[Federal Register Volume 66, Number 170 (Friday, August 31, 2001)]
[Notices]
[Pages 45979-45982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22008]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Floodplain/Wetland Statement for the Interconnection of the 
Sundance Energy Project with the Western Area Power Administration's 
Liberty-Coolidge 230-kilovolt Transmission Line (DOE/EIS-0322)

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of record of decision.

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SUMMARY: PPL Sundance Energy, LLC, (Sundance) applied for an 
interconnection and transmission service from the Western Area Power 
Administration (Western) for the Sundance Energy Project, Pinal County, 
Arizona. To accommodate the request, Western has decided to upgrade and 
add to its transmission system in order to incorporate the new 
generation into the system. This Record of Decision (ROD) and Statement 
of Findings have been prepared in accordance with Council on 
Environmental Quality regulations for implementing the National 
Environmental Policy Act (NEPA) (40 CFR parts 1500-1508), Department of 
Energy (DOE) Procedures for Implementing NEPA (10 CFR part 1021), and 
DOE's Compliance with Floodplain/Wetland Review Requirements (10 CFR 
part 1022). Western's decision for its action considered the 
environmental ramifications of the Sundance Project. Western has 
determined that no significant environmental impacts would result from 
construction, operation, and maintenance of the Sundance Energy 
Project, the natural gas pipelines, the approximately 7 miles of new 
high-voltage transmission lines, or from the upgrade of approximately 5 
miles of the Liberty-Coolidge 230-kilovolt (kV) and Coolidge Signal 
115-kV Transmission Lines.

DATES: Western will take no action within floodplains until the 
completion of a 15-day public review period, ending September 17, 2001.

ADDRESSES: Written comments on Western's Floodplain Statement of 
Findings should be addressed to Mr. John Holt, Environment Manager, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005; fax (602) 352-2630, 
email [email protected].

FOR FURTHER INFORMATION CONTACT: Mr. John Holt, Environment Manager, at 
the above address or by phone (602) 352-2592.

SUPPLEMENTARY INFORMATION: Western is the lead Federal agency under 
NEPA for the Sundance Energy Project. No Federal, State, or Tribal 
organizations requested cooperator status. Western has decided to enter 
into interconnection agreements with Sundance, and to construct, 
operate, and maintain transmission system additions to provide the 
interconnection with its transmission system. The transmission system 
additions selected as part of the Proposed Action addressed in the 
Environmental Impact Statement (EIS) include a new 230-kV bay at 
Western's existing Coolidge Substation, an upgrade of the existing 
Coolidge-Signal 115-kV #2 Transmission Line to 230-kV, and an expansion 
of the existing Signal Substation. Western also selected new single- 
and double-circuit 230-kV transmission line additions as described 
under Alternative 3 in the EIS. Alternative 3 was selected over the 
Proposed Action transmission system additions and two transmission line 
alternatives because it would have less impact on agricultural 
activities. The selected transmission line would involve the 
construction of one new double-circuit 230-kV transmission line and one 
new single-circuit 230-kV transmission line, both heading north from 
the western edge of the powerplant towards Western's existing Liberty-
Coolidge 230-kV Transmission Line. As the new transmission lines reach 
the South Side Canal, they would run northeast until they meet the 
Liberty-Coolidge 230-kV Transmission Line. The west circuit of the new 
double-circuit 230-kV transmission line would interconnect with 
Western's existing Liberty-Coolidge 230-kV Transmission Line, heading 
west to Liberty. The east circuit of the new double-circuit 230-kV 
transmission line would join the new single-circuit 230-kV transmission 
line and become a new double-circuit 230-kV transmission line on 
Western's existing Liberty-Coolidge 230-kV Transmission Line right-of-
way, heading east towards Coolidge. The north circuit of this new 
double-circuit 230-kV transmission line would interconnect to the 
existing Liberty-Coolidge 230-kV Transmission Line and continue on the 
existing alignment north and then east to Coolidge. The south circuit 
of this new double-circuit 230-kV transmission line would become a 
single-circuit

[[Page 45980]]

transmission line and continue east until it meets Western's existing 
Coolidge-Signal 115-kV #2 Transmission Line. The new 230-kV 
transmission line would combine with Western's existing Coolidge-Signal 
115-kV #2 Transmission Line as a new double-circuit transmission line, 
heading north and east along the Coolidge-Signal 115-kV #2 Transmission 
Line alignment into Coolidge Substation.
    This decision is based on a review of the environmental impacts of 
the project as addressed in the Draft and Final EIS, a review of all 
comments received during the 30-day waiting period after issuance of 
the Final EIS, and Western's abilities to continue to meet its current 
contractual obligations and customer needs, and maintain regional 
transmission reliability with the interconnection.
    The Sundance Energy Project EIS (Draft issued March 2001, Final 
issued June 2001) addresses the effects of constructing and operating a 
nominal 540-megawatt, natural gas-fired, simple cycle, electrical 
generation peaking plant south of Coolidge, Arizona, in rural Pinal 
County. PPL Sundance Energy, LLC, owns the property on which it will 
build the powerplant. The project will include the construction of a 
natural gas transmission system for supplying fuel to the plant site, 
and a water transmission system for inlet air cooling, emission 
control, and on-site use. Western has no decision regarding these 
components of the project. Western did take into account the 
environmental ramifications of the whole project as addressed in the 
EIS in making its decision.

Alternatives Considered

No Action

    Under the no action alternative, Western would not grant an 
interconnection to its system. Without the ability to interconnect with 
Western's system, the proposed project and appurtenant facilities would 
not be built. Existing environmental conditions would not change, 
although there may be adverse economic impacts due to the absence of 
needed electricity to meet peak energy demands. The No Action 
Alternative would result in slightly fewer overall environmental 
impacts, however, it was not selected because it would not meet the 
needs defined in the Sundance Energy Project EIS. The No Action 
Alternative would not have allowed Western to meet its obligations 
defined by its own Open Access Transmission Tariff, which was 
implemented to meet the intent of the Federal Energy Regulatory 
Commission (FERC) order to open transmission line access (FERC Order 
Nos. 888 and 888-A).

Facility

    Western dismissed from full analysis alternative sites to the 
generating facility. The State of Arizona Corporation Commission has 
jurisdiction over siting of powerplants and made no suggestion 
regarding alternative sites or systems during their siting process. 
Western has no decision regarding the siting of the generating 
facility.

Gas Pipeline

    There were no pipeline alternatives addressed in the EIS. Western 
has no decision regarding the proposed gas supply for the project.

High Voltage Transmission Lines

    Three routing alternatives, in addition to the proposed action, 
were evaluated. The proposed action addressed in the EIS would be a 
``loop-in-loop-out'' from the existing Liberty-Coolidge 230-kV line to 
the Sundance facility. This would involve a double circuit 230-kV line 
due north out of the plant site, approximately 8 miles up Tweedy Road 
to the interconnection with Western's existing Liberty-Coolidge 230-kV 
line. The proposed action would also include building a new 230-kV 
transmission line from the Sundance facility to an expanded Signal 
Substation, 1.5 miles east of the Sundance facility, and upgrading the 
existing Coolidge-ED2 115-kV line to 230-kV from the Signal Substation 
to the Coolidge Substation. The proposed action was not selected due to 
higher impacts on agricultural activities compared to the selected 
alternative.
Alternative 1
    Alternative 1 would be identical to the proposed action with one 
new double-circuit 230-kV transmission line and one new single-circuit 
230-kV transmission line. Alternative 1 would have all three circuits 
going north from the powerplant towards Western's existing Liberty-
Coolidge 230-kV Transmission Line. The one new single-circuit 230-kV 
transmission line would follow the same alignment as the double circuit 
to the intersection of the Liberty-Coolidge line with Western's 
existing Coolidge-ED2 115-kV Transmission Line, where it would follow 
that route into the Coolidge Substation. This alternative was not 
selected due to higher impacts on agricultural activities.
Alternative 2
    Alternative 2 would be identical to Alternative 1 except that the 
new single-circuit 230-kV transmission line would follow the same 
alignment until it crosses Western's existing Coolidge-ED2 115-kV #1 
Transmission Line. The new single-circuit 230-kV transmission line 
would continue east until it meets Western's existing Coolidge-Signal 
115-kV #2 Transmission Line. The new single-circuit 230-kV transmission 
line alignment then heads north and east adjacent to the Coolidge-
Signal 115-kV #2 Transmission Line into Coolidge Substation. This 
alternative was not selected due to higher impacts on agricultural 
activities.

Comments Received During the Waiting Period

    Three comment letters were received on the final EIS. Two comment 
letters stated that the change in air pollution control technology to 
Selective Catalytic Reduction (SCR) following issuance of the draft EIS 
required a supplement to the draft to allow the public to comment. The 
change to SCR technology was based on EPA Region IX and Pinal Country 
Air Quality Control District permit requirements. Western recognizes 
the concerns expressed by the commentors regarding ammonia 
transportation, storage, and use. Western will require the Sundance 
Energy Project to develop and implement an emergency response plan in 
accordance with State and local regulations.
    The Environmental Protection Agency, Region IX (EPA), expressed 
concern over potential human health effects through the long-term use 
of Central Arizona Project (CAP) water mixed with waste water for 
irrigating crops. There is little potential for environmental or human 
health effects from the use of reclaimed waste water for irrigation. 
The only potential vector for the waste water to affect human health is 
the irrigation of food crops. The water would be used to irrigate 
alfalfa, Bermuda grass, cotton, and barley. Barley has the potential to 
be used in products for human consumption, and alfalfa could be fed to 
livestock ultimately consumed by humans. As shown in the Final EIS in 
Table 4-17, the waste water would be blended with CAP water to 
approximate the water quality in existing on-site ground water wells, 
currently used to irrigate the same lands where the blended waste water 
would be applied. Therefore, the potential to affect human health would 
be approximately the same as the current and past irrigation

[[Page 45981]]

practices on the site and within the general area of Pinal County. For 
the reasons discussed above, and the fact that the waste water would be 
blended and stored in a lined pond prior to its discharge as irrigation 
water, the potential vectors for environmental effects would be 
limited. The liner would be designed to eliminate effects to ground 
water. There are no surface waters in the area other than the canals 
from which the CAP water would be extracted. There are no aquatic 
resources in the area and the ponds would be fenced to exclude 
wildlife. Waterfowl can land on the pond but the constituency of the 
water will not differ materially from that of local irrigation ponds, 
canals, effluent lakes, or other bodies of water currently available to 
them. Sundance Energy will be required to monitor the quality of waste 
water as part of the Arizona Department of Environmental Quality (ADEQ) 
Water Reuse Permit. The monitoring plan will ensure that waste water 
matches existing groundwater quality, thus minimizing potential adverse 
human health and environmental effects. If concentrations of any 
constituents approach levels known to be chronically toxic to wildlife, 
the sampling frequency will be increased to at least quarterly. Weekly 
observations of bird use at the ponds will be recorded, and the area 
around the pond would be monitored for wildlife mortalities. If 
concentrations of any constituents reach acutely toxic levels and the 
extended bird use of the ponds is high or substantial wildlife 
mortalities are recorded, Sundance will implement measures to reduce 
the toxicity by removing the toxic sediments or reducing wildlife use 
through exclusion or distraction devices.
    EPA requested actual flow rates and chemical constituents of 
reclaimed water and waste water. The Draft EIS indicates that less than 
1 million gallons per year of regeneration waste water will be produced 
and the constituents of that were listed in Table 4-17 in the Draft EIS 
and updated in Table 4-17 of the Final EIS.
    Additionally, EPA requested the status of the various State water 
permits. The Aquifer Protection Permit Application and Wastewater Reuse 
Permit Application are currently being developed to submit to the 
Arizona Department of Environmental Quality. The Sundance Energy 
Project would not be operated without these permits. Both applications 
will be submitted in mid-August 2001. Sundance Energy would be required 
to monitor the quality of the wastewater as a part of the Reuse Permit.
    EPA commented on the potential for wildlife to accumulate 
wastewater constituents, which is addressed above. Briefly, the waste 
water would be blended, if necessary, in order to bring all constituent 
levels to the level of existing available water. There would be no 
additional accumulation of heavy metals or trace elements beyond that 
which currently exists in the region. However, both the Arizona 
Department of Fish and Game and the U.S. Fish and Wildlife Service 
received copies of and had opportunities to review the Draft and Final 
EIS. Information on the toxicity of any of the constituents in the 
water can be found at or http://www.pwrc.usgs.gov/new/chrback.htm or 
http://www.oehha.org/cal_ecotox/.
    EPA asked the status of consultations with the U.S. Army Corps of 
Engineers (COE) and the ADEQ regarding crossing of ``Waters of the 
United States'' with the transmission lines and pipelines. Any wetland 
disturbance that would occur as a result of pipeline or transmission 
line construction would be covered under Nationwide Permit 12. The EIS 
describes three potential gas interconnections: two onsite and one that 
would require the construction of a 14-mile pipeline offsite. It is 
currently anticipated that the two on-site interconnections would be 
sufficient to provide an adequate gas supply to the project and, if so, 
the off-site pipeline may not be needed. Therefore, permitting by COE 
for this pipeline has not been initiated and would be initiated only at 
such time that it is certain that it is needed for the project and a 
detailed pipeline design is developed as is required for the 
notification to the COE. Similarly, notification to the COE for the 
transmission lines would be submitted as detailed designs for them are 
completed. They are anticipated to affect wetlands or waters of the 
United States because the lines would not be designed to span all 
canals, mapped floodplains, or other wet areas.
    EPA recommended the project commit to working with the local 
community and concerned public regarding an emergency response plan and 
measures. The Sundance Energy Project has already initiated contact 
with the Eleven Mile Corner School. Additionally, Sundance Energy would 
be working with the State and Pinal County to develop emergency 
response plans as required by the types and amounts of chemicals used 
and stored on the Project site. Western will ensure that a Spill 
Control and Countermeasure Plan is developed in accordance with 
applicable Federal, State, and local regulations and that an emergency 
response plan is developed.
    EPA expressed concerns regarding noise levels that would be 
experienced by nine residences relatively close to the Project. 
Sundance Energy has completed the rezoning for the project and has 
received its industrial use permit from Pinal County. The project is 
currently working with Pinal County on local building and site issues. 
Currently, Pinal County has indicated that a berm would not be needed 
for visual or noise screening. Western will ensure that local noise 
ordinances are met.
    EPA requested information regarding the Arizona Corporation 
Commission's (Commission) powerplant siting process. Generally, the 
Commission requires submitting an Application for a Certificate of 
Environmental Compatibility (ACEC). The ACEC requires the applicant to 
provide descriptions of the facilities it intends to develop, along 
with environmental information on air quality, biological, cultural, 
and recreational resources. Public meetings are held by the Arizona 
Power Plant and Line Siting Committee to recommend to the Commission 
whether or not to issue the Certificates. The Commission then holds 
public hearings to make its final determination. PPL Sundance Energy, 
LLC, has received a Certificate of Environmental Compatibility from the 
Commission. Through the Arizona power plant siting process, information 
was provided regarding other site options that were considered and 
evaluated by Sundance Energy. When siting a gas-fired powerplant, 
proximity to available gas and transmission are important for 
minimizing both costs and environmental impacts. In the case of 
Sundance Energy, the transmission interconnection point was the 
Coolidge Substation, and the nearest available gas was located at the 
two lines where the current site for the project is located. Therefore, 
the project could be located at the Coolidge Substation, on the 
existing pipelines, or some reasonable location between them. Sites at 
or near the Coolidge Substation were considered but were dismissed 
because of costs, proximity to the Gila River floodplain, proximity to 
the Casa Grande National Monument, proximity to the Gila River Indian 
Reservation, and increased potential for impacts to cultural resources. 
Sites between the two were dismissed because of proximity to the 
National Monument, the town of Coolidge, and other residential areas.
    EPA requested a detailed description of the different alternatives 
developed for the high-voltage transmission line

[[Page 45982]]

routes. These are detailed in Table S-1 in both the Draft and Final 
EIS. Briefly, the alternative selected as the environmentally preferred 
alternative, although slightly longer, impacts less agricultural land 
and has less potential to adversely affect local transportation. 
Transmission line routing options were all developed to try to utilize 
existing rights-of-way (canals, roads, pipelines, and transmission 
lines) and field lines to minimize establishing new rights-of-way that 
were not necessary and/or avoid needlessly traversing the middle of 
properties. The Proposed Action and Alternatives 1 and 2 were developed 
to take advantage of those various routing opportunities between the 
Project site and the Coolidge Substation. Alternative 3 was developed 
in direct response to comments from local landowners and the Arizona 
power plant and transmission line siting committee in order to mitigate 
concerns they had about the effects that the other transmission line 
alternatives would have on their continued use of their property. 
Alternative 3 was selected.

Mitigation Measures

    All measures addressed in the EIS to minimize adverse impacts from 
the transmission system additions have been adopted. Table 2-4 in the 
Draft EIS lists the standard mitigative measures that are part of 
Western's proposed action. These would be used for the transmission 
line additions. Some of the measures include restricting vehicular 
traffic to existing access roads or public roads, recontouring and 
reseeding disturbed areas, environmental awareness training for all 
construction and supervisory personnel, and mitigation of radio and 
television interference generated by transmission lines. Additionally, 
Spill Prevention Control and Countermeasure (SPCC) plans for modified 
facilities will be reviewed to ensure new equipment is addressed.
    In addition, Western will ensure that PPL Sundance Energy, LLC, 
implements the following measures:
    1. Detailed emergency response plan and SPCC plans that meet 
Federal, State, and local requirements.
    2. Implement conditions of individual or nationwide 404 permits if 
needed for new pipeline construction across waters of the United 
States.
    3. Conduct pre-construction surveys along the new pipeline route to 
ensure impacts to special status species do not occur.
    A Mitigation Action Plan with annual reporting requirements will be 
developed for the project to comply with DOE regulations found at 10 
CFR part 1021.33 and made available to the public.
    Western is the lead Federal agency for compliance with Section 106 
of the National Historic Preservation Act for all components of the 
project. All archaeological and traditional cultural properties 
determined significant in consultation with the Arizona State Historic 
Preservation Officer and interested tribes will be avoided. If they are 
somehow not avoided, a mitigation plan will be developed in 
consultation with the State Historic Preservation Officer and the 
interested tribes. Cultural resource monitoring, if needed, will take 
place during construction of new high voltage transmission lines and 
pipelines.
    Western is also the lead for compliance with Section 7 of the 
Endangered Species Act. A biological assessment was prepared and 
submitted to the U.S. Fish and Wildlife Service (Service) with a 
determination that the project could affect but not adversely affect 
any candidate, proposed, or listed species. This Record of Decision is 
being issued based on verbal concurrence from the Service on Western's 
determination and written concurrence is expected soon. Additionally, 
during informal consultation, the Service requested, and Western has 
agreed, if the 14-mile long pipeline is built, the crossing of the 
Santa Cruz Wash would be enhanced for the cactus ferruginous pygmy owl. 
The enhancement will include planting mesquite trees on either side of 
the pipelines to facilitate emigration of the owl.

Floodplain and Wetlands Statement of Findings

    Construction of the Sundance Energy Project would not alter the 
natural drainage patterns on site. The immediately surrounding area is 
primarily agricultural and contains irrigation canals, which will move 
water around and away from the facility. No floodplain classifications 
for the site and surrounding area have been mapped. The storm water 
flows will be retained on site in constructed basins to minimize sheet 
flows.
    The new gas pipeline would cross portions of the 100-year flood 
zone of the Santa Cruz Wash but is not anticipated to affect the 
floodplain. The ground surface would remain relatively unchanged from 
pre-development conditions.
    All transmission system alternatives, including the selected 
transmission line alternative and the upgrade of the Coolidge-Signal 
line, would traverse the 100-year flood zone of McClellan Wash near 
Coolidge. A large portion of the floodplain is spanned by the existing 
transmission facility. It would not be practical to use existing 
transmission line structures and rights-of-way without going through 
the floodplain. No new transmission structures are expected to be 
placed in the floodplain. Instead, work would be confined to existing 
structures, resulting in short-term, temporary disturbances to the 
floodplain. If, after final project design, additional new structures 
are needed in the floodplain, they will be designed to conform to 
applicable Federal, State, and local floodplain protection standards.
    A portion of the facility gets inundated during heavy rain events. 
A wetland delineation study was performed on the site and found none of 
the criteria needed to identify a wetland (i.e., soils, hydrology, and 
vegetation) existed. No wetlands would be affected by the proposed 
action.

    Dated: August 20, 2001.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 01-22008 Filed 8-30-01; 8:45 am]
BILLING CODE 6450-01-P