1-Norristown Dam FERC Alternatives Study 2022-08-02.pdf

Solving flow problems since 1894

Alden Research Laboratory, LLC Massachusetts | Colorado | Oregon | Washington

30 Shrewsbury Street, Holden, Massachusetts 01520-1843 508-829-6000 • www.verdantas.com/alden

FERC Licensing Alternatives Analysis

Norristown Dam Hydropower Consultation

Montgomery County RFP 21-64

Hydroelectric Conversion Consulting Services

Revision 00

Alden Job No. : 3223NDHYDRO

Prepared for:

Montgomery County Pennsylvania

August 2022

Norristown Dam FERC Licensing Alternatives Analysis August 2022 ii

3223NDHYDRO

This Page Intentionally Left Blank iii

Name/Title Signature/Date Preparer (P)

Reviewer (R)

Benjamin Coleman

Engineer III 8/2/2022

P

Daniel Parker

Hydropower Practice Lead

8/2/2022 P

Jenna Rackovan

Fisheries Biologist 8/2/2022

P

Kimberly Capone

Fisheries Biologist

Jacob LaFontaine

Engineer I

Gregory S. Allen, P.E.

Director, Environmental and

Engineering Services

8/2/2022

R

Record of Revisions

Revision

No.

Revision

Date Change Description Reason for Change

0 08/02/2022 Initial Issue iv v

Table of Contents

Executive Summary ................................................................................................................ xii

1.0 Introduction

1.1 Background

1.2 Project Description

2.0 Objectives

3.0 Introduction to FERC Approvals

3.1 Preliminary Permit

3.2 License

3.2.1 Notice of Intent (NOI) and Pre-Application Document (PAD)

3.3 Exemption

3.4 FERC Prioritization and Acceptance

4.0 Other Required Approvals and Certifications

4.1 Clean Water Act Section 401 Water Quality Certification

4.2 Pennsylvania Historical and Museum Commission Consultation

4.3 Chapter 105 Water Obstruction and Encroachment Permit

4.4 Chapter 102 Non-Point Discharge Elimination Permit for Stormwater Discharges

Associated with Construction Activities

4.5 Pennsylvania Limited Power Permit

4.6 Submerged Lands License Agreement

4.7 US Army Corps of Engineers Section 404 Permit

4.8 Low Impact Hydropower Institute (LIHI) (Optional)

5.0 Potential Studies

5.1 Flow

5.2 Fish Entrainment

5.3 Upstream and Downstream Fish Passage Feasibility Assessment

5.4 American Eel Passage

5.5 Water Quality

5.6 Freshwater Mussel Survey

5.7 Cultural Assessment

5.8 Recreation Needs Assessment

5.9 Land Use Survey

5.10 Bathymetric Survey

5.11 Wetland Identification

5.12 Rare, Threatened, and Endangered Species Surveys

vi

6.0 Sale, Lease, or Operating Agreement Alternatives

6.1 Controlling Entity

7.0 Licensing Cost Estimates

8.0 Timeline

9.0 Summary and Recommendations

9.1 Decision Matrix

9.2 Recommendations

10.0 References

vii viii

List of Tables

Table 1: Comparison of the three FERC licensing processes (FERC 2004)

Table 2. Estimated cost range for potential studies

Table 3. Estimated cost of FERC licensure

Table 4: Estimated permitting costs

Table 5: Estimated timeframe for FERC license

Table 6: FERC decision matrix

List of Figures

Figure 1: Norristown Dam location map

Figure 2: Norristown Dam area map

Figure 3: Norristown general layout

Figure 4: FERC licensing flow chart

Figure 5: FERC licensing stages flow chart ix x

TRANSMITTAL LETTER

August 3, 2022

Drew Shaw

Environmental Planning Manager

Montgomery County Planning Commission

P: 610.278.3733 F: 610.278.3941

PO Box 311, Norristown, PA 19404-0311

425 Swede St., Suite 201, Norristown, PA 19401

Draft Report for the

Norristown Dam

Dear Mr. Shaw, In response to Montgomery County’s Request for Proposal RFP 21-64 and as described in Alden Research Laboratory, LLC’s (Alden’s) Proposal No. : ENV-21-P-158 submitted

March 25, 2022, I am pleased to submit this draft FERC Licensing Alternatives Analysis

Report for your review.

Please do not hesitate to contact me with any questions or comments.

Sincerely, Benjamin Coleman

Engineer III

P 508.829.6000 ex 6453 bcoleman@aldenlab.com mailto:bcoleman@aldenlab.com xi xii

Executive Summary

Alden Research Laboratory, LLC (Alden) has prepared the following report to inform and consult with the Montgomery County Planning Commission (County) and other stakeholders regarding the Federal Energy Regulatory Commission’s (FERC’s) approval process and how this applies to potential hydropower development of the Norristown

Dam site.

Section 1.0 provides background information about the Norristown Dam site and a brief history of the hydropower development considerations taken to this point. This includes a brief history of the dam from construction in the 1800s through the County’s acquisition of the property and the latest improvements in the 2000s, and a summary of the Alden’s previous investigations into the feasibility of developing hydropower at the site including a resource assessment and hydropower feasibility assessment. This section also includes a narrative describing the relevant features of the site.

Section 2.0 provides a concise objective of this study which includes providing stakeholders the necessary information to make educated decisions regarding hydropower development at the Norristown Dam.

Section 3.0 provides an introduction to FERC, how they regulate hydropower development and operations, and the various routes that may be taken to obtain FERC approval. FERC applications and approval routes include,

• Preliminary permit application,

• Exemption application,

• License application,

• Integrated Licensing Process (ILP),

• Traditional Licensing Process (TLP), and

• Alternative Licensing Process (ALP).

Sections 4.0 through 0 provide additional details that should be considered when making the decision to seek FERC approval and which route to choose. These considerations include other required permits and approvals outside of FERC, potential study commitments, estimated expenses, and estimated time commitments. The most influential of these are the costs and time commitments. As these are difficult to estimate accurately at this stage of development, high and low estimates were developed to provide a range for each. The estimated cost for FERC licensing for hydropower development at the Norristown Dam ranged from about $460,000 to

$830,000, and the time commitment has been estimated as about 3.5 to four years.

Based on the information provided herein, should the County decide to seek FERC approval for hydropower development at the Norristown Dam, Alden recommends first applying for an exemption. An exemption application requires a lower level of effort than that of the license and, if approved, the exemption goes on into perpetuity, unlike the license, which must be periodically renewed. Thus, the exemption is preferable to a license and a more valuable asset for the project. An exemption to licensure would be granted on a case-by-case basis and it is unclear if FERC will approve an exemption for xiii this site; however, there is enough evidence in the regulations to suggest the site will qualify and enough benefit to obtaining an exemption to justify seeking this route of

FERC approval. Should the exemption application be denied, the County may pursue a licensure path and maintain their priority position with FERC.

xiv

1.0 Introduction

1.1 Background

The Norristown Dam (also known as the Swede Street Dam) is located approximately 15 miles northwest of Philadelphia Pennsylvania, spanning the Schuylkill River between Norristown and

Bridgeport Pennsylvania (Figure 1, Figure 2). It was originally constructed as a timber crib dam along with an adjacent canal and lock in the early 1800s to support a shipping route along the Schuylkill River. The canal and lock were located on the Bridgeport side of the site but have since been abandoned and filled. The timber crib dam has since capped with concrete and reinforced with driven steel sheet piling on the upstream and downstream sides. The site was later acquired by PECO Energy Company (PECO) and the impoundment used to supply water for their Barbados Island Power Station, located immediately upstream of the dam. In the 1990s, PECO transferred ownership of the dam to Montgomery County. The terms of the transfer included the complete rehabilitation of the spillway and the installation of the fish ladder on the Bridgeport side of the site. This work was completed in 2008.

The Norristown Dam has been identified by the United States Department of Energy’s Oak

Ridge National Laboratory as an existing unpowered dam with small hydropower development potential (Hadjerioua, 2012). In 2016, Alden Research Laboratory, LLC (Alden) was contracted by the County to conduct a two-phase Feasibility Analysis of the Norristown

Dam to assess the site’s generating potential: Phase 1 pre-feasibility study or Resource

Assessment, and Phase 2 Feasibility Study.

The Norristown Dam Resource Assessment, submitted to the County in March 2017, included a review of the following resources:

• Existing conditions and environmental resources, o Water resources, o Water quality, o Geology and soils, o Fish and aquatic resources, o Fish passage, o Wildlife and botanical resources, o Wetlands, floodplains, riparian, and littoral resources, o Rare, threatened, and endangered species, o Recreation and land use, o Cultural and historic resources,

• Generation resources, o River flows.

o Available generation flows, o Head, o Efficiency,

• Power and energy estimates,

• Development options,

• Financial evaluation, o Preliminary conceptual cost estimates, o Value of energy, o Operations, maintenance, and other costs, o Financing, o Estimated payback period and return.

No insurmountable barriers to hydropower development at the site were identified in the

Resource Assessment. As a result, the County authorized Alden to move forward with the

Phase 2 Feasibility Study.

In December of 2017, Alden submitted the Norristown Dam Feasibility Study to the County. The

Feasibility Study provided a more in-depth review of many of the same elements in the

Resources Assessment along with conceptual designs and an economic evaluation. Alden developed five conceptual hydropower design options consisting of varying generating technologies and arrangements. Following an initial screening, the three most feasible options were selected for economic evaluation. The economic evaluation included detailed development cost opinions, value of energy review, a survey of potential funding sources, such as grants and incentives, and a detailed pro forma. The pro forma was completed for each of the three selected options under three separate financing scenarios. Given the available hydropower generating technology and financing options in 2017, the development was not found to be financially viable; however, the project showed enough potential to suggest viability given improvements in generating technology and/or financing.

With recent changes in the Federal Energy Regulatory Commission (FERC or Commission) licensing regulations, new commercially available hydropower generating technology, and the anticipated release of federal funding for green energy development projects contained in the Infrastructure Investment and Jobs Act, there is the potential to improve the financial viability of hydropower development at the Norristown Dam. There are also new commercially available turbine and generator technologies which have potential application at the

Norristown Dam and may improve the financial viability of development.

In 2020, the County contracted Alden to develop a FERC preliminary permit application and necessary documentation for the Norristown site. Due to changes in FERC licensure rules, it became unclear if applying for the preliminary permit was the optimal regulatory process for the County to pursue at the time, and it is our understanding that the application has not been submitted to FERC as of the submittal of this report.

In May of 2022 the County awarded to Alden the contract for Hydroelectric Conversion

Consulting Services with the objectives of better understanding FERC licensing/exemption processes, selecting a path forward to develop renewable hydropower at the Norristown

Dam, and submitting an appropriate application, Figure 1: Norristown Dam location map

Figure 2: Norristown Dam area map

1.2 Project Description

The Norristown Dam consists of an 869 ft long, 12 ft high concrete capped, timber-crib dam, set in a wide V shape approximately north to south across the river, see Figure 3. The dam terminates at a stone masonry abutment on the north (Norristown) end and to a fish ladder structure to the south (Bridgeport). The fish ladder was installed in the mid-2000s at the south abutment of the dam to facilitate upstream passage of migratory fish species. There are no other outlets or gates located at the project; however, Pennsylvania American Water has an intake located in the impoundment. A public recreational area and parking lot are adjacent to the dam on the south side to allow public access to the waterway and to observe the fish passage facilities (Figure 3).

Figure 3: Norristown general layout

2.0 Objectives

The objective of this report is to provide stakeholders the necessary information on FERC licensure strategies and processes such that they may make informed decisions on how to proceed with licensure and potential hydropower development at the County’s Norristown

Dam site. This is accomplished by summarizing FERC licensure strategies and the licensing processes, evaluating the various strategies as they apply to the Norristown Dam site, and estimating other time, effort, and financial commitments that would be associated with obtaining the right to develop and operate hydropower at the site.

3.0 Introduction to FERC Approvals

This section provides an introduction to FERC and the various paths to seeking FERC approval to develop and operate hydropower at sites that fall under FERC jurisdiction.

Hydropower development in the United States is regulated by FERC and/or the individual states, depending on the characteristics of the site and the intended development1. As authorized by the Federal Power Act (FPA), FERC has the exclusive authority to license most nonfederal hydropower projects that are located on navigable waterways or federal lands, use surplus water from a federally operated dam, or are connected to the interstate electric grid, which accounts for the majority of hydropower development in the United States (FERC

2017). Smaller, nonfederal hydropower developments which do not meet these criteria are regulated by each state.

FERC does not regulate the physical construction of electric generating facilities (although they are extensively involved with dam safety), electricity sales rates, or the activities of municipal electric systems. These responsibilities typically are under the jurisdiction of the state public utility commission.

The right to develop and operate hydropower is issued by FERC in two forms: a FERC license or a FERC exemption. Once issued, a FERC license is valid for a period of up to 50 years. At the end of the license period, the project may be surrendered to federal agencies, decommissioned, or must undergo relicensing. The relicensing process requires nearly the same level of effort as licensing and the project will be required to meet all rules and regulations applicable at the time the new application is submitted, regardless of those in place at the time of the original issue. An exemption from licensure, on the other hand, is issued indefinitely, and thus an exempt project may not be required to comply with most regulatory changes2. The exemption application also requires a lower level of effort to prepare. For these reasons, the exemption is preferable to the license; however, the criteria to qualify for an exemption exclude most projects. The FERC license and exemption are discussed in more detail in Sections 3.2 and 3.3, respectively.

To acquire the right to develop a hydropower facility under FERC’s jurisdiction, the applicant

(an individual, business, or municipality; referred to herein as entity) must begin by filing with

FERC either a license application, an application for exemption, or a preliminary permit application. The exemption application requires a lower level of effort than that of the license, however both processes are extensive, and it may take years for the required rights to be granted. The preliminary permit does not give an entity the right to develop or operate hydropower, it simply reserves the holder the sole right to submit a license or exemption application for the time it takes to develop said application. The preliminary permit application requires a significantly lower level of effort than that of the license or exemption and may be developed and submitted in a matter of weeks. Preliminary permits, the period in which they are valid, and time extensions are discussed further in Section 3.1 below.

When evaluating a license or exemption application, FERC must give equal consideration to developmental and environmental values. Environmental values include fish and wildlife resources, including their spawning grounds and habitat, visual resources, cultural resources, recreational opportunities, and other aspects of environmental quality. Developmental values

1 The United States Army Corps of Engineers (USACE) regulates federally owned hydropower.

This does not apply to the Norristown Dam and the USACE is not discussed further in this report.

2 There may be conditions included in a FERC exemption, such as fish passage and bypass flow, that will be monitored by FERC. The right to operate the hydropower project, and the exemption, may be revoked if these conditions are not met.

include power generation, irrigation, flood control, and water supply. The required content in all the applications described below is regulated by the FPA and intended to provide FERC with information to assess the project’s effects on these values and balance the potential impacts against the potential benefits (FERC 2004).

3.1 Preliminary Permit

A FERC license or exemption application requires the applicant to provide a significant amount of site information and a level of project design. A preliminary permit maintains priority for consideration while the permittee studies the site, develops preliminary designs, and prepares the exemption or license application. This permit may be foregone if sufficient site information and design is available; however, if this information is not available, a preliminary permit application should be filed with FERC as soon as possible to prevent another entity from filing beforehand. The preliminary permit does not authorize construction to begin, it provides the applicant with the exclusive right to investigate the site for development. FERC application prioritization and acceptance are discussed in Section 3.4 below.

A preliminary permit is issued for three years to allow the entity time to prepare and submit a

FERC application. Once the preliminary permit has been issued, the permittee must make substantial progress towards preparing a comprehensive exemption or license application, including consulting with all required stakeholders. During the term of the preliminary permit, the applicant must submit periodic reports describing progress made to date towards a license application, a schedule of activities and target dates as well as reporting on the status of the studies being conducted. Officially, the preliminary permit may be extended once for a period of two years; there have been examples in which FERC has granted additional time extensions.

Once issued, a preliminary permit is not transferable, however, if the entity holding the preliminary permit is a transferable asset (i.e., the permit is held by a company as opposed to a person) the entity (and the preliminary permit) may be sold.

3.2 License

A FERC license is required to develop, construct, and operate a hydroelectric generating facility within FERC’s jurisdiction, unless the project is issued an exemption as discussed in

Section 3.3. or is non-jurisdictional. Once issued, a FERC license is valid for a period of 30 to 50 years. At the end of the license period, the owner may submit an application for relicensing, surrender the project to the federal government, or have the project decommissioned.

There are three license process options to choose from when pursuing a license. These are:

• Integrated Licensing Process (ILP),

• Traditional Licensing Process (TLP), and

• Alternative Licensing Process (ALP).

The major differentiating factor between the three processes is the level and timing of FERC and stakeholder involvement including opportunities to review and comment. Table 1 provides a comparison of the three processes. The default process is the ILP, which provides a defined schedule and timeline for the completion of the licensing process that is set by FERC.

This process identifies environmental issues and study plans early on as the stakeholders and

FERC are more involved in this stage of the process. The TLP has a more flexible schedule. FERC and the stakeholders tend to not be as involved as in the ILP until the license application is filed. However, this can lead to potential delays or unpredicted costs or studies. The ALP is meant for more collaboration with stakeholders and the timeline is driven by the licensee and stakeholders, rather than FERC. If a licensee elects to pursue either the ILP or ALP, they must file a request to use the selected process with FERC prior to beginning the license process. Once the licensing process is approved by FERC, the applicant must submit a Notice of Intent (NOI) and a Pre-application Document (PAD)(Layman et al. 2006). See Section 3.2.1 for mor information on the NOI and PAD.

The FERC licensing process typically takes four to six years to prepare and submit a final license application and for FERC to issue a license. FERC licenses may be issued for 30 to 50 years, depending on a number of factors related to the specific development and the obligations that the applicant has committed to. The default FERC license term is 40 years.

Once obtained, a FERC license may be sold or transferred with FERC approval. Obtaining a

FERC License requires one or two primary application submittals: the preliminary permit application as described above, and/or the license application. The FERC regulations provide information on the license application process, including pre-filing consultation, document filings, public and other stakeholder participation, statutory rights of certain federal and state agencies, dispute resolution, and termination of the licensing process. While FERC is the legally identified federal entity leading the hydropower licensing process, it is also required to involve other federal and state agencies in that process. The FPA specifies the statutory authority that certain agencies, notably the US Fish and Wildlife Service (USFWS), National Marine Fisheries

Service (NMFS), and the respective state agency with Clean Water Act Section 401, Water

Quality Certification, are included in this process.

Table 1: Comparison of the three FERC licensing processes3 (FERC 2004)

3.2.1 Notice of Intent (NOI) and Pre-Application Document (PAD)

Prior to submitting an application for a new license or to renew an existing license, an applicant must notify FERC by submitting a notice of intent (NOI) and concurrently a pre-application document (PAD). The required content of the NOI and PAD is also regulated by the FPA. The NOI provides FERC and stakeholders with details about the applicant’s intent to apply and which path they propose to use, a site narrative, infrastructure or potential infrastructure, details about the region surrounding the site, and potential stakeholders. The

PAD provides a process plan and summary, additional site details, a stake holder contact list, and a summary of all existing site details in geology and soils resources; water resources; fish and aquatic resources; wildlife and botanical resources; wetlands, riparian, and littoral habitat; rare, threatened, and endangered (RTE) species; recreation and land use; aesthetic resources; cultural resources; socioeconomic resources; tribal resources; and a river basin

3 OEP – Office of Energy Projects; REA – Ready for Environmental Analysis; Exhibit E -

Environmental Exhibit as found in 18 CFR 5.18 of the FPA; Exhibit A – Project Description as found in 18 CFR 5.18 of the FPA; EA – environmental assessment; EIS environmental impact statement; NEPA – National Environmental Protection Agency description. The PAD then identifies gaps in this data and proposes studies to fill said gaps.

FERC requires this information to make a decision regarding which licensing process is best suited for the site.

3.3 Exemption

A FERC exemption functions just as a license, providing the holder the right to develop and operate hydropower in FERC's jurisdiction, but, as the name suggests, without the need of a license, and subject only to the conditions of the exemption set forth by FERC and by federal and state fish and wildlife agencies at the time it is issued. An exemption, unlike the license, is issued in perpetuity.

A small hydroelectric project of 10 MW or less may be eligible for a small hydroelectric exemption, on a case-by-case basis. To be eligible for this exemption, the applicant must propose to install or add capacity to a project that is located at a non-federal pre-1977 dam or at a natural water feature and consist of less than 10 MW of installed capacity.

The application process for an exemption follows the same pathways as licensure, as outlined in Section 3.2; however, the process is somewhat streamlined and requires less extensive information.

3.4 FERC Prioritization and Acceptance

Any individual citizen of the United States, association of U.S. citizens, corporation organized under federal or state law, state, municipality, or Indian tribe (entity) may file an application or a competing application for a license, exemption, or preliminary permit (FERC 2007). An entity is not required to own the proposed development site to submit said application, and, at times, multiple entities may submit applications for the same site. FERC regulations describe the required content of each type of application, the process by which FERC will analyze applications received, and how to prioritize when multiple applications are received.

If multiple complete applications for the same type of award (such as a preliminary permit) at the same site are received, FERC will award the preliminary permit to the earliest received application. One exception to this is that if two acceptable applications have been received within the prescribed time frame, one by an applicant who is a municipality and one by an applicant who is not, the FPA requires FERC to issue a preliminary permit to the municipality.

Also, FERC will not accept an application for a site where an authorized, active preliminary permit or license has been issued. If, for the same site, an acceptable application for a preliminary permit and an acceptable application for an exemption are received on the same day, FERC will issue the rights to an exemption over a preliminary permit, as an exemption is a more complete application.

These factors are important considerations for Montgomery County to understand as it prepares to secure its rights to pursue hydropower development at the Norristown Dam. There is no known entity in competition for the Norristown site as of the writing of this report, however, it is in the County’s best interest to submit the selected application in a timely fashion despite having the municipality preference in their favor.

When a single application is received, FERC will evaluate the application for compliance with its regulations regarding the content of the application. If the application fulfills those requirements, FERC will issue a Notice of Complete Application on its website (www.ferc.gov) and will require the applicant to publish the application in a newspaper that serves the site of the proposed hydropower development. If the application does not meet the content requirements, FERC will issue a Notice of Deficiency to the applicant and post that notice on its website. The applicant will have the opportunity to correct the identified deficiencies and file that information with FERC for a subsequent evaluation.

The FPA, as amended, and the implementing regulations, specify what is required to develop a hydropower generation facility (at an existing dam or including the construction of a new dam) and the processes through which the rights to do so are acquired and maintained. FERC assists developers with assessing and determining which of its processes to pursue to obtain the rights to develop and construct the hydropower generation facility at a particular site. This assistance can be obtained by contacting the regional FERC staff who manage hydropower facilities in the state in which the proposed development will occur in an informal prefiling consultation, or by filing a formal Declaration of Intention with the Commission. FERC will also advise the applicant if the proposed project does not fall under its jurisdiction, but under the jurisdiction of the state in which the site is located.

4.0 Other Required Approvals and Certifications

While a FERC license is the primary authorization to develop and operate a hydroelectric power facility, there are a number of other permits, approvals and steps that may be required.

The most notable of these is Section 401 of the Clean Water Act.

4.1 Clean Water Act Section 401 Water Quality Certification

Under the Clean Water Act, a water quality certification is required for any project with a federal permit or license, which may affect water quality. This permit is required before FERC may issue a license for a hydropower development. The water quality certification confirms that a project does not adversely impact water quality of the waterway associated with the project. Many states have received authority to implement Section 401 of the Act, including

Pennsylvania. The Pennsylvania Department of Environmental Protection has such authority within the commonwealth.

In recent years, many state agencies with the authority to issue water quality certifications have included in those certifications mandatory conditions which have historically been negotiated in the FERC licensing process. If the agency is unsuccessful in having the desired condition or requirement captured in the draft FERC license, they may include that provision in the water quality certification. The certification is not readily subject to modification and is a prerequisite to a FERC license. The applicant must accept the water quality certification in order to be issued a FERC license.

The State of Pennsylvania requires other permits or approvals for hydroelectric projects. The

Pennsylvania Department of Environmental Protection (PADEP) has an online tool available to help guide applicants to which permits may be required for a particular project

(www.ahs.dep.pa.gov/PACT). The following sections describe some of the additional permits or approvals that may be needed for development at the Norristown Dam.

http://www.ferc.gov/ http://www.ahs.dep.pa.gov/PACT

4.2 Pennsylvania Historical and Museum Commission Consultation

Before any infrastructure development, a project consultation must be conducted with the

Pennsylvania Historical and Museum Commission (PHMC) under Section 106 of the

Pennsylvania History Code. This consultation should occur once the applicant knows the “area of potential effect” from the development. To begin the process, a request for environmental review needs to be submitted through PA-SHARE. Guidelines can be found at:

https://www.phmc.pa.gov/Preservation/About/Documents/Submitting%20a%20New%20Enviro nmental%20Review%20Project%20in%20PA-SHARE.pdf https://www.phmc.pa.gov/Preservation/Environmental-Review/Pages/default.aspx

4.3 Chapter 105 Water Obstruction and Encroachment Permit

This permit is required, under the 25 PA code, for any project where there is work in or along streams or wetlands.

4.4 Chapter 102 Non-Point Discharge Elimination Permit for Stormwater Discharges

Associated with Construction Activities

This permit is required, under the 25 PA code before construction and confirms that the sedimentation caused by the development of the project does not adversely impact water quality of the waterway associated with the project.

4.5 Pennsylvania Limited Power Permit

The Department of Environmental Protection Bureau of Waterways Engineering requires a limited power permit for a project that uses water to produce electricity. This permit is usually obtained after a FERC license or exemption and involves an annual fee based on kilowatts of installed capacity.

4.6 Submerged Lands License Agreement

A Submerged Lands License Agreement is required for any project that has a physical structure over a waterbody. This agreement does have a fee associated with it. However, it is determined based on the type of project. Municipalities or other public entities may be exempted.

4.7 US Army Corps of Engineers Section 404 Permit

The US Army Corps of Engineers (USACE), through the Clean Water Act Section 404 permit, regulates the discharge of any fill material or dredge material that may flow into US waters.

Dredging and/or fill is frequently associated with hydropower construction and so a Section

404 permit may be required. A separate application to the USACE is required and is prepared after the design of the project has advanced enough that approximate quantities of fill or dredge material are known. In order to obtain this permit, an applicant must demonstrate that they have taken steps to avoid environmental impacts. In limited circumstances, the hydropower developer may be eligible for a Nationwide permit, which is an expedited authorization when small amounts of dredge or fill material are involved.

https://www.phmc.pa.gov/Preservation/About/Documents/Submitting%20a%20New%20Environmental%20Review%20Project%20in%20PA-SHARE.pdf https://www.phmc.pa.gov/Preservation/About/Documents/Submitting%20a%20New%20Environmental%20Review%20Project%20in%20PA-SHARE.pdf https://www.phmc.pa.gov/Preservation/Environmental-Review/Pages/default.aspx

4.8 Low Impact Hydropower Institute (LIHI) (Optional)

The Low Impact Hydropower Institute (LIHI) evaluates hydropower production facilities for impacts to the environment and certifies those that meet or exceed its criteria as “low impact”. Certification is not a requirement, though it can be beneficial in many ways. Some states require LIHI certification to be eligible to receive higher revenues for their Renewable

Energy Credits (RECs), which are produced with each megawatt of renewable electricity. The certification is for projects that are recognized by an independent party as low environmental impact by following the LIHI standards for river flows, water quality, fish passage, watershed protection, threatened and endangered species protection, cultural recreation protection, and recreation. However, this certification is necessary if a project is looking to apply for alternative energy credits or generate Green-e certified energy4. This certification does require an initial application fee and an annual maintenance fee.

5.0 Potential Studies

Each FERC licensing or exemption process will include identifying and conducting studies to provide an adequate amount of information for FERC and the statutory agencies to determine that the project will overall be in the best interests of the people, the community, and the environment and that the cost to produce the energy will be comparable or less costly than the next likely source of power.

The number and extent of studies required for FERC permitting at the Norristown Dam Site will be negotiated with FERC and other invested agencies (together referred to herein as

Agencies), during the exemption or licensing process. Agencies, other public entities, and the public will review the preliminary application and request technical and biological studies they feel are necessary. Agreed upon studies will require study plans that will then be reviewed and approved by the agencies. Requested studies must include the following information:

• Goals and objectives of the study,

• Relevant resource management goals,

• Existing information on the subject and any additional information needs,

• The nexus to the project operation and its effects on the surrounding resources,

• How the methods will be consistent with what has been accepted previously, and

• The level of effort and cost

As each project requires a unique set of studies to address identified gaps in the existing data.

At the current level of development, it is difficult to predict exactly which studies will be required. However, the following is a list of anticipated studies that may be requested:

• Flow (including aesthetic),

• Fish entrainment, 4 Green-e-energy certification is a certification given by the Center for Resource Solutions

(CRS)to renewable energy that meets North American high standards. The energy must be generated from new facilities, have a completely transparent and accurate market, and the purchaser must have sole title.

• Upstream and downstream fish passage feasibility assessment,

• American eel passage,

• Water quality,

• Freshwater mussel survey,

• Cultural assessment,

• Recreation needs assessment,

• Land use survey,

• Bathymetry survey,

• Wetland identification, and

• Rare, threatened, and endangered species surveys.

5.1 Flow

This study usually involves an evaluation of habitats, water velocities, and river flows in the bypass reach and downstream of the project. This may include habitat surveys that will measure substrate, wetted area and perimeter, water velocity, and river depths at varying river flow conditions. This habitat data will be used along with target fish species’ life stage requirements to determine the appropriate minimum flows through the bypass reach. As fish life stage habitat requirements vary, the minimum flows may also be different for different times of the year, according to those species’ life stages.

5.2 Fish Entrainment

Some agencies may request field studies to determine estimates of fish entrainment at the proposed hydropower project. However, many have accepted desktop studies to estimate these numbers. The qualitative analysis of entrainment potential is based on project operation and design and biology and behavior of target fish species known to occur in the project vicinity. Monthly and annual entrainment numbers will be estimated for abundant species passing downstream of the project using data provided in the EPRI Turbine Entrainment and

Survival Database for sites that are similar and other recognized references.

5.3 Upstream and Downstream Fish Passage Feasibility Assessment

Since an upstream fish passage system is in place at Norristown Dam, only an assessment of its efficiency may be required. If migratory fish species are present at the Norristown Dam or a defensible argument for the need to pass resident fish species downstream is made, a downstream fish passage study may be required. A literature review of downstream passage technologies and project operation modifications will be completed to summarize the state-of-the-art methods for protecting fish at the hydro project. The information generated from the literature review will be used to assess the potential applicability of available alternatives for the project. This feasibility assessment will include preliminary engineering and biological screening of each technology identified and a more detailed evaluation of applicability to the site for the approaches determined to have the greatest potential for providing safe and effective passage. For the detailed feasibility evaluation, conceptual designs and estimates of biological effectiveness and cost (order-of-magnitude) will be developed for each selected alternative.

5.4 American Eel Passage

American eel is a catadromous species, spawning in the Sargasso Sea and migrating into freshwaters to grow and mature, which will then return to the Sargasso Sea to spawn and die.

Some American eel studies in the US and Canada have indicated that the species’ abundance may be declining, necessitating protection. If required, passage studies could include both juvenile upstream and adult downstream studies. Juvenile upstream passage usually includes night-time surveys to determine the presence and abundance of eels in the project vicinity. Downstream passage studies may include using telemetry (radio or acoustic) techniques to evaluate the movement and route selection of eels past the project to evaluate the potential for delays, injury, or mortality. This would require a field crew to collect and tag eels and release them upstream of the project to be monitored. Some agencies may accept the use of desktop analyses to estimate eel entrainment at a project.

An alternative to performing American eel passage studies may be to commit to nighttime hydropower shutdowns during the downstream migration “season". The timing and duration of

American eel migration downstream to the ocean varies and may last 10 weeks or 8 months.

Information specific to the Schuylkill River will be solicited to develop an understanding of

American eel presence and migration to better propose alternatives for passage.

5.5 Water Quality

Water quality monitoring generally includes the collection of a variety of water parameters including but not limited to temperature, dissolved oxygen (DO), pH, and turbidity. Water quality data loggers (sondes) are deployed throughout the project area and continuous monitoring will occur over the duration of several months. If historic water quality data exists, this study may be limited to collecting and analyzing several samples over a single year.

5.6 Freshwater Mussel Survey

Freshwater mussels exist in many rivers of the northeast US and are a vital part of river ecosystems. Hydropower development and operation may affect mussel populations. If required, freshwater mussel surveys must be conducted by a certified mussel biologist and will consist of identifying, mapping, and sampling the mussel community surrounding the project with a field crew on a seasonal basis over the course of one to two years.

5.7 Cultural Assessment

The cultural resource study identifies any historical properties with religious or cultural significance (i.e. sites, objects, buildings, or structures), including Native American tribal significance, at the project and describes the effect that operations may have on those properties. This study will provide the basis for the plan for protection and future management of the identified historical properties.

5.8 Recreation Needs Assessment

Recreational assessment requires the applicant to evaluate the availability and use of recreational opportunities and public access at or around the site, as well as the potential demand for any future facilities. The evaluation would include public safety, site access, and recommendations for improvements.

5.9 Land Use Survey

Field surveys would be conducted to identify, describe, and map the vegetation cover, habitat types, and other uses of the land. Land use surveys are typically used to map terrestrial species’ habitats and may also support infrastructure design efforts.

5.10 Bathymetric Survey

Bathymetric surveys provide topographic maps of submerged lands, the riverbed in this case.

Bathymetric maps will help increase our understanding of water resources and hydraulics upstream and downstream of the dam. This information will aid in the design and evaluation of civil structures such as turbine intakes and fish passage entrances and exits.

In shallow waters such as those found surrounding the Norristown Dam, bathymetric data is typically collected using a boat-mounted, single-beam sonar system in conjunction with time series water level loggers and GPS surveying equipment. The sonar equipment takes depth measurements that are correlated with time-stamped horizontal locations provided by the

GPS. The water surface elevation at the time of the sounding is concurrently recorded by the water level loggers. The water depth is then subtracted from the water surface elevation to produce a point in a known horizontal and vertical datum.

5.11 Wetland Identification

This study involves conducting a wetland mapping and characterization survey to identify any wetlands that may be in the project area. Once the wetlands are identified, a list of plant and animal species that utilize these habitats would be developed. In addition, the study should include any available and recommended measures that can be taken to address the effects the project may have on these habitats. If any wetlands would be irreversibly affected by the hydropower project, mitigation for those effects may be required.

5.12 Rare, Threatened, and Endangered Species Surveys

As part of the initial outreach to resource agencies to participate in the process to develop the Norristown Dam, the applicant will request lists of rare, threatened, and endangered (RTE) species that are protected under the Endangered Species Act. For those species which have ranges which include the region where the Norristown Dam is located, habitats and species surveys may be required. Surveys will need to be conducted to identify any RTE species that may be present in the vicinity of the project. Additionally, any habitat requirements or critical habitats must be identified. The study should include any recommended environmental measures that can be taken to address the effects the project may have on these species.

6.0 Sale, Lease, or Operating Agreement Alternatives

Montgomery County has indicated its interest in maintaining all reasonable options for the ultimate development, ownership, and operation of a hydropower generation facility at the

Norristown Dam. The options which the County and Alden have discussed are:

• Sell the dam as it is in its present condition,

• Lease the property and the rights to develop and operate hydropower to an unrelated party,

• Pursue a FERC preliminary permit, exemption, or license and decide at various milestones whether to retain the asset with the issued development rights or offer it to an unrelated party, or

• Pursue a FERC exemption or license, develop the hydropower asset and continue to operate the new generating asset and consume the power within the County's system.

To assist the County with its decision, Alden will have the asset valued by a reputable firm who specializes in assessing the value of generating assets at several milestone points in the process to develop the hydropower potential of the site. It is Alden’s understanding that valuation of a hydropower generating asset which will be developed in the future requires some measure of professional judgment since the final design, energy production estimate, and licensing obligations and associated costs have not been conclusively determined. As such, ranges of values as opposed to a single value estimate are anticipated. To provide comprehensive assessments, the assessment firm will require information provided in this report and in the

Norristown Dam Hydropower Feasibility Study concurrently being developed by Alden. Alden will provide the firm with the required information as it becomes available, and a memorandum will be delivered to the County once Alden receives the assessment.

6.1 Controlling Entity

One important consideration for the County to understand in the context of deciding how to proceed with the options for realizing the maximum benefit from the site, is the restriction FERC places on the holder of a preliminary permit. FERC preliminary permits, once issued to the applicant, are non-transferable. However, the applicant’s entity, such as a limited liability company (LLC) or a special purpose authority, may be acquired by a party other than the original applicant, and so transfer the preliminary permit to a party other than Montgomery

County. This process has been implemented in many other transfers of preliminary permits in the past.

Once FERC issues a license to the entity, the preliminary permit ceases to exist. At that point, the entity holding the license may transfer that license to another party. The entity transferring and the entity receiving the license both have to submit a request to FERC to approve such a transfer, but the license can be transferred without the entity being included. Prior to approving a transfer, FERC will evaluate the transferee’s ability to appropriately and safely develop and operate the proposed hydropower project.

7.0 Licensing Cost Estimates

As mentioned above, at this stage of design and development there is uncertainty surrounding the study requests and the level of effort that will be required to achieve FERC approval. As such, an anticipated list of tasks and a high and low cost-estimate to complete each task was developed to provide a range for budgeting purposes. Table 2 provides a list and summary of potential studies with budgetary costs, Table 3 provides budgetary costs for each step through FERC licensing process, and Table 4 summarizes fees that may be required.

Table 2. Estimated cost range for potential studies

Task Low High

Study plans (each) $5,000 $10,000 12 Study Subtotal $60,000 $120,000

Studies

1 Flow (including aesthetic) $15,000 $25,000

2 Fish entrainment $20,000 $50,000

3 Downstream fish passage feasibility assessment $30,000 $50,000

4 Eel passage $10,000 $30,000

5 Water quality $10,000 $20,000

6 Freshwater mussel survey $5,000 $15,000

7 Cultural assessment $15,000 $25,000

8 Recreational use and needs assessment $10,000 $20,000

9 Land use survey $5,000 $15,000

10 Bathymetric survey $40,000 $50,000

11 Wetlands identification $10,000 $20,000

12 Rare, threatened, and endangered species survey $10,000 $30,000 12 Study Subtotal $180,000 $350,000

TOTAL $240,000 $470,000

Table 3. Estimated cost of FERC licensure5

Steps in FERC Licensure Process Low High

First Stage Consultation

NOI/PAD $25,000 $30,000

Joint Agency and Public Meeting Planning $5,000 $8,000

Joint Agency/Public Meeting and Site Visit $5,000 $10,000

Agency/Tribal/Stakeholder…