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Home My WebLink AboutAEA Susitna-Watana Report to the Legislature - 2012uSITNA-WATANA HYDRO Clean, a to energy far the next 100 years. A r : -i Table of Contents Letter from the Executive Director ....................... 2 Introduction.......................................................... 3 2012 Key Accomplishments ................................. 4 Project at a Glance and Map ................................ 5 Proposed Study Plan ............................................ 7 Proposed Study Plan At -A -Glance ....................... 9 2012 Field Studies .............................................. 11 Investing in Renewable Energy ........................... 13 Project Economics .............................................. 14 History of Susitna-Watana Hydro ........................ 15 Public Outreach .................................................. 17 Stakeholder Engagement ......................... I ........ . 18 Expenditures........................................................ 19 ProjectTeam ....................................................... 20 AEA Renewable Energy Strategy ....................... 21 "I am committed to expanding and diversifying Alaska's economy and to unlocking Alaska's energy resources for Alaskans' benefit. One cornerstone of a long-term and comprehensive energy strategy is Susitna-Watana Hydro." Gov. Sean Parnell Report to the Leqislature `) LETTER FROM THE EXECUTIVE DIRECTOR A year ago, the Alaska Energy Authority filed its Pre -Application Document with the Federal Energy Regulatory Commission, which officially kicked off the licensing process for Susitna-Watana Hydro. I am proud of our entire project team and their many accomplishments this past year. Their work is helping to bring the benefits of Susitna-Watana Hydro closer to reality for Alaska. For the first time since the 1980s, field studies were conducted to gather additional data. Eighteen studies were conducted with the help of more than 100 fieldworkers in a variety of disciplines. From geology to wildlife, water and ice characteristics to fish and more, this early field season was a success. Detailed results are being compiled, but preliminary analysis supports many of the findings from previous studies in the 1980s. Weather conditions this past year also allowed the project teams to observe a wide variety of naturally occurring river conditions, including extreme snow and ice conditions in the Spring, and high water and flow rates during the September flooding situations along the river system. This variety was helpful as it provided a range of conditions typically not scene over the course of one year. While the field teams gathered information, the project leads worked tirelessly on developing a Proposed Study Plan that includes 58 studies to be conducted during the next two years. Working with other agencies and stakeholders, the team conducted many technical workgroup meetings to revise the plan in time to submit a final Revised Study Plan to the Federal Energy Regulatory Commission (FERC) in December. That plan is now being reviewed and we anticipate a decision by FERC in the coming weeks. Our goal for 2013 is to implement the study plan and continue moving forward towards a license to build. We also plan to continue educating the public about the project and its benefits to businesses and residents from Fairbanks to Homer. This report provides an overview of activities during the past year. We welcome any questions and comments, and look forward to working with legislators and the administration as we make progress in providing solutions to Alaska's energy challenges. Sincerely, 'Tx�- - Cl._'G Sara Fisher -Goad Executive Director Alaska Energy Authority In the context of all renewable energy generated statewide, hydro makes up about 90 percent. Wind, solar, geothermal and other renewable sources combined provide the balance. Nationally, hydropower accounts for 7 percent of all electricity generated and more than 65 percent of renewable energy sources. Regions with high concentrations of hydropower generation typically enjoy lower - and more stable - power costs compared with traditionally fueled communities. With more than 3,000 rivers and waterways, Alaska is well -positioned to continue taking advantage of the benefits of hydropower for generations to come, d M-M Report to the Legislature 2012 KEY ACCOMPLISHMENTS �v Licensing Progress Public scoping meetings were held in several communities as part of the FERC licensing process. AEA attended each of these meetings to hear feedback from the public and other stakeholders. Communities visited includes: Anchorage, Wasilla, Glennallen, Talkeetna, Cantwell and Fairbanks. Study Plan A significant amount of the 2012 effort was spent developing a study plan for the project. The plan is a key part of the licensing process and outlines the studies that will be conducted to provide a better understanding of the Susitna Basin. The Proposed Study Plan was submitted to FERC in July and includes 58 studies. AEA conducted technical workgroup meetings to collaborate further with stakeholders on the proposed studies. In December, AEA submitted a Revised Study Plan for FERC approval. Engineering Engineering work for Susitna-Watana Hydro continues to progress. During 2012, the project team increased the proposed height of the dam to optimize power production and increase valuable winter storage of water. Additional engineering achievements include: • Progress refining engineering • Brought on independent board of consultants • Identified three potential access and transmission routes and worked with Alaska Department of Transportation and Public Facilities on a high-level analysis Fieldwork 2012 was a milestone year in many ways for Susitna-Watana Hydro. More than 100 field workers were able to conduct 18 initial studies that will provide valuable data to add to additional information gathered in the 1980s and future data obtained via the environmental field program. Independent Cost Estimate AEA requested an independent cost estimate for Susitna-Watana Hydro to provide a higher degree of confidence to stakeholders about anticipated costs. Results of this study were within nine percent of the original estimate, which is considered to be positive for a project of this scope. Buy Alaska Worked with vendors to establish a mechanism to track Alaska -based employment and spending. Stakeholder Engagement AEA is committed to working with stakeholders to address their questions and concerns about the project. The project team has adopted an "open, accurate and collaborative" approach to managing stakeholder expectations and providing information to the public, other agencies and a variety of stakeholders. An Alaska Native outreach liaison is a key member of the project team and helps to engage Alaska Native communities and corporations about the project. AEA also implemented a public outreach program to help educate Alaskans about the project. Public outreach included: • More than 20 community visits • Roughly 50 stakeholder and technical workgroup meetings • About 75 community presentations • Initial meetings and conversations with Alaska Native landowners • A new project website to more effectively communicate with Alaskans and stakeholders _ Staffing AEA has a world -class, experienced team and continues to add resources as needed to make sure the project is managed and developed effectively and efficiently. During 2012, the team added a project economist, environmental technician, and licensing and permitting manager. w•� Sasitna-Watana Hgdfa Susitna-Watana Hydro PROJECT AT A GLANCE & MAP Location: River mile 184, above Devils Canyon Size: 735-foot high dam Reservoir: About 42-miles long, average width of 1 mile Estimated Supply: About 50 percent of Railbelt electrical demand Cost: $5.19 Billion TIMELINE Preliminary Planning • Open Houses • Authorization • Study Gap Analyses • Preliminary Permit Application to FERC • Preliminary Decision Document Installed Capacity: 600 MW Annual Energy: 2,800,000 MWh Licensing: Federal Energy Regulatory Commission (FERC) Project Life: 100+ years, providing long-term, stable rates 2012.....................................................2024 WE ARE HERE START UP Design and Licensing Construction i • Field Studies • Public Involvement • Permit Applications • Environmental Impact Statement Preparation • Agency Approvals (7 years) Report to the Legistature 2012 FAIRBANKS { SUSITNA-WAT, DEVILS CANYiON' }. 22 to 32 River CD Miles Downstream Ta/k eetna River TALKEETNA 87 River Miles Downstream Devils Canyon, a natural fish barrier WAS I LLA --AMW ANCHORAGE SUSitiFd-110a H{ dTD 6 1 `ate'_--^P?��.�._Z_-'v_. y,- .-��•�'-�.. d.-._.� _ ► - 7M �a.:--..:=- -- �-� T� '�-- ` _ � � -- '.� �a"� � ��:� .sr. - �i►?�i`"� �._.�...�._�'�t.. - - 'ate sir - _ -.- - �� r.-.�_1~ � t - _^,��" _'• --. - � �- � � • �- ?"� r+c :ram '�.�•��- Studying 186,000 Acres The Federal Energy and Regulatory Commission (FERC) is responsible for issuing the necessary license to build and operate Susitna-Watana Hydro. It is up to the license applicant to demonstrate the feasibility of a project. FERC's regulations include the following provision for conducting studies: Before the Commission can make an informed decision on a license application, it must obtain adequate information on the resources the project affects, such as soils, water quality, fish and wildlife, cultural, recreation, aesthetics, land use, and tribal resources. To obtain this information, it may be necessary for the applicant to conduct studies to assess these effects so a range of potential protection, mitigation, and enhancement measures can be explored. The Integrated Licensing Process (ILP), developed in consultation with the hydro industry, state and federal agencies, tribes, and non -governmental organizations (NGO), is designed to ensure that the information needs are known before a license application is filed through a Commission -approved study plan. The state conducted extensive studies during the 1980s under the Alaska Power Authority while the state was previously pursuing a FERC license. These studies have provided the current team with more than 3,000 study documents that form the basis for the new study plan and licensing effort. The Alaska Energy Authority worked closely with a number of state and federal agencies — and other statekholders — in drafting the proposed study plan submitted to FERC in December. Out of 59 study requests made by various stakeholders, 58 have been incorporated into the plan. 7 Report to thesla re 2012 Julia Bosma has more than 20years of experience in environmental permitting and regulatory compliance in x the Western U.S. She has a broad understanding of the permitting and regulatory requirements for developing natural resource projects on state, Federal and private lands. She has worked to implement the National Environmental _ Policy Act (NEPA) process for a variety of resource development and infrastructure projects to develop Julia environmental baseline studies and on wetlands permitting _ under the Corps of Engineers. Her extensive background _ - Bosma includes obtaining a variety of required permits and Licensing and approvals for mining projects and mineral explorations, ,a power plants, permitting timber sales for the U.S. Forest _ Permitting Service, highways, a gas pipeline, transmission, rail and other projects. Manager -� - Julia has a bachelor's degree in geology from the University of Washington and a master's in geology from the Mackay _ r School of Mines at the University of Nevada, Reno. .r .r `144 • ate'"';•. STUDY PLAN AT -A -GLANCE Geology & Soils The Alaska Energy Authority plans to conduct a study to define the geologic, geotechnical, seismic and foundation �+ conditions at the sites of project works. • Geology & Soils Characterization Study �■ram• Instream Flow Studies: Fish Aquatics & Riparian Areas The Alaska Energy Authority plans to study hydrology characteristics and its relations with fish and aquatic biota and their habitats. • Fish and Aquatics Instream Flow Study • Riperian Instream Flow Study Water Resources The Alaska Energy Authority plans to have studies conducted to characterize and evaluate any potential effects to the water quality of the Susitna River. • Baseline Water Quality Study • Water Quality Modeling Study • Mercury Assessment and Potential for Bioaccumulation Study • Groundwater -related Aquatic Habitat Study • Geomorphology Study • Fluvial Geomorphology Modeling below Watana Dam Study • Ice Processes in the Susitna River Dam Study • Glacial and Runoff Changes Study Fish & Aquatic Resources The Alaska Energy Authority plans to conduct dozens of studies to better understand the Susitna River fish populations. • Fish Distribution and Abundance in the Upper Susitna River • Fish Distribution and Abundance in the Middle and Lower Susitna River • Salmon Escapement Study • River Productivity Study • Characterization of Aquatic Habitats in the Susitna River with Potential to be Affected by the Susitna-Watana Project • The Future Watana Reservoir Fish Community and Risk of Entrainment Study • Study of Fish Passage at Watana Dam • Study of Fish Passage Barriers in the Middle and Upper Susitna River and Susitna Tributaries • Aquatic Resources Study within the Access Alignment, Transmission Alignment and Construction Area • Genetic Baseline Study for Selected Fish Species • Analysis of Fish Harvest in and Downstream of the Susitna-Watana Hydroelectric Project Area • Eulachon Distribution and Abundance in the Susitna River • Cook Inlet Beluga Whale Study Botanical Resources The Alaska Energy Authority plans to collect necessary baseline data to evaluate the potential impacts to vegetation, wildlife habitat, wetland and vascular -plant resources in the project area. • Vegetation & Wildlife Habitat Mapping Study • Riperian Study • Wetland Mapping Study • Rare Plant Study • Invasive Plant Study 9 Report to the legislatufe 2912 Wildlife Resources The Alaska Energy Authority plans to study distribution, movements, population size, productivity and habitat of wildlife in the Susitna River and surrounding area. • Study of Distribution, Abundance, Productivity and Survival of Moose • Study of Distribution, Abundance, Movements and Productivity of Caribou • Study of Distribution, Abundance and Habitat Use of Dalls Sheep • Study of Distribution, Abundance and Habitat Use by Large Carnivores • Study of Distribution and Abundance of Wolverines • Study of Terrestrial Furbearer Abundance and Habitat Use l • Study of Aquatic Furbearer Abundance and Habitat Use • Study of Species Composition and Habitat Use of Small Mammals • Study of Distribution and Habitat Use of Little Brown Bat • Survey Study of Eagles and Other Raptors • Waterbird Migration, Breeding and Habitat Study • Breeding Survey Study of Landbirds and Shorebirds • Study of Population Ecology of Willow Ptarmigan in Game Management Unit 13, Southcentral Alaska • Study of Distribution and Habitat Use of Wood Frogs • Evaluation of Wildlife Habitat Use Study • Wildlife Harvest Analysis Study Recreation & Aesthetic Resources The Alaska Energy Authority plans to conduct several studies in order to document baseline conditions and help assess potential impacts on recreation and aesthetic resources from construction and operation of the proposed Susitna-Watana Hydro Project. • Recreation Resources Study • Aesthetics Resources Study • Recreation Boating/River Access Study Cultural & Paleontological Resources Subsistence Resources The Alaska Energy Authority plans The Alaska Energy Authority will conduct to conduct studies that will be used subsistence studies to document traditional and to assist in identifying appropriate contemporary subsistence harvest and use and to protection, mitigation and enhancement collect baseline data to facilitate the assessment measures of cultural resources. of potential impacts. • Cultural Resources Study • Subsistence Baseline Documentation Study • Paleontological Resources Study Socioeconomic and Transportation Resource Project Safety The Alaska Energy Authority will conduct a study that will The Alaska Energy Authority will conduct address evaluation of regional economic effects as well as studies to assess the stability of project effects on social conditions and public goods and services. facilities during flood conditions and • Regional Economic Evaluation Study to estimate earthquake ground motion • Social Conditions and Public Goods parameters. and Services Study • Probable Maximum Flood Study • Transportation Resources Study • Site -Specific Seismic Hazard Study • Health Impact Assessment Study • Air Quality Study Susitna-lllatana Hgdio 10 The Alaska Energy Authority completed a successful field study season in 2012 with the help of more than 100 field workers. The data gathered from 18 individual studies goes above and beyond the official Revised Study Plan submitted to FERC in December. The 2012 studies involved the following areas of focus AESTHETIC AND RECREATION RESOURCES The study objectives for the 2012 Recreation and Aesthetics Program focus on the identification, collection, and synthesis of recreation and aesthetic resource information that will inform the formal study planning process. Information will also be used to guide Project design and mitigation of construction, operation and maintenance activities to minimize impacts. Coordination across social resources (e.g., cultural, subsistence, and socioeconomic) from the study's outset is an essential component of the program. 2012 AQUATIC HABITAT AND GEOMORPHIC MAPPING OF THE MIDDLE RIVER USING AERIAL PHOTOGRAPHY Understanding the extent to which current (2012) aquatic habitat and geomorphic features are similar to or different from 1980s conditions will not only provide information on the long-term equilibrium of the channel, but will also help inform the extent to which other datasets collected in the 1980s can be relied upon to describe and supplement more recent aquatic habitat and geomorphic data. Quantifying geomorphic features and aquatic habitat types will also provide a basis for selecting study sites, understanding flow versus habitat relationships, and assessing geomorphic conditions. 2012 DOCUMENTATION OF SUSITNA RIVER ICE BREAK-UP AND FORMATION The purpose of this study is to document the timing and progression of breakup and ice cover formation on the Susitna River between RM 0 and RM 234 (Oshetna River confluence). The study team will: • Document open leads between RM 0 and RM 234 throughout the winter. • Document the interaction between river ice processes and channel morphology, vegetation, and aquatic habitats. • Provide baseline data to help identify the river reaches most likely to experience changes in river ice formation as a result of Project construction and operation. 2012 RECONNAISSANCE -LEVEL GEOMORPHIC AND AQUATIC HABITAT ASSESSMENT OF PROJECT EFFECTS ON LOWER RIVER CHANNEL The objective of this study is to assess at a reconnaissance level the potential for the project to affect aquatic habitat and channel morphology in the Lower Susitna River. 11 Report to the Legislature 2012 STUDYING FISH POPULATIONS, SALMON DISTRIBUTION a— ! & HABITAT UTILIZATION � rlt4 � During 2012, AEA conducted studies to learn more about fish and adult salmon N V�� , � �- r e in the Susitna River system. One of the studies aimed at consolidating and JW � I synthesizing conternporary and historical fish -resource data within the studyQ� area into a concise, comprehensive reference document and developing a ' . 'Ib geospatially-referenced relational database. �►to ►-' AEA also began a multi -year effort with the Alaska Department of Fish & Game g Y p_. 1V M to study the Susitna River, side channels and sloughs, to better understand the @ ti1►. distribution, abrndance and spawning habitat of salmon. Key objectives of these studies include: T ■ Capture, radio -tag and track adults from five species of Pacific salmon in the middle Susitna River in proportion to their abundance. • Determine the migration behavior and spawning locations of radio -tagged ' fish in the Lower, Middle and Upper Susitna River. • Assess the feasibility of using sonar to determine spawning locations in 1ha turbid water. • Locate individual holding and spawning salmon in clear and turbid water and collect habitat data for instream flow modeling. • Characterize salmon migration behavior and timing above Devils Canyon. 2012 REVIEW OF EXISTING WATER TEMPERATURE MODEL RESULTS AND DATA COLLECTION The objective of this Study is to provide a foundation for the 2013-2014 water temperature modeling study of reservoir and stream temperatures. The specific objectives are as follows: • Evaluate the 1980s water temperature model results and determine the applicability of the past results to the currently proposed project. • Initiate collection of stream temperature and meteorological data that will be needed for the 2013 and 2014 studies. 2012 RIVER FLOW ROUTING MODEL DATA COLLECTION The study objective for the 2012 field effort is to provide input, calibration, and verification data for a river flow routing model extending from the proposed dam site to RM 75. r •-a 2012 CULTURAL RESOURCES STUDY PLAN The cultural resources study objectives are designed primarily to continue laying the foundation of information to enable the applicant and lead federal agency to meet the requirements of National Historic Preservation Act (NHPA) and its accompanying regulations (36 CFR 800), and other pertinent federal and State laws and regulations. The major objectives for 2012 work are as follows: • Create GIS database to help enable development of predictive models and management of cultural resources information for 2013-2014 studies. • Develop predictive model, identifying areas of high, medium and low potential for the occurrence of cultural resources. • Continue to identify and document cultural resources within the project study area, building upon work done between 1978-1985. • Prepare plans and procedures addressing unanticipated discoveries of cultural resources, human remains and paleontological resources. Susitna-kana Hydio 12 OUR GOAL Hydroelectric power is a long-term investment and Susitna-Watana Lvng-term, stable rates for Alaskans Hydro can be a vital piece of Alaska's energy infrastructure. Alaska remains dependent on volatile -priced fossil fuels for both electricity and heat, resulting in a large degree of economic uncertainty. In Alaska's interior, utility costs are higher than any major U.S. metropolitan center.' Hydroelectric power reduces electric -price uncertainty and provides long-term and stable power for many decades. In fact, Susitna- Watana Hydro's project life can stretch a century or beyond, reducing Alaska's Railbelt's exposure to changing fossil fuel prices. The cost of power from Susitna-Watana Hydro is anticipated to be competitive with other fuel sources at start-up, even with no direct State investment. The true, long-term benefits of the project become a reality a little after a decade from construction when Susitna-Watana Hydro is anticipated to become one of the most economic fuel sources, even compared to natural gas. Susitna-Watana Hydro vs. Natural Gas Power Costs $0.40 . L 3: $0.35 _ _ Hydro equals the price a$0.30 of Base Case Natural m $0.25 _ Gas after 12 years C_ $0.20 0 z so. 15 j $0.10 3 $0.05 0 d 0.00 Range of Natural Gas Power Costs Base Case Natural Gas Power Costs Susitna-Watana Power Cost q ' The Council for Community and Economic Research surveyed 314 13 Report to the Legislature 2012 cities and found Fairbanks paid nearly double the national average. PROJECT ECONOMICS The Alaska Energy Authority is committed to providing accurate information, including project cost and economics. The current cost estimate, based on the 2,800,000 mwh annual energy production is $5.19 billion. This estimate was produced by MWH, a global leader in developing hydroelectric projects. AEA is confident that this cost estimate, which accounts for project cost risk, is accurate within 25 percent of the final price. In 2012, AEA initiated an independent cost estimate from AECOM, a firm experienced in the construction of hydroelectric projects in Arctic climates. Their estimate came within nine percent of the original estimate, an impressive statistic for a project of this size. In addition, the independent cost estimate provided valuable recommendations to increase efficiencies and bolstered confidence in the overall project cost estimate. The finance plan is an important component of developing a project of this scale. There are multiple financing options for the State of Alaska and the Alaska Energy Authority will be working to bring on a financial consulting team in the near future. At this time, AEA is estimating the project's power cost using the most conservative of financial assumptions. AEA is assuming no State direct investment, a five percent interest rate and a 30- year debt term. The chart below uses these assumptions and describes the cost of power per kilowatt hour (kWh), in wholesale rates: POWER COSTS ($/kWh) Year 1 Rate ($2024) $0.181 Year 1 Rate ($2013 Real) $0.138 10-Year Avg Rate ($2013 Real) $0.124 25-Year Avg Rate ($2013 Real) $0.106 50-Year Avg Rate ($2013 Real) $0.061 Real = Adjusted for Inflation • Assumes no direct state investment Susitnd-Watdna Hydro 14 concluding that project impacts were manageable. AEA reevaluates Susitna's hydroelectric potential Z0O9 4 Alaska Legislature UNANIMOUSLY 2011 approves funding to 4W pursue Susitna-Watana Hydroelectric Project. 49 2012 Studies begin on Susitna River and surrounding areas Environmental Impact Statement Preparation 2015 h and agency approvals construction of Project begins AEA Authorized to 2008 reevaluate Susitna - River potential Alaska State Energy Policy created 2010 by Alaska State Legislature. This moves Alaska toward 50% of power from renewable energy resources by 2025. Official Study Plan submitted to the Federal Energy Regulatory Comission (FERC) LC 2012 Field studies, public involvement and 1116— license application Licensing decision expected 15 Report to the Legislature 2912 The Susitna River has long been considered for its hydropower potential. Fed by the Susitna Glacier 2,500 feet up in the Alaska Range, the river is 313 miles long, culminating at Cook Inlet. It is ranked the 15th largest river in America, based on the volume of water discharged at its mouth, by the U.S. Geological Survey. Dozens of other rivers, creeks and tributaries empty into the Susitna River. Among them are the Deshka, Yentna, Talkeetna and Chulitna rivers. Watana Creek is a stream that runs into the Susitna River near River Mile 190, about six miles upriver from the project site. Different study efforts over nearly six decades have provided a foundation of data that is helping to guide current plans. During the next few years, the Alaska Energy Authority will gather the necessary data to obtain a FERC license, potentially making Susitna-Watana Hydro a reality. OUR GOAL Safe, efficient progress to obtain a license to build Susitna-lDatana Hydro 16 �• k. l=� tea+, OUR GOAL r-uiAwke Vubiit about Susitna-Watana Hydro In March 2012, the Alaska State Legislature commissioned a statewide poll to gauge public sentiment on a number of issues. One question asked survey participants if they supported the Susitna-Watana Hydro project. Overall, 53 percent said yes, 28 percent said no and 19 percent were unsure. Other research indicated that many Alaskans simply did not know enough about the project and, furthermore, that they wanted to learn more about it. The Alaska Energy Authority implemented the public outreach campaign to help educate Alaskans about Susitna-Watana Hydro. Highlights of the outreach effort for 2012 included a new name, logo, website and collateral materials. Alaska Energy Authority also launched a Facebook page in December 2012 to engage the public through social media. Informational radio spots were aired in communities throughout the Railbelt. AEA ensured that broadcasted spots were educational and comprised of factual information. The scope and estimated cost of Susitna-Watana Hydro make it imperative that AEA continue to communicate accurate information so that Alaskans can stay informed as the project progresses. 17 Report t5 the Legislature 2012 Susitna-Watana Hydro is a complex undertaking that will require intense collaboration with dozens of agencies and other stakeholders to succeed. The Alaska Energy Authority has made a commitment to manage the project in a way that engages stakeholders and provides opportunities to participate in the licensing process and other facets of the endeavor. Throughout the year, the Susitna-Watana Hydro team participated in dozens of public meetings, speaking engagements, technical workgroup sessions and other forums to collaborate with and engage stakeholders. With a project of this type and scope, criticism and opposition from some groups can be expected. The Alaska Energy Authority is committed to listening to concerns and providing accurate information whenever possible. In August 2012, the Alaska Energy Authority held its board meeting in Talkeetna, a community that has concerns and some opposition to the Project. The board made this decision to demonstrate its commitment to open dialogue and the sharing of accurate information. OUR GOAL U , communication with stakeholders Suisitna-lllatana Hydro Susitna-Watana Hydro Status Report as of Dec. 31, 2012 FY2009- Project Costs FY2011 FY2012 FY2013 Budgeted Amount & (in thousands of dollars) Actual Actual To Date Encumbrance Committed Funds Total Site Determination & Pre -Feasibility (Prior to Pre -Application Document) 2,487.0 4,011.3 - - - 6,498.3 Personnel - 625.7 321.7 - 2,126.5 3,073.9 Licensing Costs: - Engineering Feasibility Study 1,244.2 3,451.0 3,946.4 1.0 8,642.6 Board of Consultants - 30.1 145.0 224.8 399.9 Detailed Engineering Design - - - 3,524.0 3,524.0 Utility Cooridor, Department of Transportation Analysis 450.8 88.7 53.8 125.0 718.3 FERC Licensing Support - 510.0 465.8 496.0 216.1 1,687.9 Office of Project Management & Permitting - 165.7 265.4 2,173.6 1,306.0 3,910.7 Resource & Feasibility Studies - 4,915.7 5,593.6 9,019.7 11,135.3 30,664.3 Project Management Consultation - 533.3 76.6 159.1 31.0 800.0 Technical Assistance - 104.0 - 42.3 653.7 800.0 Permitting - 2.0 3.6 - 194.4 200.0 Logistical Support - 134.3 2,085.3 100.8 563.4 2,883.8 GIS - 199.2 178.2 372.8 56.7 806.9 Website and Public Info Library - 40.8 9.2 7.2 1,392.8 1,450.0 Communications - 9.5 64.2 87.4 546.9 708.0 Legal - 1,084.5 309.1 728.4 534.6 2,656.6 Travel - 29.1 24.7 - 18.9 72.7 Project Office - 106.4 50.0 311.3 467.7 Bureau of Land Management Advances - 100.0 - 100.0 Unallocated - - - - 5,934.4 5,934.4 Total Project Costs 2,487.0 14,166.5 13,117.2 17,332.5 28,896.8 76,000.0 Funding Sources FY2009 FY2011 FY2012 Total Railbelt Energy Fund 1,528.1 65,700.0 67,228.1 General Fund 8,771.9 8,771.9 Total Funding Sources 1,528.1 8,771.9 65,700.0 76,000.0 19 Report to the Legistature 2012 ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS Hugh Short, chairman Commissioner Susan Bell, vice chair Commissioner Bryan Butcher, member Ron Arvin, public member Wilson Hughes, public member Robert Sheldon, public member Gary Wilken, public member STAFF Sara Fisher -Goad executive director Alaska Energy Authority PROJECT TEAM Wayne Dyok Justin Crowther project manager project technician wdyok@aidea.org jrowther@aidea.org Bryan Carey Sandie Hayes engineering manager administrative assistant bcarey@aidea.org shayes@aidea.org Betsy McGregor Nick Syzmoniak environmental manager project economist bmcgregor@aidea.org nsyzmoniak@aidea.org Emily Ford Julia Bosma public outreach liaison licensing and permitting manager eford@aidea.org jbosma@aidea.org Andy Morton Deborah Vo procurement manager project manager— rural energy amorton@aidea.org dvo@aidea.org Susitna-Watana Hydra 29 Susitna-Watana Hydro is just one project the Alaska Energy Authority (AEA) is working on to diversify Alaska's energy portfolio. In 2008, the State created the Renewable Energy Fund (REF) with the intent to appropriate $50 million annually for five years. This legislation placed Alaska in the forefront of most states in the country in funding for renewable energy. The Legislature authorized AEAto manage the REF project application process, project evaluations, recommendations, completion of grant agreements and disbursement of funds to grantees. In 2012, the Renewable Energy Fund was authorized for another 10 years, providing an additional $50 million for renewable energy projects statewide. Eligible technologies include wind, geothermal, hydrothermal, certain types of biomass, biogas, wave, tidal, waste heat utilization, river in -stream power, hydropower and solar. Renewable Energy Fund achievements to date: • 558 applications received since introdi • 227 projects funded • 183 grants in place • $202.5 million appropriated since intrc • $45 million in annual fuel savings by 2( Alaska's renewable energy projects In 2010, Alaska adopted one of the most ambitious renewable energy goals in the U.S.: 50% of power from renewable resources by 2025. 21 Report to the Legislature 2012 EMERGING ENERGY TECHNOLOGY FUND In an effort to reduce the cost of energy in Alaska, AEA is also encouraging innovation through the Emerging Energy Technology Fund which was created through the Alaska Sustainable Energy Act (Senate Bill 220). Together with a matching grant from the Denali Commission, $8.9 million was made available for the development of emerging energy technologies in Alaska that can be brought to commercialization with in five years_ In November, sixteen projects were selected to receive grants through the fund. Among the projects are initiatives to increase efficiency for diesel generators, develop hydrokinetic resources, enhance wind power and storage capabilities and explore a small community, self- regulating power grid. Alaska faces some of the highest energy costs in the nation. These initiatives continue to put Alaska at the forefront of finding innovative solutions and new energy technologies, while helping to create a vibrant energy sector. OUR GOAL lying Alaska's energy portfolio Susitna-&tam Hydro 22 �� SUSITNA-WATANA HYDRO Clean, reliable energy for the next 100 years.