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HomeMy WebLinkAboutAEA Board Meeting Sep 16 2020ALASKA ENERGY AUTHORITY Alaska Energy Authority BOARD MEETING MINUTES Wednesday, September 16, 2020 Anchorage, Alaska 1. CALL TO ORDER Chair Pruhs called the meeting of the Alaska Energy Authority to order on September 16, 2020 at 3:20 pm. A quorum was established. 2. ROLL CALL: BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice -Chair Bernie Karl (Public Member); Anna MacKinnon (SOA-DOR), Albert Fogle (Public Member); Bill Kendig (Public Member); and Julie Sande (Public Member). Chair Pruhs requested attendees in the room and on teleconference state their name and affiliation, if any. Attendees: Amy Adler, Jennifer Bertolini, Alan Fetters, Robert Hawkins, T.W. Patch, Tim Sandstrom, Linda Senn, Aimee Sudbeck, Curtis Thayer, Kirk Warren (AEA); Dimitri Shein (phone) (Alaska Electric Vehicle Association); Stephen Saldanha (Department of Law); and Ken Kassner (sp) (phone) (Public). 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 - August 5, 2020 MOTION: A motion was made by Mr. Fogle to approve the prior minutes of August 5, 2020, as presented. Motion seconded by Mr. Kendig. The motion to approve the minutes of August 5, 2020, as presented, passed without objection. S. PUBLIC COMMENTS (2 minutes per person) Chair Pruhs requested speakers state their full name and affiliation, if any. Comments are limited to agenda topics and each person is provided two minutes. • 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 AEA Board Meeting Minutes September 16, 2020 Dimitri Shein, Executive Director of Alaska Electric Vehicle Association (AKEVA), spoke regarding Agenda Item 9G. Community Outreach, and specifically outreach to electric vehicle (EV) owners. Mr. Shein informed AKEVA has: • Installed four Level II chargers and has surveyed hundreds of sites across Alaska for charging installation. • Provided education to EV owners and enthusiasts. • Finished planning the two AEA sponsored events. • Successfully petitioned Regulatory Commission of Alaska (RCA) to examine implementation of EV charging rates. • Developed and deployed software that uses data to identify and count all electric vehicles in Alaska. • Fostered a working relationship with Tesla, which led to a joint grant application. • Contributed over 100 hours of pro bono service of grant writing and technical analysis. • Installed the only fast chargers in Alaska. • Been ready and willing to share their experience and expertise. Mr. Shein believes additional community outreach is needed to solve the EV charging problem. Currently, there are no fast chargers between Homer and Fairbanks. He noted AKEVA members are frustrated that there are no fast chargers along the highway. Mr. Shein sees a great need to build a fast -charging corridor as soon as possible from Homer to Fairbanks to allow members to commute in the same manner as gasoline vehicles. Ken Kassner, stated he is an EV owner, and has been on the phone line since 8:30 this morning. Mr. Kassner informed he sent multiple emails expressing his frustration regarding the process of involving the public in AEA's meetings. He said it is very confusing when the Board acts in two capacities and has what seems to be a concurrent meeting. Mr. Kassner is frustrated that a public agency treats the public with this kind of disregard. He noted he is not happy with having to sit for over seven hours with a phone line tied up, waiting for the Board to get to this piece of business. Mr. Kassner informed he is addressing Item S., Public Comments, and he hopes the Board will figure out how to better serve the public with a well - announced time when public comments will be taken. 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 Snettisham. Motion seconded by Mr. Kendig. The motion was approved without objection. 6. EXECUTIVE SESSION 3:29 pm A. Confidential matters related to Bradley Lake, Soldotna-Quartz Line, Snettisham Alaska Energy Authority Page 2 of 8 AEA Board Meeting Minutes September 16, 2020 The Board reconvened its regular meeting at 4:12 pm. Chair Pruhs advised the Board did not take any formal action on matters discussed while in executive session. 7. NEW BUSINESS - N/A 8. OLD BUSINESS A. West Fork Upper Battle Creek Construction Update Curtis Thayer, Executive Director, discussed the West Fork Upper Battle Creek update provided to Board members in their packets. Mr. Thayer reviewed the ribbon cutting and valve -turning ceremony that occurred recently at the newly operational Battle Creek was well -attended. Mr. Thayer requested Kirk Warren, Director of Engineering and Energy Development, to give statistics regarding the Battle Creek water flow. Mr. Warren indicated it was a dry month in September when metering at Battle Creek began. The flow was close to 10,000 megawatt hours. The projected annual flow is 37,500. Mr. Warren is highly anticipating power will be available early in the year, which is very good news for the utilities and AEA. Vice -Chair Karl asked if there were any glitches with the opening operations. Mr. Thayer reported everything worked flawlessly. 9. DIRECTOR COMMENTS A. Organization Chart Update (Fourth Quarter) Mr. Thayer noted there are no significant changes to the Organization Chart update for the fourth quarter, other than the COO position housed under AEA was moved under AIDEA to accommodate their need. Mr. Thayer advised there are four vacant positions, and work is ongoing to accept offers on two of those. The other two positions will remain vacant at this time. B. Rural Programs - Strategy and Tools to Integrate Data, Projects and Operations (Verbal) Mr. Thayer discussed the strategy and tools to integrate data, projects and operations for the rural programs is an issue raised several years ago by Chair Pruhs. Mr. Thayer requested Tim Sandstrom, Director of Rural Programs, and Alan Fetters, Rural Assistance Manager, present on this agenda item. Mr. Sandstrom showed and discussed a slide presentation regarding the Rural Power System Upgrades, bulk fuel upgrades, and circuit rider training assistance. Mr. Sandstrom reviewed the bulk fuel programs in progress, which are in various stages of design. He reviewed the rural power system projects and their various stages of design. Alaska Energy Authority Page 3 of 8 AEA Board Meeting Minutes September 16, 2020 Mr. Sandstrom explained the slide showing the dense information regarding training and technical support from January 1, 2020 through September 15, 2020, which includes the total number of contacts for each of the programs in the communities. Chair Pruhs asked if the training could be contracted out to private industry rather than in- house training. Mr. Sandstrom noted two scenarios have been discussed regarding training. The first option regards the ability to have state and federal matching funds that would allow a contractor scenario. The second option involves no federal matching funds and using project funds for the training. Mr. Sandstrom discussed the past timeline regarding bulk fuel facilities and rural power systems inventory assessment, including ranking of rural energy infrastructure. Mr. Sandstrom indicated this presentation directly answers Chair Pruhs' previous question: How can good decisions be made about where programs and projects will be concentrated if we do not have good information? Mr. Sandstrom discussed the pilot project that used 3-D imaging for an open -house on the website. The 3-D imaging is also used for training purposes. Chair Pruhs requested an update on the status of Tuluksak. Mr. Thayer informed he will provide more information later. Mr. Sandstrom continued the presentation discussing the timeline of the rural projects and programs. He showed the results of the utility dashboard and the questionnaire used to gather the data. Mr. Sandstrom highlighted the new program of itinerant bulk fuel training for facilities and the focus areas of where training should be concentrated. The program began in June and there are over 70 communities slated for involvement and possible maintenance improvement projects. Mr. Sandstrom showed the mapping that has been used for the specific areas. Mr. Sandstrom discussed the piloted technology used for training called digital twinning that models the actuality of the plant and its specific equipment. The actual cost for development and implementation is approximately $5,000 per facility. Vice -Chair Karl commented the technology will save hundreds of thousands of dollars in cost. He was highly impressed. He believes the continuity of education for maintenance for each of the communities is extremely valuable. Vice -Chair Karl expressed the importance of teaching the young citizens the abilities for their specific community. Ms. MacKinnon inquired if there are security issues with access to the modeled information. Mr. Sandstrom explained staff is currently working with owners, stakeholders, and legal counsel to determine differentiating levels of access. Security is a concern. Mr. Sandstrom discussed plans for the future include gathering information for the Circuit Rider Program, 3-D real modeling to train operators on their systems, and integrating the gathering of the data to lower its cost. Alaska Energy Authority Page 4 of 8 AEA Board Meeting Minutes September 16, 2020 Chair Pruhs recommended Mr. Thayer share this presentation with the Legislature. Mr. Thayer agreed. Mr. Sandstrom reviewed the two pendulum swings of the funding scenario. If standalone funding is not received, the cost would have to be absorbed into the project and program funding. He indicated a funding source of approximately $1.5 million would provide enough funding to contract private industry for all the systems. Chair Pruhs inquired as to possible sources of funding. Mr. Sandstrom believes Denali Commission is a possibility, as well as the State Legislature. Vice -Chair Karl informed he is available to arrange a staff presentation to the Denali Commission, if necessary. Mr. Sandstrom advised staff maintains a line of communication with the Denali Commission regarding the direction of the programs. Mr. Thayer provided an update on Tuluksak. The community has received federal Covid-19 funds and has paid off almost all of their IRS liens. Tuluksak has paid off their bulk fuel loans and is working with Mr. Sandstrom to determine the maintenance items that need to be acquired for the two new generators AEA supplied last year. In addition, Tuluksak is upgrading their bulk fuel with two new tanks. The power plant has been cleaned and is working. Vice -Chair Karl inquired regarding the waste heat. The current amount of waste heat is still an issue. Vice -Chair Karl believes a greenhouse at the power plant would be helpful to grow food for the community. He offered to help with implementation and he suggested funding at USDA specifically for BIA and tribal funds could be utilized. He noted there is also funding available for annual maintenance of their roads. Vice -Chair Karl suggested staff help Tuluksak. He recommended staff consider adding a grant writer to focus on tribal and BIA grant power plant funding. Chair Pruhs expressed appreciation for the diligent work of Mr. Thayer, Mr. Sandstrom, and Mr. Fetters. He looks forward to additional information. He feels that the funds directed to rural Alaska will be spent appropriately and good decisions will be based on good information. C. Bradley Lake - Needle Maintenance Mr. Thayer discussed the needle maintenance issues at Bradley Lake. The memorandum was provided. The cost for the needle replacement is a little less than $1 million. This has been discussed with the utilities and is an operating and maintenance concern. The utilities will pay for the scope of work and the hope is the work will be completed shortly after the first of year. Mr. Thayer will apprise the Board of any updates. D. Denali Commission Update Alaska Energy Authority Page 5 of 8 AEA Board Meeting Minutes September 16, 2020 Mr. Thayer advised there are two active Denali Commission grants in the process of close- out. The report is included in the Board packet. E. Alaska C-PACE Update - Municipality of Anchorage (Verbal) Mr. Thayer requested T.W. Patch, AEA, provide the update. Mr. Patch informed the Anchorage Municipal Assembly unanimously passed a resolution last night determining that the financing of energy improvement projects through an assessment program serves a valid public purpose. On October 13, the Anchorage Municipal Assembly will consider the adoption of the mechanics of how the program will work. Mr. Patch fully expects the Assembly to adopt the ordinance, and Anchorage will be one of the three target cities enabled by the C-PACE Program. The other two communities are Juneau and Fairbanks. The Project Managers are following the Anchorage model very closely. Mr. Patch informed documents and websites explaining the benefits can be made available to Board members. Vice -Chair Karl requested additional information as to the benefits C-PACE will offer the citizens. Mr. Patch explained C-PACE offers the building owner an.opportunity to install clean energy projects at a lower cost than the owner could with conventional financing. Banks provide the lending funding source. The advantage is the payments are collected by the Municipality through a tax assessment program and the economics of assurers are favorable. Ms. MacKinnon asked if it is accurate to say the assessment carries with the property and the debt is amortized over the life of the building versus the debt is taken out by the owner. The building carries a debt in a form of an assessment. Mr. Patch agreed and noted the debt could be carried over many years. Ms. MacKinnon asked if there was discussion regarding Municipality exposure becoming responsible for commercial buildings that carry the assessed debts. Mr. Patch noted that was not part of the conversation at the Assembly meeting last night, but has been part of the conversation as the projects have moved forward. Vice -Chair Karl asked if any Alaska city is participating yet. Mr. Patch indicated Anchorage is the first city in Alaska to take this first step to participate. There is a list of 80 projects statewide that may roll into the program once all three of the target cities have adopted the ordinance necessary to move forward. Mr. Patch noted there are approximately 26 states that have adopted the program. Vice -Chair Karl expressed the program could be a good deal if greed does not take over the municipalities, the banks, or the technology vendors. He believes the program will grow because of the opportunities it presents. Mr. Thayer explained the Legislature passed legislation in 2017 that supported the C-PACE Program. AEA was then tasked to introduce the program to individual communities and obtain acceptance. AEA's role is to help set up the program and then step back and let the individual communities adopt the program. Alaska Energy Authority Page 6 of 8 AEA Board Meeting Minutes September 16, 2020 Ms. Sande asked Mr. Thayer regarding the Power Project Fund. Mr. Thayer answered the Power Project Fund is 3%, but it is not associated with the C-PACE Program. F. Power Project Fund Dashboard and Loan Report Mr. Thayer informed the two delinquent accounts on the report for a total of $3,000, have since been paid. The Baxter Senior Living has been funded. A ribbon -cutting event is expected to be scheduled next month. Mr. Thayer advised the reduction of interest and refinance was approved for the wind farm in Delta. There is one loan application in process. The current rate is 3.05%. G. Community Outreach Schedule Mr. Thayer noted staff will be participating in upcoming presentations next week for Southeast Conference. Staff hosted Congressman Young at the office and discussed the Alaska CARES funding for AIDEA, the hydro project, and other items. Mr. Thayer stated a press release was distributed by the congressional delegation on Monday. AEA was successful in a $21 million energy efficiency build grant for the Anchorage Airport. Only 70 projects were chosen in the United States. Mr. Thayer believes the strength of their application was a positive factor. He expressed appreciation to the staff, especially Mr. Fetters and his team, for their efforts. AEA represents 28% of a Phase 1 project that will contribute 800 construction jobs and 120 permanent jobs to Anchorage based on energy efficiency. This is one of AEA's core competencies. Ms. MacKinnon commented regarding community outreach and specifically the public on the line commenting on the electric vehicle charging stations. She noted there is not a specific agenda item related to the comments. Ms. MacKinnon requested additional information because she does not want the public to feel AEA is not listening to public comments. Mr. Thayer explained AEA is currently involved in an EV working group in which AEA funds the working group through a federal grant. AEA has partnered with the EV communities in looking at other grant opportunities. AEA is looking to leverage money from the VW settlement in applying for other grants. Mr. Thayer reported conversations with Tesla, who has offered to provide infrastructure toward an overall effort. A corridor from Homer to Fairbanks is being considered. However, funding is very limited at this juncture. Mr. Thayer expressed appreciation to the EV public for calling in. H. Articles of Interest - Included in the Board packet 1. Next Regularly Scheduled AEA Board Meeting, October 28, 2020 10. BOARD COMMENTS Alaska Energy Authority Page 7 of 8 AEA Board Meeting Minutes September 16, 2020 Ms. Sande expressed appreciation to Mr. Thayer and staff for their presentations today. She noted the grant funding and the collaboration between AEA and AIDEA is exciting and uplifting for all Alaskans. Chair Pruhs expressed appreciation for the patience of all attendees. 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 4:59 pm. Curtis Thayer, Executive Director /Secretary Alaska Energy Authority NERQy co GORPORq�, •,O Q; F :9 SEAL 197g Alaska Energy Authority Page 8 of 8