HomeMy WebLinkAboutRes 2011-03 EETF Regulations-Nov17_2011TO : Board of Directors
Alaska Energy Authority
FROM: Sara Fisher-Goad
Executive Director
DATE: November 17,2011
MEMORANDUM
SUBJECT: Emerging Energy Technology Fund Regulations
Staff recommends the adoption of the attached regulations which will enable the Alaska Energy
Authority ("AEA" or "Authority") to implement and administer its emerging energy technology grant
fund program. The proposed regulations were published after the Authority had issued and received
responses to a Request for Grant Applications which had been published earlier this year. The
Department of Law determined that the Authority must adopt regulations to implement the program
and address the applications. The original grant applications were therefore placed on hold pending
adoption of the regulations.
A. EETF Statutory Background
The Emerging Energy Technology Fund ("EETF") is an AEA grant program established under AS
42.45.375. The purpose of EETF is to expand energy sources available to Alaskans. EETF has $9.6
million, capitalized from a combination of state appropriations and Denali Commission grants (50%
each).
The Authority may make EETF grants for demonstration projects of technologies that have a
reasonable expectation to be commercially viable within five years . The demonstration project must
be designed to:
• Test emerg ing energy technologies or methods of conserving energy;
• Improve an existing energy technology; or
• Deploy an existing technology that has not previously been demonstrated in Alaska .
Energy technology is defined as technology that promotes, enhances, or expands the diversity of
available energy supply sources or means of transmission, increases efficiency, or reduces negative
energy-related environmental effects . Energy technology includes technology related to renewable
sources of energy, conservation of energy, enabling technologies, efficient and effective uses of
hydrocarbons, and integrated systems .
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8 13 West Northem Ughts Boll levard Anchorage, Alaska 99503 T 907 .771 .3000 Toll Free (Alaska Only) 888.300.8534 F 907.771 .3044
Board of Directors
November 17, 2011
age 2 of 5
The Authority adm inisters EETF in conjunction with a seven member Advisory Committee appointed
by the Governor. Committee members must have degrees in science or engineering , or equivalent
profess ional experience. Each member represents one of seven groups:
(1) a business or organization engaged in the renewable energy sector;
(2) a business or organization engaged in the fossil fuel energy sector;
(3) the Alaska Power Association or an Alaska electric utility;
(4) the Denali Commission;
(5) the National Renewable Energy Laboratory;
(6) the Arctic Energy Office of the National Energy Technology Laboratory;
(7) the Alaska Industrial Development and Export Authority.
Elig ible applicants for EETF grants include :
•
•
•
•
•
An electric utility holding a certificate of public convenience and necessity under AS 42 .05 ;
An independent power producer; 1
A local government, quasi-governmental entity, or other governmental entity, including tribal
council or housing authority;
A bus iness holding an Alaska business license; or
A nonprofit organization .
The Authority must give priority in issuing grants to:
• Alaska residents, associations, organizations , or institutions;
• Projects that demonstrate partnership with the University of Alaska or another Alaska
postsecondary institution;
• Projects supported by matching funds or in-kind partnerships; and
• Projects with potential for widespread deployment in Alaska .
B. EETF Proposed Regulations
A new article will be added to the Authority's regulations in 3 AAC 107 to provide procedures and
details regarding the EETF program .
1 Independent power producer is defined to mean a corporation, person , agency, authority , other legal entity or
instrumentality, that is not an electric utility and that owns or operates a facility for the generation or production of energy
entirely for use by the residents of one or more municipalities or unincorporated communities recogn ized by the
Department of Commerce, Community, and Economic Development for community revenue sharing under AS 29 .60 .850
-29.60.879 and 3 AAC 180.
Board of Directors
November 17 , 2011
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Public notice and comment. Public notice was published by newspaper and on the State of Alaska
Online Public Notice System. The notice was also sent to all subscribers to the EETF's email list on
the State's List Server. While not required, a public hearing was held on August 31, 2011 . The public
notice period will close November 4, 2011 . The comments made at the public hearing and received
by the Authority are provided in an attached report. Any subsequently received comments will be
reported at or before the Board meeting .
Description of Regulations and Changes . The following describes the regulations, including changes
the Authority made to the initial publicly noticed draft regulations in response to public comment and
initial review by the Department of Law.
3 AAC 107.700 generally describes the purposes for the regulat ions .
3 AAC 107.705 describes means by which the Authority will advance public purposes and
benefits of the EETF grant program. AEA, in consultation with the Advisory Committee, may
establish priority considerations for grants , with a clarification that statutory priorities must be
considered first. Grants may be awarded in project phases, and may compel repayment for non-
compliance. AEA deleted a requirement that would have allowed AEA to establish rates for those
entities not regulated by the Regulatory Commission of Alaska . AEA imposes that obligation in other
Jrant programs , such as the Renewable Energy Grant Fund Recommendation program, to ensure
that ratepayers receive the benefit of public monies granted for energy projects. Upon further
reflection, AEA determined that imposing rate setting requirements would create undue administrative
difficulties and hinder the EETF program's goal to "promote the expansion of energy sources
available to Alaskans."
3 AAC 107.710 describes eligible grantees . 3 AAC 107.715 describes eligible projects . A
technical amendment was made to the latter to more clearly establish that all statutory requirements
for the eligibility of projects apply under the regulation . Similar technical amendments were made to 3
AAC 1 07.735, 3 AAC 107.745, 3 AAC 107.750, and 3 AAC 107.760.
3 AAC 107.720 describes certain general purposes and duties of the Advisory Committee.
3 AAC 107.725 through 3 AAC 107.795 establish procedures and substantive criteria by which
the Authority will implement the EETF and make grants. Some of the more significant provisions are
described below.
3 AAC 107.730 establishes the essential two step framework by which AEA will process EETF
grant applications . In step one, AEA will solicit and review abstracts. For abstracts selected for
further evaluation, AEA will solicit full applications. Grants will be awarded after AEA and the
Advisory Committee review full applications.
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November 17 , 2011
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3 AAC 107.735 addresses "step one" abstracts. Included in subsection (b) and (c) are detailed
lists of the information that either must [subsection (b)] or may [subsection (c)] be included in a
proposal abstract. In response to public comment AEA reduced the amount of information that is
required in the abstracts to facilitate submission and review.
3 AAC 1 07 .7 40 provides for AEA to undertake an initial eligibility review of proposal abstracts
to ensure they are complete and involve eligible applicants and projects .
3 AAC 107.745 provides for the more thorough evaluation of proposal abstracts by AEA and
the Advisory Committee . Subsection (a) includes a detailed list of review criteria . AEA revised the
review criteria in response to its further review and public comment.
3 AAC 107.750 addresses "step two" full proposals. The Authority will request full proposals
from the highest ranked proposal abstracts, with the number of requests made based upon the
amount of grant funding available. Included is a detailed list of the information required to be included
in a full proposal.
3 AAC 107.755 and 3 AAC 107 .760 provide for the more thorough evaluation of full
-:tpplications by AEA and the Advisory Committee. 3 AAC 107.760 includes a detailed list of review
..;riteria. AEA revised the review criteria in response to its further review and public comment.
3 AAC 107 .765 and 3 AAC 107.795 provide means by which interested parties can seek
reconsideration of decisions made by AEA, or resolve disputes. The d ispute resolution mechanisms
in 3 AAC 107 .795 incorporate existing AEA regulations under 3 AAC 108 .915 -3 AAC 108 .920.
3 AAC 107 .770 addresses · confidentiality of proposal abstracts, full applications and other
material provided by applicants. The provisions make clear that the Alaska Public Records Act
applies . AEA revised the regulations to provide mechanisms for applicants to request confidentiality
and to withdraw all or parts of an application if AEA determines that the information appears to be
subject to public disclosure .
3 AAC 107 .780 identifies a detailed list of what must be included in EETF grant agreements .
AEA in response to its further review and public comment revised this section to include a
requirement that app.licants demonstrate they have necessary intellectual property rights or licenses .
Further, AEA strengthened requirements to provide information on project performance and results .
3 AAC 107.790 requires grantees to provide AEA with information regarding the operation and
performance of the EETF project. And, 3 AAC 1 07 .785 establishes provisions for grant closeout.
AEA in response to its further review and public comment revised this section to clarify and
strengthen the performance and maintenance reporting requirements.
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November 17, 2011
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3 AAC 107.799 defines terms used in the EETF statute and regulations.
C. Conclusion
Staff recommends adoption of the proposed EETF regulations . The EETF program serves important
public purposes to expand energy sources available to Alaskans. AEA staff believes that the
proposed regulations will enable AEA to implement the EETF program in conjunction with the
Advisory Committee to obtain these public benefits .
Attachments
ALASKA ENERGY AUTHORITY
RESOLUTION NO . 2011-03
RESOLUTION OF THE ALASKA ENERGY AUTHORITY ADOPTING
EMERGING ENERGY TECHNOLOGY FUND REGULATIONS FOR THE
AUTHORITY
WHEREAS, AS 42.45.375 establishes the Emerging Energy Technology Fund ("EETF"),
the purpose of which is to expand energy sources available to Alaskans by making grants
available for demonstration projects of technologies that have a reasonable expectation to be
commercially viable w ithin five years;
WHEREAS, the EETF has been capitalized with $9.6 million provided from state
appropriations and Denali Commission grants;
WHEREAS, the Authority must adopt regulations for the Authority to implement and
administer the EETF program, and make EETF grants;
WHEREAS, the Authority's provided public notice of the proposed regulations, solicited
public comment through November 4 , 2011 , conducted a public hearing on August 31, 2011,
and otherwise followed procedures required by the Administrative Procedures Act;
WHEREAS , the time period for public comment has passed , and the Authority has
reported about the oral and written public comment received and the consideration the Authority
gave to each public comment received ; and
WHEREAS , the proposed regulations attached as Exhibit A reflect the originally
proposed regulations , as revised by the Authority in response to public comments and further
evaluation by the Authority.
NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS
FOLLOWS:
Section 1. The Board of Directors of the Authority adopts as regulations of the
Authority 3 AAC 107 .700-3 AAC 107.799, a copy of which is attached as Exhibit A.
Section 2 . The Executive Director of the Authority is authorized and directed to file
the regulations with the Lieutenant Governor, and take other steps necessary or desirable
under the Administrative Procedures Act to make the regulations become effective .
Section 3 .
approval.
This Resolution shall become effective immediately upon its passage and
DATED at Anchorage, Alaska, this 1?'h day of November, 2011.
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