The applicant (Xcel Energy) submitted a complete Wetland Conservation Act (WCA) application for a replacement plan for the Blue Lake Generating Plant project. The project intends to expand the plant by constructing new generating units that will replace old generating units. The old units need to remain on the grid throughout construction to maintain the generating requirements of the plant.

The project proposes 1,163 sq ft (0.027 ac) of permanent impact to 1 wetland for construction of the project. The applicant evaluated alternatives that would have avoided impacts to wetlands, but these alternatives were not feasible given requirements for the generating plant. The wetlands that remain on site following construction will retain hydrology and will be protected with upland buffers per City of Shakopee ordinance.

The application was noticed to the WCA Technical Evaluation Panel (TEP) on April 16, 2024. The TEP is advisory in nature and makes technical findings and recommendations. TEP members include representatives from the City, Board of Water and Soil Resources (BWSR), the Scott Soil and Water Conservation District (SWCD), the Minnesota Department of Natural Resources (DNR), and the Lower Minnesota River Watershed District (LMRWD). Comments were allowed until May 6, 2024. The TEP met April 30, 2024 to review the project and proposed wetland impacts and ultimately agreed with the proposed project and associated impacts.

Xcel Energy will replace wetland impacts at a 2:1 ratio by purchasing credits from an approved wetland bank within Sibley County, which meets the replacement plan siting requirements of WCA. The total amount of wetland replacement provided will be 2,326 square feet (approximately 0.054 acres).

On behalf of the City of Shakopee, Local Government Unit for the Wetland Conservation Act, I recommend that the City Council approves the wetland replacement plan for the Xcel Energy Blue Lake Generating Plant project. As a condition of approval, the applicant will be required to provide verification of wetland credit purchase from the Board of Water and Soil Resources. A Notice of Decision is attached for review.