HomeMy WebLinkAbout5.2 GrantLk (P-13212) DLA Vl1 InitialStmt 03-27-15 FINALGrant Lake Hydroelectric Project Kenai Hydro, LLC
FERC No. 13212 IS-1 March 2015
BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION
Application for License for Major Project — Unconstructed
1. Kenai Hydro, LLC. (KHL) applies to the Federal Energy Regulatory Commission
(Commission) for an original license for the Grant Lake Hydroelectric Project, FERC No.
13212, as described in the attached exhibits. The following license application has been
prepared in accordance with Chapter 18 of the Code of Federal Regulations (CFR) Section
4.41, License for Major Project, Existing Dam and Section 5.18, Application Content.
2. The location of the Project is:
State: Alaska
County: Kenai Peninsula Borough
Township or Nearby Town: Moose Pass
Streams or other body of water: Grant Lake, Grant Creek
3. The exact name, business address, and telephone number of the applicant are:
Kenai Hydro, LLC
3977 Lake Street
Homer, AK 99603
(907) 283-2375
Mikel Salzetti
Manager of Fuel Supply & Renewable Energy Development
280 Airport Way
Kenai, AK 99611
(907) 283-2375
4. KHL, a wholly owned subsidiary of Homer Electric Association, Inc., is a limited liability
company and is not claiming preference under section 7(a) of the Federal Power Act.
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FERC No. 13212 IS-2 March 2015
5. (i) The statutory or regulatory requirements of the state in which the Project would be
located and that affect the Project as proposed, with respect to bed and banks and to the
appropriation, diversion, and use of water for power purposes, and with respect to the right to
engage in the business of developing, transmitting, and distributing power and in any other
business necessary to accomplish the purposes of the license under the Federal Power Act
are:
a. AS 42.05 - Alaska Public Utilities Regulatory Act
This act outlines the regulations for operating a public utility and defines the
authority of the Regulatory Commission of Alaska ("RCA") along with the basic
rules for submitting and settling issues with the RCA.
b. AS 46.15 - Water Use Act
This act defines the authority of the Department of Environmental Conservation and
sets regulations associated with pollution, hazardous substances and air and water
issues. AS 46.15 specifically describes the regulations associated with the use of
water in Alaska, how to apply and obtain a water right and also defines how priority
is determined
c. 11 AAC 93 - Water Management
These regulations define the procedural aspects of applying for a water right and
detail the inspection of facilities and reporting measures required with the acquisition
and utilization of a water right.
d. AS 16.10.10 - Interference with Salmon Spawning Streams and Waters
These statutes comprehensively address issues associated with spawning anadromous
salmonids in Alaska. Both native, naturally reproducing populations and hatchery
fish are addressed. AS 16.10.10 requires that an entity must obtain a permit or
license from the Alaska Department of Environmental Conservation if they plan to
divert, barricade or obstruct waters used by salmon.
Grant Lake Hydroelectric Project Kenai Hydro, LLC
FERC No. 13212 IS-3 March 2015
e. AS 41.14.870 - Protection of Fish and Game
AS 41.14.870 requires that notification be given to the deputy commissioner of the
Alaska Department of Fish and Game if a hydraulic project may change the natural
flow of a stream.
f. 5 AAC - Fish and Game
This title contains the regulations set forth by the Alaska Department of Fish and
Wildlife and includes everything from habitat issues to guided fishing to subsistence
fishing and more.
g. 11 AAC 58 - Leasing of Lands
This regulation governs the leasing of land belonging to the Alaska Department of
Natural Resources.
h. 11 AAC 95.285-320 - Road Construction
These regulations contain the rules for construction of roads and includes rules to
limit the amount of vegetation impacts and rules governing stream crossings/bridges,
slope ratings and drainage ditches.
(ii) The steps which KHL has taken or plans to take to comply with each of the laws cited
above are:
a. HEA is an electric cooperative organized under the laws of the State of Alaska in
good standing with the Alaska Secretary of State’s Office. HEA was issued
certificate of Public Convenience and Necessity No. 32 on March 11, 1965 (attached
to this Initial Statement). HEA operates and abides by the authority of AS 42.05 and,
as a public utility, is regulated by the Regulatory Commission of Alaska. HEA will
continue to comply with the statutes under AS 42.05 and the regulations and
authority of the Regulatory Commission of Alaska.
b. As this is a new project, KHL will apply for a Certificate of Appropriation of Water
to grant KHL the right to complete the Project as designed for the purposes of
electric power generation at Grant Lake, upon approval of this FERC application.
HEA has a long history and well-established relationship with the Alaska
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FERC No. 13212 IS-4 March 2015
Department of Environmental Conservation and will keep them apprised of the
progress of this Project. A series of management plans have been identified and are
either to be distributed for review between late April and mid-May, or have been
committed to being developed when a license is acquired. Many of these plans
address variables associated with the Water Use Act. These plans include:
Hazardous Materials Containment/Fuel Storage Plan
Spill Prevention, Control and Containment Plan
Operational Compliance Monitoring Plan
c. As this is a new project, HEA will apply for a Certificate of Appropriation of Water
to grant HEA the right to complete the Project as designed for the purposes of
electric power generation at Grant Lake, upon approval of this FERC application.
HEA has a long history and well-established relationship with the Alaska
Department of Environmental Conservation and will keep them apprised of the
progress of this Project.
d. Once a FERC license has been issued to construct the Grant Lake Hydroelectric
Project, KHL will apply for the appropriate permit(s) from the Alaska Department of
Environmental Conservation required of a project diverting water in a creek that
salmon utilize. KHL has involved all State and Federal agencies in the licensing
process and will continue to do so during the filing and license acquisition phases.
At the appropriate time, KHL will collaborate with the Alaska Department of
Environmental Conservation to determine permit needs and application protocol.
e. KHL has undertaken comprehensive engineering feasibility assessment of the
proposed project along with a robust natural resource study program. Results from
these efforts along with collaboration with stakeholders has resulted in a project
design that alters flows in Grant Creek with very little (if any) negative impact to
aquatic resources. That said and since the Project will change the natural flows of
the stream, KHL will notify the deputy commissioner upon approval of this FERC
license application.
f. KHL has worked extensively and in a collaborative manner with the Alaska
Department of Fish and Game to ensure adherence of all rules and regulations
associated with both the natural resource study program and the proposed Project
features. An abundance of effort has been placed on collaborating with all
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FERC No. 13212 IS-5 March 2015
stakeholders at every phase to ensure a robust study methodology and quantitative
results that address potential impacts and address any mitigation and enhancement
options.
g. Upon license acquisition, KHL will collaborate with the Alaska Department of
Natural Resources to appropriately apply for a lease for the requisite land managed
by their agency.
h. KHL will adhere to all best management practices (BMP) associated with the
construction of the Grant Lake Project’s infrastructure, including all roads.
Grant Lake Hydroelectric Project Kenai Hydro, LLC
FERC No. 13212 IS-6 March 2015
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Grant Lake Hydroelectric Project Kenai Hydro, LLC
FERC No. 13212 IS-7 March 2015
Statement Pursuant to 18 C.F.R. § 4.32 (a)
(1) Name and address of every person, citizen, association of citizens, domestic corporation,
municipality, or state that has or intends to obtain and will maintain any proprietary right
necessary to construct, operate, or maintain the Project:
Kenai Hydro, LLC
3977 Lake Street
Homer, AK 99603
(907) 283-2375
(2) Name and address of every county in which any part of the Project, and any Federal facilities
that would be used by the Project would be located:
The Project is located in the Kenai Peninsula Borough, which has the following mailing
address:
Kenai Peninsula Borough
Borough Mayor: Mike Navarre
144 North Binkley Street, Soldotna, Alaska 99669
Lands occupied by the Project include federal lands managed by:
Chugach National Forest
PO Box 21628
Juneau, AK 99802-1628
(3) Name and address of every city, town, or similar local political subdivision in which any part
of the Project, and any Federal facilities that would be used by the Project, would be located:
There are no cities, towns, or subdivisions in which any part of the Project, or any
Federal facilities that would be used by the Project, would be located.
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FERC No. 13212 IS-8 March 2015
(4) Name and address of every city, town, or similar local political subdivision that has a
population of 5,000 or more people and is located within 15 miles of the Project dams:
There are no cities, towns, or subdivisions with population sizes of 5,000 or more within
15 miles of the proposed Project.
(5) Name and address of every irrigation district, drainage district, or similar special purpose
political subdivision in which any part of the Project, and any Federal facilities that would be
used by the Project, would be located:
None.
(6) Name and address of every irrigation district, drainage district, or similar special purpose
political subdivision that owns, operates, maintains, or uses any Project facilities or any
Federal facilities that would be used by the Project:
None.
(7) Name and address of every other political subdivision in the general area of the Project that
there is reason to believe would likely be interested in, or affected by, the application:
None.
(8) Name and address of all Indian tribes that may be affected by the Project:
Chenega Corporation
3000C Street, Suite 301
Anchorage, AK 99503
Chugach Alaska Corporation
3800 Centerpoint Drive, Suite 601
Anchorage, AK 99503
Cook Inlet Region Inc. (CIRI)
PO Box 93330
Anchorage, AK 99509-3330
Grant Lake Hydroelectric Project Kenai Hydro, LLC
FERC No. 13212 IS-9 March 2015
Kenaitze Indian Tribe
PO Box 988
Kenai, AK 99611
Kenai Native Associations
2115 Fidalgo Ave., Suite 101
Kenai, AK 99611-7776
Native Village of Eklutna
26339 Eklutna Village Road
Chugiak, AK 99567
Ninilchik Traditional Council
PO Box 39070
Ninlichik, AK 99639
Qutekcak Native Tribe
PO Box 1467
Seward, AK 99664
Salamatof Native Association
PO Box 2682
Kenai, AK 99611
Grant Lake Hydroelectric Project Kenai Hydro, LLC
FERC No. 13212 IS-10 March 2015
[The Initial Statement will be signed and notarized for the Final License Application.]
SUBSCRIPTION AND VERIFICATION
This Application for New License for a Major Project, Unconstructed is executed in the
STATE OF ALASKA
COUNTY OF
By Mikel Salzetti, Manager of Fuel Supply & Renewable Energy Development, of Kenai
Hydro, LLC, 3977 Lake Street, Homer, Alaska, being truly sworn, deposes and says that the
contents of this application are true to the best of his knowledge or belief. The undersigned
applicant has signed this application this ___ day of __________, 2015.
Kenai Hydro, LLC
(Applicant)
By:
Mikel Salzetti
Manager of Fuel Supply & Renewable Energy Development
SUBSCRIBED AND SWORN TO before me, a Notary Public of the State of Alaska, this
day of , 2015.
NOTARY PUBLIC
My Commission Expires: