THREATENED, ENDANGERED, AND SENSITIVE SPECIES 2010 ANNUAL REPORT

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LICENSE ARTICLE 410 THREATENED, ENDANGERED, AND SENSITIVE SPECIES 2010 ANNUAL REPORT REPORTING PERIOD JANUARY 1 DECEMBER 31, 2010 BAKER RIVER HYDROELECTRIC PROJECT FERC No. 2150 Puget Sound Energy Bellevue, Washington April 2011 BAK LA 410 Annual Report 2010.Doc PUGET SOUND ENERGY Baker River Hydroelectric Project Doc ID: BAK.2011.0429.0401.PSE.FERC 29 April 2011

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 Analyses... 3 3.3 Acquisition Activities... 4 3.4 Special Consultation... 4 3.5 Design and Planning Activities... 5 3.6 Documents Submitted... 5 3.7 Modifications to or Deviations from Implementation Plan... 5 3.8 Activities Planned for the Upcoming Reporting Period... 5 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... 7 7.1 Osprey Nest Structures and Marbled Murrelet Habitat Assessment... 7 7.2 USFWS Correspondence... 24 8.0 References... 24 9.0 Review Comments... 25 9.1 Distribution List... 25 9.2 Cover Message... 25 9.3 Summary of Reviewer Replies... 25 9.4 Comment Correspondence... 26 List of Tables Table 1. Draft Threatened, Endangered, and Sensitive Species 2010 Annual Report reviewers.... 25 List of Figures Figure 1. Message accompanying the draft Threatened, Endangered, and Sensitive Species 2010 Annual Report.... 25 Figure 2. Reply from Lou Ellyn Jones, U.S. Fish and Wildlife Service... 26 Doc ID: BAK.2011.0429.0401.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 2010 to implement the Threatened, Endangered, and Sensitive Species Plan for the Baker River Hydroelectric Project License, Federal Energy Regulatory Commission (FERC) No. 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 U.S. Fish and Wildlife Service (USFWS) and National Marine Fisheries Service (NMFS). This report summarizes the activities conducted in 2010 in accordance with LA 410, Threatened, Endangered, and Sensitive Species, which included: Development, Terrestrial Resource Implementation Group (TRIG) review and revision of the LA 410 annual report for 2009. Bald eagle night roost surveys consistent with SA 512, Bald Eagle Night Roost Surveys. Detailed results will be found in the SA 512 annual report for 2010. No bald eagle night roosts were identified in the Baker basin during the reporting period. An aerial bald eagle nest survey consistent with SA 513, Bald Eagle Management Plan. One bald eagle nest was confirmed active during the 2010 aerial survey. Bull trout monitoring activities. Marbled murrelet habitat assessment at sites selected for modification for osprey nest trees. 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). 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. Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 1

Activity Report 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 down 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 2010, 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 2010 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 513 Bald Eagle Management Plan Annual Report for 2009. An aerial survey of known bald eagle nest sites in the project area to determine nest activity. One bald eagle nest was confirmed active based on observations during the survey. The survey was conducted later in the nesting season than in previous years. Other observations were made by boat of eagles in their nest territories during the nesting season. However, during the aerial survey only one nest had young nearby. Coordination with project managers to ensure that project-related construction activities have minimal effect on nesting bald eagles. Bald eagle night roost surveys on Lake Shannon twice monthly during January and February 2010, and twice monthly during November and December 2010. Surveys were conducted in coordination with the WDFW and the TRIG. No night roosts were identified during night roost surveys in 2010. (Per SA 512, the second round of bald eagle night roost surveys occurred between November 2010 and February 2011. Activities conducted after December 31, 2010 will be reported in the LA 410 Annual Report for 2011.) Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 2

Activity Report 3.1.2 Bull Trout Bull trout management activities in 2010 were consistent with the terms and conditions of the project license, incidental take terms and conditions of the USFWS BiOp for the Baker River Project, and federal fish and wildlife permit TE005113-6, and were conducted in consultation with the USFWS and WDFW. Continued activities will be directed by appendix F of the license, license ordering paragraph J, and the 2010 consultation with the USFWS. Implementation activities in 2010 included: Consultation with the Aquatic Resources Group (ARG) regarding planning and reporting activities relative to SA 104. Consultation with the USFWS and WDFW at Fish Passage Technical Working Group (FPTWG) meetings. Snorkel surveys to monitor bull trout presence in Sulphur Creek and the upper Baker River. Implementation of native char management protocol using the results of WDFW char tissue sample genetic analysis. Implementation of the Lake Shannon angling program to: o Facilitate collection of genetic data. o Determine appropriate protocol for bull trout transportation to Baker Lake or other locations based on genetic origin. 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 No management activities related to marbled murrelets occurred during the reporting period. 3.1.4 Northern Spotted Owls No management activities related to northern spotted owls occurred during the reporting period. 3.1.5 Other Species No management activities related to other threatened, endangered, or sensitive species occurred during the reporting period. 3.2 Monitoring Results, Observations, and Analyses 3.2.1 Bald Eagles The SA 513 annual report includes aerial nest survey results, along with maps of known bald eagle nests in the project area. One bald eagle nest was active in 2010. Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 3

Activity Report The SA 512 monitoring report includes an overview of the bald eagle night roost survey results, along with compiled data for each survey and a map of bald eagle observations for each survey. No bald eagle night roosts were identified during the reporting period. 3.2.2 Bull Trout The annual reports for SA 103, SA 104, and SA 105 include detailed reporting of bull trout monitoring activities. One project-related bull trout mortality occurred during the reporting period. A native char was caught by hook and line at the Upper Baker floating surface collector (FSC) net transition structure on May 31, 2010. After capture, the char was placed in flowing water in one of the FSC raceway sampling troughs. While awaiting processing, the char pushed under a sampling divider and moved into an adjacent sampling trough that was uncovered. The char jumped out undetected and was found afterwards. 3.2.3 Marbled Murrelets No monitoring activities related to marbled murrelets occurred in the project area during the reporting period. 3.2.4 Northern Spotted Owls No monitoring activities related to northern spotted owls occurred in the project area during the reporting period. 3.3 Acquisition Activities No acquisition-related activities occurred under LA 410 during the reporting period. 3.4 Special Consultation 3.4.1 Bald Eagles No special consultation related to bald eagles occurred during the reporting period. 3.4.2 Bull Trout No special consultation related to bull trout occurred during the reporting period. 3.4.3 Marbled Murrelets No special consultation related to marbled murrelets occurred during the reporting period. 3.4.4 Northern Spotted Owls No special consultation related to northern spotted owls occurred during the reporting period. Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 4

Activity Report 3.5 Design and Planning Activities 3.5.1 Bald Eagles According to the USFWS BiOp, project activities that occurred in 2010 posed minimal or no risk to bald eagles. Any potential effects on perching or feeding eagles were considered temporary or of short duration. Site visits were conducted upslope of the new powerhouse location before trees were modified to confirm that there were no new bald eagle nests in the area. 3.5.2 Bull Trout No design or planning activities related to bull trout occurred during the reporting period. Ongoing bull trout sampling and analysis activities are intended to determine whether additional fish passage facilities are needed to fulfill SA 104. If a need for lake connectivity between Lake Shannon and Baker Lake is identified during bull trout sampling analysis, then design and planning activities will occur in consultation with the ARG. 3.5.3 Marbled Murrelets During site selection for tree modification per SA 506, Osprey Nest Structures, a marbled murrelet habitat assessment was completed, reviewed by the TRIG, and approved by the USFWS. PSE biologists visited each site and documented its potential as marbled murrelet habitat. None of the selected sites met the criteria for marbled murrelet habitat. The habitat assessment and related correspondence are included in section 7 of this report. 3.5.4 Northern Spotted Owls No design or planning activities related to northern spotted owls occurred during the reporting period. No activities potentially affecting northern spotted owls or their habitat occurred during the reporting period. 3.6 Documents Submitted No documents related to LA 410 were submitted during the reporting period. 3.7 Modifications to or Deviations from Implementation Plan No modifications to or deviations from planned activities occurred during the reporting period. 3.8 Activities Planned for the Upcoming Reporting Period Activities planned for 2011 include: Continued coordination with project managers, project operations, the USDA-FS, the WDFW, and the resource groups. Continued consultation with the USFWS. Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 5

Issues and Resolution Bald eagle monitoring activities under SA 512, Bald Eagle Night Roost Surveys, and SA 513, Bald Eagle Management Plan. Continued monitoring of bull trout in the project reservoirs under SA 104, Lake Connectivity. Development of informational signs related to bull trout. Installation of additional bear-safe trash receptacles at PSE s Baker project facilities. 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 No 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 Baker River Project license settlement agreement articles, provides an annual summary of expenditures made during the preceding year under license article 410.. The section below provides an accounting of all expenditures made between January 1, 2010 and December 31, 2010. 6.1 Funding and Expenditures Prescribed by LA 410 No funding was prescribed for LA 410 implementation during the reporting period. 6.2 Additional PSE Expenditures for LA 410 PSE spent $8,044 for LA 410 implementation during the reporting period. The total expenditure of all funds during the reporting period was $8,044. 6.3 Adjustments There were no adjustments to the funding for LA 410 during the reporting period. Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 6

7.0 7.1 Osprey Nest Structures and Marbled Murrelet Habitat Assessment Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 7

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References 7.2 USFWS Correspondence From: LouEllyn_Jones@fws.gov [mailto:louellyn_jones@fws.gov] Sent: Wednesday, August 11, 2010 10:39 AM To: Edwards, Haley Cc: Walters, Melvin L -Mel Subject: Re: SA 506 Site Evaluation Haley, I agree with your assessment that modifying the trees described in the attached document would have little likelihood of impacting marbled murrelets or their habitat. I see no reason to postpone the work you need to do in fulfillment of SA 506. Please let me know if there is anything more that you need. Thanks. "Nature abhors a vacuum, and if I can only walk with sufficient carelessness I am sure to be filled." --Henry David Thoreau 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 does not cite additional references. Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 24

Review Comments 9.0 Review Comments 9.1 Distribution List Table 1. Draft Threatened, Endangered, and Sensitive Species 2010 Annual Report reviewers. Name Organization Address Lou Ellyn Jones US Fish and Wildlife Service louellyn_jones@fws.gov Steve Fransen National Marine Fisheries Service Steven.m.fransen@noaa.gov 9.2 Cover Message From: Edwards, Haley Sent: Thursday, March 03, 2011 3:38 PM To: 'Lou Ellyn Jones'; 'steven.m.fransen@noaa.gov' Cc: Feldmann, Cary; Lane, Kim W; Heller, Scott W; Fuchs, Tony; Verretto, Nick; Overman, Nathanael; Maddox, Kathleen; Sibley, Hillary D Subject: Baker River LA 410 Threatened and Endangered Species Annual Report for 2010 PSE is forwarding the 2010 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 April 4, 2011. Thanks, Haley Haley Edwards Puget Sound Energy Natural Resource Scientist 425.462.3305 206.940.8363 (cell) Figure 1. Message accompanying the draft Threatened, Endangered, and Sensitive Species 2010 Annual Report. 9.3 Summary of Reviewer Replies The following reviewer replied but had no comments: Lou Ellyn Jones, USFWS Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 25

Review Comments 9.4 Comment Correspondence From: LouEllyn_Jones@fws.gov [mailto:louellyn_jones@fws.gov] Sent: Tuesday, March 15, 2011 2:18 PM To: Edwards, Haley Subject: Re: Baker River LA 410 Threatened and Endangered Species Annual Report for 2010 Hi Haley. I have reviewed the report for 2010 and have no additional comments. Thank you. "Dreams are answers to questions we haven't yet figured out how to ask." -X-Files 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 Figure 2. Reply from Lou Ellyn Jones, U.S. Fish and Wildlife Service. Doc ID: BAK.2011.0429.0401.PSE.FERC Baker River Hydroelectric Project Page 26