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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. Grant Lake Hydroelectric Project Kenai Hydro, LLC 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 Grant Lake Hydroelectric Project Kenai Hydro, LLC 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 Grant Lake Hydroelectric Project Kenai Hydro, LLC 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 [This page intentionally left blank.] 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. Grant Lake Hydroelectric Project Kenai Hydro, LLC 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: