FERC Issues Order Issuing Original License re Pershing County Water Conservation District, Nevada’s Humboldt River Hydropower Project Under P-14327

Targeted News Service

WASHINGTON, Jan. 31 -- The U.S. Department of Energy'sFederal Energy Regulatory Commission issued the text of the following delegated order:

Pershing County Water Conservation District, Nevada

Project No. 14327-000

ORDER ISSUING ORIGINAL LICENSE

(January 31, 2014)

INTRODUCTION

1. On June 26, 2013, the Pershing County Water Conservation District, Nevada (District or licensee), filed, and supplemented on September 9, 2013, pursuant to Part I of the Federal Power Act (FPA), an application for an original minor license to construct, operate, and maintain its proposed Humboldt River Hydropower Project No. 14327 (project). The 0.75-megawatt (MW) project would be located at the U.S. Department of the Interior (Interior), Bureau of Reclamation's (Reclamation) Rye Patch Dam, located on the Humboldt River in Pershing County, Nevada. The project would occupy 0.25 acre of federal land under the jurisdiction of Reclamation. 2. As discussed below, this order issues an original license for the project.

BACKGROUND

3. On August 14, 2013, Commission staff notified the District that its application was deficient and gave it 30 days to correct the identified deficiencies and provide certain items of additional information that staff needed to evaluate the project. The District provided the required information on September 9, 2013. On September 20, 2013, the Commission issued a public notice accepting the license application for filing. The notice, which was published in the Federal Register on September 30, 2013, established November 19, 2013, as the deadline for filing motions to intervene and protests, comments, terms and conditions, recommendations, and prescriptions. The deadline for reply comments was January 4, 2014. The notice indicated that Commission staff waived scoping because it determined that the issues to be addressed in its Environmental Assessment had been adequately identified during the pre-filing period for the application, and no new issues were likely to be identified through additional scoping. Interior filed comments and recommendations on November 14, 2013. No other comments or recommendations were received. 5. Commission staff prepared an environmental assessment (EA), which is attached to this order.

6. The comments and recommendations have been fully considered in determining whether, and under what conditions, to issue this license. PROJECT DESCRIPTION

A. Reclamation Project

7. The project will be located at Reclamation's Rye Patch Dam and Reservoir, an irrigation storage facility on the Humboldt River in northwest Nevada, located 22 miles upstream of Lovelock, Nevada. Rye Patch Dam and Reservoir are part of Reclamation's Humboldt River irrigation project. Reclamation transferred operation and maintenance of this irrigation project to the District in 1941. Irrigation is the only federally-authorized purpose of the dam.

8. The Rye Patch dam is an earthen dam that is 1,074 feet long and 78 feet high with a crest elevation of 4,136 feet above mean sea level (msl). The dam includes a concrete spillway 110 feet wide and 353 feet long. Five steel radial gates, 17 feet high by 20 feet wide, discharge spillway flow. The outlet works of the dam include a trash rack that covers the entrance to a 12-foot-diameter, 472-foot-long tunnel leading to two high pressure slide gates that control flow into two parallel 48-inch-diameter steel discharge pipes. The two 48-inch-diameter steel pipes, which operate independently, carry water through the dam, and currently discharge water to the dam's stilling basin. The District proposes to use one of the 48-inch-diameter steel pipes as a penstock. The other steel pipe will be used as an auxiliary outlet to bypass the turbine to release water in excess of the turbines rated capacity or to release water when the turbine is not operating. Combined, the two steel pipes can release 1,000 cubic feet per second (cfs) of water into the spillway stilling basin.

B. Current Operation

9. The Rye Patch dam impounds a reservoir (Rye Patch reservoir) approximately 21 miles long, with a surface area of 11,400 acres at a normal maximum water surface elevation of 4,140 feet msl and a gross storage capacity of 171,000 acre feet of water. 10. The Rye Patch reservoir stores winter and spring runoff from the Humboldt River and releases water from storage for irrigation from March through September. Water enters the dam's intake structure at the bottom of the reservoir on the upstream face of the dam and passes through the concrete tunnel to a gate control chamber located inside the center of the dam. From there, the water enters the two steel discharge pipes that pass through the dam to the outlet control house. The water is then discharged directly to the existing stilling basin located immediately below the dam and then back to the Humboldt River. Water for irrigation is withdrawn further downstream from a series of low head diversion dams. Currently there is no power generation at Rye Patch dam.

C. Proposed Hydropower Facilities

11. The proposed hydropower project will use the Rye Patch dam, gates, and steel discharge pipes. However, because the Commission can only license the non-federal aspects of the project, the dam and reservoir will not be project works.

12. The proposed hydropower project facilities include: (1) an 18-foot by 18-foot powerhouse to be located in an existing parking area immediately downstream of the dam on the west side of the spillway; (2) a new 750-kilowatt generator to be installed within the powerhouse and connected to a new Kaplan turbine via a driveshaft; (3) the Kaplan turbine which will be installed outside of the powerhouse and connected to an existing 48-inch-diameter steel discharge pipe; (4) a second 48-inch-diameter existing steel pipe that will be used to bypass flow past the turbine; (5) a new 24.9-kilovolt, 9,360-foot-long primary transmission line; and (6) appurtenant facilities. The project will have an annual generation of 2,900 megawatt-hours.

D. Project Boundary

13. A project boundary encloses lands necessary for the safe operation and maintenance of the project. The District's proposed project boundary and maps included with the application are inconsistent and do not properly encompass the lands necessary for operation and maintenance of the project. As discussed further below, Article 203 requires the District to file revised exhibit G drawings.

E. Proposed Project Operation

14. The District will operate the project in a run-of-release mode (Article 401). The District proposes no changes in the dam's discharge operations or quantities, and will operate the project within the constraints of the dam's irrigation release operation responsibilities. As described above, water currently passes through the dam via two 48-inch diameter steel pipes. One of these steel pipes will serve as the penstock for the project's turbine. The other steel pipe will be used as a bypass pipe. After passing through the penstock and turbine, located at the base of the downstream face of the dam, water will discharge directly to the existing stilling basin located immediately below the dam and then back to the Humboldt River. There is no riverine bypassed reach.

15. The average annual flow at the project site is 247 cfs. Flows generally peak in May (636 cfs monthly average) and are at their lowest in November (34 cfs monthly average). The District will generate power between March and September when the dam releases are between 100-400 cfs. The District will release flows less than 100 cfs or greater than 400 cfs directly through the bypass pipe (Article 406). F. Proposed Measures

16. In addition to the operational measures described above, the District proposes a number of environmental measures for the protection and enhancement of soils, fishery, wildlife, and terrestrial resources at the project.

17. To reduce erosion and sedimentation, the spread of noxious weeds, and disturbance to wildlife during project construction the District would implement best management construction practices, which are also required by the water quality certification (WQC). Additionally, to reduce negative impacts to fishery resources, the District proposes to implement a pre-operation flush cycle prior to turbine operations to insure that fish are flushed through the turbines before operations commence (Article 406). The District also proposed to perform turbine maintenance during periods of low flow to avoid the discharge of lubricants and pollutants to surface waters (Article 407).

SUMMARY OF LICENSE REQUIREMENTS

18. As summarized below, this license, which authorizes 0.75 MW of renewable energy, requires a number of measures to protect and enhance soils, fishery, terrestrial, cultural, and aesthetic resources.

19. To protect soils from eroding, the license requires use of best management practices during construction. If straw bales are selected as a best management practice, the license requires that the bales be weed free.

20. To protect fishery resources, the license requires the District to release flows less than 100 cfs or greater than 400 cfs directly through the bypass pipe, and, prior to turbine operations, to implement a pre-operation flush cycle to evacuate fish from project works.

21. To protect raptors from electrocution, the license requires that any modification and/or upgrade to the existing transmission line for construction of the proposed primary transmission line be in accordance with current raptor protection standards and Avian Power Line Interaction Committee (APLIC) standards.

22. To protect aesthetic resources, the license requires the District to use appropriate colors and landscaping for the proposed powerhouse that will minimize effects on aesthetics.

23. To protect cultural resources, the license requires the District to stop all land-clearing and land-disturbing activities and consult with the appropriate agencies to determine the need for any cultural resource studies or measures if the District discovers previously unidentified cultural resources during the course of constructing, maintaining, or developing project works or other facilities at the project.

WATER QUALITY CERTIFICATION

24. Under section 401(a)(1) of the Clean Water Act (CWA), the Commission may not issue a license authorizing the construction or operation of a hydroelectric project unless the state water quality certifying agency either has issued water quality certification for the project or has waived certification by failing to act on a request for certification within a reasonable period of time, not to exceed one year. Section 401(d) of the CWA provides that the certification shall become a condition of any federal license that authorizes construction or operation of the project.

25. On September 4, 2013, the Nevada Division of Environmental Protection (Nevada DEP) issued a WQC for the project that includes four conditions set forth in Appendix A of this order and incorporated into the license (see Ordering Paragraph E).

26. The certification includes requirements to: (1) take photographs that document conditions before, during, and after construction and submit them to the Bureau of Water Quality Planning (BWQP) following project completion, and use best management practices to prevent erosion, control sediment, and protect water quality; (2) use weed free straw bales if they are selected as a best management practice; (3) obtain review and approval by BWQP of any modifications to the project prior to implementation; and (4) follow all conditions of the Nevada Division of Environmental Protection's Temporary Authorization To Discharge Permit (Construction/Dewatering Permit) or any other permit issued by Nevada Division of Environmental Protection for the project.

SECTION 18 FISHWAY PRESCRIPTIONS

27. Section 18 of the FPA provides that the Commission shall require the construction, maintenance, and operation by a licensee of such fishways as may be prescribed by the Secretary of the Interior or the Secretary of Commerce, as appropriate. No fishway prescriptions or reservations of authority were filed under section 18 of the FPA.

NATIONAL HISTORIC PRESERVATION ACT

28. Under section 106 of the NHPA and its implementing regulations, federal agencies must take into account the effect of any proposed undertaking on properties listed or eligible for listing in the National Register (defined as historic properties) and afford the Advisory Council on Historic Preservation a reasonable opportunity to comment on the undertaking. This generally requires the Commission to consult with the State Historic Preservation Officer (SHPO) to determine whether and how a proposed action may affect historic properties, and to seek ways to avoid or minimize any adverse effects.

29. The EA concludes that activities involving the construction and installation of the proposed powerhouse, generator, modifications to the transmission line, and appurtenant facilities, will have no adverse effect on historic properties. This is consistent with the finding of no adverse effect to historic properties in the District's historic properties survey report that was submitted to Reclamation for changes to the Humboldt River irrigation project (Corbett and Hardy 2012) , and Reclamation's draft EA (Bureau of Reclamation 2012). The Nevada SHPO also concurs with the results of the report and Reclamation's draft EA finding of no adverse effects to historic properties. 30. In the unlikely event that during construction any archeological or historic resource is inadvertently discovered, Article 405 requires the District to stop construction and consult with the Nevada SHPO and Reclamation.

RECOMMENDATIONS OF FEDERAL AND STATE FISH AND WILDLIFE AGENCIES PURSUANT TO SECTION 10(j) OF THE FPA

31. Section 10(j) of the FPA requires the Commission, when issuing a license, to include conditions based on recommendations submitted by federal and state fish and wildlife agencies pursuant to the Fish and Wildlife Coordination Act, to "adequately and equitably protect, mitigate damages to, and enhance fish and wildlife (including related spawning grounds and habitat)" affected by the project. Neither the U.S. Fish and Wildlife Service nor the Nevada Department of Wildlife filed section 10(j) recommendations for the project.

SECTION 10(a)(1) OF THE FPA

32. Section 10(a)(1) of the FPA requires that any project for which the Commission issues a license be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce; for the improvement and utilization of waterpower development; for the adequate protection, mitigation, and enhancement of fish and wildlife; and for other beneficial public uses, including irrigation, flood control, water supply, recreation, and other purposes.

A. Department of Interior Recommendations

33. Interior filed comments and recommendations but did not specifically identify the recommendations as section 4(e) conditions on behalf of Reclamation. Therefore, these recommendations are considered under the broad public interest standard of section 10(a)(1) of the FPA, and are discussed below.

34. Interior recommends: that Reclamation review the design of the hydroelectric project in all its stages; a risk assessment be completed based on the final design; and verification that the ability to evacuate water up to the designed maximum flows is not hindered in the event of an emergency. Pursuant to a 1981 Memorandum of Understanding between the Commission and Reclamation, seven special articles are included in licenses for hydroelectric projects to be developed at Reclamation facilities.

35. Article 306 affords Reclamation an opportunity to review and approve facility design and construction. Article 307 requires the District to file approved cofferdam construction drawings and specifications as well as a copy of the letter(s) of approval. Article 308 requires the District to enter into an agreement with Reclamation to coordinate its plans for access to the site. Article 309 states Reclamation's right to periodic and continuous inspections of the project. Article 310 requires the District to enter into a Memorandum of Agreement with Reclamation on a project operating plan. Article 311 states the District will have no claim under this license against the United States arising from the effect of any changes made in the operation or reservoir levels of the Reclamation project. Article 312 requires the District to have written documentation of approval of construction plans and specifications for the project. Articles 306 through 312 should address Interior's recommendations.

B. Raptor Protection

36. The District proposes to upgrade the existing transmission line by utilizing the existing right of way and poles, and adding a new line to the current poles capable of sending project power to the grid. Because the transmission line will be a licensed project facility, the District will be responsible for protecting avian species from any potential hazards associated with the line. To prevent or limit such hazards, Article 402 requires that any modifications or upgrades to the existing transmission line be in accordance with current raptor protection standards and Avian Power Line Interaction Committee standards.

C. Aesthetics Protection

37. Because the proposed powerhouse would be located approximately 350 feet from a campground and may be visible from Rye Patch Reservoir Road, Article 404 requires the use of colors and landscaping in the design of the powerhouse that closely match the existing structures and natural environment to minimize the visual impact of the new facilities.

D. Agreement with Reclamation

38. As stated above, the District operates Rye Patch dam and reservoir under the jurisdiction of Reclamation. For the project being licensed, the District is subject to the authority of Reclamation with respect to the timing or magnitude of the flow releases and management of the reservoir's surface elevation. Article 310 requires the District to submit an operating plan to Reclamation for approval and enter into an operating Memorandum of Agreement with Reclamation describing the detailed operation of the powerhouse acceptable to Reclamation.

E. Project Boundary

39. Article 203 requires the District to file revised exhibit G drawings. These revised drawings must show a project boundary that encloses only: (1) the 16-foot by 16-foot powerhouse; (2) the 9,360-foot-long existing primary transmission line; and (3) all appurtenant facilities. The Commission can only license the non-federal aspects of the project; therefore Reclamation's dam and reservoir must not be included in the project boundary. The proposed boundary must begin immediately downstream of the Rye Patch dam and encompass the powerhouse, a portion of the Humboldt River, appurtenant facilities, and include lands over which the transmission line will run to its connection to the grid via an existing power line within a right of way owned by NV Energy. The application for the proposed project states that the project would occupy 0.25 acre of federal land administered by Reclamation; however, this figure will need to be reevaluated after the project boundary is redrawn.

F. FERC Form 80 Recreation Report

40. The Licensed Hydropower Development Recreation Report (Form 80) collects recreation usage data on recreation facilities at a project through the term of the license. Because the project will not include the reservoir, would not affect current recreational use, and has little to no potential for creating new recreation facilities or opportunities, the license is exempt from filing the Form 80 during the term of its license (Article 403).

G. Project Operation Compliance Monitoring

41. The District proposes to operate the project in a run-of-release mode and only during the irrigation months (March through September). However, the District did not propose any method for monitoring compliance with these operational requirements. Monitoring project flows and generation would enable the Commission to verify how flows are being used at the project. To demonstrate compliance, Article 401 requires the District to file a project operation compliance monitoring plan, for Commission approval, that specifies: how operating the project in a run-of-release mode and generating power only between March and September will be monitored and verified; the types of monitoring gauges to be used, and the methods of calibration and recording for each gage; and procedures for maintaining logs and reporting compliance.

TRANSFER OF TITLE OF DAM AND RESERVOIR TO DISTRICT

42. In 2002, Congress authorized the Secretary of the Interior to "convey all right, title, and interest in and to the land and features of the Humboldt Project" to the District, the State of Nevada, Pershing County, and Lander County in the Humboldt Project Conveyance Act (Act), Pub. L. 107-282 (2002). However, prior to any conveyance, section 808 of the Act requires the Secretary to complete all actions as are required by the National Environmental Policy Act, the Endangered Species Act, and all other applicable laws, including, among others, the National Historic Preservation Act and the Archaeological Resources Protection Act. In its September 9, 2013 response to staff's August 14, 2013 additional information request, the District stated that the conveyance of title to Reclamation's Humboldt River irrigation project, including Rye Patch dam, from Reclamation to the District is in process. According to the District, the required congressional action, payment for the land, an environmental report, and land swaps with the state and county have been completed; however, negotiation with the State Historic Preservation Office (SHPO) regarding Indian artifact sites around the reservoir is not complete.

43. As described above, the Rye Patch dam and reservoir are part of Reclamation's larger Humboldt River irrigation project and, as federal facilities they are not included in the license. However, should the conveyance of the land and features of the Humboldt River irrigation project be completed during the term of this license, Article 205 requires the District to notify the Commission of the title transfer and file an application to amend its license to include the dam and reservoir as licensed project works. To the extent the title to the facilities is transferred to the District and other entities as well, the District will have to obtain from the other entities the rights to the facilities necessary for it to carry out its responsibilities as a licensee. ADMINISTRATIVE PROVISIONS

A. Annual Charges

44. The Commission collects annual charges from licensees for administration of the FPA. Article 201 provides for the collection of funds for the administration of the FPA and for use of a government dam. As noted above, the project would occupy about 0.25 acres of federal land administered by Reclamation. The Commission does not assess a land use charge for a licensee's use of federal lands adjoining or pertaining to federal dams or other structures. Rather, it assesses the charge for the use of a government dam.

B. Exhibit F and G Drawings

45. The Commission requires licensees to file sets of approved project drawings on microfilm and in electronic file format. Article 202 requires the filing of the Exhibit F drawings. The Exhibit G drawings are not approved because they currently include features that will not be licensed as part of this project such as the dam and reservoir and do not include the primary transmission line right of way. Article 203 requires the filing of revised Exhibit G drawings.

C. Project Land Rights Progress Report

46. The Commission's regulations require Exhibit G map(s) to identify any federal lands, non-federal lands owned in fee by the applicant, and lands over which the applicant has acquired or plans to acquire rights to occupancy and use other than fee title, including rights acquired or to be acquired by easement or lease within the project boundary. The Exhibit G filed as part of the application for license indicates the primary transmission line will utilize the existing poles and right of way of NV Energy's transmission line. Standard Article 5 set forth in Form L-17 requires the licensee to acquire title in fee or the right to use in perpetuity all lands, other than lands of the United States, necessary or appropriate for the construction, maintenance, and operation of the project, within five years. In order to monitor compliance with Article 5, Article 206 requires the licensee to file no later than four years after license issuance, a report detailing its progress on acquiring title in fee or the necessary rights to all lands within the project boundary. The report shall include specific documentation on the status of the rights that have been acquired as of the filing date of the progress report, and a plan and schedule to acquire all remaining land prior to the five-year deadline.

C. Project Financing

47. To ensure that there are sufficient funds available for project construction, operation, and maintenance, Article 204 requires the licensee to file for Commission approval documentation of project financing for the construction, operation, and maintenance of the project at least 90 days before starting any ground-disturbing activities that are associated with the project.

D. Use and Occupancy of Project Lands and Waters

48. Requiring a licensee to obtain prior Commission approval for every use or occupancy of project land would be unduly burdensome. Therefore, Article 408 allows the licensee to grant permission, without prior Commission approval, for the use and occupancy of project lands for such minor activities as landscape planting. Such uses must be consistent with the purposes of protecting and enhancing the scenic, recreational, and environmental values of the project.

E. Start of Construction

49. Section 13 of the FPA requires the licensee to commence construction within two years from the issuance date of the license, which deadline may be extended once but no longer than for two additional years. Furthermore, the licensee must obtain all of the necessary approvals from Reclamation and the Commission prior to the start of project construction. Therefore, the burden is on the licensee to obtain these approvals and commence construction within the time frames required under section 13 and as specified in this license. The licensee is expected to work diligently with Reclamation and other relevant entities to secure the necessary approvals to allow it to timely commence project construction and pursue it to completion.

50. Article 301 requires the licensee to commence construction of the project works within two years from the issuance date of the license and complete construction of the project within five years from the issuance date of the license.

F. Review of Final Plans and Specifications

51. Article 302 requires the licensee to provide the Commission's Division of Dam Safety and Inspection San Francisco Regional Office (D2SI-SFRO) with copies of plans and specifications and supporting design documents at least 60 days prior to the start of construction. The submittal must include a Quality Control and Inspection Program, a temporary Construction Emergency Action Plan, and a Soil Erosion and Sediment Control Plan. Article 303 requires the District to provide the Commission's D2SI-SFRO with cofferdam construction drawings.

52. Where new construction or modifications to the project are involved, the Commission requires licensees to file revised drawings of project features as-built. Article 304 requires the filing of these drawings.

53. To ensure the safety of the public during recreational activities at or near the project site, Article 305 requires the District to provide to the Commission a Public Safety Plan.

STATE AND FEDERAL COMPREHENSIVE PLANS

54. Section 10(a)(2)(A) of the FPA, requires the Commission to consider the extent to which a project is consistent with federal or state comprehensive plans for improving, developing, or conserving a waterway or waterways affected by the project. Under section 10(a)(2)(A), federal and state agencies filed 14 comprehensive plans that address various resources in Nevada, one of which is applicable to the project. Commission staff reviewed this plan. No conflicts were found.

SAFE MANAGEMENT, OPERATION, AND MAINTENANCE OF THE PROJECT

55. Staff reviewed the District's preliminary plans to build the project as described in the license application. The project will be safe when constructed, operated, and maintained in accordance with the Commission's standards and provisions of this license.

NEED FOR POWER

56. To assess the need for power, staff looked at the needs in the operating region in which the project is located. Project power will be used to meet regional electrical demand. The project will be located in the Basin (BASN) subregion of the Western Electricity Coordinating Council (WECC) region of the North American Electric Reliability Council (NERC). According to NERC, summer peak demand in the region is expected to increase at an average rate of 1.6 percent per year over the 10-year planning period from 2012-2022. The project's power and contribution to the region's diversified generation mix will help meet a need for power in the region.

PROJECT ECONOMICS

57. In determining whether to issue a license for a hydroelectric project, the Commission considers a number of public interest factors, including the economic benefits of project power. Under the Commission's approach to evaluating the economics of hydropower projects, as articulated in Mead Corp., the Commission uses current costs to compare the costs of the project and likely alternative power with no forecasts concerning potential future inflation, escalation, or deflation beyond the license issuance date. The basic purpose of the Commission's economic analysis is to provide a general estimate of the potential power benefits and the costs of a project, and of reasonable alternatives to project power. The estimate helps to support an informed decision concerning what is in the public interest with respect to a proposed license.

58. In applying this analysis to the Humboldt River Hydropower Project, we have considered two options: the District's proposal and the project as licensed herein. As proposed by the District, the levelized annual cost of operating the project is $137,012 or $47.25/megawatt-hour (MWh). The proposed project will generate an estimated average of 2,900 MWh of energy annually. When Commission staff's estimate of average generation is multiplied by the alternative power cost of $51.72/MWh, staff gets a total value of the project's power of $150,000 in 2013 dollars. To determine whether the proposed project is currently economically beneficial, staff subtracts the project's cost from the value of the project's power. Therefore, in the first year of operation, the project would cost $12,988 or $4.13/MWh less than the likely alternative cost of power. Staff recommended measures would not add significant costs to the project. Therefore, as licensed, the project would also cost $12,988, or $4.13/MWh less than the likely alternative cost of power.

59. In considering public interest factors, the Commission takes into account that hydroelectric projects offer unique operational benefits to the electric utility system (ancillary service benefits). These benefits include the ability to help maintain the stability of a power system, such as by quickly adjusting power output to respond to rapid changes in system load; and to respond rapidly to a major utility system or regional blackout by providing a source of power to help restart fossil-fuel based generating stations and put them back on line.

COMPREHENSIVE DEVELOPMENT

60. Sections 4(e) and 10(a)(1) of the FPA require the Commission to give equal consideration to the power development purposes and to the purposes of energy conservation; the protection, mitigation of damage to, and enhancement of fish and wildlife; the protection of recreational opportunities; and the preservation of other aspects of environmental quality. Any license issued shall be such as in the Commission's judgment will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for all beneficial public uses. The decision to license this project, and the terms and conditions included herein, reflect such consideration.

61. The EA for the project contains background information, analysis of effects, and support for related license articles. Based on the record of this proceeding, including the EA, licensing the Humboldt River Hydropower Project as described in this order will not constitute a major federal action significantly affecting the quality of the human environment. The project will be safe if operated and maintained in accordance with the requirements of this license.

62. Based on this independent review and evaluation of the project, recommendations from the resource agencies and other stakeholders, and the no-action alternative, as documented in the EA, the proposed project, with staff-recommended measures, is found to be best adapted to a comprehensive plan for improving or developing the Humboldt River.

63. This alternative was selected because: (1) the project will provide a beneficial, dependable, and inexpensive source of electrical energy; (2) the required environmental measures will protect soils, fishery resources, terrestrial resources, cultural resources, and aesthetics; and (3) the 0.75 MW of electric capacity comes from a renewable resource that does not contribute to atmospheric pollution.

LICENSE TERM

64. Section 6 of the FPA provides that original licenses for hydropower projects shall be issued for a period not to exceed 50 years. It is the Commission policy to issue a 50-year license for a project located at a federal dam. Accordingly, this license is issued for a term of 50 years.

The Director orders:

(A) This license is issued to the Pershing County Water Conservation District, Nevada (licensee), for a period of 50 years, effective the first day of the month in which this order is issued, to construct, operate, and maintain the Humboldt River Hydropower Project. This license is subject to the terms and conditions of the Federal Power Act (FPA), which is incorporated by reference as part of this license, and subject to the regulations the Commission issues under the provisions of the FPA.

(B) The project consists of:

(1) All lands, to the extent of the licensee's interests in these lands, described in the project description and the project boundary discussion of this order.

(2)Project works consisting of the following facilities: (1) an 18-foot by 18-foot powerhouse to be located in an existing parking area immediately downstream of the dam on the west side of the spillway; (2) a new 750-kilowatt generator to be installed within the powerhouse and connected to a new Kaplan turbine via a driveshaft; (3) the Kaplan turbine which will be installed outside of the powerhouse and connected to an existing 48-inch-diameter steel discharge pipe; (4) a second 48-inch-diameter existing steel pipe that will be used to bypass flow past the turbine; (5) a new 24.9-kilovolt, 9,360-foot-long primary transmission line; and (6) appurtenant facilities.

The project works generally described above are more specifically shown and described by those portions of exhibits A and F shown below:

Exhibit A: The following sections of exhibit A filed on June 26, 2013, and response to additional information filed on September 9, 2013:

Exhibit A, pages 4 through 5 of the application, entitled "Exhibit A" describing the mechanical, electrical and transmission equipment within the application for license.

Exhibit F: The following exhibit F drawings filed on June 26, 2013:

Click here to view: http://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=13451415

(3) All of the structures, fixtures, equipment or facilities used to operate or maintain the project, all portable property that may be employed in connection with the project, and all riparian or other rights that are necessary or appropriate in the operation or maintenance of the project.

(C) Exhibits A and F as described above are approved and made part of the license. The Exhibit G drawings do not conform to Commission regulations and are not approved.

(D) The following sections of the FPA are waived and excluded from the license for this minor project:

4(b), except the second sentence; 4(e), insofar as it relates to approval of plans by the Chief of Engineers and the Secretary of the Army; 6, insofar as it relates to public notice and to the acceptance and expression in the license of terms and conditions of the Act that are waived here; 10(c), insofar as it relates to depreciation reserves; 10(d); 10(f); 14, except insofar as the power of condemnation is reserved; 15; 16; 19; 20; and 22.

(E) This license is subject to the conditions submitted by the Nevada Division of Environmental Protection under section 401(a)(1) of the Clean Water Act, 33 U.S.C. section 1341(a)(1) (2012), as those conditions are set forth in Appendix A to this order.

(F) This license is also subject to the articles set forth in Form L-17 (Oct. 1975), entitled, "Terms and Conditions of License for Unconstructed Minor Project Affecting Lands of the United States" (see 54 F.P.C. 1799 et seq.), as set forth in this order, and the following additional articles:

Article 201. Annual Charges. The licensee shall pay the United States the following annual charges, as determined in accordance with the provisions of the Commission's regulations in effect from time to time:

(a) effective as of the date of commencement of project construction, to reimburse the United States for the cost of administration of Part 1 of the Federal Power Act. The authorized installed capacity for that purpose is 750 kilowatts. Under the regulations currently in effect, projects with authorized installed capacity of less than or equal to 1,500 kW will not be assessed an annual charge; and

(b) to recompense the United States for the use of a government dam.

Article 202. Exhibit F Drawings. Within 45 days of the date of issuance of the license, the licensee shall file the approved exhibit drawings in aperture card and electronic file formats.

(a) Three sets of the approved exhibit drawings shall be reproduced on silver or gelatin 35mm microfilm. All microfilm shall be mounted on type D (3-1/4" X 7-3/8") aperture cards. Prior to microfilming, the FERC Project-Drawing Number (i.e., P-14327-1 through P-14327-7) shall be shown in the margin below the title block of the approved drawing. After mounting, the FERC Drawing Number shall be typed on the upper right corner of each aperture card. Additionally, the Project Number, FERC Exhibit (i.e., F-1, etc.), Drawing Title, and date of this license shall be typed on the upper left corner of each aperture card.

Two of the sets of aperture cards shall be filed with the Secretary of the Commission, ATTN: OEP/DHAC. The third set shall be filed with the Commission's Division of Dam Safety and Inspections (D2SI) San Francisco Regional Office.

(b) The licensee shall file two separate sets of exhibit drawings in electronic raster format with the Secretary of the Commission, ATTN: OEP/DHAC. A third set shall be filed with the D2SI San Francisco Regional Office. Exhibit F drawings must be identified as Critical Energy Infrastructure Information (CEII) material under 18 C.F.R. section 388.113(c) (2013). Each drawing must be a separate electronic file, and the file name shall include: FERC Project-Drawing Number, FERC Exhibit, Drawing Title, date of this license, and file extension in the following format [P-14327-000, F-1, Description, MM-DD-YYYY.TIF]. Electronic drawings shall meet the following format specification:

IMAGERY - black & white raster file

FILE TYPE - Tagged Image File Format (TIFF), CCITT Group 4

RESOLUTION - 300 dpi desired (200 dpi min)

DRAWING SIZE FORMAT - 24" X 36" (min), 28" X 40" (max)

FILE SIZE - less than 1 MB desired

Article 203. Exhibit G Drawings. Within 90 days of the effective date of the license, the licensee shall file, for Commission approval, revised Exhibit G drawings enclosing within the project boundary all principal project works necessary for operation and maintenance of the project, including the right of way for the primary transmission line connecting the power house to the NV Energy transmission line. The Exhibit G drawings must comply with sections 4.39 and 4.41of the Commission's regulations.

Article 204. Documentation of Project Financing. At least 90 days before starting construction, the licensee shall file with the Commission, for approval, the licensee's documentation for the project financing. The documentation must show that the licensee has acquired the funds, or commitment for funds, necessary to construct the project in accordance with this license. The licensee shall not start any project construction or ground-disturbing activities prior to approval of the project financing plan.

The financial statements must be prepared in accordance with generally accepted accounting principles and signed by an independent certified public accountant. The licensee shall not commence project construction associated with the project before the filing is approved.

Article 205. Title Transfer. If the federal government transfers title to the lands and features of Reclamation's Humboldt River irrigation project to a non-federal entity or entities, the licensee shall, within one year from the effective date of the transfer, file an application to amend its license to include the dam and reservoir as licensed project works.

Article 206. Project Land Rights Progress Report. No later than four years after license issuance, the licensee shall file a report with the Commission describing the status of acquiring title in fee or the rights for all the lands within the project boundary. The report must provide an overview map of each parcel and summary table identifying the licensee's rights over each parcel within the project boundary. The report shall also include specific supporting documentation showing the status of the land rights on all parcels of land within the project boundary that: (1) have been acquired up to the date of filing of the report, including pertinent deeds, lease agreements, and/or bill of sale information that specifically verify the licensee's rights; and (2) the licensee's plan and schedule for acquiring all remaining project lands prior to the five-year deadline, including a history of actions taken, current owner information, the type of ownership to be acquired whether in fee or by easement, and the timeline for completing property acquisition. Article 301. Start of Construction. The licensee shall commence construction of the project works within two years from the issuance date of the license and shall complete construction of the project within five years from the issuance date of the license.

Article 302. Plans and Specifications. At least 60 days prior to the start of construction, the licensee shall submit three copies of its plans and specifications and supporting design document to the Division of Dam Safety and Inspections (D2SI)-San Francisco Regional Engineer, and two copies to the Commission (one of these shall be a courtesy copy to the Director, D2SI). The submittal to the D2SI-San Francisco Regional Engineer must also include a Quality Control and Inspection Program, including a provision for dust control. The submittal must also include a Temporary Construction Emergency Action Plan and a Soil Erosion and Sediment Control Plan. The licensee may not begin construction until the D2SI-San Francisco Regional Engineer has reviewed and commented on the plans and specifications, has determined that all preconstruction requirements have been satisfied, and has authorized the start of construction. Article 303. Cofferdam and Deep Excavation Construction Drawings. Should construction require cofferdams or deep excavations, the licensee shall: (1) review and approve the design of contractor-designed cofferdams and deep excavations prior to the start of construction; and (2) shall ensure that construction of cofferdams and deep excavations is consistent with the approved design. At least 30 days before starting construction of any cofferdams or deep excavations, the licensee shall submit one copy to the Commission's Division of Dam Safety and Inspections (D2SI)-San Francisco Regional Engineer and two copies to the Commission (one of these copies shall be a courtesy copy to the Commission's Director of D2SI), of the approved cofferdam and deep excavation construction drawings and specifications, and the letters of approval.

Article 304. As-Built Drawings. Within 90 days of completion of all construction activities authorized by this license, the licensee shall file for Commission approval, revised exhibits A, F, and G, as applicable, to describe and show the project facilities as built. A courtesy copy shall be filed with the Division of Dam Safety and Inspections (D2SI)-San Francisco Regional Engineer, the Director of D2SI, and the Director of the Division of Hydropower Administration and Compliance.

Article 305. Public Safety Plan. Within 60 days from the issuance of this order, the licensee shall submit one copy to the Commission's Division of Dam Safety and Inspections (D2SI)-San Francisco Regional Engineer and two copies to the Commission (one of these copies shall be a courtesy copy to the Commission's Director, D2SI) of a Public Safety Plan. The plan shall include an evaluation of public safety concerns at the project site, and assess the need for the installation of safety devices or other safety measures. The submitted plan should include a description of all public safety devices and signage, as well as a map showing the location of all public safety measures. For guidance on preparing public safety plans the licensee can review the Guidelines for Public Safety at Hydropower Projects on the FERC website.

Article 306. Facility Design and Construction. The design and construction of those permanent and temporary facilities, including reservoir impounding cofferdams and deep excavations, that would be an integral part of, or that could affect the structural integrity or operation of the Government project shall be done in consultation with and subject to the review and approval of the Bureau of Reclamation (Reclamation). The Reclamation's review of the cofferdams will be in addition to the licensee's review and approval of the final plans, and shall in no way relieve the licensee of responsibility and liability regarding satisfactory performance of the cofferdams. Within 90 days from the issuance date of the license, the licensee shall furnish the Reclamation and the Commission's Division of Dam Safety and Inspections-San Francisco Regional Engineer, a schedule for submission of design documents and the plans and specifications for the project. If the schedule does not afford sufficient review and approval time, the licensee, upon request of the Reclamation, shall meet with the Reclamation and FERC staffs to revise the schedule accordingly.

Article 307. Review of Contractor Designs. The licensee shall review and approve the design of contractor-designed cofferdams and deep excavations, other than those approved according to Article 306, prior to the start of construction and shall ensure that construction of cofferdams and deep excavations is consistent with the approved design. At least 30 days prior to start of construction of the cofferdam, the licensee shall file with the Bureau of Reclamation, one copy of the approved cofferdam construction drawings and specifications and a copy of the letter(s) of approval.

Article 308. Agreement with Bureau of Reclamation. The licensee shall within 90 days from the issuance date of the license, enter into an agreement with the Bureau of Reclamation (Reclamation) to coordinate its plans for access to and site activities on lands and property administered by Reclamation so that the authorized purposes, including operation of the Federal facilities, are protected. In general, the agreement shall not be redundant with the Commission's requirements contained in this license, shall identify the facility, and the study and construction activities, as applicable, and terms and conditions under which studies and construction will be conducted. The agreement shall be mainly composed of reasonable arrangements for access to Reclamation site to conduct studies and construction activities, such access rights to be conditioned by Reclamation as may be necessary to protect the federally authorized project purposes and operations. Should the licensee and Reclamation fail to reach an access agreement, the licensee shall refer the matter to the Commission for resolution.

Article 309. Periodic and Continuous Inspections by Bureau of Reclamation. The construction, operation and maintenance of the project works that, in the judgment of the Bureau of Reclamation (Reclamation) may affect the structural integrity or operation of Reclamation project shall be subject to periodic or continuous inspections by Reclamation. Any construction, operation and maintenance deficiencies or difficulties detected by Reclamation inspection shall be immediately reported to the Division of Dam Safety and Inspection (D2SI)-San Francisco Regional Engineer. Upon review, the (D2SI)-San Francisco Regional Engineer shall refer the matter to the licensee for appropriate action. In cases when construction, operation, or maintenance practices or deficiencies may create a situation posing imminent danger to the structural integrity and safety of Reclamation project, Reclamation inspector has the authority to stop construction or maintenance while awaiting the resolution of the problem. The licensee shall immediately inform the D2SI-San Francisco Regional Engineer of the circumstances surrounding the cessation of construction, operation, or maintenance activities. The licensee shall not resume construction, operation, or maintenance activities until notified by the D2SI-San Francisco Regional Engineer that the problem or situation has been resolved.

Article 310. Operating Plan. The licensee shall, at least 60 days prior to start of operation, submit for approval a regulating plan to the Bureau of Reclamation (Reclamation) describing (a) the designed mode of hydropower operation, (b) reservoir flow diversion and regulation requirements for operation of Reclamation project during construction as established by Reclamation, and (c) integration of the operation of the hydroelectric facility into Reclamation's emergency action plan. In addition, the licensee, prior to start of power plant operation, shall enter into an operating Memorandum of Agreement (MOA) with Reclamation describing the detailed operation of the powerhouse acceptable to Reclamation. The MOA shall specify any restrictions needed to protect the primary purposes of the Reclamation project. The Division of Dam Safety and Inspection (D2SI)-San Francisco Regional Engineer shall be invited to attend meetings regarding the agreement. The MOA shall be subject to revision by mutual consent of Reclamation and licensee as experience is gained by actual project operation. Should the licensee and Reclamation fail to reach an agreement, the matter will be referred to the Director, Office of Energy Projects for resolution. Copies of the regulating plan and signed MOA between Reclamation and the licensee and any revision thereof shall be filed with the Commission.

Article 311. No Claim. The licensee shall have no claim under this license against the United States arising from the effect of any changes made in the operation or reservoir levels of the Bureau of Reclamation project.

Article 312. Bureau of Reclamation Written Approval. The licensee shall provide the Division of Dam Safety and Inspection (D2SI)-San Francisco Regional Engineer two copies of all correspondence between the licensee and the Bureau of Reclamation (Reclamation). The (D2SI)-San Francisco Regional Engineer shall not authorize construction of any project work until Reclamation's written approval of construction plans and specifications has been received by the (D2SI)- Regional Engineer.

Article 401. Operation Compliance Monitoring Plan. At least 60 days before the start of project operation, the licensee shall file with the Commission, for approval, an operation compliance monitoring plan that describes how the licensee will comply with the operational requirements of this license. The plan shall include, but not necessarily be limited to, the following:

(a) provisions to monitor compliance with the operational requirements of the license, including implementing the operating plan required by Article 310, operating the project in a run-of-release mode, and only generating power between March through September;

(b) a description of the steps the licensee will take to ensure run-of-release operation continues during planned and emergency shutdowns;

(c) a description of all gages and/or measuring devices that will be used to monitor operation compliance

(d) the method of calibration of each gage and/or measuring device;

(e) the frequency of recording for each gage and/or measuring device;

(f) procedures for recording, maintaining, and reporting the monitoring data to the Commission;

(g) a provision to maintain a log of project operations; and

(h) a schedule of reporting project compliance/non-compliance for normal operation and in the event of an emergency.

The licensee shall prepare the plan after consultation with the Bureau of Reclamation (Reclamation). The licensee shall include with the plan documentation of consultation, copies of comments and recommendations on the completed plan after it has been prepared and provided to Reclamation, and specific descriptions of how Reclamation's comments are accommodated by the plan. The licensee shall allow a minimum of 30 days for Reclamation to comment and to make recommendations before filing the plan with the Commission. If the licensee does not adopt a recommendation, the filing shall include the licensee's reasons, based on project-specific information.

The Commission reserves the right to require changes to the plan. Project operation shall not begin until the licensee is notified by the Commission that the plan is approved. Upon Commission approval, the licensee shall implement the plan, including any changes required by the Commission.

Article 402. Raptor Protection. Modifications and/or upgrades to any existing transmission line shall be in accordance with current raptor protection standards and Avian Power Line Interaction Committee (APLIC) standards set forth in the following protection guidelines: (1) APLIC's Suggested Practices for Raptor Protection on Power Lines: The State of the Art in 2006; and (2) APLIC's Reducing Avian Collisions with Power Line: The State of the Art in 2012.

Article 403. FERC Form 80 Exemption. There is little or no potential for recreation facilities within the project boundary. Therefore, upon the effective date of the license, the licensee is exempt from 18 section C.F.R. 8.11, the filing of the FERC Form 80 recreation report, for the Humboldt River Hydropower Project.

Article 404. Aesthetics. The license shall design the powerhouse and appurtenant facilities to match the setting and existing facilities in the vicinity of the project. This design shall include, at a minimum, the color of the powerhouse to be in the tan or light brown color family and use native landscaping vegetation to screen the powerhouse as appropriate. Photographic documentation shall be submitted to the Commission within 60 days of completion of the powerhouse and appurtenant facilities to ensure all new facilities comply with this article. Based on this documentation, the Commission reserves the right to require changes to the powerhouse and appurtenant facilities to protect aesthetic resources.

Article 405. Protection of Undiscovered Cultural Resources. If the licensee discovers previously unidentified cultural resources during the course of constructing, maintaining, or developing project works or other facilities at the project, the licensee shall stop all land-clearing and land-disturbing activities in the vicinity of the resource and consult with the State Historic Preservation Officer (SHPO) and the Bureau of Reclamation (Reclamation) to determine the need for any cultural resource studies or measures. If no studies or measures are needed, the licensee shall file with the Commission documentation of its consultation with the SHPO and Reclamation immediately.

If a discovered cultural resource is determined to be eligible for the National Register of Historic Places (National Register), the licensee shall file for Commission approval a historic properties management plan (HPMP) prepared by a qualified cultural resource specialist after consultation with the Nevada SHPO. In developing the HPMP, the licensee shall use the Advisory Council on Historic Preservation and the Federal Energy Regulatory Commission's Guidelines for the Development of Historic Properties Management Plans for FERC Hydroelectric Projects, dated May 20, 2002. The HPMP shall include the following items: (1) a description of each discovered property, indicating whether it is listed in or eligible to be listed in the National Register; (2) a description of the potential effect on each discovered property; (3) proposed measures for avoiding or mitigating adverse effects; (4) documentation of consultation; and (5) a schedule for implementing mitigation and conducting additional studies. The Commission reserves the right to require changes to the HPMP.

The licensee shall not resume land-clearing or land-disturbing activities in the vicinity of a cultural resource discovered during construction, until informed by the Commission that the requirements of this article have been fulfilled.

Article 406. Fish Protection. To reduce fish entrainment, the District shall (1) release flows less than 100 cfs or greater than 400 cfs directly through the bypass pipe and (2) prior to turbine operations, implement a pre-operation flush cycle to evacuate fish from project works prior to operation.

Article 407. Turbine Maintenance. The licensee shall perform turbine maintenance during periods of low flow to avoid possible discharge of lubricants and pollutants to surface water. Article 408. Use and Occupancy. (a) In accordance with the provisions of this article, the licensee shall have the authority to grant permission for certain types of use and occupancy of project lands and waters and to convey certain interests in project lands and waters for certain types of use and occupancy, without prior Commission approval. The licensee may exercise the authority only if the proposed use and occupancy is consistent with the purposes of protecting and enhancing the scenic, recreational, and other environmental values of the project. For those purposes, the licensee shall also have continuing responsibility to supervise and control the use and occupancy for which it grants permission, and to monitor the use of, and ensure compliance with the covenants of the instrument of conveyance for, any interests that it has conveyed, under this article. If a permitted use and occupancy violates any condition of this article or any other condition imposed by the licensee for protection and enhancement of the project's scenic, recreational, or other environmental values, or if a covenant of a conveyance made under the authority of this article is violated, the licensee shall take any lawful action necessary to correct the violation. For a permitted use or occupancy, that action includes, if necessary, canceling the permission to use and occupy the project lands and waters and requiring the removal of any non-complying structures and facilities.

(b) The type of use and occupancy of project lands and waters for which the licensee may grant permission without prior Commission approval are: (1) landscape plantings; (2) non-commercial piers, landings, boat docks, or similar structures and facilities that can accommodate no more than 10 water craft at a time and where said facility is intended to serve single-family type dwellings; (3) embankments, bulkheads, retaining walls, or similar structures for erosion control to protect the existing shoreline; and (4) food plots and other wildlife enhancement. To the extent feasible and desirable to protect and enhance the project's scenic, recreational, and other environmental values, the licensee shall require multiple use and occupancy of facilities for access to project lands or waters. The licensee shall also ensure, to the satisfaction of the Commission's authorized representative, that the use and occupancies for which it grants permission are maintained in good repair and comply with applicable state and local health and safety requirements. Before granting permission for construction of bulkheads or retaining walls, the licensee shall: (1) inspect the site of the proposed construction, (2) consider whether the planting of vegetation or the use of riprap would be adequate to control erosion at the site, and (3) determine that the proposed construction is needed and would not change the basic contour of the impoundment shoreline. To implement this paragraph (b), the licensee may, among other things, establish a program for issuing permits for the specified types of use and occupancy of project lands and waters, which may be subject to the payment of a reasonable fee to cover the licensee's costs of administering the permit program. The Commission reserves the right to require the licensee to file a description of its standards, guidelines, and procedures for implementing this paragraph (b) and to require modification of those standards, guidelines, or procedures.

(c) The licensee may convey easements or rights-of-way across, or leases of project lands for: (1) replacement, expansion, realignment, or maintenance of bridges or roads where all necessary state and federal approvals have been obtained; (2) storm drains and water mains; (3) sewers that do not discharge into project waters; (4) minor access roads; (5) telephone, gas, and electric utility distribution lines; (6) non-project overhead electric transmission lines that do not require erection of support structures within the project boundary; (7) submarine, overhead, or underground major telephone distribution cables or major electric distribution lines (69-kV or less); and (8) water intake or pumping facilities that do not extract more than one million gallons per day from a project impoundment. No later than January 31 of each year, the licensee shall file three copies of a report briefly describing for each conveyance made under this paragraph (c) during the prior calendar year, the type of interest conveyed, the location of the lands subject to the conveyance, and the nature of the use for which the interest was conveyed.

(d) The licensee may convey fee title to, easements or rights-of-way across, or leases of project lands for: (1) construction of new bridges or roads for which all necessary state and federal approvals have been obtained; (2) sewer or effluent lines that discharge into project waters, for which all necessary federal and state water quality certification or permits have been obtained; (3) other pipelines that cross project lands or waters but do not discharge into project waters; (4) non-project overhead electric transmission lines that require erection of support structures within the project boundary, for which all necessary federal and state approvals have been obtained; (5) private or public marinas that can accommodate no more than 10 water craft at a time and are located at least one-half mile (measured over project waters) from any other private or public marina; (6) recreational development consistent with an approved report on recreational resources of an Exhibit E; and (7) other uses

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