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HomeMy WebLinkAboutYerrick Creek Hydroelectric project App Renewable Energy Fund p. 1 Grant Application Application Forms and Instructions The following forms and instructions are provided for preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.pdf Instructions for completing the above grant budget form. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide a plan and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 2 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Power Company (a subsidiary of Alaska Power & Telephone Company) Type of Entity: Utility Mailing Address P.O. Box 3222, Port Townsend, WA 98368 Physical Address 193 Otto Street, Port Townsend, WA 98368 Telephone 360-385-1733 Fax 360-385-7538 Email glen.m@aptalaska.com 1.1 APPLICANT POINT OF CONTACT Name Glen D. Martin Title Grant Writer Mailing Address Alaska Power & Telephone Company P.O. Box 3222 Port Townsend, WA 98368 Telephone 360-385-1733 x122 Fax 360-385-7538 Email glen.m@aptalaska.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 3 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. AP&T proposes to develop a hydroelectric project on Yerrick Creek near Tok, Alaska. AP&T has completed reconnaissance level analyses of the project (Phase I), and is currently conducting selected resource assessment activities (Phase II). Existing grant funds from AEA and the Rural Utilities Service are sufficient to complete the Phase II and Phase III studies, and begin Phase IV (Construction). With this application, AP&T is requesting funding to complete Phase IV (Construction). 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. AP&T proposes to construct the 2.0 MW Yerrick Creek Hydroelectric Project (Project) located on Yerrick Creek, approximately 20 miles west of Tok. The Project would off-set diesel generation which presently supplies power to the communities of Tetlin, Tanacross, Dot Lake, and Tok. The Project will consist of a small diversion structure, approximately 15,000 feet of penstock, powerhouse with a single generating unit, tailrace, small substation, and transmission line. The Project operation will be run-of-river; annual generation is expected to be approximately 4,900 MWh/yr (approximately 40% of the interconnected load). The Project will provide clean, renewable electricity, as well as rate stabilization. The cost to maintain a hydro project is also significantly lower than diesel generation. 2.3 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. Include a project cost summary that includes an estimated total cost through construction. The total estimated cost of the Yerrick Creek Hydroelectric Project is $14,500,000. Of that amount, AP&T has already expended $103,000 of its own funds for initial Phase I and Phase II work. The remaining $14,397,000 needed to complete the Project is allocated as follows: • Phase II: Resource Assessment, Feasibility Analysis, Conceptual Design......$173,500 • Phase III: Final Design and Permitting...........................................................$593,500 • Phase IV: Construction ...............................................................................$13,630,000 AP&T has been awarded grants of $100,000 from the Denali Commission and $1,675,000 from the Rural Utilities Service for the Project. Additional funding required to complete the Project is then $12,725,000. AP&T proposes to provide matching funds totaling $2,900,000 (20% of the total cost), including the $1,775,000 in grants already received. Therefore, AP&T requests that AEA provide $11,600,000 in grant funding, which will all be used for Phase IV (Construction). Please see the attached Grant Budget for a cost breakdown for each phase of development. 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public. The Project will reduce the cost of generation by AP&T, and the savings would be passed on to Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 4 AP&T’s customers in Tetlin, Tok, Tanacross and Dot Lake who presently pay $0.47 per kWh (excluding PCE). Once the Project interties with the Tok grid, the cost per kWh could be reduced by approximately 20% to about $0.37 per kWh (excluding PCE). This hydroelectric project will reduce diesel fuel consumption by approximately 350,000 gallons per year, which at today’s prices (2008 average=$3.577/gal.) is equivalent to $1,252,000 annually. The existing diesel plant in Tok, which supplies electricity to all four communities, would use fewer diesel generators to meet the remaining load, reducing labor and maintenance costs and the frequency of generator overhaul and replacement for a potential savings of $50,000 annually. Lower energy costs would help stimulate both residential and commercial development. The environmental impacts of AP&T’s diesel generation, (e.g. air pollution, noise pollution, and potential for spills, etc.) will be significantly reduced by this Project. During part of the year it is expected that the entire load can be carried by the Project, and during the winter the use of diesel generation will supplement the Project. 2.5 PROJECT COST AND BENEFIT SUMMARY Include a summary of your project’s total costs and benefits below. 2.5.1 Total Project Cost (Including estimates through construction.) $14,500,000 2.5.2 Grant Funds Requested in this application. $11,600,000 2.5.3 Other Funds to be provided (Project match) $2,900,000 (1) 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $14,500,000 2.5.5 Estimated Benefit (Savings) $184,300,000 to AP&T ratepayers (2) 2.5.6 Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application.) $105,500,000 to public (State of Alaska) (3) (1) Includes $1,775,000 in grants already awarded to AP&T (2) Net present value of 50 years of savings by AP&T ratepayers in diesel fuel and O&M costs at a 0% discount rate. (3) Net present value of 50 years of savings by the PCE program. Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 5 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management Support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Eric Hannan, AP&T’s Interior Regional Manager, Power, will be the Project Manager for all phases of the work. Mr. Hannan is located in Tok, and is an electrical engineer with extensive experience in project management and electrical generation, transmission and distribution. Rex Goolsby will be the Construction Superintendent, reporting to Mr. Hannan. Mr. Goolsby is a Tok resident with extensive construction and construction management experience. He will supervise the on- site construction and installation of fabricated items and equipment, with help as necessary by AP&T’s electrical and mechanical engineers. Mickey Henton, AP&T’s Safety Director is stationed in Tok, and will provide safety oversight for the on-site construction. As noted elsewhere, AP&T’s intent is to pre-fabricate a substantial portion of the intake and powerhouse. The pre-fabrication work will be located near AP&T’s headquarters in Port Townsend, Washington, and will be supervised by AP&T’s civil, mechanical, and electrical engineers. Resumes for Mr. Hannan and Mr. Goolsby are included in Section 7. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.) A bar schedule of the expected design and construction sequence is provided in Section 7. The following summarizes key activities and dates of the schedule. Note that this schedule is for the entire development sequence; activities funded by this grant will be in Phase IV only. Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design: Present – Fall 2008 Environmental studies, geotechnical investigations, topographic mapping, and conceptual design have already started and are expected to be complete by the end of 2008. Phase III: Permitting and Final Design: Present – Summer 2009 Permit applications have already been submitted to DNR for a land lease and for water rights. A Corp of Engineer Section 404 permit application will be submitted by January 15, 2009, as will an application to ADF&G for a habitat permit. Final design will begin in early 2009 and will proceed through the summer of 2009 with the intent to start construction in the fall of 2009. Phase IV: Construction: 2009 –2010 AP&T expects to begin mobilization of equipment to Tok in the summer of 2009 in anticipation of a fall 2009 start of construction. Once all permits are received and the grant funds released, AP&T will place the order for generating equipment and begin on-site construction. Pioneering a road to the diversion area will be the only on-site construction activity during 2009. AP&T intends to fabricate much of the intake and powerhouse off-site in modified shipping containers so that on-site outdoor work is limited to the short April-November construction season; the off- Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 6 site fabrication work will begin in late 2009 and continue through much of 2010. Most of the on- site work will occur in 2010, including completion of the access road to the diversion site, installation of the penstock along the access road, installation of the powerhouse and diversion fabricated modules, and construction of the transmission line. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Key (i.e. critical path) milestones for the Project are: • Receipt of all necessary permits for construction and release of grant funds by September, 2009 • Award contract for supply of the generating equipment by September, 2009 • Completion of access road to powerhouse site by June 2010 and to diversion site by August 2010 • Completion of penstock installation by December 2010 The schedule described in 3.2 above is consistent with these milestones. It should be noted that the schedule assumes no on-site outside work during the December-March time period. If unusually harsh weather conditions extend that period, the entire schedule could slip. 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Key AP&T involved in the project development and their roles will be: • Eric Hannan, Project Manager and Transmission Design • Rex Goolsby, Construction Superintendent • Bob Berreth, Electrical Design • Ben Beste, Mechanical Design • Larry Coupe, Civil Design • Glen Martin, Resource Assessment and Permits • Mickey Henton, Safety Director Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design In this phase AP&T will continue with acquiring property access and complete environmental and engineering/conceptual design studies. AP&T intends to use or has used the following contractors for the various studies: • Wetlands delineation - - HDR Alaska Inc. • Threatened and endangered plant species survey - - HDR Alaska Inc. • Fish surveys - - Graystar Pacific Seafood, Ltd. • Water quality sampling - - Travis/Peterson Environmental Consulting, Inc. • Cultural resource surveys - - Browne Research; Northern Land Use Research, Inc. • Topographic mapping - - Aero-Metric, Incorporated • Seismic refraction surveys - - Philip H. Duoos, Geophysical Consultant AP&T permitting specialists will compile the environment information into resource assessment documents as required by the various permitting agencies. AP&T engineers will conduct the engineering/conceptual design studies in-house. Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 7 Phase III: Final Design & Permitting In 2007, AP&T received a determination that the Federal Energy Regulatory Commission would not have jurisdiction over the Project, therefore a FERC license is not required. Accordingly, in this phase the following permits will be acquired: • 404 permit (Corps of Engineers) • Fish habitat permit (ADF&G) • Land leases or easements (ADNR & Tanacross, Inc.) • Water right (ADNR) • SHPO review AP&T will prepare the final design documents in-house using its staff civil, mechanical, and electrical engineers, who all have extensive experience in hydroelectric development. These engineers designed AP&T’s South Fork Hydroelectric Project which entered service in 2005, as well as AP&T’s Kasidaya Creek Hydroelctric Project which will enter service later in 2008. Phase IV: Construction Construction will be by local contractors and AP&T staff, as follows: • Access road - - local contractor(s) • Diversion structure fabrications - - Reynold Grey Machining and Services • Diversion structure installation - - local contractor(s) • Penstock materials procurement - - AP&T • Penstock installation - - local contractor(s) • Generating equipment procurement - - AP&T • Powerhouse fabrications - - Reynold Grey Machining and Services • Powerhouse construction - local contractor(s) and AP&T • Transmission line construction - - local contractor(s) and AP&T • Testing and start-up - - AP&T There are several contractors in the Tok area that will be able to help with the construction. With a project of this size, we would expect to utilize the services of most of these contractors at some point during the construction. Mr. Hannan and Mr. Goolsby will select contractors for the various items of work based on their knowledge of the contractor’s capabilities, interest, workload, and rates. Reynold Grey Machining and Services is a welding and fabrication company in Port Townsend, Washington that AP&T has used frequently for similar work, including fabrication of container modules for diesel powerplants recently installed in Slana and Allakaket. Reynold Grey is located near AP&T’s engineering staff, who thereby can conveniently oversee the proposed fabrication work. AP&T already owns all the line trucks and other equipment necessary for the transmission line construction. AP&T electricians, and mechanics from Tok will install the generating unit and other mechanical and electrical equipment at the powerhouse and diversion, with supervision by AP&T engineers. As noted above, the AP&T engineers have supervised the recent startups of AP&T’s South Fork and Kasidaya Creek hydro projects. AP&T will negotiate purchase orders for materials and equipment from vendors who have performed well on AP&T’s recent projects. For the generating equipment, we expect to purchase the turbine/generator package from Gilkes Inc., using the same design as the South Fork Project equipment. Resumes for the above-mentioned firms and individuals are included in Section 7. Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 8 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. During Phases II and III, AP&T proposes to provide quarterly reports to AEA regarding the status of the work. AP&T has provided similar reports to AEA and other grant funding agencies in the past several years on other projects, and has established the necessary procedures for producing the report expeditiously. At the completion of Phase II, AP&T will provide AEA with a copy of the conceptual design drawings and cost estimate. At the completion of Phase II, AP&T will provide AEA with a copy of the final design drawings, specifications, and cost estimate, along with a request to release the grant funds. During Phase IV, communications within the team will consist of: • Weekly reports by the Environmental Compliance Monitor (as likely to be required by the ADF&G Fish Habitat Permit) • Bi-weekly conference calls among the Project Manager, Construction Superintendent, and the Design Engineers. • Periodic site visits by the Project Manager and Design Engineers. These internal discussions will form the basis of quarterly reports to AEA. The reports will show in a clear and concise manner progress made on the various tasks/milestones, the work to be accomplished in the ensuing quarter, and potential problems and corrective actions to be considered or implemented. Cost data will also be provided on a quarterly basis. Microsoft Project or similar software will be used to develop and maintain schedule and budget information; updating of the management files will be on a monthly basis. 3.6 Project Risk Discuss potential problems and how you would address them. Site Control – AP&T does not yet have development rights on land to be occupied by the powerhouse and part of the penstock and access road. We are working with the land owner (Tanacross, Inc.) to negotiate a lease, easement, or sale. Seismic – Project components will be designed appropriately for seismic activity, since the Project will be located in a high-risk seismic zone. Structures will be buried as much as possible to minimize seismic impacts. Underground Construction – The Project does not include a significant amount of underground construction, which can be fraught with cost overrun potential. Geotechnical investigations have been made at the diversion and powerhouse area to provide an adequate level of knowledge about ground conditions at those sites. Inclement Weather – Working conditions in the Project area are very harsh during the winter. The proposed schedule assumes no on-site outside work during the December-March period. If unusually harsh winter weather extends that period, the entire schedule could slip. Should that appear likely, AP&T and its contractor(s) will review various options, including double-shift work during the long summer days or limited outside work during the winter, such as processing aggregate in the powerhouse area. Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 9 SECTION 4 – PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds. • If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. Proposed Energy Resource: AP&T will develop the Yerrick Creek site to the largest capacity that is economically feasible, which at this time is estimated to be 2.0 MW. In 2007, a consultant for AP&T calculated the potential energy of the Project for various installed capacities, based on a hydrologic record estimated by transposition of data from a stream gage on Berry Creek near Dot Lake. Information from that report is the basis for the generation values indicated in this application. It should be noted however that AP&T now has a full year of gage data on Yerrick Creek, and it appears to show higher streamflows than determined by AP&T’s consultant, and Project generation could be significantly greater than indicated herein. During Phase II the Project capacity will be thoroughly evaluated based on the stream gage data currently being collected, estimates of instream flow releases that may be required, current electrical loads, and the potential for load growth. The total energy potential at the site is roughly 5.2 GWh per year, and a 2.0 MW project would be able to generate approximately 94% of that potential (4.9 GWh/yr). At this time the only viable alternative to the Project is considered to be continued diesel generation. A large hydroelectric project at Cathedral Rapids on the Tanana River was studied many years ago by the Corps of Engineers, but it is not now considered to be economically or environmentally feasible. The Cathedral Rapids site may have potential for a river turbine installation, similar to one currently under development by AP&T on a trial basis near Eagle, but its capacity would likely be quite small and thus not a true alternative to the Project. AP&T is also considering other creeks in the vicinity of Yerrick Creek for future development, however, they are not next to the existing Tok grid, and transmission line construction would add considerable cost. Pros: Compared to diesel generation, the Project will have the following advantages: • less expensive to operate than diesel (lower O&M); • no need to purchase fuel; • no air emissions; • fewer hazardous substances; • no particulate matter emissions; • can come on-line after a power outage almost immediately, but diesel can’t; • lower and more stable electric rates for customers. Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 10 Cons: As with all hydroelectric projects, the initial cost of development is much higher than for diesel generation. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Existing Power Generation There are 6 gensets in the Tok diesel power plant that supply electricity to all four communities, as follows: Unit #3 = CAT Model D3516, 1320 kW, Purchased / Installed 1999 Unit #4 = CAT/KATO Model 3516, 1135 kW, Purchased / Installed 1989 Unit #5 = CAT/KATO Model 3516, 1135 kW, Purchased / Installed 1995 Unit #7 = CAT Model C175-16, 1800 kW, Installed 2007 (is on loan from CAT as a test unit) Unit #8 = CAT/KATO Model D3508, 440 kW, Purchased / Installed 1985 Unit #9 = CAT/KATO Model 3512C, 1050 kW, Purchased / Installation in progress 2008 The existing transmission system includes 3-phase overhead line from Tok to Tanacross, single- phase overhead line from Tanacross to Dot Lake, and 3-phase buried cable from Tok to Tetlin. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Diesel generation being the existing energy resource, this hydroelectric project will for part of the year eliminate the use of diesel generators. At other times only one or more diesel gensets will be needed in addition to the hydro power. This will reduce the use of diesel and the frequency of their maintenance, including overhauls and replacement. The diesel generators that would be impacted are all owned and operated by AP&T in the Tok power plant. The Project will reduce this area’s reliance on fossil fuels. The diesel generators would be placed on standby to act as a backup to the hydro project, when hydro provides for 100% of the load demand. Otherwise the diesel generators will still be needed to supplement the hydro during parts of the year. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The existing energy market is the communities of Dot Lake, Tanacross, Tetlin, and Tok. All four communities are on the same grid and are therefore supplied by the Tok diesel power plant. Peak demand is about 1,750 kW. Peak demand is about the same in winter as in summer. Production by the diesel power plant has averaged about 12,000 MWh for the last ten years, but there has been a steady decline in the last several years from the maximum generation of about 12,800 MWh in 2003 and 2004. The decline is probably due to the higher cost from the higher diesel fuel prices. The Project will allow a decrease in electric rates for AP&T’s customers by reducing the use of Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 11 diesel; at this time the decrease is estimated to be about 20% if the Project is funded as proposed. AP&T expects that the recent decline in generation will cease or possibly reverse if lower rates can be achieved. If more renewable energy sources are found for this area, the rates could continue to fall, but until diesel generation can be eliminated their electric rates will continue to have fluctuations. Many customers supplement their electrical use with wood, kerosene, and oil or gas generators, as well as for heating. Several customers also use propane for cooking, clothes dryers, hot water heaters, etc. If electric rates come down these other sources use may decline, which would help clean the air and reduce toxic spills. Energy demand is expected to grow for this area. There are reports of plans to develop gold mines in the Tok area in the near future. Recently a battery manufacturing company visited Tok interested in building a plant there, but then didn’t because of the high electric rates. If the proposed Alaska gas pipeline goes through Tok, it would include a compression site and tap line in the Tok area, and a significant increase in population could be expected. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods Renewable energy technology specific to location – The Project will be a conventional run-of- river hydroelectric project. Facilities to be constructed include: • 18,000 feet of single lane access road • Diversion structure, approx. 60 cfs diversion capacity • 15,000 feet of 36-inch pipeline • Powerhouse with a single 2,000-kW generating unit • 2,500 feet of buried 35-kV transmission cable • Upgrade of 22 miles of 35-kV overhead transmission line Hydroelectric technology is well developed, and provides most of the renewable energy generated in the world in general, and in Alaska in particular. The Project will utilize the rainfall and steep topography afforded by the Yerrick Creek basin to generate renewable energy. Optimum installed capacity – 2.0 MW (to be confirmed by Phase II studies). Anticipated capacity factor – 28% (to be confirmed by Phase II studies). Anticipated annual generation – Approximately 4.9 Gwh/yr, which would off-set about 350,000 Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 12 gallons of diesel generation per year. Anticipated barriers – No technological barriers. Basic integration concept – Integration of hydropower is not particularly difficult; AP&T already operates two independent integrated hydro-diesel systems. For much of the year the hydro generation will be much less than the load, and therefore the diesel generation will be in lead position and the hydro in lag position. During high flow periods during the summer, the hydro generation may be sufficient to supply all of the load, in which case the diesels would not operate and the hydro would be in lead position. During the transition periods, diesel unit(s) will be block loaded in lag position, with the hydro in lead position. Delivery methods – Project generation will be delivered to the interconnected Tok system by about ¼ mile of buried cable from the powerhouse to the existing Tanacross-Dot Lake transmission line. A portion of that line will be upgraded from single-phase to three-phase. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. Part of the project is on state land and part is on Tanacross, Inc. lands. We are working on an agreement with Tanacross, Inc. and will get an easement from the state. 4.3.3 Permits Provide the following information is it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers Applicable Permits: • 404 permit (Corps of Engineers) • Water right (ADNR), • State land easement(ADNR) • Fish habitat permit (ADF&G) • SHPO review. Permitting Timeline: we are currently conducting studies to support the permit applications and expect to have the permits by Fall 2009. Potential Permitting Barriers: ADF&G may determine that water is needed in the bypassed reach of the creek (between the diversion structure and powerhouse tailrace) for fish habitat. Current fish studies are determining what habitat is there. If water is needed in the bypassed reach this could impact operations because that water could not be used for generating electricity. For a small project this can be a significant economic impact. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 13 • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers T&E Species: Are not found there and AP&T has not been asked to survey for them. Habitat Issues: There is some fish habitat for Dolly Varden and possibly grayling that we are conducting fish surveys for at this time. We hope to resolve any issue. A wetlands delineation was conducted in August 2008, but we don’t have the report yet. Wetlands: Wetlands will be avoided when possible. A wetlands delineation report is expected shortly. Archaeological Issues: An archaeological survey was conducted the first week of September 2008 per SHPO’s request with a follow up visit expected to still occur to complete the report. Land Development Constraints: No land development constraints at this time (assumption is that an agreement will be reached with Tanacross, Inc. and that site analysis will not come up with any problems). ADF&G has asked AP&T to remain at minimum 66 feet from the creek, except at the diversion site and powerhouse site, which have to be at the creek. AP&T has no problem with this request. Telecommunications Interference: The 34.5 kV transmission line does not create interference with telecommunications. This size of conductor is frequently found on the same pole with telephone lines, as they are also found to coexist on AP&T’s poles. Higher voltages can cause interference however. Aviation Considerations: This project is not near an airport nor typical flight pattern, nor will the infrastructure be more than 45 feet above ground, well below safe flying elevation. Visual & Aesthetic Impacts: Visual and aesthetics are not an issue here, but there would be minor impacts related to visible human activity. The powerhouse and appurtenances will be around a bend in the creek and out of sight of the highway with the transmission line buried to the highway. The existing infrastructure along the highway will only be upgraded to handle three-phase instead of the current single-phase to Tanacross, where completely new infrastructure will be installed the remaining 12 miles to Tok. 4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 14 • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Anticipated project costs: • Phase I: $37,500 (based on AP&T records) • Phase II: $239,000 (based on quotes or contracts with service providers) • Phase III: $593,500 (AP&T estimate based on experience with other projects) • Phase IV: $13,630,000 (AP&T estimate based on experience with other projects) • Total: $14,500,000 Requested grant funding: $11,600,000 Applicant matching funds: $2,900,000 (including existing grants awarded to AP&T) Other sources of funding: • Rural Utility Service grant (2008) - $1,675,000 • Denali Commission grant (2008) - $100,000 • Total: $1,775,000 Projected capital cost: $13,630,000 (capital cost is assumed to be the cost of Phase IV – Construction) Projected development cost: $870,000 (development cost is assumed to be the total cost of Phase I, II, and III) 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. • Total anticipated project cost for this phase • Requested grant funding AP&T will operate and maintain the Project with proceeds from sale of power to its customers. No grant funding is requested for operation and maintenance. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant-funded project AP&T is developing this Project to supply power to its own interconnected Tok system. This power ultimately will be sold to AP&T’s customers in Tok, Tetlin, Tanacross, and Dot Lake at a lesser cost than the current cost of diesel generation. Rate of Return: Not calculated. Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 15 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The Cost Worksheet is attached in Section 7 - Appendices. 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum proposed business structure(s) and concepts that may be considered. AP&T will operate the Project to supply power to AP&T’s interconnected Tok system, for eventual sale to its retail customers. AP&T will maintain the Project as it does with its other hydroelectric resources, which can be expected to have a life of at least 50 years. The Project will be remotely operated, with continuous monitoring by a SCADA system. O&M personnel will visit the plant at least once per week for routine checks on the equipment. A routine maintenance schedule will be established, a brief annual shutdown is likely for maintenance. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. AP&T has prepared an economic analysis for the Project based on the following assumptions: General Assumptions: • Term of analysis 50 years (of Project life) • General inflation rate 2.75% • Discount rate 0% and 12% • Interconnected annual generation 12,065 MWh • Annual load growth rate 0.5% • PCE rate (2008) $0.3243 • PCE rate escalation 1% Yerrick Creek Assumptions: • AEA grant funds $11,600,000 • Other grant funds $1,775,000 • AP&T funds $1,125,000 • Total cost (capital and development costs) $14,500,000 • First year of operation 2011 • Annual O&M cost (2011) $100,000 • O&M escalation rate General inflation rate • Generation at plant 4,900 MWh/yr • Generation for sale (less line losses) 4,400 MWh/yr Diesel Assumptions • Cost of diesel fuel (2008) $3.58 • Average efficiency 14.4 kWh/Gal • Fuel escalation rate 3.75% • Variable O&M cost (2008) $0.01/kWh • O&M escalation rate General inflation rate A copy of the economic analysis is provided in Section 7. The analysis shows the following: Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 16 Discount Rate (1) 0% 12% Net Present Value of Yerrick Creek Costs (2) $13,565,000 $1,887,000 Net Present Value of Fuel Cost Savings (3) $184,317,000 $14,811,000 Benefit-Cost Ratio for AP&T (4) 14.6 8.8 Net Present Value of PCE Savings $105,540,000 $14,799,000 Benefit-Cost Ratio for State of Alaska (5) 9.1 1.3 (1) Low and high discount rate values for comparison. (2) Annualized AP&T capital cost plus O&M cost, discounted to 2011. AP&T funds annualized over 50 years at the indicated discount rate. (3) Annualized costs without Yerrick Creek less annualized cost with Yerrick Creek, discounted to 2011. AP&T funds annualized over 50 years at the indicated discount rate. (4) B/C ratio =[(3)+(4)]/(3) (5) B/C ratio = NPV of PCE savings divided by proposed AEA grant amount ($11,600,000). For purposes of this analysis, the benefits to the State of Alaska are based on the assumption that the entire generation by the Project would be excluded from PCE reimbursement calculations, therefore the PCE savings is the Project generation multiplied by the PCE rate. The analysis is considered to be conservative, since the annual Yerrick Creek generation is believed to be a low estimate. The analysis indicates positive benefits for all four cases, therefore, we recommend AEA provide the necessary funding for Project construction as described in this application. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or avoided cost of ownership) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The people of Alaska will benefit from the Project development as follows: Potential annual fuel displacement: The Project will displace about 350,000 gallons of diesel fuel, which equates to a savings of $1,252,000 at the Tok average 2008 fuel price [Jan-Aug] of $3.577 per gallon. Over a 50 year period the Project could potentially save 17,500,000 gallons Renewable Energy Fund YERRICK CREEK HYDRO PROJECT Grant Application Page 17 of diesel fuel valued at $192,000,000, assuming a 3.75% escalation rate in the price of diesel fuel. Anticipated annual revenue: AP&T would expect to have a new rate tariff for the Tok system based on the various funding contributions. If funded as proposed herein, the Project is estimated to result in a decrease in revenue of about $1,100,000 per year. Potential additional annual incentives: Not estimated. Potential additional revenue streams : Not estimated. Non-economic public benefits to Alaskans: Reduced air emissions and noise, reduced chance for oil spills. Other benefits: The State of Alaska would spend less on the PCE program, since the Project generation would decrease the amount of diesel generation subject to PCE reimbursement. In the short term the local economy would benefit due to local hire for construction. In the long term, lower and more stable electric rates could lead to more residential and commercial development, which in turn would add more income to these communities. SECTION 6 – GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by tasks using the form - GrantBudget.xls Total Project Costs: $14,500,000 Investments to date and funding sources: AP&T has spent approximately $103,000 to date on development activities for the Project. To date, all costs have been paid out of AP&T’s general funds, although some costs will be eligible for reimbursement from two grants received to date (Rural Utility Service - $1,675,000; Alaska Energy Authority - $100,000; Total: $1,775,000). Amount requested in grant funds: $11,600,000 Additional investment by AP&T: AP&T will provide additional funding as necessary for the proposed grant from AEA to provide 80% of the total project costs and other sources (including AP&T) to provide 20%. Additional funding by AP&T is estimated at this time to be $1,125,000. BLANK PAGE APPENDICES TABLE OF CONTENTS 1. Certificate of Public Convenience & Necessity 2. Corporate Resolution 3. Project Fact Sheet 4. Project Maps 5. Tok Grid One-Line Diagram 6. Project Area Photographs 7. Resume’s 8. Permit Applications 9. Draft Study Plans (Versions 1 & 2)(Includes ADF&G Comments) 10. NEPA Checklist 11. Cost Worksheet 12. Grant Budget Form CERTIFICATE OF PUBLIC CONVENIENCE & NECESSITY CORPORATE RESOLUTION PROJECT FACT SHEET  Yerrick Creek Facts Sheet     Alaska Power Company (APC), a subsidiary of Alaska Power & Telephone, generates electricity with  hydroelectric and diesel power plants throughout Alaska, presently serving 24 communities. APC’s  experience in Alaska goes back to 1957. APC has staff certified as electrical, civil, and mechanical  engineers.  APC’s engineers are responsible for the designing, ordering materials, and construction of  impoundment structures, power plants, turbines, generators, switchgear, SCADA networks, transmission  lines, etc. APC’s facilities are well maintained and our operations and construction personnel are among  the best in the industry. We have a consistent history of excellent performance in reliability, customer  service, and a reputation for being a low cost provider of electric service.    APC currently operates five hydroelectric projects: two storage and three run‐of‐river; in addition to the  Kasidaya Creek Hydro Project currently under final construction.    The target communities that will benefit from this project are Tetlin (pop. 117), Tanacross (pop. 140),  Dot Lake (pop. 19), and Tok (pop. 1,393), Alaska,  • Economic Hardship: Due to the high cost of gasoline, travelers to and through Tok are down  11% over 2006, impacting this tourism based economy.  • Economic Distress:. According to the U.S. Census data, the county median household income  was $38,776, which is 75% of the State median household income of $51,571. The per capita  income for these communities is: Tetlin $7,372; Tanacross $9,429; Tok $18,521; and Dot Lake  $19,406 compared to the State at $33,761. Family poverty levels are higher in Tetlin (40%),  Tanacross (22.6%), and Tok (9.5%) than the State as a whole (6.7%). Unemployment in  Tanacross is 57.1%, Tetlin 46.9%, and in Tok 18%. The Denali Commission considers Tetlin and  Tanacross Distressed Communities. The Denali Commission states that Dot Lake and Tok are  distressed by 2007 standards plus/minus 3%.  The hydro project will consist of a small diversion structure, approximately 11,000 feet of penstock,  powerhouse with a single Impulse turbine and generator, tailrace, small substation, and a short  transmission line to the Alaska Highway and then new infrastructure to replace old single‐phase  infrastructure along the highway to Tok (22 miles).  Construction is anticipated to begin in the Fall 2009 after permits are received. The building season is  short at this north latitude, so it will take two years to complete this project.   Immediate Project Benefits – Local Hire During Construction  • ROW clearing  • Road building  • Cement work  • Pipe welding  • Power Plant building construction  • General Labor  • Land ROW / lease/ purchase money to Tanacross Inc.     Page 1 of 2     Yerrick Creek Facts Sheet   Long Term Project Benefits/Outcomes  • Stabilize the fluctuating electric rates due to rapidly changing and rising diesel fuel costs  • The cost to produce electricity for the grid supplying Tok, Tanacross, Dot Lake and Tetlin, will be  a savings of approximately 20%;  • Greater reliability and cost effectiveness with hydropower versus diesel generation   • Reduce air emissions / greenhouse gases  • Reduce noise pollution   • Reduce the chance for fuel spills   • Economic development and home building due to less expensive electricity;  • APC will have a net annual O&M savings of approximately $15,700 by reducing the hours the  Tok diesel generators are used   • Reduced frequency of Tok diesel generator replacement(s)   • The cost to maintain a hydro project is also significantly lower than diesel generation  • . Land ROW / lease/ purchase money to Tanacross Inc.     Yerrick Creek Hydro Characteristics   ¾ Very Low Impact hydro  ¾ Will not flood the valley  ¾ Funnel a portion of the current water flow into the 36” penstock, then released back to natural  flow  ¾ Minimal impact on the environment  ¾ Will be larger than current Tok plant output ‐ will be able to handle community growth  ¾ Although too early to tell, our preliminary energy estimate (assuming a May to  November operating range produces 4,900 MWH) at 14 kWh/gal efficiency at the diesel  power plant, this would be a savings of about 350,000 gallons per year, which equates  to at today’s prices (2008 average=$3.577/gal.) is equivalent to $1,251,950 annually.  AP&T has been told by gas pipeline officials that if the pipeline is built, and if it comes through Tok, it  will be at least ten years before the start of construction.      Far Reaching Effects  Although there are many hydroelectric projects found in Southeast and Southcentral Alaska, there are  many sites in Alaska’s mountain ranges where small, seasonal hydroelectric projects would be cost  effective to install. This project will help APC fine tune its small, seasonal hydro capability to take a basic  design almost anywhere and install a cost effective facility to meet the needs of rural Alaska.    ¾ This project will not only provide clean, renewable electricity, but will provide rate stabilization.    ¾ With the projected price of gasoline hitting $6.00 a gallon within two months – Yerrick Creek  hydro cannot come soon enough!  Page 2 of 2    PROJECT MAPS PROJECT SCHEDULE YERRICK CREEK HYDROELECTRIC PROJECTDESIGN AND CONSTRUCTION SCHEDULE200820092010JULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECPHASE II: Resource Assessment, Feasibility Analysis, Conceptual DesignEnvironmental StudiesGeotechnical InvestigationsTopographic MappingConceptual DesignPHASE III: Final Design and PermittingPermit Application PreparationPermit Application ProcessingFinal DesignPHASE IV: ConstructionMobilizationAccess RoadDiversion Structure FabricationsDiversion Structure InstallationPenstock Materials ProcurementPenstock InstallationGenerating Equipment ProcurementPowerhouse FabricationsPowerhouse ConstructionTransmission Line ConstructionTesting and Start-Up TOK GRID ONE-LINE DIAGRAM PROJECT AREA PHOTOGRAPHS RESUME’S REYNOLD GREY MACHINING & SERVICES, INC. 321 No. Otto St. Pt. Townsend, WA. 98368 (360)385-1167 phone (360)385-3212 Fax RGMACHINESHOP@YAHOO.COM Established in June of 2003 by Greg and Marcy Mika, Reynold Grey has progressed into a diverse shop catering to all types and sizes of machining and fabrication work. Flexible describes us best! As a small town shop we provide a multitude of services in one location to keep costs down. We are capable of all conventional machining, production CNC machining, all types of welding and fabrication designed to suit the project, sandblasting and painting. We are known for our unique approach to problem solving and for the variety of jobs we are capable of tackling. Providing quality work at affordable pricing is our constant goal. Following is a few examples of some of the jobs we have completed. STRUCTURAL STEEL WORK AT PT. HUDSON MARINA IN PT. TOWNSEND, FRIDAY HARBOR FERRY TERMINAL, GUARD SHACKS AT MC CORD AFB AND MANY MORE. COMPLETE OVERHAUL OF TURBINES AND TURBINE SHAFTS FOR THE ROCKY BROOK GENERATION STATION IN BRINNON, WA. CONVERSION OF SEMI TRAILER INTO A PORTABLE GENERATION STATION TO POWER THE TOWN OF SLANA, ALASKA. MULTIPLE HYDRO PROJECTS WITH SQUARES TO ROUND AND ANGLED FLANGES TO PIPE AND OTHER ASSORTED PROJECT WORK FOR BOTH KASIDAYA AND FALLS CREEK PROJECTS IN ALASKA. FOR MORE INFORMATION PLEASE CALL ANYTIME. SLANA GENERATION STATION PERMIT APPLICATIONS UNITED STATES OF AMERICA 118 FERC ¶ 62,233 FEDERAL ENERGY REGULATORY COMMISSION Alaska Power & Telephone Company Docket No. DI07-2-000 ORDER RULING ON DECLARATION OF INTENTION AND FINDING LICENSING NOT REQUIRED (Issued March 28, 2007) 1. On January 16, 2007, Alaska Power & Telephone Company filed a Declaration of Intention (DI) concerning their proposal to develop the Yerrick Creek Hydro Project, to be located on Yerrick Creek, tributary to the Tanana River, near the town of Tok, Alaska, affecting T. 18 N., R. 9 E., secs. 1, 2, 11, 14; T. 18 N., R.10 E., sec. 6; and T. 19 N., R. 9 E., sec. 36, Copper River Meridian. PROJECT DESCRIPTION 2. The proposed Yerrick Creek Hydro Project would include: (1) a small diversion structure, with a siphon-type intake; (2) a 36-inch-diameter, 11,000-foot- long penstock; (3) a powerhouse containing a 1.5 MW Pelton-type turbine; (4) a 1.15-mile-long transmission line, connected to an existing power grid; and (5) appurtenant facilities. The project would not be connected to an interstate grid, and will not occupy any tribal or federal lands. PUBLIC NOTICE 3. Notice of the DI was issued on January 30, 2007. Protests, comments, and/or motions to intervene were to be filed by March 2, 2007. No comments, protests, and/or motions to intervene have been received. JURISDICTION 4. Pursuant to Section 23(b)(1) of the Federal Power Act, §817(1), a non- federal hydroelectric project must (unless it has a still-valid pre-1920 federal permit) be licensed if it: ▫ is located on a navigable water of the United States; ▫ occupies lands of the United States; ▫ utilizes surplus water or waterpower from a government dam; or ▫ is located on a body of water over which Congress has Commerce Clause jurisdiction, undergoes construction or major modification on Docket No. DI07-2-000 - 2 - or after August 26, 1935, and the project affects the interests of interstate or foreign commerce. DISCUSSION 5. The proposed project will not occupy any public lands or reservations of the United States and will not use surplus water or water power from a Federal government dam. There is insufficient evidence to suggest that Yerrick Creek is a navigable waterway at the site or in the vicinity of the proposed project. The proposed project will be constructed after August 26, 1935, and is located on a Commerce Clause waterway, but it will not be connected to an interstate transmission grid. Therefore, the project would not affect the interests of interstate or foreign commerce. 6. In some cases, a project’s effects on anadromous fish can constitute an effect on the interests of interstate or foreign commerce. However, the effect must be real and substantial. Although the proposed Yerrick Creek Hydro Project includes a diversion structure, it will not block spawning habitat in the creek. In addition, the project will not significantly affect flows in the creek. We, therefore, find that the project would not have a significant effect on anadromous fish in the creek, and would not affect the interests of interstate or foreign commerce. CONCLUSION 7. Section 23(b)(1) of the FPA does not require licensing of the proposed project. Although the project will be constructed after August 26, 1935, and is located on a Commerce Clause water, it would not affect the interests of interstate or foreign commerce. There is no evidence to suggest that the project is located on a navigable waterway. If evidence to support the Commission’s licensing jurisdiction is found in the future, Section 23(b)(1) would require licensing. Under Section 4(g) of the FPA, the project owner could then be required to apply for a license. The Director orders: (A) Section 23(b)(1) of the Federal Power Act does not require licensing of the proposed Yerrick Creek Hydro Project. This order is issued without prejudice to any future determination, upon new or additional evidence, that licensing is required. Docket No. DI07-2-000 - 3 - (B) This order constitutes final agency action. Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R. § 385.713. William Y. Guey-Lee, Chief Engineering & Jurisdiction Branch Division of Hydropower Administration and Compliance DNR LAND EASEMENT APPLICATION ALASKA POWER & TELEPHONE COMPANY PROJECT DESCRIPTION FOR THE YERRICK CREEK HYDROELECTRIC PROJECT OCTOBER 2007 PROJECT DESCRIPTION The Yerrick Creek Hydroelectric Project received a non-jurisdictional determination from the Federal Energy Regulatory Commission on March 28, 2007. This proposed 1.5 MW hydropower project is on the Alaska Highway approximately 20 miles West of Tok in South Central Alaska, as shown in Figure 1. The Project is located within the Copper River Meridian (CRM), the Township of T18N, the Range of R9E, and the Sections 1, 2, 11, and 14, and CRM, T19N, R9E, Section 36, as shown in Figure 1. The Project will utilize the natural flows in Yerrick Creek. The creek has an estimated drainage area of approximately 30.0 SQMI from the point of the proposed diversion structure. The proposed project is located on lands not owned by the United States and is on a non- navigable stream. Yerrick Creek is a small mountain stream emanating from the Alaska Range dropping from approximately 4,500 feet in elevation to the Tanana River at elevation 1,700 over a distance of about 7 miles. A photo of this creek, which is known to have active debris torrents, because of the steep, non-navigable slope, is below. The project will provide hydroelectric power to an area solely reliant upon diesel generation. The area grid this project would intertie with is operated by AP&T, and the communities on this grid that would benefit are Tok, Dot Lake, Tanacross, and Tetlin. 1. PROJECT DESCRIPTlON The proposed Yerrick Creek Hydro Project will consist of a 2.3 MW generating system that will provide hydroelectric power to the AP&T grid around Tok which is presently solely reliant upon diesel generation. The project will have a small diversion structure, penstock, powerhouse, and a small substation. A small diversion structure will be constructed at the approximate elevation of 2350 feet. A siphon type intake will extend into the pond created by the diversion structure. The intake will convey water from the diversion structure pond to a penstock entrance at elevation 2350. The 36-inch diameter penstock will extend a distance of approximately 11,000 feet to the powerhouse, at elevation 1750 feet. The penstock will be either buried or above ground or a combination of both. The powerhouse will contain one horizontal shaft Pelton turbine and associated synchronous generator. The turbine will be capable of handling a maximum flow of 60 cfs. A tailrace channel will transport the turbine discharge back into Yerrick Creek. The transmission line will follow a new road for approximately 0.5 miles to the existing power grid operated by the applicant, APC. At the highway a substation will be installed to connect the project to the grid. Project Description for State Land Lease Yerrick Creek Hydro Project October 2007 Page 2 This project will be a step toward energy independence for this remote area that is geographically isolated and is reliant upon fossil fuel for its energy needs. This project will help to avoid the related costs and air quality emissions associated with diesel generation. The Project would typically be automatically operated, base-load, run-of-river, depending upon load power demands. Photo of Yerrick Creek Land Status The proposed project is located on State of Alaska land and private land. No portion of the project is on Federal land. Project Description for State Land Lease Yerrick Creek Hydro Project October 2007 Page 3 TYPICAL IMPOUNDMENT STRUCTURE DESIGN TO BE USED LOOKING UP AT IMPOUNDMENT STRUCTURE AND VIEW OF SPILLWAY Project Description for State Land Lease Yerrick Creek Hydro Project October 2007 Page 4 DNR WATER RIGHTS APPLICATION Glen Martin From: Glen Martin [glen.m@aptalaska.com] Sent: Friday, March 28, 2008 11:34 AM To: 'Durst, James D (DNR)' Cc: Mac McLean (mac.mclean@alaska.gov) Subject: RE: Yerrick Creek Page 1 of 1 3/31/2008 Jim, How goes getting that information together on Yerrick Creek? I'm anxious to hire a biologist and want to let them know what they are getting into. Also, want to get the study plan developed and get agency review going, all of which is contingent upon your letter. ☺ Thanks, Glen -----Original Message----- From: Durst, James D (DNR) [mailto:james.durst@alaska.gov] Sent: Wednesday, March 19, 2008 9:28 AM To: glen.m@aptalaska.com Subject: Yerrick Cr Glen: Just wanted to let you know I haven't forgotten about the Yerrick Creek letter we discussed. Things have been a bit busy around here lately. -Jim SHPO REVIEW DRAFT STUDY PLAN JUNE 2008 YERRICK CREEK HYDROELECTRIC PROJECT DRAFT STUDY PLAN 1.0 PROJECT DESCRIPTION APC proposes to construct a run-of-river hydroelectric project that will interconnect with the grid supplying electricity to the communities of Tetlin, Tok, Dot Lake, and Tanacross. This grid is presently wholly reliant upon diesel generation. APC is the certified utility for this area along the Alaska Highway and is within the boundaries of APC’s certificate from the Regulatory Commission of Alaska. This project is called the Yerrick Creek Hydroelectric Project. The project is located approximately 20 miles west of Tok on the Alaska Highway at Milepost 1339. Although APC’s existing transmission infrastructure follows the highway right-of-way past the project site, this infrastructure (conductor) will need to be upgraded to handle the load from the project. Project capacity is expected to be 2-3 megawatts (MW). Project features would include a small diversion structure, an approximately 11,000 foot long penstock, powerhouse with a single impulse turbine (Pelton or Turgo) and generator, tailrace, small substation, and transmission line to and along the Alaska Highway, as shown in Figure 1. The building season is short at this north latitude, so it will take two years to complete this project. This project not only will provide clean, renewable energy that will stabilize rates, but will provide a stable source of energy that can quickly come on line after power outages, which makes it one of the best renewable resources. The cost to maintain a hydro project is also significantly lower than diesel generation. The existing diesel generation plant in Tok will continue to supplement the grid as the hydro project is only expected to provide electricity for 100% of the load part of the year and down to approximately 10% of the load during low flow periods of the year, such as during the winter. This project will reduce the cost of electricity to the residents of Tetlin, Tok, Tanacross and Dot Lake who presently pay $0.36 per kWh. Once the hydroelectric project interties with the Tok grid, the cost per kWh will be reduced by approximately 20%. The environmental impacts, i.e. air pollution, noise pollution, spills, etc., of any self-generation will be significantly reduced by this intertie, as well as from generation at APC’s powerplant in Tok. During part of the year it is estimated the entire load can be carried by the hydroelectric project, and during the winter the use of diesel generation will supplement the hydroelectric project. This hydroelectric project will reduce fossil fuel consumption by approximately 509,800 gallons per year, which at 2007 prices is equivalent to $1,157,246 annually. The existing diesel plant in Tok, which supplies electricity to all four communities, would use fewer diesel generators to meet the remaining load, reducing labor and maintenance costs and the frequency of generator overhaul and replacement for a potential savings of $1,153,200 annually. At present usage levels, this hydroelectric project would save the residents of all four communities approximately $693,043 per year (2007). Lower energy costs would help stimulate development, both economically and home building. 2.0 Project Components The project facilities described herein are based on a preliminary evaluation of the site, and represent the maximum degree of resource development. The proposed project features are described in more detail below: Impoundment The project design for this run-of-river hydroelectric project include construction of either a concrete, steel, or other material impoundment structure. The impoundment structure is likely to be made of sheet piling to create a barrier that will impound enough water for an intake to remove it and generate electricity at the powerhouse. Due to the depth of the cobble expected in Yerrick Creek, it is not expected that the sheet pile will reach bedrock, and therefore it is expected that some water will go subterranean under the impoundment structure and surface further down the creek. Penstock The penstock is estimated to be approximately 11,000 feet in length and would probably consist of a combination of HDPE and steel or iron pipe. The penstock is proposed to be on the surface rather than buried to keep costs down. The diameter of the penstock may be approximately 36-inches. The penstock would parallel the creek down to the powerhouse requiring some clearing along its right-of-way. Powerhouse The powerhouse would be a metal structure of approximately 30 x 40 feet with a height of approximately 25 feet. The powerhouse would contain the controls for the operation of the project, including switchgear, Pelton or Turgo impulse turbine, a generator rated at 2-3 MW, and controls for valves at the impoundment structure. After the water passes through the turbine it will fall into a tailrace that will discharge back into Yerrick Creek above the highway bridge that spans the creek. Access Road An access road would be constructed to the powerhouse from off the Alaska Highway. The road is expected to be less than a mile in length. Another access road would come down the west side of Yerrick Creek from the impoundment structure, due to its more moderate elevation changes, to the powerhouse site. The one lane access road width would be approximately 14-feet wide with frequent pullouts. Substation A small pad-mount step-up transformer will be adjacent to the powerhouse to adjust the voltage for the transmission line to Tok. Transmission Line The transmission line will go from the powerhouse step-up transformer to intertie with the Tok grid along the Alaska Highway, approximately one mile away. This would require approximately 20 vertical wood pole structures set about 300 feet apart. Land Ownership The enclosed Figure 2 is a project map showing property boundaries in relation to the project features. The project will be located on land managed by the State of Alaska and Tanacross, Inc., a Village Corporation. Environmental Impacts Previous man-made land disturbance (old gas pipeline corridor paralleling the highway, which was once cleared of vegetation) has left a footprint on the environment that will reduce this projects impacts by utilizing the corridor for part of the access road and powerhouse site. Impacts to wetlands will occur as areas along the access route are in muskeg. The access route will parallel the creek on its west side. It is estimated that approximately 5-6 acres of land would be disturbed, with possibly ¾’s being in muskeg and the creek. To mitigate this, an erosion and sedimentation control plan will be implemented to confine impacts during construction, of which silt fencing and straw or hay bales would play a significant part, and repair after construction where possible. Construction methods, i.e. minimize the construction footprint, will also keep impacts to a minimum. DRAFT STUDY PLAN Existing Resources Much of the information presented here is from the Tetlin National Wildlife Refuge (east of the project) website, and hence the mention of Refuge throughout this description. The Refuge’s data is used because of its proximity to the project area and wealth of information available on indigenous species of the area, however, the Refuge’s geography is different then that of Yerrick Creek which is primarily a mountainous drainage whereas the Refuge is more lowlands. With that caveat in mind, here is information on species that may be present. Botanical Resources Boreal forest (taiga) and upland tundra are the dominant vegetation types in all of interior Alaska. In the alpine areas, dry, broad ridge tops are dominated by dryas dwarf scrub and ericaceous dwarf scrub tundra vegetation. Mesic to moist saddles, slopes, and snow-melt meadows support mesic graminoid herbaceous and open, low scrub vegetation. Rock- dominated sites support alpine herbs. Aquatic Resources The Department of Natural Resources, Habitat Management Division, provided the following information in an April 7, 2008, letter to AP&T regarding the Yerrick Creek drainage. “Yerrick Creek provides habitat for a variety of non-anadromous fish species, including Arctic grayling, Dolly Varden, round whitefish, and slimy sculpin. Arctic grayling and round whitefish are fairly ubiquitous in Tanana River basin stream systems, but the presence of Dolly Varden in Yerrick Creek makes this stream somewhat unusual. “Fish presence and habitat near the mouth and in the lower reaches of Yerrick Creek (well downstream of the Alaska Highway) are poorly documented, although habitat for a variety of species including Arctic grayling, northern pike, burbot, round whitefish, lake chub, longnose sucker, and slimy sculpin occurs here. Stream flow in portions of Yerrick Creek in this reach are completely subsurface at times. If operated as run-of-river, the Yerrick Creek Hydropower project is unlikely to affect these downstream fish resources and habitats. “That portion of Yerrick Creek from downstream of the Alaska Highway to upstream of the Haines-Fairbanks Pipeline crossing has been the most surveyed for fish presence and use. Arctic grayling and Dolly Varden have been found present from the beginning of June through late August, and Arctic grayling through late November (under ice cover). Round whitefish were present in late summer. Even when this reach appears frozen, high quality water is typically flowing in at least one channel below the ice; adult aquatic invertebrates were hatching from a small channel under ice in the third week of March one year. Although Yerrick Creek flow apparently goes subsurface in various locations between the Alaska Highway and the Tanana River for much of most summers, the portion of the stream between the mountains and the subsurface flow appears to provide connected surface flow and habitat. “Adult and juvenile Arctic grayling and Dolly Varden have been captured upstream of the proposed diversion structure location up to where Yerrick Creek forks more than 6 miles above the Alaska Highway crossing. A small falls downstream of the fork is apparently not a fish barrier. Biologists suggested that this reach between the ridges may be used for grayling spawning and for grayling and Dolly Varden over-wintering habitats. Sheep hunters have reported seeing fish in stream portions in the upper part of the drainage that appeared to provide good habitat.” Wildlife Resources The Department of Natural Resources, Habitat Management Division, provided the following information in an April 7, 2008, letter to AP&T regarding the Yerrick Creek drainage. “The Yerrick Creek drainage is used by a variety of big game species including moose, caribou, and Dall sheep, and is part of the Tok Management Area for Dall sheep. A significant amount of sheep hunting occurs in this drainage. Some sheep hunters have reported being able to walk up the Yerrick Creek streambed to access sheep country since the stream in portions was mostly gravel and rocks with a relatively small channel of water meandering through.” Dall Sheep (Ovis dalli) The Dall sheep is a stocky sheep that utilize nearly inaccessible, steep mountain slopes, ridges and meadows for feeding and resting. They are generally high country animals but sometimes occur in rocky gorges below timberline in Alaska. They are mostly white and weigh between 125 and 200 pounds. Male Dall sheep are called rams and are distinguished by massive curling, yellowish horns. The females, ewes, have shorter, more slender, slightly curved horns. Dall sheep are sometimes mistaken for mountain goats, however, the mountain goat has long fur and a beard, and small, slender, black horns that curve slightly backward. A single young lamb is born in late May or early June. Lambs begin feeding on vegetation within a week after birth and are usually weaned by October. Sheep have well- developed social systems. Adult rams live in bands which seldom associate with female groups except during the mating season in late November and early December. Yerrick Creek is one of the few drainages on the north side of the range that has provided historical access to Dall sheep hunting grounds (Cathedral Rapids Creeks and Sheep Creek being the others). For this reason, maintaining access to these hunting grounds without providing ‘improved’ access that could further stress the population would be the goal of project design. Gating any access road to the project would be the preferred method of maintaining access for hunters as exists today, although they would be able to hike up the road on foot to the projects impoundment site, but would not be able to drive up the drainage beyond what they presently can. This could be viewed as an impact by providing an easier hike into part of the drainage. Moose (Alces alces) Moose are the world's largest members of the deer family and are most abundant in recently burned areas that contain willow and birch shrubs, on timberline plateaus, and along the major rivers of Southcentral and Interior Alaska. During fall and winter, moose consume large quantities of willow, birch, and aspen twigs. In the spring, moose eat a variety of foods, particularly sedges, equisetum (horsetail), pond weeds, and grasses. During summer, moose feed on vegetation in shallow ponds, forbs, and the leaves of birch, willow, and aspen. Moose are long-legged and heavy bodied with a "bell" or dewlap under the chin; only the bulls have antlers. Their color ranges from golden brown to almost black, depending upon the season and the age of the animal. The hair of newborn calves is generally red- brown fading to a lighter rust color within a few weeks. Calves are born any time from mid-May to early June after a gestation period of about 230 days; newborns weigh 28 to 35 pounds and within five months grow to over 300 pounds. Males can weigh from 1,200 to 1,600 pounds and females weigh 800 to 1,300 pounds. Moose are common in this area and are also hunted in this and the adjoining drainages. Yerrick Creek is brushy habitat, providing food for Moose including the few small lakes and marshes approximately 0.5 miles west of the creek. Moose may be temporarily impacted by this project from construction activity, but should otherwise not be impacted. If the penstock (pipe) is kept on the surface (least expensive method of construction) and placed on saddles that elevate the penstock from 6-12 inches (and assuming the penstock will have a diameter of 36-inches), it could be a barrier to young moose, but adults should be able to get over. The alternatives would be to partially bury, or place berms approximately every 300 feet on either side to allow mammals to get past the penstock. Due to variances in the terrain, if the penstock is on the surface it may be suspended over ravines or be partially buried through a rise, or be 6-12 inches above flat terrain. Caribou (Rangifer tarandus) All caribou and reindeer throughout the world are considered to be the same species, but there are 7 subspecies, two of which occur in Alaska: barren ground and woodland. Caribou have special adaptations that allow them to survive their harsh arctic environment. Long legs and broad, flat hooves allow them walk on snow, and a dense woolly undercoat overlain by stiff, hollow guard hairs helps keep them warm. Caribou are also the only member of the deer family in which both sexes grow antlers. Antlers of adult bulls are large and massive; those of adult cows are much shorter and are usually more slender. In late fall, caribou are clove-brown with a white neck, rump, and feet and often have a white flank stripe. Weights of adult bulls average 350 to 400 pounds and females average 175 to 225 pounds. Barren Ground Caribou (Rangifer tarandus granti) In the United States, Alaska is the only state that supports a healthy barren ground caribou population. Barren ground caribou are found in the arctic tundra, mountain tundra, and northern forests of North America, Russia, and Scandinavia. Calving occurs in late May to early June. After calving, barren ground caribou collect in large “postcalving aggregations”. Migration then begins in the fall, where large herds often travel long distances (up to 400 miles) between summer and winter ranges. During the summer, barren ground caribou feed on the leaves of willows, sedges, flowering tundra plants, and mushrooms. They switch to lichens, dried sedges, and small shrubs during the fall. Portions of four different barren caribou herds winter on or near Tetlin National Wildlife Refuge. The Nelchina Herd (> 30,000 animals), makes up the majority of caribou that pass through or winter on the Refuge. The Fortymile Herd (> 40,000 animals) is generally found north of the Refuge during the winter, although occasional individuals are also on Refuge lands. The remaining two herds are much smaller (< 1,000 animals). The Mentasta Herd calves on the slopes of Mt. Sanford in the Wrangell Mountains with a few individuals lingering some years in the southwest portion of the Refuge. The Macomb Herd calves northwest of the Refuge on the Macomb Plateau, and rarely moves onto Refuge lands. According to ADF&G, Caribou are known to pass through the Yerrick Creek drainage.1 Gray (Timber) Wolf (Canis lupus) Wolves are described as having the greatest natural range of any terrestrial mammal, excluding humans. Most wolves in Alaska weigh between 85 and 115 pounds with most females rarely reaching more than 110 pounds. Color varies greatly from pure black to almost white. Wolves in southern Alaska tend to be darker and slightly smaller than those in the Arctic. Wolves are skilled hunters and prey on a variety of species including moose, caribou, hares, beaver, fish, mice and other small mammals. Most wolves hunt and live in packs that range from two to thirty wolves; six or seven is the average. Breeding occurs January through March and the pups are born in late May to early June. Litter size varies from two to thirteen but averages four to seven pups. Females usually will produce a litter every year. The packs usually include the parents and the current year’s pups. The young are usually not able to kill large game for themselves until late winter when they have reached adult size. Wolves may pass through the Yerrick Creek drainage in pursuit of game. Snowshoe Hare (Lepus americanus) Snowshoe hares average 18 to 20 inches in length and weigh three to four pounds. Their summer coats are yellowish to grayish brown with white underparts, and the tail is brown on top. During the winter, their coat is replaced by white fur, but the hair is dusky at the base with a gray underfur. Snowshoes’ ears are dark at the tip. Hares are found in mixed spruce forests, wooded swamps, and brushy areas. They feed on a variety of vegetation including grasses, buds, twigs, leaves, needles, and bark. Snowshoe hares travel on well-established trails or runways at all times of the year. Young are born April thru August with two to three litters per year. Litters average two to four leverets (young hares) and can range from one to seven. Leverets weigh about two ounces at birth and can walk as soon as their fur is dry. They are weaned after about a month, but will eat green vegetation at only two weeks old. Refuge staff monitor relative snowshoe hare population abundance with permanent mile- long transects. Hare populations on the Tetlin National Wildlife Refuge (east of the 1 Personal communication between AP&T and Jeff Gross, Tok ADF&G Office, May 2008. project) cycle every 8 to 11 years and appear to follow those in central Yukon by about a year. Snowshoe hares could use the Yerrick Creek drainage. Wolverine (Gulo gulo) Wolverines are among the least understood large carnivores in North America and the largest land-dwelling member of the weasel family. Most wolverines weigh 15 to 45 pounds and stand 15 to 18 inches at the shoulder. Females are smaller than males. Their coats are glossy dark brown with two pale lateral stripes converging at the base of the tail. Wolverine heads are gray with black muzzles, short ears, and dark eyes. They are described as having a low-slung body with powerful legs and large, curved claws. Wolverines are omnivorous (eat both meat and plants) and will eat anything from berries to moose. They also feed on small mammals such as voles, squirrels, and hares. Although they are very strong for their size, their reputation for ferocious attacks on large carnivores has been exaggerated. They will vigorously defend their food, but do tend to avoid bears, wolves, and other large predators. Wolverines are solitary hunters and roam large areas in search of food. Breeding occurs May through July and the kits are born in January through April. Kits emerge from their dens, usually in snow caves, hollow stumps, or under rock piles, in early summer and remain with their mother until fall. Wolverines appear to occur at low density levels in the Upper Tanana Valley. They are primarily found in the foothills and mountainous areas where access is limited. It is possible that wolverines may use or pass through the Yerrick Creek drainage. River (Land) Otter (Lontra canadensis) River otters have a powerful, low-slung, slender body and flattened heads. They have a tapered tail, short legs, and webbed feet. Large males can grow to almost five feet long and stand 9 to 10 inches high at the shoulder. Most river otters weigh between 15 and 35 pounds with females being about a quarter smaller than males. The fur is very dense and with shades of brown that are distinctively lighter on the underparts, chin, and throat. River otters eat mainly fish but also consume a variety of foods including shellfish, insects, frogs, birds, eggs, small mammals, and vegetation. They are mostly aquatic but will travel distances over land to reach another stream or lake. River otters are also social and tend to travel in pairs or larger groups. Breeding usually occurs May to July with young born in April or May. Litters average two pups and can range from one to five. Although not common, characteristic signs of this wetland furbearer can be found throughout the Refuge wherever there are beaver ponds or open water in winter. In summer, they are occasionally seen along fishing streams. River otters may also use or pass through the Yerrick Creek drainage, though they may more likely be below the highway toward the Tanana River. There are no beaver dams on Yerrick Creek within the range of the projects impacts. Marten (Martes americana) The long, beautiful, chocolate brown coat of marten lead to its nickname: American Sable. A streak of lighter fur usually runs from the throat onto the chest. They have a fox-like face with broad rounded ears and unlike other members of the weasel family, a long bushy tail. Male marten grow 10 to 25 inches long plus an 8-inch tail and weigh up to 3 pounds. Females are substantially smaller. Marten are mostly nocturnal and spend a great deal of their time in trees. They inhabit mature conifer forests and prey on red squirrels and other small mammals but will vary their diet with snowshoe hares, insects, birds, eggs, fruit and nuts. Breeding usually occurs July to August with young born in April. Litters average two to four and the newborns are six inches long, weighing only one ounce. They develop slowly and are about half of adult size by mid-July. By fall the young are independent and leave their mother to become solitary hunters. Marten could be present in the Yerrick Creek drainage. Fox (Vulpes vulpes) Red fox usually weigh between six and fifteen pounds, standing 16 to 18 inches high at the shoulder. The most common color is a rich red-gold, with black legs and feet. The chest and underparts are usually white with a long bushy tail also tipped in white. Other color variations include pure black and silver. Red fox are omnivorous. They appear to prefer mice and hares, but also feed upon birds, eggs, plants, berries, and insects. Breeding occurs February thru March and the pups are born in April to May. Litter size averages four pups. Females usually will produce a litter every year. The pups remain in the den for the first three or four weeks and continue to hunt from it for the next three months. The family will break up in the fall and each individual will goes its own way. Foxes may use the Yerrick Creek drainage. Black Bear (Ursus americanus) The term “black” used to describe this species is not entirely accurate. Black bears come in a variety of colors from brown to gray and the occasional cream, although black with a brown muzzle is the most common. Brown colored black bears are often confused with brown bears but normally Brown bears are much larger. Black bears also have a smaller, more pointed head with a straight profile. Brown bears have a more rounded head and dished-shaped face along with a distinctive hump on their shoulders that is lacking in the black bear. Average male black bears weigh between 180 to 200 pounds depending on the season and stand over two feet tall at the shoulder. Females are usually around 120 to 150 pounds also depending upon the season. Black bears are omnivorous (eat both meat and plants), although vegetation makes up a substantial portion of their diet. Their diet varies from vegetation in the spring to fish in some areas during the summer. Otherwise, their diet consists mostly of berries and insects. Breeding occurs June through July and the cubs are born in January or February, weighing only 8 to 10 ounces. Litter size varies from one to four, with twins being the most common. The cubs are weaned by September but will den with their mothers their second winter, after which they will be on their own. Females typically breed every year in good habitat. Black bears are typically dormant during the winter months. Denning times can vary depending on location, snow levels, and temperature. Like brown bears, their metabolism and temperature are lowered and their need for food and water are eliminated. Bears in colder climates will remain in their dens longer and males typically emerge before females. Black bear have been observed in and around the Yerrick Creek drainage. Brown Bear (Ursus arctos) Brown bears tend to be larger than black bears. Brown bears are considered the largest living land carnivore. Though polar bears can be larger, they are not considered to be land dwelling. Brown bear sizes vary depending on location, time of year, age and gender. Most male brown bears range from 500 to 900 pounds. Color varies greatly from black with silver tipped hair to blonde. Males tend to be darker than females and cubs often sport a white collar during their first summer. Although the same species, Alaskans typically refer to coastal bears as “browns” and interior bears as “grizzlies”. The grizzlies of the Tetlin Refuge are smaller and lighter in weight than those in southern and western Alaska. Grizzlies occur throughout the entire Refuge at a low density, but are more abundant along the foothills and mountains. Brown bears have a varied diet ranging from grasses in the spring, berries in the summer, and fish during the fall. Meat is not usually a major component of the bears’ diet but they will eat whatever they can catch which includes marmots, porcupines, squirrels, mice, moose, and caribou. Breeding occurs May thru July and the cubs are born in January / February, weighing only 8 to 10 ounces. Litter size varies from one to four, with twins being the most common. Most females nurse their young for two summers, and then wean the cubs during the third. Brown bears typically “hibernate” in dens during the winter months. Denning times can vary depending on location, snow levels, and temperature. While denning, the bears’ metabolism and temperature are lowered and their need for food and water are eliminated. Bears in colder climates remain in their dens longer and males typically emerge before females. It is possible Brown bears, or grizzlies, pass through Yerrick Creek in pursuit of forbs and game. Birds The Refuge provides habitat for 143 breeding and 47 migrating bird species (Bird Checklist - pdf) and serves as a major migration corridor for many of the bird species that are entering or leaving interior Alaska. Compared to the rest of Alaska, the diversity of landbirds is high because the Refuge is located within a major migration corridor and a number of species reach their northern range limit here. However, extreme winter weather sends most birds traveling south, leaving only about 25 resident species year round. The Refuge was set aside primarily for its unique waterfowl values. It has one of Alaska’s highest densities of nesting waterfowl and annually produces an estimated 35,000 to 65,000 ducklings. Spectacular migrations of lesser sandhill cranes, tundra and trumpeter swans occur each spring and fall. Up to 200,000 cranes, representing about one half of the world population, migrate through this corridor. The Refuge also provides habitat for an expanding population of trumpeter swans and for the largest concentration of nesting osprey in Alaska. Raptors such as bald eagles are common nesters along the major rivers and shorelines of larger lakes. Peregrine falcons can be seen once again as new pairs find local cliffs for nesting. Nine species of marsh and waterbirds, and 26 species of shorebirds occur on the refuge. Landbirds Tetlin Refuge has a comprehensive landbird monitoring program that is consistent with the International Partners in Flight Initiative. This includes maintaining migratory bird arrival dates, participating in the North American Migration Count, Breeding Bird Surveys, off-road point counts, and fall migration banding. In addition, a Christmas Bird Count is conducted each winter and an Upper Tanana Bird Festival is hosted by the Refuge in mid-May. Four Breeding Bird Surveys (BBS) routes in eastern interior Alaska are annually completed. Off-road point counts were established on the Refuge in 1994 as part of a pilot project for Boreal Partners in Flight. Seven routes are monitored each year. A fall migration banding station was established in 1993 seven miles east of Tok and has been operated daily in August and September each year. This long-term banding effort is part of a regional landbird monitoring program and helps to monitor landbird populations not adequately monitored by the Breeding Bird Survey. The most common species captured are: slate-colored junco, swainson’s thrush, Wilson’s warbler, ruby-crowned kinglet, myrtle (yellow-rumped) warbler, and orange-crowned warbler. Relatively few species of birds are residents on the Refuge. Gray jay, black-billed magpie, common raven, black-capped chickadee, boreal chickadee, and redpolls are the most common species with lesser numbers of the non-migratory owls and woodpeckers. White-winged crossbills are abundant during productive cone crop years. Spruce grouse, ruffed grouse, sharp-tailed grouse, and willow ptarmigan are uncommon breeders on the Refuge. Rock ptarmigan are rarely seen but may breed in the upper Cheslina River drainage. Sharp-tailed grouse have increased, especially in the Tok and Tetlin Village areas following the Tok River Fire in 1990. Raptors Thirteen species of hawks are known to occur on Tetlin Refuge. Usually present in small numbers, bald eagle, osprey, northern harrier, sharp-shinned hawk, red-tailed hawk, and American kestrel are confirmed breeders. Less frequently observed northern goshawk, golden eagle, merlin, peregrine falcon, and gyrfalcon are rare breeders on the Refuge. Rough-legged hawks are uncommon migrants. Turkey vultures and Swainson’s hawks are casual visitors. Six species of owls occur on the Refuge, the most common being the great horned owl. Northern hawk owls, great gray owls, and boreal owls can be fairly common some years. The short-eared owl is a migrant and casual summer breeder, while the snowy owl is a casual visitor in fall and winter. The American peregrine falcon is the only previously endangered species found on the Refuge. The population of this species/race has been increasing nation-wide and was de- listed in 1999. The first peregrine falcon nest on Tetlin Refuge was discovered in June 1994 along the Nabesna River nearly 100 river miles upstream from the closest known nest site. Recovering peregrine populations have increased their density within their nesting range in the Upper Tanana Valley in the last decade, doubling the number of territories in the last 4 years to 16 presently known above the Robertson River. Extensive raptor surveys have been completed annually since 1991. Most raptor nests are located along the rivers and wetlands. Waterfowl Green-winged teal, mallard, American wigeon, ring-necked duck, scaup (primarily lesser) and bufflehead are the most abundant ducks breeding on the Refuge. Smaller numbers of northern pintail, northern shoveler, Barrow’s goldeneye, common goldeneye, white-winged scoter, surf scoter, canvasback and blue-winged teal are known to breed here as well. Rarely sightings are made of common mergansers, redheads, ruddy ducks, gadwall and harlequin ducks which also breed in the area, or of long-tailed ducks which do not. An estimated 35,000 to 65,000 ducklings are produced on Tetlin Refuge each year. The Refuge lies along an important migration route for both Canada and greater white- fronted geese that migrate to and from the state. Occasionally snow geese and brant are seen during migration. Canada geese breed on the refuge in small numbers. The Refuge provides important habitat for migrating tundra and trumpeter swans during spring and fall. Over 200 trumpeter swans were banded and neck collared from 1983 to 1984 and from 1989 to 1995. Recoveries and sightings of banded trumpeter swans help identify their wintering habitat as being coastal wetlands and fields from the central coast of British Columbia to northern Puget Sound. Waterbirds Nine species of marsh and water birds occur on the Refuge with horned grebe, pacific loon, and red-necked grebe being the most common breeders. Common loons are rare breeders and red-throated loons are considered casual. A small number of sandhill cranes nest on the muskeg flats in the northern third of the refuge. During spring and fall migration, up to 200,000 sandhill cranes (one half of the entire world population) can pass through the Tanana River Valley. The numbers seen from year to year vary depending on weather conditions which affect their flight paths. The Upper Tanana Valley is one of the few places in Alaska where sora and American coot are found regularly. While some 26 species of shorebirds occur on the Refuge, most are migrants passing between wintering and breeding grounds. The most abundant breeding shorebird is the ubiquitous lesser yellowlegs. Common snipe are less abundant but widely distributed, while spotted sandpipers are common along watercourses. Red-necked phalaropes are often seen during fall migration. Mew and Bonaparte's gulls are common breeders. The American golden plover, upland sandpiper, and whimbrel breed in the alpine areas. Avian species of all types may pass through the Yerrick Creek drainage because of its proximity to the Tanana River. There are also a few wetlands within or adjacent to the drainage that may attract waterfowl and predators alike during the summer months. Cultural - Historical Resources A review of the Alaska Heritage Resource Survey (AHRS) documents and related data sources at the Alaska Office of History and Archaeology (OHA) for records of known AHRS sites and previous cultural resource investigations in or near the Areas of Potential Effect (APE) was conducted by a certified archaeologist. One site was found on the west side of Yerrick Creek (TNX-074) that will be along the access road and penstock route. This site can be avoided by project alignment. Study Plan Botanical Resources A wetland delineation of the project will be conducted. Aquatic Resources Fish surveys by Steve Grabacki are being conducted this summer and fall. Surveys are focused on Arctic Grayling, Dolly Varden, and Round Whitefish. This will be a multiyear baseline fisheries survey going from the summer 2008 to late winter of 2008- 2009. Gear to be used are minnow traps, hoop traps, fyke nets, gillnets, dip nets, spat collectors, etc. All specimens will be released alive. Studies will occur above, at, and downstream of the possible impoundment site. The objective in this first year of surveying is to examine for use by all life stages of fishes, including – summer residency, migratory pathway, over-wintering, spawning, rearing, etc. Three sampling trips are planned – a reconnaissance level survey in early summer (angling only), a full-scope sampling in late summer, and a late-winter examination of over-wintering habitat (in 2009). The first report will be submitted by the end of December 2008. Both Yerrick Creek and the drainage just west of Yerrick Creek, Cathedral Rapids Creek #1 will be surveyed. Cathedral Rapids Creek #1 will be surveyed for potential future consideration if more water is needed for electricity. This survey will give us a baseline on Cathedral Rapids Creek #1 so we will have advanced knowledge to make any future determination of its use. However, at this point in time we propose to only develop Yerrick Creek. Wildlife Resources We request input and guidance from the resource agencies, however, it is expected that certain species of mammal may utilize the project corridor and therefore attempt to cross project features. The project will remain in close proximity to the west side of Yerrick Creek as it parallels the creek between the impoundment and powerhouse. The penstock (pipe) will be passable because it will be buried along most or all of its length, allowing mammals, including hunters, access to and through the project site. Therefore, wildlife passage should not be an issue. In addition, this project is in the lower part of this drainage (but above the highway) and for that reason is less likely to be in important habitat as may be the case for further up the valley. We view this project as having limited impacts to wildlife in the area. Cultural – Historical Resources A review by an archaeologist has already been completed and the report will be submitted to SHPO for their review and comments. RESOURCES ADF&G, Biological Information Needs, Letter, April 7, 2008. Browne, Patricia, Findings of AHRS Data Review and Evaluation of Cultural Resources Potential for Hydroelectric Project Development…, June 5, 2008. Grabacki, Stephen, 2008-2009 Study Plan for Yerrick Creek and Cathedral Rapids Creek #1. June 2008. Gross, Jeff, ADF&G, Personal communication in which wildlife species were discussed for the project area, and in particular info on Dall Sheep hunting in area. May 2008. http://alaska.fws.gov/fisheries/endangered/listing.htm http://tetlin.fws.gov/ http://tetlin.fws.gov/wildlife/black_bear.htm http://tetlin.fws.gov/wildlife/birds.htm http://tetlin.fws.gov/wildlife/brown_bear.htm http://tetlin.fws.gov/wildlife/caribou.htm http://tetlin.fws.gov/wildlife/dall_sheep.htm http://tetlin.fws.gov/wildlife/fox.htm http://tetlin.fws.gov/wildlife/marten.htm http://tetlin.fws.gov/wildlife/moose.htm http://tetlin.fws.gov/wildlife/otter.htm http://tetlin.fws.gov/wildlife/snowshoe_hare.htm http://tetlin.fws.gov/wildlife/wolf.htm http://tetlin.fws.gov/wildlife/wolverine.htm http://alaska.fws.gov/fisheries/endangered/listing.htm DRAFT STUDY PLAN JULY 2008 July 22, 2008 To: All Agencies Regarding: Yerrick Creek Hydro Draft Study Plan – Version 2 Dear Agency Representatives: Enclosed is a revised draft study plan for your review for the Yerrick Creek Hydroelectric Project, located approximately 20 miles west of Tok on the Alaska Highway. A project description and map are included in the draft study plan. This plan incorporates ADF&G’s comments and provides more detail on what studies are being conducted. Please provide your comments by August 29, 2008. Thank you for your time. Sincerely, Glen D. Martin Project Manager glen.m@aptalaska.com (360) 385-1733 x122 Enc. (as stated) Cc: Deborah Rocque, USF&WS Victor Ross, COE Krissy Plett, DNR-Water Jim Vohden, ADNR Water Chris Milles, DNR-Land Tim Wingerter, DEC Jim Ferguson, ADF&G Fronty Parker, ADF&G Jeff Gross, ADF&G Todd Nichols, ADF&G Mac McLean, ADF&G Jim Durst, ADF&G Caroline Brown, ADF&G Judith Bittner, SHPO YERRICK CREEK HYDROELECTRIC PROJECT (REVISED) DRAFT STUDY PLAN 1.0 PROJECT DESCRIPTION APC proposes to construct a run-of-river hydroelectric project that will interconnect with the grid supplying electricity to the communities of Tetlin, Tok, Dot Lake, and Tanacross. This grid is presently wholly reliant upon diesel generation. APC is the certified utility for this area along the Alaska Highway and is within the boundaries of APC’s certificate from the Regulatory Commission of Alaska. This project is called the Yerrick Creek Hydroelectric Project. The project is located approximately 20 miles west of Tok on the Alaska Highway at Milepost 1339. Although APC’s existing transmission infrastructure follows the highway right-of-way past the project site, this infrastructure (conductor) will need to be upgraded to handle the load from the project. Project capacity is expected to be 2-3 megawatts (MW). Project features would include a small diversion structure, an approximately 11,000 foot long penstock, powerhouse with a single impulse turbine (Pelton or Turgo) and generator, tailrace, small substation, and transmission line to and along the Alaska Highway, as shown in Figure 1. The building season is short at this north latitude, so it will take two years to complete this project. This project not only will provide clean, renewable energy that will stabilize rates, but will provide a stable source of energy that can quickly come on line after power outages, which makes it one of the best renewable resources. The cost to maintain a hydro project is also significantly lower than diesel generation. The existing diesel generation plant in Tok will continue to supplement the grid as the hydro project is only expected to provide electricity for 100% of the load part of the year and down to approximately 10% of the load during low flow periods of the year, such as during the winter. This project will reduce the cost of electricity to the residents of Tetlin, Tok, Tanacross and Dot Lake who presently pay $0.36 per kWh. Once the hydroelectric project interties with the Tok grid, the cost per kWh will be reduced by approximately 20%. The environmental impacts, i.e. air pollution, noise pollution, spills, etc., of any self-generation will be significantly reduced by this intertie, as well as from generation at APC’s powerplant in Tok. During part of the year it is estimated the entire load can be carried by the hydroelectric project, and during the winter the use of diesel generation will supplement the hydroelectric project. This hydroelectric project will reduce fossil fuel consumption by approximately 509,800 gallons per year, which at 2007 prices is equivalent to $1,157,246 annually. The existing diesel plant in Tok, which supplies electricity to all four communities, would use fewer diesel generators to meet the remaining load, reducing labor and maintenance costs and the frequency of generator overhaul and replacement for a potential savings of $1,153,200 annually. At present usage levels, this hydroelectric project would save the residents of all four communities approximately $693,043 per year (2007). Lower energy costs would help stimulate development, both economically and home building. 2.0 Project Components The project facilities described herein are based on a preliminary evaluation of the site, and represent the maximum degree of resource development. The proposed project features are described in more detail below: Impoundment The project design for this run-of-river hydroelectric project include construction of either a concrete, steel, or other material impoundment structure. The impoundment structure is likely to be made of sheet piling to create a barrier that will impound enough water for an intake to remove it and generate electricity at the powerhouse. Due to the depth of the cobble expected in Yerrick Creek, it is not expected that the sheet pile will reach bedrock, Revised Draft Study Plan p. 2 Yerrick Creek Hydroelectric Project July 16, 2008 and therefore it is expected that some water will go subterranean under the impoundment structure and surface further down the creek. Penstock The penstock is estimated to be approximately 11,000 feet in length and would probably consist of a combination of HDPE and steel or iron pipe. The penstock is proposed to be buried along most if not all its length. The diameter of the penstock may be approximately 36-inches. The penstock would parallel the creek down to the powerhouse requiring some clearing along its right-of-way. Powerhouse The powerhouse would be a metal structure of approximately 30 x 40 feet with a height of approximately 25 feet. The powerhouse would contain the controls for the operation of the project, including switchgear, Pelton or Turgo impulse turbine, a generator rated at 2-3 MW, and controls for valves at the impoundment structure. After the water passes through the turbine it will fall into a tailrace that will discharge back into Yerrick Creek above the highway bridge that spans the creek. Access Road An access road would be constructed to the powerhouse from off the Alaska Highway. The road is expected to be less than a mile in length. Another access road would come down the west side of Yerrick Creek from the impoundment structure, due to its more moderate elevation changes, to the powerhouse site. The one lane access road width would be approximately 14-feet wide with frequent pullouts. Substation A small pad-mount step-up transformer will be adjacent to the powerhouse to adjust the voltage for the transmission line to Tok. Transmission Line The transmission line will go from the powerhouse step-up transformer to intertie with the Tok grid along the Alaska Highway, approximately one mile away. This would require approximately 20 vertical wood pole structures set about 300 feet apart. Land Ownership The enclosed Figure 1 is a project map showing property boundaries in relation to the project features. The project will be located on land managed by the State of Alaska and Tanacross, Inc., a Village Corporation. Revised Draft Study Plan p. 3 Yerrick Creek Hydroelectric Project July 16, 2008 Environmental Impacts Previous man-made land disturbance (old gas pipeline corridor paralleling the highway, which was once cleared of vegetation) has left a footprint on the environment that will reduce this projects impact by utilizing the corridor for part of the access road and powerhouse site. Impacts to wetlands will occur as areas along the access route are in muskeg. The access route will parallel the creek on its west side. It is estimated that approximately 5-6 acres of land would be disturbed, with possibly ¾’s being in muskeg and the creek. To minimize impacts, an erosion and sedimentation control plan will be implemented to confine impacts during construction, of which silt fencing and straw or hay bales would play a significant part, and repair after construction where possible. Construction methods, i.e. minimize the construction footprint, will also keep impacts to a minimum. Threatened, Endangered, or Under Consideration Species No species listed on the ADF&G or USF&WS websites as Threatened or Endangered or under consideration (http://www.adfg.state.ak.us/special/esa/esa_home.php) will be impacted by this project as they either reside or prefer habitat outside of the project area. DRAFT STUDY PLAN Existing Resources Part of the information presented here is from the Tetlin National Wildlife Refuge (east of the project) website, and hence the mention of Refuge throughout this description. The Refuge’s data is used because of its proximity to the project area and wealth of information available on indigenous species of the area, however, the Refuge’s geography is different then that of Yerrick Creek which is primarily a mountainous drainage whereas the Refuge is more lowlands. There was also a significant amount of information on the ADF&G website regarding hunting and trapping in Unit 12, which Yerrick Creek is within. Information from the ADF&G website is also incorporated into the description of resources in the Yerrick Creek area found below. Botanical Resources Boreal forest (taiga) and upland tundra are the dominant vegetation types in all of interior Alaska. In the alpine areas, dry, broad ridge tops are dominated by dryas dwarf scrub and ericaceous dwarf scrub tundra vegetation. Mesic to moist saddles, slopes, and snow-melt meadows support mesic graminoid herbaceous and open, low scrub vegetation. Rock- dominated sites support alpine herbs. Revised Draft Study Plan p. 4 Yerrick Creek Hydroelectric Project July 16, 2008 Aquatic Resources The Department of Natural Resources, Habitat Management Division, provided the following information in an April 7, 2008, letter to AP&T regarding the Yerrick Creek drainage. “Yerrick Creek provides habitat for a variety of non-anadromous fish species, including Arctic grayling, Dolly Varden, round whitefish, and slimy sculpin. Arctic grayling and round whitefish are fairly ubiquitous in Tanana River basin stream systems, but the presence of Dolly Varden in Yerrick Creek makes this stream somewhat unusual. “Fish presence and habitat near the mouth and in the lower reaches of Yerrick Creek (well downstream of the Alaska Highway) are poorly documented, although habitat for a variety of species including Arctic grayling, northern pike, burbot, round whitefish, lake chub, longnose sucker, and slimy sculpin occurs here. Stream flow in portions of Yerrick Creek in this reach are completely subsurface at times. If operated as run-of-river, the Yerrick Creek Hydropower project is unlikely to affect these downstream fish resources and habitats. “That portion of Yerrick Creek from downstream of the Alaska Highway to upstream of the Haines-Fairbanks Pipeline crossing has been the most surveyed for fish presence and use. Arctic grayling and Dolly Varden have been found present from the beginning of June through late August, and Arctic grayling through late November (under ice cover). Round whitefish were present in late summer. Even when this reach appears frozen, high quality water is typically flowing in at least one channel below the ice; adult aquatic invertebrates were hatching from a small channel under ice in the third week of March one year. Although Yerrick Creek flow apparently goes subsurface in various locations between the Alaska Highway and the Tanana River for much of most summers, the portion of the stream between the mountains and the subsurface flow appears to provide connected surface flow and habitat. “Adult and juvenile Arctic grayling and Dolly Varden have been captured upstream of the proposed diversion structure location up to where Yerrick Creek forks more than 6 miles above the Alaska Highway crossing. A small falls downstream of the fork is apparently not a fish barrier. Biologists suggested that this reach between the ridges may be used for grayling spawning and for grayling and Dolly Varden over-wintering habitats. Sheep hunters have reported seeing fish in stream portions in the upper part of the drainage that appeared to provide good habitat.” Wildlife Resources The Department of Natural Resources, Habitat Management Division, provided the following information in an April 7, 2008, letter to AP&T regarding the Yerrick Creek drainage. Revised Draft Study Plan p. 5 Yerrick Creek Hydroelectric Project July 16, 2008 “The Yerrick Creek drainage is used by a variety of big game species including moose, caribou, and Dall sheep, and is part of the Tok Management Area for Dall sheep. A significant amount of sheep hunting occurs in this drainage. Some sheep hunters have reported being able to walk up the Yerrick Creek streambed to access sheep country since the stream in portions was mostly gravel and rocks with a relatively small channel of water meandering through.” Yerrick Creek is located in Game Management Unit 12 (GMU-12). Information on the harvesting of these species was found on the ADF&G website. All these species benefit from a diverse plant community commonly created by forest fires. Wildlife agencies are now trying controlled burns and clear-cuts to improve habitat that not only benefits herbivores but also predators who feed on them. Dall Sheep (Ovis dalli) The Dall sheep is a stocky sheep that utilize nearly inaccessible, steep mountain slopes, ridges and meadows for feeding and resting. They are generally high country animals but sometimes occur in rocky gorges below timberline in Alaska. They are mostly white and weigh between 125 and 200 pounds. Male Dall sheep are called rams and are distinguished by massive curling, yellowish horns. The females, ewes, have shorter, more slender, slightly curved horns. Dall sheep are sometimes mistaken for mountain goats, however, the mountain goat has long fur and a beard, and small, slender, black horns that curve slightly backward. The management goals for the harvest of Dall sheep is being met, but will continue to be watched to make sure they are not over grazed.1 In RY02-RY03 the number of permits issued was reduced because hunters complained of overcrowding. Since then there have been fewer complaints. Yerrick Creek is one of the few drainages on the north side of the range that has provided historical access to Dall sheep hunting grounds (Cathedral Rapids Creeks and Sheep Creek being the others). For this reason, maintaining access to these hunting grounds without providing ‘improved’ access that could further stress the population would be the goal of project design. Gating any access road to the project would be the preferred method of maintaining access for hunters as exists today, although they would be able to hike up the road on foot to the projects impoundment site, but would not be able to drive up the drainage beyond what they presently can. This could be viewed as an impact by providing an easier hike into part of the drainage. Moose (Alces alces) Moose are the world's largest members of the deer family and are most abundant in recently burned areas that contain willow and birch shrubs, on timberline plateaus, and 1 Dall Sheep Management Report, 2005, ADF&G; www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt Revised Draft Study Plan p. 6 Yerrick Creek Hydroelectric Project July 16, 2008 along the major rivers of Southcentral and Interior Alaska. During fall and winter, moose consume large quantities of willow, birch, and aspen twigs. In the spring, moose eat a variety of foods, particularly sedges, equisetum (horsetail), pond weeds, and grasses. During summer, moose feed on vegetation in shallow ponds, forbs, and the leaves of birch, willow, and aspen. Moose are long-legged and heavy bodied with a "bell" or dewlap under the chin; only the bulls have antlers. Their color ranges from golden brown to almost black, depending upon the season and the age of the animal. The hair of newborn calves is generally red- brown fading to a lighter rust color within a few weeks. Moose are common in this area and are also hunted in this and the adjoining drainages. Moose in this GMU have had lower harvest levels than desired by ADF&G so that wolf and bear harvesting quotas may be increased to reduce the moose’s major predators. Yerrick Creek is brushy habitat, providing food for Moose including the few small lakes and marshes approximately 0.5 miles west of the creek. Moose may be temporarily impacted by this project from construction activity, but should otherwise not be impacted. The penstock (pipe) will be primarily buried along its route and will not be a barrier to the moose’s movement through the area. Caribou (Rangifer tarandus) All caribou and reindeer throughout the world are considered to be the same species, but there are 7 subspecies, two of which occur in Alaska: barren ground and woodland. Caribou have special adaptations that allow them to survive their harsh arctic environment. Long legs and broad, flat hooves allow them walk on snow, and a dense woolly undercoat overlain by stiff, hollow guard hairs helps keep them warm. Caribou are also the only member of the deer family in which both sexes grow antlers. Antlers of adult bulls are large and massive; those of adult cows are much shorter and are usually more slender. In late fall, caribou are clove-brown with a white neck, rump, and feet and often have a white flank stripe. Weights of adult bulls average 350 to 400 pounds and females average 175 to 225 pounds. The caribou present in the Yerrick Creek area, which is in GMU 12, are the Macomb caribou herd (MCH). Harvest of the MCH has remained below the harvest objective due to the small size of the herd and the slow increase in herd size with the present management plan. An increase in wolf take was approved in 1995 in an effort to reduce the MCH’s main predatory species. The MCH also uses the lowlands of the Tanana River valley as winter range.2 According to ADF&G, Caribou are known to pass through the Yerrick Creek drainage.3 Project construction should be the only factor to impact Caribou and this should be a temporary impact from noise and activity. 2 www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt 3 Personal communication between AP&T and Jeff Gross, Tok ADF&G Office, May 2008. Revised Draft Study Plan p. 7 Yerrick Creek Hydroelectric Project July 16, 2008 Gray (Timber) Wolf (Canis lupus) Wolves are described as having the greatest natural range of any terrestrial mammal, excluding humans. Most wolves in Alaska weigh between 85 and 115 pounds with most females rarely reaching more than 110 pounds. Color varies greatly from pure black to almost white. Wolves in southern Alaska tend to be darker and slightly smaller than those in the Arctic. Wolves are skilled hunters and prey on a variety of species including moose, caribou, hares, beaver, fish, mice and other small mammals. Most wolves hunt and live in packs that range from two to thirty wolves; six or seven is the average. “Historically, the Unit 12 wolf population fluctuated dramatically in response to federal and state predator control programs, ungulate prey abundance, and harvest. The current wolf control program in Unit 12, projected to last 5 years, began in January 2005 in an 1190-mi² area north of the Alaska Highway and west of the Taylor Highway. The area was expanded in 2006 to include all portions of Unit 12 north of the Alaska Highway.” “The Unit 12 wolf population increased by an estimated 22% from RY93-RY95 to RY96- RY98. A comparable estimate was not obtained for RY02-RY04, but results of surveys conducted in portions of Unit 12 and adjacent Unit 20E indicate wolf numbers increased during RY99-RY04, likely as a result of increased survival and productivity associated with an increased prey base and harvest below sustainable rates. Harvest rates averaged 22% during RY96-RY98 and the same prey base, wolf numbers likely continued to increase during RY02-RY04. Annual harvest rates of >30% would likely be required to preclude wolf population growth in Unit 12. “Prior to 1998 and the arrival of wintering Nelchina and Mentasta caribou herds and the increase in the Unit 12 wolf population, the moose population in Unit 12 increased about 5% annually (Gardner 2002a). The Unit 12 moose population in Unit 12 stopped growing during the period of wolf population growth. Moose are the only ungulate prey available to much of the Unit 12 wolf population between April and mid October. Since 1998 however, northern Unit 12 packs have had access to large numbers of caribou during the winter. Packs in central Unit 12 can also access large numbers of caribou in October, March, and April, but since 1997 only a few caribou winter in the central portion of the unit. The southern unit packs rely primarily on moose year-round. “During the 1980’s the Unit 12 wolf population was lightly harvested. During the 1990’s the annual wolf harvest in Unit 12 varied and in some years was the primary limiting factor to the wolf population. During RY99-RY01, harvest was light but caused area- specific declines in wolf numbers. During RY02-RY04 harvest was light and did not limit the wolf population. Harvest rates in the remote areas are dependent on fur price and weather conditions. Along the road system, trapping pressure is high especially around communities and wolves are regulated at lower numbers. Revised Draft Study Plan p. 8 Yerrick Creek Hydroelectric Project July 16, 2008 “Most area residents desire some type of intensive management to benefit Unit 12 moose. Area residents support management that incorporates a combination of area-specific wolf reduction programs conducted by the public and habitat enhancement programs conducted by agencies. Modeling predicts this management regime could cause a low to moderate increase in the moose population. However, this level of management is not expected to attain a high-density moose population. This management is feasible because the areas most trapped for wolves are also the areas most hunted for moose. The primary challenge will be to design a habitat enhancement program that is economically feasible, and is supported by the department and the public.”4 According to ADF&G, wolves are trapped in the Yerrick Creek basin. This project should only have a temporary impact related to the noise and activity of construction. Black Bear (Ursus americanus) The term “black” used to describe this species is not entirely accurate. Black bears come in a variety of colors from brown to gray and the occasional cream, although black with a brown muzzle is the most common. Brown colored black bears are often confused with brown bears but normally Brown bears are much larger. Black bears also have a smaller, more pointed head with a straight profile. Brown bears have a more rounded head and dished-shaped face along with a distinctive hump on their shoulders that is lacking in the black bear. Average male black bears weigh between 180 to 200 pounds depending on the season and stand over two feet tall at the shoulder. Females are usually around 120 to 150 pounds also depending upon the season. Black bears are omnivorous (eat both meat and plants), although vegetation makes up a substantial portion of their diet. Their diet varies from vegetation in the spring to fish in some areas during the summer. Otherwise, their diet consists mostly of berries and insects. “Historically, human use of black bears in Unit 12 was relatively low despite liberal hunting regulations and moderate bear population levels. Most black bear hunting occurred along the highway system and the Tanana River. There was no closed season for black bears in Unit 12, and the bag limit was 3 bears. ” “In 1992 interest in black bear hunting increased, particularly at bait stations, and has remained relatively high. Most bears are taken by local residents in the spring and are an important meat source. Even before regulations were implemented requiring the salvage of black bear meat from 1 January to 31 May, meat was salvaged from over 90% of all black bears harvested by local residents. In the fall most black bears were harvested incidentally during hunts for other species.” Black bear have been observed in and around the Yerrick Creek drainage. 4 www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt Revised Draft Study Plan p. 9 Yerrick Creek Hydroelectric Project July 16, 2008 Brown Bear (Ursus arctos) Brown bears tend to be larger than black bears. Brown bears are considered the largest living land carnivore. Though polar bears can be larger, they are not considered to be land dwelling. Brown bear sizes vary depending on location, time of year, age and gender. Most male brown bears range from 500 to 900 pounds. Color varies greatly from black with silver tipped hair to blonde. Males tend to be darker than females and cubs often sport a white collar during their first summer. Although the same species, Alaskans typically refer to coastal bears as “browns” and interior bears as “grizzlies”. The grizzlies of the Tetlin Refuge are smaller and lighter in weight than those in southern and western Alaska. Grizzlies occur throughout the entire Refuge at a low density, but are more abundant along the foothills and mountains. Brown bears have a varied diet ranging from grasses in the spring, berries in the summer, and fish during the fall. Meat is not usually a major component of the bears’ diet but they will eat whatever they can catch which includes marmots, porcupines, squirrels, mice, moose, and caribou. Brown bears are distributed throughout most of Unit 12. As with the black bear population, brown bears have liberal hunting management objectives to maintain or reduce their numbers in order to improve moose survival, the preferred game meat by residents. Hunting for brown bears has increased with the liberalization of the hunting season. Brown bears most likely utilize the Yerrick Creek area. Small Furbearers Small furbearers present in the Yerrick Creek basin and historically or currently trapped include lynx, wolverine, marten, mink, coyote, and red fox.5 “Marten and lynx are the most economically important furbearers in Units 12 and 20E. During population highs, muskrats are also economically and culturally important in Unit 12. Beavers are an important subsistence resource to Northway residents but are lightly trapped in most of the area. Little trapping effort is spent on coyotes, red foxes, mink, river otters, ermine, red squirrels, and wolverines because of low pelt values, low abundance, or difficulty and expense of trapping.”6 Current management plans for Unit 12 to improve furbearer habitat is to conduct burns and clear-cuts to increase the diversity of habitat. Lynx (Lynx canadensis) The lynx is the only cat native to Alaska and is known to be in Unit 12. Lynx occur over most of northern North America (though their numbers in the northern continental United States have been greatly reduced) and throughout Alaska except the Aleutian islands, Kodiak archipelago, the islands of the Bering Sea and some islands of Prince William Sound and Southeast Alaska. Because they are shy and unobtrusive animals, people think 5 July 1, 2008, letter from ADF&G. 6 www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt Revised Draft Study Plan p. 10 Yerrick Creek Hydroelectric Project July 16, 2008 that lynx are scarce. In Alaska, however, they are commonly seen during long periods of summer daylight, especially during years that they are abundant. “Link” is a common local name for lynx in Alaska and the Yukon. Lynx inhabit much of Alaska's forested terrain and use a variety of habitats, including spruce and hardwood forests, and both subalpine and successional communities. The primary prey of lynx in most areas is the snowshoe hare, which undergoes an 8-11 year cycle of abundance. This cycle appears to be caused by the interaction of hares with their food and predators. Lynx numbers fluctuate with those of hares and other small game, but lag one or two years behind. Although snowshoe hares are an important prey for lynx, when they are scarce lynx use other food sources more extensively during these periods. Other small prey such as grouse, ptarmigan, squirrels, and microtine rodents are regularly taken. Lynx are also known to prey on caribou, Dall sheep, and foxes, especially during periods of scarcity. Since the early 1970s, lynx pelts have increased in value and may bring from $200 to $500. Their high value has led to increased trapping pressure and concern among trappers that lynx harvest should be regulated more closely. However, lynx numbers and harvest began to increase in Unit 12 following the cyclic low in RY03. Lynx pelt prices increased and were adequate for most trappers. In combination with the upswing of the lynx cycle, increased lynx pelt prices could begin to influence trapper effort. Harvest of lynx is currently more relaxed in the management plan.7 Marten (Martes americana) The long, beautiful, chocolate brown coat of marten lead to its nickname: American Sable. A streak of lighter fur usually runs from the throat onto the chest. They have a fox-like face with broad rounded ears and unlike other members of the weasel family, a long bushy tail. Male marten grow 10 to 25 inches long plus an 8-inch tail and weigh up to 3 pounds. Females are substantially smaller. Marten are mostly nocturnal and spend a great deal of their time in trees. They inhabit mature conifer forests and prey on red squirrels and other small mammals but will vary their diet with snowshoe hares, insects, birds, eggs, fruit and nuts. Historically in Unit 12 marten trapping contributed most of the income for area trappers and is considered the most sought after furbearer due to the increase in fur value. Trapper information indicates that marten declined to moderate-to-low numbers during RY03-RY05. However, no regulatory changes are planned for marten harvesting.8 7 www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt 8 www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt Revised Draft Study Plan p. 11 Yerrick Creek Hydroelectric Project July 16, 2008 Wolverine (Gulo gulo) Wolverines are among the least understood large carnivores in North America and the largest land-dwelling member of the weasel family. Most wolverines weigh 15 to 45 pounds and stand 15 to 18 inches at the shoulder. Females are smaller than males. Their coats are glossy dark brown with two pale lateral stripes converging at the base of the tail. Wolverine heads are gray with black muzzles, short ears, and dark eyes. They are described as having a low-slung body with powerful legs and large, curved claws. Wolverines are omnivorous (eat both meat and plants) and will eat anything from berries to moose. They also feed on small mammals such as voles, squirrels, and hares. Wolverines appear to occur at low density levels in the Upper Tanana Valley. They are primarily found in the foothills and mountainous areas where access is limited. Wolverine harvest was low in Unit 12, with the majority harvested by a few area trappers who selected for wolverine due to their high market value relative to other furbearer species. No change was recommended in their management plan.9 River (Land) Otter (Lontra canadensis) River otters have a powerful, low-slung, slender body and flattened heads. They have a tapered tail, short legs, and webbed feet. Large males can grow to almost five feet long and stand 9 to 10 inches high at the shoulder. Most river otters weigh between 15 and 35 pounds with females being about a quarter smaller than males. The fur is very dense and with shades of brown that are distinctively lighter on the underparts, chin, and throat. River otters eat mainly fish but also consume a variety of foods including shellfish, insects, frogs, birds, eggs, small mammals, and vegetation. They are mostly aquatic but will travel distances over land to reach another stream or lake. River otters are also social and tend to travel in pairs or larger groups. River otter populations in Unit 12 were low due to a lack of suitable habitat. Trappers seldom selected for river otters due to low fur prices and the difficulty of catching them.10 Fox (Vulpes vulpes) Red fox usually weigh between six and fifteen pounds, standing 16 to 18 inches high at the shoulder. The most common color is a rich red-gold, with black legs and feet. The chest and underparts are usually white with a long bushy tail also tipped in white. Other color variations include pure black and silver. Red fox are omnivorous. They appear to prefer mice and hares, but also feed upon birds, eggs, plants, berries, and insects. Red fox populations in Unit 12 show indications of 9 www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt 10 www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt Revised Draft Study Plan p. 12 Yerrick Creek Hydroelectric Project July 16, 2008 being stable at moderate-to-high levels. Little trapping effort is spent on red foxes most likely due to low pelt prices and expense to trap.11 Snowshoe Hare (Lepus americanus) Snowshoe hares average 18 to 20 inches in length and weigh three to four pounds. Their summer coats are yellowish to grayish brown with white underparts, and the tail is brown on top. During the winter, their coat is replaced by white fur, but the hair is dusky at the base with a gray underfur. Snowshoes’ ears are dark at the tip. Hares are found in mixed spruce forests, wooded swamps, and brushy areas. They feed on a variety of vegetation including grasses, buds, twigs, leaves, needles, and bark. Snowshoe hares travel on well-established trails or runways at all times of the year. Hare populations in Unit 12 cycle every 8 to 11 years. Hare population fluctuations are closely related to predator populations. Avian Species The Refuge provides habitat for 143 breeding and 47 migrating bird species (Bird Checklist - pdf) and serves as a major migration corridor for many of the bird species that are entering or leaving interior Alaska. Compared to the rest of Alaska, the diversity of landbirds is high because the Refuge is located within a major migration corridor and a number of species reach their northern range limit here. However, extreme winter weather sends most birds traveling south, leaving only about 25 resident species year round. The Refuge was set aside primarily for its unique waterfowl values. It has one of Alaska’s highest densities of nesting waterfowl and annually produces an estimated 35,000 to 65,000 ducklings. Spectacular migrations of lesser sandhill cranes, tundra and trumpeter swans occur each spring and fall. Up to 200,000 cranes, representing about one half of the world population, migrate through this corridor. The Refuge also provides habitat for an expanding population of trumpeter swans and for the largest concentration of nesting osprey in Alaska. Raptors such as bald eagles are common nesters along the major rivers and shorelines of larger lakes and nesting pairs have been observed along the Tanana River. Peregrine falcons can be seen once again as new pairs find local cliffs for nesting. Nine species of marsh and waterbirds, and 26 species of shorebirds occur on the refuge. Terrestrial Avian Species Tetlin Refuge has a comprehensive landbird monitoring program that is consistent with the International Partners in Flight Initiative. This includes maintaining migratory bird arrival dates, participating in the North American Migration Count, Breeding Bird 11 www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt Revised Draft Study Plan p. 13 Yerrick Creek Hydroelectric Project July 16, 2008 Surveys, off-road point counts, and fall migration banding. In addition, a Christmas Bird Count is conducted each winter and an Upper Tanana Bird Festival is hosted by the Refuge in mid-May. Four Breeding Bird Surveys (BBS) routes in eastern interior Alaska are annually completed. Off-road point counts were established on the Refuge in 1994 as part of a pilot project for Boreal Partners in Flight. Seven routes are monitored each year. A fall migration banding station was established in 1993 seven miles east of Tok and has been operated daily in August and September each year. This long-term banding effort is part of a regional landbird monitoring program and helps to monitor landbird populations not adequately monitored by the Breeding Bird Survey. The most common species captured are: slate-colored junco, swainson’s thrush, Wilson’s warbler, ruby-crowned kinglet, myrtle (yellow-rumped) warbler, and orange-crowned warbler. Relatively few species of birds are residents on the Refuge. Gray jay, black-billed magpie, common raven, black-capped chickadee, boreal chickadee, and redpolls are the most common species with lesser numbers of the non-migratory owls and woodpeckers. White-winged crossbills are abundant during productive cone crop years. Spruce grouse, ruffed grouse, sharp-tailed grouse, and willow ptarmigan are uncommon breeders on the Refuge. Rock ptarmigan are rarely seen but may breed in the upper Cheslina River drainage. Sharp-tailed grouse have increased, especially in the Tok and Tetlin Village areas following the Tok River Fire in 1990. Raptors Thirteen species of hawks are known to occur on Tetlin Refuge. Usually present in small numbers, bald eagle, osprey, northern harrier, sharp-shinned hawk, red-tailed hawk, and American kestrel are confirmed breeders. Less frequently observed northern goshawk, golden eagle, merlin, peregrine falcon, and gyrfalcon are rare breeders on the Refuge. Rough-legged hawks are uncommon migrants. Turkey vultures and Swainson’s hawks are casual visitors. Six species of owls occur on the Refuge, the most common being the great horned owl. Northern hawk owls, great gray owls, and boreal owls can be fairly common some years. The short-eared owl is a migrant and casual summer breeder, while the snowy owl is a casual visitor in fall and winter. The American peregrine falcon is the only previously endangered species found on the Refuge. The population of this species/race has been increasing nation-wide and was de- listed in 1999. The first peregrine falcon nest on Tetlin Refuge was discovered in June 1994 along the Nabesna River nearly 100 river miles upstream from the closest known nest site. Recovering peregrine populations have increased their density within their nesting range in the Upper Tanana Valley in the last decade, doubling the number of territories in the last 4 years to 16 presently known above the Robertson River. Revised Draft Study Plan p. 14 Yerrick Creek Hydroelectric Project July 16, 2008 Extensive raptor surveys have been completed annually since 1991. Most raptor nests are located along the rivers and wetlands. Waterfowl Green-winged teal, mallard, American wigeon, ring-necked duck, scaup (primarily lesser) and bufflehead are the most abundant ducks breeding on the Refuge. Smaller numbers of northern pintail, northern shoveler, Barrow’s goldeneye, common goldeneye, white-winged scoter, surf scoter, canvasback and blue-winged teal are known to breed here as well. Rarely sightings are made of common mergansers, redheads, ruddy ducks, gadwall and harlequin ducks which also breed in the area, or of long-tailed ducks which do not. An estimated 35,000 to 65,000 ducklings are produced on Tetlin Refuge each year. The Refuge lies along an important migration route for both Canada and greater white- fronted geese that migrate to and from the state. Occasionally snow geese and brant are seen during migration. Canada geese breed on the refuge in small numbers. The Refuge provides important habitat for migrating tundra and trumpeter swans during spring and fall. Over 200 trumpeter swans were banded and neck collared from 1983 to 1984 and from 1989 to 1995. Recoveries and sightings of banded trumpeter swans help identify their wintering habitat as being coastal wetlands and fields from the central coast of British Columbia to northern Puget Sound. Waterbirds Nine species of marsh and water birds occur on the Refuge with horned grebe, pacific loon, and red-necked grebe being the most common breeders. Common loons are rare breeders and red-throated loons are considered casual. A small number of sandhill cranes nest on the muskeg flats in the northern third of the refuge. During spring and fall migration, up to 200,000 sandhill cranes (one half of the entire world population) can pass through the Tanana River Valley. The numbers seen from year to year vary depending on weather conditions which affect their flight paths. The Upper Tanana Valley is one of the few places in Alaska where sora and American coot are found regularly. While some 26 species of shorebirds occur on the Refuge, most are migrants passing between wintering and breeding grounds. The most abundant breeding shorebird is the ubiquitous lesser yellowlegs. Common snipe are less abundant but widely distributed, while spotted sandpipers are common along watercourses. Red-necked phalaropes are often seen during fall migration. Mew and Bonaparte's gulls are common breeders. The American golden plover, upland sandpiper, and whimbrel breed in the alpine areas. Avian species of all types may pass through the Yerrick Creek drainage because of its proximity to the Tanana River. There are also a few wetlands within or adjacent to the drainage that may attract waterfowl and predators alike during the summer months. Revised Draft Study Plan p. 15 Yerrick Creek Hydroelectric Project July 16, 2008 Cultural - Historical Resources A review of the Alaska Heritage Resource Survey (AHRS) documents and related data sources at the Alaska Office of History and Archaeology (OHA) for records of known AHRS sites and previous cultural resource investigations in or near the Areas of Potential Effect (APE) was conducted by a certified archaeologist. One site was found on the west side of Yerrick Creek (TNX-074) that will be along the access road and penstock route. This site can be avoided by project alignment. SHPO is being consulted for clearance. STUDY PLAN Water Resources Water quality sampling by Travis/Peterson Environmental Consulting-Anchorage is occurring over one year on a more or less quarterly basis. A stream gage was installed in Yerrick Creek in May 2007. A table showing the flow data over one year is enclosed. The gage will remain in place. An analysis of what the flow regime might be in the bypass reach during project operations has yet to be done. Botanical Resources A wetland delineation and threatened, endangered, and sensitive (TES) plant species survey of the project will be conducted in August 2008 by HDR out of Anchorage. Aquatic Resources Fish surveys by Steve Grabacki are being conducted this summer, fall, and next spring. Surveys are focused on Dolly Varden, Arctic grayling, and round whitefish. This will be a multiyear baseline fisheries survey going from the summer 2008 to late winter of 2008- 2009. Gear to be used are angling, electrofishing, minnow traps, hoop traps, fyke nets, gillnets, and dip nets, as appropriate to local conditions. All specimens will be released alive. Studies will occur above, at, and downstream of the possible impoundment site to the powerhouse site. The objective in this first year of surveying is to examine the habitat for use by all life stages of fishes, including – summer residency, migratory pathway, over-wintering, spawning, rearing, etc. Four or five sampling trips are planned – a reconnaissance level survey in early summer (angling only) was already accomplished, a full-scope sampling in late summer, another sampling shortly before freeze-up, and a spring sampling shortly after break-up. If appropriate, a late-winter examination of over-wintering habitat (in 2009) might be conducted. The first report will be submitted by the end of December 2008. Until fish habitat has been described in the bypass reach, an analysis of instream flows needed in the bypass reach cannot be conducted. Revised Draft Study Plan p. 16 Yerrick Creek Hydroelectric Project July 16, 2008 Both Yerrick Creek and the drainage just west of Yerrick Creek, Cathedral Rapids Creek #1 will be surveyed. Cathedral Rapids Creek #1 will be surveyed for potential future consideration if more water is needed for electricity. This survey will give us a baseline on Cathedral Rapids Creek #1 so we will have advanced knowledge to make any future determination of its use. However, at this point in time we propose to only develop Yerrick Creek. Wildlife Resources Wildlife is not expected to be significantly impacted by this project, either by construction or operation. Species that use the Yerrick Creek area are not considered threatened, endangered, or listed species of concern. A literature search conducted does not point to any TES using this basin, although some may occasionally pass through during migration. Of the many species that do use the Yerrick Creek area, some are hunted for their meat (moose, caribou, Dall sheep, black and brown bear), and trapped for their pelts (lynx and marten). There will be a minimal loss of habitat types from project features such as the access road/penstock route, powerhouse site with staging area for materials, and the impoundment site. The staging area for materials at the powerhouse will be in or near the gas pipeline clearing near the highway, which should minimize vegetative clearing. The project will remain in close proximity to the west side of Yerrick Creek as it parallels the creek between the impoundment and powerhouse. As desired in the ADF&G July 1, 2008, letter, the penstock and access road will remain a minimum of 66 feet from the creek accept when intersecting with the impoundment structure or powerhouse. The penstock (pipe) will be passable because it will be buried along most or all of its length, allowing mammals, including hunters, access to and through the project site, eliminating wildlife passage as an issue. We view this project as having limited impacts to wildlife in the area. The main concern would be whether this project will provide easier vehicular access into this basin for hunters and trappers, which could place more pressure on wildlife. We are interested in discussing methods to minimize this potential impact. Birdlife is not expected to be significantly impacted due to the limited nature of the clearing needed (15 feet wide access road / penstock route) although there could be some loss of habitat. Cultural – Historical Resources A review by an archaeologist has already been completed for the project site and the report was submitted to SHPO for their review and comments. Revised Draft Study Plan p. 17 Yerrick Creek Hydroelectric Project July 16, 2008 RESOURCES ADF&G, Biological Information Needs, Letter, Robert F. McLean, April 7, 2008. ADF&G, Draft Study Plan Comments, Letter, Robert F. McLean, July 1, 2008. Browne, Patricia, Findings of AHRS Data Review and Evaluation of Cultural Resources Potential for Hydroelectric Project Development…, June 5, 2008. Grabacki, Stephen, 2008-2009 Study Plan for Yerrick Creek and Cathedral Rapids Creek #1. June 2008. Gross, Jeff, ADF&G, Personal communication in which wildlife species were discussed for the project area, and in particular info on Dall Sheep hunting in area. May 2008. http://alaska.fws.gov/fisheries/endangered/listing.htm http://tetlin.fws.gov/ http://tetlin.fws.gov/wildlife/black_bear.htm http://tetlin.fws.gov/wildlife/birds.htm http://tetlin.fws.gov/wildlife/brown_bear.htm http://tetlin.fws.gov/wildlife/caribou.htm http://tetlin.fws.gov/wildlife/dall_sheep.htm http://tetlin.fws.gov/wildlife/fox.htm http://tetlin.fws.gov/wildlife/marten.htm http://tetlin.fws.gov/wildlife/moose.htm http://tetlin.fws.gov/wildlife/otter.htm http://tetlin.fws.gov/wildlife/snowshoe_hare.htm http://tetlin.fws.gov/wildlife/wolf.htm http://tetlin.fws.gov/wildlife/wolverine.htm http://www.adfg.state.ak.us/pubs/notebook/furbear/lynx.php Revised Draft Study Plan p. 18 Yerrick Creek Hydroelectric Project July 16, 2008 http://www.wildlife.alaska.gov/index.cfm?adfg=pubs.mgt Revised Draft Study Plan p. 19 Yerrick Creek Hydroelectric Project July 16, 2008 YERRICK CREEK STREAM GAGE01020304050607080901001101201301406/1/077/1/078/1/079/1/0710/1/0711/1/0712/1/071/1/082/1/083/1/084/1/085/1/086/1/087/1/08DATESTAGE, INCHES and FLOW, CFS-60.00-40.00-20.000.0020.0040.0060.0080.00TEMPERATURE, °FRaw StageAdjusted StageInstantaneous FlowAverage Daily FlowTemperature ADF&G COMMENTS ON DRAFT STUDY PLAN STUDIES ON-GOING OR COMPLETED B ROWNE R ESEARCH Patricia Browne 446 East 23 Ave. Anchorage, AK 99503 patty99503@yahoo.com Thursday, June 05, 2008 Glen Martin Project Manager Alaska Power & Telephone Company P.O. Box 3222 Port Townsend, WA 98368 (360) 385-1733 x 122 Subject: Findings of AHRS Data Review and Evaluation of Cultural Resources Potential for Hydroelectric Project Development in the Yerrick Creek and Cathedral Rapids Creek No. 1 Drainages near Tok, Alaska. Dear Mr. Martin, As per our agreement, I have reviewed Alaska Heritage Resource Survey (AHRS) documents and related data sources at the Alaska Office of History and Archaeology (OHA) for records of known AHRS sites and previous cultural resource investigations in or near the Areas of Potential Effect (APE) for the Alaska Power & Telephone Company’s two alternatives. These alternatives are: • Yerrick Creek Drainage: the main project drainage, located approximately 20 miles west of Tok, Alaska, crossing beneath the Alaska Highway and flowing into the Tanana River north of Moon Lake. The project area is located along that part of the drainage south of the highway. • Cathedral Rapids Creek No. 1 Drainage: located to the west of and adjacent to Yerrick Creek Drainage, crossing beneath the Alaska Highway and flowing into the Tanana River just north of Cathedral Rapids. Prior to AHRS review, I examined area maps, aerial photos, and property records for the Area of Potential Effect (APE). The records research, conducted in consultation with OHA staff, was conducted to determine whether known potentially significant historic and/or prehistoric sites, historic buildings or structures were located in or near the APE. AHRS Sites: Four known AHRS sites are located within approximately five miles of the proposed project areas (see attached maps), but only two of these are within close proximity of the project. TNX-075 and TNX-076 are located outside and several miles west of the project area near the Alaska Highway. These sites are comprised of historic debris scatters that probably postdate highway construction. It is unlikely that either site is eligible for the National Register of Historic Places. TNX-030, the remains of a cold war era White Alice facility, is located on the east side of the Cathedral Rapids Creek No. 1 Drainage approximately 0.3 miles west of the proposed penstock associated with that alternative. It is outside the APE for the penstock as depicted on project maps. The site was documented by Corps of Engineers archaeologist G.L. Reynolds in 1988 and determined eligible for the National Register of Historic Places. TNX-074, a partially collapsed log cabin and debris scatter, is located on the west side of Yerrick Creek opposite the Yerrick Creek penstock route. The cabin is believed to have been associated with a trapline and possibly constructed around 1901 at the time of the Tanacross settlement. A terminal date is believed to have been around 1954. A determination of eligibility for the National Register of Historic Places has not been completed for this site, and the AHRS card does not contain enough information in itself to complete a determination. The site is outside the area of direct effect of the penstock route, provided that the penstock remains on the east side of Yerrick Creek as depicted on project maps. No known sites are recorded in the proposed impoundment area, which probably has low potential for cultural sites due to its rugged relief. In summary, there are no known AHRS sites within the APE of the penstock or access road components as currently depicted on project maps. TNX-074 is the closest known site to a project component (the Yerrick Creek penstock), but is separated from the project corridor by Yerrick Creek. Previous Investigations: Records of two previous investigations in the vicinity of the project were found at the Alaska Office of History and Archaeology. One of the investigations was a short literature review conducted on behalf of Alaska Power and Telephone Co. by archaeologist Mike Kunz (letter report, 4/19/90). His review focused on a disturbed section of the Alaska Highway corridor in T19N/R9E, Sections 30-32, and was done in conjunction with a proposed cable relocation project. The other investigation was a large-scale 2001 archaeological reconnaissance conducted by Northern Land Use Research in conjunction with planning for a natural gas pipeline route (NLUR 2002). It was this study that resulted in the discovery of TNX-074, TNX- 075, and TNX-076. While records indicate that NLUR was issued a State permit to conduct investigations within the townships/ranges that encompass the APE for this hydroelectric project, the exact location of the NLUR survey effort could not be ascertained. While sites discovered as a result of this investigation are abstracted in the AHRS, detailed information (such as the exact survey area) and proprietary project reports have not been released by the consortium of companies that contracted NLUR. Findings: Based on my review of existing data within and adjacent to the APE, it is my professional opinion that the proposed undertaking will have no effect on known properties that are on or eligible for the National Register of Historic Places. Based on an examination of maps and aerial photos, the lower portions of Yerrick Creek and Cathedral Rapids Creek No. 1 appear to offer at least moderate potential for locating historic resources, while the proposed impoundment area appears to hold low potential. Sincerely, Patricia Browne SEPTEMBER 2008 FISH SURVEYS IN YERRICK CREEK DRAFT REPORT WITHOUT ANALYSIS – JUST RAW DATA Report of Fish Sampling – DRAFT 22 September 2008 Yerrick Creek Stephen T. Grabacki, FP-C The two creeks were examined but not sampled 6-7 June 2008. Fish habitat was characterized, and the GPS locations of possible fish-bearing pools were recorded. Sampling was conducted 3-4 September 2008, with electrofisher + bag seine (the electrofisher was used to herd the fish into the bag seine, rather than stunning them), and minnow traps baited with commercially cured salmon eggs and left to soak overnight. YERRICK CREEK (YER) Pool below impoundment site, 03SEP08 Waypoint 008, elevation: 2,263 ft 63°20.589’N 143°37.684’W Electrofished 2 channels – * main channel, ~80 yards: no fish captured or sighted * side channel, ~50 yards: 1 fish sighted + 2 fish captured – Arctic grayling (AG) 165mm fork length (FL), apparent good condition, released alive Dolly Varden (DV) 135 mmFL, apparent good condition, released alive (DV bore parr marks) Minnow trap set 1300, retrieved 0930 (04SEP08): no catch Pool at/near impoundment site (above Mike’s camp), 03SEP08 Waypoint 009, elevation: 2,284 ft 63°20.435’N 143°37.852’W Electrofished pool & run, ~30 yards – DV (1): 115 mmFL AG (3 apparent males): 220, 235, 190 mmFL AG (1 apparent female): 207 mmFL AG (5 undetermined sex): 150, 148, 190, 148, 162, 148 mmFL All fishes in apparent good condition, and released alive Minnow trap set 1430, retrieved 0955 (04SEP08) – DV (2): 110, 102 mmFL Fish in apparent good condition, released alive Upper YER, above fork, western channel, well above impoundment, 04SEP08 63°18.204’N 143°35.387’W elevation: 2,830 ft Minnow trap set 03SEP08@1915, retrieved 04SEP08@1030 – DV (1): 127 mmFL Electrofished 2 channels – * single channel, ~40 yards * Y-shaped channel, ~80 yards DV (4): 122, 120, 127, 117 mmFL All fish in apparent good condition, released alive Middle YER, near big cut in hill on west bank Waypoint 024 on Mike Warner’s GPS: 63°21.411’N 143°37.852’W elevation: 2,100 ft Not possible to set bag seine: current too strong, too wide in run, too deep & fast below pool Water still high >10 days after latest rain; thalweg depth 3.5-4.0 ft Attempted electrofishing along ~50 yards of shoreline: sighted 1 fish ~150mm, species unknown Same conditions downstream ~0.5 mile Might be able to work this site in lower flow Lower YER, below highway bridge 63°23.062’N 143°35.538’W elevation: 1,971 ft Set bag seine below a slight pool Set of seine not very good; current very strong; lead line not on bottom in some places My assistant was the anchor for one end of the seine Electrofished ~35 yards downstream to seine: no fish observed No other fish-able sites nearby or anywhere below old pipeline corridor Observation: In June, flow at upper YER was greater than at lower YER. In September, there was stronger flow at mid- and lower YER sites. Judging by wet marks on the rocks, the water level was dropping. Yerrick Creek is characterized by steep gradient, cascading flows, and large boulder substrate. The channels appear to be dynamic, as judged by cleanliness of the substrate in and near the water: very little periphyton and almost no terrestrial vegetation. There are few pools in YER that appear capable of providing habitat for fishes. Those pools are small, in the range of 10 ft long. Besides the pools that we sampled, other small pools were observed (in June) at – * 63°22.308’N 143°37.007’W elevation: 1,847 ft * 63°22.123’N 143°37.104’W elevation: not recorded * 63°21.572’N 143°37.608’W elevation: 2,050 ft (pool near spur of hill) * 63°21.582’N 143°37.638’W elevation: 1,930 ft * 63°21.257’N 143°37.913’W elevation: 2,220 ft (pool near scree slope; 1 AG seen in June) NEPA CHECKLIST AIDEA/AEA Environmental Review Checklist Section 1 - Project Data Project Name: Yerrick Creek Hydroelectric Project Project Site Address: T. 18 N., R. 9 E, secs. 1, 2, 11, 14; T. 18 N, R. 10 E, sec. 6; and T. 19 N, R. 9 E, sec. 36, Copper River Meridian City: Tok, Tetlin, Tanacross, and Dot Lake, Alaska County: N/A Project Description (Provide a brief description of the proposed project, including a description of the present use of the property and a summary of the impacts to the surrounding community. Use additional pages if necessary.) The proposed Yerrick Creek Hydro Project will be located on Yerrick Creek, tributary to the Tanana River, 20 miles west of the community of Tok, Alaska, affecting T. 18 N., R. 9 E, secs. 1, 2, 11, 14; T. 18 N, R. 10 E, sec. 6; and T. 19 N, R. 9 E, sec. 36, Copper River Meridian. This project will be sized at 2.3 mega watts and have the following physical features: 1-2 mile transmission line of 45-55 foot wood poles, powerhouse, tailrace, step-up transformer, 11,000 feet of penstock (pipe), and an impoundment structure. This project will be a run-of-river project, operating only with the flows that are available at the time rather than creating storage to have water during low flow periods. The project site is presently undeveloped backcountry. Purpose and Need (Provide an explanation of the problems completion of the proposed project is intended to address.) The purpose of this project is to provide clean, renewable, rate stabilizing energy by significantly reducing the use of diesel. Diesel generation provides air and noise pollution to the communities on the Tok power grid, Tanacross, Tetlin, and Dot Lake. The potential for environmental impacts due to storage leaks, spills, and mishaps during transporting could occur any time, but opportunities would be reduced by the reduction in use of diesel. The cost for diesel fluctuates continually and is expected to get more expensive, which must be passed onto the consumer. Operation & Maintenance for diesel plants are also significantly higher than for hydro, which is also passed onto the consumer; overall, diesel is more expensive. This project will lower electric rates in these communities and stimulate business development and home building. Project Alternatives (Provide a brief description of possible alternatives to the proposed project, including a description of the impacts if no action were taken.) No Project Alternative – Continue to use diesel generation to meet these communities power needs and continue to pay high prices due to the high and fluctuating cost of diesel fuel. Air and noise pollution will continue to be a part of these communities from the APC powerplant. Attach (if available) a community map showing the project location, a drawing describing the proposed project, and photographs of the existing site and surrounding properties Section 2 - Environmental Review Preparation AIDEA/AEA Review / Preparation Name Title Address City State Zip Phone Fax E-Mail Signature Date Preparer (If not AIDEA/AEA) Name: Glen Martin Title: Environmental Coordinator Company: Alaska Power & Telephone Company Address: 193 Otto Street, P.O. Box 3222 City: Port Townsend State: WA Zip: 98368 Phone: 360-385-1733 x122 Fax: 360-385-7538 E-Mail: glen.m@aptalaska.com Signature Date AIDEA/AEA ENVIRONMENTAL REVIEW CHECKLIST PAGE 1 OF 4 VER 3/01 AIDEA/AEA Environmental Review Checklist Section 3 - Environmental Review Checklist Potential Impact Resource + 0 - Discussion / Documentation (Provide a discussion of the reasoning behind the impact evaluation and document the resources used for the evaluation. This includes agency consultations and other references.) Social / Economic Economic Impacts + Project will provide rate stabilization and lower rates, which may attract more residents and commercial operations, having a byproduct of providing more locale employment. Reducing the cost of electricity by 20% or more will reduce residence monthly bills providing them with more disposable income. Demographic Characteristics and Changes + Having stabile rates could impact demographics as mentioned above. If the economy continues to decline, there will still be a need for clean power and lower rates. Community Facilities, Services, or Safety + Will reduce noise and air pollution, because diesel generation facilities are located within the Tok city limits. Public safety should be improved due to the reduced use of fossil fuels, which could spill in transport and in fueling the storage tanks; air emissions will be significantly reduced; noise from the diesel plant will be significantly reduced and the public may reduce their use of alternative heating and lighting sources via self generation, which will create more public safety. Displacements 0 Will displace the use of diesel and diesel fuel sellers, potentially significantly reducing their income. Environmental Justice 0 Because this project is remote, there will be no impact to human health and no significant environmental due to its small size. This project will be reviewed by the resource agencies, ADF&G, DNR, USF&WS, COE, and others. This project will benefit, not adversely impact, Native Alaskans and low-income peoples by reducing their electric rates and increasing public safety. Cultural Resources Archaeological Sites 0 This site is not expected to have cultural or historical artifacts or significance, but SHPO will be consulted to determine if an archaeologist review will be necessary. Historic Buildings or Districts 0 Is not in an historical district nor are any buildings present within Project right-of-way. Air Quality + Air quality will improve because less diesel will be used in the Tok area. This project will significantly reduce the use of fossil fuels, and thereby improve air quality. Water Quality Surface Water + This project will not impact surface water as nothing is being introduced to the water by this project that would impact water quality. With the implementation of the Erosion & Sedimentation Control Plan (ESCP), no impacts to water quality should occur. Reducing the use AIDEA/AEA ENVIRONMENTAL REVIEW CHECKLIST PAGE 2 OF 4 VER 3/01 AIDEA/AEA Environmental Review Checklist Potential Impact Resource + 0 - Discussion / Documentation (Provide a discussion of the reasoning behind the impact evaluation and document the resources used for the evaluation. This includes agency consultations and other references.) of diesel once project is completed will improve the environment by the reduction in air emissions and reduced opportunities for fuel spills. Groundwater + The reduced use of diesel fuel will reduce chances for spills that could affect local wells; therefore there will be no impacts to wells. The project itself is 20 miles away from Tok and is a significant distance from homes and community wells. This project will not impact ground water. Noise + Noise from the diesel generators presently operated by APC in Tok will be significantly reduced as the hydro project will off-set a significant portion of their use. Noise from construction of the hydro project will be temporary and isolated in a remote setting Solid and Hazardous Waste 0 With a Hazardous Substance Spill Plan, no significant impacts are expected to occur during construction. The project will otherwise not contribute any solid or hazardous waste. Natural Resources Threatened and Endangered Species 0 The area, due to its inland nature and being in South- Central Alaska is not likely to have threatened or endangered species. Species may transit through the area only. The creek is not expected to have fish within the project influence due to its range in flows and cobbled substrate. An agency review will occur once funds are available to determine the extent of studies. Essential Fish Habitat 0 Streams and creeks will have buffers of 100 feet on either side from poles and brush will be maintained on stream or creek banks within the project corridor. There is no essential fish habitat within the project corridor. No fish are expected to be found up near the project. A fish survey will be conducted once funds are available. Farmland Protection 0 N/A; Undeveloped area consisting of forest. Geomorphology 0 The drainage basin is composed of round cobble in the drainage with brushy and treed slopes to bare ridges and peaks. The slope around the project site is fairly steep but no signs of mass-wasting are evident. An ESCP, which will include a revegetation plan, will help stabilize the project site after construction. Construction methods, i.e. minimal foot print, will also keep slopes stabilized. Wetlands - No significant impacts will occur to wetlands; <1.0 acres will be disturbed, of which the dam in the creek is the major portion and otherwise disturbing only hydric soils. After consultation with the Corps, a 404 Certification or AIDEA/AEA ENVIRONMENTAL REVIEW CHECKLIST PAGE 3 OF 4 VER 3/01 AIDEA/AEA Environmental Review Checklist Potential Impact Resource + 0 - Discussion / Documentation (Provide a discussion of the reasoning behind the impact evaluation and document the resources used for the evaluation. This includes agency consultations and other references.) individual permit should be issued. Wild and Scenic Rivers 0 Will have no impact on wild & scenic rivers; none exist in the project area. Coastal Zone Management 0 This project is not within a Coastal Zone Management Area. Sole Source Aquifer 0 The project route is not used as a freshwater source because of its remote location; there are no impacts to aquifers. Floodplain 0 Project is in the floodplain of Yerrick Creek only. The impoundment will be designed to allow for 100 year floods. Other Issues AIDEA/AEA ENVIRONMENTAL REVIEW CHECKLIST PAGE 4 OF 4 VER 3/01 AIDEA/AEA Environmental Review Checklist Section 4 - Summary Environmental Consequences Summary (Summarize the checklist items that identified a potential negative impact and describe the potential impact.) Wetlands – This project will have a minor impact on wetlands due to the placement of the impoundment structure in Yerrick Creek and in creating a road into the impoundment site. The amount of wetlands impacted is expected to total less than 1.0 acres. Most wetlands encountered would be of Palustrine nature being of ‘Emergent’ of ‘Forested’ type. The wetlands that might be impacted would consist of hydric soils rather than surface water. To minimize impacts to the wetlands mentioned above, excavated hydric soils will be reused, when applicable, and the project footprint and ground disturbance will be kept to a minimum. In addition, an erosion and sedimentation control plan will be utilized for protecting water quality and stabilizing disturbed soils. Environmental Commitments (Describe the measures that will be taken to mitigate the Environmental Consequences summarized above, if any) An erosion and sedimentation control plan to be approved by the COE, ADF&G, DNR, and DEC will be utilized for protecting water quality and stabilizing disturbed soils. This plan will include efforts for revegetation of disturbed areas. Environmental Permits (List any state, federal, or local permits required.) Corps of Engineers Nation-Wide Permit, ADF&G/DNR Fish Habitat Permit(?) Public Involvement (Describe the public involvement activities performed for this project, if any.) The Tanacross Village has been discussing the project with us and are favorable to its construction. Conclusion A finding of no significant impact is recommended for the above project. This finding would be based upon the project being completed as described above and in conjunction with the Environmental Commitments presented above. X or Preparation of an Environmental Assessment / Environmental Impact Statement is recommended for the project. Certifying Officer / Title Date AIDEA/AEA ENVIRONMENTAL REVIEW CHECKLIST PAGE 5 OF 4 VER 3/01 AIDEA/AEA Environmental Review Checklist AIDEA/AEA Environmental Review Checklist Instructions INTRODUCTION The National Environmental Policy Act (NEPA) requires an environmental review for “major federal actions significantly affecting the quality of the human environment” (42 U.S.C 4332). This Environmental Review (ER) checklist is intended to provide a framework for Multi-Disciplinary Engineering Services (MDES) consultants to address NEPA requirements. After completing the checklist, either enough documentation will have been generated for the AIDEA/AEA to request a Finding of No Significant Impact (FONSI) from the lead federal agency, or the AIDEA/AEA will have determined if a full Environmental Assessment (EA) or Environmental Impact Statement (EIS) will be required for the project. Instructions – Section 1 Project Name – Enter the project name. Project Site Address – Enter the address of the project, or nearest cross streets if an address is not known. Enter the Latitude and Longitude or Township / Section / Range if no other option is available. City, County – Enter the city and county the project will be completed in. Project Description – Write a brief description of the project including a description of the current site use, what demolition will be completed, and a description of any proposed developments. Summarize what impacts the project will have on the surrounding community. Attach separate pages if this cannot be completed in the space provided. Purpose and Need – Write a brief description of why the proposed project is necessary. Attach separate pages if this cannot be completed in the space provided. Project Alternatives – Write a brief description of the possible alternatives to the project. Include a brief description of the potential impacts from the alternatives (why they were not the selected alternative). Also include description of the impacts that would result if no action were taken. Attach separate pages if this cannot be completed in the space provided. Be sure to attach to the checklist any information that can be used to clarify what the proposed project is. This includes maps showing the project location, drawings of the proposed project, and photos of the project location. Instructions – Section 2 AIDEA/AEA Review / Preparation – Enter the name and requested information of the individual at AIDEA/AEA responsible for review or preparation of the checklist. The AIDEA/AEA representative will also be responsible for signing the conclusion at the end of the checklist. Preparer – Enter the name and requested information of the person actually responsible for completing the checklist if it was not completed by the AIDEA/AEA. Instructions – Section 3 Each item in the checklist should be answered and a description of the documentation / reasoning behind the answer should be stated. The potential impact for each item should be marked using the following criteria: (+) Means a potential positive impact to the specified resource from the proposed action would occur, e.g. positive economic growth or preservation of natural resources. (0) Means no potential impact to the specified resource would occur from the proposed action. (-) Means a potential negative impact to the specified resource would occur as a result of the proposed action, e.g. an archeological site would be destroyed during construction of the proposed project. Economic Impacts – Evaluate potential economic impact to the community from the proposed project. Demographic Characteristics and Changes – Evaluate the potential for changes in the demographic characteristics of the region. Both economic and racial demographics should be evaluated. Community Facilities, Services, or Safety – Determine if completion of the proposed project would impact educational facilities, commercial facilities, health care, social services, public safety (police, fire, and ambulance), recreational facilities, parks, water supply, power supply, or sanitary services. Displacements – Determine if any public, commercial, or residential displacement will occur as a result of the proposed project. Environmental Justice – Determine if the proposed project would have a disproportionately high and adverse impact on the human health or environment of minority populations and low-income populations (Executive Order 12898). Archeological Sites and Historic Buildings or Districts – Obtain concurrence from the State Historic Preservation Officer (SHPO) that no potential impact to cultural resources would result from completion of the project. Air Quality – The project must conform to the State Implementation Plan (SIP) for the Clean Air Act (CAA). AIDEA/AEA ENVIRONMENTAL REVIEW CHECKLIST PAGE I VER 3/01 AIDEA/AEA Environmental Review Checklist Water Quality / Surface Water – Identify the surface water bodies in the vicinity of the project (stream, lakes, ocean, etc.) and determine if potential impact to these water bodies may occur. If potential impact exists, identify the potential impact and determine if the potential impact would violate any surface water standards for the impacted water body. Determine if a National Pollution Discharge Elimination System permit is required for the proposed project. Water Quality / Groundwater – Identify water supply wells in the vicinity of the proposed project and determine if the project is within a setback area for the well. Noise – Determine if the project will generate any noise, and if so, obtain the noise policy from the lead agency and follow its procedures. Solid and Hazardous Waste – Identify underground storage tanks (UST) adjacent to the site, leaking underground storage tanks within ½ mile of the site, and national priority list and superfund sites within one mile of the site. Determine if a potential impact to the site exists from the identified sites. Document the site follows the Uniform Fire Code or appropriate guidelines from the lead agency. Determine what wastes will be generated by the project (during construction and operation) and identify the proposed destination of these wastes. Determine that sufficient capacity exists at the proposed destination for the wastes. Threatened and Endangered Species – Contact the US Fish and Wildlife service and the Alaska Department of Fish and Game to determine if the project creates potential impacts to threatened and endangered species. Essential Fish Habitat – Determine if the project creates potential impacts to Essential Fish Habitat (EFH). If potential impacts exist, contact the National Marine Fisheries Service and initiate consultation. Attach results of the consultation to this checklist. Farmland Protection – Complete Form AD 1006 and submit it to the National Resource Conservation Service (NRCS) to determine if impacts to farmland exist. Geomorphology – Describe the geomorphology of the project area (topography, ground cover, etc.) Determine if the project increases the potential for erosion, landslides, etc. Wetlands – Identify wetlands in the project area and determine if a Section 404 permit is required. Describe wetland mitigation measures taken, if any. Wild and Scenic Rivers – Determine if the project will impact any Federal Wild and Scenic rivers. Coastal Zone Management – Determine if the project exists within a Coastal Zone Management area, and if so, obtain approval from the delegated planning commission that the proposed project is consistent with the applicable coastal zone plan. Sole Source Aquifer – Determine if the project is located in an area designated by the US EPA as supporting a sole source aquifer. Floodplain – Determine if the project lies within a 100 year floodplain or a Regulatory Floodway. If so, describe the impact and any mitigation measures taken. Other – Describe any other issues special to the project or required by the funding federal or state agency. Instructions – Section 4 Environmental Consequences Summary – List each checklist item from Section 3 that was identified as having a negative impact and write a brief description of the impact. The description needs to be complete enough to either explain why no significant impact to the human environment exists or to support the rationale behind any proposed mitigation measures. Attach separate pages if this cannot be completed in the space provided. Environmental Commitments – Present any measures being proposed by the AIDEA/AEA to mitigate the Environmental Consequences summarized in the previous question. The description must be sufficient to explain why it prevents a significant impact to the human environment as created by the potential impact. Attach separate pages if this cannot be completed in the space provided. Environmental Permits – List all the environmental permits that will be required to complete the project. This includes, but is not limited to Section 404 permits and NPDES permits. Public Involvement – Describe all the public involvement activities performed for this project. The level of public involvement required will be dependent upon the size of the project and the potential environmental consequences identified. Attach separate pages if this cannot be completed in the space provided. Conclusion – The certifying officer with AIDEA/AEA must determine if enough information has been developed during the completion of this environmental review checklist to recommend the lead federal agency issue a FONSI. If unresolved potential impacts to the human environment remain, then preparation of either an EA or an EIS must be recommended. Typically an EA would only be recommended if the certifying officer believes collection of additional information will lead to the recommendation of a FONSI. If, after completion of the environmental review checklist, the certifying officer believes the action will significantly affect the quality of the human environment, then a recommendation for the completion of an EIS should be made. AIDEA/AEA ENVIRONMENTAL REVIEW CHECKLIST PAGE II VER 3/01 COST WORKSHEET  Renewable Energy Fund   Application Cost Worksheet Please note that some fields might not be applicable for all technologies or all project phases. Level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 4,900 MWH – Hydroelectric Project Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other 6 diesel generators ii. Rated capacity of generators/boilers/other There are 6 gensets in the Tok diesel power plant  that supply electricity to all four communities.  The  total installed capacity is 6,880 kW. iii. Generator/boilers/other type Diesel iv. Age of generators/boilers/other Varies, 0-23 years v. Efficiency of generators/boilers/other 14.4 kWh/gallon b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $88,679 in 2004; $105,057 in 2005; $111,244 in 2006; $124,801 in 2007; $93,027 YTD 2008. ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] 12,245 MWh (average 1998-2007) ii. Fuel usage Diesel [gal] 850,000 gal. (average 1998-2007) Other iii. Peak Load 1,978 kW iv. Average Load 1,295 kW (average 1998-2007) v. Minimum Load 900 kW                                                              1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden  Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage  Municipal Light and Power.  RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1  Renewable Energy Fund   vi. Efficiency 14.4 kWh/gallon (average 1998-2007) vii. Future trends Generation has steadily decreased from a high of 12,800 MWh in 2003-04 to 12,065 MWh in 2007. Projected lower rates from hydro development may result in increased generation. d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other   3. Proposed System Design a) Installed capacity 2.0 MW b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] 4,900 MWh iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 4. Project Cost a) Total capital cost of new system $13,630,000 (for Phase IV – Construction) b) Development cost $870,000 (total of Phases I, II, and III) c) Annual O&M cost of new system $100,000 d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity At total capacity = 350,000 gallons diesel annually. ii. Heat iii. Transportation b) Price of displaced fuel $3.58/gallon ( average 2008 diesel fuel price for Tok) RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2  Renewable Energy Fund   c) Other economic benefits PCE program would save money. d) Amount of Alaska public benefits AP&T ratepayers would save over $184,000,000 over the 50 year life of the Project. The Alaska public would save over $105,000,000 over the 50 year life through reductions in the cost of the PCE program. 6. Power Purchase/Sales Price a) Price for power purchase/sale N/A; AP&T is the public utility for these communities. 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 14.6 for AP&T, 9.1 for Alaska public Payback 1 year for AP&T, 7 years for Alaska public RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3 Discount Rate 0.0% 12.0% Net Present Value of Costs to AP&T without Yerrick Creek Diesel Fuel 567,215,000$ 42,964,000$ Variable O&M 16,290,000 1,502,000 Total 583,505,000$ 44,466,000$ Net Present Value of Costs to AP&T with Yerrick Creek Yerrick Creek Depreciation 1,125,000$ 187,000$ Regulated Return 3,084,000$ 820,000$ O&M 10,481,000 1,067,000 Subtotal - Yerrick Creek 13,565,000$ 1,887,000$ Diesel Fuel 374,905,000$ 26,833,000$ Variable O&M 10,718,000 935,000 Subtotal - Diesel 385,623,000$ 27,768,000$ Total 399,188,000$ 29,655,000$ Net Benefits 184,317,000$ 14,811,000$ B/C 14.59 8.85 Discount Rate 0.0% 12.0% Net Present Value of PCE Savings 105,540,000$ 14,799,000$ Project Cost 11,600,000 11,600,000 B/C 9.10 1.28 Analysis for AP&T Analysis for State of Alaska YERRICK CREEK HYDROELECTRIC PROJECT ECONOMIC ANALYSIS SUMMARY OF COSTS AND BENEFITS GRANT BUDGET FORM Alaska Energy Authority ‐ Renewable Energy FundBUDGET SUMMARY: YERRICK CREEK HYDROELECTRIC PROJECTMilestone or TaskFederal Funds (RUS Grant)State Funds (Existing AEA Grant)State Funds (Proposed AEA Grant) AP&T FundsOther FundsTOTALSPhase 1 ‐ ReconnaissanceStream gaging$22,500$22,500Site reconnaissance $15,000$15,000Phase 2 ‐ FeasibilityConceptual design$30,000 $30,000Geotechnical investigations$29,000 $29,000Topographic mapping$41,000 $41,000Fish surveys & analysis $25,000$25,000Wildlife surveys $12,000$12,000Botanical survey $25,000$25,000Wetland survey $37,000$37,000Archaeological survey$30,000$30,000Water quality testing$10,000$10,000Phase 3 ‐ Design and PermittingPermit applications and processing $42,500$42,500Stream gaging$6,000$6,000Final design $515,000$515,000Final  topographic mapping$30,000$30,000Phase 4 ‐ ConstructionConstruction management$42,500 $300,000 $37,500 $380,000Mobilization $700,000 $50,000 $750,000Access road $1,000,000 $100,000 $1,100,000Diversion structure $800,000 $50,000 $850,000Penstock$4,330,000 $420,000 $4,750,000Powerhouse $900,000 $1,230,000 $120,000 $2,250,000Transmission facilities$3,200,000 $300,000 $3,500,000Completion/demobilization $40,000 $10,000 $50,000Total $1,675,000 $100,000 $11,600,000 $1,125,000 $0 $14,500,000BUDGET INFORMATIONRFA AEA09-004 Budget Form Renewable Energy Fund RFA AEA09-004 Grant Budget Instructions Page 1 of 4 Grant Budget Instructions Information concerning the proposed budget needs to be provided on the attached form. The Budget Summary (upper portion of the form) is to provide information on the funding for the entire project by tasks. The applicant is to provide amounts and identify the source of all funds that will be used to complete this project. The tasks should represent major units of work that will need to be completed on the project. At a minimum they should represent the phases discussed in the application (Reconnaissance, Feasibility, Design and Permitting, or Construction). Tasks may also represent subtasks under a specific phase. For example, under Conceptual Design phase, a separate permitting task could be noted. The Budget Categories (lower portion of the form) is to provide specific budget information for the grant funds being applied for. Budget information for the other funds to be used to complete the project need only be provided if that additional information is currently available. Allowable costs for a grant include all reasonable and ordinary costs for direct labor and benefits, travel, equipment, supplies, contractual services, construction services, and other direct costs identified that are necessary for and incurred as a direct result of the project. A cost is reasonable and ordinary if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs. 1. Allowable Cost Allowable costs are only those costs that are directly related to those activities necessary for the completion of the proposed project. The categories of costs and additional limits or restrictions are listed below: a. Direct Labor and Benefits Include salaries, wages, and employee benefits of the Applicant’s employees for that portion of those costs that will be attributable to the time actually devoted by each employee to, and necessary for the project. Direct labor costs do not include bonuses, stock options, other payments above base compensation and employee benefits, severance payments or other termination allowances paid to the Applicant’s employees. b. Travel, Meals, or Per Diem Include reasonable travel expenses necessary for the Project. These include necessary transportation and meal expenses or per diem of Applicant employees for which expenses the employees are reimbursed under the Applicant’s standard written operating practice for travel and per diem; or, the current State of Alaska Administrative Manual for employee travel. c. Equipment Include costs of acquiring, transporting, leasing, installing, operating, and maintaining equipment necessary for the Project, including sales and use taxes. Subject to prior approval of the Authority’s Project Manager, costs or expenses necessary to repair or replace equipment damage or losses incurred in performance of work under a grant may be allowed. However, damage or losses that result from the Applicant’s Renewable Energy Fund RFA AEA09-004 Grant Budget Instructions Page 2 of 4 employees, officer’s, or contractor’s gross negligence, willful misconduct, or criminal conduct will not be allowed. d. Supplies Include costs of material, office expenses, communications, computers, and supplies purchased or leased by the Applicant necessary for the project. e. Contractual Services Include the Applicant’s cost of contract services necessary for the Project. Services may include costs of contract feasibility studies, project management services, engineering and design, environmental studies, field studies, and surveys for the project as well as costs incurred to comply with ecological, environmental, and health and safety laws. f. Construction Services For construction projects this includes the Applicant’s cost for construction contracts, labor, equipment, materials, insurance, bonding, and transportation necessary for the project. Work performed by the Applicant’s employees during construction may be budgeted under direct labor and benefits, project management or engineering. Major equipment purchases made by the Applicant may be budgeted under equipment. g. Other Direct Costs In addition to the above the following expenses necessary for the project may be allowed. Net insurance premiums paid for insurance required for the grant project; Costs of permits and licenses for the grant project; Non-litigation legal costs for the project directly relating to the activities (in this paragraph, “non-litigation legal costs” includes expenses for the Applicant’s legal staff and outside legal counsel performing non-litigation legal services); Office lease/rental payments; Other direct costs for the project directly relating to the activities and identified in the grant documents; and/or Land or other real property or reasonable and ordinary costs related to interests in land including easements, right-of-ways, or other defined interests. The Applicant is reminded to include sufficient funds for the management of the project, as the Authority may terminate the grant or assume the project management responsibilities if it is determined by the Authority that the Applicant is not providing adequate project management on its own. 2. Specific Expenditures Not Allowed Ineligible expenditures include costs for overhead, lobbying, entertainment, alcohol, litigation, payments for civil or criminal restitution, judgments, interest on judgments, penalties, fines, costs not necessary for and directly related to the grant project, or any costs incurred before the beginning date of the grant. This is not intended to be a complete list of all ineligible expenditures. Overhead costs described in this section include: salaries, wages, applicable employee benefits, and business-related expenses of the Applicant’s employees performing functions not directly related to the grant project; Renewable Energy Fund RFA AEA09-004 Grant Budget Instructions Page 3 of 4 office and other expenses not directly related to the grant project; and costs and expenses of administration, accounting, human resources, training, property and income taxes, entertainment, self-insurance, and warehousing. 3. Match and Cost Sharing If the Applicant is providing a match, it is should be detailed either as a specific dollar amount or as a percentage of the total project budget. The type and amount of matching contributions should be discussed in the application under section two. Cost sharing or matching is that portion of the Project costs not borne by the Authority. The Authority will accept all contributions, including cash and in-kind, as part of the Applicants’ cost sharing or matching when such contributions meet the following criteria: Are provided for in the Project budget; Are verifiable from the Applicant’s records; Third party costing sharing contributions are verifiable (with a letter of intent or similar document); Are not included as contributions for another state or federally assisted project or program (i.e., the same funds cannot be counted as match for more than one program); Are necessary and reasonable for proper and efficient accomplishment of the Project or program objectives; Are allowable costs; Are not paid by the State or federal government under another award, except for authorized by the State or federal statute to be used for cost sharing or matching; Must be incurred within the grant eligible time period. Any match proposed with the application will be required in the Grant award and the Grantee will be required to document the use of the proposed matching funds or in-kind contributions with their request for reimbursement. 4. Valuing In-Kind Support as Match If the Applicant chooses to use in-kind support as some; or, its entire match, the values of those contributions will be reviewed by the Authority at the time the budget is approved. The values will be determined as follows: The value of real property will be the current fair market value as determined by an independent third party or a valuation that is mutually agreed to by the Authority and the Applicant and approved in the grant budget. The value assessed to Applicant equipment or supplies will not exceed the fair market value of the equipment or supplies at the time the grant is approved or amended. Equipment usage will be valued based on approved usage rates that are determined in accordance with the usual accounting policies of the recipient or the rates for equipment that would be charged if procured through a competitive process. Rates paid will not exceed the fair market value of the equipment if purchased. Renewable Energy Fund RFA AEA09-004 Grant Budget Instructions Page 4 of 4 Rates for donated personal services will be based on rates paid for similar work and skill level in the recipient’s organization. If the required skills are not found in the recipient organization, rates will be based on rates paid for similar work in the labor market. Fringe benefits that are reasonable, allowable, and allocable may be included in the valuation. Transportation and lodging provided by the Applicant for non-local labor will not exceed the commercial rates that may be available within the community or region. 5. Grant Disbursements Applicants are reminded that they must request disbursement of grant funds in the form and format required by the Authority with appropriate back-up documentation and certifications. This format will be provided by the Authority. The back-up documentation must demonstrate the total costs incurred are allowable, and reflect the amount being billed. Documentation must include: A summary of direct labor costs Travel and per diem reimbursement documentation Contractor or vendor pay requests Invoices Timesheets or check copies to document proof of payment must be available for audit purposes at the Applicants place of business. Payment of grant funds will be subject to the Applicant complying with its matching contribution requirements of the proposed grant.