Water Quality Certification

Green Mountain Power

Kingdom Community Wind

Page 1 of 26

DRAFT

Vermont Agency of Natural Resources

Water Quality Certification
(33 U.S.C. §1341)

In the matter of:Green Mountain Power Inc.

163 Acorn Lane

Colchester, VT 05446-6611

APPLICATION FOR KINGDOM COMMUNITY WIND PROJECT

The Secretary (Secretary) of the Vermont Agency of Natural Resources (Agency) has reviewed a water quality certification application filed by Vanasse Hangen Brustlin, Inc.(VHB) on behalf of Green Mountain Power Inc.(GMP) for the Kingdom Community Wind project. The application consists of a copy of the applicant’s Federal Clean Water Act Section 404 permit application filed with the U.S. Army Corps of Engineers on February 14, 2011, with revised materials dated March 28, 2011, and April 12, 2011. Supplemental application materials weresubmitted on April 15, 2011,May 12, 2011, May 27, 2011, and June 10, 2011. Collectively, these materials are referred to as the “Application.”

Information from the Act 248 Proceeding for Public Service Board Docket No. 7628 (30 V.S.A.§ 248), an application for a Vermont Individual Wetland Permit #2008-364 (10 V.S.A. §913 ), and applications for Stormwater Permit #6216-INDC,Stormwater Permit #6216-INDC.1,and Stormwater Permit #6216-INDS,were also available to the Agency for consideration in this matter.

The preliminary water quality certification decision was the subject of a hearing noticed onMay 18, 2011 and held in Lowell on June 20, 2011 pursuant to §13.11 of theVermont Water Pollution Control Permit Regulations (February 26, 1974).

The project involvesthe installation of 21 turbines along the Lowell Mountain ridgeline, and the upgrade of a transmission line from the wind farm to the Jay Tap Switching Station. The project purpose is to construct and operate a windgenerating facility. The project area drains tothe Missisquoi River Basin, and the Riviere Saint-Fancois (Lake Memphremagog), in the towns of Lowell, Westfield and Jay, Vermont.

Findings

Proposed Project

1)The Kingdom Community Wind (KCW) project consists of the construction of a 21-turbine wind farm capable of generating up to 63 megawatts of power. The following summarizes the information found in Appendix 1 of the Application. The project consists of two main components (Wind Farm and Transmission Line) and mitigation.

a)Wind Farm Component:

i)This portion of the project is located in the Town of Lowell from the ridge line of Lowell Mountain down to VT Route 100.

ii)The Wind Farm Component consists of 3.2 miles of ridgeline development on which the wind turbines would be installed in elevation from 2190 to 2640 feet above sea level on a 2400+/- acre parcel (Sheet C-100 in Appendix 3 of the Application). It is estimated the initial life of the generating equipment is approximately 25 years. GMP has a 48-year lease agreement with the landowner.

iii) In addition to the turbine, the Wind Farm Component is comprised of the construction of an access road to the ridgeline (Sheets C-101 – C-107 in Appendix 3 of the Application), crane paths and turbine pads along the ridgeline (Sheet C-108 – Sheet C-118 in Appendix 3 of the Application), construction staging and laydown areas(Detailed Plan Set, Appendix 3 of the Application), implementation of erosion prevention and sediment control measures, installation of a permanent stormwater treatment system (Detailed Plan Set, Appendix 3 of the Application), and 2.76 miles of underground and overhead electric collection system from the ridgeline to VT Route 100 (Appendix 3 of the Application).

iv) Lowell Mountain in the project area is a largely undevelopedmixed hardwood and softwood forest currently in silvicultural use.

v)Wetlands and streams within the Wind Farm Component drain to two major watersheds: the Missisquoi River Basin and the Riviere Saint-Fancois (Lake Memphremagog), all located within the Northern Green Mountain biophysical region.

vi) The Wind Farm Component impacts to streams and wetlands are summarized in Table 1.

vii)Project plans for this portion of the project are located in Appendix 3 of the Application.

b)Transmission Line Component:

i)This portion of the project is located primarily within an existing Vermont Electric Company (VEC) maintained transmission Right-Of-Way (ROW), which transects portion of the Towns of Lowell, Westfield and Jay.

ii)The overhead transmission line is approximately 16.2 miles in length, has generally a 50 foot wide clearing ROW, and is oriented in a south to north alignment.

iii) Approximately 76% (58,388 linear feet) of the upgraded Transmission Line Component will follow existing alignment, and 24% (25,080 linear feet) will be re-aligned to a new ROW.

iv)The majority of the ROW is located within a valley surrounded by the rolling foothills of the abutting Lowell, Belvidere, Buchanan, and Jay Mountains, and bisects a landscape of mixed uses, including rural residential, small business, and agriculture.

v)Wetlands and streams within the Transmission Line Component drain to the Missisquoi River Basin, located in the Northern Green Mountain biophysical region.

vi)The upgraded transmission line will span the Missisquoi River channel in Westfield, just east of the existing Route 100 Bridge over the Missisquoi and just north of the Lowell town line (Sheet 12, Appendix 3 of the Application Materials).

vii)The Transmission Line Component impacts to streams and wetlands are summarized in Table 1.

viii)Project plans for this portion of the project are located in Appendix 3 of the Application (Sheets 6 to 34).

Table 1: Wetland and Stream Impact Summary (From Table 2 of Appendix 1 of the Application).

Project Component / Type of Feature Impacted / Proposed Impact Amount by Type
Permanent (s.f.) / Permanent (Acres) / Temporary (s.f.) / Temporary (Acres) / Secondary (s.f.) / Secondary (Acres) / Total (s.f.) / Total (Acres)
Wind Farm / Wetland / 6,207 / 0.142 / 2,107 / 0.048 / 4,355 / 0.100 / 12,669 / 0.290
Stream / 7,131 / 0.164 / 1,040 / 0.024 / 0 / 0 / 8,171 / 0.17
Transmission Line / Wetland / 89 / 0.00 / 75,704 / 1.74 / 35,724 / 0.82 / 111,517 / 2.56
Total / 13,427 s.f. / 0.31 acres / 78,851s.f. / 1.81acres / 40,079 s.f. / 0.92 acres / 132357 s.f. / 3.03acres

2)Portions of the project that will not have stream or wetland impacts include:

a)The connection of the collection line where it meets VT Route 100 to VEC Lowell #5 substation. This portion of the project uses the existing overhead transmission or roadway ROW for 2.5 miles along VT Route 100 (Detailed Plan Set, Appendix 3 of the Application).

b)The construction of the KCW Substation and Maintenance Building are sited so that they will not impact wetlands or waters (Sheet C-104, Appendix 3 of the Application Materials).

c)The VEC Lowell #5 Substation will be re-built within the footprint of the current VEC Irasburg #21 Substation. The new substation will be upgraded from 34.5kV to 46kV voltage with all components located within the existing substation fence (Sheet 7, Appendix 3 of the Application).

d)The VEC Jay #17 Substation will also be upgraded from 35kV to 46kV voltage. All improvements will be located within the existing substation fence (Sheet 32, Appendix 3 of the Application).

3)Project avoidance and minimization include the following which are described in Appendix 1 of the Application:

a)An alternatives analysis ofthe location of the WindFarm and Transmission Line Components. KCW Alternative Site Analysis in Support of an Application for an Individual Section 404 Permit, prepared by VHB, dated revised March 23, 2011 is located in Appendix 6 of the Application.

b)Wind Farm Component design revisions have reduced cumulative impacts to wetlands and streams from 67,815 square feet of impact to 20,840 square feet of impact.

c)In addition to the 50-foot buffers required for Class II wetlands, design buffers for Class III wetlands and stream riparian zones have been incorporated into the project design to maintain 25 -50 foot setbacks from those aquatic resources providing elevated function and value within the Wind Farm Component. These buffer recommendations were made by VHB, and were based on the Agency’s Riparian Buffer Guidelines for streams, and on an analysis of principal function and value provided using the Highway Methodology for wetlands. Not all impacts to the recommended buffers were avoidable, but rather represented a goal for the designers. Approximately 13.79 acres of buffers for Class III wetlands were recommended, and 0.72 acres of those will be encroached on (5.2%). Approximately 2.66 acres of stream riparian area was included as stream design buffer, and 1.43 acres (53.7%) of those buffers will be encroached on by the project.

i)Additional efforts to avoid and minimize impacts to wetlands and streams are as follows:

1)Crossing at narrow points between aquatic features or increasing fill side slopes to reduce the footprint of disturbance;

2)Reducing the design clearing width of the upgraded Transmission Line Component from 100-feet to 50-feet to reduce the clearing of forested wetlands (reduced by 82%);

3)Limiting permanent new soil disturbance for the 17-mile Transmission Line Component to the placement of new pole structures;

4)Avoidance of any permanent stream crossing on the Transmission Line Component by using temporary bridges to span the Ordinary High Water (OHW) of stream channels;

5)Realignment of the crane path to avoid wetland impacts;

6)Revision of the collector line alignment to reduce wetland clearing;

7)Use of variable road clearing based on resources areas including wetlands;

8)Co-location of the proposed access road within the existing logging road; and

9)Use of timber matting or standard “dry or frozen ground evaluation” procedures to avoid wetland soil disturbance from temporary construction access in wetlands.

d)For those wetland and stream impacts that cannot be avoided by the applicant, the applicant proposes a number of measures to offset impacts to the presumed uses of these wetlands and streams:

i)Implementation of iron seep control plan protocols.

ii)Vegetation maintenance of the upgraded VEC transmission line that will follow practices and procedure outlined in the 2009 Vegetation Management Plan for Vermont Electric Cooperative, which incorporates vegetation maintenance protocols to protect environmentally sensitive transmission ROW resources such as wetlands.

iii)Use of design and construction parameters to ensure aquatic organism passage (where appropriate) on stream crossings.

iv)Use of alternative stormwater treatment practices to minimize land disturbance, maintain watershed hydrology, and effectively treat runoff.

v)Restoration of sections of an existing logging road that will be abandoned.

vi)Use of “wavy“edge trimming on the collector line, and the allowance of woody vegetation not directly under the line to grow to a 15-foot height. Both practices are meant to offset the impacts of clearing for the line on wildlife.

vii)Development of a construction re-vegetation plan to be reviewed and approved by the Agency, to mitigate for habitat fragmenting effects from clearing on the Wind Farm Component. This plan will include details and provisions for implementing procedures to restore vegetative cover to fill slopes following final grading.

viii)Development of a non-native invasive vegetation species monitoring plan to be approved by the Agency, for the purpose of managing the threats posed by the possible introduction of non-native vegetation on the site.

ix)Development of a plan for decommissioning the permanent stormwater treatment and control features and restoring culverted stream crossings to be implemented upon termination of project operations, per approval by the Agency.

x)Development of a plan for decommissioning the Wind Farm Component, particularly the crane path, turbine pads and stormwater treatment and control features along the ridgeline, per approval by the Agency.

4)Mitigation proposed in the federal Section 404 Permit is summarized in Appendix 1 of the Application and consists of:

a)The preservation of aquatic and riparian buffer resources within an approximately 178-acre parcel of land located adjacent to the proposed Wind Farm Component site.

i)Appendix 6 of the Application is a technical memorandum that summarizes the onsite study methods, wetland and stream resources and credit determination methods for the parcel.

ii)The 178-acre parcel will offer up to 169 acres toward mitigation credit for the preservation of wetland resources, upland buffer to wetland, and upland buffer to stream channels. This meets the recommended 15:1 mitigation ratio outlined in 2010 United States Army Corps of Engineers preservation mitigation guidelines. Wetlands and aquatic resources total approximately 23 acres on the 178-acre parcel.

iii)The acreage proposed for preservation is at an elevation between 1,300 feet and 1,700 feet, while average impacts to the Wind Farm Component are around 1,899 feet in elevation. The principal wetland functions and values that will be protected are similar to those impacted including Groundwater Discharge, Wildlife Habitat, and Sediment/Shoreline Stabilization. The 178-acre parcel is currently part of lands actively managed for timber harvesting and is under direct threat of commercial harvesting and/or future development. The parcel is located less than a mile from three contiguous land parcels permanently conserved by The Vermont Land Trust and The Nature Conservancy co-ownership. The parcel will be contiguous with other lands proposed for conservation under the stipulation agreement.

iv)GMP proposes to permanently conserve the 178-acre parcel in perpetuity through implementation of a conservation easement to be held by a third party. The final Conservation Easement with a survey plat depicting preservation area metes and bounds will be filed with the Town of Lowell upon approval of all permits prior to project construction.

b)Reimbursement to the Vermont Green Mountain Club, Inc. for the purchase of the approximately 100-acre Villeneuve Property in Lowell following the approval of all permits, as a form of secondary mitigation.

i)Appendix 6 of the Application describes the Villeneuve Property including reference mapping

ii)Reconnaissance-level mapping shows nearly 6acres of valuable high elevation and beaver flowage wetland resources and 4,700 linear feet of stream channel.

5)As part of the application for a Certificate of Public Good (30 V.S.A.§248), the applicant has entered an agreement with the Agency entitledStipulation Between Green Mountain Power and the Vermont Agency of Natural Resources Regarding Mitigation for Impacts to Bear Habitat, State Significant Natural Communities and from Habitat Fragmentation, State of Vermont Public Service Board (Docket No. 7628), dated February 23, 2011 (Appendix 6 in the Application).

a)Additional mitigation is included in the agreement, particularly to offset impacts to necessary wildlife habitat (primarily black bear forage habitat), significant natural communities (montane spruce fir forest and montane yellow birch-red spruce forest), and overall habitat fragmentation.

b)In addition to the preservation of the 178-acre Parcel 3 (primary water resource mitigation area mentioned above), the applicant will be further protecting onsite lands known as Parcel 1 (292-acres preserved for the life of the project), Parcel 2 (110 acres to be permanently conserved), and Parcel 4 (324 acres along the ridgeline to be permanently conserved following Project decommissioning).

c)Parcels 1, 2 and 4 represent an additional three acres of wetland conservation, and 39,624 linear feet of stream conservation. Approximately 78,240 square feet (1.80 acres) of high elevation wetland are proposed for preservation on Parcels 2 and 4.

d)Totals from all proposed mitigation parcels both onsite (Parcels 1-4) and offsite (Villenueve Parcel) represent 984 total acres of preservation, 27 acres of which are wetlands, and 53,026 linear feet are streams.

Stream Resources

6)The project area includes the Missisquoi River Basin and the Riviere Saint-Fancois (Lake Memphremagog), in the towns of Lowell, Westfield and Jay.

7)Streams potentially impacted by the project include perennial streams, intermittent streams and ephemeral drainages associated with the Missisquoi River Basin (Ace Brook, East Branch Missisquoi), and the Black River which drains to the Riviere Saint-Francois (Lake Memphremagog) watershed (McCleary Brook, Shalney Branch, Rogers Branch and Seaver Branch). Green Mountain Power Kingdom Community Wind - Section 248 Natural Resources Assessment Report dated February 26, 2010 is located in Appendix 4 of the Application, and provides a description of the stream resources on the project site.

8)A summary of impacts to streams and detailed plans related to stream impacts is located in Appendix 5 of the Application. Stream impacts are summarized in Table 2:

Table 2: Summary of impacts to streams

Project Component / Proposed Stream Impact Amount
Permanent (s.f.) / Permanent (Acres) / Temporary (s.f.) / Temporary (Acres) / Secondary (s.f.) / Secondary (Acres) / Total (s.f.) / Total (Acres)
Wind Farm / 7,131 / 0.164 / 1,040 / 0.024 / 0 / 0 / 8,171 / 0.17

9)Stream impacts are limited to the Wind Farm Component, as the transmission line is able to span streams without impacts in the streams’ OHWs. Permanent impacts at the Wind Farm Component site are largely attributable to the placement of fill for access roads, crane paths, turbine pads, operational stormwater management feature construction, and permanent culverts.

Wetland Resources

10) A summary of impacts to all wetland resources is located in Appendix 5 of the Application. Green Mountain Power Kingdom Community Wind - Section 248 Natural Resources Assessment Report dated February 26, 2010 is located in Appendix 4 of the Application, and provides a description of the wetland resources on the site. A summary of wetland impacts is provided in Table 3. Twenty discrete wetland impacts are located on the Wind Farm Component, and 31 are located on the Transmission Line Component.

Table 3: Summary of Wetland Impacts

Project Component / Proposed Wetland Impact Amount
Permanent (s.f.) / Permanent (Acres) / Temporary (s.f.) / Temporary (Acres) / Secondary (s.f.) / Secondary (Acres) / Total (s.f.) / Total (Acres)
Wind Farm / 6,207 / 0.142 / 2,107 / 0.048 / 4,355 / 0.100 / 12,669 / 0.290
Transmission Line / 89 / 0.00 / 75,704 / 1.74 / 35,724 / 0.82 / 111,517 / 2.56
Total / 6,296s.f. / 0.142acres / 77,811 s.f. / 1.83 acres / 40,079s.f. / 0.92acres / 124,186s.f. / 2.589acres

11)Permanent wetland impacts are the result of fill for access roads, crane paths, turbine pads, operational stormwater management feature construction, permanent culverts, and pole placement. Temporary impacts of the Wind Farm Component are clearing areas for the access road or crane paths that will be allowed to revegetate. Temporary impacts of the Transmission Line Component are for the use of swamp matting to access areas to remove or place poles. Secondary impacts for both the Wind Farm and Transmission Line Components represent areas that will be permanently converted from forested wetland to shrub or emergent wetland for transmission line or collector line ROWs.

12)Palustrine wetlands and their contiguous areas that appear on the Vermont Significant Wetland Inventory maps have been designated Class II wetlands by the Water Resources Panel per the Vermont Wetland Rules. In addition, any wetland that meets the presumption of significance in Section 4.6 of the Rules, is also considered a Class II wetland. Any activity in a Class Two wetland or associated 50-foot buffer zone, other than allowed uses specified in Section 6of the Vermont Wetland Rules, requires a Wetland Permit from the Agency (Vermont Wetland Rules, §§6and 9). The Secretary may only grant a permit if an applicant demonstrates that the proposed activity will not have undue adverse impacts on protected wetland functions. In making this determination the project shall be assessed on the basis of both its direct and immediate effects as well as on the basis of any cumulative or on-going effects on the significant wetland (Vermont Wetland Rules §9). Section 5of the Vermont Wetland Rules lists the criteria for determination of the significance of wetland functions and values. Applicants are required to apply the criteria under pre- and post-project conditions to determine if an undue adverse impact is to be expected. There are Class II wetlands and their buffer zones that will be affected by the project.