ENVIRONMENTAL ASSESSMENT FOR NON-CAPACITY RELATED AMENDMENT TO LICENSE Terror Lake Hydroelectric Project—FERC Project No. 2743-079 Alaska Federal Energy Regulatory Commission Office of Energy Projects Division of Hydropower Administration and Compliance 888 First Street, NE Washington, D.C. 20426 Cooperating Agency U.S. Fish and Wildlife Service Region 7 101 East Tudor Road Anchorage, AK 99503 May 2017 TABLE OF CONTENTS LIST OF FIGURES ............................................................................................................ iv LIST OF TABLES.............................................................................................................. iv ACRONYMS AND ABBREVIATIONS............................................................................ v EXECUTIVE SUMMARY .............................................................................................. viii 1.0 INTRODUCTION .................................................................................................... 1 1.1 APPLICATION ............................................................................................. 1 1.2 PURPOSE OF ACTION AND NEED FOR POWER .................................. 2 1.2.1 Purpose of Action ............................................................................ 2 1.2.2 Need for Power ................................................................................ 3 1.3 STATUTORY AND REGULATORY REQUIREMENTS ......................... 4 1.3.1 Federal Power Act ........................................................................... 4 1.3.1.1 Section 18 Fishway Prescriptions ................................... 4 1.3.1.2 Section 4(e) Conditions .................................................. 5 1.3.1.3 Section 10(j) Recommendations ..................................... 5 1.3.2 Clean Water Act .............................................................................. 5 1.3.3 Endangered Species Act .................................................................. 5 1.3.4 Coastal Zone Management Act ....................................................... 5 1.3.5 National Historic Preservation Act .................................................. 6 1.3.6 Magnuson-Stevens Fishery Conservation and Management Act ... 6 1.3.7 Alaska National Interest Lands Conservation Act of 1980 ............. 6 1.4 PRE-FILING PUBLIC REVIEW AND CONSULTATION ........................ 7 1.4.1 Consultation ..................................................................................... 7 1.4.2 Public Notice ................................................................................. 10 2.0 PROPOSED ACTION AND ALTERNATIVES ................................................... 10 2.1 NO-ACTION ALTERNATIVE .................................................................. 10 2.2 PROPOSED ACTION................................................................... 10 2.2.1 Project Location ................................................................................ 16 2.2.2 Use of Existing Facilities .................................................................. 16 2.2.3 Project Operation with Upper Hidden Basin Diversion .................... 20 2.3 ALTERNATIVES ....................................................................................... 22 2.3.1 Modification to Licensee’s Proposal – 10(j) Recommendations and 4(e) Mandatory Conditions ........................................................... 22 2.4 STAFF ALTERNATIVE ............................................................................ 23 2.5 ALTERNATIVES CONSIDERED BUT ELIMINATED FROM DETAILED ANALYSIS ............................................................................ 23 i 3.0 ENVIRONMENTAL ANALYSIS ......................................................................... 24 3.1 GENERAL SETTING ................................................................................. 24 3.1.1 Climate .......................................................................................... 24 3.1.2 Air Quality and Noise .................................................................... 25 3.1.3 Topography .................................................................................... 25 3.1.4 Vegetative Cover ........................................................................... 27 3.1.5 Land Development and Population Size ....................................... 27 3.2 SCOPE OF CUMULATIVE EFFECTS ANALYSIS ................................ 27 3.3 PROPOSED ACTION ................................................................................ 28 3.3.1 Geology and Soils.......................................................................... 28 3.3.1.1 Resource Protection Measures ...................................... 32 3.3.1.2 Record of Consultation ................................................. 33 3.3.2 Water Use and Quality .................................................................. 34 3.3.2.1 Resource Protection Measures ...................................... 37 3.3.2.2 Record of Consultation ................................................. 38 3.3.3 Wetlands ........................................................................................ 40 3.3.3.1 Resource Protection Measures ...................................... 41 3.3.3.2 Record of Consultation ................................................. 42 3.3.4 Fishery Resources .......................................................................... 42 3.3.4.1 Resource Protection Measures ...................................... 45 3.3.4.2 Record of Consultation ................................................. 45 3.3.5 Terrestrial Resources ..................................................................... 47 3.3.5.1 Resource Protection Measures ...................................... 49 3.3.5.2 Record of Consultation ................................................. 50 3.3.6 Threatened and Endangered Species ............................................. 51 3.3.6.1 Resource Protection Measures ...................................... 51 3.3.6.2 Record of Consultation ................................................. 51 3.3.7 Cultural Resources ......................................................................... 52 3.3.7.1 Resource Protection Measures ...................................... 53 3.3.7.2 Record of Consultation ................................................. 54 3.3.8 Land Use ........................................................................................ 55 3.3.8.1 Resource Protection Measures ...................................... 56 3.3.8.2 Record of Consultation ................................................. 57 3.3.9 Recreation and Aesthetic Resources ............................................. 59 3.3.9.1 Resource Protection Measures ...................................... 59 3.3.9.2 Record of Consultation ................................................. 59 3.3.10 Socioeconomic Resources ............................................................. 59 3.3.10.1 Resource Protection Measures ...................................... 63 3.3.10.2 Record of Consultation ................................................. 63 3.3.11 Subsistence, 810 Evaluation ......................................................... 63 ii 3.4 NO-ACTION ALTERNATIVE .................................................................. 64 4.0 DEVELOPMENTAL ANALYSIS ........................................................................ 64 4.1 PROPOSED ACTION ................................................................................ 65 4.2 NO-ACTION ALTERNATIVE .................................................................. 65 5.0 CONCLUSIONS AND RECOMMENDATIONS ................................................. 66 5.1 COMPREHENSIVE DEVELOPMENT AND STAFF RECOMMENDED MEASURES ................................................................................................ 66 5.1.1 Measures Proposed by the Licensee .............................................. 66 5.1.2 Additional Measures Recommended by Staff ............................... 69 5.2 UNAVOIDABLE ADVERSE EFFECTS ................................................... 69 5.3 SUMMARY OF SECTION 10(J) RECOMMENDATIONS AND 4(E) CONDITIONS ............................................................................................. 70 5.4 CONSISTENCY WITH COMPREHENSIVE PLANS .............................. 70 6.0 FINDING OF NO SIGNIFICANT IMPACT ........................................................ 71 7.0 LITERATURE CITED ........................................................................................... 72 8.0 LIST OF PREPARERS .......................................................................................... 78 APPENDIX A—U.S. Fish and Wildlife Service Preliminary 4(e) Terms and Conditions APPENDIX B—National Marine Fisheries Service 10(j) Recommendations iii LIST OF FIGURES Figure 2-1 Diagram of Water Inflow and Outflow at Terror Lake Hydroelectric Project ..................................................................................................................... 21 LIST OF TABLES Table 2-1 Overview of Resource Issues .................................................................... 11 Table 2-2 Existing Environmental Measures – Summary of KEA Contract Terms and Conditions ......................................................................................................... 18 iv ACRONYMS AND ABBREVIATIONS ACHP Advisory Council on Historic Preservation