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Blue Lake Expansion

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This website has been developed for participants and others interested in the proposed expansion of the City and Borough of Sitka’s Blue Lake hydroelectric project [Federal Energy Regulatory Commission (FERC) No. 2230].  The proposed Project expansion will require an amendment to the existing FERC license.  The FERC amendment application process involves extensive consideration of the environmental, engineering and economic aspects of the expansion, resulting in a complex consultation and application process.

 In this site, the Blue Lake Expansion will be referenced as “Expansion”; the FERC license amendment process will be referenced “Amendment”; the City and Borough of Sitka will be reference “City”, and the Blue Lake Project will be referenced “Project”.

  At this site, you will be able to locate information such as:

• Background and rationale for the Expansion and need for license Amendment;
• Detailed descriptions of existing and proposed Project features;
• Descriptions of the applicable FERC regulations and requirements governing license amendments;
• Documentation of the required public participation and stakeholder consultation processes.  

Also available in the website will be dates of upcoming meetings, meeting summaries, and a list of Amendment process milestones and related documents, including informational papers, study plans, study results and amendment application materials, among others.

HOW TO USE THIS WEBSITE

This website has been designed to facilitate access both to status of the overall Amendment process related to the Expansion, and to individual Amendment-related documents. Throughout the website are links, highlighted in blue, which provide direct access to various documents or topics.

Table of Contents

By clicking on the Table of Contents link, the user may access all major Expansion and Amendment-related topics included in this website.  Users familiar with this website’s introductory material may wish to go to Major Expansion Amendment Milestones to track particular documents or stages of the Amendment process.


Website Text Links

Within the text of the various topics are links, highlighted in blue, to documents, schedules and other material related to that topic. All addressable documents are files in pdf format. The pdf files may be downloaded, but are encrypted to prevent their modification or conversion to other file types.

BACKGROUND and RATIONALE FOR BLUE LAKE EXPANSION

Blue Lake Project History

The City & Borough of Sitka owns two hydroelectric projects licensed by the Federal Energy Regulatory Commission (FERC): the Blue Lake Project (FERC No. 2230) and the Green Lake Project (FERC No. 2818). The Blue Lake Project was originally licensed in March, 1958, with a fifty-year license term. The Green Lake Project was originally licensed in April, 1979, also with a fifty-year license term. Essentially all of Sitka’s electrical energy comes from these two projects.
The license for the Blue Lake Project expired on March 31, 2008. Under FERC regulations, the City conducted an extensive process to obtain a new license for the Project (See City website cityofsitka.com/department pages/electric/relicensing).  The relicensing was successful and the new license was issued in July, 2007, to become effective on April 1, 2008.  The new license contained Articles reflecting environmental measures which would be done after the new license became effective.

Need for Expansion

The City, in filing its Notice of Intent (NOI) to seek an amendment for the existing Blue Lake Project FERC license, also submitted a Background and Rationale Document. explaining the general electric energy need for additional renewable electrical generation capacity, and the rationale for expanding the Blue Lake Project at this time.  The reader should review this document in detail, if possible. 
Generally, recent fuel oil cost escalation in Sitka has driven an unforeseen rise in electrical demand because home and business owners have found that electrical energy for heating has become cheaper than oil heating.  Concurrently, recent additions of new fish processing businesses in Sitka significantly increased electrical demand.  These load increases have caused the City to seek additional renewable generation because of the high and ever increasing costs of diesel generation.  The energy need is real and immediate, and continued reliance on diesel generation to address the need would add unacceptable costs to Sitka’s enviably low energy costs.  The Blue Lake Expansion, as explained in detail in background and rationale document is thought to be the most favorable response to the situation.

Existing Blue Lake Project Description

The Project is located approximately 5 miles east of the City of Sitka, Alaska on Sawmill Creek (formerly the Medvetche River). The Project consists of ten major features: the dam; a submerged intake structure; a power conduit; three powerhouses; a switchyard and a primary and two secondary transmission lines, described in more detail the Blue Lake Project Description presented in documents related to relicensing.

Proposed Expansion Element

Generally, the Blue Lake Expansion has two major elements:  1) addition of a third generating turbine near the existing Blue Lake Powerhouse; and 2) raising the existing Project dam by as much as 83 feet.  Together, these two actions would provide 34 gigawatt hours (GWh) of electrical each year, an amount roughly equivalent to 27% of the existing electrical sustems annual energy.

LICENSE AMENDMENT PROCESS

Under FERC regulations, changes to an existing hydroelectric project might require an amendment to the project’s FERC license.  The FERC regulations distinguish among various degrees of proposed change, primarily with respect to whether the installed electrical generation capacity will be changed.  Generally, if there are no proposals to change capacity, or if the proposed capacity change does not exceed 15% of existing installed nameplate capacity, a “non capacity-related” amendment is required.  For proposals involving an increase of more than 15% of existing nameplate capacity, a “capacity-related amendment” is required.  Pre-filing requirements for a non capacity-related amendment are generally less extensive than those for a capacity-related amendment.  The Blue Lake Project Expansion clearly meets the criteria to trigger a capacity-related amendment process. 

Generally, this process involves consultation with Stakeholders (state and federal resource agencies, the public and Non Governmental Organization and special interest groups), development of study plans and conducting of studies, preparation and review of the draft amendment application and submission of a final application, reflecting the recommendations of the Stakeholders, to the FERC.  Of particular note in the capacity-related amendment requirements is the need for “Three Stage Consultation”, as described below.

Three-Stage Consultation Process

The FERC requires that applicants for capacity-related amendments conduct a Three-Stage Consultation Process through which the applicant consults with Stakeholders,  including the public, state and federal resource agencies, Non Governmental Organizations (NGO’s) and others who wish to participate. 

Stage 1

The applicant prepares and distributes an Initial Consultation Document (ICD) describing the existing project and proposals for modifications of project features or operations.  This document is sent to Stakeholders prior to a public meeting convened to present the description of the proposed action, affected environment and proposed mitigation measures as they are known at the time of the meeting. 

The Applicant requests review of the ICD and the proceedings of the meeting, including study specifications from Stakeholders, particularly resource agencies.     Study planning follows, resulting in a set of plans to gather information on such resources as fish, wildlife/vegetation, cultural resources, geology and soils, water resources, and scenic, aesthetic and recreational resources, among others.  Approval of all study plans marks the end of Stage I.

Stage II

Studies are conducted over specified time periods and geographic areas and study reports distributed to Stakeholders.  If necessary relative to the scale of the action, the applicant may conduct Scoping, the process under the National Environmental Policy Act (NEPA) in which Stakeholders comment on environmental issues to be address in the NEPA document, usually an Environmental Assessment (EA).  A draft Amendment Application, including a Preliminary Draft Environmental Assessment (PDEA) is prepared and distributed for review with a 90-day comment period.  After incorporation of comments and preliminary negotiation of terms and conditions for the amended license, the Final Amendment Application, including is prepared.

Stage III

Stage III is marked by submittal of the Final Amendment Application to the FERC, and is the final act of an applicant in the Three-Stage Consultation Process.  After Amendment Application submittal, the FERC reviews the Application and begins its own independent review leading to development of final terms and conditions and issuance of the Order Amending License.

AMENDMENT APPLICATION SCHEDULE

Generally, the timeline for the Amendment Application is as follows:

The FERC Amendment application schedule requirements are shown in the detailed schedule diagrams which depict the FERC process.

CONTACTING THE CITY

If you have any questions regarding the Blue Lake Project Expansion, please do not hesitate to contact:
Charlie Walls, Utility Director
City and Borough of Sitka Electric Department
105 Jarvis Street, Sitka, AK, 99835,

907-747-1870 charlie@cityofsitka.com

STAKEHOLDER LIST

This website will maintain a Mailing List of the names, contact information and affiliations of those who, through their resource agency missions or other interest in the Project, are routinely copied on all Project correspondence. If you wish to be on the Participant list, please contact Mr. Walls at the contact numbers above. The Mailing List will be updated from time to time and kept current through the link in this website Section.

MAJOR EXPANSION AMENDMENT MILESTONES

The major milestones in the Blue Lake Project Relicensing schedule are:

• Notice of Intent and Rationale for Expansion
• Initial Consultation Document and Meeting
• Request to Use Alternative Licensing Process

• Bi-annual Reports Required by ALP

• Scoping
• Study Planning, Execution and Reporting
• Draft Amendment Application and Preliminary Draft Environmental Assessment
• Final Amendment Application
• FERC Draft and Final Environmental Assessments
• Order Issuing Amendment.

These Milestones are described in detail in following Sections, with links to associated documents and other material.

Notice of Intent (NOI) and Rationale for Expansion

The NOI is simply a letter to the FERC Secretary indicating the City’s intent to seek and amendment to the existing license.  Appended to the NOI, was a document providing background and rationale for the Expansion.  The City filed the NOI and Background Document with the FERC on March 10, 2008?. 

Initial Consultation Document

The Initial Consultation Document  (ICD) is a document describing the Project works and operation, the license amendment process and schedule, the existing Project area environment, and expected environmental impact issues and related mitigation or enhancement measures which might relate to the Expansion.  The ICD was distributed to the Stakeholders list o in March, 2008.

Under the 3-Stage Consultation Process, an applicant for amendment must conduct an Initial Consultation Meeting and a site visit early in the amendment application process.  The meeting(s) and site visit.  The Initial Consultation Meetings and site visit are currently scheduled to be held at the places and times shown in the invitation email.

Request to Use Alternative Licensing Process  (ALP)

The City has announced its intention to utilize the Alternative Licensing Process (ALP) (licensing process alternatives.pdf), a process authorized by the FERC to streamline application processes, including those for license amendments.  Under the ALP, the City would conduct certain elements of the National Environmental Policy Act (NEPA) (nepa.pdf) and would prepare a Preliminary Draft Environmental Assessment (PDEA), as described in more detail in later website links.  Use of the ALP retains all of the public participation and independent federal review elements of the Traditional Licensing Process (licensing process alternatives.pdf). 

The City sent a letter requesting use of the ALP to the FERC on March 11, 2008,   accompanied by a Draft Communications Protocol (******.pdf) (CP).  The CP identifies participants and directs communications, meetings, documentation and review of Project documents. 

Bi-annual Reports Required by ALP

The FERC regulations require that applicant’s using the ALP submit status reports every six months from the time of ALP approval. 

Scoping Meeting and Documents

Scoping is a process required under the NEPA (nepa.pdf) of 1969, the objective of which is development of a list of environmental issues to be addressed through the environmental review process of a federal action (such as a capacity-related amendment to a FERC license).  Scoping Process requirements include distribution of Scoping Documents, describing the proposed action and a list of preliminary issues

Scoping is scheduled to be conducted in fall, 2008.

Study Planning, Execution, and Reporting

The Three-Stage Consultation process requires early development of study plans to address potential effects of the Expansion.  Generally, the FERC evaluates effects in certain resources categories, including:

Fish and Aquatic Resources;
Wildlife and Vegetation Resources;
Geology and Soils;
Water Use and Quality;
Cultural Resources;
Scenic and Aesthetic Resources;
Land Use and Recreational Resources;
Socioeconomics Resources;
Threatened and Endangered Species.

Studies might also address Cumulative Effects, or those expected to result from past, present, and reasonable foreseeable future actions within the proposal’s area.

Blue Lake Tributaries and Lakeshore Rainbow Trout Studies

The City began study planning for the Expansion Amendment application in January by conducting a meeting to address effects of the proposed dam raise on rainbow trout in Blue Lake.  Because the Blue Lake trout spawning would be the most likely affected life stage, and because spawning normally occurs in the spring and early summer, it was decided to accelerate study planning for that resource to assure that field studies could be done according to approved study plans beginning as early as April, 2008.

To meet this schedule, the City distributed a Draft Blue Lake Study Plan on 02/07/08, and conducted a study planning meeting in Sitka on 01/23/08.  The meeting proceedings were recorded on video tape, available at the Contact Address.

At the Agency meeting, participants agreed to establish a Blue Lake Tributaries Habitat Work Group to address study needs to access effects of the dam raise in certain Blue Lake tributaries.  The Work Group held a meeting on 03/12/08.  Minutes of that meeting have been reviewed by participants and distributed to the Stakeholder list.  Members of the Work Group are shown in the attendance list of the meeting minutes.

After the Work Group meeting, the City prepared a Blue Lake Habitat Study Plan which is currently under review by Work Group Members.

Wildlife/Vegetation Study Plan

The City distributed a draft Wildlife/Vegetation Study Plan (****.pdf) on April ***, 2008.

Activity in the following study planning areas will be added as the plans are developed.

Geology and Soils;
Water Use and Quality;
Cultural Resources;
Scenic and Aesthetic Resources;
Land Use and Recreational Resources;
Socioeconomics Resources;
Threatened and Endangered Species.

There has been no activity in the following area; material will be added as developed

DRAFT AMENDMENT APPLICATION and PRELIMINARY DRAFT ENVIRONMENTAL ASSESSMENTFINAL AMENDMENT APPLICATION
FERC DRAFT and FINAL ENVIRONMENTAL ASSESSMENTS
ORDER ISSUING AMENDMENT

 

City & Borough of Sitka, Electric Department, 105 Jarvis Street, Sitka, Alaska  99835
Telephone:  907-747-4000; Emergency number (24 hours a day): 907-747-6634 fax: 907-747-3208
Business Hours:  Monday through Friday, 8:00 a.m. to 5:00 p.m.