ADMIRALTY INLET PILOT TIDAL PROJECT FERC PROJECT NO. 12690 APPLICATION for a NEW PILOT PROJECT LICENSE (MINOR WATER POWER PROJECT) VOLUME II EXHIBIT E Prepared with additional assistance from: SMRU Limited Northwest National Marine Renewable Energy Center National Renewable Energy Laboratory BioSonics, Inc. Sandia National Laboratory Van Ness Feldman GordenDerr Electric Power Research Institute Evans-Hamilton, Inc. Fugro Survey Limited Global Diving & Salvage Beam Reach Marine Science and Sustainability School The Whale Museum The Orca Network Golder Associates Admiralty Inlet Pilot Tidal Project – FERC No. 12690 APPLICATION CONTENTS Volume I Executive Summary Initial Statement Justification Statement Process Plan Exhibit A – Project Description Exhibit F – General Design Drawings of the Principal Project Works Exhibit G – Project Maps Volume II Exhibit E – Environmental Report Volume III Appendix A – Proposed Protection, Mitigation, and Enhancement Measures Appendix B – Benthic Habitat Monitoring Plan Appendix C – Derelict Gear Monitoring Plan Appendix D – Water Quality Monitoring Plan Appendix E – Project Safeguard Plans Appendix F – Horizontal Directional Drilling Plan Appendix H – Adaptive Management Framework Appendix I – Financial Assurance Plan Appendix J – Legal Provisions Conveying Right to Engage in Business of Developing, Transmitting, and Distributing Power Appendix K – Assessment of Strike of Adult Killer Whales by an OpenHydro Tidal Turbine Blade Appendix L – Pre-Installation Study Reports Appendix M – Historic Properties Information and DAHP Concurrence Appendix N – Stakeholder Consultation Appendix O – Detection of Tidal Turbine Noise: A Pre-Installation Case Study for Admiralty Inlet, Puget Sound Appendix P – Effects of Tidal Turbine Noise on Fish Hearing and Tissues Volume IV Appendix G – Applicant Prepared Draft Biological Assessment FINAL APPLICATION FOR A NEW PILOT PROJECT LICENSE Application Contents – February 29, 2012 EXHIBIT E – ENVIRONMENTAL REPORT for the Admiralty Inlet Pilot Tidal Project ADMIRALTY INLET PILOT TIDAL PROJECT (PROJECT NO. 12690) ENVIRONMENTAL REPORT PUBLIC UTILITY NO. 1 OF SNOHOMISH COUNTY Everett, Washington February 29, 2012 ADMIRALTY INLET PILOT TIDAL PROJECT ENVIRONMENTAL REPORT TABLE OF CONTENTS Section Title Page No. ACRONYMS AND ABBREVIATIONS ........................................................................... XIII EXECUTIVE SUMMARY ........................................................................................... XVII SECTION 1 ................................................................................................................... 1 INTRODUCTION ............................................................................................................ 1 1.1 Application ...................................................................................................................1 1.2 Purpose of Action and Need for Power ........................................................................3 1.2.1 Purpose of Action .............................................................................................3 1.2.2 Need for Power .................................................................................................3 1.3 Statutory and Regulatory Requirements .......................................................................5 1.3.1 Clean Water Act ...............................................................................................5 1.3.1.1 Water Quality Certification ................................................................5 1.3.1.2 Section 404 Permit .............................................................................5 1.3.2 Endangered Species Act ...................................................................................5 1.3.3 Coastal Zone Management Act ........................................................................7 1.3.4 National Historic Preservation Act ...................................................................7 1.3.5 Magnuson-Stevens Fishery Conservation and Management Act .....................7 1.3.6 Marine Mammal Protection Act .......................................................................8 1.3.7 Ports and Waterways Safety Act ......................................................................9 1.4 Public Review and Comment .......................................................................................9 1.4.1 Consultation Prior to Filing the Draft License Application ............................10 1.4.2 Consultation Following Submittal of the DLA ..............................................15 SECTION 2 ................................................................................................................. 19 PROPOSED ACTION AND ALTERNATIVES ................................................................... 19 2.1 No-action Alternative .................................................................................................19 2.2 Proposed Action ..........................................................................................................19 2.2.1 Proposed Project Facilities .............................................................................19 2.2.1.1 Tidal Energy Device .........................................................................19 2.2.1.2 Foundation ........................................................................................21 2.2.1.3 Subsea Trunk Cables ........................................................................23 2.2.1.4 Terrestrial Transmission Line and Grid Interconnection .................24 2.2.2 Project Installation ..........................................................................................28 2.2.2.1 Terrestrial Facilities ..........................................................................29 2.2.2.2 Marine Facilities ...............................................................................34 Environmental Report Page i TABLE OF CONTENTS (Continued) Section Title Page No. 2.2.2.3 Test and Verification ........................................................................37 2.2.3 Proposed Project Operation and Maintenance ................................................37 2.2.3.1 Project Operation ..............................................................................37 2.2.3.2 Project Maintenance .........................................................................39 2.2.4 Proposed Environmental Measures ................................................................42 2.2.5 Other Licensed Projects for OpenHydro Turbine Deployment ......................44 2.3 Alternatives Considered but Eliminated from Detailed Study ...................................46 SECTION 3 ................................................................................................................. 49 ENVIRONMENTAL ASSESSMENT ................................................................................ 49 3.1 General Description of the Project Area .....................................................................49 3.2 Scope of Cumulative Effects Analysis .......................................................................51 3.2.1 Geographic Scope ...........................................................................................52 3.2.2 Temporal Scope ..............................................................................................52 3.3 Proposed Action ..........................................................................................................52 3.3.1 Geologic and Soil Resources ..........................................................................53 3.3.1.1 Affected Environment ......................................................................53 3.3.1.2 Environmental Effects ......................................................................60 3.3.2 Marine Resources ...........................................................................................63 3.3.2.1 Affected Environment ......................................................................63 3.3.2.2 Environmental Effects ....................................................................113 3.3.2.3 Cumulative Effects .........................................................................177 3.3.3 Terrestrial Resources ....................................................................................178 3.3.3.1 Affected Environment ....................................................................178 3.3.3.2 Environmental Effects ....................................................................182 3.3.4 Threatened and Endangered Species ............................................................183 3.3.5 Recreation, Ocean, and Land Use .................................................................183 3.3.5.1 Affected Environment ....................................................................183 3.3.5.2 Environmental Effects ....................................................................196 3.3.5.3 Cumulative Effects .........................................................................202 3.3.6 Cultural and Tribal Resources ......................................................................203 3.3.6.1 Affected Environment ....................................................................203 3.3.6.2 Environmental Effects ....................................................................206 3.3.7 Aesthetic Resources ......................................................................................207