July 23,2009 VIA ELECTRONIC FILING. Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, DC 20426

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1 July 23,2009 VIA ELECTRONIC FILING Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, DC Re: Snohomish County PUD No. 1 Tidal Energy Project Progress Report #5 Deception Pass Tidal Energy Project (P-12687) Spieden Channel Tidal Energy Project (P-12689) Admiralty Inlet Tidal Energy Project (P ) Sun Juan Channel Tidal Energy Project (P-12692) Guemes Channel Tidal Energy Project (P-12698) Dear Ms. Bose: On February 22, 2007 Public Utility District No. 1 of Snohomish County, Washington (Snohomish) was issued preliminary permits for five tidal energy projects proposed in and around Puget Sound in the State of Washington: Rich Passage, P-12688; Spieden Channel, P-12689; Agate Passage, P-12691; San Juan Channel, P-12692; and Guemes Channel, P On March 1,2007 and March 9, 2007 Snohomish was issued preliminary permits for the Deception Pass, P-12687, and Admiralty Inlet, P , sites respectively. Per the FERC "strict scrutiny" requirements, Snohomish submitted its Schedule of Activities for all seven sites on April 13, 2007 and its first four six-month Project Progress Reports on July 31, 2007, January 3 1,2008, July 3 1,2008 and January 30,2009. On October 1, 2008, as a result of the feasibility study results, Snohomish surrendered the preliminary permits for the Rich Passage (P-12688) and Agate Passage (P-12691) sites. FERC issued notice of surrender of preliminary permits for these sites on October 7, On November 5, 2008 Snohomish was designated by FERC as the non-federal representative for the purpose of conducting informal consultation with the National Marine Fisheries Service and U.S. Fish and Wildlife Service pursuant to section 7 of the Endangered Species Act and the Magnuson- Stevens Fishery Conservation and Management Act for the Admiralty Inlet Tidal Energy Project. PROJECT ACTIVITY Consultation and Outreach During the past six month period Snohomish has continued contact with numerous federal, state, and local agencies and governments, tribal representatives, and other interested stakeholders. In addition to informal and telephone exchanges, these contacts have included: 2320 California Street Everett, WA /Mailing Address: P.O. Box 1107 Everett, WA Toll-free in Western Washington at

2 Page 2 of 1 1 Conducted numerous project overview presentations with a number of local community and service groups; Conducted phone and/or dialogue with the Washington State Dept. of Ferries, Fort Casey State Park management, the Puget Sound Anglers, the Washington Scuba Alliance, Seattle Pacific University-Camp Casey management, the Orca Network, Whidbey Island Economic Development Council, Island County Marine Resource Committee, and the Washington State Department of Archaeology and Historic Preservation; Participated, and provided a project update, at the Puget Sound Georgia Basin Ecosystem Conference in Seattle, Washington on February 9,2009; Provided a project overview and update to a group of Washington State legislators in Olympia, Washington on February 12,2009; Conducted a consultation meeting with numerous federal and state agencies and tribal governments (see Appendix A for attendance list) on February 13, 2009 in Bellevue, WA; Provided a project presentation/overview and update at the Northwest Straits Marine Conservation Initiative Commission Meeting on February 27, 2009 in Everett, Washington; Met with the Navy tidal energy team on March 4, 2009 in Lynnwood, WA to discuss environmental study plan development and collaboration; Met with members of the Suquamish Tribe and the Skagit River System Cooperative on March 18,2009 in Everett, WA to discuss feedback on proposed pre-installation studies; Participated in a joint consultation meeting with the Navy and involved federal and state agencies and tribal governments (see Appendix A for attendance list) on March 25, 2009 on Indian Island, WA; Provided a project overview and update to members of the Whidbey Island community on March 27,2009 in Coupeville and Oak Harbor, WA; Participated in teleconference with NOAAINMFS, USFWS, and WDFW on March 31, 2009, regarding marbled murrelet and seabird assessment methods and existing data sources; Met with the Puget Sound Harbor Safety Committee on April 1,2009 in Seattle, WA to review the project and discuss maritime industry comments; Provided a project overview and update to members of the Edmonds community on April 2,2009 in Edmonds, WA; Conducted meeting with the Fort Casey State Park Manager, Washington State DOT Ferries Environmental Coordinator, and Washington State Dept. of Natural Resources Aquatic District Manager at Keystone Harbor, Washington on April 9, 2009 to discuss project studies and discuss/visit potential subsea cable landing locations; Conducted teleconference with NOAAINMFS on April 9, 2009 to discuss potential study modifications in response to NOAAINMFS comments on drafi study plan documents; Conducted teleconference with NOAAINMFS on April 13, 2009 to discuss potential approaches to addressing green sturgeon study interests;

3 Page 3 of 11 Participated in teleconference with NOAAINMFS, USFWS, and WDFW on May 8, 2009, regarding marbled murrelet and seabird assessment methods and existing data sources; Met with NOAA/NMFS and UWFWS on June 18, 2009 in Lacey, WA to discuss preinstallation study plans and Biological Assessment (BA) development; Met with OpenHydro, the University of Washington, Devine Tarbell and Assoc., and Sound and Sea Technology on June 24-26, 2009 in Everett, WA to discuss project planning and plant design; Met with Camp Casey Site Manager on June 25, 2009, at Whidbey Island, WA to discuss subsea cable shore landingfacilities and collaboration opportunities; Conducted a consultation meeting with involved federal and state agencies and tribal governments (see Appendix A for attendance list) on June 29,2009 in Lacey, WA; Met with Seattle Pacific University (SPU) Vice-President and SPU's Camp Casey Site manager in Seattle, WA on July 2, 2009 to discuss subsea cable shore landingfacilities and collaboration opportunities; Met with members of the Suquamish Tribe and Skagit River System Cooperative on July 15, 2009 in Everett, WA to discuss feedback on proposed pre-installation studies and share results of initial aquatic species pre-installation studies. Project Studies and Site Investigation During the past six month period the following study-related work was conducted: Site Survey Activity The Northwest National Marine Renewable Energy Center - University of Washington branch (NNMREC-UW) designed, assembled, and deployed an instrumentation package (Figure 1) to characterize the physical and biological environment in the Admiralty Inlet project area. The infrastructure consists of a heavy-duty fiberglass frame (Figure 1, label I), ballasted by over 600 lbs of supplemental weight (2). Instrumentation includes: - RDI ADCP for velocity (3) - Loggerhead recording hydrophone for background noise up to 40 khz (4) - Sea-Star CTD for salinity and temperature (5) - T-Pod recording hydrophone for porpoise echolocation (added in June) (6) - Vemco hydrophone for tagged aquatic species (added in June) (7) The package is deployed from a vessel using a utility winch and load-bearing acoustic release. Recovery is by a float (8) attached to a high-tensile strength line (9) which is triggered by a coded acoustic pulse from a surface vessel. A redundant recovery system is included to guard against the risk of mechanical or electrical failure. NNMREC-UW conducted survey cruises within the Admiralty Inlet project area in early April and mid-june All cruise activities were carried out by the RN Jack Robertson, a UW-Applied Physics Lab research vessel based out of Seattle.

4 Page 4 of 1 1 During the April cruise, the instrumentation package was deployed for a two-day test, recovered, and redeployed for longer-duration measurements. In addition, shipboard surveys of the project area included: - ADCP measurements along cruise tracks - Water quality casts and sampling - Background noise - ROV (remotely operated vehicle) imaging of the seabed - Bottom grabs fiom seabed Figure 1 - Mobile instrumentation package The April cruise confirmed that strong currents in excess of 3 m/s (6 knots) occur throughout the project area. The seabed was determined to be predominantly scoured cobbles, with minimal loose sediment. Bottom grabs recovered only a few pebbles, consistent with ROV camera images (Figure 2). Figure 2 - ROV camera image (67 m depth). Cobbles are approximately 6-12 cm across.

5 Page 5 of 11 The June survey cruise primarily recovered and upgraded the instrumentation package deployed in April. The instrumentation package was then redeployed in somewhat shallower water at the southern end of the survey area. Additional shipboard ADCP tracks and water quality casts were also carried out. The next planned cruise is in early August 2009 and will recover and redeploy the instrumentation package and repeat most of the measurements carried out in April. Geophysical Survey During June 25-29,2009 Fugro Seafloor Surveys conducted a detailed geophysical and bathymetrical survey of the Admiralty Pilot Plant turbine site and potential cable routes in support of the Snohomish project. Technology Selection A detailed Request for Proposals and Statements of Qualifications was developed and sent to all leading tidal in-stream energy device developers worldwide on June 6,2008. This began the formal process by which Snohomish would select the most appropriate tidal energy technologies for its project sites. Snohomish received a dozen responses to the solicitation and through a detailed review process selected OpenHydro Group Ltd. as the preferred technology provider for the Admiralty Inlet Pilot Plant. A Notice to Proceed was issued to OpenHydro on June 24,2009. Marine Engineering Snohomish has selected Sound and Sea Technology (SST) as the principle marine engineering contractor and system integrator to design the Admiralty Pilot Plant in conjunction with OpenHydro. A Notice to Proceed was issued for the SST contract on June 24,2009. Please contact me if you have any questions regarding this report, or if you require any additional information on the status of the Snohomish Tidal Energy projects. Sincerely, Craig W. Collar, P.E. Senior Manager, Energy Resource Development Snohomish County PUD No. 1

6 Page 6 of 11 Appendix

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8 WASHINGTON STATE Governor's Ofhce of Regulatory Assistance Signmln Sheet N~VY Hydrokinetic Energy Project Name Organization Phone [Date]

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12 CERTIFICATE OF SERVICE I hereby certify that I have this day served via or via the U.S. Postal Service a copy of the foregoing filing upon each person designated on the official service list compiled by the Secretary in this proceeding in accordance with Rule 2010 of the Rules of Practice and Procedure of the Federal Energy Regulatory Commission. Dated at Everett, Washington, this 23rd day of July, Ray Finnen, Senior Paralegal Public Utility District No. 1 of Snohomish County PO Box Everett, WA Phone: Dept Fax:

13 PUBLIC UTILITY DISTRICT NO. 1 OF SNOHOMISH COUNTY TIDAL ENERGY PROJECT SERVICE LIST [FERC NOS. P-12687, P-12689, P-12690, P-12692, P A. Reid Allison 111 Office of Reservation Attorney 6700 Totem Beach Road Tulalip, WA Richard Civille, Legislative Chairperson San Juan County Pomona Grange #50 PO Box IS' Street N Friday Harbor, WA Brain Faller, Assistant Attorney General Office of the Attorney General Ecology Division PO Box Olympia, WA William C. Frymire, Senior Counsel Office of the Attorney General Fish & Wildlife Division Washington Street SE PO Box Olympia, WA Sheila Hosner WA Dept. of Ecology, NW Regional Office Office of Regulatory Assistance Ih Avenue SE Bellewe, WA Sheila. wa.gov Kyle Loring Friends of the San Juan's 650 Mullis Street, Suite 1 Friday Harbor, WA Nina Cordova, Paralegal Morisset, Schlosser & Jozwiak Norton Building 801 Second Avenue Seattle, WA Joseph Brogan Foster Pepper & Shefelman PLLC Third Avenue, Suite 3400 Seattle, WA Elizabeth Ellis, Planner Aquatic Resources Program WA Dept. of Natural Resources Washington Street SE POP Box Olympia, WA Elizabeth.ellis(iiiwadnr.gov Michael B. Ferguson Assistant Attorney General Office of the Attorney General 1125 Washington Street SE PO Box Olympia, WA Jane S. Hannuksela NOAA/National Marine Fisheries Service NOAA GCNW, Bldg Sand Point Way NE Seattle, WA Keith Kirkendall, Chief FERC & Water Division Branch National Marine Fisheries Service 1201 NE Lloyd Blvd., Suite 1100 Portland, OR Mark S. Lyon, Assistant Attomey General Office of the Attorney General Transportation & Construction 7141 Cleanwater Drive SW PO Box Olympia, WA markl Jonathan Olds Environmental Programs Manager WA Dept. of Transportation Third Avenue, Suite 500 Seattle, WA Scott Carton National Marine Fisheries Service 1201 NE Lloyd Blvd., Suite 1100 Portland, OR Steve Erickson Whidbey Environmental Action Network PO Box 53 Langley, WA Christopher Fontecchio, Attorney-Advisor National Oceanic & Atmospheric Admin Sand Point Way NE Seattle, WA David Hawkins, Tribal Attorney Upper Skagit Indian Tribe Community Plaza Way Sedro-Wooley, WA Karolyn Klohe, Asst. Attorney General Office of the Attomey General PO Box Washington Street SE Olympia, WA Joan Machioro, Senior Counsel Office of the Attorney General Department of Ecology PO Box Olympia, WA Rebekah Padgett Washington State Department of Ecology oth Avenue SE Bellewe, WA T: / PAD DocsIFERC Filing Service List RFF

14 Teny Pruitt, Asst. Attorney General Gary R. Sprague, Major Projects Section Lisa Tryon, Legal Assistant Office of the Attorney General Manager, Office of the Attorney General Office of the Attorney General Natural Resources Division Habitat Program Transportation & Construction PO Box Capitol Way N PO Box Olympia, WA Olympia, WA Olympia, WA svragms(ii,dfw.gov Stan Walsh, Hydropower Biologist Daryl Brent Williams Skagit System Cooperative Environmental Liaison Sauk-Suaittle Indian Tribe The Tulalip Tribes of Washington Swinomish Indian Tribal Community Tulalip Bay Drive 5318 Chief Brown Lane Tulalip, WA Damngton, WA Service List: wean(ii,whidbey.net; bi wa.gov; kvle(iisaniuans.org; T: I PAD DocslFERC Filing Service List RFF