Legislature(2013 - 2014)BUTROVICH 205

02/08/2013 08:00 AM Senate COMMUNITY & REGIONAL AFFAIRS


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08:01:20 AM Start
08:02:13 AM SB32
09:04:22 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Note Day and Time Change
*+ SB 32 CHIKUMINUK LAKE HYDROELECTRIC SITE TELECONFERENCED
Heard & Held
           SB  32-CHIKUMINUK LAKE HYDROELECTRIC SITE                                                                        
                                                                                                                                
8:02:13 AM                                                                                                                    
CHAIR MICCICHE announced that  SB 32 was before the committee.                                                                  
                                                                                                                                
8:03:14 AM                                                                                                                    
BRETT   HUBER,   staff   for  Senator   McGuire,   Alaska   State                                                               
Legislature, introduced SB  32. He said Senator  McGuire has been                                                               
a  leader in  helping  to provide  affordable alternative  energy                                                               
sources across the state which  was important to all Alaskans. He                                                               
explained that  Senator McGuire believed that  each region should                                                               
have the  ability to  fully assess their  resources and  plan for                                                               
their future accordingly; SB 32 would help to do just that.                                                                     
                                                                                                                                
He said when  the Wood-Tickchik State Park (WTSP)  was created in                                                               
1978, in  accordance to AS  41.21.160-167. He explained  that two                                                               
lakes were  specifically mentioned in AS  41.21.167(c) and deemed                                                               
not to  be incompatible with  park resources for the  purposes of                                                               
development and operation of a  hydroelectric site. He noted that                                                               
SB 32  sought to add  Chikuminuk Lake to  the list of  lakes that                                                               
were deemed not to be incompatible with park resources.                                                                         
                                                                                                                                
He said  in 2012,  Nuvista Light  & Electric  Cooperative (NLEC),                                                               
conducted  a serious  of studies  on  the possible  hydroelectric                                                               
project  and were  denied a  special-use permit  to finish  their                                                               
studies. He  explained that the  Department of  Natural Resources                                                               
(DNR) was  ready to  issue the  permit, but  were advised  by the                                                               
Alaska  Department  of  Law  that  because  the  two  lakes  were                                                               
specifically mentioned in AS 41.21.167(c),  it would be deemed to                                                               
be  an exclusive  list. He  added  that Chikuminuk  Lake was  not                                                               
included  in 41.21.167(c)  and the  DNR  did not  have the  legal                                                               
authority to  issue the permit.  He said  SB 32 sought  to remove                                                               
the ban  for the permit.  He noted that Senator  McGuire's office                                                               
had been working  with the DNR-Division of Parks  on an amendment                                                               
to SB  32 to provide  clarity to  NLEC's ability to  work through                                                               
the management plan revisions and  provide public meetings on the                                                               
Chikuminuk  Lake  Hydroelectric  Project   (CLHP).  He  said  the                                                               
amendment would  be provided to the  committee as soon as  it was                                                               
received.                                                                                                                       
                                                                                                                                
8:05:29 AM                                                                                                                    
CHAIR MICCICHE  asked if Mr.  Huber's intention was to  have NLEC                                                               
provide a presentation.                                                                                                         
                                                                                                                                
MR. HUBER  responded yes.  He said NLEC  was prepared  to provide                                                               
testimony and  walk-through presentation  for the benefit  of the                                                               
committee.                                                                                                                      
                                                                                                                                
8:05:56 AM                                                                                                                    
CHAIR MICCICHE replied that he  thought the presentation would be                                                               
helpful.                                                                                                                        
                                                                                                                                
8:06:16 AM                                                                                                                    
ELAINE  SAMUELSON  BROWN,  Executive Director,  Nuvista  Light  &                                                               
Electric  Cooperative, stated  that she  was born  and raised  in                                                               
Bethel, Alaska. She said she was  a Yupik Eskimo from the Calista                                                               
Region. She  stated that NLEC  believed that Chikuminuk  Lake was                                                               
worth looking  at as  an option to  help their  community survive                                                               
and thrive.                                                                                                                     
                                                                                                                                
8:06:57 AM                                                                                                                    
CHAIR MICCICHE called an at-ease.                                                                                               
                                                                                                                                
8:07:21 AM                                                                                                                    
CHAIR MICCICHE called the committee back to order.                                                                              
                                                                                                                                
8:07:32 AM                                                                                                                    
MS. SAMUELSON BROWN said NLEC  was looking at Chikuminuk Lake for                                                               
Western and Southwest Alaska's  sustainable and affordable energy                                                               
needs. She  noted that NLEC was  looking at Chikuminuk Lake  as a                                                               
power source for approximately 25  communities within the Calista                                                               
and Bristol Bay region.                                                                                                         
                                                                                                                                
MS. SAMUELSON BROWN  said Chikuminuk Lake had  been studied since                                                               
1954 as  a lake  for a  hydroelectric project.  She noted  that a                                                               
special-use  permit was  issued in  1982 by  the DNR-Division  of                                                               
Parks, permit  number: 6700-82-2.  She explained that  the permit                                                               
allowed the authority  to go into WTSP and  do geotechnical work.                                                               
She said NLEC had a copy  of the report from the permitted study.                                                               
She informed  the committee that  NLEC was denied  their special-                                                               
use permit  in 2012.  She said  SB 32 would  allow NLEC  to study                                                               
Chikuminuk  Lake's  potential  for hydroelectricity  and  proceed                                                               
with geotechnical  and geophysical  testing to  determine project                                                               
viability.                                                                                                                      
                                                                                                                                
8:09:27 AM                                                                                                                    
She said  without SB 32,  NLEC would  not be allowed  to continue                                                               
their  geotechnical  and geophysical  studies  in  the WTSP.  She                                                               
asserted that  NLEC would  continue to  work with  communities in                                                               
the Bristol Bay and Calista regions  to address all of the issues                                                               
concerning  salmon, hunting,  cultural,  socioeconomic, etc.  She                                                               
noted  that  CLHP  would  have   to  follow  the  Federal  Energy                                                               
Regulatory  Commission (FERC)  Process. She  explained that  NLEC                                                               
would  be   filing  their  notice   of  intent   and  preliminary                                                               
application document in  the spring of 2013.  She said initiating                                                               
the  FERC  Process and  the  Integrated  Licensing Process  (ILP)                                                               
would engage all of the agencies to allow for continued studies.                                                                
                                                                                                                                
8:11:07 AM                                                                                                                    
SENATOR GIESSEL  asked for an  explanation on  "incompatible use"                                                               
and "compatible  use." She pointed  out that Ms.  Samuelson Brown                                                               
noted  in her  presentation that  pervious geotechnical  work was                                                               
authorized by an "incompatible use" permit.                                                                                     
                                                                                                                                
MS. SAMUELSON BROWN  answered that DNR was working  with NLEC and                                                               
was willing  to issue the  special-use permit to allow  for field                                                               
studies. She said the office  of the Alaska Attorney General took                                                               
a  stance against  the  permit due  to the  wording  in the  WTSP                                                               
Management Plan  that stated NLEC's  permit was  an "incompatible                                                               
use." She stated that a  change to a "compatible project" similar                                                               
to Lake  Elva and Grant Lake  would allow for field  studies. She                                                               
explained that  the process  would take 20  years. She  said NLEC                                                               
would strictly be  allowed to study CLHP's  viability and nothing                                                               
else would be opened up.                                                                                                        
                                                                                                                                
8:12:42 AM                                                                                                                    
CHAIR  MICCICHE asked  to confirm  that  there was  no salmon  in                                                               
Chikuminuk Lake.                                                                                                                
                                                                                                                                
MS. SAMUELSON  BROWN answered correct.  She explained  that there                                                               
were char  and lake trout  in the  Chikuminuk Lake. She  said the                                                               
fish  were landlocked  and no  salmon migrated  up to  Chikuminuk                                                               
Lake.                                                                                                                           
                                                                                                                                
SENATOR BISHOP asked if there were  three sets of rapids prior to                                                               
getting to the top of Chikuminuk Lake.                                                                                          
                                                                                                                                
MS. SAMUELSON BROWN answered yes.                                                                                               
                                                                                                                                
SENATOR BISHOP  asked if  the rapids were  the reason  why salmon                                                               
could not get to Chikuminuk Lake.                                                                                               
                                                                                                                                
MS. SAMUELSON BROWN  replied that she believed so.  She said NLEC                                                               
would be looking at reasons why  salmon did not get to Chikuminuk                                                               
Lake during  their field studies.  She said fish would  be "micro                                                               
chipped"  for  migration  patterns   in  Chikuminuk  Lake,  lakes                                                               
located below  Chikuminuk Lake, and possibly  the Nushagak River.                                                               
She explained  that the fish  migration study would prove  if the                                                               
rapids, cold  water temperature,  or fast river  currents stopped                                                               
salmon from going to Chikuminuk Lake.                                                                                           
                                                                                                                                
8:14:46 AM                                                                                                                    
CHRISTINE  KLEIN, Executive  Vice President  and Chief  Operating                                                               
Officer,  Calista Corporation,  said she  was a  lifelong Alaskan                                                               
that   was   raised  in   a   Southeast   Alaska  village   where                                                               
hydroelectric power was in place  for over one hundred years. She                                                               
said she came from an area  that was blessed with great resources                                                               
and low cost energy.                                                                                                            
                                                                                                                                
She said  the Calista  Corp. represented  56 villages  and 13,000                                                               
original  native  peoples in  Western  Alaska.  She said  Calista                                                               
Corp. area was  59,000 square miles that was  primarily low, flat                                                               
and wet  with the Yukon-Kuskokwim  Delta. She explained  that the                                                               
Calista Corp.  region and  people have  existed for  thousands of                                                               
years in a subsistence lifestyle.                                                                                               
                                                                                                                                
She noted that the area  around Chikuminuk Lake was surrounded by                                                               
state  parks,  federal  parks,   and  refuges  that  were  highly                                                               
restrictive. She said  there were no private land  other than the                                                               
native allotments  and village  corporation lands.  She explained                                                               
that there was  little infrastructure, no road access  to many of                                                               
the  villages, and  fuel had  to  be brought  in once  a year  by                                                               
barge. She noted that fuel prices were fixed for an entire year.                                                                
                                                                                                                                
She said the  cost of energy was five times  that of the national                                                               
average,  homes  were  heated  and powered  by  diesel  that  was                                                               
costing  $6.00 to  $10.00 per  gallon. She  stated that  the high                                                               
fuel costs were  unsustainable as in many  rural areas throughout                                                               
the state. She said there were  little or few jobs, an economy or                                                               
infrastructure to help improve the region's situation.                                                                          
                                                                                                                                
MS. KLEIN  explained that Calista  Corp. had looked  at solutions                                                               
over the  past 40  years and  CLHP was always  on the  table. She                                                               
noted that engineers had reported  that it was highly likely that                                                               
CLHP would  be a  feasible hydro-power option.  She said  over 50                                                               
Calista region villages  and tribes met in 2011  to address three                                                               
remaining  options   of  lakes   and  rivers  that   were  deemed                                                               
potentially  feasible by  the Alaska  Energy Authority  (AEA) and                                                               
other  engineers. She  stated that  AEA encouraged  consideration                                                               
for the CLHP  option. She said after the  AEA recommendation, the                                                               
Calista   Corp.  went   to  the   legislature  and   received  an                                                               
appropriation  for  assistance  with the  scientific  field  work                                                               
studies   to   assess   Chikuminuk  Lake's   [power]   generation                                                               
capabilities.                                                                                                                   
                                                                                                                                
She  asserted  that  Calista  Corp.   supported  SB  32  and  any                                                               
amendments that  would add Chikuminuk  Lake to the  existing WTSP                                                               
list of  lakes that were  considered for  hydro-power generation.                                                               
She said  Chikuminuk Lake was  one of Western  Alaska's remaining                                                               
options  that  had  the  necessary   year-round  flow  for  power                                                               
generation in an area that most needed [energy].                                                                                
                                                                                                                                
She noted  that Chikuminuk Lake  was documented as to  not having                                                               
salmon, an extremely important issue  to the region's people that                                                               
would  stop  any  project.  She said  Chikuminuk  Lake  had  been                                                               
repeatedly listed in over 17  engineering reports since 1954. She                                                               
revealed that CLHP would significantly  reduce the cost of energy                                                               
and help  reduce the number of  high cost subsidies that  have to                                                               
be continually put towards Power Cost Equalization (PCE).                                                                       
                                                                                                                                
She said  Calista Corporation's region  had a population  of over                                                               
20,000 people  and was  the only  rural part  of Alaska  that was                                                               
growing in population.  She stated that Calista Corp.  was one of                                                               
the  only growing  businesses and  regional  corporations in  the                                                               
region. She said Calista Corp.  respectfully requested that SB 32                                                               
be considered and moved ahead.                                                                                                  
                                                                                                                                
8:21:04 AM                                                                                                                    
CHAIR  MICCICHE noted  that the  committee  had received  several                                                               
letters in support  from: Ms. Coolidge, Mr.  Hoffman, Ms. Graham,                                                               
and Mr. Williams.  Letters of opposition were  received from: Ms.                                                               
Ilutsik, Mr.  Lisac, and  Mr. Dunaway. He  noted that  letters of                                                               
support and opposition  were given to committee  members and were                                                               
available to the public.                                                                                                        
                                                                                                                                
CHAIR MICCICHE  announced that public testimony  would proceed on                                                               
SB 32.                                                                                                                          
                                                                                                                                
8:22:36 AM                                                                                                                    
ANDREW ANGSTMAN, representing himself, opposes  SB 32. He said he                                                               
was born  and raised in  Bethel. He  noted that he  was extremely                                                               
familiar with  WTSP and used  the area for recreation.  He stated                                                               
that the  purpose of SB  32 was  to allow feasibility  studies to                                                               
take place and  the language in the bill  indicated otherwise. He                                                               
noted that  the language in  SB 32 was  very clear and  short. He                                                               
explained  that  SB  32  said,   "That  the  development  of  and                                                               
operation of  a hydroelectric project  at Chikuminuk Lake  is not                                                               
incompatible  with  the  park management  plan."  He  noted  that                                                               
nowhere in  SB 32 was  there specific language  saying, "Allowing                                                               
feasibility studies for hydroelectric  project at Chikuminuk Lake                                                               
is not  incompatible." He stated  that he  would like to  see the                                                               
proposed  amendments and  the  changes  for SB  32.  He said  the                                                               
legislature would condone  the entire project if it  passed SB 32                                                               
in its current form.                                                                                                            
                                                                                                                                
He addressed  the statements regarding salmon  in Chikuminuk Lake                                                               
and confirmed that  salmon did not reach the lake.  He noted that                                                               
the  char and  lake  trout were  large, some  weighing  30 to  40                                                               
pounds. He noted  that the issue he was very  concerned about was                                                               
that  the   studies  that  NLEC   was  proposing   only  extended                                                               
downstream  to the  first lake,  Chauekuktuli Lake.  He said  the                                                               
Lower  Allen  River,  Chauekuktuli Lake,  Nuyakuk  Lake,  Tikchik                                                               
Lake, and the Nuyakuk River were  some of the best salmon habitat                                                               
in Western  Alaska. He  declared that CLHP  would have  a greater                                                               
direct impact on salmon than the Pebble Mine.                                                                                   
                                                                                                                                
8:26:24 AM                                                                                                                    
SENATOR EGAN  asked if Mr. Angstman's  boss was opposed to  SB 32                                                               
in its current form.                                                                                                            
                                                                                                                                
MR. ANGSTMAN replied that he  was representing himself and not an                                                               
organization. He noted that he worked for Ryan Air in Anchorage.                                                                
                                                                                                                                
8:27:10 AM                                                                                                                    
BEN KUNTZ, representing himself, opposes SB  32. He said he was a                                                               
resident of Bethel for ten  years. He stated that Chikuminuk Lake                                                               
was set aside  under the WTSP Management Plan as  a place where a                                                               
motor  boat could  not be  used. He  explained that  there was  a                                                               
reason  why  Lake  Elva  and  Grant Lake  were  included  in  the                                                               
original management plan  as being options for  hydropower due to                                                               
their  proximity  to  Dillingham.  He stated  that  he  supported                                                               
hydropower, but not at Chikuminuk Lake.                                                                                         
                                                                                                                                
SENATOR BISHOP asked what Mr. Kuntz did for a living.                                                                           
                                                                                                                                
MR. KUNTZ answered  that he was representing himself  and not his                                                               
work.  He said  he  was  an English  professor  at the  Kuskokwim                                                               
Campus in Bethel.                                                                                                               
                                                                                                                                
8:29:35 AM                                                                                                                    
MYRON ANGSTMAN, representing  himself, opposes SB 32.  He said he                                                               
worked and lived in Bethel for  almost 40 years. He noted that he                                                               
used WTCP  for recreation. He  said CLHP was not  compatible with                                                               
WTCP's goals,  CLHP's power would  be expensive,  and alternative                                                               
power sources  should be  considered. He  stated that  parks were                                                               
set aside to prevent development.                                                                                               
                                                                                                                                
8:33:26 AM                                                                                                                    
GRANT  FAIRBANKS, representing  himself, opposes  SB 32.  He said                                                               
CLHP would  not be compatible  with the WTSP Management  Plan. He                                                               
stated  that NLEC  intended to  spend $640  million for  CLHP and                                                               
noted that the  cost for the distribution network  to 14 villages                                                               
was not included. He said  CLHP would benefit 2,930 households in                                                               
Southwest  Alaska and  the per-household  cost would  be $218,430                                                               
without the  added cost for  the power line  distribution system.                                                               
He  stated  that  on-site  renewable  energy  sources  were  more                                                               
economical, provided  jobs, and  would save hundreds  of millions                                                               
of  dollars.   He  noted   that  the   [proposed]  Susitna-Watana                                                               
Hydroelectric  Project would  cost $30,000  per household  if all                                                               
Railbelt homes were supplied.                                                                                                   
                                                                                                                                
8:37:27 AM                                                                                                                    
ROBERT NICK,  representing himself,  supports SB  32. He  said he                                                               
was  a stakeholder  for  the  proposed CLHP.  He  stated that  14                                                               
villages would be provided with  alternative energy from CLHP. He                                                               
said CLHP  would alleviate the  hardship caused by the  high cost                                                               
of energy for  young families, single parents  with children, and                                                               
elders on fixed  incomes. He noted that SB  32 would specifically                                                               
evaluate the feasibility of the proposed CLHP.                                                                                  
                                                                                                                                
8:40:58 AM                                                                                                                    
TIM TROLL,  Executive Director, Bristol  Bay Heritage  Land Trust                                                               
(BBHLT),  opposes SB  32. He  explained that  BBHLT had  a vested                                                               
interest in preserving the mission  of WTSP and noted that people                                                               
from the region  requested that the park be created.  He said the                                                               
mission  was  to  protect  the  preservation  of  fish,  wildlife                                                               
breeding,   support   systems,  subsistence,   and   recreational                                                               
activities.                                                                                                                     
                                                                                                                                
MR. TROLL  stated that over the  past decade, BBHLT and  the DNR-                                                               
Division of Parks  and Outdoor Recreation had  worked together on                                                               
several projects to preserve WTSP's  mission. He noted that BBHLT                                                               
and its partner conservation organization  had raised millions of                                                               
dollars  to   assist  the  DNR-Division  of   Parks  and  Outdoor                                                               
Recreation in  its efforts to  protect the integrity of  WTSP. He                                                               
explained that money  had been raised primarily  by acquiring fee                                                               
and  conservation  easements  on  private land  within  the  WTSP                                                               
holdings, and  in most cases  turned the private  properties over                                                               
to  state ownership  at  no  cost to  the  state.  He noted  that                                                               
properties  near  Chikuminuk  Lake  had been  acquired  with  the                                                               
expressed intention to perpetuate WTSP's mission.                                                                               
                                                                                                                                
He said  SB 32  would negate the  generosity of  private property                                                               
donation in  WTSP by changing the  rules to allow a  project that                                                               
was speculative at best. He said  SB 32 would likely make raising                                                               
money for  future conservation in  WTSP difficult. He said  SB 32                                                               
was  controversial and  pitted one  region of  the state  against                                                               
another. He  said the people of  Bristol Bay were not  asking for                                                               
CLHP.                                                                                                                           
                                                                                                                                
8:45:04 AM                                                                                                                    
MICHAEL WILLIAMS,  representing himself, supports SB  32. He said                                                               
Chikuminuk  Lake  should  be  studied  for  possible  alternative                                                               
energy  to villages  in  Western Alaska.  He  noted that  village                                                               
elders had recommended  Chikuminuk Lake because it  had the least                                                               
impact on  salmon. He  explained that the  villages could  not be                                                               
sustained  on fossil  fuels anymore.  He said  bio-mass and  wind                                                               
should also be considered as energy sources.                                                                                    
                                                                                                                                
8:48:26 AM                                                                                                                    
RON  HOFFMAN,  President  and CEO,  The  Association  of  Village                                                               
Council  Presidents (AVCP)  Regional Housing  Authority, supports                                                               
SB  32. He  stated that  the  cost per  kilowatt-hour ($/kWh)  in                                                               
Anchorage  was  $0.1274/kWh,  Toksook Bay  was  $0.4490/kWh,  and                                                               
Bethel was $0.4892/kWh. He noted  other village kWh hour rates in                                                               
comparison  to Anchorage.  He said  the high  cost of  energy was                                                               
especially impacting families.                                                                                                  
                                                                                                                                
SENATOR EGAN  asked if the  differentials from PCE  were included                                                               
in Mr. Hoffman's kWh rates.                                                                                                     
                                                                                                                                
MR. HOFFMAN  answered the kWh  rates were provided by  the Alaska                                                               
Village Electric  Cooperative (AVEC) and  he did not know  if PCE                                                               
was applied. He noted that  the Anchorage kWh rates were provided                                                               
by the Chugach Electric Association.                                                                                            
                                                                                                                                
8:51:33 AM                                                                                                                    
DAN DUNAWAY, representing himself, opposes  SB 32. He said he was                                                               
a  Southwest  Alaska  resident  since 1978.  He  noted  that  the                                                               
language in  SB 32 should  specifically state an allowance  for a                                                               
study and the bill's current  form opened the possibility for too                                                               
much. He said Lake Elva and  Grant Lake were grandfathered in due                                                               
to  regional  interest  in possible  hydroelectric  projects.  He                                                               
stated  that a  local  electrical cooperative  had assessed  Lake                                                               
Elva and Grant  Lake and noted that the high  cost of power lines                                                               
marginalized possible hydropower projects.                                                                                      
                                                                                                                                
He said  local people recognized  the need for  affordable power,                                                               
but were not comfortable in  compromising WTSP. He stated that if                                                               
the  committee's intent  was to  allow a  study, there  should be                                                               
other  language  that  could be  used  without  compromising  the                                                               
integrity of WTSP.                                                                                                              
                                                                                                                                
He said WTSP was partially formed  at the request of Jay Hammond.                                                               
He remarked  that he could  not imagine any elected  official who                                                               
would want to  be part of dismantling the  nation's largest state                                                               
park that was created by local demand.                                                                                          
                                                                                                                                
He  stated  that hydroelectric  dams  could  have major  negative                                                               
environmental   impacts  on   downstream  spawning   habitat.  He                                                               
summarized  that   the  [Tazimina  Hydroelectric   Project]  near                                                               
Iliamna  had  been  far  more  expensive  than  expected  due  to                                                               
problems with ice in the winter.                                                                                                
                                                                                                                                
8:54:49 AM                                                                                                                    
PAUL LIEDBERG,  representing himself, opposes  SB 32. He  said he                                                               
was  a  nine  year  resident  of Dillingham  and  an  eight  year                                                               
resident of Bethel. He explained  that he recently retired as the                                                               
manager of  the Togiak  National Wildlife  Refuge and  had worked                                                               
closely with  the WTSP managers. He  noted that he served  on the                                                               
Dillingham City  Council and the Dillingham  Planning Commission.                                                               
He stated that his comments  reflected his personal views and was                                                               
representing himself.                                                                                                           
                                                                                                                                
He  said the  majority  of commercial  activities  for WTSP  were                                                               
based out  of Dillingham.  He noted that  a 2012  WTSP Management                                                               
Council meeting to discuss the  requested permit for CLHP was met                                                               
with  overwhelming  opposition   from  Dillingham  residents  and                                                               
commercial operators.                                                                                                           
                                                                                                                                
MR. LIEDBERG  noted that  the document prepared  by NLEC  for the                                                               
legislature  in  2011  stated  that  power  from  CLHP  would  be                                                               
supplied to Bethel and 13 other  villages for a rate of $0.58/kWh                                                               
to  $0.70/kWh.  He  asserted  that an  investment  of  over  $500                                                               
million to produce  electricity for Bethel and  13 other villages                                                               
selling for $0.58/kWh  to $0.70/kWh was not a  wise investment in                                                               
the scheme of Alaska's statewide energy policy.                                                                                 
                                                                                                                                
He said  BBHLT had  worked closely with  the state  in protecting                                                               
private  lands and  SB  32 would  undermine  BBHLT's work,  money                                                               
expended, and future  efforts to support WTSP. He  said there had                                                               
been  discussions that  the  SB 32's  current  version would  not                                                               
authorize   actual  construction   of   a   dam  and   associated                                                               
facilities, which  was not correct.  He encouraged  the committee                                                               
to seek legal  analysis to make sure the intent  and impact of SB
32 was clear.                                                                                                                   
                                                                                                                                
He said there  were two other issues that  complicated the actual                                                               
development of  CLHP: private  land located  at the  proposed dam                                                               
site and  a transmission line  crossing the Yukon  Delta National                                                               
Wildlife Refuge to  move electricity from Chikuminuk  Lake to the                                                               
Kuskokwim River.  He noted that  Title 11 of the  Alaska National                                                               
Interest  Lands Conservation  Act (ANILCA)  provided for  utility                                                               
corridors, but high levels of  scrutiny would be involved with no                                                               
assurance of approval.                                                                                                          
                                                                                                                                
He summarized  that he understood the  need to find wise  ways to                                                               
provide affordable  energy to the  region, but SB32 did  not meet                                                               
the criteria  for wise or  affordable energy. He stated  that the                                                               
CLPH costs  were too  high, social  and environmental  impacts to                                                               
WTSP were too high, complications  from private and federal lands                                                               
use was  too extensive, and  the opposition  to the CLPH  was too                                                               
wide spread.                                                                                                                    
                                                                                                                                
8:58:07 AM                                                                                                                    
CARRIE  E.  PLEIER,  representing  herself, opposes  SB  32.  She                                                               
stated  that   consistent  with   the  legislative   purpose  for                                                               
establishing  the  WTSP  in  1978  to  three  primary  management                                                               
objectives  of  the  DNR-Division  of  Parks  and  Recreation  as                                                               
follows:                                                                                                                        
                                                                                                                                
        1. Protect and conserve the area's fish and wildlife                                                                    
          populations and breeding systems.                                                                                     
        2. Provide the continued use of the area for                                                                            
          traditional    subsistence     and    recreational                                                                    
          purposes.                                                                                                             
        3. Protect the area's recreational and scenic                                                                           
          resources.                                                                                                            
                                                                                                                                
She   said  allowing   development   and   operation  of   a                                                                    
hydroelectric  project  in Chikuminuk  Lake  was  in no  way                                                                    
compatible  with   any  of  WTSP's  three   core  management                                                                    
objectives. She  explained that altering  the water  flow in                                                                    
the  Allen River  had  the potential  to  affect the  entire                                                                    
ecosystem downstream  for sockeye salmon spawning.  She said                                                                    
the  Allen River's  salmon and  the  entire downstream  area                                                                    
should be  protected. She said  sockeye salmon were  a vital                                                                    
component  for   subsistence,  commercial   fishing,  sports                                                                    
fishing, and the culture of Bristol Bay's people.                                                                               
                                                                                                                                
She  explained that  the step  in  altering the  legislative                                                                    
intent  from 1978  would have  far reaching  impacts to  the                                                                    
people and  economy of Alaska.  She said  commercial fishing                                                                    
was  the number  one  industry in  Bristol  Bay and  fishing                                                                    
equaled survival.  She stressed that  incrementally damaging                                                                    
the  Bristol   Bay  fisheries  resource   would  potentially                                                                    
destroy the fishery  and the families that  call Bristol Bay                                                                    
home.  She summarized  by reading  a quotation  from "Hidden                                                                    
Alaska"  by  Dave Atcheson,  a  book  on preserving  Bristol                                                                    
Bay's ecosystem.                                                                                                                
                                                                                                                                
9:00:42 AM                                                                                                                    
HENRY WILSON,  representing himself,  opposes SB  32. He  said he                                                               
was a resident of Anchorage and  owned property in the WTSP area.                                                               
He noted  that he understood  the need for affordable  power, but                                                               
believed that  CLHP would  not provide that.  He stated  that the                                                               
proposed  CLHP  was  not  economically  viable  due  to  numerous                                                               
technical and logistical problems.  He noted a recent engineering                                                               
report that found the diesel-only  alternative as a preferred low                                                               
cost  energy   choice  over   WTSP  hydroelectric   projects.  He                                                               
addressed  the  logistical power  line  issues  and the  lack  of                                                               
assurance that authority  would be granted for  CLHP. He asserted                                                               
that  downstream  salmon could  be  affected  by CLHP  and  noted                                                               
numerous incidences  in the  Lower 48 where  dams had  an adverse                                                               
impact.                                                                                                                         
                                                                                                                                
9:03:39 AM                                                                                                                    
CHAIR MICCICHE  said SB 32  would be held  and heard at  the next                                                               
meeting.  He  noted  that public  testimony  would  continue  and                                                               
amendments may  be presented to  address many of the  CLHP issues                                                               
in WTSP.                                                                                                                        
                                                                                                                                
9:04:22 AM                                                                                                                    
There being no further business to come before the Community &                                                                  
Regional Affairs Committee, Chair Micciche adjourned the meeting                                                                
at 9:04 a.m.