 808(a)(1) (2012). 9 See 71 Fed. Reg. 44,691 (July 28, 2006). 10 On August 18, 2006, SMUD filed a supplement to its environmental assessment addressing an “Agency/NGO Alternative” that was later superseded by a settlement agreement. By letter filed September 6, 2006, BLM, California Fish and Wildlife, (continued) 20140723-3046 FERC PDF (Unofficial) 07/23/2014 Project No. 2101-084 - 3 - and protests. 6. The El Dorado Parties,11 Department of Interior (Interior), Pacific Gas and Electric Company (PG&E), California Department of Fish and Game (California Fish and Wildlife),12 Friends of the River (on behalf of America Outdoors, American River Recreation Association, American Whitewater, California Outdoors, California Sportfishing Protection Alliance, Camp Lotus, Foothill Conservancy, Sierra Club, and Hilde Schweitzer), National Marine Fisheries Service (NMFS), Placer County Water Agency, the El Dorado Hills Community Service District, and the California State Water Resources Control Board (California Water Board) filed timely motions to intervene. Motions to intervene filed after an application has been filed but before notice has been issued are considered to be timely. None of the intervenors opposes issuance of a new license. 7. Timely comments and recommendations were filed by California Fish and Wildlife, California Sportfishing Protection Alliance, NMFS, California Water Board, California Department of Parks and Recreation (California Parks and Recreation), and the Forest Service. 8. On November 16, 2006, a number of the stakeholders in this proceeding filed a request that the Commission extend the deadline for filing comments, recommendations, and terms and conditions to February 1, 2007, to give them time to complete settlement negotiations and for agencies to file revised conditions.13 The Commission issued a notice granting the request the same day. California Department of Parks and Recreation, Forest Service, Fish and Wildlife Service, National Park Service, and the California State Water Resources Control Board requested a 60-day extension on filing comments, recommendations, and final terms and conditions. On September 13, 2006, the Commission issued a notice extending the deadline to October 18, 2006, to give the parties 60 days from the date of SMUD’s supplemental filing to review the filing and file comments, recommendations, and final terms and conditions. 11 County of El Dorado, El Dorado County Water Agency, El Dorado Irrigation District, El Dorado Water & Power Authority, and Georgetown Divide Public Utility. 12 The California Department of Fish and Game was renamed the Department of Fish and Wildlife on January 1, 2013. 13 See letter from Michael A. Swiger (counsel for SMUD) to Magalie R. Salas (Commission Secretary). 20140723-3046 FERC PDF (Unofficial) 07/23/2014 Project No. 2101-084 - 4 - 9. On February 1, 2007, SMUD and PG&E filed a comprehensive Settlement Agreement (Settlement) related to relicensing both the Upper American and Chili Bar Projects. The Settlement was signed by 15 stakeholders14 and resolved all issues among the signators related to the relicensing, including ongoing operation of the Upper American and Chili Bar Projects and overlapping resource issues.15 10. The Commission issued notice of the Settlement on February 8, 2007. Placer County Water Authority and the California Sportfishing Protection Alliance filed comments on the Settlement. California Parks and Recreation, California Fish and Wildlife, California Sportfishing Alliance, Forest Service, Environmental Council of Sacramento, Interior, NMFS, Sacramento Farm Bureau, and the California Water Board filed comments, recommendations, terms and conditions, and prescriptions based on the Settlement. 11. On September 21, 2007, Commission staff issued a draft environmental impact statement (draft EIS) on the applications for the Upper American and Chili Bar Projects that analyzed the impacts of the measures proposed in the Settlement and additional, staff-recommended measures.16 American Whitewater (on behalf of American River Recreation Association, California Outdoors, California Sportfishing Protection Alliance, Camp Lotus, Friends of the River, and Hilde Schweitzer), California Fish and Wildlife, the Forest Service, Friends of Slab Creek, Interior, PG&E, SMUD, U.S. Army Corps of Engineers (Corps), U.S. Environmental Protection Agency (EPA), and 18 individuals filed comments on the draft EIS. A final EIS was issued on March 14, 2008.17 References in this order to the EIS are to the final EIS, unless otherwise noted. 12. The interventions, comments, and recommendations have been fully considered in 14 Signators to the Settlement were: American Whitewater, American River Recreation Association, BLM, California Parks and Recreation, California Fish and Wildlife, California Outdoors, California Sportfishing Protection Alliance, Camp Lotus, Foothill Conservancy, Forest Service, Friends of the River, FWS, Interior, U.S. National Park Service, PG&E, Rich Platt, Hilde Schweitzer, Theresa Simsiman, and SMUD. 15 The full version of the Settlement with appendices is available on the Commission’s website from the eLibrary feature at http://www.ferc.gov/docs- filing/eLibrary.asp. Accession number 20070208-4003. 16 72 Fed. Reg. 55,194 (2007). The Forest Service was a cooperating agency in the preparation of the EIS. See Letter of Understanding between the Commission and the Eldorado National Forest, June 7, 2007. 17 See 73 Fed. Reg. 15,511 (2008). 20140723-3046
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