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HomeMy WebLinkAboutAEA_DOE_Energy_Futures_Grant_Submission_Package_DE-FOA-0002870-Nov_2023ALASKA ENERGY AUTHORITY | PROJECT SUMMARY | 2870-1538 1 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Evaluating Municipal Processes for Efficient Clean Energy Permitting Applicant: Alaska Energy Authority (AEA) Project Directors: Conner Erickson, Director of Planning, Alaska Energy Authority; Nils Andreassen, Executive Director, Alaska Municipal League Major Participants: Alaska Energy Authority (AEA), Alaska Municipal League (AML), Alaska Housing Finance Corporation (AHFC), Alaska Department of Transportation & Public Facilities (DOT&PF); Tanana Chiefs Conference, City of Chevak, City of Fort Yukon, City of Hughes Project Objectives: Reduce the energy burden (cost) of disadvantaged communities, measured against current baseline, and increase energy access to affordable clean energy (number of homes and businesses). Potential impacts: • A reduction in annual energy costs within the community. • An increase in available funds to invest in lowering energy costs. • The identification and removal of permitting or local barriers, or addition of streamlined processes, that incentivize clean energy development. Project Description: 45 communities will conduct governance and financial assessments, with the support of partnering organizations, to identify technical assistance needs relating to affordable clean energy development, including the removal of barriers that might exist within municipal code, permitting, or regulatory processes. Community officials will work individually and together as a 45-member cohort on strategies for implementing clean energy development and working with technical experts to identify solutions that are community-specific but proven to be effective. AML will provide support to communities, including direct technical assistance in both managerial and financial capacities, to ensure the community has developed the required skills to effectively plan and implement energy projects, and on-going asset management support to ensure maximum local capacity is reached and maintained. The project will result in: 1. 45 municipalities committed to participating in project activities and cohort meetings. 2. Summary document with governance (land-use, permitting, etc.) and financial recommen- dations, based on evaluation of existing processes. 3. Liquidity analysis and tax implementation, where applicable, and production of a project funding timeline. 4. Implementation of a community benefits plan that focuses on workforce development opportunities and equity analysis related to reducing community energy burden. Community Benefit Plan commitments and goals: Work with municipal and Tribal leaders, utilities, and regional partners to deliver projects. All participating communities are considered rural and the majority of residents Indigenous. Public engagement will feature ways in which the project activities may have ancil¬lary community benefits – beyond the direct impact of the energy improvements – that include workforce and enterprise development, skills training, and resilience planning. 1 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING CONTROL NUMBER2870-1538 PROJECT TITLEEvaluating Municipal Processes for Efficient Clean Energy Permitting PRIME APPLICANT ORGANIZATIONAlaska Energy Authority (AEA) Names and contact information for the lead project manager and business points of contact •Business Point of Contact - Conner Erickson, Director of Planning, Alaska Energy Authority •Lead Project Manager - Nils Andreassen, Executive Director, Alaska Municipal League Names of all team member organizations: •Alaska Energy Authority (AEA) •Alaska Municipal League (AML) •Alaska Housing Finance Corporation (AHFC) •Alaska Department of Transportation & Public Facilities (DOT&PF) Federal budget requested, as divided among prime and sub-recipients •Prime: $50,000 •Sub-recipients: $450,000 Any statements regarding confidentiality •Not applicable 2 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING PROJECT DESCRIPTION AND OPPORTUNITY Partners •Lead jurisdiction (state agency) - AEA will provide administrative and strategic support. •Subrecipient and CBO partner - AML will be the project manager. •Additional partners - DOT&PF and AHFC (state agencies) •The following municipal governments and tribal nonprofit have committed to participating: –City of Hughes – evaluation of solar to offset diesel generation. –City of Fort Yukon – flood-impacted community –City of Chevak – energy plan development that includes decreasing water/sewer costs. –Tanana Chiefs Conference (CBO) – support regional clean energy planning efforts. Problem/Opportunity Barriers the team is addressing Most rural communities in Alaska are power-islanded, relying solely on diesel generation systems, many of which have aging and failing powerhouses and distribution. These systems are fueled by large bulk fuel storage facilities, many of which have been in service for up to 60 years without significant upgrades and AEA manages a consistent assessment schedule to determine at-risk facilities and upgrading or replacement needs. There are many communities that could replace baseload diesel power production with renewable energy. However, Alaska’s rural municipal governments often lack the capacity and resources to conduct planning and energy project development. Municipal codes are dated, often from the 1980s, and do not reflect new or emerging best practices that relate to clean energy adoption. By strengthening munic- ipal governance, permitting policy, and financial structures, this project will increase available resources and streamline the regulatory environment for clean energy development. Project’s innovative solution Municipal-level support and engagement is a new lens through which to evaluate clean energy deployment. AML is uniquely positioned to engage and help evaluate the structure of municipal governance and financials that may lead to efficient and effective clean energy development. AML will review current municipal code to identify any barriers or improvements, assess tax and fee structures in place that can lead to greater room for investments, and produce for each community a municipal roadmap that outlines potential projects, financial models or resources, and municipal land-use policy that facilitates access to affordable clean energy. Alignment of solution with strategic goals This project contributes to the Administration’s effort to address climate change and environ- mental justice, and the Department ’s goals to achieve 100% renewable energy. This project will support system resilience, reliability, and affordability. 1.This project establishes collaborative and sustainable partnerships of at least 3-4 local, tribal, and state governments partners. This team includes seven partners (state agencies, community benefit organization, local governments, and a Tribal nonprofit). 2.This project develops innovative deployment-focused clean energy plans in and across the transportation, power, and/or building sectors. 3.This project results in innovative (novel or early action) program designs that maximize energy affordability and provide other benefits of clean energy including economic develop- ment and jobs, housing affordability, health, mobility, and energy access. 4.This project ensures all plans have deployment strategies that benefit disadvantaged communities. The communities partnering with this project are considered disadvantaged. Existing Support Alaska’s existing laws and regulations are built on local control, with no statewide building code or cohesive regulatory environment, especially in rural Alaska communities with microgrids. Instead, local governments craft their individual processes to respond to jurisdictional needs. AEA’s management of the Power Cost Equalization program (PCE) provides a strong base from which to access data and evaluate local processes as it relates to bulk fuel use, efficiency, and cost. The University of Alaska’s ACEP program continues to provide robust analysis of Alaska’s energy systems. This project aligns with other planning efforts currently underway, and will link and leverage with those efforts, including those that AML has a direct role in implementing: •Alaska’s GHG emissions inventory and climate action plan, funded through EPA’s Carbon Pollution Reduction Program. •AEA’s Electric Vehicle Deployment in Rural Alaska; and AHFC’s Building Code Evaluation for Alaska, which includes reviewing and developing pathways for updated local building codes. •Alaska DOT&PF’s local transportation project development and DOE’s HeroX Energy Prize to develop an Energy Project Intake Hub •Launch Alaska’s DOE Energyshed project, evaluating clean energy projects in Northwest and Southeast Alaska. •EPA- and USDA- funded projects to strengthen financial and governance in disadvantaged communities with water and sewer projects. Innovation This project aligns with the goals of SCEP and the FOA to improve energy affordability and access, and will strengthen local governments’ financial and governance capacity, which will lead to an enhanced ability to make clean energy investments, increase energy efficiency, and work to reduce the cost of maintenance and operations. Three communities have committed, and AML will include as many as 42 additional communities from leveraged programs. AML’s membership of 165 cities and boroughs (county-equivalent) will benefit indirectly. This project will result in: •A reduction in annual energy costs within the community. •An increase in available funds to invest in lowering energy costs. •The identification and removal of permitting or local barriers, or addition of streamlined processes, that incentivize clean energy development. Scale of Impact AML will conduct an equity assessment within each community. The CBP provides an overview of DACs in Alaska that would be eligible applicants, and a process for working with municipal and Tribal leaders, utilities, and regional partners to deliver projects. All participating commu- nities are considered rural and the majority of residents Indigenous. Public engagement will feature ways in which the project activities may have ancillary community benefits – beyond the direct impact of the energy improvements – that include workforce and enterprise develop- ment, skills training, and resilience planning. Long-term evaluation and monitoring of project metrics This project is solely focused on capacity building and a monitoring plan is not included, as on-the-ground restoration is not proposed. However, AML will develop a monitoring plan template, for communities whose planning efforts lead to clean energy development. 3 EVALUATING MUNICIPAL PROCESSES FOR EF FICIENT CLEAN ENERGY PERMIT TING ALAS KA ENERGY AUTHORITY | PROJEC T NARRATIVE | 2870-1538 COMMUNITY OPPORTUNITY PROFILE Partnerships and Letters of Support Partnerships outlined in the Community Benefits Plan AEA has partnered with AML to deliver community benefits as part of this project, including to leverage AML’s member teaming agreement that identifies engagement with the University of Alaska and Alaska Works Partnership for training, skills, and certifications to facilitate workforce development. Recipient past experience working with the partner list AEA has included AML in project development and implementation, including for its EV Deployment in Rural Alaska, and proposed to engage AML in implementing its Community Benefits Plan for a grid deployment proposal. AEA is working with AML and AHFC in its Solar for All program, to support community and residential solar. AEA and AHFC have long- standing cooperative activities. AEA has a history of working with local governments, including supporting the distribution of PCE for high-cost communities and addressing bulk fuel needs and utility operations through its circuit rider and other programs. Strategic value and anticipated role of each partner AEA has included letters of commitment from each partner that describe roles, benefits, and impacts. AML will be the project manager, with its mission to strengthen local governments and existing relationships working with this group of communities on systems evaluation and improvements. Local governments will provide local knowledge and expertise, and a ground- level view of challenges that municipalities face in Alaska. TCC will provide technical assistance to communities within its region of purview, including from a Tribal perspective. Finally, Alaska Works Partnership will ensure a pathway is identified for training and workforce development. Community Input: AML has solicited participation from its membership base and identified three participating communities. Respondents to AML’s inquiry highlighted the need for strategic energy planning and project development. Municipal staff and elected officials, and stakeholders from under- served communities will be actively involved throughout the project, including by increasing organizational and technical capacity of underserved communities to lead and participate in clean energy development activities by a) assessing community capacity needs and ways in which capacity could be increased, and b) leveraging staff and member expertise to provide technical assistance to advance community goals, including by identifying and assisting with funding opportunities and education. How community stakeholders will be engaged in the planning process To contribute to strengthening local governments systems and increase the potential for clean energy funding to be deployed to underserved communities, AML will employ a cohort approach to 45 rural municipalities. This community cohort will identify technical assistance needs as it relates to affordable clean energy development, including the removal of barriers that might exist within municipal code, permitting, or regulatory processes. AML will work with municipalities to enhance and improve their capacity for local energy operations and gover- nance. This will be accomplished through a phased approach with a situational review, direct technical assistance in both managerial and financial capacities to ensure the community has developed the required skills to effectively plan and implement energy projects, and on-going asset management support to ensure maximum local capacity is reached and maintained. 4 EVALUATING MUNICIPAL PROCESSES FOR EF FICIENT CLEAN ENERGY PERMIT TING 5 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Technical Assistance AEA believes that this project would benefit from DOE technical assistance, including to provide additional modeling and analytical support in the evaluation of available energy system data and the potential for community alternatives that contribute to lowering costs and imple- menting clean energy and energy efficiency. INNOVATION AND LEVERAGE Innovation Ecosystem Alaska has long been a pioneer in deploying high penetration renewable energy microgrids.4 These microgrid systems—some in continual operation for close to a century—built the busi- ness case for renewable energy integration well before the rest of the country, and the rest of the world, moved in this direction. When measured in terms of installed capacity, Alaska ranked No. 1 in the US as of 2021, with over 3,500 MW installed. Renewable energy is further incentivized by a highly deregulated utility market with dozens of utilities, state investment in infrastructure in the past, and modest subsidies that create niche markets where renewable energy projects are cost-competitive. Alaska’s small and relatively constant population also translates into a market focused on serving existing customers. Innovation has been incremental but steady, moving from basic isolated diesel systems to incorporating distributed energy resources (DER) at increasing levels fueled by a continuous improvement ethos that leans toward a greater and greater uptake of clean energy resources. Most microgrids in Alaska are operated by local utilities, with over 100 certificated utilities active in the state, each serving a relatively small population. Cooperative utilities are the predominant model in Alaska, again a feature which aligns with much of the world’s utility structures that lean toward non-profit and government entities. In fact, Alaska’s public and rural cooperative approach to enhance regional grid resilience is an innovative feature of best prac- tices that can be demonstrated through this project. The project ’s innovation ecosystem includes state agencies, local governments, the University of Alaska, labor, CBOs, and Launch Alaska, an energy transition accelerator. This intergovernmental and multi-sectoral effort leverages active grid resilience and clean energy project development. This project brings together statewide and regional partners to support and provide technical assistance to rural disadvantaged communities. The planning for use of advanced technologies, systems of integration, and analysis will result in lower project costs, more resilient systems, and higher renewables adoption rate. This high level of innovation will maximize the reduction of carbon emissions. Alaska has the potential for some of the most significant transformations from diesel power generation to renewables in the nation, and already has communities that have taken these steps. While overall adoption is high and the EIA identifies 33% of Alaska’s electricity generation comes from renewable sources, the isolated nature of its microgrids makes transformation a community-by-community effort. Scale 45 communities will benefit directly from the project, with over 165 cities and boroughs benefiting from the lessons learned. AML will provide resources and expertise to all local 6 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING governments in Alaska, and share outcomes that include models for improving existing munic- ipal codes, governance and financial systems, and land-use and permitting policy. Leveraged Funds AEA has thirty active awards from the Denali Commission, AEA’s current federal cognizant agency. These awards touch on every aspect of what the agency does. There are awards for design and construction of Rural Power System Upgrades (RPSU) and Bulk Fuel Upgrades (BFU); small renewable projects that will be integrated into a remote diesel power system; energy efficiency upgrades, Utility Clerk, Powerhouse Operator, and Bulk Fuel Operator training; small maintenance and improvements for both power systems and tank farms; as well as circuit rider technical assistance and on-site training. AEA is the recipient of DOE formula funding for grid resilience, and competitive funding for EV deployment. AEA will leverage these awarded funds to participate in the Energy Futures program, and connect AEA programmatic efforts, planning, and technical assistance with participating communities. AML is leveraging the following awarded funding: $100,000 from HeroX/DOE Energy Prize, to implement an Energy Project Hub; $50,000 from USDA and EPA in support of water and sewer improvements in communities; $50,000 from EPA’s CPRG program, for Climate Action Plans. In each community, AML will provide financial tools that ensure that communities are most effectively leveraging available cash and investments. Communities may choose to participate in AML’s remote sales tax collection service, which has increased sales tax collection in rural communities by 20%. New revenues could be applied to clean energy project development. TECHNICAL QUALIFICATIONS AND WORKPLAN Technical Scope Summary The project’s work scope encompasses an 18-month performance period, during which the project manager will complete the necessary activities to fulfill the project objectives. The project’s scope includes 1) municipal engagement and technical assistance, 2) review and analysis of existing governance, financial, and land-use policies, 3) identification of technical and financial assistance pathways, and 4) maintenance of the community benefits plan. The project will result in: 1.45 municipalities committed to participating in the project activities and actively partici- pating in cohort meetings. 2.Summary document with governance (land-use, permitting, etc.) and financial recommen- dations, based on evaluation of existing processes. 3.Liquidity analysis and tax implementation, where applicable, and production of a project funding timeline. 4.Implementation of a community benefits plan that focuses on workforce development opportunities and equity analysis related to reducing community energy burden. Workplan and Task Description The project timeline anticipates early community engagement with opportunities for commu- nity review and feedback at semi-regular intervals. Each community will assist in conducting their governance and financial assessment, with the support of partnering organizations, within the first six months. Participating communities will be invited to meet bi-monthly as part of 7 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING a cohort that will review best practices, asset management, energy efficiency, conservation measures, and opportunities for carbon reduction. These sessions will be an opportunity to provide technical assistance, build competency in these areas, and address project implementa- tion challenges. Community officials will work individually and together to develop strategies for imple- menting clean energy development, working with technical experts to identify solutions that are community-specific but proven to be effective. Strategies will be shared within the cohort for cross-learning and ideation, as well as creative problem-solving. As potential projects take shape, communities will work with AML and other partners to identify resources that could be leveraged to implement identified program needs or projects. This includes local measures and Tribal collaboration, as well as state and federal resources. The project will conduct an evalua- tion of process and potential, including to identify ways in which the energy efficiency strategy of each community can be maintained over time. This project will include an evaluation phase where community participants will identify stra- tegic pathways to implementation and sustainability. This may include further development of an asset management plan, maintenance and operations budget practices, and models for continuous improvement policies, all of which will be introduced to within their cohort’s tech- nical assistance. The inclusion in the project, too, of a resource identification phase supported by knowledgeable partners will result in leveraged future funding and capacity building opportunities. Rural communities elsewhere in Alaska can utilize this model, which the Alaska Municipal League will make available. The project will help to ensure that communities that have struggled to secure public funding receive the help they need to access resources to support community resilience and infra- structure improvements that protect public health, safeguard the environment, and mitigate environmental justice concerns. AML recognizes the historic opportunity presented by federal investment. In response to this federal infrastructure investment, AML has already launched a central clearinghouse for Alaska local and Tribal governments, nonprofits, and potential benefi- ciaries at akfederalfunding.org. The goal of that effort, conducted in partnership with multiple statewide organizations and the State of Alaska, is to maximize the benefits to Alaska. As part of the clearinghouse, AML is providing access to a grant writing hotline for use by local and Tribal governments, so that we can truly maximize the potential for the IIJA funds to provide significant benefits to Alaskans. This will be extended and focused through this project on municipalities in underserved communities, in order to ensure the community has identified ways to access funds that address unserved and underserved populations in disadvantaged communities, resulting in improved health and safety. Milestones 1.45 participating communities as part of cohort. – measured by commitment letters secured and active participation in bi-monthly meetings. 2.Summary of governance and financials recommendations – measured by AML producing final document, with concurrence by cohort. 3.Produce project funding timeline – measured by completion of liquidity or tax analysis, and grant identification process complete, with documentation at community level. 4.Project level community benefits plan – measured by the cohort establishing individual community benefits plans for clean energy projects. 8 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING End of Project Goal The project’s goal is to reduce the energy burden (cost) of disadvantaged communities, measured against current baseline, and increase energy access to affordable clean energy (number of homes and businesses). Project Schedule Task, Sub-task, and Milestone - by month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1. Municipal Engagement 1.1. Direct Participants Committed 1.2. Municipal Energy Futures Cohort established 1.3. MEFG stakeholder calls M1. 45 municipalities participating in project 2. Review and analysis of existing processes 2.1. Gather municipal codes, permitting, and fee structure 2.2. Evaluate efficacy of current governance and financials M2. Produce summary document of recommendations 3. Identify pathways to technical and financial assistance 3.1. Conduct liquidity analysis 3.2. Evaluate potential for tax changes 3.3. Identify state and federal funding opportunities M3. Produce a timeline for project funding 4. Maintain community benefit plan 4.1. Summarize workforce development opportunities 4.2. Evaluate potential for reducing community energy burden M4. Produce project level community benefits plan Project Management On behalf of AEA, AML will aggressively manage the project to ensure consistency of the inter- related community-level projects contributing to the proposed outcomes of the overall effort. AML will maintain frequent communication with stakeholders, subrecipients, and subcon- tractors through all stages of the project and establish project support infrastructure to ensure success. AML will enforce appropriate standard project management practices and processes, and control for performance, scope, and budget. AML will be responsible for initiation, reporting, monitoring and measuring project outcomes, and project close-out. 9 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Team AEA will provide administrative and strategic support, as well as subject matter expertise, as the prime applicant. AEA has managed both its Renewable Energy Fund and Emerging Technology Fund since 2008, and programs like Power Cost Equalization since 1985. AEA annually reviews the potential for microgrid projects to lower costs and reduce diesel consumption, including through the use of renewables. AEA has experience with improving, upgrading, and building out rural microgrids, including through modern distribution systems and controls, Battery Energy Storage Systems (BESS), Modern and emission efficient diesel back-up powerhouse systems, and through SCADA controls between renewables and diesel back-ups. AML will be the project manager and implement coordinating activities that engage local governments in a robust process of review and analysis. AML has played a significant role in strengthening the effectiveness of federal and state relief and investment into Alaska local governments and Tribes. AML has also partnered with the State of Alaska to build better service delivery at the local level, cultivate State-municipal relationships, and provide local input into State decision-making. AML has completed timely reporting requirements, including monthly reports that have required data exports, summaries of engagement, and review of activities. Final reports have included financial reporting and outcome evaluation. AML will engage DOT&PF and AHFC to assist in evaluating the intersection of clean energy with housing and transportation. AHFC is a quasi-state entity that makes mortgages accessible to Alaskans and provides affordable housing and energy efficiency programs. AHFC implemented the $242.6 million Home Energy Rebate program from 2008-2016 reporting 26,587 homes improved with an average energy reduction of 34%. DOT&PF and AML have an existing MOA and together host the Alaska Transportation Hub, which identifies local transportation projects and provides technical assistance and grant-writing support to communities. AML has identified municipal case studies to include in the project, for a total of 45 anticipated. The following local governments and tribal entity have committed to participating already: •City of Hughes – evaluation of solar to offset diesel generation. •City of Fort Yukon – flood-impacted community. •City of Chevak – energy plan development that includes decreasing water/sewer costs. •Tanana Chiefs Conference – support regional clean energy planning efforts. Separately, each participating community will provide a point of contact (POC) who will dedicate two hours a month to the effort and make available staff to participate in monthly educa- tion and engagement calls. The POC will coordinate any site visits and access for evaluation. Municipal officials will participate in the planning and prioritization process. The combination of activities represents another FTE, provided as an in-kind contribution. Leadership Support AEA’s Executive Director and leadership team are committed to increasing the availability of and access to affordable clean energy deployment in Alaska. This project fits within AEA’s strategic plan and overall grid resilience efforts. AML members have consistently rated high energy costs as a concern, including within AML’s policy statement, and this project reflects the consensus of local governments. AEA and/or AML will coordinate the participation of elected leadership in briefings to DOE at least 2 times per year. Relevant, previous work efforts, and demonstrated innovations that lead to project objectives AEA has successfully managed and completed over three-hundred grants in the last decade from many different agencies as well as private funds from the Volkswagen Settlement. AEA was a successful applicant to the BUILD program in 2020 for the Alaska Cargo and Cold Storage Project. In 2022, the Department of Defense awarded AEA over $12 million to extend power to the Black Rapids training site near Delta Junction. This wide array of current and past programs, and grant management experience, ensures that AEA is appropriately prepared to manage this project, including a sub-award and project delivery and assessment process. The roles and work of the Project Manager and key personnel at the prime and sub levels AEA has more than thirty-five professionals on staff, including but not limited to engineers, planners, project developers, project managers, accountants and finance officers, and policy analysts. AEA has a team of highly qualified renewable energy project and program managers that work for Conner Erickson, Director of Planning and Audrey Alstrom Director of Renewable Energy and Energy Efficiency. Staff assignments will be made as projects and the technologies they are going to implement become clear. The technical and management aspects of the management plan AEA has experienced staff and management systems in place to administer this microgrid transformation, and the overall program management. AEA has a full suite of highly qualified individuals, and a strong system of internal controls in place that facilitates meeting all compli- ance requirements. AEA’s financial and project manage¬ment capabilities are demonstrated by receipt of unqualified audit opinions for both our annual Financial Statements and Federal Single Audit report, located on AEA’s website. AEA will establish a sub-award agreement with AML, which will include project manage- ment and compliance, as well as Community Benefits Plan implementation. As members of AML, participating communities will be able to leverage AML’s existing partnerships to deliver community benefits. AML’s goal is to augment AEA’s capacity, recognizing the scale of activi- ties currently underway in Alaska, which this project complements. AEA will work with AML to develop and maintain the Project Management Plan (PMP). AML will manage and implement the project in accordance with the PMP. How communications will be maintained among project team members Internal communications strategies and tactics will be organized by type, frequency, and audience to ensure relevant information is shared with appropriate stakeholders. Publication arrangements AML will be responsible for all project publications, including as applicable and appropriate recognition of AEA as the project sponsor and DOE as the funding agency. 10 EVALUATING MUNICIPAL PROCESSES FOR EF FICIENT CLEAN ENERGY PERMIT TING ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 1 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Community Benefits Plan The Alaska Energy Authority (AEA) has a successful record partnering both as owner and project manager in community capital projects and in advancing State energy goals and prior- ities. AEA also has established relationships with tribal entities, local governments, and other State departments, with a focus on workforce, permitting, and community development. Early engagement with these stakeholders will help to ensure that the project is responsive to local energy plans and goals. AEA administers the Power Cost Equalization (PCE) program – an endowed fund source with more than $1 billion in assets – that provides economic assistance to communities and residents of rural electric utilities where the cost of electricity can be three to five times higher than for customers in more urban areas of the state. AEA, along with the Regulatory Commission of Alaska (RCA), administers the program that serves 82,000 Alaskans in 193 communities that are largely reliant on diesel fuel for power generation. AEA works to address and overcome chal- lenges within these disadvantaged communities on a monthly basis. AEA and Alaska’s public and cooperative utilities are accustomed to engaging with local govern- ments and tribal entities through permitting and regulatory processes for rural energy projects. The applicable projects would establish milestones urging earlier dialogue with local govern- ments and Tribal entities. These conversations should begin sufficiently early in order to inform project development in response to local communities’ needs and concerns. Local governments and Tribal entities are uniquely situated to help identify the most effective actions the projects can take toward partnerships that advance workforce issues; diversity, equity, inclusion, and accessibility; and the flow of project benefits to disadvantaged communities. AEA and partner utilities have extensive experience engaging with residents and businesses in town halls and similar formats. AEA is a public entity with obligations to reduce the cost of energy in Alaska, in the public interest. In addition, AEA’s Circuit Rider Program provides skilled labor to address, diagnose, and repair rural powerhouses. In addition, the Circuit Rider Program provides training for local communities to create skilled power plant labor. As rural microgrids shift towards renewable systems, AEA will ensure that the Circuit Rider Program adapts and continues to support and train local communities in the use of improved power systems. This project’s Community Benefits Plan anticipates that community benefits will accrue within each project period as part of project activities, and as part of its objectives and outcomes. Aligning Community Capacity and Project Development with Best Practices An NREL study on distributed renewables for Arctic energy1, found that community buy-in and ownership is essential, as this extract demonstrates and the project anticipates and responds to. AEA knows that projects must be community-driven and supported, with community members understanding and participating in the value proposition of moving to a stronger reliance on renewable energy. It is critical to include and receive buy-in from key stakeholders like utility managers, operators, project champions, and local government officials. Beyond project devel- opment, community engagement must be ongoing, and continue after the project is deployed to maintain community support and ownership. Long-term engagement is an essential element of sustainability. ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 2 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING • For example, a strong community focus enabled a successful project in Kongiganak: the community trained and retained a local workforce, built community trust through presen- tations in village meetings, and received community leader and tribal council support. In Galena, hiring and training an all-local workforce provided enhanced job satisfaction, increased local capacity, and strengthened the community overall. AEA is planning to ensure that proposed systems should be commensurate with the training, education, and availability of the local workforce, through the on-going relationship with the Alaska Vocational Technical Center (AVTEC) and the appropriate labor unions. AEA knows that the use of community-appropriate technology reduces system failures and the community’s dependence on long-term, expensive, external assistance. Local capacity will determine how simple or complex the system should be, and what assets it can include. Robust operations and maintenance plans must be considered from the start, and technical assistance provided to complete and maintain these. Communities have found that small, easy-to-maintain pilot systems with solar photovoltaics (PV), batteries, and/or wind can be a good stepping-stone to larger, more complex systems with higher contributions of renewable energy. Community-based technical capacity may be increased over time through community education and expanded experience from operating power systems. Many communities have been successful in engaging local youth, with energy providers gaining traction by speaking through credible, communi- ty-based educators. • In Kotzebue, installing small wind turbines provided the technical capacity for subsequent installations of much larger wind turbines, batteries, and solar PV systems. In Galena, a focus on community education and training allowed the community to perform increasing portions of system maintenance locally and has enabled it to set its sights on future solar projects. AEA knows that having a regional or statewide pool of support resources increases the like- lihood of success, which its cohort and technical assistance approach will support. Having a network of knowledgeable people actively engaged in operating projects, such as an energy cooperative, that can provide targeted education or technical knowledge, increases the likeli- hood of project success, and can allow communities to install systems that they may not be able to support on their own. Allowing a process for communities to access this network will stream- line the renewable energy development process including planning, financing, installation, and operations. Such a network is especially helpful for small communities with limited human capital. A face-to-face knowledge sharing network would increase the number and success rate of community projects. • Kongiganak is part of the Chaninik Wind Group (CWG), which helps secure wind energy project funding, shares training expenses, builds local capacity, and reduces energy costs. The CWG has built projects in each of its six member communities, leveraging the capacity built from each successful project. AEA will identify and support competent, practical project managers that are required to ensure the project’s success. The technical, financial, managerial, and community engagement compo- nents of a renewable energy project must be overseen by experienced personnel to help ensure effective delivery of projects. Managers must be able to validate project proposals from engi- neers and external entities, compare those proposals to community needs, and decline when necessary. Some communities also face rapid turnover of bookkeeping and managerial staff, ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 3 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING reducing their financial and managerial capacity for projects. Such seemingly minor problems can have long-term impacts. • In Kodiak, early renewable projects failed due to insufficient engineering and project management. Since then, a renewed focus on these components has enabled successful projects. Community and Labor Engagement Engaging with labor unions, local governments, and Tribal entities. AEA and partners have established long-term, and mutually valued relationships with the orga- nized labor community in Alaska. Larger development often occurs within collective bargaining agreements of the International Brotherhood of Electrical Workers (IBEW) and the various trade unions, depending on location. While this is very much about scale, the Alaska approach will be to engage its labor partners early to initiate discussions toward labor agreements and overall benefits of the project. Alaska Municipal League (AML) will establish a relationship with the Alaska American Federation of Labor and Congress of Industrial Organization (AFL-CIO) to assess the impact of project development on future community benefits and labor engagement. AEA has included in its timeline and milestones to discuss with organized labor the need for local and targeted hiring goals, card-check neutrality, and possible provisions advancing programs to attract, train and retain new workers. * Milestone: Produce summary of labor perspectives on community energy planning and project development, and benefits thereof. AML is a critical part of the project’s community engagement, as it represents all city and borough (county-equivalent) governments in the state. While AEA and other partners are accustomed to engaging with local and Tribal governments through permitting and regulatory processes for capital projects, AML will be in a position to reach out directly to incorporate municipal perspectives and priorities into the project design and outputs. The project antici- pates that community engagement will be initiated early and conducted often to inform project development and implementation. Local and Tribal governments are uniquely situated to help identify the most effective actions the projects can take toward partnerships that advance workforce issues; diversity, equity, inclusion, and accessibility; and the flow of project benefits to disadvantaged communities. * Milestone: Establish stakeholder working group to inform process and final product. Workforce and Community Agreements Partners anticipate that there will be opportunities for workforce or community strategies to be established as a direct result of the project. AML will be responsible through its stakeholder engagement role to work with community leaders to identify ways in which the project benefits can best accrue to the community. This will include planning for environmental justice, carbon reduction, workforce development, shared procurement, local hire, and asset management, including maintenance and operations planning and technical assistance. AML will reference DOE’s Community Benefit Agreement Toolkit2, recognizing that it doesn’t apply the same to federal projects as private, its intended purpose. The outcome of the CBA will be 40% percent of benefits should be allocated to communities of color, Indigenous peoples, low-income communities, and other marginalized groups. Each project will evaluate the opportunity for workforce agreements, as well, which will help ensure equity for women, people of color, and ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 4 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING other historically disadvantaged or underrepresented groups in the project’s implementation. Project sponsors will work through a facilitated community stakeholder process to identify ways in which workforce goals will be met. Goals include local hire, family-supporting jobs (wage parity), health insurance, diverse workforce, diverse workforce participation, and resources for continuing education and certification that result in a highly skilled workforce. Contractor solici- tation should reference these goals as part of criteria for an award. * Milestone: Community Benefit Strategies will be established with each participating commu- nity, which will include a template for Workforce Agreements. Approach to apprenticeships and local hiring goals AML will maintain a local workforce availability and hire tracking system throughout the life of the project, enabling local hire goals to be met and cross-promoting hire between projects that might occur within a region. This system will also track municipal and tribal workforce in-kind contributions, staff time that is applied to the project planning and implementation. The project team will work with the University of Alaska (UA), AVTEC, and Alaska Works Partnership to identify ways in which training, apprenticeships and local hiring can benefit from microgrid implementation. In addition, the project will reference the Alaska Workforce Investment Board’s strategies for workforce development, found in its Combined Plan for Workforce Innovation and Opportunity3. The UA is an important mechanism for workforce development, including for apprenticeships. 20 years ago, the University of Alaska Anchorage (UAA) created the Associate of Applied Science in Apprenticeship Technologies. The University of Alaska System, the UAA Community and Technical College, and several joint apprenticeship training programs have joined the United States Department of Labor (USDOL) Registered Apprenticeship-College Consortium, which simplifies the process for an apprentice to earn college credit. Alaska Works Partnership is a non-profit organization that gives Alaskans access to jobs and careers in the construction industry. Alaska Works educates Alaskans about good paying jobs, teaches basic skills, and establishes pathways for Alaskans to learn skills that last a lifetime and earn good pay with health care and retirement benefits. Alaska Works was created by Alaska’s Building and Construction Trade and their apprenticeship training trusts in 1996. Alaska Works partners with industry employers, community organizations, educators and the State of Alaska to develop Alaska’s workforce. Several thousand Alaskans living in over 140 communities have gotten a start in construction through one of their programs, illustrated below. • Apprenticeship Outreach • Alaska Construction Academy • Helmets to Hardhats • Women in the Trades • Building Maintenance * Milestone: Training and outreach includes pathways to apprenticeship and training programs. ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 5 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Figure 1: Programs offered by Alaska Works Partnership. Documented community and labor partnerships AML has inclusive and documented community partnerships. As member organizations, the participating communities include municipal and Tribal governments in important ways and will ensure these perspectives and priorities are included in project design and implementation, and that outcomes are consistent with community interests. AML is working toward a teaming agreement with the Alaska AFL-CIO, which will inform future labor engagement. Labor agree- ments are otherwise developed at the project level and specific to community needs. AML will work through the Alaska AFL-CIO to provide project sponsors the opportunity to engage labor councils within regional districts. * Provide documentation of teaming agreement with the Alaska AFL-CIO in first quarter. Investing in the American Workforce This project has the ability to result in increased investment in America’s work- force. This project results in an increased potential for job creation and business development, and a team subcommittee will work through AML to engage with the Alaska Small Business Development Center to identify ways in which this can be maximized, not just in project development and delivery, but in the long-term. USDA’s Economic Risk Assessment Dashboard tracks COVID, Community Distress, Unemployment, and Social Equity and is a good example of where economic benefits might accrue. It produces a dashboard for Alaska that identifies fully half the state by geography as distressed, more than any other state in the nation. The majority of project-funded activities will occur in these distressed regions of Alaska. Creation and retention of quality jobs 1) Plan to attract, train, and retain a skilled and well qualified workforce. The majority of the work involved will be by partner staff, current and future. Contracts from the project sponsor will be available to partners, depending on scope and competency, and the goal of the project team is to maximize the investment in that workforce. In this way the project Caption? ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 6 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING team can ensure that it is able to foster safe, healthy, and inclusive workplaces with equal opportunity, free from harassment and discrimination. In addition, the partners have considered ways in which to make investments in training, education, and skill development and supporting the corresponding mobility of workers to advance in their careers. The project will assess collec- tive bargaining agreements as identified through the life of the project. i. Wages, benefits, and other worker support provided. The project sponsor and partners approach to quality jobs means that project staff will have (1) fair, transparent, and equitable pay that exceeds the local average wage for an industry, while delivering; (2) basic benefits (e.g., paid leave, health insurance, retirement/savings plan); (3) providing workers with an environment in which to have a collective voice; and (4) helps the employee develop the skills and experiences necessary to advance along a career path. In addition, the partners will offer good jobs that provide (5) predictable scheduling, and a safe, healthy, and accessible workplace devoid of hostility and harassment. With good jobs, (6) employees are properly classified with the limited use of independent contractors and tempo- rary workers. Workers have a (7) statutorily protected right to a free and fair choice to join a union under the National Labor Relations Act (NLRA). ii. Commitments to support workforce education and training. The partners will encourage project staff to participate in training programs and encourage contractors to offer paid time for employees to participate in skills training. This will include the provision of personalized, modularized, and flexible skill development opportunities, such as on-demand and self-directed virtual training. This will be included as part of the cohort support system established through the project. The project will identify and provide continuing educa- tion programs for employees to earn credentials and degrees relevant to their career pathways. * Milestone: Include workforce education and training opportunities in training and technical assistance. * Produce a guide for communities that includes methods by which to reduce employee turn- over costs for employers, increases productivity from a committed and engaged workforce, and promotes a stable workforce for projects in the community. Advancing Diversity, Equity, Inclusion, and Accessibility The project team recognizes the value of a meaningful and targeted approach to advancing diversity, equity, inclusion, and accessibility. The following is a description of the methodology the team will implement in project design and implementation. Equity: Project partners have shared commitments to 1) build a diverse workforce, supported by equitable operations and policies, and establish an informed culture that delivers authentic inclusivity; 2) promote economic opportunity for Alaskans through transportation investments, including working with businesses owned by Black, Indigenous, People of Color, women, and others who have been historically and/or are currently marginalized; 3) utilize the viewpoints of those who reside in the communities and who are likely to be affected by the outcomes of the project; and 4) invest in the protection of marginalized communities from environmental hazards. Diversity: Project partners have shared commitments to 1) a workforce that is talented, diverse, and committed to fostering a safe, fair, and inclusive workplace; 2) ensure all voices, regardless of social identity or social demographics, are heard and their views influence project decisions; 3) work with stakeholder groups to aid in communication with the community and project personnel. ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 7 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Figure 2: EPA EJScreen Low Income Regions in Alaska. Inclusion: Project partners have shared commitments to 1) include the diverse perspectives within this project’s scope and deployment; 2) leveraging investments and increasing path- ways to opportunity for minority-owned and disadvantaged business enterprises, and for individuals who face systemic barriers; 3) meaningful engagement with communities that are diverse and underrepresented in the creation and implementation of the programs and projects that impact the daily lives of their communities by creating more transparent, inclusive, and on-going consultation and collaboration process; 4) ensure the project includes practices based on community engagement to avoid harm to frontline and vulnerable; and 5 provide training to staff to promote inclusion internally and externally. Accessibility: Project partners have share commitments to 1) strengthen accountability poli- cies and procedures, create a more accessible and disability-inclusive workplace, and foster a greater respect for religious diversity; 2) ensure that reasonable accommodations are handled with tact and care to provide community members as well as employees the opportunity to fully participate in project activities; 3) develop and implement a process to Increase awareness of accessibility tools and disability inclusion; 4) review and evaluate disability inclusion policies and practices in crisis and emergency management including, but not limited to, planning and response for pandemics, disasters, and evacuations in the domestic context; 5) examine options to enhance technological accessibility; and 6) increase awareness of religious accommodations. Justice 40 Initiative AEA’s Energy Futures project will strengthen municipal processes for clean energy development in approximately 45 communities. The project team has utilized a variety of tools to assess disadvantage. EPA’s EJScreen identifies areas of the state experiencing low income, for instance. This is generally consistent with where Power Cost Equalization (PCE) communities fall in AEA’s 10 rural energy regions, where high cost is relative to an average of three urban communities. Excluding the Railbelt, which accounts for 75% of Alaska’s population, this project will focus on eligible projects in rural communities that are considered disadvantaged or Tribal. ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 8 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING City/Borough FIPS*Pop.Rural (OMB) National SVI* Ranking (CDC) APP* (DOT) DDA* (HUD) Distressed Communities Aleutians East Borough 2013 3,515 Yes Moderate to High No Yes No Aleutians West Census Area 2016 5,723 Yes Low to Moderate No Yes No Bethel Census Area 2050 18,216 Yes High Yes Yes Yes Bristol Bay Borough 2060 877 Yes Low to Moderate No No Yes Valdez- Cordova Census Area 2063 9,202 No Low to Moderate No No Yes Denali Borough 2068 2,059 Yes Low No Yes Yes Dillingham Census Area 2070 5,000 Yes High No Yes Yes Haines Borough 2100 2,474 Yes Low No No Yes Hoonah- Angoon Census Area 2105 2,151 Yes Low to Moderate No No Yes Ketchikan Gateway Borough 2130 13,918 Yes Moderate to High No Yes Yes Kodiak Island Borough 2150 13,345 Yes Moderate to High No Yes Yes Kusilvak Census Area 2158 8,049 Yes High Yes No Yes Lake and Peninsula Borough 2164 1,587 Yes High No No Yes Nome Census Area 2180 10,008 Yes High No Yes Yes North Slope Borough 2185 9,872 Yes Moderate to High No Yes Yes Northwest Arctic Borough 2188 7,671 Yes High No Yes Yes Wrangell- Petersburg Census Area 2195 5,910 Yes Moderate to High No Yes Yes Prince of Wales – Hyder Census Area 2198 6,422 Yes High No No Yes Sitka 2220 8,458 Yes Low to Moderate No No No Skagway 2230 1,240 Yes Low No Yes No Southeast Fairbanks Census Area 2240 6,918 Yes Moderate to High No Yes Yes Wrangell 2275 2,127 Yes Moderate to High No No Yes Yakutat 2282 662 Yes Moderate to High No Yes No Yukon- Koyukuk Census Area 2290 5,327 Yes High Yes No Yes The table below demonstrates for relevant census areas and boroughs (county equivalent), their FIPS iden- tification for reference, population, Rural status according to the Office of Management and Budget (OMB), their social vulnerability index according to the Centers for Disease Control and Prevention (CDC), whether they are Areas of Persistent Poverty according to United State Department of Transportation (USDOT), whether they are difficult to develop according to Department of Housing Figure 3: 193 high-cost communities that AEA serves. ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 9 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Benefits Quantifiable Measure Tracking Decrease in Energy Burden Tbtu / Million $Site Energy Savings Energy Costs Savings 2009 Baseline – annual and cumulative Decrease in environmental exposure MMT CO2 Reduction 2009 Baseline – annual and cumulative Increase in access to low-cost capital Million $Capital availability AAHA report on access to capital Increase in job creation and training Job #s Jobs and training opportunities ASHBA report/DOL&WD Increase in clean energy jobs and enterprise creation Business #s Business development ASHBA report/AKSBDC Increase in community ownership Municipal code Adoption or revision Community reporting/AML Increased parity in clean energy tech- nology access and adoption Municipal code Energy technology reference Community reporting/AML and Urban Development (HUD), and whether the Denali Commission considers communities within Distressed. An equity assessment will be conducted within each community as part of the project’s munic- ipal support process. This will include review of available datasets to ensure distribution of project benefits to 40% disadvantaged communities, and to structure ways in which project sponsors and contractors can implement strategies that maximize equitable benefits. 2. Identification of applicable benefits that are quantifiable, measurable, and trackable. AML will provide the following template for communities to track project benefits that are quantifiable and measurable. Baseline measures will be secured prior to project implementa- tion and available for communities to measure upon implementation of future activities. 3. Anticipated Negative and Cumulative Environmental Impacts on disadvantaged communities. While EPA’s EJScreen does not include sufficient data to assess the potential impact of the project to disadvantaged communities, the project team recognizes the research that exists to describe the value and impact of renewable energy development generally. Fuel transportation to remote Alaskan communities is becoming more susceptible to climate-re- lated disruptions. In these communities, fuel is typically delivered by barge, which for inland communities is only available during the summer when the rivers are free of ice. Changes in river paths, low water levels, increasing sediments, or unexpected storms can put shipments at risk, leaving a community without the energy stores needed to meet high heating loads during the long winter. Alternative methods of delivery, such as ice roads and winter-based overland routes, are becoming less secure as the climate warms. The emergency alternative— flying diesel in on small planes or even by helicopter—increases costs exponentially, with some communities paying over $16/gallon (Hughes 2022). Burning diesel also releases greenhouse gases and other pollutants, accelerating climate change and reducing local air quality. The effects of climate change are being experienced acutely in Arctic regions like Alaska, as melting permafrost further reduces transportation options and puts building foundations at risk. ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 10 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Remote Alaskan communities have and will continue to lead in community-based renewable energy development, serving as an example for similar communities throughout the world. Many communities have excellent wind, solar, hydropower or biomass resources waiting to be used. Sixty-nine Alaskan communities have so far integrated some form of renewable energy4, and between 2014 and 2018, 5,210 households in rural Alaska received building energy effi- ciency improvements to reduce overall energy demand5. A variety of funding sources and programs are available to support communities in the complex transition to renewable energy. Remote locations may be rich in renewable energy sources, but the intermittent nature makes their integration into the power grid a challenge. AEA’s approach to innovative microgrid solutions includes grid stabilization technology that enables high penetration of renewable power generation, and distributed control systems that provide intelligent power management and efficient hybrid power plant operation. By addressing integration issues, AEA is maximizing deployment of locally based renewable energy resources. Energy planning can offer enhanced protection against the threats of natural disasters and terrorism to make our communities more resilient, sustainable and livable for generations to come, which lowers the price of mitigation for building owners. The many challenges to public health and safety and environmental sustainability in our increasingly complex global society call for a holistic approach to public policy development and business models, including how we construct buildings. Thoughtful consideration of "performance goals" prior to taking action is important for budget planning and for establishing priorities, such as: public health and safety; protection of ecosystems and the important functions they serve; accessibility and mobility for all citizens; affordable housing; and economic sustainability. Implementation of new policies and practices should start by identifying the intersections and synergies that will achieve the perfor- mance goals (which may change) in the most responsible and cost-effective way possible. USDA Rural Development has data identifying Distressed Energy Communities6, which covers a large swath of Alaska. These are regions that will benefit most from locally sourced renewable energy projects. This will be part of the project review process for evaluation of eligibility and competitiveness. 4. Benefits to Disadvantaged Communities. Disadvantaged communities will directly and indirectly benefit from the outcomes of the project activities. By inclusive engagement in project development, scoping, and implementation, disadvantaged communities will be exposed to learning opportunities that will enable them to improve current practices and policies. Upon completion, the projects will provide public health and safety benefits to communities. * Milestone: Stakeholder exit interviews indicate benefits from process and outcomes, and incorporation of financial, governance, and land use planning principles for long-term sustainability. One of the hallmarks of this project will be the high level of technical assistance provided to project sponsors and to potential applicants. ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 11 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Figure 4: USDA RD Distressed Energy Communities. • A cohort approach – Participating communities will be included in a cohort that involves them in continual learning opportunities. Community leaders will participate in quarterly web-based sessions that provide resources and trainings on project and grant management, asset management, maintenance and operations, and governance and financial sustainability. • Technical assistance –AML will provide project development and application support to strengthen capacity for federal funding applications to be more successful. Monitoring and Evaluation AEA will ensure that milestones are being met and that communities receive support necessary to track and report quarterly progress that includes surveying of stakeholders to determine the extent to which projects are on track to achieve beneficial outcomes for disadvantaged commu- nities. Communities with little capacity will receive support from AML to track and report without adding to their operational burdens. The project team has built into the performance periods a gap year during which extensive process review will identify any weaknesses in the program delivery. Project sponsors will be interviewed to learn about challenges and solutions, which will be applied to redevelopment of the program, as necessary, to strengthen implementation through the life of the rest of the project. ALASKA ENERGY AUTHORITY | COMMUNITY BENEFITS PLAN | 2870-1538 12 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING Endnotes 1 https://www.nrel.gov/docs/fy23osti/84391.pdf 2 https://www.energy.gov/diversity/community-benefit-agreement-cba-toolkit 3 https://awib.alaska.gov/pdf/WIOA_plan_2022-2023.pdf 4 McMahon et al. 2022 5 Alaska Housing Finance Corporation, 2018 6 https://ruraldevelopment.maps.arcgis.com/apps/webappviewer/index. Figure 5: Twin Hills, Alaska. The project will complete its evaluation process with an in-person workshop that includes a comprehensive review of all activities, planning, stakeholder engagement, and community benefits. A summary of findings will be released as a result of the project, developed in collaboration with participating communities and project sponsors, and shared with those communities and the public at large. This approach will ensure that learning drives future performance. ALASKA ENERGY AUTHORITY | LETTERS OF SUPPORT | 2870-1538 EVALUATING MUNICIPAL PROCESSES FOR EFFICIENT CLEAN ENERGY PERMITTING CONTROL NUMBER2870-1538 PROJECT TITLEEvaluating Municipal Processes for Efficient Clean Energy Permitting PRIME APPLICANT ORGANIZATIONAlaska Energy Authority (AEA) LETTERS OF SUPPORT Honorable Jennifer Granholm Secretary of Energy 1000 Independence Ave, SW Washington, DC 20585 RE: Support and Commitment for the project, “Evaluating Municipal Processes for Efficient Clean Energy Permitting” for funding from the FY2023 Energy Futures Grant Program September 22, 2023 Dear Secretary Granholm, On behalf of the Alaska Municipal League (AML), I write to express our strong support for and commitment to delivering the Alaska Energy Authority’s project submission to the Energy Futures Grant Program, “Evaluating Municipal Processes for Efficient Clean Energy Permitting project.” This project brings together a collaborative approach between partners, which we know will deliver benefits to participating communities and to the state. Together with the project sponsor, other agencies and local governments have signed on to be a part of this project that is intersection between clean energy, buildings, and transportation. The project’s innovation ecosystem includes state agencies, local governments, university experts, community-based organizations, and an energy transition accelerator. This intergovernmental and multi-sectoral effort leverages active grid resilience and clean energy project development. This project brings together statewide and regional partners to support and provide technical assistance to rural disadvantaged communities that will benefit from EFG support. AML is excited to be part of this process. Specifically, AML has agreed to partner as the project manager and be actively engaged with the project sponsor in this project, “Evaluating Municipal Processes for Efficient Clean Energy Permitting.” More specifically, AML is prepared to act as a sub-recipient and deliver the project in cooperation and on behalf of AEA. As a nonprofit corporation that serves to strengthen local government for its membership of Alaska’s 165 cities and boroughs. We commit to be an available resource, especially related local codes understanding and implementation, and related to local zoning and permitting, and to leverage current conversations about project bundling. AML will comply with all necessary reporting and monitoring requirements. Again, the AML is proud to show its commitment to AEA in receiving this Energy Futures Grant and to be a part of this work that will benefit rural, disadvantaged communities across the state. Respectfully, Nils Andreassen Executive Director (907) 790-5305 / nils@akml.org Honorable Jennifer Granholm Secretary of Energy 1000 Independence Ave, SW Washington, DC 20585 RE: Support and Commitment for the project, “Evaluating Municipal Processes for Efficient Clean Energy Permitting” for funding from the FY2023 Energy Futures Grant Program September 22, 2023 Dear Secretary Granholm, On behalf of Alaska Housing Finance Corporation, I write to express our support for Alaska’s project submission to the Energy Futures Grant Program, “Evaluating Municipal Processes for Efficient Clean Energy Permitting project.” This project brings together a collaborative approach between partners to deliver benefits to participating communities and to the state. The project supporters link clean energy, buildings, and transportation and include intergovernmental and multi-sectoral entities that leverage active grid resilience and clean energy project development. Statewide and regional partners are positioned to provide technical assistance to rural disadvantaged communities that will benefit from EFG support. Alaska Housing is a long-time partner of Alaska Energy Authority and will be actively engaged with AEA on “Evaluating Municipal Processes for Efficient Clean Energy Permitting,” specifically as it relates to our work with energy efficiency and in the administration of other federal grants for which our organizations are uniquely positioned to administer. We believe this grant will benefit rural, disadvantaged communities across the state, and we thank you for your support. Respectfully, Bryan Butcher CEO/Executive Director Alaska Housing Finance Corporation “Keep Alaska Moving through service and infrastructure.” Department of Transportation and Public Facilities OFFICE OF THE COMMISSIONER Ryan Anderson, P.E., Commissioner PO Box 112500 Juneau, Alaska 99811-2500 Main: 907.465.3900 dot.alaska.gov September 28, 2023 The Honorable Jennifer Granholm Secretary of Energy 1000 Independence Ave, SW Washington, DC 20585 RE: Letter of Support and Commitment for the project, “Evaluating Municipal Processes for Efficient Clean Energy Permitting” for funding from the FY2023 Energy Futures Grant Program Dear Secretary Granholm: The Alaska Department of Transportation and Public Facilities (DOT&PF) unequivocally supports the Alaska Energy Authority’s (AEA) project proposal, “Evaluating Municipal Processes for Efficient Clean Energy Permitting,” submitted for consideration under the Energy Futures Grant Program. This collaborative project, which involves numerous partners, is poised to deliver substantial benefits to our participating communities and the state at large. Our rural communities grapple with aging diesel systems and out-of-date municipal codes from the 1980s, stifling our shift towards cleaner energy. This project seeks to rectify this by reviewing and updating municipal codes to enable efficient clean energy deployment. Our comprehensive approach will equip municipalities with a clear roadmap for clean energy projects, fiscal models, and enhanced land-use policies. This project aligns with the Administration's aspirations to combat climate change and push for environmental justice. With seven esteemed partners onboard, the project sponsor, AEA, will create innovative clean energy plans that span the transportation, power, and building sectors. Moreover, the project team plans to incorporate up to 42 communities, indirectly benefiting all of Alaska’s cities. This endeavor will culminate in a considerable reduction in annual energy costs and the removal of bureaucratic hurdles hindering clean energy progress. Alaska's existing legislative framework endorses local control, but our energy landscape remains disjointed. The project will include equity assessments, recognizing the majority Indigenous populace of our participating rural communities. This holistic approach will elucidate other potential benefits of our projects, such as workforce development and skill training. The transportation sector will significantly benefit from this grant. By modernizing municipal permitting and processes, we lay the groundwork for quicker adoption of electric and alternative fuel vehicles and efficient public transit systems. This project will not only promote the use of renewable energy in transport but also reduce our carbon emissions, curtail our reliance on fossil fuels, and bolster the resilience of our transportation networks. In essence, this grant is pivotal for ushering in a sustainable and modern transportation system. 2 “Keep Alaska Moving through service and infrastructure.” DOT&PF is fully committed to partnering with the project sponsor and commits to offering expertise in local codes, zoning, and permitting, ensuring project alignment with regulations. Furthermore, DOT&PF will provide support as requested for specialized tasks and assist in community outreach and engagement activities. 1. Resource for Local Codes Understanding and Implementation. Provide technical assistance, ensuring that all aspects of the project align with regulations. 2. Guidance on Local Zoning, Permitting, and Project Bundling. DOT&PF has extensive experience in navigating the intricacies of local zoning and permitting processes, ensuring projects are compliant and benefit from streamlined approvals. Recognizing the value of efficiency, DOT&PF is also keen to leverage ongoing conversations about project bundling. Our aim is to synchronize multiple smaller projects under one unified umbrella, optimizing resources and timelines, and maximizing outcomes. DOT&PF will share best practices, liaise with local stakeholders, and help circumvent potential roadblocks. 3. Workforce Resource and Outreach Assistance. Recognizing that a project's success often hinges on the people involved, DOT&PF is prepared to offer technical assistance, especially in areas where specialized skills or local knowledge are required. Our communication teams will work collaboratively with the project's stakeholders, assisting in community engagement, public relations, and any necessary educational campaigns. Our vast network within Alaska ensures that messages are conveyed effectively and receive the desired traction. DOT&PF wholeheartedly backs this Energy Futures Grant application and look forward to fostering positive change for Alaska's rural communities. Sincerely, Ryan Anderson, P.E. Commissioner cc: Katherine Keith, Deputy Commissioner, DOT&PF Nils Andreassen, Executive Director, Alaska Municipal League Tanana Chiefs Conference is a non-profit organization that works toward meeting the health and social service needs for more than 10,000 Alaska Natives spread across a region of 235,000 square miles in Interior Alaska. 122 1st Avenue, Fairbanks, AK 99701 907.452.8251 www.tananachiefs.org Honorable Jennifer Granholm Secretary of Energy 1000 Independence Ave, SW Washington, DC 20585 September 18, 2023 RE: Support and Commitment for the project, “Evaluating Municipal Processes for Efficient Clean Energy Permitting” for funding from the FY2023 Energy Futures Grant Program Dear Secretary Granholm, On behalf of Tanana Chiefs Conference, I write to express our strong support for Alaska’s project submission to the Energy Futures Grant Program, “Evaluating Municipal Processes for Efficient Clean Energy Permitting project.” This project brings together a collaborative approach between partners, which we know will deliver benefits to participating communities and to the state. Together with the project sponsor, other agencies and local governments have signed on to be a part of this project that is intersection between clean energy, buildings, and transportation. The project’s innovation ecosystem includes state agencies, local governments, university experts, community-based organizations, and an energy transition accelerator. This intergovernmental and multi-sectoral effort leverages active grid resilience and clean energy project development. This project brings together statewide and regional partners to support and provide technical assistance to rural disadvantaged communities that will benefit from EFG support. Specifically, the Tanana Chiefs Conference has agreed to partner and be actively engaged with the project sponsor in this project, “Evaluating Municipal Processes for Efficient Clean Energy Permitting” through whatever means necessary. This could include assisting with workforce development, understanding and developing local codes and whatever other means necessary to assist our communities with the development of these important projects aimed at facilitating clean permitting. Tanana Chiefs Conference is proud to show its support for AEA in receiving this Energy Futures Grant and to be a part of this work that will benefit rural, disadvantaged communities across the state. Mahsi’ Choo. TANANA CHIEFS CONFERENCE Dave Messier Infrastructure Division Director Subregions Upper Kuskokwim McGrath Medfra Nikolai Takotna Telida Lower Yukon Anvik Grayling Holy Cross Shageluk Upper Tanana Dot Lake Eagle Healy Lake Northway Tanacross Tetlin Tok Yukon Flats Arctic Village Beaver Birch Creek Canyon Village Chalkyitsik Circle Fort Yukon Venetie Yukon Koyukuk Galena Huslia Kaltag Koyukuk Nulato Ruby Yukon Tanana Alatna Allakaket Evansville Fairbanks Hughes Lake Minchumina Manley Hot Springs Minto Nenana Rampart Stevens Village Tanana Key takeaway: Evaluating and improving the structure of municipal governance and financials that leads to clean energy development. Topline community benefits: Reduction in energy burdens and increased access to affordable clean energy. Prime recipient: Alaska Energy Authority Principal investigator: Alaska Municipal League Key Personnel: •Conner Erickson, Director of Planning, AEA •Nils Andreassen, Executive Director, Alaska Municipal League Requested DOE funds: $496,725 Project summary This project will improve governance and financial systems of 45 disadvantaged communities to identify and remove barriers to clean energy development within municipal code, permitting, or regulatory processes. AML will develop skills and capacity to effectively plan, implement, and manage and maintain energy projects. Project impact Strengthened local government financial and governance systems, enabling greater ability to deliver clean energy development and energy efficiency measures. Project goals: •45 municipalities committed to participating in project activities and cohort meetings that result in learning and development of governance (land-use, permitting, etc.) and financial recommendations, based on evaluation of existing processes; •financial analysis and tax implementation, where applicable, and production of a project funding timeline; •Implementation of a community benefits plan that focuses on workforce development opportunities and equity analysis related to reducing community energy burden. 193 high-cost communities that AEA serves. Evaluating Municipal Processes for Efficient Clean Energy Permitting OMB Number: 4040-0004 Expiration Date: 11/30/2025 * 1. Type of Submission: * 2. Type of Application: * 3. Date Received: 4. Applicant Identifier: 5a. Federal Entity Identifier: 5b. Federal Award Identifier: 6. Date Received by State: 7. State Application Identifier: * a. Legal Name: * b. Employer/Taxpayer Identification Number (EIN/TIN): * c. UEI: * Street1: Street2: * City: County/Parish: * State: Province: * Country: * Zip / Postal Code: Department Name: Division Name: Prefix: * First Name: Middle Name: * Last Name: Suffix: Title: Organizational Affiliation: * Telephone Number: Fax Number: * Email: * If Revision, select appropriate letter(s): * Other (Specify): State Use Only: 8. APPLICANT INFORMATION: d. Address: e. Organizational Unit: f. Name and contact information of person to be contacted on matters involving this application: Application for Federal Assistance SF-424 Preapplication Application Changed/Corrected Application New Continuation Revision F3N8ZSHJXUH8 2870-1538 Alaska Energy Authority 92-6001185 F3N8ZSHJXUH8 813 W Northern Lights Blvd Anchorage AK: Alaska USA: UNITED STATES 99503-2407 Conner Erickson 9077713025 cerickson@akenergyauthority.org DocuSign Envelope ID: F21427CA-6F54-45CE-86F9-F9C5C1330F40 * 9. Type of Applicant 1: Select Applicant Type: Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: * Other (specify): * 10. Name of Federal Agency: 11. Catalog of Federal Domestic Assistance Number: CFDA Title: * 12. Funding Opportunity Number: * Title: 13. Competition Identification Number: Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): * 15. Descriptive Title of Applicant's Project: Attach supporting documents as specified in agency instructions. Application for Federal Assistance SF-424 A: State Government Dept. of Energy - Office of State and Community Energy Prog 81.041 DE-FOA-0002870 Energy Future Grants (EFG) Creating a Community-Led Energy Future Evaluating Municipal Processes for Efficient Clean Energy Permitting View AttachmentsDelete AttachmentsAdd Attachments View AttachmentDelete AttachmentAdd Attachment DocuSign Envelope ID: F21427CA-6F54-45CE-86F9-F9C5C1330F40 * a. Federal * b. Applicant * c. State * d. Local * e. Other * f. Program Income * g. TOTAL . Prefix: * First Name: Middle Name: * Last Name: Suffix: * Title: * Telephone Number: * Email: Fax Number: * Signature of Authorized Representative:* Date Signed: 18. Estimated Funding ($): 21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 18, Section 1001) ** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions. Authorized Representative: Application for Federal Assistance SF-424 * a. Applicant Attach an additional list of Program/Project Congressional Districts if needed. * b. Program/Project * a. Start Date:* b. End Date: 16. Congressional Districts Of: 17. Proposed Project: AK-001 AK-001 Add Attachment Delete Attachment View Attachment 03/01/2024 09/01/2025 496,725.00 0.00 0.00 0.00 0.00 0.00 496,725.00 a. This application was made available to the State under the Executive Order 12372 Process for review on b. Program is subject to E.O. 12372 but has not been selected by the State for review. c. Program is not covered by E.O. 12372. Yes No Add Attachment Delete Attachment View Attachment ** I AGREE Curtis Thayer Executive Director 9077713009 cthayer@akenergyauthority.org * 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes," provide explanation in attachment.) * 19. Is Application Subject to Review By State Under Executive Order 12372 Process? If "Yes", provide explanation and attach DocuSign Envelope ID: F21427CA-6F54-45CE-86F9-F9C5C1330F40 11/3/2023 | 2:53:31 PM AKDT EERE T 540.132 01 Budget Justification (3 BPs)OMB Control Number: 1910-5162Expiration Date: 04/30/2025Award Number:11/3/2023Award Recipient:Alaska Energy Authority (award recipient)(May be award recipient or sub-recipient)Section A - Budget SummaryFederal Cost Share Total Costs Cost Share % Proposed Budget Period DatesBudget Period 1$496,725 $0 $496,725 0.00%3/01/2024 - 9/01/2025Budget Period 2$0 $0 $0 0.00%Budget Period 3$0 $0 $0 0.00%Total$496,725 $0 $496,725 0.00%Section B - Budget CategoriesCATEGORY Budget Period 1 Budget Period 2 Budget Period 3 Total Costs % of Project Comments (as needed)a. Personnel$40,173 $0 $0 $40,173 8.09%b. Fringe Benefits$0 $0 $0 $0 0.00%c. Travel$0 $0 $0 $0 0.00%d. Equipment$0 $0 $0 $0 0.00%e. Supplies$0 $0 $0 $0 0.00%f. ContractualSub-recipient$446,725 $0 $0 $446,725 89.93%Contractor$0 $0 $0 $0 0.00%FFRDC$0 $0 $0 $0 0.00%Total Contractual $446,725 $0 $0 $446,725 89.93%g. Construction$0 $0 $0 $0 0.00%h. Other Direct Costs$0 $0 $0 $0 0.00%Total Direct Costs$486,898 $0 $0 $486,898 98.02%i. Indirect Charges$9,827 $0 $0 $9,827 1.98%Total Costs$496,725 $0 $0 $496,725 100.00%Instructions and SummaryControl Number: 2870-1538Date of Submission:SUMMARY OF BUDGET CATEGORY COSTS PROPOSEDThe values in this summary table are from entries made in subsequent tabs, only blank white cells require data entryAdditional Explanation (as needed):Alaska Energy AuthorityForm submitted by: Please read the instructions on each worksheet tab before starting. If you have any questions, please ask your EERE contact! Do not modify this template or any cells or formulas! 1. If using this form for award application, negotiation, or budget revision, fill out the blank white cells in workbook tabs a. through j. with total project costs. 2. Blue colored cells contain instructions, headers, or summary calculations and should not be modified. Only blank white cells should be populated. 3. Enter detailed support for the project costs identified for each Category line item within each worksheet tab to autopopulate the summary tab. 4. The total budget presented on tabs a. through i. must include both Federal (DOE) and Non-Federal (cost share) portions.5. All costs incurred by the preparer's sub-recipients, contractors, and Federal Research and Development Centers (FFRDCs), should be entered only in section f. Contractual. All other sections are for the costs of the preparer only.6. Ensure all entered costs are allowable, allocable, and reasonable in accordance with the administrative requirements prescribed in 2 CFR 200, and the applicable cost principles for each entity type: FAR Part 31 for For-Profit entities; and 2 CFR Part 200 Subpart E - Cost Principles for all other non-federal entities. 7. Add rows as needed throughout tabs a. through j. If rows are added, formulas/calculations may need to be adjusted by the preparer. Do not add rows to the Instructions and Summary tab. If your project contains more than three budget periods, consult your EERE contact before adding additional budget period rows or columns. 8. ALL budget period cost categories are rounded to the nearest dollar.BURDEN DISCLOSURE STATEMENTPublic reporting burden for this collection of information is estimated to average 24 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Office of Information Resources Management Policy, Plans, and Oversight, AD-241-2 - GTN, Paperwork Reduction Project (1910-5162), U.S. Department of Energy 1000 Independence Avenue, S.W., Washington, DC 20585; and to the Office of Management and Budget, Paperwork Reduction Project (1910-5162), Washington, DC 20503. DocuSign Envelope ID: 4100ECBB-B0E7-426D-B60D-76542CE05B4B 11/3/2023 | 2:54:15 PM AKDT