Sea Breeze or its successors will be responsible for operating and maintaining all aspects of the project except for the Port Angeles Substation equipment, which will be operated and maintained by BPA. Alternatives Considered

DOE considered the Proposed Action with two short AC cable routing options (A and B), and the No Action Alternative.

Cable routing Options A and B for entering the BPA substation property would have differed little in the environmental impacts created. Option A will be about 250 feet (76.2 m) longer than Option B, but the amount of tree clearing, soil disturbance, and visual impacts will be similar to what would have occurred under Option B. Option A will have less impact on BPA property, allowing potential future use of the area that Option B would have encumbered.

Under the No Action Alternative, BPA would have denied Sea Breeze's request
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to connect to the Federal transmission system, and OE would have denied issuance of the Presidential permit. Because the requested interconnection is essential to the viability of Sea Breeze's proposed project, it is likely that Sea Breeze would not build its transmission cable project under the No Action Alternative. Since the cable would not be built, implementation of the No Action Alterative would not have caused impacts to the environment (water resources, vegetation, marine habitat and wildlife, land uses, noise, visual resources, etc.) that the construction and operation of the transmission cable will have. The No Action Alternative thus is the environmentally preferable alternative.

Public Comment

Early in the development of the EIS, DOE solicited input from the public (Federal, state and local agencies, Indian tribes with interest in the area, individuals along the project route, and interest groups) to help determine what issues should be studied in the EIS. DOE requested comments by publishing a Notice of Intent to prepare an EIS in the Federal Register (70 FR 23855) on May 5, 2005, sending a letter to about 415 people, conducting a public openhouse style scoping meeting in Port Angeles, Washington, and establishing a project Web site with information about the project and the EIS process. Thirtytwo people came to the public openhouse scoping meeting and 14 individuals sent written comments.

The Draft EIS was made available for a 45day period of public review and comment via mailings and the Web site; a Notice of Availability of the Draft EIS was published by the U.S. Environmental Protection Agency (EPA) in the Federal Register (72 FR 10749) on March 9, 2007. Notices that the Draft EIS was available for review were sent to about 750 potentially interested parties of record; about 130 Draft EISs were distributed; and DOE held a public open house and hearing in Port Angeles on April 10, 2007. Thirteen people came to the Draft EIS public meeting/hearing and 14 individuals sent written comments.

The Final EIS addressed comments received on the Draft EIS. DOE made the Final EIS available to the public, and sent it to interested parties of record; a Notice of Availability of the Final EIS was published by the EPA in the Federal Register (72 FR 58081) on October 12, 2007.

DOE received three written comments on the Final EIS. One letter, from the Skokomish Indian Tribe, informed DOE that the Tribe is unaware of the presence of any sites of cultural or religious significance to the Skokomish Tribe within the proposed project area. The tribe requested that DOE contact the Lower Elwha Tribe. DOE has been in contact with the Lower Elwha Tribe throughout this project's environmental process. The Lower Elwha Tribe commented on the Draft EIS; those comments, which primarily requested additional protection for tribal resources and cultural resources, were addressed in the Final EIS. Under the Mitigation Action Plan that is incorporated into this Record of Decision, the Tribe will continue to be involved in the project for geoduck clam mitigation and cultural resource monitoring.

The EPA submitted written comments on the Final EIS that included acknowledgment of BPA's responses to EPA's comments on the Draft EIS. EPA also recommended that accountability measures be incorporated into the Clean Water Act 401 certification and 404 permit. The Washington State Department of Ecology and the U.S. Army Corps of Engineers are reviewing Sea Breeze's application under these sections of the Clean Water Act and will impose appropriate measures to ensure
implementation. EPA also recommended that the ROD include information to assure that environmental measures would be adjusted to meet Washington State water quality standards. In response, DOE is requiring Sea Breeze to follow the city, state, and Federal requirements regarding water quality standards, as described in Chapter 4 of the EIS, reiterated in the required mitigation measures identified in the EIS, and included in the Mitigation Action Plan that is incorporated into this Record of Decision.

EPA also restated concerns regarding the public need for the project. In response, DOE notes that this project is proposed by a private entity and, therefore, public need is outside DOE's purview. In deciding whether BPA will allow an interconnection and whether OE will grant a Presidential permit for a project proposed by a private entity, neither BPA nor OE has a criterion that requires a demonstration of need for the project. As addressed in the EIS, BPA's need for action is to respond to Sea Breeze's request for interconnection, and OE's need for action is to respond to Sea Breeze's application for a Presidential permit. In addition, the Purpose and Need section of the EIS contains a statement of Sea Breeze's reasons for developing the project and provides links to various Web sites that present Sea Breeze's identified needs.

Written comments were received also from the Olympic Environmental Council Coalition working on the Rayonier Hazardous Waste Cleanup Project, which expressed concern that the proposed cable route would go through a hazardous waste site undergoing cleanup, through potential shoreline and salt marsh restoration areas, and in a recommended protected area for orca whales. As described in the EIS, the former Rayonier pulp mill site and shoreline (which would include any potential salt marsh restoration areas) will be avoided because the cable will be routed through a HDD hole in bedrock well below these areas. The EIS addresses contaminated sediment concerns, and identifies required mitigation measures, including specifically the requirement for Sea Breeze to implement any actions identified by the Washington State Department of Ecology for sediment control. The EIS also analyzes potential impacts to whales and identifies mitigation measures required to lessen possible impacts. DOE considers these mitigation measures, as incorporated into this ROD and enforceable upon Sea Breeze, to be adequate to address the expressed concerns.

BPA's Rationale for Decision

Under BPA's adopted Open Access Transmission Tariff, BPA offers new interconnections to the transmission system to all eligible customers, consistent with all BPA requirements and subject to environmental review. BPA has completed this environmental review and has considered and understands the environmental implications of its Proposed Action and alternatives. BPA analyzed the environmental impacts of the Proposed Action, the short routing options for the AC cable entering BPA property, and the No Action Alternative, and considered public comments received on the Draft EIS, as documented in the Final EIS, and comments on the Final EIS. BPA also considered that implementation of the Proposed Action is more consistent with the interconnection provisions of BPA's open access tariff than implementation of the No Action Alternative. Accordingly, by deciding to take actions that allow for interconnection of Sea Breeze's project, BPA is acting consistently with its tariff.

In addition, BPA considered how well the various alternatives would meet the following purposes (i.e., objectives) identified for this project in the EIS:

BPA believes that implementation of the Proposed Action will meet these objectives.

System Reliability

The Proposed Action will maintain transmission system reliability by ensuring that the interconnection design will meet applicable reliability criteria and standards. Also, because Sea Breeze proposed that its project be connected to BPA's transmission system without improvements to increase capacity of the system, any transmission service provided to Sea Breeze across the transmission system will be limited in order to maintain reliability. These restrictions will include limiting power flow to or from the new interconnection through the BPA transmission system on the Olympic Peninsula at certain times of the day and year. If BPA receives transmission service requests from cable users that exceed system capacity, appropriate environmental review will be conducted and separate decisions made on the system improvements that will be necessary to accommodate those requests. Environmental and Social Responsibilities

The Proposed Action is consistent with BPA's environmental and social responsibilities. Sea Breeze worked to lessen potential environmental and social impacts through the design of the project and the development of mitigation measures. The use of the HDD hole to transition the cable from the Port Angeles Harbor to land will avoid impacts to the shoreline, including impacts to potential cultural resources in the vicinity, beach and shoreline habitats, and areas prone to erosion on the bluff. It will also help avoid contaminated sediments known in the area.

With the erosion control measures proposed by Sea Breeze and incorporated in this ROD, construction impacts to water and soil resources will be short term, and lowtomoderate. In addition, Sea Breeze will ensure that turbidity levels during seabed trenching and disturbance will remain within state standards of no greater than 5 nephelometric turbidity units. Sea Breeze is working with the Washington Department of Ecology and with the Department of Natural Resources to address disturbance of contaminants in the Harbor.

Vegetation impacts will be limited to about a milelong strip along the sea bottom, at the converter station site, and at the area affected by interconnection at BPA's Port Angeles Substation. NOAA's recommendation to decrease potential impacts to macroalgae habitat has been adopted by Sea Breeze by moving the proposed HDD hole exit point about 165 feet (50 m) seaward. The new location avoids an area of algae density cover of 50 percent to an area where the algae density cover lessens to 25 percent. The overall impacts to vegetation will be low, except at BPA's substation where impacts to vegetation will be lowto moderate. No wetlands were identified in the affected area, so wetlands will not be affected.

Impacts to marine habitat and wildlife will be lowtomoderate. Most impacts will occur during construction and will be temporary. Measures to protect marine species include implementing work windows to avoid species during migrations (Endangered Species Act [ESA]listed salmonids), monitoring for unexpectedly high concentrations of priority species (crabs, urchins, and geoduck clams), and using trained marine mammal observers during cablelaying operations to determine the presence of species (sea otters, porpoises, sea lions, seals, gray whales and ESAlisted humpback whales and Southern Resident killer whales) and if work should be slowed or stopped to protect those species. Habitat changes due to the warming of sediments along the seabed cable route will create localized moderate impacts, but only a small portion of the overall seabed will be affected.

Because the cable route will run along existing city streets, there will be notolow impacts to terrestrial wildlife and freshwater fish. In addition, at the converter station no highquality terrestrial habitat will be removed. Because the expansion of BPA's substation will be located next to a forested area, tree removal for the
interconnection work will have lowtomoderate effects on habitat. However, this type of forest habitat is abundant and common in the area.

Project construction will disturb residents and businesses in the vicinity and create shortterm high impacts. The cable will be located in city streets and, after construction, will not encumber existing uses and will not create any longterm land use impacts. Although the new converter station and the expansion of BPA's Port Angeles Substation yard for the interconnection will limit existing casual recreational uses of the existing open space and incrementally increase utilityrelated uses in the area, these additional electrical facilities will not be out of place next to the existing Port Angeles Substation.

Because the cable will be placed underground through city streets, the cable will not be visible and will not create the visual impacts typical of overhead transmission lines (towers, wires, cleared right ofway, and access roads). Although the converter station and the substation yard expansion will produce moderatetohigh visual impacts to residents in the immediate vicinity, Sea Breeze will soften the visual impacts of the converter station by installing decorative walls, fencing, and landscaping, and by seeking and incorporating input from local residents and planning officials about the exterior design of the converter station's building.

The route of the cable on the seabed has been designed to avoid potential cultural resources. To ensure resources potentially uncovered on land are protected, archaeological monitors will be on site during soil disturbance activities in areas where there is a moderatetohigh potential to encounter resources.

HDD hole construction will create shortterm high noise impacts to local residents near the construction site during the 23 days of continuous (night and day) drilling operations. Sea Breeze will use sound dampening techniques at the HDD construction site to reduce noise levels as close to the source as possible. The operation of the cable will not generate noise, and noise from the converter station will be mitigated with design features, equipment layout, and insulation. Health and safety impacts associated with potential shocks or fire will be avoided with mitigation measures. Magnetic field exposure concerns are limited to the short (1,250 feet [380 m]) AC cable; DC lines do not induce currents into surrounding objects. Field levels of the AC cable will be lessened, as appropriate, by the configuration of the conductors of the cable.

Socioeconomics impacts will be low, and Sea Breeze will ensure that the location of the marine cable is recorded on navigational charts. Sea Breeze will continue to work with the Washington State Department of Ecology to minimize the risk that the cable could be snagged or hit by ship anchors.

Cost Efficiencies

Costs associated with the cable and converter station will be the responsibility of Sea Breeze. Sea Breeze will also be responsible for costs associated with the interconnection work; however, if the interconnection work were to be considered a network
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upgrade, then those equipment and construction costs could be reimbursed to Sea Breeze.

OE's Rationale for Decision

In arriving at its decision, OE has considered the lack of adverse impacts to the reliability of the U.S. electric power supply system, the low potential for environmental impacts in the United States, the nature of potential impacts of the alternatives, and the lack of major issues of concern to the public.

OE has determined, and agrees with BPA, that the potential environmental impacts from the Proposed Action are expected to be small, as discussed above. OE also has determined that, based on BPA's interconnection standards and its restrictions on any requested transmission service to and from the proposed interconnection, the proposed project would not have an adverse impact on the reliability of the U.S. electric power supply system. Finally, the Departments of State and Defense have concurred in the issuance of a Presidential permit to Sea Breeze for the proposed project. OE did not select the No Action Alternative because the Proposed Action has been determined to be consistent with the public interest based on the consideration of environmental impacts, the impacts on electric reliability, and the favorable recommendations of the Departments of State and Defense.

For the foregoing reasons, OE has decided to issue Presidential Permit PP299 to authorize Sea Breeze to construct, operate, maintain, and connect the Port AngelesJuan de Fuca transmission line as defined by the Proposed Action in the EIS.

Mitigation

All the mitigation measures described in the Draft EIS, updated in the Final EIS, and further refined through consultations with the National Marine Fisheries Service of NOAA have been incorporated into the Mitigation Action Plan. A complete list of these measures is in the Mitigation Action Plan incorporated herein. Sea Breeze will be responsible for executing most of the mitigation measures, while BPA will be responsible for executing the mitigation measures associated with work at the Port Angeles Substation. Additional measures may be required through permitting processes with Federal, state, and local agencies.

Conclusions

The following decisions are based on the project description as detailed in the EIS and the Supplement Analysis, and implementation of the mitigation measures listed in the Mitigation Action Plan.

BPA has decided to interconnect the Port AngelesJuan de Fuca cable to the Federal Columbia River Transmission System. BPA will, therefore, offer Sea Breeze contract terms for interconnection. BPA also will expand the Port Angeles Substation yard and construct necessary interconnection facilities to allow for interconnection of the project as described in this ROD and the Port AngelesJuan de Fuca Transmission Project EIS.

OE will issue Presidential Permit PP299 to Sea Breeze, allowing the Port AngelesJuan de Fuca electric transmission facilities to be constructed, operated, maintained, and connected at the U.S. international border with Canada.

Issued in Washington, DC, on May 27, 2008.
Kevin M. Kolevar,
Assistant Secretary, Office of Electricity Delivery and Energy Reliability.

Issued in Portland, Oregon, on May 30, 2008.
Stephen J. Wright,
Administrator and Chief Executive Officer, Bonneville Power Administration.
Mitigation Action Plan for the Port AngelesJuan de Fuca Transmission Project
Time of Mitigation measure Responsible party implementation Water Resources

FOR FURTHER INFORMATION CONTACT For further information about the EIS, contact Ms. Stacy Mason, Environmental Coordinator, Bonneville Power AdministrationKEC, P.O. Box 3621, Portland, Oregon 972083621, by telephone at 5032305455, by facsimile at 5032305699, or by electronic mail at slmason@bpa.gov; alternatively, contact Dr. Jerry Pell as indicated in the ADDRESSES section above.

For general information on the DOE NEPA process, contact Carol Borgstrom, Director, Office of NEPA Policy and Compliance, GC20, U.S. Department of Energy, 1000 Independence Avenue, SW., Washington, DC 20585, by telephone at 2025864600, or leave a message at 800472 2756.