Buffalo Ridge II LLC Application to the South Dakota Public Utilities Commission For a Facility Permit Buffalo Ridge II Wind Farm and Associated Collection Substation and Electric Interconnection System Prepared for •IBERDROLA RENEWABLES Iberdrola Renewables and Buffalo Ridge II LLC Prepared by HDR Engineering Inc. 701 Xenia Avenue South Suite 600 Minneapolis, MN 55416 October 2008 DEPOSITION EXHIBIT ;:~£ Buffalo Ridge II LLC Application to the South Dakota Public Utilities Commission For a Facility Permit Buffalo Ridge II Wind Fann and Associated Collection Substation and Electric Interconnection System ,. Prepared for IBERDROlA RENEWABlES Iberdrola Renewables and Buffalo Ridge II LLC Prepared by --.... HDR Engineering Inc. 701 Xenia Avenue South Suite 600 Minneapolis, MN 55416 October 2008 BUFFALO RIDGE II WIND FARM SOUTH DAKOTA FACILITY PERMIT ApPLICATION Table ofContents EXECUTIVE SUMMARy 1 COMPLETENESS CHECKLIST 5 1.0 NAMES OF PARTICIPANTS (ARSD 20:10:22:06) 15 2.0 NAME OF OWNER AND MANAGER (ARSD 20:10:22:07) 15 3.0 PURPOSE OF, AND DEMAND FOR, THE WIND ENERGY FACILITY AND TRANSMISSION FACILITY (ARSD 20:10:22:08) 16 3.1 WIND REsOURCE AREAS 16 3.2 RENEWABLE POWER DEMAND 17 3.3 TRANSMISSION CAPACITY 19 4.0 ESTIMATED COST OF THE WIND ENERGY FACILITY AND TRANSMISSION FACILITY (ARSD 20:10:22:09) 20 5.0 GENERAL SITE DESCRIPTION (ARSD 20:10:22:11, 33.02, 34 AND 35) 20 5.1 WIND FARM FACILITY 20 5.2 TRANSMISSION FACILITY 22 5.3 WIND TuRBINE GENERATORS 23 5.4 WIND TuRBINE ToWERS 25 5.5 WIND TuRBINE FOUNDATIONS 25 5.6 GENERATOR STEP-UP TRANSFORMER AND TRANSFORMER FOUNDATIONS 26 5.7 ACCESS ROADS 26 5.8 O&M FACILITY 27 5.9 METEOROLOGICAL TOWERS AND SODAR UNITS 27 5.10 TEMPORARY LAYDOWN/STOCKPILE AREAS AND BATCHPLANT 27 5.11 ELECTRIC COLLECTOR SYSTEM, COLLECTION SUBSTATION AND INTERCONNECTION FACIUTIES (ARSD 20:10:22:34 AND 35) 28 5.11.1 34.5 kV Collection System 28 5.11.2 115 kVTransmission une 30 5.11.3 Project Substations 32 5.11.4 Improvements to Brookings County Substation 33 5.12 CONSTRUCTION, SITE STABILIZATION, AND MAINTENANCE PROCEDURES 33 5.12.1 Construction Methodology 33 6.0 ALTERNATE SITES AND SITING CRITERIA (ARSD 20:10:22:12) 36 6.1 GENERAL PROJECT LOCATION SELECTION 36 6.2 WIND REsOURCE AND LAND AVAILABILITY 36 6.3 TRANSMISSION 38 6.4 SITE CONFIGURATION ALTERNATIVES 39 6.5 LACK OF RELIANCE ON EMINENT DOMAIN POWERS 40 7.0 ENVIRONMENTAL INFORMATION (ARSD 20:10:22:13) 41 8.0 EFFECT ON PHYSICAL ENVIRONMENT (ARSD 20:10:22:14) 41 8.1 EXISTING PHYSICAL ENVIRONMENT 41 IBERDROLA RENEWABLES PAGEi OCTOBER 2008 BUFFALO RIDGE II WIND FARM SOUTH DAKOTA FACILITY PERMIT ApPLICATION 8.1.1 Geology 41 8.1.2 Soil Type 43 8.1.3 Seismic Risks 43 8.2 FACIUTYIMPACTS 43 8.2.1 Potential for Impacts to geologic and soil resources 43 8.2.2 Geological Constraints on Design, Construction and Operation 45 9.0 EFFECT ON HYDROLOGY (ARSD 20:10:22:14, 20:10:22:15) 46 9.1 EXISTING HYDROLOGY 46 9.1.1 Hydrogeology 46 9.1.2 Surface Water Resources 46 9.1.3 Floodplains 47 9.1.4 NPS Nationwide Rivers Inventory 47 9.1.5 Impaired Waters 47 9.2 FACIUTY IMPACTS 48 9.2.1 Effect on Current or Planned Water Use .48 9.2.2 potential for Surface and Groundwatet Impacts .49 10.0 EFFECT ON TERRESTRIAL ECOSYSTEMS (ARSD 20:10:22:16) 52 10.1 EXISTING TERRESTRIAL ECOSYSTEM 52 10.1.1 Natural Communities 52 10.1.2 Wildlife 57 10.1.3 Sensitive Species 59 10.2 IMPACTS TO TERRESTRIAL SySTEMS 62 10.2.1 Vegetation 62 10.2.2 Wetlands 66 10.2.3 Wildlife 67 10.2.4 Sensitive Species 69 11.0 EFFECT ON AQUATIC ECOSYSTEMS (ARSD 20:10:22:17) 71 11.1 EXISTING AQUATIC ECOSySTEM 71 11.2 IMPACTS TO AQUATIC ECOSYSTEMS AND MITIGATION 71 12.0 LAND USE (ARSD 20:10:22:18) 73 12.1 EXISTING LAND USE 73 12.2 EXISTING NOISE 74 12.3 EXISTING AESTHETICS 75 12.4 LAND USE IMPACTS ANALySIS 76 12.4.1 Displacement 76 12.4.2 Recreational Impacts 76 12.4.3 Noise Analysis 76 12.4.4 Aesthetic Impacts 77 12.4.5 Electromagnetic Intetference 79 13.0 LOCAL LAND USE CONTROLS (ARSD 20:10:22:19) 81 14.0 WATER QUALITY (ARSD 20:10:22:20) 83 IBERDROLA RENEWABLES PAGE ii OCTOBER 2008 BUFFALO RIDGE II WIND FARM SOUTH DAKOTA FACILIlY PERMIT ApPLICATION 15.0 AIR QUALITY (ARSD 20:10:22:21) 84 15.1 EXISTING AIR QUAUTY 84 15.2 AIR QUAUTY IMPACTS 84 16.0 TIME SCHEDULE (ARSD 20:10:22:22) 86 17.0 COMMUNITY IMPACT (ARSD 20:10:22:23) 87 17.1 EXISTING SOCIOECONOMIC AND COMMUNITY REsOURCES 87 17.1.1 Communities 87 17.1.2 Commercial and industrial Sector 88 17.1.3 Transportation 89 17.1.4 Cultural Resources 90 17.2 SOCIOECONOMIC AND COMMUNITY IMPACTS 91 17.2.1 Community Impacts 91 17.2.2 Community safety 93 17.2.3 Property Values 93 17.2.4 Agricultural Impacts 94 17.2.5 Transportation Impacts 94 17.3 CULTURAL RESOURCE IMPACTS 95 18.0 EMPLOYMENT ESTIMATES (ARSD 20:10:22:24) 96 19.0 FUTURE ADDITIONS AND MODIFICATIONS (ARSD 20:10:22:25) 96 20.0 ALTERNATIVE ENERGY SOURCES (ARSD 20:10:22:30) 96 21.0 DECOMMISSIONING OF WIND ENERGY FACILITIES 96 22.0 RELIABILITY AND SAFETY (ARSD 20:10:22:33.02) 98 22.1.1 Wind Farm Facility 98 22.1.2 115 kV Transmission Line 99 23.0 ADDITIONAL INFORMATION IN APPLICATION (ARSD 20:10:22:36) 101 23.1 PERMITS AND ApPROVALS 101 23.2 AGENCY CONSULTATION AND PUBLIC SCOPING PROCESS I03 23.3 PUBLIC AND AGENCY COMMENTS 104 23.4 ApPLICANT'S BURDEN OF PROOF - 49-4IB-22 105 24.0 TESTIMONY AND EXHIBITS (ARSD 20:10:22:39) 106 24.1 LIST OF PREPARERS 106 24.2 ApPLICANT VERIFICATION 107 24.3 DEFINITIONS AND ABBREVIATIONS 108 25.0 REFERENCES 110 IBERDROLA RENEWABLES PAGE iii OCTOBER 2008 BUFFALO RIDGE II WIND FARM SOUTH DAKOTA FACILITY PERMIT ApPLICATION List ofTables Table 1 Completeness Checklist 5 Table 2 Midwest Wind Power 17 Table 3 Sections within the Buffalo Ridge II Wind Farm Project Boundary 20 Table 4 Sections Containing Proposed Wind Farm Project Facilities 21 Table 5 Sections crossed by Proposed 115 kV Transmission Une .23 Table 6 Wind Turbine Characteristics 23 Table 7 Anticipated Project Substation Components 32 Table 8 Gravel Pits 42 Table 9 Summary ofLand Cover Types within Project Area 52 Table 10 Noxious Weeds 55 Table 11 NWI Wetlands 56 Table 12 Acreage ofDirect or Indirect Impacts within Each Vegetation Class - Wind Farm Project ...................................................................................................................................................................65 Table 13 Common Noise Sources and Levels 74 Table 14 Demographic Characteristics of Facility Area 88 Table 15 Area Roads 89 Table 16 Estimated Operation and Maintenance Job Classifications 93 Table 17 Ust ofPotential Permits or Approvals 101 Appendices Appendix A Figures A Appendix B Site Characterization Study B Appendix C Agency Letters and Responses C Appendix D Dakota Skipper Survey Summary .0 Appendix E Brookings County Zoning Ordinance, Article 23, Wind Energy System (WES) Requirements E Appendix F Turbine Noise Analysis Technical Memo F Appendix G Cultural Resources G Appendix H Decommissioning Report.. H lBERDROLA RENEWABLES PAGE iv OcrOBER 2008 BUFFALO RIDGE II WIND FARM SOUTH DAKOTA FACILITY PER,.\iIT ApPUCATION EXECUTIVE SUMMARY Buffalo Ridge II LLC (the Applicant), a wholly owned subsidiary ofIberdrola Renewables, Inc.', (IBR) proposes to construct and operate the Buffalo Ridge II Wind Farm (project) on up to 77 acres dispersed throughout portions of up to 77 sections ofland in northeastern Brookings County and southeastern Deuel County, South Dakota, north and east of the City ofWhite. The Project will have a nameplate capacity of up to 306 megawatts (MW) and a net operating capacity of between approximately 1,045,000 and 1,152,000 MW hours per year (MWh/yr). The purpose of this Project is to develop the identified wind resource in the Brookings and Deuel counties area to meet a portion of the regional demand for renewable power. The Project will consist ofconstructing, operating, and maintaining: • Up to 2041.5 MW, 153 2.0-MW, 145 2.1-MW, or 127 2.4 MW wind turbine generators (WTGs) • Access roads to each WTG • Underground and overhead 34.5 kilovolt (kV) electric collector lines connecting the WTGs •A 210MW and a 96MW Project collection substation, identified as BRII-North and BRII-South, respectively. •A Project Operations and Maintenance (O&M) facility • An approximately 13-mile long 115 kilovolt (kV) overhead transmission line connecting the BRII-Northsubstation to Xcel Energy's Brookings County substation • Upgrades to the Brookings County substation • One to two permanent met towers • One SODAR unit The Project proposes an interconnection with Xcel Energy's Brookings County substation. This Application provides infortnation on the existing resources and potential environmental consequences from the Project on the following resources: • Physical (geology, economic deposits, soils) • Hydrology (water) 1 Please note that PPM Energy, Inc. has changed its name to Iberdrola Renewables. Inc. IBERDROLA RENEWABLES PAGE 1 OCTOBER 2008 BUFFALO RlDGE II WIND FARM SOUTH DAKOTA FACILITY PERMIT ApPLICATION • Terrestrial ecosystems (vegetation, wetlands, wildlife, threatened and endangered species) • Aquatic ecosystems • Land use (agriculture, residential, displacement, noise, aesthetics, electromagnetic intetference, safety and health) • Water quality • Air quality • Communities (socioeconomics, cultural resources) The Project is not expected to have impacts on the existing physical environment (geology, economic mineral resources, or soils).