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Susitna-Watana Hydroelectric Project Document
ARLIS Uniform Cover Page
Title:
Socioeconomics: social conditions and public goods and services
evaluations SuWa 161
Author(s) – Personal:
Author(s) – Corporate:
Alaska Energy Authority
AEA-identified category, if specified:
Social resources study requests
AEA-identified series, if specified:
Series (ARLIS-assigned report number):
Susitna-Watana Hydroelectric Project document number 161
Existing numbers on document:
Published by:
[Anchorage] : Susitna-Watana Hydroelectric Project, [2012]
Date published:
5/16/12
Published for:
Date or date range of report:
Volume and/or Part numbers:
Final or Draft status, as indicated:
Document type:
Pagination:
4 p.
Related work(s):
Pages added/changed by ARLIS:
Notes:
All reports in the Susitna-Watana Hydroelectric Project Document series include an ARLIS-
produced cover page and an ARLIS-assigned number for uniformity and citability. All reports
are posted online at http://www.arlis.org/resources/susitna-watana/
Susitna-Watana Hydroelectric Project FERC #14241 Alaska Energy Authority
Social Conditions and Public Goods and Services Study Request 5/16/12 Page 1
1.1. Socioeconomics: Social Conditions & Public Goods and Services Evaluations
1.2. Requestor of Proposed Study
AEA anticipates resource agencies will request this study.
1.3. Responses to study request criteria (18 CFR 5.9(b))
1.3.1. Describe the goals and objectives of each study proposal and the information
to be obtained.
The social conditions and public goods and services evaluations portion of the socioeconomics
study will complete an assessment which identifies and quantifies (where possible) the impacts
of constructing and operating the proposed Project on population, housing, local governmental
services, and other public and community aspects within the Matanuska-Susitna Borough and
the Denali Borough and communities in the vicinity of the proposed project. In addition to these
communities and boroughs of primary significance the study needs to also evaluate the effects
of the Project on other boroughs and census areas including the Fairbanks North Star Borough
and the Municipality of Anchorage. Some communities in the Valdez-Cordova Census Area,
which includes the Copper River Valley, as well as a few communities in the Yukon-Koyukuk
Census Area may be affected by the Project and these potential effects need to be evaluated.
1.3.2. If applicable, explain the relevant resource management goals of the
agencies and/or Alaska Native entities with jurisdiction over the
resource to be studied.
To be provided by the requesting agency, Alaska Native entity, or other state or local agency.
Social conditions and the provision of public goods and services are primarily in the domain of
state and local—including tribal—governments in Alaska. While federal and state requirements
do exist for such items as the quality of drinking water and wastewater discharge, there are few
standards for most aspects of the social environment or for providing public goods and services.
However, in most instances the state and local governments wish to avoid circumstances where
social conditions or public goods and services are adversely impacted by a proposed action.
Thus, the purpose of the socioeconomic study for those topics will be to identify any impacts,
and particularly any potential adverse impacts to which the study should strive to identify, if
possible, potential means to mitigate such effects.
1.3.3. If the requester is a not resource agency, explain any relevant public interest
considerations in regard to the proposed study.
The primary benefit to the public of the social conditions and public goods and services
evaluation will be assurance that the effects of the Project on public services are adequately
addressed. The communities within the Railbelt are directly affected by the project and thus will
have a great interest in how the Project may affect their lives. The project could affect the
economic well-being of individuals and communities in several potential ways, but in particular
with regards to energy security and cost stability. The identification of any increased demands
on public and community services would allow for planning to address the important service
provisions and capacities. This report would also provide valuable information for
multidisciplinary analysis required under the National Environmental Policy Act (NEPA).
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Social Conditions and Public Goods and Services Study Request 5/16/12 Page 2
1.3.4. Describe existing information concerning the subject of the study proposal,
and the need for additional information.
The study team will need to obtain and review and collect baseline data and summarize the
existing conditions for population, employment, income, ethnicity, housing, schools, health care
facilities, police and fire protection, and other public services and facilities. Some of this
information is available in the Pre-Application Document (PAD) but the PAD focused on the
Denali and Matanuska-Susitna boroughs, and even for those two boroughs some needed
information is missing. The Data Gap Analysis (HDR Alaska, 2011) also identified information
that is lacking or that needs updating. To address these items the study can turn to a
combination of sources including the U.S. Census Bureau, Alaska Department of Labor and
Workforce Development, Alaska Department of Commerce, Community, and Economic
Development, Matanuska-Susitna Borough, Denali Borough, and other public agencies. In
addition, it will be important to review other published documents and information from public
scoping meetings. Changes to the data collection methods used by the U.S. Census Bureau
have led to challenges when evaluating socioeconomic conditions in many of Alaska’s
communities. While the 2010 Census provides complete coverage of basic characteristics like
population, age, household size, race, gender, and familial relation, the broader range of
characteristics—many of which will be critical components of the analysis—are covered by the
American Community Survey, which suffers from limited geographic detail and significant
sample size and precision issues. For example, the community of Cantwell, the closest
community to the Project, is estimated to have a median household income of $61,875 in the
past 12 months but the margin of error around this estimate is +/-$18,438, which means that the
actual median household income could range from $43,437 to $80,313. This margin of error
makes it difficult to say whether Cantwell is a thriving community with strong household income
or one where households are struggling to make ends meet. It is important to anticipate these
data constraints will affect not only communities but also the 24 community councils located in
the Matanuska-Susitna Borough, which have boundaries that differ from the Census
boundaries.
As a means of overcoming issues with U.S. Census Bureau data, the study team will need to
focus much of our baseline data collection efforts on published documents, research, and
feedback received from public scoping meetings. It will be important to look at example
methodologies of recently completed studies that involve similar considerations and needs in
conducting a variety of similar studies in the region to inform the data collection and validation
efforts for this Project. However, even with these steps, there will be a need to conduct surveys
and interviews to address data gaps.
As part of the baseline data collection, it will be important to document regional and community-
level service providers. Many communities in the Matanuska-Susitna and Denali Boroughs do
not provide certain services, but instead benefit from services provided by the state, volunteer
groups, regional organizations, and Alaska Native entities. The study team will need to develop
a comprehensive list of the services provided in each community—ranging from public safety to
health to utilities—and the entities that provide those services.
1.3.5. Explain any nexus between project operations and effects (direct, indirect,
and/or cumulative) on the resource to be studied, and how the study results
would inform the development of license requirements.
Project construction will require a large construction workforce and the transportation of people,
equipment, and materials to and from the construction worksite. During operations there would
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Social Conditions and Public Goods and Services Study Request 5/16/12 Page 3
be more routine operations and maintenance activities with a relatively small workforce. The
construction workforce is likely to be drawn from a broad region of Southcentral and Interior
Alaska with a scheduled rotation of crews so population effects on communities in the
Matanuska-Susitna and Denali Boroughs from in-migration are not anticipated. The number of
certain skilled occupations required for the Project may exceed the number of these workers
available within the state, which could lead to in-migration of the workers and their families, or
such workers might commute from their current residences in other states. The study will
estimate the number of out-of-state workers that might be needed, the propensity to migrate
rather than commute, and areas likely to experience population effects from in-migration. To the
extent that population changes result in adverse effects on social conditions or demand for
additional public goods and services, they will be identified in the study results.
Transportation of equipment and materials through communities on the transportation routes to
and from the Project could result in increased traffic volumes, and associated noise and
congestion effects. Such conditions might require additional police and emergency response
calls for traffic accidents and other incidents. Estimates of changes in vehicle miles traveled can
be converted into estimates of traffic accidents and injuries which could place additional
demands on police, emergency response, and medical care services.
1.3.6. Explain how any proposed study methodology (including any preferred data
collection and analysis techniques, or objectively quantified information, and a
schedule including appropriate field season(s) and the duration) is consistent
with generally accepted practice in the scientific community or, as appropriate,
considers relevant tribal values and knowledge.
The proposed Project would not start operations until 2023 under the current schedule, more
than 10 years in the future. In addition, the Project is anticipated to continue operations for more
than 100 years. The long time frame for construction of the project and its operations means
that a comparison of the Project’s effects on existing conditions in 2012 would be inappropriate.
The comparison should be between the future conditions without the Project and the future
conditions with the Project. This approach is the generally accepted practice for large
infrastructure projects in the State of Alaska, and is the approach used for the Alaska Pipeline
Project’s recent submittal to FERC.
The proposed study methodology includes development of a set of model assumptions about
the future, which are often the basis for reasonably foreseeable future actions that are used in
the cumulative effects analysis. A set of interviews are conducted with persons knowledgeable
about the regional and state economies and various industries in the state and the responses
are used to develop a set of assumptions, with and without the Project, for use in a dynamic
economic model. It would be appropriate to use a dynamic model developed by Regional
Economic Models, Inc. (REMI) which has been calibrated to fit the state’s economy (or similar
model). The REMI model can provide projections to 2060 for all of the boroughs within the
Railbelt area, including the Matanuska-Susitna Borough and the Denali Borough. The current
REMI model also has the Yukon-Koyukuk Census Area included, but an additional module
would need to be obtained for the Valdez-Cordova Census Area. Demographic and economic
projections will be developed for the Without-Project condition and compared with a separate
forecast for the With-Project condition. The effect of the incremental change in these
demographic and economic forecasts will be used to determine the potential changes in social
conditions and demand for public goods and services.
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1.3.7. Describe considerations of level of effort and cost, as applicable, and why any
proposed alternative studies would not be sufficient to meet the stated
information needs.
It is anticipated that completion of the work described above would require about five months of
effort in 2013 to provide a draft report on Social Conditions & Public Goods and Services.
Based on the results of the work in 2012, it may be that some new questions arise as a result of
the initial study, and therefore there could be some addition follow-on analyses in 2014
determined by AEA in collaboration with stakeholders. The process described above should
provide sufficient information for the licensing and environmental review of the Project.
1.3.8. Literature Cited.