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HomeMy WebLinkAboutAK Canada Intertie study 2009Sitka B ue LakeGrocnLake ' .Potorsburg 3]e %*e Potersburg 4 Coffman Cove Proposed Generating Stations Se et[1]Mahoney Leke-9 6 MW (2010+)Naukati @ ..[B)Scenery Crear -30 May (20159) GB fen Uns.20 Mw 20154) [@)Cascade Creek -45 MWV(20154} (S]Whtren Lame -46 MW 2010+} [6]Reynotds Crack -50 MW (20 104) Potential Future Generating Stations [2]Sete Rover.42 Mi (20159) [Bb]Wearget NerowsTl-10 100 MW (2018+) [e]Taez-20 M7) )Galore Creck :Substation rNmn.*ao.on 4 re _-*ton /™"ao me ey 8 . a 3%oe elThomeBay-3 .: ,a )° ; ©Swan Lake : io \ :i] a . 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' Oetee Nyelaciane seat PReeree%tL.STTe A wel SRM Ot tAn BChydro © TRANSMISSION _SYSTEM sistas Pe!eENS20SnwiBis +Wantetrere @ +eves creates tration@-ttee Mettaties seat@»deree,coemectoes pratnen me Capekiven stare BCE DW.sO G.Tes-BsBNBe STATIONS APPLICA TORE woke hoot ¥cs ye ipo tremors5.oo oe!oe Maney ©04.Coete oP DOra wa Oe 10TS ies ne Shen Alaska-Canada Energy Coalition ACEcoatition "The Time is Now Conference” If you are a business interest,government official or just interested in ex- panding Alaska's economy,reversing regional population contraction,cre- ating energy security and creating Alaskan jobs in the fastest developing energy industry sector in the world,then this is a conference you will not want to miss! This conference will explore how the Southeast Alaska Region and State of Alaska can best coordinate its many resources,economic skills and financial capabilities to implement a strategy that will enable Southeast Alaska communities and their private sector partners to generate more affordable and renewable energy.A market for our "surplus”hydroelectric energy through British Columbia to the North American grid provides the creation of affordable and low cost energy development through energy creation at economies of scale. We appropriately note the continuing economic and population decline of Southeast Alaska -and can state that presenters will help define the challenges and opportuni- ties our region faces -and propose a vision and strategy through which the Southeast Alaska Intertie and link with BC and the North American grid will bring economic pros- '|perity and quality of life improvements throughout our region. Now that the North American Grid is planned to be 35 miles from Southeast Alaska it is time to capitalize on Southeast Alaska's renewable energy resource development and transform Southeast Alaska's economy creating a new renewable energy industry bringing jobs,economic growth and energy security. How real is this opportunity?Can we capitalize on this?Do we have the political will, the economic skills and financial capabilities to seize this opportunity?These are some of the thought provoking questions that national and state experts will address throughout this one day focused symposium. This conference will explore how economies of scale used in other Alaska resource industries can be used to develop Southeast Alaska's next resource development in- dustry. Alaska-Canada Energy Coalition ACEcoatition "The Time is Now” Key Conference Speakers Sam Ori, Director of Policy at The Electrification Coalition Sam Ori is the Director of Policy for the Electrification Coalition and a principal author of the Electrifi- cation Roadmap,the coalition's sweeping report outlining a vision for the deployment of a fully inte- grated electric drive network.Ori's energy career began at Securing America's Future Energy (SAFE), _|_a Washington,D.C.,advocacy group dedicated to im proving U.S.energy security to safeguard eco- nomic stability and promote a more robust foreign policy.His primary areas of coverage included global oil market dynamics and U.S.policy concerning domestic production of oil and natural gas.Ad- 'J ditional areas of policy responsibility included trans portation fuel economy and electrification of trans- portation.Ori was responsible for SAFE's signature oil crisis simulation,Oil ShockWave. http://energypolicyinfo.com http:/Awww.secureenergy.org http://www.electrificationcoalition.org Tim McLeod, President and General Manager of Alaska Electric Light and Power. Mr.McLeod currently serves as the President of the Juneau Chamber of Commerce.AELP has re- cently submitted for approval an experim ental tariff for electric vehicles in Juneau. http:/Awww.aelp.com Bernie Karl, President of Chena Power,LLC and owner of Chena Hot Springs Resort Chena Hot Springs is a world-class resort where Karl has pioneered the use of geothermal energy attheChenaresort,located 56 m iles east of Fairbanks.In 2006,Chena and United Technologies Corp.brought online power plant technology using the geothermal-heated water found under the resort's lands and United's high-speed turbines to generate electricity.Mr.Karl is recognized world wide as a 4 renewable energy innovator and developer that possesses a clear "can do”Alaskan tenaciousness. http:/Avwww.chenapower.com http:/Avww.chenahotsprings.com http:/www.seattleindustry.org/FA08_gusher.php +9 ae 9 cocemeeeeeAlaska-Canada Energy Coalition E =i @)ACEcoatition "The Time is Now” Jeffrey A.Leahey,Esq. Director of Governmental Affairs,National Hydropower Association Hydropower expansion could create 700,000 U.S.Jobs Jeff Leahey joined NHA in June 2002 and was promoted to his current position in January 2007.Jeff monitors legislative,regulatory and legal issues affecting the hydro industry and represents the asso- ciation before Congress,FERC and the federal resource agencies.Jeff also provides staff support to NHA's Legislative Affairs,Regulatory Affairs and Hydraulic Power Committees. Mr.Leahey is an attorney,licensed to practice in Massachusetts.He graduated from Northeaster Uni- versity Law School in 1999.He is also a graduate of Washington University in St.Louis,Mo,where he received a BA in biology and political science. http://www.hydro.org Ed Beswick,PE Founding Member Highway 37 Coalition and Hard Creek Nickel Corporation Electrifying British Columbia to create Prosperity and Jobs Environmental Manager Mr.Beswick is a registered professional mining engineer and was the for- mer north central British Columbia Regional Mines Manager operating out of Prince George for eight years.Prior to this he was the Kamloops District Inspector of Mines and Resident Engineer and Re- gional Reclamation Inspector -Inspector of Mines.More recently,Ed was Project Manager for British Columbia's first transportation Public,Private,Partnership;the Sierra Yoyo Desan Road located east '4 of Fort Nelson,and has ongoing invo!l vement with other B.C.based mining companies. Mr.Beswick is also active in industry as Vice President representing District 6 for the Canadian insti- tute of mining,Metallurgy and Petroleum as well as serving as Vice Chair of the Environment Commit- tee for the Mining Association Of British Columbia. htto:/Awww.highway37.com Alaska-Canada Energy Coalition ACEcoatition "The Time is Now” Key Conference Speakers and Presentations Representing US Senator Lisa Murkowski McKie Campbell,Republican Staff Director,United States Senate Committee on En- ergy and Natural Resources US Senator Mark Begich DVD message to ACE US Representative Don Young DVD message to ACE |Opening Committee Jeremy Maxand,Mayor City and Borough of Wrangell 4 Merrill Sanford-Vice Mayor Juneau,Co-Chair SE Conference Energy Bob Loescher-Retired CEO Sealaska,Native issues advocate |Other key participants pending confirmation Agenda "The Time is Now” 8:00AM Opening Ceremonies -Logistical announcements Ernie Christian-President Alaska-Canada Energy Coalition-Welcome to the Conference Jeremy Maxand -Mayor Borough and City of Wrangell Merrill Sanford -Vice Mayor City of Juneau,Co Chair SE Conference Energy 8:30 Federal Legislative Delegation prepared opening comments-prepared video message Senator Lisa Murkowksi,Senator Mark Begich,Congressman Don Young The Call to Action:Converting Vision into Reality Through Partnership 8:45 Bob Loescher,Alaskan Native Leader -What is the Need,Where is the Vision 9:00 The Northwest Transmission Line_What it Means for Alaska Ed Beswick,Founding Member-Highway 37 coalition Gordon Loverin,Co-Chair Northwest Transmission Line Roland Bailey,Valard -What Jobs Mean 10:00 -10:15 Break How Alaskans and Alaska can take Charge of our Future Development 10:15 Bernie Karl,CEO ChenaPower -We're Alaskans We Can DO THIS! 10:50 United States Forest Service Perspectives and Issues-US Forest Service Vision and Plans for hydro and other renewable electric generation and transmission projects on the Tongass 11:15 Alaska's experience with economies of scale 11:45 Tim McLeod,President and General Manager AEL&P -Local Electrification Vehicle Initiatives 12:00 -1:00PM Catered lunch with informal table discussions of getting the job done Jobs,Hydropower and Energy Security create Real Economic Development 1:00 Jeffrey Leahey,Esq.-National Hydro Association -Jobs Creation with Hydro 2:00 Sam Ori -Electrification Coalition -A New Paradigm in Energy 3:00 -3:15 Break 3:15 McKie Campbell -Senior Energy Policy Advisor Senator Lisa Murkowski -The Senator has a Vision 4:00 Senator Dennis Egan -Moderates Expert Panel Discussion-Opportunities,Challenges,Goals 5:00 ACE coalition Closing Statement §:30 Meet and Greet Reception following Open to all Participants and Legislators Agenda subject to revision J Where When Centennial Hall Thursday,February 17,2010 101 Egan Drive 8AM to 5 PM Juneau,AK 99801 Reception to follow,Lunch provided REGISTER ON LINE WWW.ACECOALITION.COM Pre-REGISTRATION:$75 by February 16th eal Oo (SAVE $25 BY REGISTERING EARLY,REGISTER NOW..,.LIMITED SEATING) O REGISTRATION IS $100 at Door so Register now Oo (REGISTRATION INCLUDES LUNCH AND SEMI-HOST BAR RECEPTION TO FOLLOW FOR MEET AND GREET) QUESTIONS? Paul Southland,Special Project Director ACEcoalition.com 360-961-4286 paulsouthland@acecoalition.com ACEcoatition -]OO0OOL"The Time is Now” FORREST.KE & "Fy ry ka Hydro OOOTTravel -Hotels -Car Rental Information Travel: Alaska Airline www.alaskaair.com Reservations Toll Free:800-252-7522 Alaska Marine Highway www.akferry.com Reservations Toll Free:800-642-0066 Hotels with Discounted Rates: The following hotels have each reserved a block of 20 rooms at a discounted rate.The discounted rate will only be good from February 16,2011 through February 19,2011 (check out on February 20,2011).When making reservations please ask for the Acecoalition block of rooms. Prospector Hotel .375 Whittier .Street .Juneau .AK .99801 www.prospectorhotel.com Phone:907-586-3737 Toll Free Alaska:800-478-5866 Toll Free in US:800-331-2711 $89.00 Mountain View $99.00 Water View Rooms are equipped with wireless internet and premium amenities Goldbelt Hotel .51 Egan Drive .Juneau .Alaska .99801 www.goldbelthote!.com Toll Free:888-478-6909 $134 Mountain View or Water View Rooms are equipped with wireless internet and premium amenities The discounted rates above are ONLY good,if you book your room by January 16,2011. These rooms are available on a first-come,first-serve basis. Car Rental: Budget Rent-A-Car -Juneau Toll Free Alaska:800-796-1086 Airport Phone Number:907-790-1086 Email:budgetiuneau@gci.net Budget Rent-A-Car in Juneau will offer reduced rates from February 15,2011 -February 20,2011. Compact -$35.00 per day Mid-size -$37.00 per day Full Size -$40.00 per day When making reservations please ask for the "ACE”rates. Alaska-Canada Electrical Intertie Study Working Group February 12,2009 9am-3pm Nolan Center,Wrangell,AK MINUTES 1.The meeting was called to order by J.C.Conley,Chair who explained to those assembled how the AK/BC Work Group was first established by the previous administration and recapped the work done by the committee in multiple meetings to examine the possibility and viability of exporting energy out of southeast Alaska and how that effort fit into the development of the Southeast Intertie Plan. 2.Welcome from City &Borough of Wrangell,Mayor Don McConachie who thanked all those who had traveled to the meeting and encouraged all the attendees to work together toward common goals.Special recognition was extended to Chief Elmer Derrick,First NationsHereditaryChiefofGitsegukla. 3.Alaska Energy Authority,Jim Strandberg spoke to the purpose of this meeting that was requested by Wrangell last November.It is critical for the people of the region to work together.Many things have changed since the inception of this project,including the State's efforts to develop and energy plan,the renewable energy fund grants and restructuring of the 4DPPA to SEPA.Co-sponsor Tlingit &Haida Tribal Energy Director,Percy Frisby spoke of the Tribe's efforts to support ongoing efforts in southeast and their unique relationship with the federal government that he hoped would benefit the region.Southeast Conference Energy Coordinator,Robert Venables spoke of the exciting times for improving energy infrastructure while at the same time there were still many communities facing severe challenges and high energy costs.He updated the group on S.E.Conference's efforts and accomplishments and the facilitation work done to make the community priorities more effective within the region and with the State of Alaska.He also recognized and thanked the City and Borough of Wrangell staff and the Nolan Center for their help with this meeting. 4.Mr.Steve Haagenson,AEA Executive Director,discussed the Alaska Energy Plan and the recent Renewable Energy Grants.Multiple (about 28)community public hearings were held throughout the state to identify resources that could be developed as well as understand what resources the communities did NOT want to see developed.The current document shows the range of energy resources available and relates the associated cost to develop those resources with a corresponding price of oil.With this community assessment now complete,the next step is to develop an implementation plan for these resources as well as a plan to deliver energy to areas with no available resources (interties where they make economic sense).Haagenson also explained the process for distributing the renewable energy grants and provided a handout of applications received and the evaluation process utilized.Chair Conley thanked Mr.Haagenson for the great work done by the state and reminded everyone that the AEA website has a wealth of information from the past and present.He stated that the goal today was to find ways to meet Alaskan's energy needs. There is not opposition to any other projects that may move forward with private funding partnerships.The Chair intends to allow everyone an opportunity to speak and hopes that common goals can be achieved. 5.Wrangell Community Planning Efforts:Jeremy Maxand,City &Borough of Wrangell Assembly Member,spoke of the local interest in Wrangell to pursue the AK/BC intertie. They feel this project offers economic opportunities for the region and would nationalize this energy issue and possibly bring federal funds more readily to southeast.He stated that this project is in Wrangell's "backyard”and is a resource they want to develop.He sees energy as a commodity much like fish that can be exported.Wrangell would like to see the AK/BC project developed to "shovel-ready”status.Securing permits to the Canadian border will also mean buying a company that currently holds permits.They would also like the AEA funds used to hire a consultant and issue a RFP to identify other unknown and outstanding development issues and possible funding scenarios.Other uses of funds could be for travel and federal lobbying.Charlie Freeman asked about the benefits to the state and asked how much energy would be used in-state vs.exported.The response was that more energy capacity would be needed in-state but that there were not a lot of current facts or figures available to fully answer the question.Duff Mitchell stated that Angoon wants to supply its energy needs from Scenery Lake and that an AK/BC intertie would allow Kake and Angoon an opportunity to sell wind power.Lisa Lang thanked AEA and Wrangell for allowing the communities to come together to discuss the issues and spoke about her many years of advocating for the Reynolds Creek hydro project.She has learned that collaboration works and clear facts are needed to succeed.She urged Petersburg and Wrangell to work out their differences and have good hard facts. 6.Update on Potential for Transmission Expansion in NW BC:Tim Jennings (BCTC)started the discussion with a historical recap of progress made to date,the planning studies to Bob Quinn Lake and hopes for working with local mining companies to supply their energy needs.This abruptly ended in 2007.Galore is currently revisiting the project economics.In September 2008,the Province provided funding for environmental assessment work for the NTL extension that should be complete later in 2009,but no construction funding or commitment has been made yet.The EIS scope of work still ends 60-70 miles short of the U.S.border.Mr.Rohan D.Soulsby,Director of Market Operations and Development,B.C. Transmission Corporation spoke to the process required by their tariff for any line extensions to the Canadian grid (applications have to be for interconnection to the existing system,not proposed extension).BCTC has received interconnection requests from Alaska (AP&T's Soule River hydro at Hyder and an incomplete application from Cascade Creek, LLC).There is no commitment from the B.C.government to do any construction work and they have not yet identified potential project partners.Projected costs are approx.$400 million in 2007 dollars for the portion of line under discussion (not to U.S.border).An audience member asked about a possible submarine cable connection from Ketchikan to Prince Rupert.BCTC has not looked at that option and no work is ongoing toward it.The Chair thanked BCTC for participating and announced a 10 minute break. 7.Canadian First Nations Update.After reconvening,the Chair welcomed the Canadian guests and asked Chief Elmer Derrick,the First Nations Hereditary Chief of Gitsegukla to address the committee.Chief Derrick spoke to the efforts of the NW Tribal Treaty Group and the Highway 37 Coalition in advocating for the NTL.Their communities are facing high unemployment and their timber and fisheries industries have been greatly diminished. Energy will be key to improved and new economies.He believes the Premier is supportive of the NTL project and that ultimately it will be constructed with a public/private partnership.However,elections are scheduled for May and no commitments can be made until after the elections.Politics can change the direction of the project.A lot of capital spending has been devoted to the 2010 Winter Olympics and toward the Whistler Highway. AK/BC Roundtable Discussions:Mr.Bob Loescher suggested a public/private partnership could advance the export of surplus energy and give the region a "green”industry.He believes generation facilities should be separate from transmission entities and wants a new authority created to manage it.Native efforts can help,as could Canadian partnerships. Mr.Warren Edgely mentioned his trip to DC with Duff Mitchell and the Angoon Mayor and shared his observation that the era of earmarks is over and that funding will be made ona competitive basis.Kake Mayor Henrich Kadake encouraged those present to be sure that all activities and project development are done in public (like this meeting)and not done secretly.We need to work together -and honestly.Jon Bolling noted that everyone seems on board with finding ways to deliver cost-effective energy to communities.This committee advises and is not in a position to appropriate funds.Chris Brewton said that many southeast communities are still on diesel or are headed back to diesel for supplemental energy.New projects are becoming too expensive for communities to build on their own and a regional approach will be necessary to develop new energy sources.Bob Prunella believes that the AK/BC project will be needed eventually -especially if economic development occurs.The Hatch study has been completed,next steps should be taken.Steve Hensen observed the need for good facts and called for an investigation of existing facilities and their capacity to handle projected energy flows.Efforts could be made in parallel with the work being done by the Canadians.Jim Strandberg reminded the group that the AK/BC report did model the export option and reviewed the Canadian market at that time.The dynamics in the markets and region have and are changing.He urged folks to take a look at the report and see if the answers they were looking for have already been provided.Some updating may be in order.Charlie Freeman said that Ketchikan did not have an official position on this project and was generally supportive as long as there were no negative impacts to Ketchikan.Paul Bryant suggested keeping the focus on meeting the regional needs.The national situation is uncertain and there are still significant energy issues in southeast that need to be addressed.Joe Nelson said a request to update information was valid and appropriate but that AEA was better equipped to expend the funds and advance the project.Ted Smith agreed and said that southeast's needs should come first.Kake is still in dire straits and needs help.The communities should hash out their differences and move forward once a consensus is developed.Rural economies cannot be sustained without affordable energy.Gary Williams has been working with Kake for 20 years and said that although Kake's needs are well articulated and spoken of often,the needs are still there. Alaskan needs must be met first.Jodi Mitchell represents the rural communities who are totally dependent on diesel-generated power.Kake has been long promised help an dit should be their turn now.Percy Frisby spoke in favor of AK/BC but said there are a lot of questions still.There is no construction schedule on the Canadian side anda lot of coordination will be needed.He sees a need for an overall plan that outlines what the system should be built as and how operated.Communities are suffering and alternatives need to be looked at and solutions found that will be practical.Jim Strandberg thanked all who spoke and recognized that full and technical discussions would be needed to plan properly.Timing is important.It often takes 2-3 years for transmission projects and up to 10 years for hydro facilities.Questions remain on which projects to build and how the network will evolve as well as what role SEPA might play.Jeremy Maxand said the most important issue for Wrangell was to get the project back on track and information updated. 9. 10. 11. 12. Working Lunch with Update on the Kake -Petersburg Intertie from John Heberling and John White,D.Hittle &Associates (teleconferenced).John Heberling began with an overview of their task to review the 2005 Intertie Study with an analysis of the northern route to an equal manner as the other routes examined (and those costs updated as well).He discussed the work the AK DOT&PF has done recently and various other issues related to construction,the submarine cables needed,location of substations and how this intertie fits into possible future development of a regional intertie system.John White spoke to the permitting issues as well as the design features and cost trends being seen at this time. Record high construction costs were experienced during 2008 and with many nationwide energy projects under construction,the forecast for 2009 was for pricing to be status quo to slightly lower.The federal stimulus package may actually drive costs up for projects in the western U.S.Switchbacks in the road could add 10-15%to costs and the ultimate line size would also be a factor (69Kv more than adequate but 138Kv even more expensive if trying to build to a future system standard).More information to be presented to SEC in March. AK/BC Discussion cont'd:Steve Haagenson ,Executive Director,Alaska Energy Authority addressed the audience and Work Group and posed the question,"What is the most important thing the community needs?What are the economic factors of the region and what is the highest and best use of hydro resources,sending them to Canada?Can we use the resource to develop jobs and economic development here in Alaska?”He further stated that dissension will lead to failure and that collaboration is a must.Regional planning with a holistic approach must take place so that all the pieces fit together.The stakeholders need to come together and figure out the common ground and be able to articulate "what's the plan”and "where are you going”.Come up with one answer. Southeast Alaska Power Agency Update:Dave Carlson,CEO (via teleconference).An update was given on the restructuring of the 4DPPA and the successful bond issuance.The transaction should be completed on Feb.24,2009.For the first time there will be an agency solely focused on southeast Alaska.Ratepayers should benefit for years to come.The Swan/Tyee Intertie project is going well.Towers are being assembled and the project and should be online in late 2009.He attributed the success to the regional support and said it is the model for getting the rest of the intertie system built.Jodi Mitchell asked about surplus power for Kake.There is plenty of surplus power available for years to come.The coldest months of the year are the only time when a shortage might occur.There may be a couple of months when the diesels have to run,but the rest of the year,all facilities are spilling water. AK/BC Discussion cont'd:A letter from the grassroot Tahltan Elders (Canadian First Nations)was received and read to the Work Group.They have long-standing concerns about potential impacts that this project might have on "very sensitive ecological areas”,including fish runs on the Iskut and Stikine River.Chair Conley gave a historical account oftheAK/BC Work Group's work that led to the published report.He offered support for asking AEA to have the original contractor answer any specific questions if there were issues not addressed in the report.He would like to wrap up the public comment so that the board can take action.Nan Nalder spoke to the very public process that was used in preparing the AK/BC report.Duff Mitchell (business development director for Cascade creek LLC)stated that many economic factors had changed recently.Nan Nalder responded that the models used could easily be run again with the updated information.Don Koenig raised the issue of Wrangell's request for $655,000 from AEA and the municipality's relationship with Cascade Creek LLC.They have a secret,non-disclosure agreement.How does this benefit southeast Alaska?He felt that a regional authority should receive any public funds for developing regional projects.Private enterprise has a place in developing resources but the process and agreements need to be transparent.He feels the non- disclosure agreement should be made public.Rhonda Dawson (representing herself)spoke of Wrangell's passion for the project and asked that the Work Group write a letter of support for Wrangell to receive AEA funding to move the project forward.Steve Rutz,a Wrangell citizen on the local energy committee recognized that there were a lot of differences but thought Cascade Creek had a project of 36MW for a market of SOMW and that exporting power would be a necessity.Wrangell could lead the project development. Angoon Mayor,Albert Howard gave an overview of conditions in Angoon,population 438 with high unemployment (87%)and in a dire economic situation.They are determined to do whatever is necessary to make improvements.He heard in D.C.that the U.S.Department of Energy would support the southeast intertie if the region came together with a plan,but we need to do it together.The Angoon City Council is totally involved and committed to this course of action.His hope is to have Congressman Young present the AK/BC proposal to President Obama.Jim Strandberg asked Mayor Howard about the Thayer Creek hydro project in Angoon.The mayor did not have any news to report regarding its development and referred to IPEC CEO,Jodi Mitchell for information.She replied that her utility is very supportive of the Thayer Creek project and has offered many times to assist with its development but information from Kootznoowoo has been hard to get.Mayor Howard repeated his invitation to Southeast Conference to come to Angoon and see the issues first hand.Mr.Harold Martin,President of Kake Tribal encouraged people to listen to one another and work with a spirit of cooperation.He does not believe in the word,"can't”andsaidthereneedstobealevelplayingfield.Chair Conley repeated his desire to have thepubliccommentsconcludedinordertoallowtheWorkGroupanopportunitytotakeaction before adjourning to catch flights out of town.Jon Bolling offered to make a motion that would include 4 points:(1)Ask AEA staff to collect input from the Work Group and the public on how the Hatch report can be updated,(2)Include in item 1 above new scenarios calculated through the report's economic model,(3)Wrangell,Petersburg and Angoon should meet to resolve the multiple FERC municipal preference applications for the various power projects at Thomas Bay,(4)The City and Borough of Wrangell should,through the municipal office,formally request,in writing,an appropriation of AK/BC funds from AEA with a detailed scope of work attached to show how they want to spend the money (much like the format used in the HB 152 grants).Another audience member asked to speak and inquired what role the local energy committee could play in the development of the AK/BC intertie.Wrangell is trying to "step out and take the bull by the horns...Wrangell is struggling (lost 40 students at school)...Wrangell is asking for money so the intertie and road can be developed...This project is the only way to develop hydropower for industry...we want the money.”The Chair again reminded the audience that the meeting had already gone beyond the scheduled time for adjournment and recommended that Wrangell outline their requests as suggested by Mr.Bolling and AEA and the Work Group would convene to consider whatever formal request was submitted.If it is just a matter of updating information,the appropriate entity to perform this is AEA.Steve Haagenson acknowledged that there were differences expressed today,but there is much in common that all could agree on.The local and regional energy needs are the first priority and AEA would continue to investigate both the AK/BC intertie and the Southeast Alaska Intertie System Plan. 13.Motion to Adjourn (Ted Smith),Second (Joe Nelson),passed with two opposed. Alaska-Canada Electrical Intertie Study Working Group February 12,2009 9am-3pm Nolan Center,Wrangell,AK 1-800-315-6338 code 3069# AGENDA 9:00 Call to Order -J.C.Conley,Chair 9:05 Welcome from City &Borough of Wrangell,Mayor Don McConachie 9:10 Sponsor Statements: Alaska Energy Authority,Jim Strandberg Tlingit &Haida Tribal Energy Director,Percy Frisby Southeast Conference Energy Coordinator,Robert Venables 9:20 Introductions 9:30 The Alaska Energy Plan &Renewable Energy Grants:Mr.Steve Haagenson,AEA Executive Director 10:00 Update on Potential for Transmission Expansion in NW BC:Mr.Rohan D.Soulsby Director,Market Operations and Development,B.C.Transmission Corp. 10:30 Wrangell Community Planning Efforts:City &Borough of Wrangell 11:00 AK/BC Roundtable Discussion:J.C Conley,AK/BC Working Group Chair 11:45 Tribal Energy Planning in Southeast:Percy Frisby,Tribal Energy Director Noon Lunch (provided on site) 12:30 The Southeast Alaska Intertie:Robert Venables,SE Conference Energy Coordinator and Panel Discussion from Regional Utility Managers including update on Kake Intertie from John Heberling,D.Hittle &Associates 1:00 Vision for the Future -How to Develop and Manage Generation &Transmission Assets in Southeast Alaska:Steve Haagenson ,AEA *Discussion of State's investment of public dollars on behalf of ratepayers in smaller, rural communities and expectation of equalized generation and transmission rates. 2:00 Southeast Alaska Power Agency Update:Dave Carlson,CEO 2:30 Closing Remarks &Next Steps:J.C Conley,Chair 3:00 Adjourn Northwest Transmission Line Project Update to: Alaska -British Columbia Intertie Project Advisory Work Group Public Meeting October 29,2007 eetBa a ciccBCTransmission CORPORATION Building Connections Overview ¢About BCTC,BCH and transmission system ¢Northwest Transmission Line (NTL) Overview Route Right-of-Way and structures ¢«Key milestones and construction CORPORATION Building Connections About BCTC ¢Crown corporation formed in 2003 ¢Role:Plan,operate and maintain B.C.'s publicly owned electrical transmission system ¢Reports to:Minister of Energy,Mines &Petroleum Resources; regulated by British Columbia Utilities Commission About BC Hydro¢Crown corporation formed in 1962 ¢Role:Owns core transmission assets in the Province and is responsible for facilitating consultations with NTL First Nations on behalf of BCTC ¢Reports to:Minister of Energy,Mines &Petroleum Resources; regulated by British Columbia Utilities Commission "=”BC Transmission CORPORATION Building Connections The transmission system Fort Nelson BRITISH COLUMBIA A |OM ini eeeDesicimaor all Peace Canyon@HydroelectricGenerationG.M.Sh@SteamTurbineGeneration-M.OnrUm ©SO0KV Substations A Interconnections =Series Capacitor Stations ni a Cranbrook Seven Mile U.S.A **Kootenay Canal 'eo. * BC Transmission CORPORATION Building Connections Interconnected grid: ¢Approximately 18,200 km of transmission lines and cables ¢95,500 towers and poles «290 stations ¢5 control centres The transmission grid in B.C. operates at voltages from 69 kilovolts (kV)to 500 kV and | stretches over 75,000 hectares. NTL -overview ¢A new 335 km,287 kV transmission circuit ¢Route from Skeena Substation (near Terrace)to a new substation near Bob Quinn Lake ¢Would not replace the existing 138 kV circuit from Skeena Substation to Meziadin Junction xo "="BC Transmission CORPORATION Building Connections Norwest jransmission ine (NIL) \&f FSNasBORQUINNLAKE7uf fo.FUTUREysBCRQUINlsSUESTATION -, ", aN ,,XN +MEZIADIN RR SUESTATIONso, STEWART / Vis \??f.NEW AIVARSH fi:WeuARSEaeemeaevee!*(OO efy( fé ,asA@Go."ny .tees % :NTL ROUTE ALTERNATIVES come |EXISTING TRANSMISSION LINE BRITISH COLUMBIA ee eaeg Na| KITWANGAkd 1 »% |60 ml | 1S0km | NTL routing ¢General route location based on initial studies ¢Alternative routes being studied in some locations ¢New ROW required for much of route,even where route parallels existing 138 kV line NTL route ¢New corridor/right-of-way will: -Permit the straighter right-of-way required by a 287 kV circuit -Avoid difficult terrain -Minimize visual impacts -Lessen environmental impacts ¢Detailed route planning is underway ¢Exact route and structure placement will take into account: -Results of environmental studies and environmental assessment -Input from consultation with First Nations and stakeholders -Engineering design factors BC Transmission CORPORATION Building Connections Right-of-way ENITIAL INITIAL CLEARING CLEARING BOUNDARY BOUNDARY A PROPOSED 287 kv APv ROW width:38 m clearing on each side for security of line ELECTRICAL BOUNDARY ELECTRICAL BOUNDARY P 19.0 m | \nNNN Extra one-timeNNAXRRQ4xZXZXZXVAN TYPICAL NEW RIGHT -OF -WAY "=BC Transmission CORPORATION Building Connections Potential structure types ProposED 287 Kv proposeo 287 xv WOOD POLE ALTERNATIVE proposed 287 Kv _ ¢ t z ates DO St is ; et 3 :EVtg:;:; Be pa 7 ":: 4 /?}ia VArwews/7 0 NN WA,é&77 \\/VIN MLK \jj\Nv i . \3 :\/3-'a as 12508 3.55: . =TYPICAL LATTICE STEEL 7 -"7 ae V-GUYED TANGENT STRUCTURE Vjy Sg iT ALTERNATE LATTICE 8TEEL TYPICAL WOOD POLE OR STEEL POLE GUYED Y TANGENT H-FRAME TANGENT STRUCTURESTRUCTUREwiV-STRING ws "BC Transmission CORPORATION Building Connections NTL construction plans Two-phased By Fall 2009: -Build new substation near Bob Quinn Lake -Build circuit between Meziadin Junction and Bob Quinn Lake,interconnecting to temporary switch yard near Meziadin Junction -Energize at 138 kV By Fall 2011: -Construct circuit from Skeena Substation to Meziadin Substation -Upgrade Skeena Substation -Remove temporary facility near Meziadin Junction -Energize circuit between Skeena Substation and Bob Quinn Substation to 287 kV we * "BC Transmission CORPORATION Building Connections Key milestones Milestone First Nations and public consultation Dates (subject to change)NDOngoing Project description accepted by BCEAO June 2007 File draft EA Terms of Reference (TOR)with BCEAO October 2007 Community meetings November 2007 Draft TOR public comment period November 13 -Dec 13,2007 Finalize TOR;complete studies and effects assessments January 2008 File Environmental Assessment Certificate application with BCEAO End of January 2008 45-day public comment period for EAC application/community meetings March/April 2008 Referral of EAC application to ministers Summer/early fall 2008 Ministers'decision re Environmental Assessment Certificate Fall 2008 First stage construction starts Winter 2008/09 First stage in-service Oct 2009 Second stage construction starts Winter 2009/10 Project completion/in-service October 2011 For more information www.bctc.com (link to Northwest Transmission Line Project via home page) Tim Jennings BCTC Major Projects 604-699-7633 tim.jennings@bctc.com Rohan Soulsby BCTC,Director Business Development 604.699.7431 rohan.soulsby@bctc.com " -"BC Transmission CORPORATION Building Connections htiY iorspeerswe re 'iNingunsawRiver randerLake! Ancial Park wedah1}A"Annhtuutukwsiin Laxmihi Angwinga'Assasion!Nisga' xspasumkateeSNed Pacific Ocean ig Reality Mountain. ar British Colum bla Tranwmission Corporation -Proposed Northwest Transmimion Line Route Z r 4) as é -e ee Hajake™Mount Herman i -Lakelse Lake”sae?Provincial Pa ES Gir Provincial Park." atl ae erad yA :*Lakes Lake Westangy =Pu?Pe)fy =ProvineialPark ™f YW + " LAWS OF ALASKA 2010 Source Chapter No. SCS CSHB 306(FIN)am S AN ACT Declaring a state energy policy. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: THE ACT FOLLOWS ON PAGE 1 Enrolled HB 306 AN ACT Declaring a state energy policy. *Section 1.The uncodified law of the State of Alaska is amended by adding a new section to read: LEGISLATIVE INTENT.It is the intent of the legislature that (1)the state achieve a 15 percent increase in energy efficiency on a per capita basis between 2010 and 2020; (2)the state receive 50 percent of its electric generation from renewable and alternative energy sources by 2025; (3)the state work to ensure a reliable in-state gas supply for residents of the state; (4)the power project fund (AS 42.45.010)serve as the main source of state assistance for energy projects; (5)the state remain a leader in petroleum and natural gas production and become a leader in renewable and alternative energy development. -I-Enrolled HB 306 OofFANNDAFPWWHN=10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 *Sec.2.AS 44.99 is amended by adding a new section to read: Sec.44.99.115.Declaration of state energy policy.The State of Alaska recognizes that the state's economic prosperity is dependent on available,reliable,and affordable residential,commercial,and industrial energy to supply the state's electric, heating,and transportation needs.The state also recognizes that worldwide supply and demand for fossil fuels and concerns about global climate change will affect the price of fossil fuels consumed by Alaskans and exported from the state to other markets.In establishing a state energy policy,the state further recognizes the immense diversity of the state's geography,cultures,and resource availability.Therefore,it is the policy of the state to (1)institute a comprehensive and coordinated approach to supporting energy efficiency and conservation by (A)encouraging statewide energy efficiency codes for new and renovated residential,commercial,and public buildings; (B)decreasing public building energy consumption through conservation measures and energy-efficient technologies;and (C)initiating and supporting a program to educate state residents on the benefits of energy efficiency and conservation,including dissemination of information on state and federal programs that reward energy efficiency; (2)encourage economic development by (A)promoting the development of renewable and alternative energy resources,including geothermal,wind,solar,hydroelectric, hydrokinetic,tidal,and biomass energy,for use by Alaskans; (B)promoting the development,transport,and efficient use of nonrenewable and alternative energy resources,including natural gas,coal,oil, gas hydrates,heavy oil,and nuclear energy,for use by Alaskans and for export; (C)working to identify and assist with development of the most cost-effective,long-term sources of energy for each community statewide; Enrolled HB 306 -2- OoS®SNADBOAFFWWNH=NONONONOYFYFKFKFFOFEESOSwoNY-|&COCOOSFNHNHDNHFHPWYNY|O&O(D)creating and maintaining a state fiscal regime and permitting and regulatory processes that encourage private sector development of the state's energy resources;and (E)promoting the efficiency of energy used for transportation; (3)support energy research,education,and workforce development by investing in (A)training and education programs that will help create jobs for Alaskans and that address energy conservation,efficiency,and availability, including programs that address workforce development and workforce transition;and (B)applied energy research and development of alternative and emerging technologies,including university programs,to achieve reductions in state energy costs and stimulate industry investment in the state; (4)coordinate governmental functions (A)by reviewing and streamlining regulatory processes and balancing the economic costs of review with the level of regulation necessary to protect the public interest; (B)by using one office or agency,as may be specified by law, to serve as a clearinghouse in managing the state's energy-related functions to avoid fragmentation and duplication and to increase effectiveness;and (C)by actively collaborating with federal agencies to achieve the state's energy goals and to meet emissions,renewable and alternative energy,and energy production targets. -3-Enrolled HB 306 LAWS OF ALASKA ae meos eee2002.-ed SECOND SPECIAL SESSION Source :,ChapterNo.«HCS CSSB2006(FIN)amH..3 's1"SSSLA 2002 "4 AN ACT Making and amending appropriations and reappropriations;making appropriations under art.IX,sec.17(c),Constitution of the State of Alaska,from the constitutional budget reserve fund;and providing for an effective date. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: THE ACT FOLLOWS ON PAGE 1 AN ACT Making and amending appropriations and reappropriations;making appropriations under art. IX,sec.17(c),Constitution of the State of Alaska,from the constitutional budget reserve fund;and providing for an effective date. (SECTION |OF THIS ACT BEGINS ON PAGE 2) -1-HCS CSSB 2006(FIN)am H Legishative finance Diucsion 8l Summary of Appropriations Chapter 1] Tony KNOWLES GOVERNOR governor@ygov state ak ur P.O.Box 110001 Juncau,Alaska 99801-0001 (907)465-3500 Fax:(907)465-3532wwwgov.state.ak usSTATEOFALASKA OFFICE OF THE GOVERNOR JUNEAU June 28,2002 The Honorable Rick Halford President of the Senate Al sate Legislature NY ital qd K 99801-1182 Dear President Halford: On ihis date I have signed with line item vetoes the following bill passed by the second special session of the Twenty-second Alaska State Legislature and am transmitting the engrossed and enroiled copies to the Lieutenant Governor's Office for permanent filing: SENATE BILL NO.2006 "An Act making and amending appropriations and reappropriations;making appropriations under art.1X,sec.17(c),Constitution of the State of Alaska,from the constitutional budget reserve fund;and providing for an effective date." Chapter No.1,SSSLA 2002 Throughout the session,there were many claims from members of the legislative majority that variousprogramshadtobecut,the state could not afford my proposed investments in education and child protection,and cerlain projects in my capital budget could not be funded because there was not enough money.From those statements,Alaskans might have expected a very Jean state-funded capital budget.Infact,the combined costs ofthis capital budget bill,the two general obligation bond bills,and the debtreimbursementbillresultinoneofthelargestobligationsofstatefundsforcapitalconstructioninmany years. is that despite this capital "largesse”,only a token level of funding was provided for one ofthePcelementsofmyproposedinfrastructureprogram:deferred maintenance.Whereas I proposed ing $137 million of debt to repair,and in some cases replace,aging state facilities from Pioneers Homes to prisons,the legislature provided only $10 million toward a nearly billion dollar problem.The legislature itself recognized the magnitude of deferred maintenance needs facing out state just a few years ago when it appointed a task force to focus on this problem. In this capital budget bill alone,legislators added some $23 million dollars for projects in their districts.Alaskans will undoubtedly disagree about the necessity of many of these legislative capital budget add-ons,especially at a time when the legislature claimed funds were so scarce that they had to cut public safety,roads and state parks.Nevertheless,many ofthese add-ons have worthwhile purposes such as schoolrepair,programs for seniors and children,and local road improvements.A few are for projects that mostAlaskanswouldagreearestateresponsibilities.But the level is much higher than in recent years and thatfliesinthefaceoffiscalrestraintandlegislativeclaimsofinsufficientfundsforbasicservices. The Honorable Rick Halford June 28,2002 Page 2 I believe most Alaskans would agree that some ofthese projects are unwarranted under presentcircumstances.I have vetoed them for the reasons outlined below. The first three vetoes total $220,000 which is nearly the amount the legislature could have used to restore winter maintenance on the Steese Highway.While recognizing the abundance of mosquitoes in Alaska, asking the state to pay for "mosquito magnets”cannot be justified.That's why I have vetoed the $20,000 grant to Larsen Bay to purchase them (page 6,line 32).Nor does the state have an obligation to provide $150,000 in operating funds for the private non-profit Alaska Aviation Heritage Museum (page 20,line 9), especially when the group has claimed for years that it could be self-supporting and we don't even have enough funds to operate all our state-owned parks.The production of another video on how to trap wolves is unnecessary because an adequate video is available to the public through the Alaska Department of Fish and Game.So I have vetoed $50,000 to the Alaska Trappers Association to produce another video (page 20,line 26). Several larger appropriations for things that are not typically state responsibilities surfaced very late in the legislative process and received virtually no public discussion.The legislature added $100,000 to study the feasibility of constructing a new World Trade Center office building in Anchorage (page 99,line 8).I. vetoed it because there is no evidence that this building is needed by state agencies or that the private sector is unable to provide adequate commercial space in Anchorage. I vetoed a grant for $500,000 directed to the Alaska Geospacial Information Coalition (page 138,line 22) which includes a private sector mapping company.This constitutes a sole-source grant without competitive public bid.Further,questions have been raised regarding the amount of information generated with thisgrantthatwillbeavailableinthepublicdomain.This grant would just be the first installment ofa multi-year multi-million dollar state commitment.It is imperative that geomapping be pursued in strict compliance with state procurement rules and that we know in advance precisely how the public needs and interests will be met.There are excellent reasons to pursue private-public partnerships for detailedmappingofthestate.I will direct state agencies to develop a plan outlining an appropriate process formovingthestateforwardtodeterminehowthepublicandprivatesectorscanworktogethertoachieve the laudable goals of improved,widely accessible mapping data. I vetoed another late-breaking appropriation which was a $1 million no-interest loan to the community of Delta Junction for payment of its settlement agreement in litigation over the unsuccessful private prison proposal there (page 121,line 26).The loan would be converted to a grant if the community joined a borough.The state was not a party to this litigation and there is no public purpose for state expenditures in legal settlements in which the state has no interest.The state should not be viewed as the deep pocket by private parties dealing with local governments. T have vetoed a grant to the Matanuska Electric Association (MEA)for $10 million (page 131,lines 13 and 24)and reduced another MEA grant (page 131,lines 13 and 22)from $6 million down to the $500,000 amount which was in HB 175,a package of Railbelt Energy Fund projects.Unlike other projects funded in the capital budget from the Railbelt Energy Fund,the $10 million item appeared only at the last minute and no project justification or back-up was provided.The increase from a $500,000 to a $6 million project was also made at the last minute with no justification or back-up. As detailed in my operating budget transmittal,the legislature appropriated more money to the debt retirement fund than will be needed next year,even as it claimed there was not enough money to maintain Legislative Finance Diuision 79 Summary of Appropriations Chapter 1] The Honorable Rick Halford June 28,2002 : Page 3 ' basic services.This was partly due to a particularly disingenuous accounting method of setting the date for the $20 million general fund appropriation so it takes effect in the current fiscal year rather than FY2003. This is clearly a maneuver to mislead the public concerning legislative spending levels.I am reducing the "supplemental”appropriation in this bill (page 130,line 18)by $8,468,300 so the amount funded for debtserviceinthetwobillsequalstheanticipatedneedfornextyear. Despite written notification from both the Legislative Finance Division and my Office of Management and Budget,the legislature over-appropriated the maximum allowable dividend from the Alaska Industrial Development and Export Authority (AIDEA)by $1 million.I do not think it is appropriate to fix this error by reducing the long-standing community capital matching grants program or eliminating state funding for subsistence activities in the Department of Fish and Game.(I do think it is imperative that the legislature switch subsistence funding back to general funds next year.)Therefore,I took the only viable alternative which is to correct the over-appropriation by reducing the amount of AIDEA dividends used for Federal Aid Highway State Match (page 49,lines 11 and 19-20).If more matching funds are needed once final congressional action is known,the next legislature can correct this year's error with a supplemental appropriation, The legislature appropriated money to itself for two studies which could have been partially funded with federal funds if the appropriations had been made to the Department of Health and Social Services (HSS).The first appropriation for one study is to Legislative Budget and Audit to develop a state health facilitiesplan(page 100,line 6)with the second appropriation of federal funds for that study going to HSS (page100,line 31).Although the study appropriations call for about half state and half federal funds,the federalfundswillnotbeavailableandthe$31,300 in reappropriated state funds will not be adequate to do the work so J am vetoing both parts.The other is a study of welfare and Medicaid recipients funded with $200,000 in general funds (page 108,line 16)even though HSS officials told legislators Medicaid couldpayhalfofthatiftheappropriationwenttoHSSinstead.I have also vetoed these two appropriationsbecausestudiesofthiskindaremoreappropriatelyconductedbytheexecutivebranchand,in the case of the latter study,because of the bad precedent of having funds go to the appropriate executive branch agency via a contract with a legislative body. As I noted in my operating budget transmittal letter,my administration started the session hopeful of developing the coming year's budget within the framework of a long-range fiscal plan.As in past years, we were also hopeful of working on the budget with the legislature in an open process with full disclosure of the true financial impacts of providing services.I think the public shared these hopes,but they were not fulfilled in this session.Alaskans deserve more than the shortsighted approach used by recent legislatures. I hope future legislatures will recognize that it is not acceptable to spend billions of public dollars providing services on which Alaskans depend without the context of a long-range fiscal plan. Sincerely, Lokles 'ovemor Legislative Finance Diucsion 80 Summary of Appropriations Chapter 1 woeonDAWfFWN=---OoAPPROPRIATION GENERAL ITEMS FUND Kwigillingok -Fuel Tank Purchase [EQUIPMENT 25,000 25,000 SHELTER](ED 39) *Sec.72.HOUSE DISTRICT 40.(a)The unexpended and unobtigated balance of the appropriation made in sec.1,ch.61,SLA 2001,page 55,lines 9 -10 (King Cove upgrade of septic tank and pump equipment -$25,001)is reappropriated to the Department of Community and Economic Development for payment as a grant under AS 37.06.010 to the City of King Cove for a powerhouse upgrade. (b)The unexpended and unobligated balance of the appropriation made in sec.100, ch.2,FSSLA 1999,page 81,lines 4 -5 (Cold Bay dock electrification project -$25,000)is reappropriated to the Department of Community and Economic Development for payment as a grant under AS 37.06.010 to the City of Cold Bay for community center construction. (c)The unexpended and unobligated balance of the appropriation made in sec. 100,ch.2,FSSLA 1999,page 88,lines 28 -29 (Pilot Point,Dago Creek upgrade -$25,000)is reappropriated to the Department of Community and Economic Development for payment as a grant under AS 37.06.010 to the City ofPilot Point for repair oflandfill road.11,531,700 *Sec.73.ALASKA DEBT RETIREMENT FUND.The sum of $29,000,000 is appropriated from the general fund to the Alaska debt retirement fund (AS 37.15.011). *Sec.74.ALASKA MARINE HIGHWAY SYSTEM FUND.The sum of $20,000,000 is appropriated from the general fund to the Alaska marine highway system fund (AS 19.65.060). *Sec.75.BANK OF AMERICA.(a)The unexpended and unobligated balance,not to exceed $50,000,of the appropriation made by sec.41,ch.61,SLA 2001 (Bank of America case -$425,000)is reappropriated to the Department of Community and Economic Development for payment as a grant under AS 37.05.316 to the Alaska Moving Image Preservation Association for the planning and assessment project of the legislative media preservation project. (b)The unexpended and unobligated balance,not to exceed $50,000,of the appropriation made by sec.41,ch.61,SLA 2001 (Bank of America case -$425,000)is reappropriated to the Department of Transportation and Public Facilities for the installation of HCS CSSB 2006(FIN)am H -130- s t a prototype weather station in a severe high altitude location known to generate avalanches in 2 Eagle River. 3 *Sec.76.DEFERRED MAINTENANCE.The sum of $10,000,000 is appropriated from " 4 the general fund to the Department of Administration for deferred maintenance of state 5 facilities.The.Department of Administration may use these funds for deferred maintenance 6 of state-owned facilities operated by other state departments. 7 *Sec.77.DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT.If 8 approved by the United States Department of Commerce,the sum of all loan payments 9 currently held in the disaster relief fund (AS 26,23.300),estimated to be $475,000,and all 10 subsequent payments,estimated to be $40,000,resulting from the 1997 Bristol Bay and 11 Kuskokwim River economic disaster loans authorized under sec.2,ch.34,SLA 1998,are 12 appropriated to the bulk fuel revolving loan fund (AS 42.43.25)DoD UY13*Sec.78.ENERGY PROJECTS.(a)The sum of $48,872,006is appropriated from the 14 Railbelt energy fund (AS 37.05.9520)to the Department of Community and Economic 15 Development for payment as grants under AS 37.05.316 to the recipients named,for the 16 purposes described,and in the amounts set out below: 17 RECIPIENT PURPOSE APPROPRIATION 18 Homer Electric replacement power supply $2,000,000 19 Association for Seldovia 20 Golden Valley Parks Highway line extension,872,000 21 Electric Association Ester to Mile 320 500,coo22MatanuskaElectricLucassubstationunderground088; 23 Association line and Pioneer line extensions 24 <<] 25 Association 26 We transmission line between 2 Dougtas-and Stevens 29 (b)The sum of $19,300,000 is appropriated from the Railbelt energy fund 30 (AS 37.05.520)to the Department of Community and Economic Development for payment as 31 a grant under AS 37.05.315 to the Municipality of Anchorage for Anchorage Municipal Light "131./HCS CSSB 2006(FIN)am H Legislative Finance Division 146 Summary of Appropriations Chapter | oOoSeHSBHOAOROYNSand Power for Eklutna project transmission line upgrade. (©).The sum of $20,300,000 is appropriated from the Railbelt energy fund (AS 37.05.520)to the Department of Community and Economic Development,Alaska Energy Authority,to upgrade and extend the Anchorage to Fairbanks power transmission intertie to the Teeland substation. *Sec.79,FUND SOURCE FOR FY 2003 DEPARTMENT OF PUBLIC SAFETY,FIRE PREVENTION,APPROPRIATION.The operating appropriation made for the fiscal year ending June 30,2003,to the Department of Public Safety for fire prevention in a version of HB 403,or other version of the operating appropriation bill for fiscal year 2003,that is passed by the Twenty-Second Alaska State Legislature and enacted into law includes an appropriation of the unexpended and unobligated balance on June 30,2002,of the receipts collected under AS 18.70.080(b). *Sec.80.GAS PIPELINE PERMITS.The unexpended and unobligated general fund balance,not to exceed $150,000,of the appropriations made in sec.1,ch.60,SLA 2001,page 17,line 29 (Office of the Governor,commissions/special offices -$1,527,100);sec.1,ch.60, SLA 2001,page 17,line 31 (Office of the Governor,executive operations -$8,593,200);sec. 1,ch.60,SLA 2001,page 18,line 6 (Office of the Governor,state facilities rent -$416,000); sec.1,ch.60,SLA 2001,page 18,line 10 (Office of the Governor,office of management and budget -$1,761,500);and sec.1,ch.60,SLA 2001,page 18,line 13 (Office of the Govemor, governmental coordination -$4,694,800),is reappropriated to the Department of Natural Resources for the fiscal year ending June 30,2003,for preparing the state to issue permits for gas pipeline projects. *Sec.81.REAPPROPRIATION OF LEGISLATIVE APPROPRIATIONS.(a)The unexpended and unobligated balance,not to exceed $600,000,of the appropriation made by sec.1,ch.60,SLA 2001,page 38,lines 8 -9 (legislative operating budget -$7,224,500)is reappropriated to the Legislative Council,House Rules Committee,for information technology subcommittee projects. (b)The unexpended and unobligated balance,not to exceed $150,000,of those portions of the appropriation made by sec.1,ch.60,SLA 2001,page 37,line 30,that are allocated on line 33 (Legislative Council -Administrative Services -$7,498,500)and on page 38,line 6 (Legislative Council -Legal and Research Services -$2,216,300)are reappropriated .4 HCS CSSB 2006(FIN)am H -*432-.edto the Legislative Council for capitol renovations. (c)The unexpended and unobligated balances,not to exceed $238,000,of the appropriations made in sec.80(a),ch.61,SLA 2001 (reappropriating funds to the Legislative Council for the Council of State Governments annual meeting for the fiscal year ending June 30,2002);sec.80(d),ch.61,SLA 2001 (reappropriating funds to the Legislative Council for the Council of State Governments annual meeting for the fiscal year ending June 30, 2002);and that portion of the appropriation made by sec.1,ch.60,SLA 2001,page 37,line 30,and allocated on page 38,line 5 (Council and Subcommittees -$1,490,900),are reappropriated to the Legislative Council for the Council of State Governments annual meeting to be held in 2004. (d)The unexpended and unobligated balances of the appropriations made in sec.1, ch.60,SLA 2001,page 37,line 23 (Budget and Audit Committee -$7,876,500);sec.1,ch. 60,SLA 2001,page 37,line 30 (Legislative Council -$22,539,200);and sec.I,ch.60,SLA 2001,page 38,line 8 (legislative operating budget -$7,224,500)remaining after the reappropriations in (a)-(c)of this section are reappropriated to the following for the purposes and in the amounts stated: PURPOSE APPROPRIATION (1)Joint Armed Services Committee for the fiscal year $50,000 ending June 30,2003,for increased committee activity in response to Department of Defense issues in Alaska (2)University of Alaska nursing program for the fiscal 250,000 year ending June 30,2003,to assure the continued training of nurses to address the nursing shortage in Alaska (3)Alaska Mental Health Trust Authority to conduct a 100,000 review and evaluation of alcohol grant programs and report back to the legislature on outcomes, results,and effectiveness of those state-funded programs.It is the intent of the legislature that the Alaska Mental Health Trust Authority match this -133-HCS CSSB 2006(FIN)am H 147 Summary of Appropriations Chapter 1 AEA:Southeast Alaska Energy Export FY2007 Request:$3,200,000 :Reference No:AMD42109 APYAL:Appropriation Project Type:Planning Category:Development Location:Southeast Alaska Contact:Ron Miller House District:Southeast Districts 1-5 Contact Phone:(907)269-3000 Estimated Project Dates:07/01/2006 -06/30/2009 Brief Summary and Statement of Need: Funds are needed for the analysis,design,and potential development of an electrical intertie between the State of Alaska and the Province of British Columbia.This project will provide the groundwork for the possible export of energy from Alaska hydroelectric power resources to British Columbia and the lower 48 electrical power grid. Funding:FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Total Gen Fund $3,200,000 $3,200,000 Total:$3,200,000 $0 $0 $0 $0 $0 $3,200,000 : State Match Required '4 One-Time Project {Phased -new i”Phased-underway |On-Going 0%=Minimum State Match %Required Amendment f”Mental Health Bill Operating &Maintenance Costs:Amount Staff Project Development:0 0 Ongoing Operating:0 0 One-Time Startup:0 Totals:0 0 Additional Information /Prior Funding History: None. Project Description/Justification:As the nation's domestic energy costs increase,exporting Alaska hydropower becomes increasingly economically viable. One route (the ALCAN Intertie)was permitted in 1988;the proposed intertie starts at Tyee Lake,traverses northeast uptheBradfieldCorridor,then northeast down the Craig River to the British Columbia border.The British Columbia Transmission Corporation gains stability by connecting to Southeast Alaska and provides an opportunity for SoutheastAlaskatodevelopelectricityfromlocalhydroelectricresourcesthatcouldeventuallybesoldtoU.S.energy markets. The Alaska Energy Authority (AEA)proposes to request export development proposals from potential developers including Southeast Alaska power producers to be awarded as a competitive grant. State of Alaska Capital Project Summary Department of Commerce,Community,and Economic Development FY2007 Governor Amended Reference No:42109 4/27106 3:00:39 PM Page:66 April 27,2006 The Honorable Lyda Green The Honorable Gary Wilken The Honorable Mike Chenault The Honorable Kevin Meyers Alaska State Legislature State Capitol Juneau,AK 99801 Dear Finance Committee Co-Chairs: Please make the following budget amendments.Section references are to CSSB 231 (FIN)version F: Amend sec.1,by adding a new Department of Commerce,Community, and Economic Development FYO7 capital project to read: Appropriation General Other Items Funds Funds _AEA:Southeast Alaska Energy 3,200,000 3,200,000 Export (HD 1 -5) Funds are needed for the analysis,design,and potential development of an electrical intertie between the State of Alaska and the Province of British Columbia. This project will provide the groundwork for the possible export of energy from Alaska hydroelectric power resources to British Columbia and the lower 48 electrical power grid. Amend sec.1,by deleting a Department of Transportation and Public Facilities project on page 45 and replacing it with a new project: Appropriation General Other Allocations Items Funds Funds [PALMER:CHUGACH 3,000,000 STREET PAVING (HD 13 -16)] Statewide:Rural 3,000,000 Airport Safety Improvements (HD 1-40) The Chugach Street Paving project is no longer necessary because funds and legislative authority are in place to allow the project to go forward immediately.Theprojectisbeingbidusingfederalauthorization.General funds are no longer needed. Finance Co-Chairs April.27,2006 Page 2 The funds are needed to address a backlog of safety improvement projects at rural airports throughout the state. Amend sec.7 by adding a supplemental appropriation for the Department of Commerce,Community and Economic Development to read: Appropriation General Other Allocations Items Funds Funds Community Assistance &50,000 50,000 Economic Development Office of Economic 50,000 Development This funding is needed due to the Office's hosting of the second annual Small Business Conference in Anchorage in June.The U.S.HUD Secretary and other high- ranking federal officials will be attending.Conference costs will be paid for by registrations and donations as statutory designated program receipts (SDPR).The Office expects the total cost to be $50,000. Backup information on the amendments is attached along with updated FY07 Capital Budget Amendments and FY06 Regular Supplemental Amendments spreadsheets.If you have any questions,please call me at 465-4660 or Joan Brown at 465-4681.Thank you. Sincerely, Cheryl Frasca Director Attachments cc:David Teal Legislative Finance ALASKA-BC ELECTRICAL INTERTIE PROJECT Steering Committee Senator Bert Stedman (representing Senate District A) Represntative Kyle B.Johansen (representing House District 1) Representative Peggy Wilson (representing House District 2) Ron Miller,Executive Director,Alaska Energy Authority Henrich Kadake,Mayor of Kake Joe Williams,Mayor,Ketchikan Gateway Borough and Mayor of Saxman Valerie McCandless,Mayor of Wrangell Bob Weinstein,Mayor,City of Ketchikan [],Executive Director of SE Conference Bill Williams,former Legislator