1993 Final Environmental Impact Statement (Volume 1 | Volume 2)

Current Status 

GVEA received notification on March 13, 2012 that HCCP’s air permit was challenged at the Environmental Protection Agency yesterday. The challengers listed are the Northern Alaska Environmental Center, Denali Citizens Council, National Parks Conservation Association and the Sierra Club. The challengers contend HCCP was permanently shut down in 2000 and that restarting the plant now should be considered the same as if it were a newly constructed plant.

This of course ignores the years of review conducted prior to the plant’s construction and all of the concessions that were made to satisfy the same group’s challenges prior to construction in 1989 and start up in 1996.

Environmental groups have been very successful in shutting down other coal plants across the country. The action taken yesterday will certainly delay HCCP startup and has the potential to block the restart at all.

The Alaska Department of Environmental Conservation thoroughly evaluated the challenger’s claims already, during the recent reissuance of Healy’s air permit and concluded no further regulatory review was warranted. We believe the state fairly reviewed the regulatory framework which allows operation of the Healy Plant in compliance with state laws, and consequently federal Laws.

We will continue to work with ADEC and the EPA to determine the best course of action to restart the plant.

We are disappointed that three of the challengers are local groups that should understand the staggering energy costs here in the Interior. That they would chose to hinder the startup of a power plant that could provide rate relief for Interior residents is equally disappointing.

If you would like to express your disappointment, email:

• National Parks Conservation Association: This email address is being protected from spambots. You need JavaScript enabled to view it.
• Northern Alaska Environmental Center: This email address is being protected from spambots. You need JavaScript enabled to view it.
• Denali Citizens Council: This email address is being protected from spambots. You need JavaScript enabled to view it.
• The Sierra Club: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

It’s important to remember that restarting HCCP will:

• Lower electric rates
• End costly litigation
• Put this $300 million state & federal asset to work

Restarting HCCP will also help diversify GVEA’s fuel mix moving us away from volatile and expensive oil. GVEA appreciates that our state and federal regulators are working with us to arrive at an amenable solution. The purchase and restart of HCCP remains a top priority for Golden Valley to get to a less expensive long-term energy solution.

History

In 1989, the U.S. DOE’s Clean Coal Technology Program selected Healy as a demonstration plant to use experimental technology to burn waste coal. HCCP began burning coal in 1998 and generated power intermittently through 1999 in its testing phase. The plant was shut down in 2000. Talks between AIDEA and GVEA to resolve disputes were unsuccessful. In 2005, AIDEA filed a lawsuit against GVEA. Subsequent mediation did not result in resolution, but the entities agreed to terms for a sale, which when complete, will end litigation.

Construction funding

Department Of Energy	$120 million
Alaska Legislature	$25 million
AIDEA	$150 million
GVEA & Usibelli Coal Mine	$10 million plus in-kind contributions

 Purchase funding

Purchase price	$50 million, funded by AIDEA
Line of credit	$45 million, funded by AIDEA

Timeline

1989	DOE selected HCCP as a Clean Coal Technology Program demonstration plant
1995-1997	HCCP constructed
2000	Plant shut down
Feb. 2009	GVEA and AIDEA reach sale agreement
2009 - Present	Purchase negotiations
Unknown	Complete purchase agreement
After purchase	18 to 24 months to make necessary modifications and bring plant online