02/12/2013 03:30 PM 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 12, 2013
3:32 p.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 Wood-Tikchik State Park."
- MOVED CSSB 32(CRA) OUT OF COMMITTEE
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) RES REFERRAL REMOVED
02/08/13 (S) FIN REFERRAL ADDED AFTER CRA
02/08/13 (S) CRA AT 8:00 AM BUTROVICH 205
02/08/13 (S) Heard & Held
02/08/13 (S) MINUTE(CRA)
02/12/13 (S) CRA AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
BRETT HUBER, Staff to Senator McGuire
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained Amendment 1 to SB 32 for the
sponsor.
MAX ANGELLAN, representing himself
Kwethluk, Alaska
POSITION STATEMENT: Supported SB 32.
ELAINE BROWN, Executive Director
Nuvista Light & Electric Cooperative, Inc.
Nuvista, Alaska
POSITION STATEMENT: Supported SB 32.
GEORGE GUY, Chairman
Nuvista Light & Electric Cooperative, Inc.
Kwethluk, Alaska
POSITION STATEMENT: Supported SB 32 with Amendment 1.
ANDREW GUY, President and CEO
Calista Corporation
Anchorage, Alaska
POSITION STATEMENT: Supported SB 32.
JACOB N. BLACK, President
Napakiak Council
Napakiak, Alaska
POSITION STATEMENT: Supported SB 32.
JULIA ANDREW, Acting Tribal Administrator,
Village of Napakiak, Alaska
POSITION STATEMENT: Supported SB 32.
WILLY KASAYULIE
Chairman, Calista Corporation
Board Member, Nuvista Light & Electric Cooperative
Bethel, Alaska
POSITION STATEMENT: Supported SB 32 with Amendment 1.
LISA ILUTSIL, representing herself
Dillingham, Alaska
POSITION STATEMENT: Opposed SB 32.
ANDREW ANGSTMAN, representing himself
Anchorage, Alaska
POSITION STATEMENT: Opposed CSSB 32(CRA).
GRANT FAIRBANKS, representing himself
Bethel, Alaska
POSITION STATEMENT: Opposed CSSB 32(CRA).
MICHAEL HOFFMAN, representing himself
Bethel, Alaska
POSITION STATEMENT: Opposed SB 32.
ROBERT BEANS, Board Member
Calista Corporation
Anchorage, Alaska
POSITION STATEMENT: Supported SB 32.
CODY LARSON, representing himself
Dillingham, Alaska
POSITION STATEMENT: Opposed SB 32.
BING SANTAMOUR, representing himself
Bethel, Alaska
POSITION STATEMENT: Opposed SB 32.
BEN ELLIS, Director
Division of Parks & Outdoor Recreation
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Neutral on SB 32.
ACTION NARRATIVE
3:32:01 PM
CHAIR PETER MICCICHE called the Senate Community and Regional
Affairs Standing Committee meeting to order at 3:32 p.m. Present
at the call to order were Senators Giessel, Bishop, and Chair
Micciche.
SB 32-CHIKUMINUK LAKE HYDROELECTRIC SITE
3:32:50 PM
CHAIR MICCICHE announced SB 32 to be up for consideration.
3:33:18 PM
BRETT HUBER, staff to Senator McGuire, sponsor of SB 32, said
Senator McGuire sent her apologies for not being able to be
here, and that he was available to answer questions.
3:33:55 PM
SENATOR EGAN joined the meeting.
3:34:09 PM
SENATOR BISHOP moved Amendment 1.
28-LS0311\A.2
Bullock
AMENDMENT 1
OFFERED IN THE SENATE
TO: SB 32
Page 1, line 1, following "that":
Insert "a feasibility study for"
Page 1, line 2, following "Park":
Insert "; relating to the Wood-Tikchik State Park
management plan and the amendment of the plan to allow
for a feasibility study for the development and
operation of a hydroelectric site at Chikuminuk Lake;
relating to the enforcement of provisions in the Wood-
Tikchik State Park management plan and regulations
relating to the Wood-Tikchik State Park that are
inconsistent with a feasibility study for the
development and operation of a hydroelectric site at
Chikuminuk Lake; and providing for an effective date"
Page 1, lines 4 - 6:
Delete all material and insert:
"* Section 1. AS 41.21.167 is amended by adding a
new subsection to read:
(e) Performance of a feasibility study for the
development and operation of a hydroelectric site at
Chikuminuk Lake is not considered an incompatible use.
* Sec. 2. The uncodified law of the State of Alaska
is amended by adding a new section to read:
TRANSITION: WOOD-TIKCHIK STATE PARK MANAGEMENT
PLAN AND REGULATIONS; ENFORCEMENT. To allow for a
feasibility study for the development and operation of
a hydroelectric site at Chikuminuk Lake, the
Department of Natural Resources
(1) shall amend the Wood-Tikchik State Park
Management Plan, dated October 2002, and regulations
applicable to the Wood-Tikchik State Park to conform
to AS 41.21.167(e), enacted by sec. 1 of this Act; and
(2) may not enforce or implement provisions
in the Wood-Tikchik State Park Management Plan, dated
October 2002, and regulations applicable to the Wood-
Tikchik State Park that are inconsistent with
AS 41.21.167(e), enacted by sec. 1 of this Act.
* Sec. 3. This Act takes effect immediately under
AS 01.10.070(c)."
SENATOR BISHOP asked Mr. Huber to walk the committee through the
amendment.
MR. HUBER said Amendment 1 was prepared in consultation with the
Division of Parks, Department of Natural Resources (DNR) and
drafted by Legislative Legal. The effect of the amendment is to
make clear that the activity authorized by this act is limited
to the performance of a feasibility study for the development
and operation of a hydroelectric site at Chikuminuk Lake.
Instead of adding Chikuminuk Lake to the list in AS
41.27.167(c), language in the original bill, the amendment
deletes section 1 and replaces it with a new section 1 that
creates a new subsection (e) that states:
(e) Performance of a feasibility study for the
development and operation of a hydroelectric site at
Chikuminuk Lake is not considered an incompatible use.
In addition, the amendment adds a section 2 that provides
transitional language the effect of which is in (1) require the
amendment of the Park Management Plan to conform to the new
subsection. Section 2 also disallows enforcement of the current
plan as it applies to the new provision. It makes conforming
changes to the title of the bill.
MR. HUBER said this amendment was consistent with the sponsor's
intent in offering the original bill, which is allowing the
study Nuvista is conducting to continue.
He said Senator McGuire supports providing energy alternatives
across the state and for each region to have the ability to
assess and makes its own decisions and this further clarifies
that intent.
3:36:19 PM
SENATOR EGAN asked if the fiscal note had changed with the
amendment.
MR. HUBER answered there is a $20,000 fiscal note, but it hadn't
changed.
CHAIR MICCICHE clarified that some people around the park were
worried that the earlier bill was too broad.
MR. HUBER responded that the original bill added a lake to the
list of lakes already authorized in the not incompatible use
section, but after testimony they thought it was wise to stick
with their original intent, which was to provide for that study
to go forward.
3:37:25 PM
SENATOR GIESSEL asked if he had talked with Nuvista or any of
the residents who testified to see if they were comfortable with
this amendment.
MR. HUBER answered that they had talked to a number of folks
including Nuvista and Calista that are working on the study and
they are comfortable with the amendment.
3:39:09 PM
CHAIR MICCICHE asked for a roll call vote; Senators Giessel,
Egan, Bishop and Micciche voted yea; and there were no nays.
Therefore, Amendment 1 was adopted.
3:39:18 PM
CHAIR MICCICHE opened public testimony on the CSSB 32(CRA).
3:39:39 PM
MAX ANGELLAN, representing himself, Kwethluk, Alaska, supported
SB 32, saying he thought a hydroelectric project would bring
down their high electric, gas and fuel prices. They pay $.52 per
kilowatt hour, $10.50 for a gallon of gas and $6.91 for a gallon
of heating fuel.
3:43:10 PM
SENATOR MICCICHE thanked him for his testimony, but pointed out
that this bill only authorizes a feasibility study for the
development and operation of a site.
3:43:30 PM
ELAINE BROWN, Nuvista Light & Electric, Nuvista, Alaska,
supported the amendment to SB 32 so they can continue with their
feasibility studies over the next few years.
3:44:19 PM
GEORGE GUY, Chairman, Nuvista Light & Electric Cooperative,
Inc., Kwethluk supported SB 32 with Amendment 1. He said the
high cost of energy causes many people, some of whom are on
fixed incomes, to choose between buying food or heating fuel. He
said they are still living in the 19th century, but 21st Century
structures are available to improve their living standards as
citizens of the United States of America.
3:47:32 PM
ANDREW GUY, President and CEO, Calista Corporation, supported SB
32. He said the cost of energy and transportation are the big
factors driving businesses out there or the lack of. He said
it's harder to establish businesses in the Bush because they
have to compete with urban businesses that have the benefit of
energy projects that have been paid for by the state as well as
economies of scale. The businesses in rural Alaska do not
benefit from the Power Cost Equalization Program.
3:49:47 PM
JACOB BLACK, President, Napakiak Council, Napakiak, Alaska,
supported SB 32, because that would mean they could go ahead
with the project in the summer of 2014. He said their cost of
living is really high.
3:52:02 PM
JULIA ANDREW, Acting Tribal Administrator, Village of Napakiak,
Alaska, supported SB 32, because the fuel prices in the village
are really high. She said, "A lot of people are having a hard
time in the village this winter."
3:53:28 PM
WILLY KASAYULIE, Chairman, Calista Corporation, and board
member, Nuvista Light & Power Cooperative, Inc., Bethel, Alaska
supported SB 32 and Amendment 1. He supported earlier comments
about the high cost of energy for both fuel and electricity,
which makes it expensive to keep schools operating.
3:55:25 PM
LISA ILUTSIK, representing herself, Aleknagik, Alaska, opposed
SB 32. She said that anyone who has ever traveled to Wood-
Tikchik State Park would immediately recognize that there is no
place like it on earth; it is a pristine and remote wilderness
and it needs to remain protected from any sort of development.
The astronomical projected project costs are not worth damaging
a lake and river system that is home to rich salmon breeding
grounds and other lake species of fish.
3:57:27 PM
ANDREW ANGSTMAN, representing himself, Anchorage, Alaska,
opposed CSSB 32(CREA) and said the feasibility study was denied
by the Division of Parks and Recreation for specific reasons.
The activities described by Nuvista include seismic surveys and
helicopter work, which is banned in Wood-Tikchik State Park, and
motor boat operation on Chikuminuk Lake, which is also banned.
Writing a law saying they can do whatever they need to do just
because doesn't make sense and doesn't make it right. He was
really concerned about the validity that this amended bill would
give to the entire project. He said it was noteworthy that
people in support of this bill overall are coming from the side
of the mountains where the water in Chikuminuk Lake does not
run; they come from the Kuskokwim where none of the possible
environmental impacts will ever take place and they will be
getting all the power.
3:59:48 PM
GRANT FAIRBANKS, representing himself, Bethel, Alaska, said he
opposed CSSB 32(CRA). He said it had been 40 years since he
received a degree in business and economics, but he is still
well versed in economics. Since 1973 when he moved to Western
Alaska he had studied solar electricity and had built one of the
first total solar electric homes in a very remote area of the
Kuskokwim River and at a cost of less than $15,000. He was
certain that every village household in the region could have
total solar electricity with grid-tied backup for a cost equal
to that of the proposed Susitna project per home cost. This
system would have a per-home cost of only 15 percent of the
proposed Chikuminuk hydroproject and not jeopardize the salmon
habitat of the Wood-Tikchik system.
A pilot solar or wind project in a few villages could be a good
test for an electric co-op like Nuvista. This type of energy
would employ local people and provide great benefits for
everyone and at a fraction of the cost of hydroelectricity.
He said there is a reason our country is dismantling the
hydroelectric dams on salmon rivers; they cause many problems
for downstream salmon habitat. This river drains into three
lakes that have major salmon spawning areas and this proposed
dam and hydro could have a very negative effect on their
habitat.
4:02:19 PM
MICHAEL HOFFMAN, representing himself, Bethel, Alaska opposed SB
32. He had been born and raised in the Kuskokwim region and so
did his father and grandfather. He said the Chikuminuk region is
one of the last true wilderness areas in the State of Alaska and
even thinking about putting a dam up when most of the states in
the Lower 48 are tearing them down doesn't make any sense and to
believe that if this dam is built that it would provide much
needed energy to a region the size of the state of Oregon is
unsupported and misguided. Supplying energy to about 14 towns
this project would not be an economic project for the state to
pay for. The environmental impact would be devastating not only
to the depth and the temperature of the water, which have a
negative effect on the sockeye salmon spawning down below but on
the moose and caribou that people in the area rely on for
subsistence. He supported using more solar and wind energy.
4:04:45 PM
ROBERT BEANS, Board Member, Calista Corporation, Anchorage,
Alaska, supported SB 32 from the standpoint of quality of life.
He put in eight years as law enforcement in this region and in
that time he saw people without hope, and it seems like it gets
more so every time. This energy project would give them some
hope. Wind energy costs over $15,000 per kilowatt hour just to
get the equipment in. It would take 30 or 40 years to recoup
that cost and none of the corporations have the money to pay for
it up front.
4:08:47 PM
CODY LARSON, representing himself, Dillingham, Alaska opposed SB
32. He said he was proud the state and its history. He said we
should honor the elected officials who had the foresight to
create a solid management plan who made the rules for the park
to remain pristine and in wilderness. If those rules don't allow
the feasibility study, he opposed SB 31 as well as Amendment 1
that was originally denied by the Division of Parks and
Recreation.
4:10:32 PM
BING SANTAMOUR, representing herself, Bethel, Alaska, opposed SB
32, because of how it would destroy her subsistence way of life
that she has depended on forever as well as those of her
children and grandchildren. She would rather keep eating of
nature's bounty than to have a project put in that would destroy
the food source that state residents of the area have come to
depend on.
4:13:18 PM
CHAIR MICCICHE, finding no further comments, closed public
testimony and asked Mr. Ellis why the original study was denied.
4:13:56 PM
BEN ELLIS, Director, Division of Parks and Outdoor Recreation,
Department of Natural Resources, Anchorage, Alaska, answered
that the Wood-Tikchik State Park is a legislatively designated
area and the legislature sets out the parameters for what can
and cannot happen within it. Chikuminuk Lake is not listed with
Grant and Elva at the present time, so that development and
operation of a hydroelectric site would be incompatible under
the present legislation. So the part of the permits that dealt
with development of a hydroelectric project, such as seismic,
were denied where other permits which dealt with information
gathering of a general nature, animal movements, stream gauges
and flow, and fish migration, were permitted.
CHAIR MICCICHE asked if it would be possible to do the studies
without the higher impact activities.
MR. ELLIS answered that he understood that Nuvista was no longer
using motorized craft on Chikuminuk Lake, but he didn't know
about the other activities.
4:15:50 PM
SENATOR BISHOP asked if helicopters are prohibited in the park.
MR. ELLIS answered that they could be permitted under a special
use permit and that the flight pattern has to be approved
through the director's office.
4:16:34 PM
SENATOR GIESSEL said she knew she was expressing the feelings of
the entire committee when Mr. Robert Beans shared that he had
lost his son and extended her condolences. She then moved to
report CSSB 32 (CRA), version 28-LS311\A.2 from committee to the
next committee of referral with individual recommendations and
attached fiscal note(s). There were no objections, and it was so
ordered.
4:17:50 PM
CHAIR MICCICHE said these are difficult decisions, but the
reality of it is there isn't a source of energy that doesn't
have a benefit and some impacts. He struggled with the bill
originally, but with the amendment it allows a feasibility study
to determine if further discussion is even warranted. If the
studies are favorable, it begins that entire process of
proceeding cautiously and responsible through permitting.
4:19:00 PM
There being no further business to come before the Senate
Community and Regional Affairs Committee, Chair Micciche
adjourned the meeting at 4:19 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 32 - Opposition email - Jonathan Friedman - 2-10-13.PDF |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |
| SB 32 - Opposition email - Patti Berkhahn 2-9-13.PDF |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |
| SB 32 - Dan Dunaway -additional information - Part 1.PDF |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |
| Dan Dunaway -Attachment - Special Park Use Permit-LAS 28479 - Part 2.pdf |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |
| Dan Dunaway - Attachment A Public Comments LAS 28479-Nuvista - Part 3.pdf |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |
| SB 32 Amendment #1.PDF |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |
| SB 32-Fiscal Note-2-2-13.pdf |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |
| SB 32 - Opposition letter - Tim Troll 2-12-13.pdf |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |
| SB 32 - Opposition Letter -Myron Angstman 2-12-13.pdf |
SCRA 2/12/2013 3:30:00 PM |
SB 32 |