TENNESSEE’S FERC RELICENSING EXPERIENCE

TENNESSEE’S FERC RELICENSING EXPERIENCE Daniel C. Eagar, ManagerNatural Resources SectionDivision of Water Pollution ControlTennessee Department of Environment and Conservation

Tapoco Hydroelectric ProjectAlcoa Power Generating Inc.

The Little Tennessee River • Part of most biologically diverse river system in the nation • Diversity has been reduced by habitat fragmentation and elimination Appalachian elktoe Smoky madtom

Fontana Dam Upstream Downstream Tellico Dam

LAND RESOURCE • Tapoco includes more than 10,000 acres of land in Tennessee • Located between Cherokee National Forest and Great Smoky Mountains National Park • Extremely important for conservation of region’s biological diversity

THE PROCESS • Alternative licensing process • Applicant Prepared Environmental Assessment • Participants involved in scoping for Environmental Assessment and identification of technical studies • Establish protocol for meetings and negotiations • Work towards Agreement in Principle on various subjects • Develop final Project Settlement Agreement

Eastern Band of Cherokee Indians Sierra Club Friends of Lake Santeetlah National Park Service Tennessee Department of Environment and Conservation Tennessee Wildlife Resources Agency The Nature Conservancy Tennessee Clean Water Network NCDENR Parks and Recreation NCDENR Division of Water Quality NCDENR Water Resources Town of Santeetlah Graham County, NC Swain County, NC American Whitewater American Rivers US Fish and Wildlife Service Western Carolina Paddlers US Forest Service Bureau of Indian Affairs APGI, Tapoco Tennessee Valley Authority Nantahala Outdoor Center Town of Robbinsville NC Wildlife Resources Commission Friends of Lake Santeetlah THE PARTICIPANTS (partial)

SOME KEY ISSUES FOR TENNESSEE INTERESTS • Flow regime and water temperature dominated by Fontana Dam located upstream • Tellico Reservoir has eliminated riverine habitat downstream • Parts of Tapoco Project located within GSMNP • Calderwood Bypass assessed as impaired (303d)

PRIMARY TENNESSEE INTEREST GROUP GOALS • Restore flows to Calderwood bypass to support cool/warm-water aquatic life • Resolve GSMNP boundary issues • Provide for long-term preservation of Tapoco non-project lands

CALDERWOOD DAM

Calderwood Bypass Flow Negotiation • Tennessee’s Water Quality Certification rules require that activities result in “no net loss of water resource value” • APGI’s opening position was “We propose to operate the project the same way do now. Therefore, no net loss.” • TN advised that state law requires, in part, reclamation of polluted waters • State would recognize controlling influence of TVA’s Fontana Dam in establishing flow regime for bypass • Mitigate for unavoidable impacts by other measures (riparian and watershed land preservation)

CALDERWOOD BYPASS FLOWS • Tested releases of various flows to determine thermal effects (the higher the flow the lower the temperature) • Allowed for seasonal and inter-annual variation • Established flow range between 25 and 65 cubic feet per second (much lower than normal flow of river)

RIPARIAN AND WATERSHED PRESERVATION • Permanent conservation easements on 5,691 acres • Term of license conservation easement on 3,974 acres • Permanent conservation easement on 200 foot riparian buffer on non-project lands totaling 182 acres • Annual funding of $100,000 for management of biological resources in project area

GSMNP BOUNDARY RESOLUTION • “Land swap” negotiated to cede inundated, park-owned lands to Tapoco in exchange for Tapoco-owned lands within park’s legislated boundary • Parties to agreement will work together to seek congressionally legislated solution which would streamline land transfer process

KEYS TO SUCCESS • Identify realistic goals • Request or require studies that will inform or drive decisions • Interest groups work together for desired outcome • Focus on areas of agreement

TENNESSEE’S FERC RELICENSING EXPERIENCE