Item B - EWEB Carmen-Smith Relicensing Project

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complete by October, 2012. Because it will take the FERC several months to revise and review the draft license, EWEB does not expect the new license for the Carmen-Smith project to be issued before the end of 2012. There is also a chance that the resolution of this issue by the FERC may be challenged by outside groups, which could add to the relicensing timeline. License Application and Settlement Agreement In EWEB’s application for a new operating license, as amended by the 2008 Settlement Agreement, EWEB committed to adding upstream and downstream fish passage (fish ladder and fish screening facilities) to the lowest of the three project reservoirs, Trail Bridge Reservoir. EWEB will also enhance fish habitat in all three reservoirs and three stream reaches, as well as modifying an existing salmon spawning channel and providing facilities for enhanced stream flow releases. These actions will directly benefit native trout and anadromous Chinook salmon. EWEB has also committed to rebuilding three campgrounds and day use areas associated with the project, and improving native vegetation and wildlife habitat in the project area. In addition, EWEB plans to rehabilitate the power generation and transmission facilities associated with the project so that Carmen-Smith can continue to serve the citizens of Eugene for the next 50 years. License Implementation Preparation EWEB staff has used the time between the Settlement Agreement signing and the issuance of the new FERC license to prepare for the implementation of the agreement and new license. This preparation includes the development of fish passage design elements and power plant rehabilitation plans, along with the completion of discrete engineering projects needed for license implementation. EWEB contracted with CH2M Hill, as design engineer, in 2009, and with Wildish Building Company, as Construction Manager/General Contractor (CM/GC), in 2011, to assist with the design and construction of the project. CH2M Hill, recently completed the 60 percent design development for the fish passage construction elements contained in the settlement agreement. EWEB will continue to work through the design and consultation process for the fish passage elements in 2012, with an expectation that the designs will be substantially complete by late 2012. For the powerhouse improvements, the EWEB and CH2M Hill team completed, in 2011, an in-depth assessment of all power generation components in both powerhouses and at all three dams. This work culminated in a comprehensive document that currently serves as EWEB’s guide for future rehabilitation work at these facilities. Ancillary to the primary work being completed by EWEB staff and CH2M Hill, the project team continues to work on implementation elements that can either be completed now or soon after license issuance. In 2011, the project team completed several construction projects that are part of the overall license implementation program. These include a new bridge at Carmen Diversion Reservoir, installation of a restroom at Trail Bridge Powerhouse, contract construction of two SNOTEL weather stations near Carmen-Smith and replacing the remaining wooden transmission pole structures along the Carmen transmission line. Staff also completed the design of a number of projects that will be implemented shortly after license issuance in 2013. These include a new emergency access road to the top of Smith Dam, a re-routed portion of the McKenzie River Trail near Trail Bridge Dam, and a master plan for new homes and buildings to be built at the project office compound. Project Costs and Financing As part of the Settlement Agreement process, EWEB completed a comprehensive evaluation of license implementation costs. In June 2011, EWEB updated the implementation cost estimate for the S:\CMO\2012 Council Agendas\M120529\S120529B.doc