The Environmental Review Process

(under the National Environmental Policy Act)

Chelan County PUD is in the process of obtaining a new license to operate the Lake Chelan Hydroelectric Project. The process is referred to as "relicensing." Traditionally, this process consists of a 3½-year consultation/study process conducted by the Licensee, followed by a 2- to 7-year environmental review process conducted by the Federal Energy Regulatory Commission.

In the following pages you will find an overview of the National Environmental Policy Act (NEPA) and the Environmental Assessment process required for the relicensing of the Lake Chelan Hydroelectric Project.

The National Environmental Policy Act (NEPA)

The National Environmental Policy Act of 1969, or NEPA, identifies environmental protection as a major national policy objective. NEPA requires all federal agencies involved in licensing or permitting activities to evaluate the significance of those activities and to assess reasonable alternatives. Through NEPA, federal agencies are obligated to examine a range of alternatives to avoid or minimize the adverse effects of the proposed activities upon the environment.

The NEPA process requires all federal agencies to: 1) integrate environmental considerations into their actions; 2) encourage multiple resource evaluations (water quality, fisheries, recreation, etc.); and 3) promote interagency and public involvement especially when they are engaged in approval of specific projects that involve multiple-resource management decisions.

The NEPA Process During Relicensing

Relicensing a dam involves making multiple-resource management decisions, such as balancing water quality, fisheries and recreation issues. The Federal Energy Regulatory Commission regulations require, at a minimum, that an Environmental Assessment (EA) be developed for the project. An EA summarizes existing information and provides sufficient evidence and analysis to determine the significance of the proposed relicensing activities. An EA also evaluates different project alternatives and recommends the most appropriate alternative.

At the beginning of the NEPA process, an EA scoping document is issued that describes the proposed project and solicits comments and/or recommendations for studies. Scoping meetings are also held to obtain public input and to determine the scope of studies that will be required for the environmental analysis. If significant changes to the scoping document are required, a revised EA scoping document is issued. After receiving input from the agencies and the public, the licensee conducts the recommended studies.

After the initial studies are completed, resource agencies and the public have the opportunity to comment and make recommendations. If necessary, additional studies are conducted the following year. After all of the information is collected and reviewed, a draft EA is issued for the project. If the draft EA determines that the proposed project will cause significant impacts to the environment, an Environmental Impact Statement is required. If the draft EA determines that the proposed project will not cause a significant impact to the environment, a final EA is issued.

The NEPA Process for Lake Chelan

Chelan County PUD is using a new method for relicensing the Lake Chelan Hydroelectric Project that was adopted by the Federal Energy Regulatory Commission in October 1997. This method is referred to as the "Alternative Relicensing Process." Under these new regulations, the consultation/study process and the NEPA process are combined into a single step, and a preliminary draft Environmental Assessment is prepared by the Licensee. (In the traditional relicensing process, the NEPA process is conducted by the FERC in Washington, D.C., after the consultation process is complete). Chelan County PUD believes that combining the consultation and NEPA processes into one step has the following advantages:

During March 1998, Chelan County PUD began the process of consulting with resource agencies and other interested parties to identify issues, management objectives and proposed studies. This information was collected during a series of monthly meetings between March and June. That information, along with written comments provided by interested parties, was used to prepare a review copy of the environmental assessment scoping document (Scoping Document No. 1) as required by the NEPA process.

On October 2, 1998, Chelan County PUD filed a notice of intent to relicense the Lake Chelan Hydro Project with the Federal Energy Regulatory Commission. In addition, an Initial Consultation Document (ICD) describing the existing hydroelectric project and surrounding environment was issued on October 5. The ICD and Scoping Document were distributed to the Lake Chelan Project stakeholder list. Both documents are available on the PUD's relicensing Web site at www.chelanpud.org or by request.

Public meetings were held during November 1998 to give agencies and interested parties an opportunity to review and give input to the Scoping Document and ICD. Following those meetings, Chelan County PUD issued a revised Scoping Document No. 1 to all interested parties for further review and comment. Comments on both documents were due January 19, 1999, 60 days after the meetings in November. A revised environmental assessment scoping document (Scoping Document No. 2) was issued during April 1999, when final detailed study plans were completed.

Chelan County PUD began conducting studies during 1999. A draft license application and environmental assessment will be submitted to the FERC during 2001. Chelan County PUD will submit a final license application and environmental assessment for the Lake Chelan Hydro Project no later than March 31, 2002.