HomeMy WebLinkAboutAEA Board Meeting March 3 2016
BOARD MEETING MINUTES
Thursday, March 3, 2016
Anchorage, Alaska
1. CALL TO ORDER
Chair Dick called the meeting of the Alaska Energy Authority to order on March 3, 2016 at 2:18
pm. A quorum was established.
2. ROLL CALL: BOARD MEMBERS
Members present: Chair Russell Dick (Public Member); Vice-Chair Dana Pruhs (Public
Member); Jerry Burnett (Deputy Commissioner, Department of Revenue (phone)); Fred Parady
(Deputy Commissioner, Department of Commerce, Community and Economic Development
(DCCED)); Dan Kennedy (Public Member); and Gary Wilken (Public Member).
3. ROLL CALL: STAFF, PUBLIC
Staff present: Sara Fisher-Goad (AEA Executive Director), Sean Skaling, Kirk Warren, Katie
Conway, Tom Erickson, Emily Ford, Jennifer Haldane, Michael Lamb, Cady Lister, Teri
Webster (AEA); Gene Therriault (AIDEA); and Brian Bjorkquist (Department of Law).
Others present: Sunny Morrison (Accu-Type Depositions).
4. AGENDA APPROVAL
The agenda was approved.
5. PRIOR MINUTES - January 13, 2016
MOTION: A motion was made by Mr. Kennedy to adopt the minutes of January 13, 2016.
Vice-Chair Pruhs seconded the motion. Motion passed.
6. PUBLIC COMMENTS
None.
7. NEW BUSINESS
7A. Energy Efficiency program update
Ms. Fisher-Goad introduced Katie Conway and Cady Lister, who provided the Energy Efficiency
program overview. The Energy Efficiency (EE) program is an investment opportunity and
allows for approximately 30 percent savings through the implementation measures in homes,
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March 3, 2016 2
businesses, government and tribal buildings. Energy efficiency can be an economic development
engine by utilizing the work of many, including energy auditors, contractors and bankers. The
saved money generated by energy efficiency will increase disposable income and could be
reinjected into the local economy. Additional benefits to energy efficiency include reduced
emissions, improved energy security, and increased productivity inside more comfortable and
healthier buildings.
The EE program focuses on bridging the widening gap between the well-identified need for
energy efficiency and the financing to pay for it. The EE program facilitates critical
collaborations among different stakeholders, delivers technical assistance and financial services
to maximize public dollars, and implements meaningful energy cost savings through proven
successful programs such as the Village Energy Efficiency Program (VEEP). Ms. Conway
stated the era of exclusively grant-funded projects is over and it is necessary to ensure public
money is used to leverage recipient contributions and private financing moving forward.
The first Alaska Energy Efficiency Finance Seminar was held in January and brought together
lenders and energy project representatives to discuss the process of developing and financing
energy efficiency projects especially in Alaska's nontraditional markets. Feedback from
participants was overwhelmingly positive.
Stakeholder coordination is important. AEA and Alaska Housing Finance Corporation (AHFC)
lead the Alaska Energy Efficiency Program, an ad hoc working group of over 70 public, private
and nonprofit entities working together toward the shared vision of Alaska becoming the most
energy efficient state in the nation. Ms. Conway described the Department of Energy's (DOE)
Remote Alaska Communities Energy Efficiency (RACEE) Competition and the value added by
AEA's technical assistance involvement.
AEA is also providing technical support, outreach and stakeholder coordination for the
Governor's Property Assessed Clean Energy (PACE) legislation introduced last year. PACE is
an innovative program making it possible for owners of commercial properties to obtain low-
cost, long-term financing for energy efficiency projects. Ms. Conway indicated PACE
legislation has been adopted all over the country and the hope is Alaska will also adopt PACE
legislation.
AEA received confirmation recently from the U.S. Department of Agriculture Rural Utility
Service Program that AEA is a recipient of federal Energy Efficiency & Conservation Loan
Program (EECLP) funds to use for low interest loans for utility customers to finance energy
efficiency in homes and businesses. AEA is exploring ways to directly serve utility customers
of utilities that lack the back office capacity to implement this inexpensive loan mechanism.
7B. Resolution No. 2016-02: Railbelt Electric Transmission System
Ms. Fisher-Goad informed Resolution No. 2016-02 was tabled at the end of 2015, with a request
to modify the language empowering AEA to take the necessary steps to engage in the future
efforts to reform the transmission system. The resolution includes a communications plan to
inform Railbelt stakeholders of the importance of the reform and of the consumer benefits.
Board members were provided both a redlined version of the resolution showing the substantive
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March 3, 2016 3
differences and the revised version of the resolution. Staff recommends approval of Resolution
No. 2016-02.
Deputy Commissioner Parady asked if it would be appropriate to get an update from the utilities
regarding their ongoing work. Ms. Fisher-Goad believes it is important to hear from utilities
regularly and suggests the utilities' CEOs present directly to the Board.
Vice-Chair Pruhs expressed his appreciation for the efforts to modify the resolution and believes
further modification is necessary. He recommended adding the words "or otherwise" to Section
3. to read, "The Executive Director of the Authority is requested and empowered to take actions
she deems desirable and appropriate for the Alaska Energy Authority to work with Railbelt
Utilities to voluntarily or otherwise adopt enforceable and consistent Railbelt operating and
reliability standards."
Deputy Commissioner Burnett suggested removing the word "voluntarily" from Section 3. to
read, "The Executive Director of the Authority is requested and empowered to take actions she
deems desirable and appropriate for the Alaska Energy Authority to work with Railbelt Utilities
to adopt enforceable and consistent Railbelt operating and reliability standards."
Mr. Kennedy concurred with Deputy Commissioner Burnett's recommendation and noted he will
not vote in favor of the resolution unless two bullet points are removed. The bullet points are 1)
on page two, third bullet point beginning, "Not all Railbelt utilities have adopted the same
reliability standards," and 2) also on page two, sixth bullet point beginning, "In a May, 2013
report, the Authority identified $903 million in transmission system upgrades." Mr. Kennedy
expressed respect for the presentation describing the system upgrades, but believes the costs will
be significantly less. Mr. Kennedy believes the industry group has been meeting recently to
develop an independent transmission company.
MOTION: A motion was made by Mr. Kennedy to table Resolution No. 2016-02 to the call
of the Chair. Vice-Chair Pruhs seconded the motion. Motion passed.
Mr. Wilken agreed the use of the word voluntary in the resolution is not effective. He believes
the $903 million figure may be high and could be discussed, but he would not change the
number.
8. DIRECTOR COMMENTS
8A. Next regularly scheduled meeting Wednesday, March 31, 2016.
Ms. Fisher-Goad informed the Governor's amendment incorporated in the operating budget
removed a significant amount of funding in the AEA budget. Conversations to educate the
Office of Management and Budget (OMB) and the impact of that change has resulted in a second
Governor's amendment and request for two million of Renewable Energy Fund (REF) dollars to
be returned to the AEA operating budget. Ms. Fisher-Goad expressed appreciation to
Commissioner Hladick and Deputy Commissioner Parady for their help and support in educating
the OMB regarding the need for the funds to manage ongoing projects. There is a tremendous
amount of support for restoring the REF funds, including legislators, Alaska Power Association,