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HomeMy WebLinkAbout11.06.19 Email from FERC re Docket No. P-803-113 - Pacific Gas and Electric Snyder, Ashley From: 'FERC eSubscription' <eSubscription@ferc.gov> Sent: Wednesday, November 6, 2019 9:36 AM Subject: Delegated Order issued in FERC P-803-113 .ATTENTION:This message originated from outside Butte County. Please exercise judgment before opening attachments, clicking on links, or replying.. On 11/6/2019,the Federal Energy Regulatory Commission (FERC),Washington D.C., issued this document: Docket(s): P-803-113 Lead Applicant: Pacific Gas and Electric Company Filing Type: Delegated Order Description: Order Approving Change in Land Rights re Pacific Gas and Electric Company under P-803. To view the document for this Issuance, click here http://elibrary.FERC.gov/idmws/file_list.asp?accession_num=20191106-3037 To modify your subscriptions, click here: https://ferconline.ferc.gov/eSubscription.aspx Please do not respond to this email. Online help is available here: http://www.ferc.gov/efiling-help.asp or for phone support, call 866-208-3676. Comments and Suggestions can be sent to this email address: mailto:FERCOnlineSupport@Ferc.gov 1 20191106-3037 FERC PDF (Unofficial) 11/06/2019 169 FERC¶ 62,072 UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Pacific Gas and Electric Company Project No. 803-113 ORDER APPROVING CHANGE IN LAND RIGHTS (Issued November 6, 2019) 1. On October 15, 2019, Pacific Gas and Electric Company (PG&E or licensee), licensee for the DeSabla-Centerville Hydroelectric Project No. 803, filed an application requesting Commission approval to grant to Northern California Regional Land Trust (NCRLT), a California non-profit corporation, a deed of conservation easement and agreement—Philbrook Reservoir Planning Unit (conservation easement) on approximately 171 acres of licensee-owned property within the project boundary.' The project is located on the West Branch Feather River, Butte Creek, and tributaries, in Butte County, California. The project occupies federal lands within the Lassen National Forest administered by the U.S. Forest Service and federal lands administered by the Bureau of Land Management. 2. On June 12, 1980, the Federal Energy Regulatory Commission (Commission) issued a license to PG&E for the DeSabla-Centerville Hydroelectric Project.2 In 2003, the Public Utilities Commission of the State of California approved a Bankruptcy Settlement Agreement (SA) whereby PG&E agreed to conserve and protect more than 140,000 acres of PG&E-owned watershed lands located within the Sierra Nevada and Cascade mountain ranges, including lands within Commission-licensed hydropower projects, for a broad range of"beneficial public values".3 To implement its "land conservation commitment", PG&E created an independent non-profit foundation called the Pacific Forest and Watershed Lands Stewardship Council (Stewardship Council), ' The proposed conservation easement involves a total of approximately 277 acres of PG&E-owned property of which approximately 171 acres are within the project boundary. 2 Order Issuing License (Major) (11 FERC ¶ 62,207). 3 These values include the protection of the natural habitat of fish, wildlife, and plants; preservation of open space; outdoor public recreation; sustainable forestry; agricultural uses; and historic values. 20191106-3037 FERC PDF (Unofficial) 11/06/2019 Project No. 803-113 - 2 - made up of an array of interests and expertise from environmental organizations, trade associations, Native American tribes, and federal, state, and local governments.4 3. Under the SA, PG&E is required to provide permanent conservation easements restricting development on the licensee-owned lands to protect and preserve their beneficial public values and/or donate in fee simple to public entities or non-profit conservation organizations whose ownership would ensure the protection of beneficial public values. The SA requires the conservation easements to include an express reservation of PG&E's rights for continued operation and maintenance of hydroelectric and water delivery facilities and finds that PG&E is not expected to make fee simple donations of lands that contain its hydroelectric project works. 4. In its application, PG&E proposes to grant to NCRLT a perpetual conservation easement involving approximately 171 acres of property within the project boundary.' The purpose of the conservation easement is to ensure the permanent protection and preservation of the property's beneficial public values, including the preservation of native plant, tree, and animal habitat, including species protected under the California Endangered Species Act and Federal Endangered Species Act, forest resources, scenic character, outdoor recreation activities and facilities, and protection of historical and cultural resources. The application contains supporting documentation, including, but not limited to, a copy of the proposed deed of conservation easement and agreement, and a draft baseline report documenting existing conditions and uses of the property. 5. The proposed conservation easement property within the project boundary is primarily used for power generation and is occupied by Philbrook reservoir and dam and spillway, various access roads, a campground, a day use area, a boat ramp, and an historic gate tender's cabin. Along the shoreline on the east end of the reservoir are 42 existing recreational homesites.6 The property is also used for informal public recreational 4 Among others, the Stewardship Council includes the California Department of Fish and Wildlife, California State Water Resources Control Board, U.S. Department of Agriculture —Forest Service (Forest Service), U.S. Department of Interior— Bureau of Land Management, and a Stewardship Council appointee representing California Tribal interests. The licensee also petitions the Commission to approve text reserving PG&E's rights to comply with the project license and orders of the Commission. The text is to be used as a template for future conservation easement agreements PG&E intends to file for prior Commission approval that involve other Commission-licensed projects. 6 The recreational lots are long-standing third party uses of PG&E-owned property that are occupied by approximately 42 cabins and 21 associated boat docks. Some of the cabin structures and all of the docks are located within the project boundary. PG&E manages these third party uses through existing lease/dock agreements. Sections 7 and 9 20191106-3037 FERC PDF (Unofficial) 11/06/2019 Project No. 803-113 - 3 - activities such as fishing, boating, picnicking, swimming, and limited off-road vehicle use. 6. While the proposed conservation easement grants NCRLT the right to monitor and enforce the protection and preservation of the property's beneficial values, and other limited rights; it does not grant NCRLT any affirmative rights to implement enhancements on the property, exercise physical or managerial control of day-to-day operations, or create or require the development of specific land use plans for the property. Further, with the exception of the existing cabin and dock structures noted above, the easement agreement identifies specific prohibited activities on the property, including, but not limited to property subdivision, construction of buildings, excavation, commercial uses, and any other uses that are inconsistent with the protection and preservation of the property's beneficial public values. 7. The proposed conservation easement allows the licensee to engage in, or authorize third parties to engage in, specific limited uses on the property, including vegetation management, maintenance and restoration of existing structures, control of predatory or problem animals, and other uses consistent with prudent and customary land management activities. Further, the conservation easement includes specific provisions that explicitly recognize and reserve the Commission's jurisdiction and authority over the project and the licensee's obligations to comply with applicable laws, Commission regulations and orders, and project license; and reserves PG&E's ability to file in its sole discretion, applications requesting Commission approval of proposed project and non-project uses of project lands and waters.' 8. Standard license Article 5 requires licensees to obtain and retain all property interests necessary for the construction, maintenance, and operation of the project. Article 5 imposes a fundamental requirement: the licensee must have sufficient rights with respect to construction, maintenance, and operation of the project to enable the Commission, through its licensee, to carry out its regulatory responsibilities under the Federal Power Act (FPA). Contractual agreements a licensee may make with a non- licensee for assistance in financing, constructing, and operating a project are permissible, of the proposed conservation easement allows for these existing uses to continue under PG&E's current management. 7 See item 4, page 4 of the proposed conservation easement agreement. These provisions ensure the licensee retains sufficient ownership and control of the project property to fulfill license requirements and perform any and all acts ordered by the Commission on the subject property consistent with the principles of the "Linweave Clause". See Linweave, Inc., 23 FERC¶ 61,391 (1983), where the Commission first used the provision to modify a long-term lease of project property to prevent the non- licensee/lessor from controlling rights necessary to accomplish project purposes and to ensure that the licensee/lessee would possess all such rights. 20191106-3037 FERC PDF (Unofficial) 11/06/2019 Project No. 803-113 - 4 - provided the licensee retains in such arrangements sufficient ownership and control of the project to fulfill its license requirements, and to enable the Commission to properly regulate the project. 9. The proposed conservation easement is consistent with the provisions of Article 5 and the FPA and would reserve the Commission's and licensee's jurisdiction and authority over the project license and ensure the continued use and protection of the subject property for project purposes and operations. The proposed conservation easement would also support the licensee's efforts to meet its obligations under the approved SA. For these reasons, the change in land rights application is in the public interest and should be approved. The Director orders: (A) Pacific Gas and Electric Company's application filed October 15, 2019, requesting Commission approval to grant to Northern California Regional Land Trust a deed of conservation easement and agreement for a perpetual conservation easement on approximately 171 acres of project lands within the boundary of the DeSabla-Centerville Hydroelectric Project No. 803 and petition for approval of text reserving its rights to comply with the license and orders of the Commission, is approved. (B) Within one year from the date of this order, the licensee must file with the Commission a copy of final executed documents showing the completion of the deed of conservation easement and agreement approved in ordering paragraph(A) above. If the approved conservation easement and agreement has not been completed within this timeframe, the licensee must file, instead, a report identifying the expected completion date of the approved conservation easement and agreement and expected filing date of the required documentation. (C) This order constitutes final agency action. Any party may file a request for rehearing of this order within 30 days from the date of its issuance, as provided in section 313(a) of the FPA, 16 U.S.C. § 825/(2018), and the Commission's regulations at 18 C.F.R. § 385.713 (2019). The filing of a request for rehearing does not operate as a stay of the effective date of this order, or of any other date specified in this order. The licensee's failure to file a request for rehearing shall constitute acceptance of this order. Robert J. Fletcher Land Resources Branch Division of Hydropower Administration and Compliance 20191106-3037 FERC PDF (Unofficial) 11/06/2019 Document Content (s) P-803-113 .DOCX 1-4