THREATENED, ENDANGERED, AND SENSITIVE SPECIES 2011 ANNUAL REPORT

LICENSE ARTICLE 410 THREATENED, ENDANGERED, AND SENSITIVE SPECIES 2011 ANNUAL REPORT REPORTING PERIOD JANUARY 1 DECEMBER 31, 2011 BAKER RIVER HYDROELECTRIC PROJECT FERC. 2150 April 2012 BAK LA 410 Annual Report 2011.Doc PUGET SOUND ENERGY Baker River Hydroelectric Project Doc ID: BAK.2012.0406.0579.PSE.FERC 6 April 2012

CONTENTS CONTENTS 1.0 Executive Summary... 1 2.0 Introduction... 1 3.0 Activity Report... 2 3.1 Principal Management Activities... 2 3.2 Monitoring Results, Observations, and Analysis... 4 3.3 Acquisition Activities... 4 3.4 Special Consultation... 4 3.5 Design and Planning Activities... 5 3.6 Documents Submitted... 6 3.7 Modifications to or Deviations from Implementation Plan... 6 3.8 Activities Planned for the Upcoming Reporting Period... 6 4.0 Issues and Resolution... 6 5.0 Proposed Changes to the Plan... 6 6.0 Accounting... 6 6.1 Funding and Expenditures Prescribed by LA 410... 6 6.2 Additional PSE Expenditures for LA 410... 6 6.3 Adjustments... 6 7.0 Supporting Documents... 7 7.1 Lower Baker FSC Construction Site Tree Removal... 7 8.0 References... 9 9.0 Agency Comments... 9 9.1 Distribution List... 9 9.2 Cover Message... 10 9.3 Summary of Reviewer Replies... 10 List of Tables Table 1. List of trees to be removed for FSC construction and installation... 7 Table 2. Recipients of the draft Threatened, Endangered, and Sensitive Species 2011 Annual Report... 9 List of Figures Figure 1. Bull trout informational sign final proof... 5 Figure 2. Lower Baker FSC with trees (and utility pole) proposed for removal... 8 Figure 3. E-mail from PSE to the USFWS regarding tree removal... 9 Figure 4. E-mail reply from the USFWS regarding tree removal.... 9 Figure 5. E-mail message from PSE accompanying the draft Threatened, Endangered, and Sensitive Species 2011 Annual Report... 10 Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page ii

1.0 Executive Summary This Threatened, Endangered, and Sensitive Species Annual Report reviews the actions taken in 2011 to implement the Threatened, Endangered, and Sensitive Species Plan for the Baker River Hydroelectric Project License, Federal Energy Regulatory Commission (FERC). 2150. This report has been prepared in consistence with license article 410 (LA 410), Threatened, Endangered, and Sensitive Species Plan, of the Order on Offer of Settlement, Issuing New License and Dismissing Amendment Application as Moot dated October 17, 2008. This report was prepared by Puget Sound Energy and reviewed by the US Fish and Wildlife Service (USFWS) and National Marine Fisheries Service (NMFS). This report summarizes the activities conducted in 2011 in accordance with LA 410, Threatened, Endangered, and Sensitive Species, which included: Bald eagle nest surveys and communal night roost surveys. Coordination with project and construction activities to minimize or avoid removal of trees at s whenever possible. Coordination with the Recreation Resource Group to avoid or minimize impacts to bald eagles, bull trout, marbled murrelets, spotted owls, and their habitats when planning and implementing recreation-related license settlement agreement articles. Coordination with the Aquatic Resources Group regarding bull trout management in the project area and implementation of settlement agreement article 104 (SA 104), Lake Connectivity. Coordination with the USFWS and NMFS. Development and installation of informational signs regarding bull trout angling regulations, appropriate handling methods, and conservation efforts in the Baker River basin. Marbled murrelet and northern spotted owl habitat evaluation in and around projectrelated construction areas. Installation of bear-safe trash receptacles at various locations in the project area. 2.0 Introduction This Threatened, Endangered, and Sensitive Species Annual Report has been prepared for the Baker River Hydroelectric Project (the Project), pursuant to the Order on Offer of Settlement Issuing New License and Dismissing Amendment Application as Moot dated October 17, 2008 (the license). License article 410 (LA 410), Threatened, Endangered, and Sensitive Species, sets forth the applicable requirements for the Threatened, Endangered, and Sensitive Species Plan (the plan), which in turn sets forth the requirements of this annual report. This report has been developed in consultation with the US Fish and Wildlife Service (USFWS). Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 1

Activity Report The goal of the Threatened, Endangered, and Sensitive Species plan is to address the impacts of project-related activities to threatened, endangered, and sensitive species in the Project area. The objectives of this plan, in accordance with requirements specific to federal and non-federal lands, are to: Avoid the removal of overstory trees in suitable bald eagle nesting and roosting habitat during work at recreation sites. Time work within 0.5 mile of active bald eagle nests to occur during the nonbreeding season. Avoid placing recreational trails near or across streams used by bull trout. Maintain or restore vegetative buffers to avoid erosion and sedimentation into lakes and streams used by bull trout. Integrate stormwater management into designs for campgrounds and other recreational facilities. Provide informational material on angling regulations and restrictions for bull trout, appropriate handling of bull trout, and conservation efforts. Avoid disturbance to nesting marbled murrelets and northern spotted owls. Avoid removing suitable marbled murrelet and northern spotted owl habitat. Retain the largest available trees, snags, and downed woody debris whenever possible during vegetation management and thinning of timber. Summarize activities implementing the terms and conditions of the USFWS and NMFS biological opinions (BiOps). This annual report summarizes the activities conducted under LA 410 in 2011, including management activities, monitoring, design and planning, acquisition-related activities, consultation, documents prepared, modifications to or deviations from planned activities, issues and resolution, accounting, and purposed changes to the FERCapproved plan. 3.0 Activity Report 3.1 Principal Management Activities 3.1.1 Bald Eagles Bald eagle management activities in 2011 were consistent with SA 512, Bald Eagle Night Roost Surveys, and SA 513, Bald Eagle Management Plan. These activities included: Development and TRIG review of the SA 512 and SA 513 annual reports for 2010. Twice-monthly bald eagle night roost surveys between January and February 2011. Surveys were conducted in coordination with the Washington Department of Fish and Wildlife (WDFW) and the TRIG. Detailed results of these surveys are documented in the SA 512 annual report. An aerial survey of bald eagle nest sites in the Project area to verify nesting activity. Incidental bald eagle observations recorded during other survey efforts. Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 2

Activity Report Bald eagle habitat evaluation at s, including the Lower Baker Unit 4 powerhouse lay-down area and the Lower Baker FSC. While these construction areas were not identified as suitable nesting or roosting habitat, they contained several trees that could be used by eagles. Removal of these trees was avoided, unless they were considered hazard trees. Coordination with project managers to prevent construction activities from affecting bald eagle habitat or disturbing eagles during the wintering season. Coordination with the Project regarding hazard tree removal and vegetation management. 3.1.2 Bull Trout Bull trout management activities included: Development and installation of informational signage regarding regulations for bull trout angling, appropriate handling methods, and conservation efforts in the Baker basin, in coordination with the WDFW, the USFWS, the NMFS, and the U.S. Department of Agriculture Forest Service (USDA-FS). Consultation with the Aquatic Resources Group (ARG) regarding planning and reporting activities relative to SA 104. Coordination with the Recreation Resources Group (RRG) to avoid any adverse affects on bull trout due to future recreation-related construction or other Project activities. Consultation with the USFWS and WDFW at the Fish Passage Technical Working Group (FPTWG). Snorkel surveys to monitor bull trout presence in Sulphur Creek and the upper Baker River. Active collection, PIT-tagging, tissue sampling, and transportation of bull trout through angling efforts in Lake Shannon. Implementation of native char management protocol. Protocols were followed to provide bull trout upstream and downstream passage based on genetic origin. Bull trout tissue samples collected from fish collection facilities and by angling. PSE submitted bull trout to the WDFW for genetic analysis in July and vember 2011. Development and implementation of the SA 104 Fish Connectivity Implementation Plan (FCIP) to provide connectivity for native char in the Baker River basin. Detailed reporting of bull trout management activities is included in the annual reports for SA 103, Upstream Fish Passage Implementation Plan ; SA 104, Connectivity Between Lake Shannon and Baker Lake ; and SA 105, Downstream Fish Passage Implementation Plan. 3.1.3 Marbled Murrelets PSE evaluated Project-related s for marbled murrelet habitat. suitable habitat was identified near Project s. Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 3

Activity Report 3.1.4 rthern Spotted Owls PSE evaluated Project-related s for northern spotted owl habitat. suitable habitat was identified near Project s. 3.1.5 Other Species PSE installed bear-safe trash receptacles at the Glover Mountain trailhead, the Kulshan boat launch and picnic area, and the Lower Baker visitor s center and picnic area. 3.2 Monitoring Results, Observations, and Analysis 3.2.1 Bald Eagles The SA 513 annual report includes aerial nest survey results along with maps of bald eagle nests in the Project area. All five known bald eagle nests in the Project area were active in 2011, and young were confirmed at three of the nest sites. The SA 512 annual report includes an overview of bald eagle night roost survey results, along with compiled data for each survey and a map of bald eagle observations for each survey. bald eagle night roosts were confirmed during the reporting period, although two areas of interest were identified. These two areas are significant because eagle activity was regularly observed there around official sunset time; however, the eagles typically left these areas by the conclusion of the surveys half an hour after sunset time. More detailed results are found in the SA 512 bald eagle night roost survey annual report for 2010 2011. 3.2.2 Bull Trout The annual reports for SA 103, SA 104, and SA 105 include detailed reporting of bull trout monitoring activities. 3.2.3 Marbled Murrelets marbled murrelet monitoring activities occurred in the Project area during the reporting period. 3.2.4 rthern Spotted owls northern spotted owl monitoring activities occurred in the Project area during the reporting period. 3.3 Acquisition Activities acquisition-related activities occurred under LA 410 during the reporting period. 3.4 Special Consultation special consultation related to LA 410 occurred during the reporting period. Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 4

Activity Report 3.5 Design and Planning Activities 3.5.1 Bald Eagles design or planning activities related to bald eagles occurred during the reporting period. 3.5.2 Bull Trout PSE developed informational signs regarding bull trout angling regulations, appropriate handling methods, and conservation efforts in the Baker River basin in coordination with the USFWS, the WDFW, the USDA-FS, and the Baker resource groups. The signs were installed on bulletin boards at boat launches, the Lower Baker visitor s center, and the USDA-FS visitor s center in Sedro-Woolley. Figure 1. Bull trout informational sign final proof. 3.5.3 Marbled Murrelets design or planning activities related to marbled murrelets occurred during the reporting period. 3.5.4 rthern Spotted Owls design or planning activities related to northern spotted owls occurred during the reporting period. Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 5

Issues and Resolution 3.6 Documents Submitted documents related to LA 410 were submitted during the reporting period. 3.7 Modifications to or Deviations from Implementation Plan All LA 410 activities scheduled for the reporting period were performed as planned. 3.8 Activities Planned for the Upcoming Reporting Period Activities planned for 2012 include: Continued coordination with project managers, Project operations, the USDA-FS, the WDFW, and the resource groups. Continued consultation with the USFWS. Bald eagle monitoring activities consistent with SA 513, Bald Eagle Management Plan. Continued monitoring of bull trout in the Project reservoirs under SA 104, Lake Connectivity. Development of additional impact minimization measures for bald eagles, bull trout, marbled murrelets, northern spotted owls, and other species as needed. 4.0 Issues and Resolution LA 410 implementation issues were identified during the reporting period. 5.0 Proposed Changes to the Plan There were no proposed changes to the Threatened, Endangered, and Sensitive Species Plan during the reporting period. 6.0 Accounting Puget Sound Energy, in consistence with other annual reports for the Baker River Project license settlement agreement articles, provides an annual summary of expenditures made during the preceding year under license article 410. This section provides an accounting of all expenditures made between January 1, 2011 and December 31, 2011. 6.1 Funding and Expenditures Prescribed by LA 410 funding was prescribed for LA 410 implementation during the reporting period. 6.2 Additional PSE Expenditures for LA 410 PSE spent $5,907 for LA 410 implementation during the reporting period. The total expenditure of all funds during the reporting period was $5,907. 6.3 Adjustments There were no adjustments to the funding for LA 410 during the reporting period. Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 6

Supporting Documents 7.0 Supporting Documents This section includes a table of the trees to be removed from construction-related sites in the Project area in 2011 to implement the license and the related USFWS correspondence. ne of the construction areas were identified as bald eagle, marbled murrelet, or northern spotted owl habitat, and there are no known active bald eagle nests or night roosts within a half-mile of the construction areas. Removal of trees was avoided whenever possible, unless they posed a safety or operational hazard. The USFWS was notified of these activities prior to the removal of the trees, and confirmed that no bald eagle, marbled murrelet, or northern spotted owl habitat would be affected by these activities. 7.1 Lower Baker FSC Construction Site Tree Removal Table 1. List of trees to be removed for FSC construction and installation. Tree Species Size (DBH) Site Reason for Removal Doug fir 16 Doug fir 12.5 Doug fir 12 Cedar 27.4 Alder 11.6 Maple (4 trunks) 5.8-16 Maple (7 live trunks, 2 dead) Cottonwood 42 Cottonwood 48 Maple (3 trunks) 20 /23.5 /23.8 Cedar 32.2 Cedar 7 Cedar 17.2 Cedar 5.5 LB FSC LB FSC LB FSC LB FSC Access to site, clearance for construction of the FSC, and access to boat launch for inwater FSC construction and installation. Access to site, clearance for construction of the FSC, and access to boat launch for inwater FSC construction and installation. Access to site, clearance for construction of the FSC, and access to boat launch for inwater FSC construction and installation. Access to site, clearance for construction of the FSC, and access to boat launch for inwater FSC construction and installation. BE/MAMU/ NSO Habitat tree? Possible perch tree Possible perch tree Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 7

Supporting Documents Tree Species Size (DBH) Site Reason for Removal Cedar 9.8 Cedar 14.3 BE/MAMU/ NSO Habitat tree? Figure 2. Lower Baker FSC with trees (and utility pole) proposed for removal. Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 8

References "Edwards, Haley" <Haley.Edwards@pse.com> To <louellyn_jones@fws.gov> 11/29/2011 01:21 PM cc <lindsy_wright@fws.gov>, "Hogan, Jim" <jim.hogan@pse.com> Subject RE: Baker River - Tree removal at lower Baker Lou Ellyn, Just to clarify as we discussed, there are no anticipated effects to bald eagles, marbled murrelets, northern spotted owls, or their habitats associated with the removal of the listed trees at the lower baker FSC pier/road. Thanks, Haley Figure 3. E-mail from PSE to the USFWS regarding tree removal. From: LouEllyn_Jones@fws.gov [mailto:louellyn_jones@fws.gov] Sent: Wednesday, vember 30, 2011 8:44 AM To: Edwards, Haley Subject: RE: Baker River - Tree removal at lower Baker thank you. "People from a planet without flowers would think we must be mad with joy the whole time to have such things about us." - Iris Murdoch Lou Ellyn Jones, Fish and Wildlife Biologist Division of Conservation and Hydropower Planning Western Washington Fish and Wildlife Office U.S. Fish and Wildlife Service 510 Desmond Dr. Lacey, WA 98503 telephone: 360-753-5822 fax: 360-753-9518 Louellyn_jones@fws.gov 8.0 References This report cites no additional references. 9.0 Agency Comments Figure 4. E-mail reply from the USFWS regarding tree removal. 9.1 Distribution List Table 2. Recipients of the draft Threatened, Endangered, and Sensitive Species 2011 Annual Report. Name Organization E-mail address Lou Ellyn Jones US Fish and Wildlife Service louellyn_jones@fws.gov Steve Fransen National Marine Fisheries Service Steven.m.fransen@noaa.gov Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 9

Agency Comments 9.2 Cover Message From: Edwards, Haley Sent: Monday, February 06, 2012 3:09 PM To: 'Lou Ellyn Jones (E-mail)'; 'steven.m.fransen@noaa.gov' Cc: Sibley, Hillary D; Feldmann, Cary; Fuchs, Tony; Heller, Scott W; Walters, Melvin L -Mel Subject: Baker River LA 410 Threatened and Endangered Species Annual Report for 2011 PSE is forwarding the 2011 draft annual report for License Article 410, "Threatened, Endangered, and Sensitive Species," to USFWS and NMFS for the 30-day review period, seeking comments and suggestions. We are asking that the comments be sent to me via email by March 9, 2012. Thanks, Haley Haley Edwards Puget Sound Energy Natural Resource Scientist 425.462.3305 206.940.8363 (cell) Figure XYZ. E-mail message from PSE accompanying the draft Threatened, Endangered, and Sensitive Species 2011 Annual Report. 9.3 Summary of Reviewer Replies The reviewers of this document sent no replies to PSE. Doc ID: BAK.2012.0406.0579.PSE.FERC Baker River Hydroelectric Project Page 10