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Alaska Department of Natural Resources
Division of Mining, Land and Water

Grant Lake Hydroelectric Project

map of grant lake area

Project Description

Alaska Electric and Energy Cooperative, Inc. d.b.a. Kenai Hydro, LLC (KHL), has proposed to construct a five-megawatt hydroelectric project that would be located on Grant Lake and Grant Creek, near the community of Moose Pass. The project as proposed would generate approximately 18,600 megawatt hours of energy annually. The Grant Lake Hydroelectric Project will divert water from Grant Lake and deliver the flow to a powerhouse located near the outlet of the existing Grant Creek natural, incised rock canyon.

In May 2019, the Federal Energy Regulatory Commission (FERC) issued a Final Environmental Impact Statement for the proposed Grant Lake Hydroelectric Project followed by an order granting KHL an original license (No. 13212) for the proposed Grant Lake Hydroelectric Project in August 2019. These documents may be accessed in the Federal Documents section below. Construction of the proposed project requires multiple authorizations for the use of state land. More information can be found below.

Easement

On February 2, 2021, DMLW received an application for an easement from KHL for portions of infrastructure related to the proposed Grant Lake Hydroelectric Project on DMLW-managed lands, serialized as ADL 233782. The application was most recently amended on February 25, 2022, to adjust the dimensions of the proposed easement to account for an expansion of the associated leasehold. The application requests the grant of an easement approximately 2,400 feet long, 100 feet wide and approximately 5.5 acres in size to authorize a 110-foot single lane bridge spanning the Trail Creek Narrows, a 24-foot wide access road, an aerial transmission line, and communication and control cables. A detailed description of the proposed easement can be found in the Preliminary Decision for ADL 233782.

Preliminary Decision - ADL 233782

Lease

On July 19, 2021, DMLW received an application for a public and charitable lease from KHL for the portions of infrastructure related to the proposed Grant Lake Hydroelectric project on DMLW-managed lands, serialized as ADL 233857. The application was most recently amended February 25, 2022, to correctly depict the associated land ownership in the project area as well as update the proposed lease boundary. The application requests a 46.8-acre, more or less, leasehold with the majority being located adjacent to Grant Creek on the southern bank, approximately halfway between Grant Creek and the Trail Creek Narrows with an approximate 5 acres located on the waters of Grant Lake for the associated intake infrastructure. A detailed description of the proposed leasehold can be found in the Preliminary Decision for ADL 233857.

Preliminary Decision - ADL 233857

Water Rights

The DMLW Water Section received a water right application from Kenai Hydro to divert water for the project. Up to 395 cubic feet per second (cfs) will be diverted via a tunnel and returned to Grant Creek at a powerhouse approximately 0.6 miles downstream. The partially dewatered reach (bypass reach) is steep and contains natural barriers blocking salmon from entering Grant Lake. To protect aquatic habitat and macroinvertebrates, minimum flows will be provided in the bypass reach. Downstream of the powerhouse flows will be maintained to protect salmon habitat. Flows downstream of the powerhouse will exceed those in the bypass reach by at least an order of magnitude. Minimum flows in both reaches will vary by season. Minimum flows by season in both reaches are listed on page 6 of the FERC license.

Application for Water Right - LAS 27264

Plan Amendments

In order to facilitate the project, the Kenai Area Plan (KAP), the Kenai River Comprehensive Management Plan (KRCMP) and the associated Special Use Designation (SUD) must be amended. The KAP determines management intent, land-use designations, and management guidelines that apply to all state lands within the planning area. The KRCMP is the basis for management of state land and waters within the Kenai River Special Management Area and other state land within the planning boundaries of the management plan. The SUD provides for the management of recreational uses and development activities that can occur within the SUD boundaries. This hydroelectric facility was not anticipated when these plans were developed. Because economic and social conditions within the area have changed, amendments are necessary to recognize the changing conditions and facilitate authorizations for the Grant Lake Hydroelectric Project. The various amendments are linked below.

Kenai Area Plan Amendment

Kenai River Comprehensive Management Plan & Special Use Designation Amendment

Notice

The public is invited to comment on the easement and lease decisions, water rights application, and proposed plan amendments. To ensure consideration, written comments must be received by May 9, 2022 using the comments section of this website. Comments on the easement/lease, water rights, and plan amendments must be separate from each other. The public can also submit written comments by letter to the contacts below:

Easement Public Notice

Lease Public Notice

Water Right Application Public Notice

Plan Amendment Public Notice

Contacts

Easement:
Evan Dodd
Easement Adjudicator
550 West 7th Avenue, Suite 900C
Anchorage, AK 99501
(907) 269-7480
evan.dodd@alaska.gov

Water Rights:
Carl Reese
Statewide Hydroelectric Coordinator
P.O. Box 111020
Juneau, AK 99811
(907) 465-2533 carl.reese@alaska.gov

Lease:
Cole Hendrickson
Lease Adjudicator
550 West 7th Avenue, Suite 900C
Anchorage, AK 99501
(907) 269-8555
cole.hendrickson@alaska.gov

Plan Amendments:
Rob Earl
Land Use Planner
550 West 7th Ave. Suite 1050
Anchorage, AK 99501
(907) 269-8533
rob.earl@alaska.gov

Project Area Map

Download Grant Lake Hydroelectric Project Area Map

Federal Documents

Final Environmental Impact Statement for Hydropower Licenses. May 2019. Prepared by Federal Energy Regulatory Commission.

Order Issuing Original License. August 2019. Prepared by Federal Energy Regulatory Commission.

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