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HomeMy WebLinkAboutAEA Board Meeting Oct 2020Alaska Energy Authority BOARD MEETING MINUTES Wednesday, October 28, 2020 Anchorage, Alaska 1. CALL TO ORDER ALASKA ENERGY AUTHORITY Chair Pruhs called the meeting of the Alaska Energy Authority to order on October 28, 2020 at 8:34 am. A quorum was established. 2. ROLL CALL: BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice -Chair Bernie Karl (Public Member); Julie Anderson (Commissioner DCCED) (phone); Anna MacKinnon (SOA-DOR) (phone), Albert Fogle (Public Member); Bill Kendig (Public Member); and Julie Sande (Public Member). 3. AGENDA APPROVAL MOTION: A motion was made by Mr. Kendig to approve the agenda as presented. Motion seconded by Ms. Sande. The motion to approve the agenda passed without objection. 4. PRIOR MINUTES - September 16, 2020 MOTION: A motion was made by Mr. Kendig to approve the prior minutes of September 16, 2020, as presented. Motion seconded by Mr. Fogle. Ms. MacKinnon reviewed three items identified for the Board's attention regarding the minutes of September 16, 2020. She requested: • To delete the word "sore" and insert the word "frustrated" on page two under Ken Castner's (sic) comments; • To insert a period at the end of the last sentence on page four; • To correct the typographical error of "Vic -Chair" to "Vice -Chair" on page six, the second paragraph from the bottom. MOTION: A motion was made by Ms. MacKinnon to delete the word "sore" and insert the word "frustrated" on page two; insert a period at the end of the last sentence on page four; and insert the letter "e" to "Vic -Chair" to read "Vice -Chair" in the second paragraph from the bottom on page six. Motion seconded by Mr. Kendig. 12Fb11JC1NG THE COST OF •• •• 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 The motion to approve the amendments of the September 16, 2020 minutes, passed without objection. The motion to approve the minutes of September 16, 2 02 0, as amended to delete the word "sore" and insert the word "frustrated" on page two; insert a period at the end of the last sentence on page four; and insert the letter "e" to "Vic -Chair" to read "Vice - Chair" in the second paragraph from the bottom on page six, passed without objection. Jennifer Bertolini, AEA, asked Chair Pruhs if attendees in the room and on teleconference should state their name and affiliation at this point in the agenda. Chair Pruhs agreed. Attendees: Ladonna Lindley (Accu-Type Depositions) (phone); Amy Adler, Jennifer Bertolini, Connor Erickson, T.W. Patch, Tim Sandstrom (phone); Aimee Sudbeck, Curtis Thayer, Kirk Warren (AEA); Dimitri Shein (Alaska Electric Vehicle Association) (phone); Mark Kelleher (Alaska Tesla Owners Association) (phone); Andy Barrow (Barrow Hanley) (phone); Basily Shportko, Bikky Shrestha (BDO); Stefan Saldanha (Department of Law); Kirk Gibson (McDowell Rackner Gibson PC) (phone); Chris Rose (Renewable Energy Alaska Project) (phone); Ken Castner (phone); Kirk Martegas (sp) (phone); and Unidentified Speaker (phone). 5. PUBLIC COMMENTS (2 minutes per person) Chair Pruhs informed speakers that public comments are limited to two minutes per person. He requested that the comments be limited to agenda items. Kirk Martegas addressed Item 9K. He requested the Board include an agenda item at the next meeting discussing the VW settlement funds, including how funds are being dispersed for EV charging infrastructure and the effectiveness of AEA's efforts. Ken Castner of Homer stated that he was very frustrated and is frustrated this morning because the Star -Nine prompt returned multiple alerts of "Your entry is not valid." He is glad to be providing public comment now regarding agenda Item 5. Mr. Castner informed that he is an elected official and undergoes public process training, including the Open Meetings Act. He emphasized the importance of the public in this process. Mr. Castner expressed hope that the Board would make it easier for the public to speak, not more difficult. Mr. Castner reiterated that he is an electric vehicle owner and supports the electrification of the route between Homer and Fairbanks. He believes this route will assist the long-distance travel that will result from the increasing EV ownership. There are seven EV owners in Homer and the market is growing. Mark Kelleher advised that he represents more than 300 Tesla owners in Alaska. He expressed support of Mr. Martegas' comments to include the VW settlement funds discussion Alaska Energy Authority Page 2 of 13 on the next meeting agenda. He supports utilizing the funds for DC fast charging infrastructure along the railbelt. Mr. Kelleher believes that this infrastructure will be a catalyst for economic growth for EV use throughout Alaska's road system. Chris Rose, Director of Renewable Energy Alaska Project, explained the entity is a statewide education and advocacy group for renewable energy and energy efficiency since 2004, who has worked with AEA on many issues. The group is currently involved in work across rural Alaska, as well as the railbelt. Mr. Rose informed that he is part of the Railbelt Reliability Council formation. He discussed major trends occurring outside of Alaska and all over the world, including Japan's announcement to go carbon neutral by 2050, and China's announcement to go carbon neutral by 2060. Mr. Rose noted that there are multiple U.S. states that have announced 100% renewable energy by 2045. He believes these trends point toward a future that AEA and AIDEA could be well -positioned to participate in financing aspects, as well as attracting industry to Alaska. Mr. Rose commented on the rising trend of electrification that is occurring, including within the transportation sector. He noted that many major automobile companies have announced cessation dates for the manufacturing of internal combustion engines and there are new market entry participants for this market. Mr. Rose offered to address the Board during a work session and discuss specifics of financing or technology. Dimitri Shein, Executive Director of Alaska Electric Vehicle Association, commented that in 2017, AEA was tasked with the responsibility of managing the VW settlement funds, of which approximately one million dollars was dedicated to building EV fast charging in Alaska. Mr. Shein noted that no charger installations have been funded during these three years. He expressed concern, based on interactions with AEA, that there will again be no charges funded in 2021. Mr. Shein advised that the Association has participated in an AEA -funded EV Working Group for almost a year and the process has yielded no results. There are no charge sites identified, no site commitments, and no sites scheduled to be built or funded. He explained that to build a fast charging corridor from Homer to Fairbanks would require approximately seven sites with 50 kW charges and the construction project is simple and straightforward. Mr. Shein believes the direct labor for the entire construction project is likely to take less than 700 man-hours. He commented that the Association's Juneau members completed a similar project in 2018, installing four fast chargers. Mr. Shein asked that the installation of the fast chargers not be treated like an academic exercise with no end in sight. He requested prioritization of efficient and timely expenditures of the VW funding for charger installation. Ms. MacKinnon asked if the Executive Director could respond to the issues that were raised during the public comments regarding the charging stations. Chair Pruhs advised that discussion will occur later. Alaska Energy Authority Page 3 of 13 MOTION: A motion was made by Mr. Fogle to enter into Executive Session to discuss confidential matters related to Bradley Lake, Soldotna-Quartz Line, and budget matters. Motion seconded by Ms. Sande. The motion was approved without objection. 6. EXECUTIVE SESSION 8:50 am Confidential matters related to Bradley Lake, Soldotna-Quartz Line, and budget matters The Board reconvened its regular meeting at 9:56 am. Chair Pruhs advised the Board did not take any formal action on matters discussed while in executive session. 7. NEW BUSINESS - Presentation of 2020 AEA Audited Financial Report, Audit Report and Examination Curtis Thayer, Executive Director, informed that the BDO auditors are present. The audit has been completed and a presentation was given to the Budget and Audit Subcommittee last week. Board members received draft documents on Friday and the final documents were provided to Board members yesterday. Mr. Thayer informed that the written recommended motion to accept the 2020 AEA audit has been provided to Board members today. Chair Pruhs requested that in the future, recommended motions are included as a subset to their respective agenda item. Bikky Shrestha, BDO, introduced Vasily Shportko, BDO. Mr. Shrestha expressed appreciation to AEA staff for providing the audit information in a timely manner to successfully complete the audit on schedule. Mr. Shrestha informed that a full discussion and review of the financial statement occurred with the Audit Committee. Small footnote changes were added and updates were made to the financial statement as a result of the discussion. Mr. Fogle stated for the record that the Budget and Audit Subcommittee reviewed the financial statements and the audit by BDO, and there were only minor wording changes and updates of figures. He stated there were no errors or concerns for the AEA side. Chair Pruhs expressed appreciation to the Subcommittee for their time and efforts. Mr. Shrestha reviewed the Audit Wrap Up document that summarizes the results of the audit for the year. The audit of the financial statements has been completed for the year ended June 30, 2020. The audit was conducted in accordance with the auditing standards generally accepted in the United States, Government Auditing Standards, and with the Uniform Guidance for the federal compliance. The objective of the audit was to obtain reasonable, not absolute, assurance about whether the financial statements are free from material misstatements, whether due to error or fraud. Alaska Energy Authority Page 4 of 13 Mr. Shrestha informed that an unmodified and clean opinion on the financial statements was issued within the report dated October 26, 2020. Additionally, an unmodified and clean opinion on the compliance with the federal requirements was issued. All the records and information requested by BDO was freely available for inspection. Mr. Shrestha commented that management cooperation was excellent throughout the process. Chair Pruhs asked how many work -hours, people, and length of time it took to complete the audit. Mr. Shrestha informed that it took five people 600 hours to complete the audit in a little more than four weeks. Mr. Shrestha discussed there were no significant changes in accounting practices, policies, and estimates. Likewise, the methods used to account for the significant or unusual transaction and related disclosures regarding the Power Cost Equalization endowment determined to be sweepable into the constitutional budget reserve were considered appropriate. Mr. Shrestha stated this item is more unusual than significant. Mr. Shrestha does not have knowledge of any other organization that uses the unique treatment as defined by legislators and interpreted by Department of Law. Mr. Shrestha reported that there were no corrected misstatements or uncorrected misstatements, other than those that were clearly trivial, related to accounts and/or disclosures that were brought to the attention of management. Mr. Shrestha indicated that there were no significant items regarding the quality of the Authority's financial reporting.There was no deficiency in internal control, no significant deficiency found, and no material weakness found. Mr. Shrestha discussed the required communications and highlighted there were no disagreements with management and no significant difficulties encountered. Mr. Fogle requested an explanation be provided regarding how the PCE endowment was changed last year and how it flows through the financial statements. Mr. Shportko explained that last year Department of Law and the Legislature determined that the PCE endowment fund is subject to a constitutional budget reserve sweep. On June 30, 2019, the endowment portfolio that had not already been obligated was swept in the constitutional budget reserve, creating a transfer out and a liability on AEA's financial statements. No physical securities or cash was transferred. It was all on paper. The Legislature then approved the reverse sweep, effective July 1, back to AEA, and AEA booked the transfer in and eliminated the liability. Mr. Shportko informed that this process will occur every year. Chair Pruhs noted that on page 22 of the Basic Financial Statements and Schedules dated June 30, 2020, under Government Activities that the Current Assets and Current Liabilities are within a million dollars of each other. Ms. MacKinnon commented that when PCE is referenced, it stands for the Power Cost Equalization funds. The Legislature, for the first time ever, treated those funds as something that could be swept, and because of the timing, there is an impact to one financial statement. She requested the auditors confirm, for the public's clarification, that her statement is Alaska Energy Authority Page 5 of 13 accurate. Mr. Shrestha confirmed Ms. MacKinnon's comments and added the one-time transfer happened in the 2019 financial statements and not in the 2020 financial statements. MOTION: A motion was made by Vice -Chair Karl to accept the 2020 AEA Audited Financial Report as presented at the October 28, 2020 Board meeting. Motion seconded by Mr. Fogle. Chair Pruhs thanked BDO for their professional work. The motion was approved without objection. 8. OLD BUSINESS A. Utilities Approval (Resolutions) Mr. Thayer discussed the Board previously approved a resolution that included six contingencies to be met before moving forward. One of the criteria was the utilities' approval. Copies of resolutions have been provided in the Board packet. The Bradley Lake Project Management Committee (BPMC) is in the process of crafting a resolution to be approved by the BPMC that uses the Power Sales Agreement to pay for the financing. Mr. Thayer explained this is an added step for informational purposes and reassurances that the utilities have voted in support of the financing terms. B. Required Project Report (EEO) Mr. Thayer informed that Department of Law asked in their memo to ensure the proposed transaction to purchase certain transmission assets and associated property rights from Homer Electric Association (HEA) to be made part of the Bradley Lake Hydroelectric Project met the terms as required project work. The Bradley 0&D Committee reviewed the proposed transaction and concluded this was prudent utility practice. AEA requested that a third -party independent review and opinion on the required project was conducted. That review was completed by EES Consulting and their opinion dated September 8, 2020, has been provided. The EES opinion believes the proposed transaction represents prudent utility practice and is within the definition of required project work. The proposed transaction is necessary to keep the project in efficient running condition and is both economical and in accordance with the industry standard practices. Alaska is advancing reliability standards, similar to those required by FERC through NERC in the lower 48 states. These standards will require greater transmission reliability in the future and the proposed transaction will position AEA and the purchasers to fully comply. Chair Pruhs commented on the total cost, listed on page 5, of alternate power during the 123 days of SSQ Line outages due to the Swan Lake Fire and asked if an estimate has been determined of the possible cost had the outage occurred during the winter. Mr. Thayer stated the numbers are based on the actual occurrence and no potential estimates have been Alaska Energy Authority Page 6 of 13 developed. Chair Pruhs stated it would be nice to know the estimated cost to rate payers if the line went down during the peak season, especially a line between Bradley and Anchorage. Mr. Thayer commented that staff will reach out to the individual utilities to provide their numbers. C. Permits Update Mr. Thayer advised that Kirk Warren is available to provide comments on this item. Mr. Warren reviewed the provided permit update for the Sterling Substation to the Quartz Creek Substation (SSQ Line). There are seven separate land owners. The 0&D Committee Task Force has met with all of the land owners. The majority of the permits have already been transferred. The two remaining permits are with US Fish and Wildlife Service and US Forest Service. Staff is proactive to ensure the permits are transferred in a timely manner and hopefully prior to closing. HEA has provided assurances that they will continue to honor any permit conditions until such time as they are transferred, even if the transfer occurs post - closing. Ms. Sande requested additional information regarding the Kenai Peninsula Borough response for land use fees. Mr. Warren believes that the discussions have been resolved and regarded the valuation determination of the land use fee. Mr. Warren noted the question has been resolved of whether or not the State of Alaska, as opposed to a utility co-op, has to pay land use fees. D. S/Q Line Valuation Mr. Thayer requested Kirk Gibson, McDowell Rackner Gibson PC, discuss the three different approaches taken for the evaluation. Mr. Gibson explained the analysis uses various techniques accepted in the industry and evaluates the appropriate valuation process. Mr. Gibson noted that this particular proposed transaction created some difficulties due to the types of assets that are being evaluated, including the physical assets, the incurred restoration costs, the access to the transmission capacity, the resolution of the ongoing litigation, and the acquisition of the 69 kV Line. Mr. Gibson provided an overview of the three types of analysis used in these kinds of utility transactions; cost approach, comparable sales approach, and income approach. Each approach was calculated for the assets. The conclusion summary indicated that the best method for the Soldotna transmission capacity would be to use the comparable sales approach. The best method for the main asset would be to use the comparable sales approach, net book value and premium approach. Mr. Gibson noted that the costs associated with the Swan Lake Fire are approximately actual costs. The settlement litigation includes an estimate of the savings from ending the litigation. Mr. Gibson explained the suggested valuations at $14.5 million reflect a conservative approach. 9. DIRECTOR COMMENTS Alaska Energy Authority Page 7 of 13 A. Response to Board Questions (Baxter Senior Living) Mr. Thayer discussed the Baxter Senior Living project loan purchased and installed five Yanmar natural gas -fired combined heat and power units. Vice -Chair Karl asked for the rate of return on this project. Mr. Thayer stated he has the information in the packet and can find and share the loan evaluation and the technical analysis at the break. B. DOE Building Technologies - Grant Application Mr. Thayer reported that AEA filed and received a building technologies proving ground grant through Department of Energy. AEA will be working with the University of Alaska. The total request was one million dollars, with a $428,000 match from AEA. C. BUILD 21 Grant Update Mr. Thayer reviewed the Alaska Cargo and Cold Storage Project Fact Sheet. This project is valued at over $200 million. The awarded grant to AEA for this project is $21 million. It was the largest grant given on the west coast. D. C-Pace Update Mr. Thayer requested T.W. Patch, AEA, provide the update. Mr. Patch informed that the Anchorage Municipal Assembly meeting last night was lengthy, and because the meeting was long, the Assembly was unable to consider the C-PACE program. Mr. Patch understands the C-PACE program agenda item has been carried over to this evening's Assembly meeting. The hope is the ordinances will be adopted, which will bring the C-PACE program to its first municipality in the state. The ongoing objective is to bring the C-PACE program to two other target municipalities of Fairbanks and Juneau. Mr. Patch reported that the Matanuska Valley has expressed interest in the program. Additional updates will continue to be provided to the Board. E. Rural Update Mr. Thayer noted that Tim Sandstrom, AEA, is on the line to answer questions. Mr. Thayer explained that this agenda item will remain a standard in the Board packet to inform the Board of rural project highlights. In Newtok, AEA transferred a genset and switchgear to the community in 2019. It was the responsibility of ANTHC and the community to install the genset, which did not occur. AEA worked with Newtok this summer to get the genset installed and provided technical assistance. Since that occurred, the Newtok City Council has fired everyone at the utility and all of the contractors. Chair Pruhs asked how the process unfolded that AEA provided a generator and switchgear to the community and AEA was not aware that it was not installed until a power outage Alaska Energy Authority Page 8of13 occurred. Mr. Thayer explained the asset was given to Newtok through a grant process and once AEA signs off of the grant, there is no longer oversight of the project, even though there is a condition of the grant that the community installs and uses the asset. Chair Pruhs indicated he has an issue with not following -up to verify installation. Mr. Kendig commented that this is a recurring problem. He believes the process of distribution needs to be reworked to include follow-up and accountability to the projects completion. Vice -Chair Karl recommended a policy based on trust, but verify. Once the grant and machinery are received, an automatic follow-up is implemented 30 days later. Mr. Sandstrom commented that Newtok is an unusual project for AEA. It was led by an ANTHC project funded by Denali Commission. He advised that the normal grant process path does include a provision to keep track of assets after they are awarded. Chair Pruhs reiterated his thoughts that there should be an aspect to verify and follow-up on the process in all instances, regardless of the funding source or who the asset is given to. Chair Pruhs requested Mr. Thayer and Mr. Sandstrom develop a plan to implement such policy. Mr. Sandstrom reported that a Denali Commission barge fill header project was recently completed in Gambell. The result is a fuel cost savings of over 50% over this winter. Mr. Sandstrom discussed that Tuluksak continues to make progress and positive developments. The Tuluksak Native Corporation bought two new fuel tanks and moved them to the community. However, the Corporation did not get the correct permitting and AEA is stepping into assist in getting a conditional permit so that they can fill and dispense from those tanks over this winter. Mr. Sandstrom informed that the RPSU inventory and assessment effort is more than 50% complete and is expected to be ahead of schedule, which will allow confirmation to the Board that staff has all of the information necessary to engage in correct decision -making. The Active Projects Total Budgeted and Total Active Projects graphics were shown. Chair Pruhs asked if it would make sense to recommend a Utility of the Year award to recognize communities that have shown significant improvements to help their community. Mr. Thayer responded that had not been contemplated, but he believes it is a good idea to consider. F. Denali Commission Update Mr. Thayer discussed that there are two active Denali Commission awards that are currently in closeout. There are three new awards, including the approximately $2.9 million for the Fivemile Creek Hydroelectric Project. Alaska Energy Authority Page 9 of 13 G. Renewable Energy Fund Update Mr. Thayer reported that AEA received 21 submittals seeking grants for renewable energy projects as of September 28th. There is approximately $6 million available for disbursement. There are 15 qualified applicants requesting a total of approximately $11 million. Mr. Thayer noted that normally AEA would go to the Legislature and ask for additional funding. However, Mr. Thayer assumes that under the current budget considerations, no additional funding will be provided by the Legislature. The applications are in the review stage and ultimately, the Renewable Energy Fund Advisory Board will make recommendations. The process is on schedule to be presented to the Legislature in January of 2021. H. Power Project Fund Dashboard and Loan Report Mr. Thayer discussed the updated AEA Loan Dashboard Report through September 30, 2020. There are currently 21 PPF loans with one delinquency amount of $2,300 at 60 days. The interest rate is at 2.97% and six of the loans have pending applications to refinance for the lower interest rate. I. Community Outreach Schedule Mr. Thayer reviewed the Community Outreach Schedule. Many Zoom calls and presentations have occurred. There are dates scheduled for the incoming year for travel to Seward, but the final decision will be dependent upon Covid-19 considerations. J. Articles of Interest - Included in the Board packet Mr. Thayer discussed the articles of interest provided in the Board packet. He noted that funds from the VW settlement were used to purchase over 20 new busses, including an electric school bus in Tok and an electric public transit bus in Juneau. Additionally, some of the VW settlement funds are earmarked for EV development. The Working Group is sponsored and financially supported by AEA, and has applied for federal matching fund grants to leverage activity in the EV community and the corridor. AEA has entered into a conversation and an RFA with the Department of Transportation looking at installing charging stations at the airport or at the State office building, in addition to any corridor development. Staff is monitoring the RCA's case going forward regarding EV questions. The corridors being discussed include Homer to Anchorage, Anchorage to Fairbanks, and Fairbanks to Tok. Vice -Chair Karl asked if staff is aware that Tesla has funds available for installation of electric vehicle stations and that Tesla may be available for a partnership. Mr. Thayer agreed and noted that Tesla is brand -specific, as far as the charging stations, and are not generic. Mr. Thayer informed that AEA did partner with Tesla on a Department of Energy grant to provide about $3 million with the leverage with the VW settlement. Alaska Energy Authority 13 Page 10 of Vice -Chair Karl inquired as to staff s timeframe regarding an EV update, as referenced during public comments today for December. Mr. Thayer noted that staff will provide an update for the Board. Staff is looking for opportunities to take the million dollars and parlay it into a $3 million grant or a $5 million grant with the Department of Energy. He believes it is better to leverage the use of the EV funding by applying for larger grants to bring additional EV money, rather than spending down the seed money directly. Chair Pruhs suggested that an EV update, schedule and plan, including the status of charging stations, is placed on the agenda for the December 2nd meeting. He asked Mr. Thayer to inform the Working Group that the Board heard their comments today and the update will be included on the December 2nd agenda. Chair Pruhs requested the update also include: • The number of electric vehicles operating in the state; • The location of the electric vehicles within the railbelt corridor from Homer to Fairbanks; • The number of electric vehicles being added quarterly or annually to the state. Mr. Thayer agreed to provide the information. Vice -Chair Karl asked if electric vehicles pay highway tax. Mr. Thayer noted that he has to verify to provide a current answer. He explained that there was legislation several years ago which reduced taxes and registration fees to encourage electrical vehicle use. Ms. MacKinnon stated that she appreciates the discussion. She asked for clarification if the information that Board members have received includes a stated cost of the charging stations at $5,000 each. Mr. Thayer responded he does not have documents presented by AEA that supports that amount. Mr. Thayer indicated a comment was made by a member of the public referencing an approximate cost of a charging station. Mr. Thayer clarified there are different types of charging stations and each have different costs. Ms. MacKinnon inquired, for the good of the order and responding to public comments, if the Automobile Association in Alaska or the Auto Dealership Association or a dealership would be interested, in addition to Tesla, in joining in this effort and providing funding. Ms. MacKinnon discussed the possibility of attaching a plaque to the charging station to indicate contributions to accomplish this goal, as we move toward a smaller carbon footprint. Ms. MacKinnon asked Mr. Thayer if he has engaged in outreach to find other monies for this particular task so that AEA can respond to the public requests. Mr. Thayer responded staff can engage in outreach and has engaged in outreach. One of the grants applied for with Department of Energy was partnered with Tesla, and Mr. Shein and his group. Ms. MacKinnon commented that she was thinking about local involvement and partnership. The dealerships in the state are privately owned franchises that sell vehicles, electric and otherwise, and there may be some interest at a local level to help promote car sales through Alaska Energy Authority 13 Page 11 of promoting and developing chargers across the state. Ms. MacKinnon mentioned a location in Juneau at the Fred Meyer parking lot. Mr. Thayer stated there was other outreach in addition to Tesla. Chair Pruhs commented that from a private perspective, he thinks a discussion could occur regarding possible matching funds to give private business, such as a SO/50 split, that would encourage businesses to attract people to plug in while they patronize the commercial business. Vice -Chair Karl agreed with Chair Pruhs and informed that he put two charging stations in and the cars are utilizing the chargers. Ms. MacKinnon commented that it is her current understanding that electric cars, unless they use gas and are hybrid, are not contributing to the road system. She discussed that should AEA support charging, AEA may want to notify the Administration of the possible reduction of the collection of motor fuel tax across the state. Ms. MacKinnon suggested exploring what other states are doing to maintain their road since, in the past, maintenance has been supported by the motor fuel tax. She informed that the technology is evolving and advancing on the commercial side, as well. The policy discussion should include the electric car buyers at the table to understand their perspective and solve the problem together. Chair Pruhs commented on the possibility of including the tax right on the bill. Chair Pruhs agreed with Ms. MacKinnon on a policy standpoint that the Administration could develop a policy or regulation regarding the same eight -cent tax in addition to the charging bill. Mr. Thayer informed that he will review the policy created by the Legislature in 2013/2014 that removes road tax for electric cars. Vice -Chair Karl respectfully disagrees with the philosophy that electric car owners should not pay tax. He expressed that a different fuel source should not preclude payment for using the road. Vice -Chair Karl agreed with Ms. MacKinnon's comments and believe it is important to stay ahead of the program because new technologies will come to Alaska. Mr. Thayer indicated that he will verify the current legislation. K. Next Regularly Scheduled AEA Board Meeting Wednesday, December 2, 2020 Mr. Thayer informed that the next scheduled Board meeting is December 2°d. He believes it will be a lengthy meeting discussing the SSQ Line. 10. BOARD COMMENTS Vice -Chair Karl stated he is impressed with the great job of the AEA staff. He expressed appreciation that the staff seems to be happy and effective. Alaska Energy Authority 13 Page 12 of Ms. Sande expressed appreciation for the collaborative approach between AEA and their partnership, especially with the Denali Commission. She liked hearing about the win with Gambell and seeing the 50% savings with barging the fuel versus flying it in. Ms. Sande congratulated staff and the community of Tuluksak for their efforts in overcoming challenges. She thanked staff for creating the AEA Facebook page. Mr. Thayer noted that the Board had requested a communication plan and staff worked to develop the Facebook page. The policy is still being created. One staff member is designated to post. All information will go through the Executive Director's office before it is posted for checks and balances purposes. Mr. Thayer noted that staff cannot control what people post on the page or what people repost. Commissioner Anderson commented on the good Board meeting. She expressed appreciation for the Board's patience as she is attending remotely. Ms. MacKinnon expressed appreciation to staff for their diligent efforts today. Chair Pruhs echoed the comments of appreciation. He is looking forward to continued advancement and completion of the SQ Line efforts. Chair Pruhs acknowledged and thanked Amy Adler for becoming the Interim CFO for AEA and AIDEA. Mr. Thayer informed that Salina Beardon is stepping in as the Interim Comptroller for AEA. He noted improvement to better align shared services has already occurred. 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 11:15 am. Curtis Thayer, Executive Director/ Secretary Alaska Energy Authority Alaska Energy Authority Page 13 of 13