02/08/2013 08:00 AM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB32 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 32 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
February 8, 2013
8:01 a.m.
MEMBERS PRESENT
Senator Peter Micciche, Chair
Senator Cathy Giessel, Vice Chair
Senator Dennis Egan
Senator Click Bishop
MEMBERS ABSENT
Senator Lyman Hoffman
COMMITTEE CALENDAR
SENATE BILL NO. 32
"An Act stating that the development and operation of a
hydroelectric site at Chikuminuk Lake is not an incompatible use
in the WTSP."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 32
SHORT TITLE: CHIKUMINUK LAKE HYDROELECTRIC SITE
SPONSOR(s): SENATOR(s) MCGUIRE
01/22/13 (S) READ THE FIRST TIME - REFERRALS
01/22/13 (S) CRA, RES
02/08/13 (S) CRA AT 8:00 AM BUTROVICH 205
WITNESS REGISTER
BRETT HUBER, staff for Senator McGuire
Alaska State Legislature
Juneau, Alaska
Sponsor statement
POSITION STATEMENT: Introduced SB 32 to the committee.
ELAINE SAMUELSON BROWN, Executive Director
Nuvista Light & Electric Cooperative
Anchorage, Alaska
POSITION STATEMENT: Supports SB 32.
CHRISTINE KLEIN, Executive Vice President and Chief Operating
Officer
Calista Corporation
Anchorage, Alaska
POSITION STATEMENT: Supports SB 32.
ANDREW ANGSTMAN, representing himself
Bethel, Alaska
POSITION STATEMENT: Opposes SB 32.
BEN KUNTZ, representing himself
Bethel, Alaska
POSITION STATEMENT: Opposes SB 32.
MYRON ANGSTMAN, representing himself
Bethel, Alaska
POSITION STATEMENT: Opposes SB 32.
GRANT FAIRBANKS, representing himself
Bethel, Alaska
POSITION STATEMENT: Opposes SB 32.
ROBERT NICK, representing himself
Nunapitchuk, Alaska
POSITION STATEMENT: Supports SB 32.
TIM TROLL, Executive Director
Bristol Bay Heritage Land Trust
Anchorage, Alaska
POSITION STATEMENT: Opposes SB 32.
MICHAEL WILLIAMS, representing himself
Akiak, Alaska
POSITION STATEMENT: Supports SB 32.
RON HOFFMAN, President and CEO
Association of Village Council Presidents Regional Housing
Authority
Bethel, Alaska
POSITION STATEMENT: Supports SB 32.
DAN DUNAWAY, representing himself
Dillingham, Alaska
POSITION STATEMENT: Opposes SB 32.
PAUL LIEDBERG, representing himself
Dillingham, Alaska
POSITION STATEMENT: Opposes SB 32.
CARRIE E. PLEIER, representing herself
Dillingham, Alaska
POSITION STATEMENT: Opposes SB 32.
HENRY WILSON, representing himself
Anchorage, Alaska
POSITION STATEMENT: Opposes SB 32.
ACTION NARRATIVE
8:01:20 AM
CHAIR PETER MICCICHE called the Senate Community and Regional
Affairs Standing Committee meeting to order at 8:01 a.m. Present
at the call to order were Senators Egan, Bishop, Vice Chair
Giessel and Chair Micciche.
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.