April 2006 Middle Fork Project Relicensing Process April 25,

1 April 2006 Environmental Review Process Under FERC Jurisdiction Environmental Review Process Under FERC Jurisdiction Requires Specific Consultation Activities Requires Specific Consultation Activities Evaluates Effects of On-Going Operations and Maintenance of the Project Evaluates Effects of On-Going Operations and Maintenance of the Project Establishes New License Term and Conditions Establishes New License Term and Conditions Relicensing Process

2 April 2006 Relicensing Process - History Integrated Licensing Process (ILP) Alternative Licensing Process (ALP) Hybrid/Enhanced Traditional Process Traditional Licensing Process (TLP)

3 April 2006 USFS 4(e) Conditions License Application SWRCB 401 Certification USFWS Biological Opinion FERC Section 106 Agreement Document FERC EA/EIS USFWS/ CDFG 10(j) New License Conditions Proposed PM&E Measures Relicensing Related Processes

4 April 2006 Developed to Streamline the Licensing Process by Providing a Predictable, Efficient and Timely Process Developed to Streamline the Licensing Process by Providing a Predictable, Efficient and Timely Process Default Process as of July 23, 2005 Default Process as of July 23, 2005 Integrated Licensing Process (ILP)

5 April 2006 Process Efficiencies Achieved by: Early Issue Identification and Resolution of Studies (Minimizes Post-Filing Studies) Early Issue Identification and Resolution of Studies (Minimizes Post-Filing Studies) Integration of Agency and Tribal Permitting Process Integration of Agency and Tribal Permitting Process Established Timeframe to Complete Process Steps for all Parties Established Timeframe to Complete Process Steps for all Parties Integrated Licensing Process (ILP)

6 April 2006 Key Activities: Filing of Notice of Intent (NOI) and Pre-Application Document (PAD) Filing of Notice of Intent (NOI) and Pre-Application Document (PAD) Development of Study Plans Development of Study Plans Implementation of Study Plans Implementation of Study Plans Development of Preliminary Licensing Proposal (PLP) Development of Preliminary Licensing Proposal (PLP) Submittal of Final Application Submittal of Final Application Integrated Licensing Process Pre-Filing Activities

7 April 2006 Key Activities: Notice of FERC Ready for Environmental Analysis (REA) Notice of FERC Ready for Environmental Analysis (REA) Submittal of Recommendations and Preliminary Terms and Conditions Submittal of Recommendations and Preliminary Terms and Conditions Distribution of FERC Draft NEPA Document Distribution of FERC Draft NEPA Document Submittal of Modified Term and Conditions Submittal of Modified Term and Conditions Distribution of FERC Final NEPA Document Distribution of FERC Final NEPA Document Issuance of New License Order Issuance of New License Order Integrated Licensing Process Post-Filing Activities

8 April 2006 Early Steps Pre-Application Document (PAD) Development Pre-Application Document (PAD) Development Study Plan Development Study Plan Development FERC Scoping FERC Scoping Integrated Licensing Process Pre-Filing Activities

9 April 2006 Project Description Project Description River Basin Description River Basin Description Description of Existing Environment and any Known Resource Impacts Description of Existing Environment and any Known Resource Impacts Preliminary List of Issues and Proposed Studies Preliminary List of Issues and Proposed Studies List of Relevant Comprehensive Plans List of Relevant Comprehensive Plans Process Plan and Schedule Process Plan and Schedule Summary of Contacts Summary of Contacts Integrated Licensing Process Content of PAD

10 April 2006 Cornerstone of the ILP Cornerstone of the ILP  Provides Basis for Identifying Issues, Data Gaps and Study Needs  Forms Foundation of Future Documents  Outlines Schedule for Developing the License Application Integrated Licensing Process Purpose of PAD Integrated Licensing Process Purpose of PAD

11 April 2006 Integrated Licensing Process Early Stakeholder Consultation

12 April 2006 Critical Element of ILP Critical Element of ILP Important to Ensure Timely and Informed Decisions Important to Ensure Timely and Informed Decisions Challenging and Time Consuming Challenging and Time Consuming FERC-Defined Study Criteria FERC-Defined Study Criteria Based on Information Provided in the PAD and During Scoping Based on Information Provided in the PAD and During Scoping Integrated Licensing Process Study Plan Development

13 April 2006 Applicant Includes List of Proposed Studies in PAD Participants File Study Request in Response to FERC’s Scoping Notice Applicant Files Proposed Study Plan Parties Meet to Resolve any Study Disputes Applicant Files Revised Study Plan OEP Director Issues Study Plan Determination Integrated Licensing Process Study Plan Development Process Formal Dispute Process

14 April 2006 Early Collaboration on Study Plan Development Early Collaboration on Study Plan Development  Approved Study Plan in PAD (Sept 2007) Early Implementation of Approved Studies Early Implementation of Approved Studies  Field Studies Initiated (2007)  Majority of Studies Completed ( ) Integrated Licensing Process PCWA’s Proposed Approach

15 April 2006 Early Collaboration on Select License Conditions Early Collaboration on Select License Conditions  Initiate Once Sufficient Information is Available  Tentative Agreement Integrated Licensing Process PCWA’s Proposed Approach

16 April 2006 Sufficient Time to Evaluate Project Impact and Collaborate on New License Conditions Sufficient Time to Evaluate Project Impact and Collaborate on New License Conditions  Initiate Discussion (Early 2009)  Incorporate Tentative Agreements into Preliminary Licensing Proposal (Sept 2010)  Resolution of New License Condition (Feb 2011) Integrated Licensing Process PCWA’s Proposed Approach

17 April 2006 Integrated Licensing Process PCWA’s Proposed Approach