Legislature(2023 - 2024)BARNES 124

02/08/2024 10:15 AM House ENERGY

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10:16:40 AM Start
10:18:00 AM Presentation(s): Eklutna Hydroelectric Project and Fish and Wildlife Program
11:55:33 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Eklutna Hydroelectric Project TELECONFERENCED
Fish and Wildlife Program by Samantha Owen,
Senior Regulatory Consultant, McMillen, Inc.
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                        February 8, 2024                                                                                        
                           10:16 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative George Rauscher, Chair                                                                                           
Representative Tom McKay                                                                                                        
Representative Thomas Baker                                                                                                     
Representative Stanley Wright                                                                                                   
Representative Mike Prax                                                                                                        
Representative Calvin Schrage                                                                                                   
Representative Jennie Armstrong                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S): EKLUTNA HYDROELECTRIC PROJECT AND FISH AND                                                                     
WILDLIFE PROGRAM                                                                                                                
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SAMANTHA OWEN, Senior Regulatory Consultant                                                                                     
McMillen, Inc.                                                                                                                  
Seattle, Washington                                                                                                             
POSITION STATEMENT:  Gave the Eklutna Hydroelectric Project and                                                               
Fish and Wildlife Program presentation.                                                                                         
                                                                                                                                
JULIE HASQUET, Sr. Manager                                                                                                      
Corporate Communications                                                                                                        
Chugach Electric Association                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Responded to questions and provided                                                                      
additional information during the Eklutna Hydroelectric Project                                                                 
and Fish and Wildlife Program presentation.                                                                                     
                                                                                                                                
TONY ZELLERS, Chief Operating Officer                                                                                           
Matanuska Electric Association, Inc.                                                                                            
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During the  Eklutna Hydroelectric  Project                                                             
and Fish and Wildlife Program  presentation, testified in support                                                               
of the selected project alternative.                                                                                            
                                                                                                                                
ANDREW LAUGHLIN, Chief Operating Officer                                                                                        
Chugach Electric Association                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During the  Eklutna Hydroelectric  Project                                                             
and Fish and Wildlife Program  presentation, testified in support                                                               
of the selected project alternative.                                                                                            
                                                                                                                                
EMILY COHEN, representing self                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During the  Eklutna Hydroelectric  Project                                                             
and Fish and Wildlife Program  presentation, testified in support                                                               
of the dam removal project alternative.                                                                                         
                                                                                                                                
BRENDA HEWITT, Tribal Administrator                                                                                             
Native Village of Eklutna                                                                                                       
Eklutna, Alaska                                                                                                                 
POSITION  STATEMENT:   During the  Eklutna Hydroelectric  Project                                                             
and  Fish   and  Wildlife  Program  presentation,   testified  in                                                               
opposition to the  selected project alternative and  spoke on the                                                               
1991 agreement.                                                                                                                 
                                                                                                                                
JULIAN RAMIREZ, Salmon and Clean Water Organizer                                                                                
The Alaska Center                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During the  Eklutna Hydroelectric  Project                                                             
and Fish and Wildlife Program  presentation, testified in support                                                               
of the full restoration of the Eklutna River.                                                                                   
                                                                                                                                
CHENNERY FIFE, Southcentral Alaska Engagement Manager                                                                           
Trout unlimited                                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During the  Eklutna Hydroelectric  Project                                                             
and Fish and Wildlife Program  presentation, testified in support                                                               
of the dam removal project alternative.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:16:40 AM                                                                                                                   
                                                                                                                                
CHAIR  RAUSCHER  called the  House  Special  Committee on  Energy                                                             
meeting to  order at  10:16 a.m.   Representatives  McKay, Baker,                                                               
Prax, Schrage, Armstrong,  and Rauscher were present  at the call                                                               
to order.   Representative Wright  arrived as the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
^PRESENTATION(s):  Eklutna  Hydroelectric  Project and  Fish  and                                                               
Wildlife Program                                                                                                                
  PRESENTATION(s): Eklutna Hydroelectric Project and Fish and                                                               
                        Wildlife Program                                                                                    
                                                                                                                                
10:18:00 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER  announced that the  only order of  business would                                                               
be a presentation  on the Eklutna Hydroelectric  Project and Fish                                                               
and Wildlife Program.                                                                                                           
                                                                                                                                
10:18:52 AM                                                                                                                   
                                                                                                                                
SAMANTHA  OWEN,  Senior  Regulatory Consultant,  McMillen,  Inc.,                                                               
began  a PowerPoint  presentation  on  the Eklutna  Hydroelectric                                                               
Project and Fish and Wildlife  Program [hard copy included in the                                                               
committee packet], with slide 1,  which read as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     -The Eklutna Watershed provides a variety of benefits                                                                    
     to the community:                                                                                                          
   •      Eklutna Lake provides 90% of Anchorage's Public                                                                       
      water supply. [image of people drinking from an AWWU                                                                      
     portable water station.]                                                                                                   
   •      Eklutna Lake functions as a battery, storing                                                                          
        spring and summer runoff to provide power during                                                                        
     winter. [image of Eklutna Lake dam at head of river]                                                                       
   •      Eklutna Lake, located within Chugach State4 Park,                                                                     
        is a popular spot for a variety of recreational                                                                         
         opportunities. (image of person riding a bike                                                                          
     alongside Eklutna Lake.)                                                                                                   
                                                                                                                                
MS.  OWEN  moved  forward  to  slide 2,  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     -Eklutna Hydroelectric Project                                                                                           
   • Owned and operated by Chugach Electric, Matanuska                                                                          
     Electric, and the Municipality of Anchorage.                                                                               
   • Provides 24% of Chugach's renewable energy, and 45% of                                                                     
     MEA's renewable energy.                                                                                                    
   • Maximized during a cold spell or potential gas supply                                                                      
     emergency.                                                                                                                 
   • Offsets approximately 86,000 tons of carbon each year.                                                                     
   • Lowest-cost energy in Southcentral Alaska.                                                                                 
   • Could be used to regulate other future renewables like                                                                     
     wind and solar.                                                                                                            
                                                                                                                                
MS. OWEN explained what percent  of energy generation the current                                                               
dam contributes to Chugach Electric,  Matanuska Electric, and the                                                               
Municipality of  Anchorage, noting  that it  mainly serves  as an                                                               
emergency  relief system  in the  case of  a gas  shortage.   She                                                               
moved to  slide 3, which  showed a map  of the Eklutna  River and                                                               
surrounding  area and  how it  relates to  the project.   In  the                                                               
lower  left corner,  a larger  map of  the Cook  Inlet Region  of                                                               
Southcentral  Alaska  is  displayed  to show  exactly  where  the                                                               
project is  located.   In the  upper right corner,  a map  key is                                                               
displayed.    She  explained   the  key,  highlighting  important                                                               
places, parts  of the river,  infrastructure, and the  history of                                                               
the Eklutna River  dam, from the initial dam's  construction to a                                                               
lower dam's removal.                                                                                                            
                                                                                                                                
10:24:11 AM                                                                                                                   
                                                                                                                                
MS.  OWEN moved  to  slide  4, which  read  as follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     -Reservoir Operations                                                                                                    
   • Relatively consistent power generation year- round.                                                                        
   • In the spring and summer, the glacier is melting, and                                                                      
     inflows exceed outflows, so the lake level increases.                                                                      
   • In the fall and winter, the glacier stops melting, and                                                                     
     outflows exceed inflows, so the lake level decreases.                                                                      
   • The intake is at El. 793 feet.                                                                                             
   • The minimum regulated lake level is El. 814 feet.                                                                          
   • The spillway crest is at El. 871                                                                                           
                                                                                                                                
MS. OWEN said the slide's graph  showed how water levels rise and                                                               
fall  each   year,  with  different  colored   lines  to  display                                                               
different  years.     She  explained  how  the   water  level  is                                                               
influenced by yearly  snow/glacial melt and rainfall,  as well as                                                               
the minimum lake level needed to run the current dam.                                                                           
                                                                                                                                
10:26:00 AM                                                                                                                   
                                                                                                                                
MS. OWEN  moved on to  slide 5,  which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     -Low Lake Levels                                                                                                         
   • The outlet of Eklutna Lake is at El.860 feet.                                                                              
   • The lake  is below  this elevation for  approximately 9                                                                    
     months every year (winter, spring, summer).                                                                                
   • During   that   time,   the   lake   is   hydraulically                                                                    
      disconnected from the dam, and a pond forms between                                                                       
     the dam and the lake.                                                                                                      
                                                                                                                                
MS. OWEN said the slide contained  an image of an aerial photo of                                                               
the   headwaters   of  the   Eklutna   River   in  late   spring,                                                               
demonstrating the  lowest water levels  of the year,  with arrows                                                               
to point out specific areas of  the image, such Eklutna Lake, the                                                               
pond above  the dam, and Eklutna  Dam itself.  She  described the                                                               
image  and explained  how one  of the  biggest challenges  of the                                                               
Eklutna Hydroelectric Project was the low water levels.                                                                         
                                                                                                                                
10:27:33 AM                                                                                                                   
                                                                                                                                
MS. OWEN  moved on to  slide 6,  which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     -Development in the Eklutna Watershed                                                                                    
   • 1914-U.S.  Congress  authorized   construction  of  the                                                                    
     Alaska Railroad                                                                                                            
   • 1929-Private  Company  constructed first  hydroelectric                                                                    
     project on the Eklutna River                                                                                               
   • 1935-Palmer Highway constructed                                                                                            
   • 1955-Federal   Government  finished   constructing  the                                                                    
     Eklutna Hydroelectric Project                                                                                              
   • 1961-U.S. Army  started construction of a  road Eklutna                                                                    
     Lake (now the lakeside trail)                                                                                              
   • 1965-Eklutna Dam replaced after earthquake                                                                                 
   • 1970-Chucagh  State   Park  established   and  Railroad                                                                    
     begins gravel mining                                                                                                       
   • 1975-New Glenn Highway Constructed                                                                                         
   • 1988-Eklutna Water Project constructed                                                                                     
   • 1989-Purchase Agreement signed                                                                                             
   • 1991-Fish and Wildlife Agreement signed                                                                                    
   • 1995-U.S.  Congress  authorized  sale  of  the  Eklutna                                                                    
     Hydroelectric Project                                                                                                      
   • 1997-Finalized sale  of the Project to  the three local                                                                    
     utilities (Transaction date)                                                                                               
   • 1998-ADFG started stocking Eklutna Tailrace                                                                                
   • 2016-Old Glenn Highway bridge was replaced                                                                                 
   • 2018-Lower dam removed by The Conservation Fund,                                                                           
     Eklutna, Inc, and the Native Village of Eklutna                                                                            
                                                                                                                                
MS. OWEN  Walked through the  history of the  Eklutna Watershed's                                                               
development, particularly  how each event relates  to one another                                                               
and how it affects the project today.                                                                                           
                                                                                                                                
10:31:14 AM                                                                                                                   
                                                                                                                                
MS. OWEN  discussed the  "1991 Fish  and Wildlife  Agreement," on                                                               
slide  7, the  details of  which are  on slide  8, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     -Study Program must:                                                                                                     
   1. Examine and quantify, if possible, the impacts of fish                                                                    
     and wildlife from the federal Eklutna project.                                                                             
   2. Examine and develop proposals for the protection,                                                                         
        mitigation, and enhancement of fish and wildlife                                                                        
     affected by the project.                                                                                                   
   3. Consider the impact of fish and wildlife measures on                                                                      
        electric rate payers, municipal water utilities,                                                                        
     recreational users, and adjacent land use...                                                                               
   4. As well as available means to mitigate these impacts                                                                      
                                                                                                                                
MS. OWEN  explained a  4-step process outlined  by the  1991 Fish                                                               
and  Wildlife agreement  to  determine the  impacts  to fish  and                                                               
wildlife.  She  moved to slide 9, which  explained the governor's                                                               
obligations/considerations, and  which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     -Governor must give equal consideration to:                                                                              
   1. Purposes of efficient and economical power production                                                                     
   2. Energy conservation                                                                                                       
   3. Protection, mitigation of damage to, and enhancement                                                                      
     of fish and wildlife                                                                                                       
   4. Protection of recreation opportunities                                                                                    
   5. Municipal water supplies                                                                                                  
   6. Preservation of other aspects of environmental quality                                                                    
   7. Other beneficial public uses                                                                                              
   8. Requirements of State law                                                                                                 
                                                                                                                                
MS.  OWEN  moved  to  slide 10,  titled  "Study  Results,"  which                                                               
displayed a series of images that  explain the salmon study - its                                                               
process and  results.  She  explained the  methodology, timeline,                                                               
and stakeholders  that were  involved in  the 5-year  long salmon                                                               
study.   She said  that McMillen,  Inc. studied  "everything they                                                               
could think of," including fish  counts and habitat, sediment and                                                               
spawning grounds,  wetlands and wildlife, a  recreation survey, a                                                               
simulated operations module, and finally  a lot of engineering to                                                               
outline all of the potential designs.                                                                                           
                                                                                                                                
MS. OWEN mentioned slide 11,  titled "Alternatives Analysis," and                                                               
moved  on to  slide  12, titled  "Stakeholder Engagement,"  which                                                             
displayed the  logos, emblems,  and seals  of various  public and                                                               
private  entities involved  in the  Eklutna Hydro  Project.   She                                                               
moved to  slide 13, which  read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     -Alternatives Analysis                                                                                                   
   • Series of 5 meetings                                                                                                       
   • April through August 2023                                                                                                  
   • Iterative Process                                                                                                          
   o Participants submitted comprehensive alternatives                                                                          
   o Each alternative was evaluated using models developed                                                                      
   o Participants has multiple opportunities to revise                                                                          
     alternatives based on modeling results                                                                                     
   o Revised alternatives were reevaluated                                                                                      
                                                                                                                                
MS.  OWEN, responding  to questions  from  Chair Rauscher,  noted                                                               
that there  are a  couple of different  species in  Eklutna Lake,                                                               
but most  commonly kokanee,  which are  unique to  other kokanee.                                                               
The  lake is  currently  not  stocked, but  there  were a  couple                                                               
instances in  the '80s and '90s  where some fish were  stocked in                                                               
the lake  by the Alaska Department  of Fish & Game  (ADF&G).  The                                                               
lake  is glacially  fed from  Eklutna Glacier  and has  extremely                                                               
high sediment  levels and  turbidity, which she  cited as  one of                                                               
the reasons for the lack of primary production in the lake.                                                                     
                                                                                                                                
10:38:08 AM                                                                                                                   
                                                                                                                                
MS. OWEN  continued her presentation  on slide 14, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Alternatives Analysis 14                                                                                                   
     • Series of 5 Meetings                                                                                                     
     • April through August 2023                                                                                                
     • Iterative Process                                                                                                        
   o •Participants submitted comprehensive alternatives                                                                         
   o •Each alternative was evaluated using the models                                                                           
     developed                                                                                                                  
   o •Participants had multiple opportunities to revise                                                                         
     alternatives based on modeling results                                                                                     
   o •Revised alternatives were reevaluated                                                                                     
                                                                                                                                
MS. OWEN explained how each  project alternative was studied, how                                                               
models  were  developed,  and  how  the  models  of  the  project                                                               
alternatives were revised throughout the analysis.                                                                              
                                                                                                                                
10:39:26 AM                                                                                                                   
                                                                                                                                
MS.  OWEN moved  to slide  15, which  showed a  graph of  a cost-                                                               
benefit  analysis   on  the  project.     She  discussed  project                                                               
alternatives, who is associated  with each alternative, and three                                                               
categories of cost-breakdown  shown on the graph.   She said that                                                               
less  water  for  generation  means   more  money  spent  on  gas                                                               
generation,  as well  as  explained the  1991  Fish and  Wildlife                                                               
Agreement's requirements as they relate to cost.                                                                                
                                                                                                                                
10:42:57 AM                                                                                                                   
                                                                                                                                
MS. OWEN moved  to slide 16, which showed a  table explaining the                                                               
benefits  of the  preferred  alternatives in  terms  of acres  of                                                               
habitat gained.   She  then skipped  to slide  18, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     What's Included in the Draft Program?                                                                                      
      •Year-Round Base Flows                                                                                                    
      •Periodic Channel Maintenance Flows                                                                                       
      •New AWWU Bridges                                                                                                         
      •Monitoring and Adaptive Management Plan                                                                                  
                                                                                                                                
MS. OWEN  explained that the  document had studies  of year-round                                                               
base  flows, periodic  channel maintenance  flows, new  Anchorage                                                               
Water  and  Wastewater  Utility bridges,  and  a  monitoring  and                                                               
adaptive management  plan for  the yearly  water flow  and salmon                                                               
runs.                                                                                                                           
                                                                                                                                
MS. OWEN moved on to slide  19, which explained the proposals and                                                               
how  the   project  owners  will   be  utilizing   existing  AWWU                                                               
infrastructure  to  provide  habitat  in  certain  areas  of  the                                                               
tunnel.   She  then showed  slide  20, which  explained how  much                                                               
water would need  to be released (in cubic feet  per second) into                                                               
the  river in  order for  the  salmon to  maintain their  maximum                                                               
salmon  habitat, while  not decreasing  salmon habitat  or taking                                                               
too much water away from the lake.                                                                                              
                                                                                                                                
10:50:36 AM                                                                                                                   
                                                                                                                                
MS. OWEN, in response to  Representative Schrage, said that there                                                               
is no  real quantification  or study of  the salmon  species that                                                               
historically spawned in the Eklutna  River, other than a study on                                                               
sediment  deposits.    Along  with   that,  she  said,  there  is                                                               
traditional knowledge from the Native Village of Eklutna.                                                                       
                                                                                                                                
10:54:08 AM                                                                                                                   
                                                                                                                                
MS.  OWEN continued  on  slide  21, which  showed  a winter  flow                                                               
analysis graph.   She said the  idea is to promote  favorable ice                                                               
conditions  for salmon  to  have proper  rearing  habitat in  the                                                               
winter.   She  explained what  types  of ice  are beneficial  and                                                               
harmful to salmon  and how they could influence  the formation of                                                               
ice with controlled  water releases.  She continued  to slide 22,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Periodic  Channel  Maintenance   Flows  will  Maintains                                                                    
     Spawning Habitat over Time                                                                                                 
     • Automate the existing drainage outlet gate                                                                               
     • 220 cfs in 3 out of 10 years                                                                                             
     • Will occur in the fall when the lake is high                                                                             
     •  Shaped   to  prevent   any  fish   stranding  during                                                                    
     downramping                                                                                                                
     The  slide  also  displayed a  graph  of  how  periodic                                                                    
     releases  of  water  would  work  for  the  benefit  of                                                                    
     salmon.  She explained  that  releases  of water  would                                                                    
     occur during  the fall, that  releases would  clean the                                                                    
     gravel, and that  it would come from  the existing gate                                                                    
     at the top of the river.                                                                                                   
                                                                                                                                
MS. OWEN  moved on to  slide 23, "Allows for  Adaptive Management                                                               
to Improve  Habitat Over Time,"  which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     •Committee includes  Parties to the 1991  Agreement and                                                                    
     NVE                                                                                                                        
     •Water Budgets                                                                                                             
     •Instream Flows  24,280 AF ± Banked Water                                                                                  
     •Channel Maintenance Flows    2,913 AF for each 10-Year                                                                    
     Period                                                                                                                     
     •Monitoring                                                                                                                
     •Flow Meters                                                                                                               
     •Funding Commitment for Other Monitoring Efforts                                                                           
     •Conduct Adult Salmon Surveys                                                                                              
     •Record Winter Water Temperatures in Rearing Reaches                                                                       
     •Measure Sediment Grain Size in Spawning Reaches                                                                           
     •Assess Straying Rate from the Tailrace to the River                                                                       
     •Adaptive Management                                                                                                       
     •Based on Monitoring Results                                                                                               
     •Committee can Request Alternative Flows within Water                                                                      
     Budgets                                                                                                                    
                                                                                                                                
MS. OWEN  explained adaptive habitat management  and proposals to                                                               
begin a  committee to oversee  the management and  maintenance of                                                               
the salmon habitat in the Eklutna River.                                                                                        
                                                                                                                                
11:00:52 AM                                                                                                                   
                                                                                                                                
MS. OWEN continued  to slide 24, which read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
      Includes Engineering Measures to Protect the Public                                                                       
     Water Supply                                                                                                               
     •Close coordination with AWWU during design                                                                                
     •Will not impact AWWU's water rights                                                                                       
     •Construction of 8 new bridges                                                                                             
     •New Isolation Valve Structure                                                                                             
     •Replacement of Outdated Communication System                                                                              
     •New Redundant Flow Meters                                                                                                 
     •These improvements total $7.3M                                                                                            
                                                                                                                                
MS. OWEN  described engineering measures  to be taken  to protect                                                               
the public water supply, including  the construction of eight new                                                               
bridges,  use of  isolation  valves, and  the  replacement of  an                                                               
outdated communications structure, among  other things.  Ms. Owen                                                               
mentioned that "a bunch of  engineering measures were included in                                                               
our design  to make sure we  are addressing any and  all of their                                                               
[AWWU's] concerns."                                                                                                             
                                                                                                                                
MS. OWEN,  in response  to a series  of questions,  answered that                                                               
the cost is included in  the project owner's program; the project                                                               
owners would  be paying the  $7.3 million,  not AWWU.   She noted                                                               
that the Municipality of Anchorage  is one of the project owners,                                                               
that they are in one  of various cost-sharing agreements for this                                                               
project.   She advised that  the Anchorage Assembly  itself isn't                                                               
an owner  but will pay for  some of the costs,  likely through an                                                               
appropriation of funds.                                                                                                         
                                                                                                                                
11:05:03 AM                                                                                                                   
                                                                                                                                
JULIE  HASQUET, Sr.  Manager,  Corporate Communications,  Chugach                                                               
Electric Association,  confirmed there  is a taxpayer  impact and                                                               
the Municipality of Anchorage will pay a portion of the bill.                                                                   
                                                                                                                                
MS. OWENS continued her presentation  on slide 25, which showed a                                                               
table of  types of  costs and  their associated  value.   It also                                                               
discussed  who  is  paying  for  what  and  how  much  the  total                                                               
expenditure  of the  project would  be after  each cost  type was                                                               
taken into account.                                                                                                             
                                                                                                                                
MS. OWENS moved  on to slide 26, which read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     What's Not Included in the Draft Program?                                                                                  
     •Higher Year-Round  Flow Releases from the  AWWU Portal                                                                    
     Valve (at river mile 11)                                                                                                   
     •Incremental gains  in habitat are minor  when compared                                                                    
     to increased costs                                                                                                         
     •Year-Round Flow  Releases from  the AWWU  Pipeline (at                                                                    
     river mile 5.5)                                                                                                            
     •Significantly  reduced habitat  gains  for almost  the                                                                    
     same cost as the AWWU Portal Valve alternative                                                                             
     •Year-Round Flow Releases from  a New Bypass Tunnel (at                                                                    
     river mile 11.5)                                                                                                           
     •Significantly  increased  costs  for almost  the  same                                                                    
     habitat gains as the AWWU Portal Valve alternative                                                                         
     •Year-Round Flow  Releases from  Eklutna Dam  (at river                                                                    
     mile 12)                                                                                                                   
     •Requires the power  plant to be shut  down through the                                                                    
     winter to keep the reservoir high                                                                                          
     •Replacement Dam (at river mile 12)                                                                                        
     •Cost  prohibitive  and   decreases  reservoir  storage                                                                    
     capacity by 40%                                                                                                            
     •Fish Passage                                                                                                              
     •Concerns   regarding   viability,   effectiveness   of                                                                    
     downstream  passage,  presence  of IHN,  and  potential                                                                    
     impacts to water quality                                                                                                   
                                                                                                                                
MS. OWEN  explained what  was not included  in the  draft program                                                               
and why.   She touched on why there weren't  higher flow releases                                                               
at  different  parts of  the  watershed,  why a  replacement  dam                                                               
wouldn't be  viable, and why  there aren't more  proposed options                                                               
for fish passages.                                                                                                              
                                                                                                                                
11:13:38 AM                                                                                                                   
                                                                                                                                
MS. OWEN  moved on to slide  27, which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Summary                                                                                                                    
     •Benefits all  4 species  of salmon  currently spawning                                                                    
     in the Eklutna River                                                                                                       
     •Provides habitat in 11 out of 12 miles of the river                                                                       
     •Achieves  96.5% of  max spawning  habitat for  Chinook                                                                    
     below the AWWU Portal Valve (99.6% for coho)                                                                               
     •Allows  for  adaptive  management to  improve  habitat                                                                    
     over time                                                                                                                  
     •Maintains  Eklutna  hydro  as  a  year-round  resource                                                                    
     (especially during cold spells)                                                                                            
     •Protects the public water supply                                                                                          
     •Indirectly benefits wildlife                                                                                              
     •Avoids impacts to recreation                                                                                              
     •Minimizes costs to rate payers and taxpayers                                                                              
     •Minimizes increases in carbon emissions                                                                                   
     •Achieves an equitable balance  of costs, benefits, and                                                                    
     impacts                                                                                                                    
                                                                                                                                
MS. OWEN  summarized the proposed  project draft that  was chosen                                                               
along with its benefits and  compromises.  She explained that the                                                               
chosen  project  draft  provides   the  most  benefits  to  fish,                                                               
wildlife,  and recreation,  while  providing the  most amount  of                                                               
generation and the smallest burden on rate payers and taxpayers.                                                                
                                                                                                                                
MS. OWEN moved on to slide 28, which read as follows [original                                                                  
punctuation provided]:                                                                                                          
                                                                                                                                
     Comments on the Draft Program                                                                                              
     •The Project Owners submitted the  Draft Program to the                                                                    
     Signatories  to  the  1991  Agreement  and  the  Native                                                                    
     Village of Eklutna  on October 27, 2023  for review and                                                                    
     comment                                                                                                                    
     •All  comment  letters  are available  on  the  Project                                                                    
     website (www.eklutnahydro.com)                                                                                             
     •The  Project Owners  met with  the Signatories  to the                                                                    
     1991  Agreement and  the Native  Village of  Eklutna in                                                                    
     December 2023 to attempt to resolve differences                                                                            
     •Discussions centered around                                                                                               
                                                                                                                                
     • Flow Release Location                                                                                                    
     • Flow Regime and Water Budget                                                                                             
     • Water Banking                                                                                                            
     • Physical Habitat Manipulation                                                                                            
     • Fixed Wheel Gate                                                                                                         
     • Fish Passage                                                                                                             
     • Climate Change                                                                                                           
     • Lakeside Trail Repairs                                                                                                   
     • Monitoring Efforts                                                                                                       
     • Success Criteria                                                                                                         
     • Adaptive Management Committee                                                                                            
     • Dam Removal                                                                                                              
                                                                                                                                
MS. OWEN  explained slide 28,  which touched on comments  sent in                                                               
about  the  draft program  proposal.    She emphasized  that  the                                                               
project managers met  with the Native Village of  Eklutna and the                                                               
signatories  in December  2023,  and  those discussions  centered                                                               
around fish passage and flow release management.                                                                                
                                                                                                                                
MS.  OWEN discussed  slide 29,  which read  as follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Dam Removal                                                                                                                
     The Native  Village of Eklutna  has proposed  to remove                                                                    
     the  dam/project in  10 years  after replacing  it with                                                                    
     another renewable energy source                                                                                            
     •Wind,  solar,  and  run-of-river hydro  are  NOT  firm                                                                    
     energy sources                                                                                                             
     •Storage  hydro  is  a  firm  energy  source,  however                                                                     
     identifying,   studying,   licensing,  designing,   and                                                                    
     constructing  new hydro  project(s)  of the  equivalent                                                                    
     size will likely                                                                                                           
     •Take more than 10 years                                                                                                   
     •Have new environmental impacts                                                                                            
     •Be very expensive                                                                                                         
     •This would  also set back  the long-term  timeline for                                                                    
     reaching the utilities overall renewable energy goals                                                                      
                                                                                                                                
MS.  OWEN  highlighted  that  at first,  the  Native  Village  of                                                               
Eklutna's  preferred alternative  at the  end of  the alternative                                                               
analysis  study was  the  replacement dam  option,  but that  has                                                               
since changed to the dam removal  option, as of a letter received                                                               
in November, and replacing it with  a new renewable project in 10                                                               
years.  She explained the implications of dam removal.                                                                          
                                                                                                                                
11:18:18 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SCHRAGE observed  that "we"  have known  this has                                                               
been an issue  since 1991 and, thus, have had  more than 30 years                                                               
to plan for an alternative.                                                                                                     
                                                                                                                                
MS. OWEN,  in response to  several questions  from Representative                                                               
Schrage,  explained   that  the  original  intent   of  the  1991                                                               
agreement  was to  mitigate the  existing project,  and that  she                                                               
does  not  believe  that  the   project  owner's  intent  of  the                                                               
agreement was  to remove  the project  or build a  new one.   She                                                               
said  that  sockeye  salmon are  mentioned  specifically  in  the                                                               
divestiture summer report that went  to Congress in 1992, but the                                                               
1991  agreement  itself  does not  specify  a  specific  outcome,                                                               
although many different options were evaluated that would                                                                       
achieve the same goal of mitigating impact to sockeye salmon.                                                                   
                                                                                                                                
CHAIR RAUSCHER handed the gavel to Representative McKay.                                                                        
                                                                                                                                
11:23:02 AM                                                                                                                   
                                                                                                                                
MS. OWEN continued the presentation on slide 30, which read as                                                                  
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Dam Removal (cont.)                                                                                                        
     •Without  the  dam  or  hydro  project,  flows  in  the                                                                    
     Eklutna River would be                                                                                                     
     •1200 cfs every July/August                                                                                                
       000 cfs every few years                                                                                                  
     •4000 cfs every 10 years                                                                                                   
     •AWWU's pipeline  is buried for 6  miles under/adjacent                                                                    
     to the riverbed                                                                                                            
     •Significant   scour  impacts   to  the   water  supply                                                                    
     pipeline would be likely                                                                                                   
     •Hydro project owners  legally cannot negatively impact                                                                    
     the public water supply                                                                                                    
     •Significant  impacts to  the  downstream railroad  and                                                                    
     highway bridges would also be likely                                                                                       
     •The  Project Owners  are  conducting  a more  detailed                                                                    
     assessment  of dam  removal which  will be  included in                                                                    
     the Proposed Final Program                                                                                                 
     30                                                                                                                         
                                                                                                                                
MS. OWEN  elaborated on  the dam  removal and  its impacts.   She                                                               
illustrated the differences  in the river's flow  regime, as well                                                               
as emphasized that  whatever generation is lost would  have to be                                                               
made up for by a different sector of energy.                                                                                    
                                                                                                                                
11:25:40 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MCKAY handed the gavel back to Chair Rauscher.                                                                   
                                                                                                                                
MS. OWENS continued on slide 31, which read as follows [original                                                                
punctuation provided]:                                                                                                          
                                                                                                                                
     January 2024 Cold Snap                                                                                                     
     •Majority  of  generation  in  southcentral  Alaska  is                                                                    
     natural gas.                                                                                                               
     •However,  during a  cold snap,  natural gas  is needed                                                                    
     for heating.                                                                                                               
      •During the recent cold snap, Enstar requested that                                                                       
    the   utilities   maximize    hydro   to   reduce   gas                                                                     
     consumption                                                                                                                
     •So the utilities ran Eklutna (and other hydro) at max                                                                     
     capacity                                                                                                                   
     •On December 30th  started at 13% hydro for CEA/MEA                                                                        
     •By January 1st  increased to 23% hydro for CEA/MEA                                                                        
                                                                                                                                
11:25:45 AM                                                                                                                   
                                                                                                                                
TONY  ZELLERS,   Chief  Operating  Officer,   Matanuska  Electric                                                               
Association,  Inc.,  spoke  on   how  cold  snaps  affect  energy                                                               
infrastructure, specifically hydro  infrastructure.  He mentioned                                                               
the  recent  cold   snap  in  January  2024,   and  how  valuable                                                               
hydroelectric power generation is during cold snaps.                                                                            
                                                                                                                                
11:27:57 AM                                                                                                                   
                                                                                                                                
ANDREW  LAUGHLIN,  Chief   Operating  Officer,  Chugach  Electric                                                               
Association, spoke  on how much energy  Chugach Electric receives                                                               
from   hydroelectric  generation,   about  15   percent  of   its                                                               
generation annually.   He  made a point  that during  peak times,                                                               
hydroelectric generation  can make  up to  25 percent  of Chugach                                                               
Electric Association's generation.                                                                                              
                                                                                                                                
11:29:43 AM                                                                                                                   
                                                                                                                                
TONY ZELLERS,  in response to  committee questions,  related that                                                               
how  long  infrastructure  lasts  during an  extended  cold  snap                                                               
depends on  how much water  is in storage.   He said there  is no                                                               
data showing  how many  thousand cubic  feet (Mcf)  would've been                                                               
saved had people reduced their thermostats during the cold snap.                                                                
                                                                                                                                
11:32:11 AM                                                                                                                   
                                                                                                                                
MS. HASQUET  added that  Chugach Electric  follows the  lead with                                                               
Enstar and stays in communication.                                                                                              
                                                                                                                                
11:33:45 AM                                                                                                                   
                                                                                                                                
MS. OWENS  continued to  the final slide,  which read  as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Next Steps                                                                                                                 
     •February 19, 2024  Public comment deadline                                                                                
      •April 2024  Submit Proposed Final Fish and Wildlife                                                                      
     Program to the Governor                                                                                                    
     •60 days for Parties to review and submit comments to                                                                      
     the Governor (May/June)                                                                                                    
                                                                                                                                
     30 days for Project Owners to submit responses to the                                                                      
     Governor (July)                                                                                                            
         •Additional 2 months for Governor to consider                                                                          
     (Aug/Sep)                                                                                                                  
        •October 2, 2024  Deadline for Governor to issue                                                                        
     Final Fish and Wildlife Program                                                                                            
     32                                                                                                                         
                                                                                                                                
MS.  OWEN explained  the public  comment  deadline, the  proposed                                                               
fish and wildlife plan submission  date, and the deadline for the                                                               
governor's decision.                                                                                                            
                                                                                                                                
11:35:08 AM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease at 11:35 a.m.                                                                                
                                                                                                                                
11:35:55 AM                                                                                                                   
                                                                                                                                
CHAIR   RAUSCHER  opened   public   testimony   on  the   Eklutna                                                               
Hydroelectric   Project    and   Fish   and    Wildlife   Program                                                               
presentation.                                                                                                                   
                                                                                                                                
11:36:20 AM                                                                                                                   
                                                                                                                                
EMILY  COHEN,  representing  self,  testified  that  the  project                                                               
alternative  proposed by  the project  owners is  insufficient to                                                               
restore a thriving salmon population  in all parts of the Eklutna                                                               
River, as  well as the  habitat above the dam  in the lake.   She                                                               
said it  would be  meaningful to  have a  thriving salmon  run so                                                               
close to Anchorage.                                                                                                             
                                                                                                                                
11:38:12 AM                                                                                                                   
                                                                                                                                
BRENDA HEWITT,  Tribal Administrator, Native Village  of Eklutna,                                                               
testified that the  1991 Fish and Wildlife Agreement  was kind of                                                               
a promise by the project owners  that 30 years from its inception                                                               
they would look at  ways to mitigate the impact of  the dam.  She                                                               
said that  all of  this work  and research  has been  done behind                                                               
closed doors,  that there has  not been enough  transparency, and                                                               
that  they haven't  listened  to the  Native  Village of  Eklutna                                                               
through their numerous discussions.                                                                                             
                                                                                                                                
11:42:18 AM                                                                                                                   
                                                                                                                                
JULIAN  RAMIREZ, Salmon  and Clean  Water  Organizer, The  Alaska                                                               
Center, testified  that the  entire process  done by  the project                                                               
owners has  failed to include  public opinion and also  failed to                                                               
acknowledge  the benefits  of introducing  another salmon  run in                                                               
Alaska.   He  said  that  it would  have  great  benefits to  the                                                               
commercial  fishing industry,  considering  the dwindling  salmon                                                               
returns across  Alaska.  In  response to Representative  Prax, he                                                               
confirmed  that he  was challenging  the statistics  about salmon                                                               
numbers  and  flow  rates  presented   today.    He  offered  his                                                               
understanding that the numbers are  estimated by a co-author of a                                                               
study that  was previously cited,  the marine nitrogen  study for                                                               
potential based  on lake size,  turnover, and  historical records                                                               
of fish.  He said he would share the data.                                                                                      
                                                                                                                                
11:47:57 AM                                                                                                                   
                                                                                                                                
BRENDA HEWITT,  in response to Representative  Schrage, explained                                                               
that in 1929, no one knew of  the impacts that the dam would have                                                               
on  the fish  in the  river.   She cited  "traditional ecological                                                               
knowledge,"  saying  that  was  the  most  valuable  resource  in                                                               
understanding  the  wild  salmon  runs that  once  populated  the                                                               
Eklutna River.                                                                                                                  
                                                                                                                                
11:50:23 AM                                                                                                                   
                                                                                                                                
CHENNERY  FIFE,  Southcentral  Alaska Engagement  Manager,  Trout                                                               
unlimited, testified  that she thinks  the proposed  project plan                                                               
does not meet  the requirements of the 1991 agreement.   She said                                                               
that it  ignores public comment,  the Native Village  of Eklutna,                                                               
community leaders,  and the late Don  Young.  She said  there are                                                               
better options  for hydroelectric generation that  don't affect a                                                               
salmon run.                                                                                                                     
                                                                                                                                
11:52:28 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  PRAX  indicated  he would  like  the  testifiers'                                                               
remarks in writing.                                                                                                             
                                                                                                                                
REPRESENTATIVE  SCHRAGE asked  whether there  is any  legislative                                                               
involvement  in  this  issue  or  it  is  ultimately  up  to  the                                                               
governor.                                                                                                                       
                                                                                                                                
CHAIR RAUSCHER  remarked that the legislature  has no involvement                                                               
unless it wants to get involved.                                                                                                
                                                                                                                                
11:54:38 AM                                                                                                                   
                                                                                                                                
MS. OWEN clarified that the governor has the final say on the                                                                   
final Fish and Wildlife Program.                                                                                                
                                                                                                                                
11:55:11 AM                                                                                                                   
                                                                                                                                
Chair Rauscher closed public testimony.                                                                                         
                                                                                                                                
11:55:33 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Energy meeting was adjourned at 11:55 a.m.                                                                 

Document Name Date/Time Subjects
2024-2-8 Eklutna Presentation_House Energy Committee.pdf HENE 2/8/2024 10:15:00 AM
Eklutna