UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Duke Power Company, LLC Project Nos. 2698-033, 2686-032, 2602-007, and 2601-007

North Carolina

NOTICE OF AVAILABILITY OF DRAFT ENVIRONMENTAL ASSESSMENT

(May 10, 2006)

In accordance with the National Environmental Policy Act of 1969, as amended, and Federal Energy Regulatory Commission (Commission) regulations (18 CFR Part 380), Commission staff reviewed the applications for new major licenses for the East and West Fork projects, a subsequent license for the Bryson Project, and the application for license surrender for the Dillsboro Project. We prepared a draft combined environmental assessment (EA) on the proposed actions. The East and West Fork and Dillsboro projects are located on the Tuckasegee River in Jackson County, North Carolina. The Bryson Project is located on the Oconaluftee River (a tributary to the Tuckasegee River) in Swain County, North Carolina.

In this draft EA, Commission staff analyze the probable environmental effects of implementing the projects and conclude that approval of the projects, with appropriate staff-recommended environmental measures, would not constitute a major federal action significantly affecting the quality of the human environment.

Copies of the draft EA are available for review in Public Reference Room 2-A of the Commission’s offices at 888 First Street, NE, Washington, DC. The draft EA also may be viewed on the Commission’s Internet website () using the “eLibrary” link. Additional information about the project is available from the Commission’s Office of External Affairs at (202) 502-6088, or on the Commission’s website using the eLibrary link. For assistance with eLibrary, contact or call toll-free at (866) 208-3676; for TTY call (202) 502-8659.

Any comments on the draft EA should be filed within 30 days of the date of this notice and should be addressed to Magalie R. Salas, Secretary, Federal Energy Regulatory Commission, 888 First Street, NE, Washington, DC 20426. Please reference the specific project and FERC Project No. on all comments. Comments may be filed electronically via the Internet in lieu of paper. See 18 CFR 385.2001(a) (1) (iii) and the instructions on the Commission’s website under the “e-Filing” link.

Project Nos. 2698-033 et al -2-

For further information, please contact Carolyn Holsopple at (202) 502-6407 or at .

Magalie R. Salas

Secretary


DRAFT

ENVIRONMENTAL ASSESSMENT

FOR HYDROPOWER LICENSES

Tuckasegee Projects

East Fork Hydroelectric Project

FERC Project No. 2698-033

West Fork Hydroelectric Project

FERC Project No. 2686-032

Dillsboro Hydroelectric Project

FERC Project No. 2602-007

Bryson Hydroelectric Project

FERC Project No. 2601-007

North Carolina

Federal Energy Regulatory Commission

Office of Energy Projects

Division of Hydropower Licensing

888 First Street, NE

Washington, DC 20426

May 2006


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TABLE OF CONTENTS

SUMMARY xiii

I. APPLICATIONS 1

II. PURPOSE OF ACTION AND NEED FOR POWER 2

A. Purpose of Action 2

B. Need for Power 3

III. PROPOSED ACTION AND ALTERNATIVES 4

A. East Fork Project 4

1. Proposed Action 4

a. Project Facilities: 4

b. Existing and Proposed Project Operations: 6

c. Description of Project Boundary: 7

d. Project Safety: 8

e. Duke’s Proposed Environmental Measures: 8

2. Proposed Action with Additional Staff-recommended Measures 13

3. No Action 14

B. west fork project 14

1. Proposed Action 14

a. Project Facilities: 14

b. Existing and Proposed Project Operations: 15

c. Description of Project Boundary: 16

d. Project Safety: 17

e. Duke’s Proposed Environmental Measures: 17

2. Proposed Action with Additional Staff-recommended Measures 21

3. No Action 21

C. dillsboro surrender 21

1. Proposed Action 21

a. Project Facilities: 21

b. Existing and Proposed Project Operations: 22

c. Description of Project Boundary: 22

d. Project Safety: 22

e. Duke’s Proposed Environmental Measures: 22

3. No Action 24

D. Bryson Project 24

1. Proposed Action 24

a. Project Facilities: 24

b. Existing and Proposed Project Operations: 25

c. Description of Project Boundary: 25

d. Project Safety: 25

e. Duke’s Proposed Environmental Measures: 26

2. Proposed Action with Additional Staff-recommended Measures 27

3. No Action 27

E. Alternatives Considered but Eliminated from Detailed Study 27

1. Federal Government Takeover 27

2. Nonpower License 28

3. Project Retirement 28

IV. CONSULTATION AND COMPLIANCE 28

A. Consultation 28

1. Scoping 29

a. East Fork Project: 29

b. West Fork Project: 29

c. Dillsboro Surrender: 30

d. Bryson Project: 31

2. Interventions 31

3. Comments on the Settlement Agreement 33

4. Ready for Environmental Analysis Notice 35

B. Compliance 35

1. Water Quality Certification 35

2. Section 18 Fishway Prescriptions 36

3. Section 10(j) Recommendations 36

4. Section 4(e) Conditions 37

5. Endangered Species Act 38

6. National Historic Preservation Act (Section 106) 39

V. ENVIRONMENTAL ANALYSIS 39

A. GENERAL DESCRIPTION of the tuckasegee watershed 39

B. Scope of cumulative EFFECTS Analysis 41

1. Geographic Scope 42

2. Temporal Scope 42

C. Proposed action and action alternatives 42

1. Geology and Soils 42

a. Affected Environment: 42

b. Environmental Effects: 44

c. Unavoidable Adverse Effects: 45

2. Water Quantity and Quality 45

a. Affected Environment: 45

b. Environmental Effects: 65

c. Cumulative Effects: 97

d. Unavoidable Adverse Effects: 98

3. Aquatic Resources 99

a. Affected Environment: 99

b. Environmental Effects: 111

c. Unavoidable Adverse Effects: 145

d. Cumulative Effects: 145

4. Terrestrial Resources 146

a. Affected Environment: 146

b. Environmental Effects: 166

c. Unavoidable Adverse Effects: 174

5. Threatened and Endangered Species 174

a. Affected Environment: 174

b. Environmental Effects: 177

c. Unavoidable Adverse Effects: 183

6. Land Use and Aesthetics 184

a. Affected Environment: 184

b. Environmental Effects: 192

c. Unavoidable Adverse Effects: 205

7. Recreational Resources 205

a. Affected Environment: 205

b. Environmental Effects: 227

c. Cumulative Effects: 261

d. Unavoidable Adverse Effects: 262

8. Cultural Resources 262

a. Affected Environment: 262

b. Environmental Effects: 266

c. Unavoidable Adverse Effects: 269

D. No-action Alternative 269

VI. DEVELOPMENTAL ANALYSIS 269

A. East Fork Project 270

1. Power and Economic Benefits of the Proposed Project 270

2. Power and Economic Benefits of the Staff-recommended Alternative 270

3. Power and Economic Benefits of the No-action Alternative 272

B. West Fork Project 289

1. Power and Economic Benefits of the Proposed Project 289

2. Power and Economic Benefits of the Staff-recommended Alternative 289

3. Power and Economic Benefits of the No-action Alternative 289

C. DILLSBORO Project 306

1. Power and Economic Benefits of the Proposed Project 306

2. Power and Economic Benefits of Alternative 1 307

3. Power and Economic Benefits of Alternative 2 307

4. Power and Economic Benefits of the No-action Alternative 307

5. Comparison of Alternatives 307

D. Bryson Project 308

1. Power and Economic Benefits of the Proposed Project 308

2. Power and Economic Benefits of the Staff-recommended Alternative 308

3. Power and Economic Benefits of the No-action Alternative 309

VII. COMPREHENSIVE DEVELOPMENT AND RECOMMENDED ALTERNATIVE 317

A. RECOMMENDED ALTERNATIVE 317

1. East Fork Project 318

a. Measures Proposed by Duke: 318

b. Additional Measures Recommended by Staff: 322

2. West Fork Project 322

a. Measures Proposed by Duke: 322

b. Additional Measures Recommended by Staff: 326

3. Dillsboro Surrender 326

a. Measures Proposed by Duke: 326

4. Bryson Project 328

a. Measures Proposed by Duke: 328

b. Additional Measures Recommended by Staff: 329

B. DISCUSSION 329

1. Shoreline Management Plans (East Fork, West Fork, and Bryson) 329

2. Trash Removal Plan 330

3. Compliance Monitoring/Reporting 330

4. Historic Property Management Plans 331

5. Change in Project Boundaries 332

6. Lake Levels 333

7. Sediment Management at Project Reservoirs 333

8. Minimum Flow Agreements in the Tuckasegee River Mainstem and Bypassed Reaches 334

9. Recreational Flows from East Fork and West Fork Powerhouses 335

10. Recreational Flows from Thorpe dam 336

11. Recreational Facilities 337

12. Public Information 340

13. Dam and Powerhouse Removal 341

14. Appalachian Elktoe Transplantation 341

15. Bat Removal 342

16. Monitoring - Pre, During, and Post-Dam Removal 342

17. Site Restoration/Recreational Facilities 343

18. Cultural Resources 343

19. ROR Operations 343

20. Maintenance Flow during Reservoir Refill 344

21. Long-term Sediment Management 344

22. Wood Duck Nesting Boxes 345

23. Recreational Facilities 345

24. Proposed Measures not Recommended by Staff 346

VIII. RECOMMENDATIONS OF FISH AND WILDLIFE AGENCIES 346

1. Recommendations Pursuant to Section 10(j) of the FPA 347

2. Recommendations Pursuant to Section 10(a) of the FPA 358

IX. CONSISTENCY WITH COMPREHENSIVE PLANS 359

X. FINDING OF NO SIGNIFICANT IMPACT 361

XI. LITERATURE CITED 361

XII. LIST OF PREPARERS 365

APPENDIX A—FIGURES 367

APPENDIX B—PRELIMINARY 4(E) TERMS AND CONDITIONS 1


LIST OF FIGURES

Figure 1. Project location A-1

Figure 2. Hydraulic configuration of the Tuckasegee Projects A-2

LIST OF TABLES

Table 1. Tennessee Creek development inflows in cubic feet per second. 47

Table 2. Bear Creek development inflows in cfs. 48

Table 3. Cedar Cliff development inflows in cfs 48

Table 4. Estimated existing flow along the bypassed reaches of the East Fork Project in cfs 49

Table 5. Spillage at East Fork development for the year 1971 49

Table 6. Water use classifications for waters of the East Fork Project 51

Table 7. State of North Carolina water quality standards for selected parameters of concern for the Tuckasegee Projects 51

Table 8. DO concentrations (mg/l) in the East Fork reservoirs in September 2000 52

Table 9. Thorpe development inflows in cfs. 55

Table 10. Tuckasegee development inflows in cfs. 55

Table 11. Estimated flow along the bypassed reaches of the West Fork Project under current conditions 56

Table 12. Dillsboro Project inflows in cfs. 59

Table 13. Bryson Project inflows in cfs. 62

Table 14. Proposed and existing water level management regime for the East Fork Project 112

Table 15. Proposed and existing water level management regime for the West Fork Project 114

Table 16. Percentage of the maximum habitat quantity that is provided by the proposed minimum flow plus estimated September accretion flow. Focus species and reaches are from the Duke IFIM study of the Tuckasegee River downstream of the Cedar cliff powerhouse 120

Table 17. Percentage of the maximum habitat quantity that is provided by the proposed minimum flow plus estimated September accretion flow. Focus species and reaches are from the Duke IFIM study of the Wolf Creek and Tanasee Creek bypassed reaches 123

Table 18. Estimated September accretion flows in the Duke IFIM study reaches of the West Fork Tuckasegee River. 129

Table 19. North Carolina rare, threatened, and endangered wildlife species documented at the East Fork Project 155

Table 20. North Carolina rare, threatened, and endangered wildlife species documented at the West Fork Project 160

Table 21. VQO classifications for East Fork Project Area. (Source: FS, 1994) 189

Table 22. Recreation flow schedule using a Taintor gate at 247

Table 23. Staff assumptions for the economic analysis of the East Fork, West Fork, Dillsboro, and Bryson projects. 270

Table 24. Summary of the annual net benefits for the applicant’s proposed action, applicant’s proposed action with additional or alternative staff-adopted measures, and the no-action alternative, for the East Fork Project. 272

Table 25. Summary of capital, annual costs, and total annualized costs for environmental measures proposed by the applicant and recommended by staff and others for the East Fork Project. 273

Table 26. Summary of the annual net benefits for the applicant’s proposed action, applicant’s proposed action with additional or alternative staff-adopted measures, and the no-action alternative, for the West Fork Project 290

Table 27. Summary of capital, annual costs, and total annualized costs for environmental measures proposed by the applicant and recommended by staff and others for the West Fork Project. 291

Table 28. Summary of the costs for the Duke’s proposed action, alternative 1, and alternative 2 for the Dillsboro Project. 308

Table 29. Summary of the annual net benefits for the applicant’s proposed action, applicant’s proposed action with additional or alternative staff-adopted measures, and the no-action alternative, for the Bryson Project. 309

Table 30. Summary of capital, annual costs, and total annualized costs for environmental measures proposed by the applicant and recommended by staff and others for the Bryson Project. 310

Table 31. Fish and wildlife agency section 10(j) recommendations for the East Fork and West Fork projects. (Source: Staff) 347

Table 32. Fish and wildlife agency section 10(j) recommendations for the Dillsboro Surrender 351

Table 33. Fish and wildlife agency section 10(j) recommendations for the Bryson Project 351


ACRONYMS AND ABBREVIATIONS

µg/l micrograms per liter

ADA Americans with Disabilities Act

AIR additional information request

APE area of potential effects

AW American Whitewater Affiliation

BBS breeding bird survey

BIA Bureau of Indian Affairs

°C degrees Celsius

CCC Carolina Canoe Club

cfs cubic feet per second

Commission Federal Energy Regulatory Commission

Corps United States Army Corps of Engineers

DO dissolved oxygen

Duke Duke Power Company, LLC

EA environmental assessment

EBCI Eastern Band of Cherokee Indians

EPT Ephemeroptera, Plecoptera, and Trichoptera taxa

ESA Endangered Species Act

FERC Federal Energy Regulatory Commission

FPA Federal Power Act

FOLGA Friends of Lake Glenville Association

FS United States Department of Agriculture, Forest Service

FWS United States Fish and Wildlife Service

GCDC Glenville Community Development Club

HPMEP hydro project maintenance and emergency protocol

HPMP Historic Properties Management Plan

HQW high quality waters

IFIM instream flow incremental methodology

Interior United States Department of the Interior

kV kilovolt

kW kilowatts

kWh kilowatt-hours

LIP low inflow protocol

LRMP Land and Resource Management Plan

mg/l milligrams per liter

MOA Memorandum of Agreement

MW megawatts

MWh megawatt-hours

National Register National Register of Historic Places

NCDENR North Carolina Department of Environment and Natural Resources

NCDWQ North Carolina Department of Environment and Natural Resources, Division of Water Quality

NCNHP North Carolina Natural Heritage Program

NCWRC North Carolina Wildlife Resources Commission

NERC North American Electric Reliability Council

NFS National Forest System

NGO non-governmental organization

NGSSR normal generation schedule to support recreation

NHPA National Historic Preservation Act

NP&L Nantahala Power & Light

NRI Nationwide Rivers Inventory

NTU nephelometric turbidity unit

O&M operation and maintenance

PA programmatic agreement

PETS proposed endangered threatened species

PLC programmable logic controller

REA ready for environmental analysis

RM river mile

ROR run-of-river

ROW right-of-way

SA Settlement Agreement

SERC Southeastern Electric Reliability Council

SHPO State Historic Preservation Officer

SWCD Soil and Water Conservation District

TCST Tuckasegee Cooperative Stakeholder Team

TGA Tuckasegee Gorge Association

THPO Tribal Historic Preservation Officer

TVA Tennessee Valley Authority

USGS United States Geological Survey

VQO visual quality objective

WUA weighted usable area

WNCA Western North Carolina Alliance


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viii


SUMMARY

On January 26, 2004, Duke Power Company, LLC (Duke) filed applications with the Federal Energy Regulatory Commission (Commission or FERC) to relicense the existing 23.1- megawatt (MW) East Fork Hydroelectric Project (FERC No. 2698-033) and the existing 18.1-MW West Fork Project (FERC No. 2686-032). The East and West Fork projects are located on the Tuckasegee River in Jackson County, North Carolina. The West Fork Project does not affect any federal lands. The East Fork Project occupies 23.15 acres of United States Department of Agriculture, Forest Service (FS) land (Nantahala National Forest). The estimated average annual generation is 94,710 megawatt-hours (MWh) at the East Fork Project and 95,474 MWh at the West Fork Project.

On June 1, 2004, Duke filed an application for the surrender of the existing 0.225-MW Dillsboro Project (FERC No. 2602-007) located on the Tuckasegee River in Jackson County, North Carolina. There are no federal lands within the project boundary. The Dillsboro Project generates 912 MWh per year on average.

On November 7, 2003, Duke filed an application to relicense the existing 0.98-MW Bryson Project, located on the Oconaluftee River in Swain County, North Carolina. The project occupies no federal lands and generates 5,534 MWh of electricity per year on average.

On January 26, 2004, Duke also filed the Tuckasegee Cooperative Stakeholder Team (TCST) Settlement Agreement (SA) pertaining to the East Fork, West Fork, and Dillsboro projects. The TCST SA was signed by Duke and 21 other stakeholder parties.

On June 16, 2005, a group of municipal and local stakeholders (Community Stakeholders[1]) filed an alternative SA, which adopted many of the provisions of the TCST SA, deleted many, and substituted others. This SA differed fundamentally from the TCST SA in its requirement to retain Dillsboro dam.