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Contents of Application for Exemption from Licensing 1 DRAFT APPLICATION FOR EXEMPTION OF SMALL HYDROELECTRIC POWER PROJECT FROM LICENSING (18 CFR §4.107) FOR DENVER WATER’S STRONTIA SPRINGS RESERVOIR HYDROELECTRIC PROJECT, FERC PROJECT NO. 6916 Through this application, the City and County of Denver, acting by and through its Board of Water Commissioners (Denver Water), is seeking an exemption from licensing for its Federal Energy Regulatory Commission (FERC or Commission) hydropower license for the Strontia Springs Reservoir Hydroelectric Project (Project), FERC Project No. 6916. The Commission authorized the 1,087-kilowatt (kW) Project under a 40-year license on January 13, 1984 (see Attachment A). Denver Water is a municipal corporation that provides water to the City and County of Denver, Colorado, and surrounding suburbs. Strontia Springs Reservoir is operated for water supply purposes, with hydroelectric energy produced when Denver Water releases water for deliveries. Denver Water needs to replace the Electrical, Instrumentation and Controls (EI&C) system at the reservoir due to the age and obsolescence of the system, the risk of equipment failure, and the need to comply with the latest design and safety standards at Strontia Springs Reservoir. The replacement of the EI&C system presents an opportunity for Denver Water to also replace the turbine and generator and therefore replace the EI&C system with one that is compatible with increased hydroelectric generation. This proposed amendment to increase the generating capacity will qualify the Project for a small hydroelectric power project exemption. Denver Water’s existing license is effective until 2024, and when there is an unexpired license, FERC will accept an application for an exemption from a licensee per 18 Code of Federal Regulations (CFR) §4.33(d)(1)(ii). Thus, Denver Water is proposing to replace the outdated and unreliable EI&C system with a new system that is designed to operate a new uprated turbine and generator and qualify the Project for a small hydroelectric power project exemption. This proposal is referred to in this application as the “Proposed Exemption.”
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DRAFT APPLICATION FOR EXEMPTION OF SMALL ......Commission) for an exemption for the Strontia Springs Reservoir Hydroelectric Project (Project), a small hydroelectric power project

Aug 08, 2020

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Page 1: DRAFT APPLICATION FOR EXEMPTION OF SMALL ......Commission) for an exemption for the Strontia Springs Reservoir Hydroelectric Project (Project), a small hydroelectric power project

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DRAFT APPLICATION FOR EXEMPTION OF SMALL HYDROELECTRIC POWER PROJECT FROM LICENSING

(18 CFR §4.107)

FOR DENVER WATER’S STRONTIA SPRINGS RESERVOIR HYDROELECTRIC PROJECT, FERC PROJECT NO. 6916

Through this application, the City and County of Denver, acting by and through its Board of Water Commissioners (Denver Water), is seeking an exemption from licensing for its Federal Energy Regulatory Commission (FERC or Commission) hydropower license for the Strontia Springs Reservoir Hydroelectric Project (Project), FERC Project No. 6916. The Commission authorized the 1,087-kilowatt (kW) Project under a 40-year license on January 13, 1984 (see Attachment A).

Denver Water is a municipal corporation that provides water to the City and County of Denver, Colorado, and surrounding suburbs. Strontia Springs Reservoir is operated for water supply purposes, with hydroelectric energy produced when Denver Water releases water for deliveries. Denver Water needs to replace the Electrical, Instrumentation and Controls (EI&C) system at the reservoir due to the age and obsolescence of the system, the risk of equipment failure, and the need to comply with the latest design and safety standards at Strontia Springs Reservoir. The replacement of the EI&C system presents an opportunity for Denver Water to also replace the turbine and generator and therefore replace the EI&C system with one that is compatible with increased hydroelectric generation. This proposed amendment to increase the generating capacity will qualify the Project for a small hydroelectric power project exemption. Denver Water’s existing license is effective until 2024, and when there is an unexpired license, FERC will accept an application for an exemption from a licensee per 18 Code of Federal Regulations (CFR) §4.33(d)(1)(ii).

Thus, Denver Water is proposing to replace the outdated and unreliable EI&C system with a new system that is designed to operate a new uprated turbine and generator and qualify the Project for a small hydroelectric power project exemption. This proposal is referred to in this application as the “Proposed Exemption.”

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BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Application for Exemption of Small Hydroelectric Power Project from Licensing

(1) The City and County of Denver, acting by and through its Board of Water Commissioners

(Denver Water), applies to the Federal Energy Regulatory Commission (FERC or Commission) for an exemption for the Strontia Springs Reservoir Hydroelectric Project (Project), a small hydroelectric power project that is proposed to have an installed capacity of 5 megawatts (MW) or less, from licensing under the Federal Power Act. The project is currently licensed as FERC Project No. 6916 (see Attachment A).

(2) The location of the Project is in Jefferson and Douglas counties, Colorado, on the South

Platte River at Strontia Springs Reservoir and Dam.

(3) The applicant is Denver Water. Denver Water is located at 1600 West 12th Avenue, Denver, Colorado, 80204. The business phone number is (303) 628-6000.

(4) The Authorized Agent for the Project is Brian Gogas, Environmental Scientist. His business

phone number is (303) 628-6318, and his email is [email protected].

(5) Denver Water is a municipal corporation of the State of Colorado and licensee for the hydroelectric project designated as Project No. 6916 in the records of the Commission, issued on the 13th day of January 1984.

Project Description

Strontia Springs Reservoir and Dam are owned and operated by Denver Water for the primary purpose of diverting and storing water from the South Platte River. This water is conveyed by pipeline to Denver Water’s Foothills Water Treatment Plant. Strontia Springs Reservoir has a capacity of 7,863 acre-feet, corresponding to a normal maximum pool at elevation 6,002 feet above sea level. Denver Water controls reservoir releases to: (1) the Foothills Water Treatment Plant by way of the Foothills Intake Tower situated within the reservoir approximately 200 feet upstream from the dam; and (2) the South Platte River by way of operating the outlet works of the dam at elevation 5,845 feet, the hydropower plant draft tube discharge at elevation 5,780 feet, or the Emergency Reservoir Drainage System (ERDS) discharge channel at elevation 5,796 feet and/or the service spillway at the crest of the dam. The dam is also equipped with an auxiliary spillway fuse plug intended to operate when the reservoir water elevation is above 6,012.5 feet above sea level. Aurora Water owns and operates a separate intake, the Aurora Intake Tower, to divert water from Strontia Springs Reservoir to Aurora’s Rampart Reservoir. Denver Water typically maintains the reservoir elevation between 5,985 and 6,000 feet above sea level.

Strontia Springs Dam is a double-curvature, thin-arch, concrete dam with a structural height of 292 feet. The dam includes a built-in outlet works with lower floor elevation at 5,839.42 feet above sea level and a built-in powerhouse with floor elevation at 5,803 feet above sea level. The powerhouse contains the ERDS gates and the hydropower plant. Both facilities are cantilevered structures symmetrically positioned around the line of arch centers of the dam. Dam construction was completed circa 1983 and the hydropower plant was placed into service in 1986.

Water flows from Strontia Springs Reservoir to the turbine through a 42-inch diameter penstock that tees from the 4-foot high by 4-foot wide ERDS channel to the turbine within the powerhouse. The penstock is

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equipped with a 42-inch turbine inlet butterfly valve that is used for maintenance and emergency shutdown purposes. During operation of the turbine, water flows through the turbine where the turbine wicket gates control the flow rate and direct water to the runner, which in turn develops the kinetic energy necessary for the generation of electrical power. Water exits the turbine runner and is discharged through the vertically oriented draft tube which conducts the water from the turbine to the tailrace at elevation 5,780 feet above sea level.

A stilling pool at the downstream base of the dam, located below the draft tube of the turbine, functions in part as a tailrace and extends downstream. The channel is approximately 16,380 square feet and consists of excavated rock set from an original elevation of 5,750 feet above sea level as measured from the stilling pool section of the channel.

Proposed Construction

Denver Water is proposing to replace the outdated and unreliable EI&C system with a new system that is designed to operate a new turbine and generator and qualify the Project for a small hydroelectric power project exemption. This proposal is referred to in this application as the “Proposed Exemption.” The EI&C system needs to be replaced due to the age and obsolescence of the system, the risk of equipment failure, and the need to comply with the latest design and safety standards at Strontia Springs Reservoir.

Powerhouse and Penstock

Significant structural modifications are not anticipated for the ERDS channel or powerhouse to accommodate the new turbine and generator. Equipment that needs to be replaced within the powerhouse includes electrical distribution equipment; generator control and protection equipment; generator grounding equipment; heating, ventilation and air conditioning (HVAC) equipment; a hydraulic power unit; a direct current (DC) battery system; fire alarm system; security system; communications system; turbine inlet valve; powerhouse monorail; and draft tube. Due to the space limitations within the powerhouse, portions of the electrical distribution and controls equipment will be located within the outlet works. Portions of the outlet works will also be renovated to support this Project. Access to the powerhouse for operators and other authorized personnel is currently available by way of an interior gallery stairway that exits to the outlet works above the gallery. Large equipment such as the turbine and generator will be transported from the powerhouse by way of a beam monorail hoist that leads to a 6-foot-wide door opening to an existing exterior platform. From the exterior platform, equipment will be hoisted to the outlet works by a monorail hoist through a 6-foot high by 6-foot wide equipment hatch in the outlet works floor. Thereafter, the equipment will be made accessible for final transport by truck at the southeastern entrance to the outlet works.

Turbines and Generators

A single vertical Francis turbine, designed for a rated output of 1,316 kW and a synchronous generator rated at 1,388 kilovolt-ampere (kVA), will be installed in the existing powerhouse and replace the existing unit. The estimated turbine maximum efficiency point is 93.0 percent at 74 cubic feet per second (cfs) and 214.5 feet for an estimated turbine design output of 1,250 kW. The generator output at this point will be approximately 1,190 kW at a 0.9 Power Factor (PF) and 1,200 kW at a 1.0 PF. The generator full-load rating will be 1,250 kW at a 0.9 PF.

Switchyard and Primary Power Line

A new switchyard will be necessary to meet Xcel Energy’s intertie requirements and the generator’s rated voltage at 4.16 kilovolts (kV). The switchyard will be located on Denver Water’s property adjacent to the

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intersection of the Lower Access Road and South Platte River Road. The switchyard will be a secure, fenced-in concrete pad 25 feet wide by 50 feet long with containment that houses primary service metering, metal-enclosed switchgear, a liquid-filled generator step-up transformer, a liquid-filled station transformer, metal-clad switchgear, protective relays, controls, lighting, power for the switchyard, security equipment, miscellaneous branch circuitry, and electrical distribution equipment serving other existing Denver Water ancillary facilities. This switchyard is a needed design feature to improve safety for qualified electrical personnel.

From the switchyard, a new electrical ductbank will be installed below the switchyard and routed underground to the outlet works. The switchyard, primary power line, and electrical ductbank to the outlet works are included in the proposed revision to the FERC Project Boundary that is included in this exemption application. The electrical ductbank containing the primary power line will measure 36 inches wide by 20 inches deep by approximately 1,170 feet long. The electrical ductbank will be routed along the Lower Access Road on both Denver Water and U.S. Forest Service (USFS) property, for which Denver Water currently has an easement (see Attachment B), until it reaches the outlet works. The electrical ductbank to the outlet works will require up to two 5-foot high by 5-foot wide by 5-foot long electrical hand holes. It will contain additional power, control, and communications cabling for the existing Vehicular Beam Barrier located southwest from the switchyard with conduits teed from the electrical ductbank and trenched underground for approximately 20 feet to the beam barrier location.

Other Actions Occurring Outside the FERC Project Boundary

For the proposed construction, Denver Water plans to utilize an existing area of compacted gravel normally used for vehicular traffic, for construction staging of equipment and supplies. That area is a previously disturbed area with no sensitive habitat. This staging area is located on Denver Water’s property adjacent to the headquarters area (southeast of the proposed switchyard), outside of the FERC Project Boundary and away from water sources.

Denver Water also plans to provide new power lines and controls within an electrical ductbank to equipment at the river gauge house located northwest from the proposed switchyard, and to equipment at the headquarters area located southeast from the switchyard. The new electrical ductbank to the river gauge house will be routed along South Platte River Road on both Denver Water and USFS property. The new electrical ductbank to the headquarters area will be routed along the South Platte River Road on Denver Water property. Denver Water has noted throughout this application where coordination with the USFS is occurring for actions proposed to occur outside the FERC Project Boundary on USFS lands, and is preparing a USFS Standard Form (SF) 299 (Application for Transportation and Utility Systems and Facilities on Federal Lands) for those actions.

(1) The number of existing and proposed generating units at the project, including auxiliary units, the capacity of each unit, any provisions for further units, and a brief description of any plans for retirement or rehabilitation of existing generating units.

A new vertical Francis unit turbine and a 1,250-kW generator will replace the existing unit and will be connected in the same locations. Table 1 shows the existing Project generation and the increase in power generation under the Proposed Exemption.

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Table 1. Power Generation Summary

Existing Project Proposed Exemption Increased Generation from Existing Project

to Proposed Exemption

Number and Type of Unit One Vertical Francis Unit

One Vertical Francis Unit Not applicable

Total Generator Nameplate Capacity (kilowatts) 1,087 1,250 163 (or 15 percent)

Total Hydraulic Capacity (kilowatts) 1,059 1,316 257

Rated Flow (cubic feet per second) 65 77 12

Rated Head (feet) 214.5 214.5 0

The Proposed Exemption will operate the same way as the current Project, using release of flow and the head provided by the dam, and will remain in the same powerhouse location. No additional units are planned.

(2) The types of each hydraulic turbine of the small hydroelectric power project.

The Proposed Exemption will use one vertical Francis hydraulic turbine.

(3) A description of how the power plant is to be operated, that is, run-of-river or peaking.

The Proposed Exemption will operate the same way as the current Project, run-of-river using release of flow and the head provided by the dam, and will remain in the same powerhouse location. Operation of the new turbine and generator will require more water flow under the same typical reservoir head conditions for an increased power output and energy production. This increase of water flow will be diverted from the outlet works to the uprated turbine in the powerhouse but will not alter the existing streamflow; it will merely divert water to the powerhouse that would normally be discharged through the outlet works. Denver Water will continue to meet its 60 cfs minimum flow requirements from May 15th to September 15th and 30 cfs requirements at all other times. The new uprated turbine and generator will be equipped with an automated bypass system so that when the generator trips or there is no flow through the draft tube to the tailrace, a minimum seasonal based flow rate will be released through the existing discharge valve(s) in the outlet works. The hydroelectric unit controls will have three modes of operation: (1) local manual, (2) local auto, and (3) remote.

(4) A graph showing a flow duration curve for the project. Identify stream gauge(s) and period of record used. If a synthetic record is utilized, provide details concerning its derivation. Furnish justification for selection of installed capacity if the hydraulic capacity of proposed generating unit(s) plus the minimum flow requirements, if not usable for power production, is less than the stream flow that is exceeded 25 percent of the time.

Attachment C contains a plot of the historical outlet flow and gross head duration curves for the reservoir and a plot of the flow, gross head, and power duration curves that were used to calculate the expected annual energy generation increase from the Proposed Exemption based on both the hydrology and the hydroelectric equipment manufacturer's stated output and efficiency for various flows and heads.

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With the Proposed Exemption, an estimated 7,500,000 kilowatt-hours (kWh) of energy will be generated in an average annual hydrologic year based on actual daily flow rates of releases from the reservoir elevations from November 1986 through December 2013, and for tailwater elevations from January 2009 through December 2013. The annual energy generated by the hydroelectric unit is expected to vary depending on the weather, demands on the water system, and other operational variables. The average annual energy produced by the existing turbine and generator is 6,669,725 kWh based on data from the years 2000 through 2015.

(5) Estimations of: i. The average annual generation in kilowatts-hours.

The original license for FERC Project No. 6916 had an installed power capacity of 950 kW with annual generated energy estimated to be 6,700,000 kWh. The license was later amended for an installed capacity of 1,087 kW. The average annual energy produced from 2000 through 2015 was 6,669,725 kWh. The Proposed Exemption will generate an estimated average annual generation of 7,500,000 kWh.

ii. The average and design head of the power plant. The estimated average and design head on the power plant is 214.5 feet.

iii. The hydraulic capacity of each turbine of the power plant (flow through the plant) in cubic feet per second.

The hydraulic capacity of the one vertical Francis turbine is 77 cfs.

iv. The number of surface acres of the man-made or natural impoundment used, if any, at its normal maximum surface elevation and its net and gross storage capacities in acre-feet.

The Strontia Springs Reservoir area is 98 acres, with a storage capacity of 7,863 acre-feet, corresponding to a normal maximum pool at elevation 6,002 feet above sea level.

(6) The planned date for beginning and completing the proposed construction or development of generating facilities.

With approval of this Proposed Exemption, Denver Water estimates a 2- to 3-year construction period with completion by the end of 2022. Based on feedback from Colorado Parks and Wildlife (CPW), no major site work will occur during the lambing season (May to mid-June) for bighorn sheep.

(7) A description of the nature and extent of any repair, reconstruction, or other modification of a dam that would occur in association with construction or development of the proposed small hydroelectric power project, including a statement of the normal maximum surface area and normal maximum surface elevation of any existing impoundment before and after construction.

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No repair, reconstruction, or other modification of the Strontia Springs Dam will occur in association with construction of the Proposed Exemption. Strontia Springs Reservoir will continue to operate normally during the construction, with no changes to the surface area, surface elevation, or existing impoundment.

(a) Exhibit G. Exhibit G is a map of the project and boundary and must conform to the

specifications of §4.41(h).

Attachment D contains the content of Exhibit G (i.e., a map of the Proposed Exemption, including the proposed modification to the FERC Project Boundary, that conforms to the specifications of §4.41(h)).

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EXHIBIT E

(1) A description of the environmental setting of the project, including vegetative cover, fish

and wildlife resources, water quality and quantity, land and water uses, recreational uses, historical and archeological resources, and scenic and aesthetic resources. The report must list any endangered or threatened plant and animal species, any critical habitats, and any sites eligible for or included on the National Register of Historic Places. The applicant may obtain assistance in the preparation of this information from state natural resources agencies, the state historic preservation officer, and from local offices of Federal natural resources agencies.

The environmental setting of the Project area is discussed in the sections below.

Vegetation

The Project area is within the Colorado Foothills Life Zone and the Southern Rockies Crystalline Mid-Elevation and Foothill Shrubland U.S. Environmental Protection Agency (EPA) Level IV Ecoregions (EPA 2003, Chapman et. al. 2006), with elevations ranging from 7,000 feet down to 5,500 feet. The Colorado Foothills Life Zone is generally dominated by ponderosa pine woodland (Pinus ponderosa) in the eastern foothills of the Rocky Mountains, with montane shrublands at higher elevations. These areas are composed of a diverse array of landforms including steep slopes, cliffs, canyons, mesas, and plateaus. The Southern Rockies EPA Ecoregions are generally dominated by coniferous forests at middle and higher elevations including ponderosa pine, douglas-fir (Pseudotsuga menziesii var. glauca), lodgepole pine (Pinus contorta), and limber pine (Apinus flexilis). Middle and lower elevation vegetation communities include coniferous and deciduous forest, shrubland, and grassland generally dominated by sagebrush (Artemsia sp.), mountain mahogany (Cercocarpus sp.), oaks (quercus sp.), junipers (Juniperus sp.), and pines (Pinus sp.). Additional communities known to occur along the South Platte River include small aspen groves (Populus sp.) and open meadow communities with riparian areas dominated by willows (Salix sp.) and cottonwoods (Populus sp.).

The Project area is located within the Pike National Forest and includes the South Platte River and Strontia Springs Reservoir, adjacent hillslopes, and cleared roadways. Vegetation observed within the Project area includes ponderosa pine forest communities located on the hillslopes, with scattered aspen- and cottonwood-dominated riparian communities.

Aquatic Resources

The South Platte River within the Project area is designated as Recreation Class 1, Aquatic Life Class I Cold as designated by the Colorado Department of Public Health and the Environment (CDPHE) Water Quality Control Division pursuant to Section 25-8-101 et seq. Colorado Revised Statute (C.R.S.). The stream and lake fishery is managed by CPW. In April 2018, Denver Water obtained fishery stocking and composition data from CPW for Strontia Springs Reservoir and prepared a Fishery Data Analysis Report for Strontia Springs Reservoir and the South Platte River in May 2018 (see Attachment E). From 1986-2000, the data show a significant percentage of the total fish in the reservoir is composed of non-desirable fish species (approximately 76.9 percent). Desirable sportfish species in the reservoir comprised approximately 22.9 percent. Eight total fish species were recorded in Strontia Springs Reservoir bio-surveys during this 15-year period (Table 2).

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Table 2. Strontia Springs Reservoir Percent Fish Species Composition (1986-2000)

Species Percent Species Composition

Yellow perch 11.0 Brown trout 7.5 Cutthroat trout 0.1 Longnose sucker 7.9 Northern pike 0.1 Rainbow trout 4.4 Tiger muskie 0.1 White sucker 69.0 Total 100.0* *Total may not sum exactly due to rounding.

CPW fishery composition data for Segment #3A of the South Platte River below Strontia Springs Reservoir from 1979-2016 reflects 16 fish species (see Attachment E). Brown trout accounted for nearly 75 percent of the total fish composition in this segment of the South Platte River. Rainbow trout and the longnose dace made up the next largest percentages at 8.7 percent and 7.4 percent, respectively. Combined, the remaining 13 fish species (fathead minnow, creek chub, cutthroat trout, green sunfish, Johnny darter, largemouth bass, longnose sucker, smallmouth bass, spottail shiner, white sucker, yellow perch, bigmouth shiner, and brook stickleback) made up less than 9 percent of the remaining fish composition in the river. Segment #3A of the South Platte River below Strontia Springs Reservoir is a CPW-designated Gold Medal Water. This designation reflects the state’s highest quality trout streams and rivers that are accessible to the public and produce and sustain a minimum of 12 “quality trout” (i.e., trout that is 14 inches or larger) per acre and 60 pounds of fish biomass per acre. In this stream reach, rainbow trout and brown trout comprise the sportfish biomass, though the trout biomass changes substantially from year to year. Brown trout makeup nearly 75 percent of the total fish biomass in this reach. Fish entrainment at Strontia Springs Dam is non-existent or negligible because of the depth of the inlet works of the powerhouse and the nature of the habitat for resident fish species at that depth. Water is released to the turbine near the bottom of Strontia Springs Dam. Wildlife

Wildlife within the Project area includes bighorn sheep, elk (summer range), mule deer (summer and winter range), wild turkey (summer and winter range), black bear, cavity-nesting birds, and raptors. The bighorn sheep herd in the area is a resident herd that is currently about 73 strong and includes 25 rams. The herd is indigenous to Waterton Canyon. Historical and Archeological Resources

At the time of construction of Strontia Springs Reservoir and Dam, cultural resources were identified and mitigated. These resources included remnants of a narrow-gauge railroad grade and rock work, two bridges, an abandoned resort, and railroad station. The cultural resource features identified during the original dam construction are located outside the FERC Project Boundary (see Attachment D) of this Proposed Exemption application.

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In April 2018, Denver Water contracted ERO Resources Corporation (ERO) to perform a cultural resources survey of the area included in the proposed modification to the existing Project Boundary being sought as part of this Proposed Exemption to include the primary power line along the Lower Access Road from the new switchyard to the outlet works. The area ERO surveyed covers a broader area than what is within the FERC Project Boundary (i.e., ERO also surveyed an area of the South Platte River Road between the switchyard and the gauge house for work Denver Water needs to perform outside of this Proposed Exemption that falls under the jurisdiction of the USFS). ERO rerecorded and expanded one previously documented segment of the Denver, South Park & Pacific (DSP&P) Railroad (5DA22.1) that had been determined eligible for listing in the National Register of Historic Places (NRHP) under Criterion A. However, segment 5DA22.1 has been widened and improved for use as an automobile road; these actions have adversely affected its historic integrity and ERO has recommended the segment non-supporting to the eligibility of the entire site. The complete survey report is provided in Attachment F. Scenic and Aesthetic Resources

Waterton Canyon is a visually distinct, highly enclosed corridor, with the Strontia Springs Dam being an impressive feature along the canyon. Strontia Springs Reservoir is also an aesthetic resource giving character to the geologic setting of Waterton Canyon. Threatened Animal and Plant Species and Critical Habitat

Listed threatened and endangered or sensitive species are known to occur in Jefferson and Douglas counties, Colorado. A review of the U.S. Fish and Wildlife Service (USFWS) Endangered Species list for Jefferson and Douglas counties was conducted in July 2018, and a species query was generated from the Information, Planning and Conservation (IPaC) system. The FERC Project Boundary contains suitable habitat for the five threatened and endangered species discussed below.

Preble’s Meadow Jumping Mouse The Preble’s meadow jumping mouse is a USFWS-listed species that is classified as threatened. It occupies primarily heavily vegetated riparian habitats and can also occupy adjoining uplands. It has been located in and near various drainages, including tributaries and main stream reaches, of the South Platte River. The mouse has also been found in Jefferson County. The proposed modification to the existing FERC Project Boundary contains potential suitable habitat for the mouse that includes shrubs and brush-like vegetation. The area southeast of Strontia Springs Reservoir, directly outside the FERC Project Boundary, is within USFWS designated critical habitat for the Preble’s meadow jumping mouse. Critical habitat refers to specific geographic areas that are essential for the conservation of a threatened or endangered species and may require special management considerations. The designated critical habitat southeast of the FERC Project Boundary surrounds Bear Creek and West Bear Creek, encompassing riparian areas present around the waterbodies that are potential habitat for the Preble’s meadow jumping mouse. Mexican Spotted Owl The Mexican spotted owl is a USFWS-listed species that is classified as threatened. The area surrounding Strontia Springs Reservoir, both within the FERC Project Boundary and along South Platte River Road, is within USFWS designated critical habitat for the Mexican spotted owl; however, not all the areas within the mapped critical habitat boundaries have habitat elements important to the owl. The species inhabits canyon and montane forest habitats across Colorado.

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Pawnee Montane Skipper The Pawnee montane skipper, a rare butterfly, is a USFWS-listed threatened species. It only occurs in the South Platte River drainage of Colorado in open, dry ponderosa pine woodlands on steep slopes with Pikes Peak granite soils. Ute ladies’-tresses Orchid The Ute ladies’-tresses orchid is a USFWS-listed threatened species. The orchid occurs in moist/wet meadows along perennial streams, and along riparian edges, wetlands, seepy areas, gravel bars, and channels with high flow. Colorado Butterfly Plant The Colorado butterfly plant is a USFWS-listed threatened species. The species is typically found on the high plains in meandering stream channels and prefers habitat that is not heavily overgrown by other vegetation. It is known to occur in native grasses in undisturbed areas.

Water Quantity and Quality

Denver Water’s streamflow and water regime information is solely determined by operation of Denver Water’s water supply system, which will not change as a result of this Proposed Exemption. Therefore, the following information is the same information that was provided at the time of the original license and evaluated by the agencies and stakeholders at that time.

Streamflow and water regime information, including drainage area, natural flow periodicity, monthly flow rates and durations, the location of stream gauging stations, and the methods used to generate streamflow data are the same as that included under the original license application for Strontia Springs Reservoir. Strontia Springs Reservoir is operated for municipal water supply purposes and generation of power is an ancillary benefit as water is released. Under the Proposed Exemption, this would not change. Strontia Springs Reservoir does not become thermally stratified, and dissolved oxygen concentrations remain homogenous throughout the reservoir. Water is withdrawn from the reservoir at an elevation below which any thermocline would develop. Sediment transport and turbidity in the downstream reach is less than natural conditions. The hydrology of the South Platte River at the Strontia Springs Dam is highly modified due to the additions of water upstream resulting from the diversion of water from Dillon Reservoir through the Roberts Tunnel, storage in existing upstream reservoirs (i.e., Cheesman, Eleven Mile, Spinney Mountain, and Antero reservoirs), and withdrawal of water for irrigation and water supply uses.

Land Use

The Project is within Jefferson and Douglas counties, Colorado. The primary uses of land in the Project area are recreation and wildlife habitat.

Land in the Project area consists of both public and private holdings. The previous FERC Project Boundary encompassing the reservoir and dam was approximately 98 acres, of which approximately 58.7 acres were owned by the federal government (i.e., administered by the USFS, Pike San Isabel National Forest), and the remaining lands were owned by Denver Water. As part of the Proposed Exemption, Denver Water is seeking an adjustment to the FERC Project Boundary to include the switchyard and primary power line along the Lower Access Road to the outlet works. Under the existing license, the

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interconnect with Xcel is located near the dam. With this Proposed Exemption, the primary power line will be extended to a new point of interconnect with the utility. This adjustment to the existing FERC Project Boundary will expand the Boundary from 98 acres to approximately 121 acres, of which approximately 47 acres are administered by the USFS, Pike San Isabel National Forest, and the remaining approximately 74 acres are owned by Denver Water. Denver Water is authorized to use federal lands through easements and right-of-way (ROW) agreements (see Attachment B). Plans at this site include a possible land exchange with the USFS to transfer ownership of all USFS lands within the FERC Project Boundary to Denver Water. Denver Water has been working with the USFS on an Exchange Proposal.

Geology and Soils

Precambrian intrusive igneous rocks dominate the geology in the Project area. These rocks include granites associated with the Pikes Peak batholith, biotite gneiss, schist, and quartzite. Most soils within the Project area have a high erosion hazard due to the steepness of slopes. Rockfall from outcrops occurs periodically.

Recreation

Since the time of the original license, public use of Waterton Canyon has greatly increased because of its proximity to the Denver metropolitan area, but recreation at Strontia Springs Reservoir itself remains low to moderate because of its very limited shoreline access and steep canyon walls. While biking, hiking, fishing, horseback riding, and wildlife viewing are popular along the South Platte River Road, recreationists do not hike and fish at Strontia Reservoir as much because it is a strenuous hike to the reservoir and to the fishing access points above the reservoir. Public motor vehicles are not permitted along the South Platte River Road and access by foot and horseback may be restricted upon notice. There are no developed recreation amenities within the FERC Project Boundary. Boating is not allowed. The Waterton Canyon Management Plan and Memorandum of Understanding (MOU) (Attachment G) was signed in 1983 by Denver Water, the Bureau of Land Management (BLM), and the USFS (that Plan was required/arose from the Foothills Agreement, which also included numerous other parties and commitments that are not relevant to this Proposed Exemption). The Plan and MOU set forth the types of public use and access allowed at Waterton Canyon, the construction and maintenance of recreation facilities, and responsibilities of the parties, including law enforcement and fire suppression. The Plan and MOU cover Waterton Canyon, an area much broader than the FERC Project Boundary. Zone D of the Plan covers Strontia Springs Dam and Reservoir and includes lands within 0.25 mile of the shoreline. In 1984, Public Law 98-484 was signed. The Act added public lands within a boundary modification (comprising about 2,869 acres administered by the BLM at that time) of the Pike National Forest under the administration of the National Forest System in order to provide for the more efficient administration of certain federal lands in the vicinity of Water Canyon and the South Platte River, in the state of Colorado (see Attachment G for a copy of the Act).

(2) A description of the expected environmental impacts from the proposed construction or development and the proposed operation of the small hydroelectric power project, including any impacts from any proposed changes in the capacity and mode of operation of the project if it is already generating electric power, and an explanation of the specific measures proposed by the applicant, and the agencies consulted, and others to protect and enhance environmental resources and values and to mitigate adverse impacts of the project on such resources.

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The Proposed Exemption will operate the same as the Project under the existing license. Under the Proposed Exemption, there will be no changes in the operation described and analyzed under the existing license; therefore, the following information describing the anticipated environmental effects pertains only to the construction of the Proposed Exemption.

The study area for environmental impacts from the Proposed Exemption includes the area within the existing FERC Project Boundary (specifically at the dam), the South Platte River Road, and the Lower Access Road, as well as the additional areas for the new primary power line and electrical ductbank to the outlet works that are included in Denver Water’s proposed revision to the FERC Project Boundary (see Attachment D).

The following information summarizes conclusions reached by Denver Water regarding the characterization of the existing environment and values, and anticipated environmental impacts from the Proposed Exemption, as well as Denver Water’s proposed environmental protection, minimization, mitigation, and enhancement measures. Stakeholders can review the information presented and determine if any additional studies are recommended and/or if any fish, wildlife, or other resource-specific terms or conditions should be considered by Denver Water in its application to the Commission.

Vegetation

Minor permanent impacts to vegetation will occur with the construction of the switchyard, adjacent to the intersection of the Lower Access Road and South Platte River Road. This site is entirely on Denver Water property. An area slightly larger than the concrete pad for the switchyard (25 feet by 50 feet) will be cleared and permanently impacted. This area of disturbance is sparsely vegetated with primarily mountain grass species including rabbitbrush (Ericameria nauseosa), blue grama grass (Bouteloua gracilis), and little bluestem (Schizachyrium scoparium), as well as a native shrub, common chokecherry (Prunus virginiana). No wetland vegetation species are present in this disturbance area. Minor temporary impacts to vegetation will occur with trenching associated with the electrical ductbank. An area slightly wider than the required trench will be cleared and temporarily impacted.

There will be no direct or indirect impacts to wetlands from construction of the Proposed Exemption. All work will be conducted in areas that are not within wetland or riparian areas. Because no operational changes are proposed for Strontia Springs Reservoir under the Proposed Exemption, no hydrology-related impacts to wetlands and riparian resources are expected.

Aquatic Resources

No impacts to aquatic resources are expected because of the Proposed Exemption. Denver Water is proposing no changes to the amount or timing of flows released from Strontia Springs Dam. Replacement of the turbine, generator, and associated mechanical and electrical equipment will occur within the existing powerhouse and outlet works located within the dam, and the new switchyard and primary power line will be constructed in a previously disturbed upland area away from the South Platte River. Strontia Springs Reservoir will continue to operate normally during the construction, with no changes to the surface area, surface elevation, or existing impoundment.

To minimize soil erosion and sedimentation at the site during construction activities for the switchyard and primary power line, Denver Water will require the contractor to use Best Management Practices (BMPs).

Evidence of fish entrainment and mortality has not been observed at the powerhouse outlet. Entrainment was not considered an issue of concern when the Project was originally evaluated and licensed in 1984.

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With no changes to the operations of the Project, fish entrainment is not a concern under the Proposed Exemption.

Wildlife

There will be minor, short-term temporary noise impacts associated with construction (see also the Noise discussion below) on the resident bighorn sheep herd. CPW recommended restricting and/or limiting ground-disturbing activities from May to mid-June to minimize the effects on the bighorn sheep during the lambing season. The steep canyon walls are common lambing areas for the sheep. No other impact to wildlife are anticipated with the Proposed Exemption as the turbine and generator will not generate more noise than the existing turbine and generator, the equipment will be enclosed within the powerhouse, the equipment will have a significant grounding system to prevent electromagnetic interfaces (EMIs), and the dam has existing grounding cable to limit EMI as well. The noise produced by the turbine and generator during operation is substantially less than the noise produced by the outlet works free discharge valves when those valves pass water. Additionally, the primary line will be buried within the existing roadway following construction, and the switchyard will be located within a previously disturbed area adjacent to the roadway.

Historical and Archaeological Resources

Because the Proposed Exemption is located on federal lands, it is an undertaking subject to compliance with Section 106 (54 United States Code [U.S.C.] §306108) of the National Historic Preservation Act of 1966, as amended (NHPA) (54 U.S.C. §300101 et seq.) and the implementing regulations under 36 CFR 800. The Proposed Exemption will not adversely impact any historical or archaeological sites since most of the work is occurring within the existing powerhouse and outlet works and within existing roadways. As discussed earlier, a previously documented segment of the DSP&P Railroad (5DA22.1) was adversely affected when it was widened and improved for use as an automobile road, adversely affecting its historic integrity. On June 6, 2018, ERO recommended Segment 5DA22.1 as non-supporting to the NRHP eligibility of the entire site. ERO proposed no further work and recommended a no historic properties affected determination pursuant to 36 CFR 800.4(d)(1) of the NHPA. That report is included in Attachment F.

FERC will review ERO’s report and the recommended no historic properties affected finding and proceed with the Section 106 consultation with the Colorado State Historic Preservation Officer (SHPO) for the survey results that pertain to the area within the proposed modification to the FERC Project Boundary (i.e., the area that includes the primary power line along the Lower Access Road from the new switchyard to the outlet works).

The USFS has completed its Section 106 consultation for the area of the South Platte River Road between the switchyard and the gauge house with the Colorado SHPO. ERO included a cultural survey of that area with the survey it performed in April 2018 of the area included in Denver Water’s proposed modification to the FERC Project Boundary, and in June 2018 recommended a no historic properties affected determination to the USFS (see Attachment F). The USFS concurred with that finding and initiated Section 106 consultation with the SHPO. That area falls on USFS land and is outside the scope of this Proposed Exemption. On August 21, 2018, the SHPO indicated it did not object the Area of Potential Effects (APE), and concurred with the no historic properties affected finding for the area of the South Platte River Road between the switchyard and the gauge house (Attachment J).

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Scenic and Aesthetic Resources

Most of the activities associated with the Proposed Exemption will not impact visual resources in the canyon since the equipment to be replaced is located within the powerhouse and outlet works and the new primary power line will be buried within the Lower Access Road between the new switchyard and the outlet works. In other words, the new equipment will be out of the line-of-sight. Only short-term, temporary impacts to visual resources in the canyon will occur during the transport and installation of this equipment and line. There will be a minor, long-term aesthetic impact with the construction of the new switchyard, which will be visible to recreationists at that location. The switchyard will be located on Denver Water’s property adjacent to the intersection of the Lower Access Road and South Platte River Road. The switchyard will be a secure, fenced-in concrete pad that measures 25 feet wide by 50 feet long with containment that houses primary service metering, metal-enclosed switchgear, a liquid-filled generator step-up transformer, a liquid-filled station transformer, metal-clad switchgear, protective relays, controls, lighting, and power for the switchyard, as well as security equipment, miscellaneous branch circuitry, and electrical distribution equipment serving other existing Denver Water ancillary facilities. Site lighting serving the switchyard will be minimal; the lighting fixtures to be installed will be positioned to aim downward to limit light pollution in Waterton Canyon. Because there are several other structures and facilities (e.g., a covered picnic gazebo, interpretive signage, permanent outhouse, Xcel Energy equipment, and Denver Water caretaker houses/headquarters area, and the river gauge house) located within the same viewshed of the new switchyard, the overall aesthetic impact will be minor.

Threatened Animal and Plant Species and Critical Habitat

As stated earlier, listed threatened and endangered or sensitive species are known to occur in Jefferson and Douglas counties, Colorado. Based on Denver Water’s review of the USFWS Endangered Species list for Jefferson and Douglas counties in July 2018 and the IPaC species query, 13 species are listed for Jefferson and Douglas counties, five of which are listed for water-related activities in the South Platte River basin that may affect their habitats downstream in Nebraska. These five species are: least tern (Sternula antillarum), piping plover (Charadrius melodus), whooping crane (Grus Americana), pallid sturgeon (Scaphirhynchus albus), and western prairie fringed orchid (Platanthera praeclara). The Proposed Exemption will operate in the same manner as the Project under the existing license and will not alter existing stream flows in the South Platte River basin or result in water depletions; therefore, there will be no adverse effect to these five listed species. The FERC Project Boundary does not contain suitable habitat for three of the species listed by the IPaC system (Canada lynx, North American wolverine, and greenback cutthroat trout); therefore, no adverse effect to those species will occur. There will be no new depletions and no changes to flow release obligations under the Platte River Recovery Implementation Program (i.e., Denver Water will continue to meet its 60 cfs minimum flow requirements from May 15th to September 15th, and 30 cfs requirements at all other times; hence, there will be no adverse impact to aquatic resources in Colorado or Nebraska from the Proposed Exemption.

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As discussed earlier, the FERC Project Boundary does contain suitable habitat for five threatened and endangered species. Any anticipated impacts to those species because of the Proposed Exemption are discussed here.

Preble’s Meadow Jumping Mouse Although the FERC Project Boundary contains potential suitable habitat for the Preble’s meadow jumping mouse, the construction-related activities associated with the Proposed Exemption will occur in existing roadways and in a previously disturbed upland area that is devoid of shrubs and brush-like vegetation. Therefore, the Proposed Exemption is not likely to adversely affect the Preble’s meadow jumping mouse or habitat for the species.

Mexican Spotted Owl Although the area surrounding Strontia Springs Reservoir, both within the existing FERC Project Boundary and along South Platte River Road, is within USFWS designated critical habitat for the Mexican spotted owl, the construction-related activities for the Proposed Exemption will occur within developed and disturbed areas that do not contain the primary habitat elements required by the species. The areas of disturbance are the existing powerhouse and outlet works and within/adjacent to the existing roadways (i.e., the Lower Access Road and South Platte River Road), that contain very minimal ground cover, and in some cases, no ground cover. Therefore, the Proposed Exemption is not likely to adversely affect the Mexican spotted owl or critical habitat for the species.

Pawnee Montane Skipper The Proposed Exemption does not include construction-related activities in the South Platte River drainage. All proposed work will occur in previously disturbed, non-woodland areas. Therefore, the ground-disturbing activities associated with the Proposed Exemption are not likely to adversely affect the Pawnee montane skipper or habitat for the species.

Ute ladies’-tresses Orchid The construction-related activities for the Proposed Exemption will occur within developed and disturbed areas that do not contain the primary habitat elements required by the Ute ladies’-tresses orchid. Therefore, the Proposed Exemption is not likely to adversely affect this species or its habitat.

Colorado Butterfly Plant No construction-related activities for the Proposed Exemption will occur in the South Platte River channel and areas with native grasses will not be cleared. Therefore, the ground-disturbing activities associated with the Proposed Exemption are not likely to adversely affect the Colorado butterfly plant or habitat for the species. Section 7 of the Endangered Species Act The Endangered Species Act (ESA) directs all Federal agencies to work to conserve endangered and threatened species. Section 7 of the ESA, called "Interagency Cooperation," is the mechanism by which federal agencies ensure the actions they take do not jeopardize the existence of any listed species. FERC will review Denver Water’s affect recommendations discussed in the sections above and proceed with the Section 7 consultation requirements for the findings that pertain to the area within the proposed modification to the FERC Project Boundary (i.e., the area that includes the primary power line along the Lower Access Road from the new switchyard to the outlet works) with the USFWS.

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The USFS will complete its Section 7 consultation with the USFWS for the area of the South Platte River Road between the switchyard and the gauge house that falls on USFS land and is outside FERC’s jurisdiction for the Proposed Exemption. Land Use

The Proposed Exemption will have no effect on general land use in the Project area. Construction of the new generator and turbine will occur in an area that is not open to the public.

As part of the Proposed Exemption, Denver Water is seeking an adjustment to the existing FERC Project Boundary to include the primary power line along the Lower Access Road from the new switchyard to the outlet works. Under the existing license, the interconnect with Xcel Energy is located near the dam. With this Proposed Exemption, the primary power line will be extended to a new point of interconnect with the utility. Hydroelectric power will continue to be used for on-site purposes to operate the dam and water intake structures, with surplus power being sold to Xcel Energy. This adjustment to the FERC Project Boundary will expand the Boundary from 98 acres to approximately 121 acres, of which approximately 47 acres are administered by the USFS, Pike San Isabel National Forest, and the remaining approximately 74 acres are owned by Denver Water. The land use within the expanded FERC Project Boundary will not change from what was described earlier, and as such, no impacts to land use are anticipated.

Geology and Soils

Denver Water will perform geological and subsurface investigations for the Proposed Exemption at the new switchyard and along the Lower Access Road downstream of the right abutment of the dam. The investigations are necessary to determine bedrock depth for the placement of the electrical ductbank, and for soil bearing properties at the new switchyard. Due to the proximity of this work to the right dam abutment, Denver Water is required to coordinate and obtain approval from FERC’s Division of Dam Safety and Inspections. The Draft Geotechnical Work Plan for those activities is included as Attachment H and must be approved before the proposed activities can commence. Denver Water anticipates having this work approved and completed by the end of 2018. Denver Water will coordinate with FERC regarding the results of the geotechnical assessment and implement additional minimization and mitigation measures as appropriate to address impacts.

The soils in the Project area have a high erosion hazard. However, the Proposed Exemption area has been previously disturbed during the original construction of the Project. No significant impacts to soils are expected. BMPs will be implemented to minimize soil erosion and sedimentation at the site during construction activities.

Recreation

To protect recreational users and avoid potential conflicts, Denver Water may temporarily close the South Platte River Road to public recreation during placement of the electrical lines and construction of the switchyard. Denver Water may also need to temporarily close Waterton Canyon or restrict access during delivery of the turbine and generator and construction equipment (unless the vehicles associated with such delivery can be escorted up the South Platte River Road if public safety is not at risk). Other than potential short-term and temporary closures/access restrictions to South Platte River Road during construction for safety purposes, there will be no impact to recreation from the Proposed Exemption. Conversion of Denver Water’s license to an exemption will have no effect on recreation within the FERC Project Boundary because Denver Water’s recreation management obligations and commitments will continue under the Waterton Canyon Management Plan and MOU (Attachment G).

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Noise

Transportation of construction equipment and construction activities associated with the installation of the switchyard and power line will cause a short-term, temporary noise impact. As CPW recommended, Denver Water will restrict and/or limit ground-disturbing activities from May to mid-June to minimize noise effects on the bighorn sheep during the lambing season. Following construction, no increase in noise will occur with operation of the new turbine and generator as those will not generate more noise than the existing turbine and generator and the equipment will be enclosed within the powerhouse. The noise produced by the water passing through the outlet works free discharge valves currently surpasses that of the existing turbine and generator and will continue to surpass the noise of the new units. Based on this, there are no long-term human or wildlife noise impacts anticipated from the Proposed Exemption.

Water Quantity and Quality

No changes to the existing water quality are expected because of the Proposed Exemption. There will be no discharge of pollutants to waters of the United States; the Proposed Exemption will simply allow the new hydroelectric equipment to operate under a greater range of flows which have been historically and are currently released for water supply purposes. As a result, there will be no change with the Proposed Exemption in the existing amount or timing of water being released and as such, no water quality or quantity impacts are anticipated. The proposed construction-related activities will not impact operations, including flow release obligations, so there will be no impact to flow releases.

The penstock within the Strontia Springs Dam is very short. The water passing through the penstock to power the new turbine will happen so quickly that any subsequent temperature increase will be negligible. As reflected in Attachment I, on May 1, 2018, the CDPHE Water Quality Control Division indicated there are no water quality impacts associated with the Proposed Exemption and the CDPHE Water Quality Division does not see any need to reissue a Section 401 water quality certification (i.e., the existing Section 401 Water Quality Certification dated April 2, 1979, will continue to apply) for the Project.

Denver Water will require the contractor to use and comply with BMPs to minimize soil erosion and sedimentation at the site during construction activities for the switchyard and primary power line.

Air Quality

Ground-disturbing construction associated with the Proposed Exemption is anticipated to impact approximately 0.33 acre and is expected to be phased over the estimated construction timeline of 2 to 3 years. Disturbance of surface areas for purposes of land development that do not exceed 25 contiguous acres and that do not exceed six months in duration, or that has uncontrolled actual emissions of less than one ton per year of any individual criteria pollutant are exempted from Air Pollutant Emission Notice (APEN) requirements, per CDPHE’s Air Quality Control Commission (AQCC), Regulation Number 3, Stationary Source Permitting and APEN Requirements (5 Colorado Code of Regulations [CCR] 1001-5, Parts II.B.3.a and II.D.1.j).

CDPHE’s AQCC Regulation 1, Part III.D.2.a.(i) (5 CCR 1001-3) for unpaved roadways lists watering and chemical stabilization as acceptable control measures. Denver Water hires Envirotech to apply magnesium chloride to the South Platte River Road every year as a dust suppression measure. No additional dust suppression measures are anticipated to be needed as construction activities related to the Proposed Exemption will be temporary, short term, and will be phased to limit fugitive dust and vehicle emissions associated with construction of the switchyard and trench for the new powerline.

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(3) Any additional information the applicant considers important. Proposed Conditions, and Mitigation and Environmental Measures

In consideration of this application, Denver Water requests that the following mitigation and enhancement measures be included in FERC’s Exemption Order, if granted.

Work Plan Development for Electrical Ductbank to the Gauge House

Denver Water will be required to develop a Work Plan specific to the area of the South Platte River Road between the switchyard and the gauge house. A portion of this work is outside of the FERC Project Boundary and will require USFS review and approval prior to construction. Approximately 320 feet of this electrical ductbank will be installed in the South Platte River Road on USFS property. The location of this proposed work is shown on Drawing F-3 in Attachment N. The Work Plan will provide the estimated schedule, timing of closures and access restrictions, and wildlife protection measures. Denver Water is coordinating with the USFS, and preparing a USFS Standard Form 299 (Application for Transportation and Utility Systems and Facilities on Federal Lands) for these actions. The proposed work is anticipated to occur between February and May of 2021, which is outside of the lambing period for bighorn sheep.

Typical to similar projects executed in the past few years, Denver Water is dedicated to maintaining safe foot and bike access to recreationists, and vehicle access to authorized entities in the Project area. The Project contractor will be required to maintain a 16-foot wide corridor along the South Platte River Road for recreational access to and from the Colorado Trail located southeast of the Project area. Deliveries of materials and equipment to the Project area from the South Platte River Road will require escort by the contractor so that posted speed limits are adhered to and to help maintain the safety of recreationists.

A Grading, Erosion, and Sediment Control (GESC) Plan will be implemented and BMPs required by Douglas County such as silt fencing, sediment control logs, construction fence, and concrete washouts will be installed along the Lower Access Road and South Platte River Road to prevent earthwork activities or materials from entering and affecting the South Platte River.

Denver Water is aware of the sensitivity of the environment to disturbance and concerns regarding fire risk. Denver Water’s contractor will be required to meet the USFS’ “high fire risk pre-cautionary action requirements” should Stage I, II, or III Fire Restrictions be declared.

Maintain the Minimum Bypass Flow

Under the 1978 authorizations for construction from the USFS and BLM (see Attachment B), and as a condition of the existing license (Attachment A), downstream releases from Strontia Springs Dam are required under easements and ROW agreements (all of which are now administered by the USFS). The Project is operated using an average daily minimum streamflow requirement for the South Platte River. Denver Water will continue to meet its 60 cfs minimum flow requirements from May 15th to September 15th and 30 cfs requirements at all other times. Denver Water is required to maintain the minimum bypass flow to maintain and enhance the fish habitats of the downstream reach of the South Platte River.

Compliance with Applicable 401 Certification General Conditions

Denver Water will continue to comply with the April 2, 1979 Section 401 Certification associated with the Strontia Springs Dam and Reservoir, included as Attachment I. On May 1, 2018, CDPHE’s Water Quality Control Division indicated there are no water quality impacts associated with the Proposed Exemption and the CDPHE Water Quality Division does not see any need to reissue a Section 401 water

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quality certification (i.e., the existing Section 401 Water Quality Certification is still relevant and applicable).

Maintain Recreation

Denver Water will allow and maintain recreation uses and facilities pursuant to the Waterton Canyon Management Plan and MOU (Attachment G), as it may be amended from time to time.

Compliance with Archaeological Resource Request from Colorado SHPO

Should unidentified archaeological resources be discovered in the course of the construction, work will be interrupted until the resources have been evaluated in terms of the NRHP eligibility criteria (36 CFR 60.4) in consultation with the Colorado Office of Archaeology and Historic Preservation pursuant to 36 CFR 800.13.

Summary of Consultation

Denver Water has consulted with relevant Federal and State agencies, Indian tribes, and the public regarding this Project pursuant to 18 CFR §4.38. As part of its first stage of consultation for the Proposed Exemption, Denver Water prepared a draft Initial Consultation Document (ICD) for the Proposed Exemption (a copy of the ICD is available at www.denverwater.org/strontia-ferc). Prior to the release of the ICD to the Project stakeholder list, Denver Water met with the USFS on December 5, 2017, to provide the agency information about the Proposed Exemption. In follow-up to that meeting, Denver Water shared a draft of the ICD for USFS review and comment on December 7, 2017. On January 2, 2018, Denver Water provided additional information to the USFS via e-mail, alerting the agency to a few changes that would be noticed in the ICD when it was released to stakeholders. Denver Water did not receive comments from the USFS in response to either outreach. Following the USFS’ comments at the joint stakeholder consultation meeting and site visit on July 11, 2018, Denver Water corresponded with the USFS via e-mail on July 13, 2018, and held a conference call with the USFS on July 16, 2018, to discuss Denver Water’s preparation of an USFS Standard Form 299 (Application for Transportation and Utility Systems and Facilities on Federal Lands). On August 16, 2018, Denver Water provided the USFS with a technical memorandum for purposes of its USFS’ Section 7 consultation with the USFWS for the area of the South Platte River Road between the switchyard and the gauge house that are outside the scope of this Proposed Exemption. Attachment J contains records of Denver Water’s consultation on the Project.

On January 10, 2018, Denver Water informed the Commission that it had posted the ICD to its website (www.denverwater.org/strontia-ferc) for a 60-day comment period. Denver Water also sent a notice of the availability of the ICD to the stakeholders and agencies identified for the Project and informed them that Denver Water will be seeking a small hydroelectric power project exemption for it. Denver Water requested that agencies and stakeholders waive the formal consultation process so that Denver Water could expedite the FERC application process, enabling it to more quickly replace the electrical systems that are outdated and unreliable. The reason for Denver Water’s request was that there will be minimal impact associated with the construction of the Proposed Exemption, operation of the Project will be the same, and time is of the essence because of the need to replace the EI&C system. The comment period for the initial release of the ICD ended on March 19, 2018. Denver Water received no comments from any of the stakeholders. On April 20, 2018, Denver Water extended the review and comment on its ICD for its application for exemption of small hydroelectric power project from licensing from March 19 to June 18, 2018, in hopes of receiving written concurrence with waiving the consultation process from all identified agencies and stakeholders (whom all received notification of the extension on April 20th), so that Denver

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Water could submit its application to FERC for its notice and comment on the exemption application. If stakeholders waived the consultation process, Denver Water could have expeditiously filed the exemption application with FERC after the comment period for the ICD, so long as no issues were raised by the stakeholders. Consultation records for this agency and stakeholder outreach are included in Attachment J.

Denver Water only received waivers from the Colorado Energy Office; CDPHE, Water Quality Control Division; and the United States Department of Agriculture, Forest Service, South Platte Ranger District (see Attachment K). Because Denver Water did not receive a written waiver form from all identified agencies and stakeholders, Denver Water took steps to proceed with the last remaining step of FERC’s first stage of consultation, which was to hold a joint stakeholder consultation meeting and site visit.

On June 25, 2018, Denver Water filed 16-day notice of the joint stakeholder consultation meeting and site visit with FERC and included copies of the meeting and site visit agenda, its public meeting notice for newspaper publication, and its list of agencies and stakeholders for the Project (see Attachment J). Denver Water also mailed postcards to the agencies and stakeholders listed in Attachment J on June 25, 2018, to notify them of the joint stakeholder consultation meeting and site visit.

Throughout Denver Water’s public outreach efforts, Indian tribes that may be affected by the Project have been included. Those Indian tribes, as denoted in Attachment J, include:

-Arapaho Northern Business -Northern Ute Tribe -Representatives of Shoshone Tribe -Southern Ute Tribal -Ute Mountain Ute Tribe -Bureau of Indian Affairs – Wyoming Wind River Agency -Oglala Sioux Tribe -Oglala Lakota Nation -Kiowa Tribe of Oklahoma -New Mexico Indian Affairs Department -Cheyenne & Arapaho Tribes -U.S. Bureau of Indian Affairs – SW Region -Northern Arapaho Traditional Elders -Council Pawnee Business Council -Comanche Tribal Business Council -Utah Division of Indian Affairs -Council Cultural Preservation Office Hopi Tribe

-Ute Language and Cultural Committee

-Rosebud Sioux Cultural Resource Office -Navajo Nation Tribal Center -Apache Tribe of Oklahoma -Eastern Shoshone Tribe -Oklahoma Indian Affairs Commission -South Dakota Indian Affairs Office

On June 26, 2018, Denver Water published a public meeting notice in the legal section of the Denver Post, a local newspaper with broad distribution in Jefferson and Douglas counties, Colorado. That same day, Denver water posted the notice of joint meeting and site visit on its Project website at www.denverwater.org/strontia-ferc. Copies of these public outreach materials are included in Attachment J.

RSVPs for the joint stakeholder consultation meeting and site visit were requested by Denver Water by June 6. One person each from CPW and the City of Aurora responded positively. Denver Water held a joint stakeholder consultation meeting and site visit on July 11, 2018. The joint meeting and site visit took place from 2:00 to 3:30 p.m. at the Project site. Attachment L contains the sign-in sheet. Staff from Denver Water, Olsson Associates (Denver Water’s contractor that assisted with preparation of this exemption application), CPW, the City of Aurora, and the USFS were in attendance. Participants were provided the handouts included in Attachment L at the start of the joint meeting and site visit.

The joint stakeholder consultation meeting and site visit was intended to provide interested stakeholders with an overview of Denver Water’s proposal and the potential environmental impact, the information

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made available to stakeholders to date, and data to be obtained and studies to be conducted by Denver Water, along with a tour of the Project site and proposed operational facilities. Stakeholders were encouraged to express their views regarding resource issues that should be addressed in Denver Water’s application for a small hydroelectric power project exemption for the Strontia Springs Project No. 6916. Comments and questions received during the joint meeting and site visit, along with responses to those, were captured electronically and are documented in the meeting record included in Attachment L (which was e-filed with FERC on July 17, 2018). Photos from the site visit are also included in Attachment L

Comments receiving during the joint meeting and site visit primarily pertained to operation of the new turbine and generator and bypasses; anticipated access restrictions and closures from the Proposed Exemption; construction timing considerations to minimize impacts to the resident bighorn sheep herd in Waterton Canyon; coordination with the USFS for activities occurring outside the FERC Project Boundary; American Indian tribal interests; and the FERC process and timeline for the proposed activities. Following the joint meeting and site visit, Denver Water prepared this application for exemption of small hydroelectric power project from licensing pursuant to 18 CFR §4.107. Denver Water took care to address the questions and comments received during the joint stakeholder consultation meeting and site visit in the preparation of this application.

The next opportunity for agencies and stakeholders to comment on the Proposed Exemption is during review of this exemption application. This application is being released for a 90-day stakeholder review. Denver Water is providing the agencies and stakeholders listed in Attachment M with notice of the application availability, and a written request for review and comment of this application concurrent with its filing with FERC. Any comments are requested within the 90-day review—by December 10, 2018—and should be submitted to [email protected] or Denver Water, Attn: Brian Gogas, 1600 West 12th Avenue, Denver, Colorado, 80204-3412.

List of Attachments Included with this Exemption Application

The following list of attachments are included and made part of this application for exemption of small hydroelectric power project from licensing:

• Attachment A Order Issuing License to Construct, Operate, and Maintain Strontia Springs Project No. 6916

• Attachment B U.S. Forest Service Easements for Dam Construction and Access • Attachment C Flow Data, Gross Head, and Power Duration Curves • Attachment D Exhibit G (a Map of the Project and Boundary) • Attachment E Colorado Parks and Wildlife Fish Survey and Stocking Data, and Denver

Water’s Fishery Data Analysis, Strontia Springs Reservoir & South Platte River (Below Strontia Springs Reservoir - Segment #3A) (May 2, 2018)

• Attachment F Cultural Resource Survey, Strontia Springs Reservoir Hydroelectric Controls Upgrade, Douglas County, Colorado

• Attachment G Waterton Canyon Management Plan and Memorandum of Understanding • Attachment H Draft Geotechnical Work Plan • Attachment I Section 401 Water Quality Certification from the Colorado Department

of Public Health and Environment (April 2, 1979)

• Attachment J Denver Water’s Public Outreach Materials • Attachment K Signed Consent to Waiver of Formal Consultation Forms • Attachment L Joint Stakeholder Consultation Meeting and Site Visit Materials

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• Attachment M Stakeholder List (distribution list for this application for exemption of small hydroelectric power project from licensing)

• Attachment N Exhibit F (a Set of Drawings Showing the Structures and Equipment of the Small Hydroelectric Facility)

References

Chapman, S.S., Griffith, G.E., Omernik, J.M., Price, A.B., Freeouf, J., and Schrupp, D.L. 2006. Ecoregions of Colorado (color poster with map, descriptive text, summary tables, and photographs): Reston, Virginia, U.S. Geological Survey (map scale 1:1,200,000).

U.S. Environmental Protection Agency (EPA). 2003. Level III ecoregions of the continental United States (revision of Omernik, 1987): Corvallis, Oregon, USEPA – National Health and Environmental Effects Research Laboratory, Map M-1, various scales.

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Exhibit F. Exhibit F is a set of drawings showing the structures and equipment of the small hydroelectric facility and conforms to the specifications of 18 CFR §4.41(g). Attachment N contains the content of Exhibit F (i.e., a set of drawings showing the structures and equipment of the small hydroelectric facility and conforms to the specifications of 18 CFR §4.41(g)).