The Catawba-Wateree Hydroelectric Project (FERC No. 2232) is located on the Catawba River, which begins in western North Carolina and flows easterly and southerly into South Carolina, where it joins Big Wateree Creek to form the Wateree River (see Figure 1.1-1). The Catawba-Wateree Project is comprised of 13 hydropower plants and 11 developments, including the James (Bridgewater), Rhodhiss, Hickory (Oxford), Lookout Shoals, Norman (Cowan's Ford), Mountain Island, Wylie, Fishing Creek, Great Falls, Rocky Creek, and Wateree reservoirs. The Catawba-Wateree Project spans over 200 river miles and encompasses approximately 1,700 miles of shoreline within nine counties in North Carolina and five counties in South Carolina (see Table 1.1-1).

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Table 1.1-1            Summary of Catawba-Wateree Project Reservoir Characteristics

* Estimate includes reservoir shoreline and island shoreline miles.

Click Here to View Full Figure 1.1-1 Catawba-Wateree Project Area

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The primary goals of the Catawba-Wateree Shoreline Management Plan (SMP) Update are to:

To support these primary goals of the SMP Update, Duke Power will:

	Build upon the foundation that was set by the currently approved SMP that has been in effect on the Catawba-Wateree Project since October 1994.
	Utilize the most current data available (e.g., Shallow Water Fish Habitat Survey data, Recreation Use and Needs Study results, Cumulative Impacts assessment, digital aerial photography, cultural resource data, etc.) to guide decisions regarding all types of access within the project boundary.
	Develop the SMP so that it is a tool that can be used by Duke Power in coordination with Company policies and permitting guidelines that benefit the Project and do not compromise the Project's primary function which is the production of electricity.
	Provide a factually based document that can and will be used by Duke Power, the resource management agencies and the Federal Energy Regulatory Commission (FERC) for reviewing requests for utilization of the Project and its resources.
	Comply with the FERC Order Approving and Modifying Shoreline Management Plan issued on February 2,1996, for the Catawba-Wateree Hydroelectric Project No. 2232, namely:
	File results of the 5-year review and a revised SMP, for Commission approval five years from February 2, 1996. Consult with appropriate resource management agencies and the Wateree Homeowner's Association: 1. regarding specific development proposals 2. to review the amount of shoreline that should be developed 3. to identify environmentally valuable shoreline aquatic and terrestrial species habitats, and protect such habitats by methods determined necessary, such as limiting development in these areas. Include documentation of consultation. Include copies of comments and recommendations on the completed draft plan after it has been prepared and provided to the agencies. Include specific descriptions of how the agencies' comments and recommendations are accommodated by the plan and reasons based on project -specific information if a recommendation is not adopted. Evaluate:
	1. the need for recreation land at Lookout Shoals Lake, Lake Hickory, Fishing Creek Lake, and Lake Wateree; 2. the need for additional boat ramps at Lookout Shoals Lake and Rocky Creek Lake; 3. the need for land-based recreation facilities at the project reservoirs; 4. proposed shoreline development levels and associated reservoir boating capacities (boating use update) at the reservoirs; 5. proposed shoreline reclassification at the reservoirs, including areas designated for project operations and islands.
	Enter into a Memorandum of Agreement (MOA) with the Commission, the Advisory Council on Historic Preservation (ACHP), the North Carolina State Historic Preservation Officer (SHPO) and the South Carolina State Historic Preservation Officer (SHPO).

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To develop the SMP Update, Duke Power undertook various resource studies to respond to the 1996 FERC Order and to obtain current information and data. These resource studies included:

	Recreation Use and Needs Study (Recreation Study);
	Shallow Water Fish Habitat Survey (SWFHS);
	Woody Debris Study; and
	Cultural Resources Study.

In addition to these specific studies, Duke Power updated the SMP maps and shoreline classifications based on the information obtained from these studies and consultation with resource agencies. Section 1.3 provides a brief discussion of the history and consultation process associated with the SMP Update.

Section 2.0 describes the methodology and planning process for the SMP Update, including the:

	shoreline classification and mapping process;
	SWFHS, Woody Debris Study, Shoreline Stabilization Technique Selection Process (SSTSP), Riparian Zone Management Information, Terrestrial Species Habitat Assessment;
	Recreation Study, the recreation demand assessment process, the Access Area Improvement Initiative (AAII) and proposed recreation enhancements; and the
	Cultural Resources Assessment.

Section 3.0 includes an assessment of each of the 11 lakes within the Catawba-Wateree system, including:

	shoreline classification for the shoreline lengths of the reservoir;
	results of the (SWFHS);
	data from the recreational use and carrying capacity assessment and the recreational demand assessment;
	results of the cultural resources assessment;
	proposed recreational enhancements; and
	the SMP maps.

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Section 4.0 provides a cumulative impact assessment of shoreline development. Section 5.0 includes a summary of the SMP Update consultation, submittal, and implementation process. Section 6.0 includes a summary of the future SMP review and update process.

On October 11, 1994, Duke Power filed an SMP for the Catawba-Wateree Project, Project No. 2232. The purpose of the plan was to provide a program for the licensee to manage use and development of the project shoreline within the Catawba-Wateree Project. As a result of that filing, the FERC issued an Order Approving and Modifying the SMP (Order) on February 2, 1996. Paragraph (B) of that order required a five-year review and SMP revision process, including consultation with the appropriate resource management agencies and the Lake Wateree Homeowners' Association (WHOA).

Per paragraphs (B) (1) and (E) of the February 1996 Order, the Commission stipulated that the SMP review process include: review of specific development proposals; review of the amount of shoreline that should be developed; measures to identify and protect environmentally valuable shoreline aquatic and terrestrial species habitats; and filing of any proposed shoreline land reclassification for Commission approval. Paragraph (B) (2) required the SMP review process to include: an evaluation of the need for recreation lands and facilities at the project reservoirs; an assessment of the reservoirs' boating capacities; and proposed shoreline reclassification at the project reservoirs. Paragraph (C) required the licensee to enter into a Memorandum of Agreement (MOA) with the Commission, the Advisory Council on Historic Preservation (ACHP), the North Carolina SHPO, and the South Carolina SHPO.

On February 3, 1997, Duke Power filed with the Commission the "Report Regarding Strategy and Schedule for Implementing Shoreline Management Plan" for the Catawba-Wateree Project, pursuant to the Commission's February 2, 1996, Order Approving and Modifying the existing SMP. The proposed strategy included measures for: consultation with resource agencies and WHOA; measures to identify and protect shallow water fisheries, terrestrial species habitats and aquatic plant management; measures for reclassification of the project reservoir shoreline areas; and proposed recreation facilities and upgrades. The Commission issued an Order on June 10, 1998, approving Duke Power's proposed plan to revise the SMP, and required the licensee to file a recreational needs study plan for Commission approval.

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As a result of the recreation commitments made in the 1994 SMP, Duke Power will spend approximately $11,000,000 on recreational improvements from 1996 through 2001. The improvements for the 27 projects to be completed include the replacement or construction of 39 loading piers, 76 boat ramps, 2 new fishing platforms and 2 canoe portages. The work also includes the paving and lighting of the access areas. Only one project, the expansion and paving of the Nivens Creek access area, will not be completed due to building code requirements.

SWFHS, Woody Debris Study and Shoreline Classification

In the strategy for the SMP Update, Duke Power proposed to develop a classification system of significant shallow water fisheries habitats with the state wildlife agencies. In addition, Duke Power proposed to conduct a survey of all undeveloped shoreline in order to identify areas of key importance for fish spawning and rearing and thus establish appropriate lake use restrictions. Duke Power conducted the SWFHS, and Duke Power and the resource agencies cooperatively developed the habitat classification and lake use restrictions associated with the critical habitats areas.

On September 30, 1998, Duke Power filed a draft SWFHS and updated SMP maps with the Commission, as required by the February 2, 1996, Order. Duke Power submitted a supplement to that filing on November 18, 1998, which included the Draft Woody Debris Study Proposal and additional agency transmittal letters and consultation results. On December 22, 1998, Duke Power requested an extension of time to allow development of more specific criteria, processes and implementation timeframes for allowing certain stabilization techniques in areas designated as Impact Minimization Zones (IMZ). On March 18, 1999, Duke Power requested an extension of time for filing the modifications to the SMP maps for submitting the Shoreline Stabilization Technique Selection Process (SSTSP). Commission staff approved the extension until April 17, 1999. On April 7, 1999 (verbal), and April 15, 1999 (written), Duke Power requested an extension until June 1, 1999, to incorporate modifications on the SMP maps, and to allow resource agencies adequate time to comment on the proposed SSTSP and SMP modifications. On May 28, 1999, Duke Power submitted the revised SMP maps, classifications, and associated lake use restrictions for the Catawba-Wateree Project to the Commission. On, December 21, 2000, the Commission issued an Order Modifying and Approving Revised Shoreline Classification Maps Project No. 2232-393.

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Duke Power completed data collection and analysis for the Woody Debris Study and prepared a final Woody Debris Study Report. The official filing of the Final Woody Debris Study (see Appendix A) is completed as a part of this SMP Update. Results of the consultation with the wildlife resource management agencies regarding management of woody debris and habitat enhancement activities will be included in a supplemental filing to be filed with the Commission on or before October 31, 2001.

Recreation Use and Needs Study

On August 28, 1998, Duke Power distributed the draft study methodology for the Recreation Use and Needs Study to state agencies, non-governmental agencies, and lake management agencies (consulted parties) for review and comment. The study methodology was revised to incorporate or respond to these comments and was submitted to FERC on October 29, 1998. On February 17, 1999, the Commission issued an order approving the Recreation Use and Needs Study methodology. Data collection efforts began in January 1999 and continued through December 1999 (study period). During the study period, three interim reports, which summarized the status of the data collection efforts, were distributed to FERC and the consulted parties for their review and information. The first interim report was distributed on April 29, 1999; the second report was distributed on July 30, 1999; and the third interim report was distributed on November 29, 1999. No comments were received on the interim reports. The draft Recreation Study was submitted to FERC and the consulted parties on March 31, 2000, for review and comment. The official filing of the final Recreation Use and Needs Study is completed as part of this SMP Update (see Appendix B).

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MOA and Cultural Resources Study

The FERC Order approving the 1996 revisions to the SMP directed that:

The Licensee shall enter into a Memorandum of Agreement (MOA) with the Commission, the Advisory Council on Historic Preservation, (ACHP) the North Carolina SHPO, and the South Carolina SHPO. Until a MOA is prepared, the licensee shall consult with the North Carolina SHPO and the South Carolina SHPO prior to undertaking any ground-disturbing activities such as recreational enhancements, as required by Article 39 of the project license. The MOA shall be filed with the Commission by February 2, 1997.

Duke Power, in consultation with both the North Carolina SHPO and the South Carolina SHPO, began working on the MOA in 1996. At that time, the SHPOs and Duke Power determined that entering into a Programmatic Agreement (PA) would be more appropriate than a MOA. In a letter dated January 15, 1997, FERC concurred with this decision and more clearly defined the scope of the agreement.

In a letter dated January 22, 1997, Duke Power requested a time extension to complete the PA from February 2, 1997 to May 5, 1997. FERC granted the extension and Duke Power filed a draft PA with FERC on May 5, 1997. FERC forwarded the draft PA to the North Carolina SHPO, the South Carolina SHPO and ACHP for review and comment. On August 1, 1997, FERC directed Duke Power to address comments it received from the ACHP and the North Carolina SHPO. Duke Power provided its response to these comments on September 26, 1997, and incorporated its comments into the draft PA.

Duke Power, FERC, the North Carolina SHPO and the South Carolina SHPO had numerous teleconferences and discussions regarding the PA during the period from the Fall of 1997 until the Spring of 2001. On March 29, 2001, the final signatory executed the PA and an Order was issued on April 5, 2001 Approving Programmatic Agreement. The final PA is included as Part 1 of Appendix C.

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The PA spells out the following activities that Duke Power will undertake:

	Activity 1: Develop a GIS database including all known historic and archaeological sites within the project boundary and within one-quarter mile of the project boundary. This database will utilize information contained in the North Carolina and South Carolina SHPOs' site files.
	Activity 2: Develop a predictive model utilizing the GIS database developed above to identify shoreline areas with a High, Moderate, Low and No probability for containing Historic Properties.
	Activity 3: Submit an implementation plan and schedule to test the predictive model to determine its accuracy.
	Activity 4: Utilize the predictive model's probability areas in the lake use permitting process.

Duke Power completed the first activity in anticipation of the activity being included in the final PA. Duke Power acquired a list of all known archaeological and historic sites within the project boundary and one-quarter mile of the project boundary contained in the North Carolina and South Carolina SHPO office site files. A GIS database was developed from this collection of data to serve as a preliminary inventory of such sites. This work was done in consultation with both the North Carolina and South Carolina SHPOs and was completed in June 2000. A copy of the Cultural Resource Context is included as Part 2 of Appendix C. The database and maps will be made available only to Signatories of the PA as parts 3 and 4 of Appendix C to this SMP Update.

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Access Area Improvement Initiative

The Access Area Improvement Initiative (AAII) was developed after review of the current lease assessment system and development of a new Recreation Management System (RMS). The RMS provided an organized, focused approach for continuing development of cooperative partnerships with second parties for development and maintenance of public facilities at Duke Power's public recreation areas and islands. At the time of the RMS development, system-wide, 13 sites were already under lease to agencies as public parks with two parks on their first lease renewal.

The existing partnerships on 13 access areas has been very successful in providing lakefront parks at a reduced cost for the agencies. The new leases to be written as a result of the AAII should be at least as successful as the existing leases because the Recreation Use and Needs Study provides current information on the recreation needs at the lakes as identified by the survey respondents.

As a result of recommendations from the RMS, in June of 1998, Duke Power notified the state and local recreation and resource agencies of its AAII and of the opportunity for them to lease the access areas and islands in their jurisdiction. From the June 1998 date until December 31, 1998, the agencies were given the first window of opportunity to send a letter to Duke Power expressing an interest in leasing any of the access areas or islands. The letter of interest provided Duke Power with an idea of the potential interest in future leasing possibilities for the recreation sites. A total of 1 state agency, 12 out of 14 counties, and 3 cities sent letters of interest. Duke Power also received 12 letters from non-agency groups about the potential for them to lease sites.

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At this point the agencies were under no commitment, except to submit a plan and schedule by June 1, 2000, for the sites they expressed an interest in developing. By the June 1 date, 1 state agency (for all of the North Carolina islands), 4 counties (for 6 sites and some islands), and 2 cities (for 2 sites) submitted plans and schedules that are included as proposed facilities in Section 3 of the SMP Update for the appropriate lakes. The plans will need to include facilities identified in the 1999 Recreation Use and Needs Survey. The non-agency groups will be considered for leases once their plans and schedules have been submitted and reviewed. Two counties requested and were granted an extension of time to prepare their plan and schedule. Although the June 1 deadline has passed, the AAII is an ongoing process and the agencies will still be able to inquire about leasing of available access areas and Duke-owned islands at anytime in the future.

The AAII has been successful in familiarizing the agencies with the potential for developing lake-front parks on land leased from Duke Power, at no lease cost, that enables the agencies to fully utilize their funds for facility development. Several agencies will be building facilities, as described later in this report, over the next 8 years that will greatly enhance the public's ability to enjoy a variety of recreation experiences at the lakes.

Cumulative Impact Assessment of Shoreline Development

The February 1996, Order pointed out the need to assess the cumulative environmental effects of shoreline development. In a recent proceeding (2232-402) FERC reiterated this concern and indicated that the issue of cumulative impacts from shoreline development (including discharges into the project waters) would be addressed comprehensively in the SMP Update to be filed in early 2001. FERC further notes in that same order that cumulative impacts will also be considered during the relicensing process for the entire project.

To begin to address cumulative environmental impacts (CEIs) of shoreline development in the Catawba-Wateree River Basin, Duke Power prepared an update of the publication of The Catawba regarding the basin and reservoirs. The update provides information on the water quality, trophic status, phytoplankton, and zooplankton populations, the littoral fish community, and the fish health index for each reservoir (see Appendix D). Section 4 provides a discussion of the CEI analyses and findings.

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