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HomeMy WebLinkAbout2023.11.17 BPMC.ExecutedMinutesBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) SPECIAL MEETING MINUTES November 17, 2023 Alaska Energy Authority Board Room, 12:30 pm 1. CALL TO ORDER Chair Brad Janorschke called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 12:37 p.m. 2. ROLL CALL (for Committee members) Homer Electric Authority - Brad Janorschke (Homer Electric Association (HEA)); John Burns (Golden Valley Electric Association (GVEA); Tony Zellers (Matanuska Electric Association (MEA); Arthur Miller (Chugach Electric Association (CEA); Curtis Thayer (Alaska Energy Authority (AEA); Rob Montgomery (City of Seward) 3. PUBLIC ROLL CALL (for all others present) Kent Sullivan, general counsel for AEA; Jennifer Bertolini, Ryan McLaughlin, Bryan Carey, Pam Ellis, Mark Ziesmer, Jim Mendenhall (AEA); Brian Hickey (BPMC); Matt Clarkson, Sherri Highers, Mike Miller, Russell Thornton, Dustin Higher (CEA); Dan Bishop (GVEA); Larry Jorgenson, Andy Patrick, Martin Law (HEA); David Pease, Ed Jenkin (MEA). 4. AGENDA APPROVAL MOTION: Curtis Thayer asked to swap Agenda Items 6 and 7 and moved to approve the Agenda as amended. Aurthur Miller seconded the motion. The motion to approve the agenda, as amended, passed without objection. S. PUBLIC COMMENTS - None. 6. NEW BUSINESS A. Grid Resilience and Innovation Partnerships (GRIP) - Department of Energy (DOE) Grant Discussion Curtis Thayer shared that the Committee has not talked in general about the fact that BPMC was successful in receiving $206.5 million from Department of Energy for our GRIP 3 round. To help put it in perspective, 700 applications, concept papers were submitted. Fifty-eight (58) were chosen, and of those 58, obviously, we were one of them. And we also received the fifth highest award amount in the country. And that's in GRIP 1, 2, and 3. So, we're in a very unique position. BPMC Minutes 77177123 Page 1 of 5 2 AEA is currently in negotiations with the Department of Energy regarding several different points. We've met one deadline in this process. We have another deadline coming up on November 28th and another one on December 21st, dealing with partnerships and cybersecurity. As part of the negotiations, we've solicited questions from the utilities that we can pass along to DOE. The questions cover scope, procurement, questions about routing and so on. Office of Management and Budget (OMB) had questions about the match requirement. Normally, DOE likes to get these negotiations done within six months, and we're basically a month into it. So hopefully we'll have some more clarity as we go on. Jim Mendenhall, from Bryan Carey's group, will serve as the Project Manager. So, he will be the point person with DOE. And we're also working with OMB to establish an office or a project team of 8-10 people. Curtis introduced Jim to committee members. Jim stated it's a great project and should be exciting. We have eight years to do it. We'll go through the planning and NEPA process, and then a couple of years to put it in place. He looks forward to working with everyone on the project. Curtis asked if Bryan has an update on the key points that are due November 28th. Bryan Carey responded that one of the first things we need to do is to create a cybersecurity plan. Brian Hickey has been very helpful in working with utilities and a third party. He has a proposal, so we will be reviewing that. And then, as Curtis mentioned, we have a lot of questions about the negotiations, how we move forward, what's included in the scope, how the state comes up with the match. In the next month and a half, get all those things ironed out. Curtis asked Brian Hickey to speak to the issue of the cybersecurity. Brian Hickey stated that the DOE Funding Opportunity Announcement requires that a cybersecurity plan be in place by December 21 st--45 days after the notice announcement. It is not something that's covered under the grant funding, and it has to be done before the grant negotiations are complete. So we have to hire a consultant to help us with our plan. We reached out to AESI, who changed their name to Acumen. Acumen worked with the Railbelt Cybersecurity Working Group to develop their AKSIT standards about two years ago. So, they know us, and they know our systems. The cybersecurity plan has to be consistent with National Institute of Standards and Technology (NIST) standards. In addition, DOE requires that you identify where you deviate from NIST standards. We asked Acumen to provide us with a proposal to perform the work, which I just received a couple of hours ago. It's been emailed to committee members for you to review. Acumen will develop the cybersecurity plan and have a draft to us by November 28th. They guarantee there would be a one -day turnaround for comments received. After they've responded to comments, we submit the cybersecurity plan to DOE by December 21st. They send it back and say they want something done. We give it to Acumen, and they fix it. Acumen also included in the scope BPMC Minutes 11/17123 Page 2 of 5 3 of work three round trips with DOE. The amount of the proposal is a not to exceed amount of $36,400. We need approval from this committee to give them the go ahead. Committee members briefly discussed the need for the cybersecurity plan and the proposal to get the work done. They asked why they hadn't received this information earlier so they could review and be prepared to ask questions.. Curtis stated that we received the award letter less than three weeks ago and a link to information about requirements a week ago. We didn't realize the depth this goes to. But he understands committee members request to receive information as soon as possible. Brian stated that If we can give Acumen the go ahead to start Monday, then we can receive the first draft of the plan by the November 28th. That will give the state a week or two to review and provide comments, Acumen turns it around and the state can submit the cybersecurity plan to DOE. Committee members asked Bryan what DOE is looking for in the cybersecurity plan, if he can speak about that in open session. Bryan responded that DOE has a website with information about cybersecurity. It's public information. They have an 18-page document that describes what they require in the plan. And there a templates to fill out. But fundamentally, you have a plan around penetration. You have to identify the risk security level of the asset, which ours would be risk level one and two, because it's control centers tied to the project and then the OT equipment in the field. So you're going to do an asset inventory of those, and then how you prevent penetration. Then if you're penetrated, how you respond to that, and what the outcomes of that are. It's quite detailed. But I will send the link to DOE's website to committee members and you can share and pass it on. Chair Janorschke stated the next question is who's going to pay for this consultant. And we need a resolution to approve moving forward using Acumen for the not to exceed amount of $36,400. Brian stated he would recommend that MEA issue a task order to Acumen to do this work and then somehow bills the rest of the utilities for their portion. I've been working through MEA on this, so they're already plugged in on the deal. Curtis Thayer wanted to raise with committee members the fact that it's going to take coordination with all the utilities to go through this process. AEA doesn't want to be accused of stepping out of bounds. So that's why I want to make sure it was out in the open here with Acumen's proposal. AEA has the funds and is willing to use them, if we want to split it a different way. It's just our procurement process can be slow sometimes and we are on a short deadline here. Chair Janorschke stated that he will entertain a motion to approve hiring Acumen consultants to assist us with the cybersecurity and MEA will issue the task order. BPMC Minutes 71117123 Page 3 of 5 rd MOTION: Curtis Thayer moved that Bradley Lake Project Management Committee approve Brian Hickey hiring Acumen for a not to exceed amount of $36,400 to prepare a cybersecurity plan in support of the GRIP Grant. Matanuska Electric Association (MEA) will issue the task order to fund this contract and be reimbursed by project participants based on their share of the project. John Burns seconded the motion. Committee members briefly discussed and clarified how the payments would be shared. Chair Janorschke asked if there were any other questions or comments. Hearing none, he asked for a foll call vote. Roll call vote was taken and the motion passed unanimously. (yes-6; no-0) MOTION: Curtis Thayer moved that the Bradley Lake Project Management Committee enter into executive session to discuss confidential financial matters regarding required project work and federal funding opportunities, the immediate knowledge of which may have adverse effect on the Authority or the project. Aurther Miller seconded the motion. Roll call vote was taken and the motion passed unanimously. (yes-6; no-0) 7. EXECUTIVE SESSON - 12:57 p.m. (Bylaws Section 5.11.4) - To discuss confidential financial matters regarding required project work and federal funding opportunities the immediate knowledge of which may have an adverse effect on the Authority or Project. The Committee reconvened its regular meeting at 1:28 p.m. Chair Janorschke stated that we had a motion by Aurther Miller and seconded by John Burns to come out of executive session. No action was taken during executive session. 8. MEMBER COMMENTS John Burns - appreciate everybody being able to meet on such short notice. Thank you, Curtis, for sharing some insight. Tony Zeller - no comments. Curtis Thayer - I want to thank everyone for meeting on short notice and helping us with some guidance, too, as far as responding to the Department of Energy on their short time period. Arthur Miller - Thanks, Curtis, for bringing this together. Good discussion this afternoon and really appreciate it. And good to see everybody. Have a wonderful Thanksgiving. Rob Montgomery - No comments. I'm good. BPMC Minutes 11/17123 Page 4 of 5 E9 Chair Brad Janorschke - I have nothing. It's just been very snowy and lots of outages. Welcome to Winter. 9. NEXT MEETING DATE - December 8, 2023 10. ADJOURNMENT Chair Janorschke adjourned the meeting at 1:30 p.m. Brad Janorsc e, Chair Curtis Thayer, Secretary BPMC Minutes 11/17123 Page 5 of 5