CALPECO 625 AND 650 ELECTRICAL LINE UPGRADE PROJECT

PRESENTATION TO THE TRPA GOVERNING BOARD APRIL23, 2015

THE NORTH LAKE TAHOE TRANSMISSION SYSTEM A loop that runs between Truckee, Squaw Valley, Tahoe City, and Kings Beach Multiple Lines, 132, 609, 625, 629,

650

Loop operates at 60 kV

Some lines, or line segments, have capacity for 120 kV

Kings Beach Diesel Generation Station provides backup capacity

PROPOSED PROJECT

Primary Components: rebuild the 650 Line; rebuild the 625; rebuild the Northstar substation

connection; and upgrade, modify, and/or

decommission six substations.

Upgrade 625 and 650 Lines and substations from 60 kV to 120 kV

EIS/EIS/EIR LEAD AGENCIES

USDA Forest Service EIS pursuant to NEPA

Tahoe Regional Planning Agency EIS pursuant to the TRPA Compact

California Public Utilities Commission EIR pursuant to CEQA

ALTERNATIVE 4: PROPOSED ALTERNATIVE

PHASE 1 Rebuild/Reconductor 650 Line

Northstar Tap

Northstar Substation Improvements

PHASE 2 Substation

Improvements North Truckee

Northstar

Initiate Kings Beach

Decommission Brockway Substation

PHASE 3 Rebuild/Reconductor 625 Line

Substation Improvements Tahoe City

Squaw Valley

Complete Kings Beach

STATUS OF USFS REVIEW/APPROVAL

Draft Record of Decision (ROD) released with Final EIS/EIS/EIR in Sept. 2014

Received one objection triggering objection review/resolution process

Objection resolution meeting held on Jan. 5, 2015

Objection resolution letter from USFS provided on Jan. 15, 2015, closing the objection process – No modifications to the document were directed.

USFS may issue final ROD and authorize project

CPUC ACTION

ALJ Proceeding Written Testimony

Extensive Briefing

CPUC Approved Decision on March 26, 2015 Certifies EIR as CEQA compliant

Grants Permit to Construct with conditions: May construct Phase 1 now

Construction of Phase 2 (89 MW) and 3 (100 MW) subject to approval of new load growth model and verification of approaching trigger points

CPUC Energy Division will review and verify (Tier 2 Advice Letter process)

SCOPE AND FOCUS OF THE EIS/EIS/EIR Land Use Forestry Resources Scenic Resources Geology, Soils, and Land

Capability and Coverage Hydrology and Water Quality Biological Resources Recreation Heritage and Cultural

Resources

Hazards and Hazardous Materials

Public Services and Utilities Traffic and Transportation Air Quality, Greenhouse Gas

Emissions, and Climate Change

Noise Socioeconomics and

Environmental Justice Growth Inducing Impacts

SCENIC RESOURCES SR 267

Existing View from SR 267

SCENIC RESOURCES SR 267

Existing View from SR 267

SCENIC RESOURCES SR 267

Existing View from SR 267

SCENIC RESOURCES SR 267

Existing View from SR 267

Effects Found Not Significant • Land Use • Forestry Resources • Scenic Resources • Geology, Soils, and Land Capability

Coverage

• Hydrology and Water Quality • Recreation • Hazards and Hazardous Materials • Public Services and Utilities • Traffic and Transportation • Noise

Significant and Unavoidable Effects in Lake Tahoe Basin

Proposed Alternative • Cultural Resources – Potential to encounter previously unrecorded subsurface sites

during construction

ENVIRONMENTAL REVIEW HISTORY

March/April, 2012

November 2013

December 2013

December 2013

January 7, 2014

Scoping Notices and Meetings

Draft EIS/EIS/EIR published

GB & APC Public Hearings

2 Public Workshops

End of Public Comment Period

FINAL EIS/EIS/EIR

Final EIS/EIS/EIR distributed in September 2014

Evaluated four Alternatives plus the No Action/No Project Alternative

Alternative 4 (Proposed Alternative) identified as the Environmentally Preferable/Environmentally Superior Alternative

One Significant and Unavoidable Impact for Alternative 4 in TRPA Jurisdiction: Potential discovery/damage of unrecorded subsurface cultural

resources

ALTERNATIVE 4: ARTICLE 6.16 FINDINGS The Final EIS/EIS/EIR is in compliance, procedurally and

substantively, with Article VII of the Compact, Chapter 3 of the Code and these Rules of Procedure

For all significant impacts in the basin (except one), the finding was made that “changes or alterations have been required in or incorporated into the project which avoid or reduce the potentially significant adverse effects to a less than significant level”

For the potentially significant related to the possible discovery/damage of unrecorded subsurface cultural resources, the finding was made that “specific considerations, such as economic, social or technical, make infeasible the mitigation measures or project alternatives discussed in the EIS on the project”

PLAN AREA STATEMENT 019, MARTIS PEAK

• Existing Kings Beach Substation is a legally existing non-conforming use

• Upgrade constitutes expansion, intensification, or modification of a nonconforming use

• PAS Amendment adds Public Utility Center as a permissible use in Martis 019

PAS 019, MARTIS PEAK AMENDMENT

Creation of Special Area #1

Addition of “public utility centers” to the list of permissible uses.

BROCKWAY ABANDONMENT • Upgrade of Kings

Beach Substation allows removal of Brockway Substation

• Distribution lines would be moved from currently above ground to underground

REQUESTED GOVERNING BOARD ACTION

Certification of the Final EIS

Adoption of the proposed amendments to Plan Area Statement 019-Martis Peak

Approval of Phase 1 & 2 of the proposed project

625/650 Electrical Line Upgrade Project

Submitted by California Pacific

Electric Company (CalPeco) “Liberty Utilities”

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• Purchased NV Energy’s California service territory effective Jan. 1, 2011

• Approx. 1,476 square miles, 7 counties and 49,000 customers

• Legal name is Liberty Utilities (CalPeco Electric) LLC

• Two office locations: South Lake Tahoe

and Tahoe Vista • Regulated by the Calif. Public Utilities

Commission (CPUC)

Service Territory Overview

Purpose: Improves reliability • allows greater load transfer and switching ability

of loop system in case of single-contingency outage (N-1)

Scope: Upgrades existing lines and associated substations through a phased construction schedule

• 60 kilovolt (kV) to 120 kV • entire transmission loop to operate at 120 kV

(some rerouting for access)

Environment: Minimizes Impacts • FINAL EIS/EIS/EIR September 2014 • Collaborative effort

– TRPA, USFS, CPUC – Counties, Cities, other stakeholders – Extensive public review process

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625/650 Electrical Line Upgrade Project

625/650 Electrical Line Upgrade Project Phase 1 – 650 Line Rebuild from Truckee to Kings Beach

Phase 2 – Upgrades at North Truckee, Northstar and Kings Beach Substations to Allow a portion of the system to operate at 120kV (All work inside existing substations; no work on power lines)

Phase 3 – 625 Line Rebuild from Tahoe City to Kings Beach to allow full system operation at 120kV. (Also completes Substation work)

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Project Goals (EIS/EIS/EIR)

1. Provide normal capacity for current and projected loads. 2. Provide reliable capacity to assure adequate service to all

customers during single-contingency outages. 3. Reduce dependence on the Kings Beach Diesel Generation

Station. 4. Reduce the risk of fire hazards and outage durations

associated with wooden poles and encroaching vegetation. 5. Provide more reliable access to the 625 Line for operation

and maintenance activities.

FINAL EIS/EIS/EIR dated September 2014 (DRAFT dated November 2013)

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CALPECO 625 AND 650 ELECTRICAL LINE UPGRADE PROJECT

PRESENTATION TO THE TRPA GOVERNING BOARD APRIL23, 2015

PAS 019 AMENDMENT

ALTERNATIVES

Alternative 1: PEA Alternative 2: Modified Alternative 3: Road Focused Alternative 4: Proposed Alternative 5: No Action Alternative

Alternative 1: PEA Alternative • Developed in the

Proponent’s Environmental Assessment

• Greatest potential for

ground disturbance

Alternative 2: Modified Alternative

• Similar to Alternative 1, PEA Alternative, but some modified segments

• Double circuit reduces

visibility, but increases potential disturbance in the ROW

Alternative 3: Road Focused Alternative • Re-routes 625 Line to more

closely follow the “Fiberboard Freeway”

• Places more of the 650 Line along SR 267

• Minimizes ground disturbance, but increases visibility

• Greatest potential to conflict with the Truckee-Tahoe Airport

Alternative 4: Proposed Alternative • Elements of Road

Focused and PEA Alternatives

• Places facilities in proximity to existing roadways while maximizing the use of existing 650 Line

ALTERNATIVES CONSIDERED BUT REJECTED 12 additional alternatives were screened

Addressed issues such as: implementing only part of the project,

improving other parts of the system,

submarine cable,

using more locally generated power from diesel generators,

undergrounding,

managing demand.

ALL ALTERNATIVES CONSIDERED BUT REJECTED (CONT.)

Vetted alternatives based on three criteria: Would the alternative meet project purpose/need/objectives Is the alternative feasible (i.e., legal, regulatory, technical) Does the alternative avoid or substantially lessen any significant effects of

the proposed project

For example--Undergrounding Does not consistently meet objective of increased access

Winter snow coverage over vaults, pump groundwater from vaults before work

Feasibility can be influenced by cost Would not reduce overall environmental effects

Excavation—potential effects on cultural resources, air, noise, traffic Must keep vegetation removed over line Construction beside existing ROW to keep existing line operating during construction

IN-BASIN PROJECT EFFECTS

FORESTRY IMPACT DATA Data in various tables on pages 4.3-12 through 4.3-18 Forest removal correlated closely with overall ground disturbance. Highest for Alt. 1, slightly less for Alt. 2, least for Alts 3 and 4. Generally follows this trend for acres of forest land conversion, number

of trees removed, volume of timber removed, and SEZ effects For example, trees greater than 1” diameter Alt. 1 – 58,000 trees removed; 25,600 net loss (harvest of roughly 350

houses of merchantable timber) Alt. 2 – 56,800 trees removed, 22,450 net loss (harvest of roughly 345

houses of merchantable timber) Alt. 3 – 47,450 trees removed, 23,300 net loss (harvest of roughly 285

houses of merchantable timber) Alt. 4 – 47,100 trees removed, 23,050 net loss (harvest of roughly 284

houses of merchantable timber)

UNDERGROUNDING Does not consistently meet objective of increased access Winter snow coverage over vaults, pump groundwater from

vaults before work

Feasibility can be influenced by cost

Would not reduce overall environmental effects Excavation—potential effects on cultural resources, air, noise,

traffic

Must keep vegetation removed over line

Construction beside existing ROW to keep existing line operating during construction