HomeMy WebLinkAbout2- Kootznoowoo Resolutions E (11-04)KOOTZNOOWOO INCORPORATED
RESOLUTION 11-04
AUTHORIZING APPLICATION TO THE STATE OF ALASKA ENERGY
AUTHORITY RENEWABLE ENERGY GRANT FUNDS FOR
POWERLINE AND GENERATION FACILITIES IN ANGOON, ALASKA
WHEREAS, the State of Alaska and the Federal Government have over a number of years undertaken
through their agencies, including the Alaska Energy Authority, extensive studies and commissioned reports on
the Hydro -electric potential of Thayer Lake and other locations in and around Angoon, Alaska; and
WHEREAS, Kootznoowoo Incorporated, owns the right to develop hydroelectric resources on
Admiralty Island National Monument and the Kootznoowoo Wilderness within township 49 south, range 67
east, and township 50 south, range 67 east, Copper River Base and Meridian, subject to such conditions as the
Secretary of Agriculture shall prescribe for the protection of water, fishery, wildlife, recreational, and scenic
values of Admiralty Island, has requested that the USDA Forest Service prepare and complete a environment
review of a plan of development prepared by HDR, Alaska dated March 2000 for the construction and operation
of Thayer Lake Hydroelectric; and
WHEREAS, on May 2009 Kootznoowoo Incorporated received a copy of the Forest Service final
environmental impact statement which is available at the Tongass National Forest web site at the following site
http://www.fs.fed.us/r10/tongass/projects/angoon hydro/index.shtml and which adds significant costs to the
proposal submitted by Kootznoowoo by required buried transmission cable and a relocation of the power house
resulting in a loss of head; and
WHEREAS, Kootznoowoo Incorporated has received an award of approximately $1.1 million of
matching funds from the U. S. Department of Energy Tribal Renewable Funds to finalize design and complete
permitting requirements for a l+ mW hydroelectric project known as Thayer Lake Hydro approximately 6
miles north of Angoon, Alaska; and
WHEREAS, Angoon, Alaska is a High Energy Cost Community as identified by the USDA Rural
Utility Service and that the cost of electricity in Angoon is over 500% (5 times) the national average for a cost
of a kilowatt hour of power; and
WHEREAS, On June 1, 2009 representatives of the City of Angoon, Inside Passage Electrical
Cooperative, the Southeast Conference, Angoon Community Association and the State of Alaska met with
Kootznoowoo, Incorporated in Angoon, Alaska to discuss the current economic condition of the community,
the cost of power and the availability of renewable energy grant funds from the State of Alaska for projects
such as the overland power line described in the EIS and the power generating facility at Thayer Creek; and
WHEREAS, On June 1, 2009 Kootznoowoo Incorporated was informed that the HDR. proposed project
was the perfect type of project to meet the goals of the State of Alaska Renewable Energy Fund and that given
the high cost of power Kootznoowoo should apply for $4,000,000 for construction of transmission line and an
additional amount of $4,000,000 for the generating facility; and
WHEREAS, there exists a region wide and community need for low cost power for municipal
operations, residential use and much needed economic development particularly job creation which cannot
occur at the current cost of power and Kootznoowoo's Thayer Creek project has received support from
numerous sources including the City of Angoon, the Angoon Community Association, the Alaska Miners
Association — Juneau Branch the City and Borough of Juneau, Southeast Conference; and others
WHEREAS, a MOU has been entered by the City of Angoon, the Angoon Community Association and
Kootznoowoo, Inc evidencing a desire to work collectively for the benefit of Angoon and the Thayer Creek
project is considered the top priority with respect to economic development among the entities and there exists a
need for low cost power for municipal operations, residential use and much needed economic development
particularly job creation which cannot occur at the current cost of power; and
WHEREAS, the USDA Forest Service has represented to Kootznoowoo that Thayer Creek
Hydroelectric is the Number 1 project in the Tongass National Forest; and
WHEREAS, the State of Alaska has grant funded $1,060,000 towards Thayer Creek in FY 2011-12's
Capital Budget and is requesting that Kootznoowoo indicate what tax treatment it would like to receive for
these funds which are designated as preconstruction and available for federal matching purposes; and
NOW, THEREFORE BE IT RESOLVED that Kootznoowoo is authorized to apply for the maximum
available funding from the AEA (approximately $3,500,000 for construction of transmission line and an
additional amount of $3,500,000 for the generating facility) and receive funds, appropriations, loan guarantees
and make necessary financial arrangements including but not limited to meeting the requirement of the Alaska
Energy Authority under the State of Alaska Renewable Energy Grant program Round V; and
BE IT FURTHER RESOLVED that the General Manager is authorized to finalize the FY 2011 Grant
from the AEA including accepting those funds as taxable to the corporation.
IN WITNESS WHEREOF, I have hereunto set my hand as Secretary of KOOTZNOOWOO
INCORPORATED and have affixed here to the official seal of said Corporation this day of
20 �
KOOTZNOO WOO INCORPORATED
By:
Corporate Secretary