Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
AEA Board Meeting Jan 5 2005
Alaska Industrial Development and Export AuthorityAID Alaska Energy Authority 10. AGENDA ALASKA ENERGY AUTHORITY Board of Directors January 5,2005 Anchorage and Juneau,Alaska CALL TO ORDER BOARD OF DIRECTORS ROLL CALL PUBLIC ROLL CALL PUBLIC COMMENTS PRIOR MINUTES -November 9,2004 OLD BUSINESS NEW BUSINESS A.AEA Regulation Changes,Resolution No.2005-01 DIRECTOR COMMENTS A.Director's Status Report of AEA Programs and Projects B.Next Meeting Date -Follows AIDEA Board meeting Dates BOARD COMMENTS ADJOURNMENT 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 *FAX 907 /269-3044 »Toll Free (ALASKA ONLY)888 /300-8534 *www.aidea.org Alaska Industrial Development and Export Authority ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS January 5,2005,@ 10:16 a.m. Anchorage and Juneau,Alaska 1.CALL TO ORDER Chairman Barry called the meeting of the Alaska Energy Authority to order on January 5,2005,at 10:16 a.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Mike Barry (Chairman/Public Member),Commissioner Edgar Blatchford (Department of Commerce,Community and Economic Development),and Commissioner Mike Barton (Department of Transportation and Public Facilities). Directors present in Juneau:Deputy Commissioner Tom Boutin (Designee for the Department of Revenue). 3.PUBLIC ROLL CALL Staff present in Anchorage:Ronald W.Miller (Executive Director),James A.McMillan (Deputy Director-Credit &Business Development),Valorie F.Walker (Deputy Director-Finance),Mike Harper (Deputy Director-Rural Energy),Leona Hakala (Loan Officer),Becky Gay (Project Manager),and Brenda J.Fuglestad (Administrative Manager). Others attending in Anchorage:Brian Bjorkquist and Mike Mitchell (Department of Law),and Jan Sieberts (Washington Capital). 4.PUBLIC COMMENTS There were no public comments. 5.PRIOR MINUTES The November 9,2004 board minutes were approved as presented. 6.OLD BUSINESS There was no old business. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 QN7 1 VEQ_2NNN @ FAY ANT /940 INAA e Tall Fran (AT ACA CONITV\822 f ANN AAW eunanss aides ara AEA Board Meeting January 5,2005 Meeting Minutes Page 2 7.NEW BUSINESS 7A.Resolution No.2005-01,A Resolution of the Alaska Energy Authority Relating to the Adoption of the Amendments to the Authority's Regulations Mr.Miller stated that the amended regulations implement changes with regard to portions of the administrative provisions,loan programs,grant programs and financial and technical assistance for energy systems,facilities,and equipment.He briefly reviewed the amended regulations for the Board.He referred the Board to their packet for detailed information. He stated staff received three written comments on the proposed regulations.The Legislative Affairs Agency included technical suggestions with their comments,which staff has incorporated into the amended regulations.The other two written comments were from citizens and were of a general nature speaking in favor of the Power Cost Equalization Program. Staff recommended approval of Resolution No.2005-01. MOTION:Commissioner Blatchford moved to approve Resolution No.2005-01. Seconded by Commissioner Barton.There being no discussion,the question was called. A roll call vote was taken and the motion passed with Messrs.Boutin,Barry,Barton, Blatchford,voting yea. 8A..DIRECTORS COMMENTS There were no directors comments. 8B.NEXT MEETING DATES Chairman Barry stated the next board meeting would be held January 21,2005 at 10:00 a.m.in conjunction with the AIDEA board meeting. 9.BOARD COMMENTS Chairman Barry stated the next meeting would address Energy Task Force issues particularly as it pertains to state owned railbelt energy assets.He requested staff contact the railbelt utilities and invite them to the next board meeting. 10.ADJOURNMENT Chairmar Barry adjourned the meeting at 10:25 a.m. a (i Rf Miller,Secretary Alaska industrial Development and Export Authority Alaska Energy Authority ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS November 9,2004,@ 2:35 p.m. Anchorage and Juneau,Alaska 1.CALL TO ORDER Chairman Barry called the meeting of the Alaska Energy Authority to order on November 9,2004, at 2:35 p.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Mike Barry (Chairman/Public Member),Commissioner Edgar Blatchford (Department of Community,Commerce and Economic Development),and Mr.John Winther (Public Member). Directors present in Juneau:Deputy Commissioner Tom Boutin (Designee for the Department of Revenue),and Commissioner Mike Barton (Department of Transportation and Public Facilities). 3.PUBLIC ROLL CALL Staff present in Anchorage:Ronald W.Miller (Executive Director),James A.McMillan (Deputy Director-Credit &Business Development),Mike Harper (Deputy Director-Rural Energy),Valorie Walker (Deputy Director-Finance),Shauna Howell (Administrative Assistant),Sara Fisher-Goad (Financial Analyst),Karl Reiche (Projects Development Manager),Becky Gay (Project Manager), Linda MacMillan (Accountant),Brenda Applegate (Accountant),and Bruce Tiedeman (RuralOutreachCoordinator). Others attending in Anchorage:Kathy Porterfield (KPMG)Michael O'Leary (Callan Associates), Brian Bjorkquist and Mike Mitchell (Department of Law),and Wanetta Ayers (S.W.Alaska Municipal Conference),and Margie Bauman (Journal of Commerce). Others attending in Juneau:Gary Bater (Department of Revenue). 4.|PUBLIC COMMENTS There were no public comments. 5.PRIOR MINUTES The January 26,2004,board minutes were approved as presented. 6.OLD BUSINESS 6A.Alaska Intertie TLS Issue 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 ¢FAX 907 /969-3044 ©Toll Free (Al ASKA ONIY)888 /300-8534 *www.aidea.org AEA Board Meeting November 9,2004 Meeting Minutes Page 2 Mr.Bjorkquist said that the Regulatory Commission of Alaska held hearings a couple of weeks ago related to the nineteen mile portion of what used to be part of the Alaska Intertie physically it is 19 miles and it is called the MEA TLS.Prior to July 1 of 2004,the Alaska Energy Authority under contract with MEA provided the right to cross over that 19 miles as part of the Alaska Intertie.MEA did not want to extend that contract and so as of July 1,2004 it was terminated and instead MEA contracts directly with the utilities that use the Alaska Intertie to allow electricity to go over that 19-mile stretch.Basically what you have with the Alaska Intertie is that there is approximately 5.5 miles of Alaska Intertie,19 miles of MEA transmission line and then the balance of the Alaska Intertie.All of it is necessary for power to move from Anchorage up to Fairbanks.The question before the RCA was continuing to allow the joint use and interconnection,which is basically allowing that 19 miles to be used so that energy could flow either north or south,most of it flows north over the Alaska Intertie.In the hearings themselves there is no objection to the continued use of the 19 miles so there is no indication that the Alaska Intertie would stop being used to transmit power.The only issues in dispute between the utilities are the terms and conditions that the 19 miles can be used for.One of the issues is whether the line should continue to be operated at 138kv or reduced to 115kv and then in addition to that there is disputes related to how much Matanuska Electric should be paid for power being transferred over that.Those are issues that were presented to the RCA ina hearing and it is now pending before the RCA for decision so they will decide terms and conditions for the continued use.MEA nor any of the other utilities objected to the continued use so it is just a matter of what terms and conditions they would continue to be used.Currently the right to use the line extends through the end of this year and every indication is that RCA will make its decision prior to that time so the use can continue. In response to Board questions,Mr.Bjorkquist said if the RCA decides that the use should not continue then the rest of the intertie for the most part becomes unusable.There could be some uses for it but the primary current use would necessarily change because the primary current use of electricity is transmitted from Anchorage to Fairbanks.There are some other uses of the transmission line but they are very small in comparison to the transmission of power north to Fairbanks. 7C.Financial Statements/Audit Presentation Ms.Porterfield,Managing Partner with KPMG LLP,summarized the audited financial statements and letter to the Board. She said that because the Energy Authority has significant funding from the Federal Government through the Denali Commission there are additional audit requirements and KPMG has issued reports that the Federal Government requires regarding your compliance with grants.KPMG has also issued unqualified opinions on the Authority's compliance with the provisions of its federal grants agreements,which is positive. She said the purpose of the audit is for KPMG to gain reasonable assurance that the financial statements are free of material misstatement.KPMG conducted appropriate audit procedures and has concluded that the financial statements are fairly stated in all material respects in accordance with generally accepted accounting principles,resulting in an unqualified or a clean opinion.KPMG obtained reasonable assurance during the audit that the financial statements are free of material misstatement. She said the Authority has very good accounting records and it was not necessary to propose any significant audit adjustments.The Authority has an effective system of internal control in place. AEA Board Meeting November 9,2004 Meeting Minutes Page 3 In response to Board questions,Ms.Porterfield said her understanding is that nothing is being studied at this time as to whether GASB would require AIDEA to mark the loan portfolio to the market. 7B.AEA Regulation Changes Mr.Miller stated that the Authority has issued a public notice that we have proposed to adopt regulatory changes to the AEA regulations with a public hearing set for December 2,2004 and the deadline for submission of written comments on December 17,2004.He referred the Board to their packets for detailed information. 7C.Rural Transmission Lines and other Property He said that when the State Energy Policy Task Force was created and under Mr.Barry's direction that AIDEA and AEA should consider divesting itself of energy assets.Staff started searching through all of the AEA books and records and discovered some rural transmission lines that were actually built by the former Alaska Power Authority and listed as being owned bytheAlaskaEnergyAuthority.He referred the Board to their packets for a list of the assets owned by AEA. Chairman Barry stated that it his understanding that one of the transmission lines is utilized by Alaska Power and Telephone.He said that he is a director of AP&T and is on record that he has a potential ethics conflict.Chairman Barry recused himself from any discussions related to that subject. Mr.Bjorkquist stated that it is his understanding that the Chairman is recusing himself in large part based on advice that was provided by the Ethics Attorney in response to a disclosure that you made some time ago.This was the process that was recommended by the Attorney. Chairman Barry affirmed that statement. Executive Session Mr.Bjorkquist stated that there is proprietary information,strategy,and financial matters to discuss related to potential legislation for AEA.Under the open meetings act a body,such as the AEA Board,can go into executive session for matters the immediate knowledge of which would clearly have an adverse affect on the finances of AEA.The appropriate procedure for doing that is to have a Board member make a motion to go into executive session for that purpose and to vote on __that motion. MOTION:Mr.John Winther moved to go into executive session to discuss proprietary information,strategy,and financial matters related potential legislation for AEA. Seconded by Commissioner Blatchford.There being no discussion,the question was called.A roll call vote was taken and the motion passed with Messrs.Barry,Boutin, Winther,Barton,and Blatchford voting yea. EXECUTIVE SESSION -2:45 p.m. The Board reconvened its regular meeting at 3:00 p.m. The Board did not taken any formal action on the matters discussed while in Executive Session. AEA Board Meeting November 9,2004 Meeting Minutes Page 4 _Roll call was taken and a quorum was established.Chairman Barry stated that due to his ethics disclosure earlier in the meeting and since the subject matter of the Executive Session was related to that matter he did not participate in the Executive Session. 8A.DIRECTORS COMMENTS Mr.Miller referred the Board to their packets on the following information: e Director's Status Report of AEA Programs and Projects e Elder's and Youth Conference for the Alaska Federation of Natives 8B.Next Board Meeting Date The Board would be polled as to the next meeting date. 9.BOARD COMMENTS Chairman Barry stated that in the recent past there has been concern in Rural Alaska about the impact of rising energy prices on diesel fuel.As such,more attention has been paid to the administration of the Bulk Fuel Program and he passed along to staff the appreciation the Board and the Administration has for the great job that is being done with this program. 10.ADJOURNMENT Chairman Barry adjourned the meeting at 3:03 p.m. Ron Miller,Secretary Alaska industrial Development and Export Authority Al ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS January 5,2005,@ 10:00 a.m. Anchorage and Juneau,Alaska Excerpt from Unapproved Minutes 7.NEW BUSINESS 7A.Resolution No.2005-01,A Resolution of the Alaska Energy Authority Relating to the Adoption of the Amendments to the Authority's Regulations Mr.Miller stated that the amended regulations implement changes with regard to portions of the administrative provisions,loan programs,grant programs and financial and technical assistance for energy systems,facilities,and equipment.He briefly reviewed the amended regulations for the Board.He referred the Board to their packet for detailed information. He stated staff received three written comments on the proposed regulations.The Legislative Affairs Agency included technical suggestions with their comments,which staff has incorporated into the amended regulations.The other two written comments were from citizens and were of a general nature speaking in favor of the Power Cost Equalization Program. Staff recommended approval of Resolution No.2005-01. MOTION:Commissioner Blatchford moved to approve Resolution No.2005-01. Seconded by Commissioner Barton.There being no discussion,the question was called. A roll call vote was taken and the motion passed with Messrs.Boutin,Barry,Barton, Blatchford,voting yea. i FI if iAW.I Ron Miller,Secretary wv ¥ 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 e FAX 907 /269-3044 e Toll Free (Al ASKA ONIY)888 /ANDREA ee ananasaidosa ara Aiaska Industrial Development and Export Authority AI MEMORANDUM TO:Board of Directors Alaska Energy Authority FROM:Ron Miller Executive Director DATE:January 5,2005 SUBJECT:-Resolution No.2005-01 Adoption of AEA Regulations Resolution No.2005-01 adopts the amended regulations attached as Exhibit A to the resolution.These amended regulations revise Alaska Administrative Code Title 3, chapter 105 (administrative and other provisions),chapter 106 (loan programs),and chapter 107 (grant programs),and also include a new chapter 108 dealing with financial and technical assistance for energy systems,facilities,and equipment. AEA widely distributed notice of the proposed revisions.Notice of the proposed regulations was published in several Alaska newspapers in late October and early November.AEA also mailed notice to all communities and utilities that receive Power Cost Equalization (PCE);provided notice to legislators,and to the Denali Commission; and posted the notice on AEA's website and on the State of Alaska Online Public Notice System.A public hearing was held on the proposed regulations on December 2,2004. The public comment period closed on December 17,2004. AEA received a total of three comments on the proposed regulations (all written),one from the Legislative Affairs Agency and two from citizens (see attached comments).The Legislative Affairs Agency comments were technical suggestions,and the draft regulations have been revised accordingly.The citizens'comments were general, speaking in favor of PCE generally and in favor of PCE for businesses.No revisions are proposed in response to these comments.With respect to the citizen's comment regarding PCE for businesses,please be aware that the PCE statutes limit PCE assistance to local community facilities and residential customers.The proposed revisions,which define "residential customer”to include a customer who engages in commercial activity at the customer's residence,are consistent with these comments and with AEA's statutory authority. Staff recommends approval of Resolution No.2005-01. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503ON7/DAQ2NNN ¢FAY ANT /DAQ_2ANAA «TAL Cenn (AL ACIA TARIEVY O00 SIAN OCDA wcemsmsimtidan nae Kes KF Ce1g Of Om Ve CEz.raid ]Oe Fe% ;Cid bisf2SaCecees;;OSHeehk FEES /2Geey12-358 Bo<4ILUYScypoeFoPipAASBhiecReyAaliace7t yy ee rofe,p ew.A3&CEO WeoT Aho sepeewe.else DHS than?pt Mee 'c)SRR Let50MEASLES .se -bel,APPUS The pe Bor. WISE fd pty fe OAT aanITHfsa fer Kye a EAR= PASCOeg Fm ae a +e ;ve BF Ty esy AW FA;Ome AAR _ OR P4292 ANT Leos eo peo!Fe "7 go Ze &ge a a ota fe Bet a ane foe qo:_Pend «'Fe OS fer €ME Ri pho F Mteesipic.Fram Dre >oom a ae it pm GbCeeAKESPORES evs hi eaiy Oem pin FASTA 'C ALA!FLUE fhe 2 bee eee me ete a .aS AR A VO MOL ST we EES Le TO al OTES Atte ¢p PRhtOatiPRyflASTNenebtceaaCometoeCOMAITBETeeeethe_.:;-.-PEO ID SA ABE ABLE FI Mel LORIE En pS ETE PL PORE DEPP3TS Kho.Powe Doo...-tye 2 mes es a ate .:LR ESE PLR ae TS PEO PS OE HR Chak -ne PS .2MeoeweSeceimRicTy435ct, ,DP ge en bys meeANCEeeeOA YY FY Te ytoCAOSVY'>Pe ye..ey y s 122,;LS F/Sd4 -soe .Chats Co Tete.67,FP EYES fur eho Meer Per Becy Zi gay'Dae Meee"?,Goke Heo Pee i Le SafS$FERED ay MRE ¢Tyce IVES , ' oom ar ao:-OC ATR ES SEAT.PRS PEC OPA oo ee,eam,: ,;CO OPP Sere PSO CELASED a oe oe ae ee ey,eT fT7”foe <CIN ae his ru z !et yg gee ee-)AER GAS Obs SK Tete Ver a Pe7 EGC hig geLOLTVES(ECR Tees 9 feos 5OS(ECR Riey4 DEPP6 PCE ad Bue siteZ3 SeF5y O/Ty FERCES Peck Eps »)PFGE8OntTHEProtonoomsonoeyeet_coe Te,FOSConeap,fFAT ;CLS a KAT CARPELIGLO PIES Chawicz GP.LF ree carrie a CG .TAPER THER OOD Pre:=rye a OES Ga Peacuit'(CBM TAHT FORTEAS BP THE LENT BEE3 Dun.AT HE Oowes as a-CW ELEY Conse AGPICONTCORSaCEROm-_,Mee OT .ype "=oo _'on .ey toeMORESFLCelFHECOMOFOPERATIWEOvePRERMNALSbePFO ABODE MOE FB ALT EOSfCMEEDDEORSALDctrgen$,be MTG LD Joa VOPR FEES CERST FY bintS AbD Puli Qs KEE Pend aDMEHIERS,tithe F2ves STEELS joie +Biel STAHL FRE CO8 FT BR ET ta 7 CS ALE foe Heed.eK ae Dé =AW 529 Aili ELEz Tee Bett 2k APA SE BMIS Fase F&En ry NEerns tYEO,ToPmy THe SAK -PIO Aes,Bal PIS wAECSS OF Cour Hae cov SON KET?°a wie thre Ph Bote SanePreussSLECTLIC6YRUNSPOT SGfe7 "-..ane ae :Fe PEGS.CAE y SRV ED 7 CR BARAESHET Pexsen's)HAS OT RANGES GO yesrseag¢=foCAR PAREE TIBES » 5 bhi«ES (ME FE PATIL Porwi Tees FFACE AB AT BREVILLE TITIES Cai Per Aairie',Ther aayLECCCopii,THEY HALL Ke [cE Te Cat COSTS And HSS pT aw Te Tre”Ca sTemcZe,AE 1 GET RCERTANW oy,EF Ceosrs fEEO BEPER SLES Go aP THEY Aer Ceeete Fa vartiiecr MtoeIcyynnles,[PTW CST ISG PRACT AROS EXPIREES AAD EXPENSES CHE errr&"¥-.an --ne an7HEMTVere,Cambie (HEY e:be PeuOle THAR REET,CUE TAGEaehedBettCARTERS,Bac Cela OF IAGO A PIP Lin ax7bCarCessAvo PASC PRL LY - iS Fkrelets AAG Saet Te kun (HeBAUINGS/CesT 5 Féyt_,-Te OT fa woJornfrtrnkeAfFoe a PBR STO PAE ETL Tete ABD PAL YERRS ACO PRe Cee RAN Fawn z mae _Aerie Cota we beLTBASTSFeePOLSTEmeSIG.MEE OE WO Oe bay ee . 24 ot aT'_oss >pie fn A OP rot peere,CESTs bee!CAT ap CPB cP Be 4 _TkFPuELSURUHREEWASABcuTpe2bsinfheeTfan«renee BetAtse TAK- :-.Pe f sg f ,.es Cladhrfl Ee ea cSPeeldaccrVReeKEKKPTa23afRet(MY Nampans ALE atT Ht aig TherhibntieySAYS-Kiteabs Ak BA THE COLE PTGS RET)AymeoeAEDFeSLYfoZSBeaes4S ra PT DISS y fEIUD2ndCasings,lo fery>fro ,Cc v ia v4 tag y=meee”Sax -fay fem ee ee So?"Riser (1 FareadBURCARESL0AS -,if -leet Ded SAICRE G Caen cans.te wm,=Spat wt fee TG gfe Part ee :-ai °"ae espoteFeeANECEDfePOOCONEteDass.ABO Keo th b COL,Con Pe We PT SessagesyafeteTPDyasTELEKEMTEAOMTS..."pet ..PREEITS ED TO TT ee in HELP RUZEP COT D0 Gxt BIRT§ES CEP HA AY".AB CENCE Tyne OF VP esis ed P oe eee ty owe T-fUAaYyCertbabTIEidARé ;;Pe a cerae ree ee +YAtiCortona/Ts yO TAS CSTE mrt SEU OOP oS |OTTSPPelateOe«.: -.pm pee Prk OF gk te[files HS loa s on oie Fee shee ree 5 so¢°on A I aoeee PA ok,hott tihe Té THER [ee Com Ss mele oaftefeeaWABCSteESETStDPIPETRCctt(Eta SHES .ie IU POORPote=CTpACSPPCesare+HSé SW CREEL'4 /befEeher 6ams A gsfeetoadEASANE. Becky Gay "rom:Good River B B [glacier@glacier-bay.us]ent:Friday,December 17,2004 3:59 PM To:Becky Gay Cc:Mike Harper Subject:PCE for home-based business Dear Becky Gay and Michael Harper, I just received notice that you are taking comments:(deadline is today)for home-based business eligibility for PCE.It is unfortunate that I did not receive notice that this was contemplated with enough time to write a well reasoned letter.Since it will affect many small business owners,it seems appropriate that we be notified.A letter to everyone with a business license in the state would not be difficult to send.A notice in my electric bill.would have alerted me to this change.Here are my immediate thoughts: In Alaska,the majority of rural tourist-oriented businesses are run by local folks out of their homes.My B&B is operated for less than three months in the summer,and I do not make much money from it.The independent tourists who are my guests support several other local entreprenuers as well -flightseeing,kayaking,whale-watching,car rental,sailing, walking tours,dog sledding...to name a few.Now that Gustavus is a city,we all pay sales tax,which keeps the city in funds too.We have a hard time competing with the large companies that are owned by outsiders,who have economies of scale that we cannot match.I think we give a more comprehensive service,but most people base their travel decisions on overall price.I believe that eliminating the PCE subsidy will mean that we lose out to the larger service providers. That money does not stay in the community -sometimes not even in the state. .applaud the suggestion that small energy users continue to qualify for PCE.Economic iiversity is important for the rural areas of Alaska,where there is a limited economic pase.After all,we can't go out and get jobs in the community -but there is much to offer to bring outside capital into the community. Thank you for your consideration, Sandy Burd Good River Bed &Breakfast Box 37 Gustavus,AK 99826 phone 907-697-2241 fax 907-697-2269 LEGAL SERVICES DIVISION OF LEGAL AND RESEARCH SERVICES LEGISLATIVE AFFAIRS AGENCY (907)465-3867 or 465-2450 STATE OF ALASKA State Capitol FAX (907)465-2029 Juneau,Alaska 99801-1182 Mail Stop 3101 Deliveries to:129 6th St.,Rm.329 MEMORANDUM November 10,2004 SUBJECT:Proposed Regulations for Loan Programs of the Alaska Energy Authority (3 AAC 106) TO:Senator Gene Therriault,Senate President &ARRC Chair Representative Pete Kott,Speaker of the House Deborah Behr,Dept.of Law Becky Gay/AIDEA/AEA FROM:Ter LauterbachLegislativeCounsel Wry Under AS 24.20.105 (enacted by ch.164,SLA 2004),I have reviewed proposed .regulations that would implement ch.36,SLA 2004,relating to the Alaska Energy Authority's loan programs.Under AS 24.20.105(e),I am supposed to inform you if I determine that a provision of a proposed regulation fails to be consistent with the applicable statutes being implemented by the regulation. In my opinion,there are two places where the proposed regulations are inconsistent with the applicable statutes because they contain a reference to a statute that was repealed in ch.36,SLA 2004.The obsolete reference in both instances is to AS 42.45.060,which was repealed in sec.11,ch.36,SLA 2004. The agency has agreed with my assessment that these references are obsolete,and it intends to correct the references before the final regulations are adopted.However,it is my understanding that AS 24.20.105(e)still requires me to notify you of my determination. The obsolete references to AS 42.45.060 are in 3 AAC 106.110(e)(3)and 3 AAC 106.220(c)(3)(B),copies attached.Please let me know if you require more information on this matter. TML:med 04-624 med Enclosure Register ;2004 ALASKA ENERGY AUTHORITY 3 AAC 105 is amended by adding a new section to read: 3 AAC 105.020,Administration of assistance from other sources.The authority may apply for,accept,and administer funding and other assistance from the United States,other agencies of the state,municipalities,and private sources for the construction,financing, operation,and maintenance of power projects and for bulk fuel,waste energy,energy conservation,energy efficiency,and alternative energy facilities,equipment,or programs that are consistent with the authority's statutory authority and programs.It may accept conditions placed on federal and other state assistance that do not conflict with the authority's statutory authority and programs.(Eff...//_,Register___) Authority:AS 44.83.080 3 AAC 106.110(d),(e),(f),and (g)are amended to read: (d)A loan committee comprised of authority staff designated by the executive director of the authority shall make the final decision of the authority on applications for loans up to and including $2 million.For loans in excess of $2 million,the board of directors of the authority,upon recommendation by the loan committee,shall make the final decision of the authoritv on applications for loans,except for loans that require legislative approval under AS 42.45.010(j).The final decision of the authority to approve or disapprove an application for a loan will be in the form of a written determination that contains the findings required by this section,and any other comments the authority considers appropriate.The authority will transmit copies of the determination to the applicant [AND TO THE LOAN COMMITTEE]. (e)If the authority approves the loan application,the authority will deliver a copy of its decision to the applicant [LOAN COMMITTEE]within 30 days of making its decision.The decision will: (1)indicate whether there are conditions that the applicant must satisfy before the authority will make the loan to the applicant; (2)include proposed loan terms;and (3)include a statement or statements,-as applicable,describing the process of further reviews or approvals required under@s 42.45.060. (f)If the authority approves an application,and after approval of the loan by the [LOAN COMMITTEE OR]legislature to the extent required under AS 42.45.010(j)[AS 42.45.060],the authority will enter into a loan agreement with the applicant under conditions complying with 3 AAC 106.120,but only after receiving a certified copy of the resolution or other official action taken by the applicant's governing body agreeing to the terms of the loan. g)It is the responsibility of the applicant and not of the authority to obtain the approval by the legislature if approval of the applicant's loan is required under AS 42.45.010(@)[AS 42.45.060(g)].(Eff.2/16/96,Register 137;am __/__/,Register ) Authority:AS 42.45.010 AS 42.45.060 AS 44.83.080 3 AAC 106.220(c),(d),and (e)are amended to read: (c)If the authority approves the loan application,the authority will prepare a written decision and deliver a copy of its decision to the applicant [LOAN COMMITTEE,AS APPLICABLE UNDER AS 42.45.060].The decision will: (1)indicate whether there are conditions that the applicant must satisfy before the authority will make the loan to the applicant; (2)include proposed loan terms;and (3)include a statement or statements,as applicable,indicating the (A)loan application is subject to review by the loan advisory committee in accordance with AS 42.45.030 and 3 AAC 106.230;Lee (B)process of further review or approval required ele a8.4245060,J [(d)IT IS THE RESPONSIBILITY OF THE APPLICANT AND NOT OF THE AUTHORITY TO OBTAIN THE APPROVAL BY THE LEGISLATURE IF APPROVAL OF THE APPLICANT'S LOAN IS REQUIRED UNDER AS 42.45.060(g).] (e)If the authority approves an application,[AND IF APPLICABLE,THE LOAN IS ALSO APPROVED BY THE LOAN COMMITTEE OR THE LEGISLATURE UNDER AS 42.45.060,]the authority will prepare a loan agreement and other appropriate documentation to reflect the terms of the loan sufficient,as determined by the authority to assure repayment of the loan in accordance with its terms,and to provide for other matters the authority considers appropriate in connection with the loan.The authority will not disburse the proceeds of the loan to the borrower until the borrower has entered into the loan agreement with the authority.(Eff. 2/16/96,Register 137;am__/_/__,Register___) Authority:AS 42.45.020 AS 42.45.060 AS 44.83.080 AS 42.45.020 3 AAC 106.300(3)is amended to read: ALASKA ENERGY AUTHORITY RESOLUTION NO.2005-01 RESOLUTION OF THE ALASKA ENERGY AUTHORITY RELATING TO THE ADOPTION OF AMENDMENTS TO THE AUTHORITY'S REGULATIONS WHEREAS,pursuant to AS 44.83.080 the Alaska Energy Authority (the "Authority”)may adopt regulations to carry out the purposes of AS 44.83 and AS 42.45; WHEREAS,staff of the Authority has proposed that the Authority's regulations be comprehensively amended as set forth in Exhibit "A”attached to this resolution (the "Regulation Amendments”); WHEREAS,the Authority has complied with all of the provisions of AS 44.62 concerning the adoption by the Authority of regulations; WHEREAS,the staff of the Authority has reported to this board the nature and content of the comments received from the public with respect to the Regulation Amendments and the Authority has considered these comments;and . WHEREAS,it is in the best interest of the Authority that the Regulation Amendments be adopted. NOW THEREFORE,BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS FOLLOWS: Section 1.In accordance with AS 44.83.080 the Authority hereby adopts the Regulation Amendments. Section 2.The Executive Director of the Authority is hereby authorized to take such actions necessary to finalize the regulation amendments contemplated in this resolution including,without limitation,executing an adoption order on behalf of the Authority and taking such actions as may be necessary to facilitate the filing of the amendments with the office of the Lieutenant Governor. DATED at Anchorage,Alaska,this 5"day of January,2005. Chairman (SEAL) ATTEST Secretary H:\Board of Directors\Resolutions and Memos\BOD Resolution AEA Reg adoption.doc EXHIBIT A Register ,2004 ALASKA ENERGY AUTHORITY 3 AAC 105 is amended by adding a new section to read: 3 AAC 105.020.Administration of assistance from other sources.The authority may apply for,accept,and administer funding and other assistance from the United States,other agencies of the state,municipalities,and private sources for the construction,financing, operation,and maintenance of power projects and for bulk fuel,waste energy,energy conservation,energy efficiency,and alternative energy facilities,equipment,or programs that are consistent with the authority's statutory authority and programs.It may accept conditions placed on federal and other state assistance that do not conflict with the authority's statutory authority and programs.(Eff...//_,Register___) Authority:AS 44.83.080 3 AAC 106.110(d),(e),(f),and (g)are amended to read: (d)A loan committee comprised of authority staff designated by the executive director of the authority shall make the final decision of the authority on applications for loans up to and including $2 million.For loans in excess of $2 million,the board of directors of the authority,upon recommendation by the loan committee,shall make the final decision of the authority on applications for loans,except for loans that require legislative approval under AS 42.45.010(j).The final decision of the authority to approve or disapprove an application for a loan will be in the form of a written determination that contains the findings required by this section,and any other comments the authority considers appropriate.The authority will transmit copies of the determination to the applicant [AND TO THE LOAN COMMITTEE]. (e)If the authority approves the loan application,the authority will deliver a copy of its decision to the applicant [LOAN COMMITTEE]within 30 days of making its decision.The decision will: (1)indicate whether there are conditions that the applicant must satisfy before the authority will make the loan to the applicant;and (2)include proposed loan terms.[;AND (3)INCLUDE A STATEMENT OR STATEMENTS,AS APPLICABLE, DESCRIBING THE PROCESS OF FURTHER REVIEWS OR APPROVALS REQUIRED UNDER AS 42.45.060.] (f)If the authority approves an application,and after approval of the loan by the [LOAN COMMITTEE OR}legislature to the extent required under AS 42.45.010(})[AS 42.45.060],the authority will enter into a loan agreement with the applicant under conditions complying with 3 AAC 106.120,but only after receiving a certified copy of the resolution or other official action taken by the applicant's governing body agreeing to the terms of the loan. (g)It is the responsibility of the applicant and not of the authority to obtain the approval by the legislature if approval of the applicant's loan is required under AS 42.45.010(j)[AS 42.45.060(g)}.(Eff.2/16/96,Register 137;am __/__/,Register ) Authority:AS 42.45.010 AS 42.45.060 AS 44.83.080 3 AAC 106.220(c),(d),and (e)are amended to read: (c)If the authority approves the loan application,the authority will prepare a written decision and deliver a copy of its decision to the applicant [LOAN COMMITTEE,AS APPLICABLE UNDER AS 42.45.060}.The decision will: (1)indicate whether there are conditions that the applicant must satisfy before the authority will make the loan to the applicant;and (2)include proposed loan terms.|[; (3)INCLUDE A STATEMENT OR STATEMENTS,AS APPLICABLE, INDICATING THE (A)LOAN APPLICATION IS SUBJECT TO REVIEW BY THE LOAN ADVISORY COMMITTEE IN ACCORDANCE WITH AS 42.45.030 AND 3 AAC 106.230; (B)PROCESS OF FURTHER REVIEW AND APPROVAL REQUIRED UNDER AS 42.45.060.| (d)IT IS THE RESPONSIBILITY OF THE APPLICANT AND NOT OF THE AUTHORITY TO OBTAIN THE APPROVAL BY THE LEGISLATURE IF APPROVAL OF THE APPLICANT'S LOAN IS REQUIRED UNDER AS 42.45.060(g).] (e)If the authority approves an application,[AND IF APPLICABLE,THE LOAN IS ALSO APPROVED BY THE LOAN COMMITTEE OR THE LEGISLATURE UNDER AS 42.45.060,]the authority will prepare a loan agreement and other appropriate documentation to reflect the terms of the loan sufficient,as determined by the authority to assure repayment of the Joan in accordance with its terms,and to provide for other matters the authority considers appropriate in connection with the loan.The authority will not disburse the proceeds of the loan to the borrower until the borrower has entered into the loan agreement with the authority.(Eff. 2/16/96,Register 137;am__/_ss /_-Ssi«,Register___) Authority:AS 42.45.020 AS 42.45.060 AS 44.83.080 AS 42.45.020 3 AAC 106.300(3)is amended to read: (3)written endorsement from the governing body of the community,where the applicant is a person generating power or selling fuel_in the community [FOR AN INDIVIDUAL APPLYING FOR A BULK FUEL LOAN ON BEHALF OF THE COMMUNITY]; (Eff.2/16/96,Register 137;am __/__/,Register ) Authority:AS 42.45.250 AS 44.83.080 3 AAC 106.310(1)and (4)are amended to read: (1)an applicant must intend to use the loan for purchase of fuel for an emergency or annual or semiannual supply,including the necessary costs of transporting the fuel; (4)the amount of the loan,added to the amounts of all other bulk fuel loans to the same borrower in the same fiscal year,may not exceed $300,000 [$100,000].(Eff.2/16/96,Register 137;am /__/,Register___). Authority:AS 42.45.250 AS 44.83.080 3 AAC 107.270(a)is amended by adding a new paragraph to read: (6)"residential customer'?means a customer who resides at the location receiving electrical service:the rules for determining residence of a voter under AS 15.05.020 shall apply in determining a customer's residence; a customer who engages in commercial activity at the customer's residence is considered a residential customer; (Eff.2/6/96,Register 137;am __//,Register ) Authority:AS 42.45.100 AS 42.45.130 AS 42.45.160 AS 42.45.110 AS 42.45.140 AS 42.45.170 AS 42.45.120 AS 42.45.150 AS 44.83.080 3 AAC is amended by adding a new chapter to read: Chapter 108.Financial and Technical Assistance for Energy Systems,Facilities,and Equipment. Article 1.Bulk Fuel Facility and Power System Upgrades 3 AAC 108.100.Bulk fuel facility and power system upgrade assistance provided by the authority.Subject to appropriation and availability of funds,the authority may provide financial assistance and technical assistance,including construction management and training,to recipients eligible for bulk fuel storage facility and power system upgrade assistance. 3 AAC 108.110.Eligibility for and authority prioritization of assistance.(a) Utilities,municipalities,school districts,unincorporated villages,community associations, Alaska Native corporations,federally recognized tribes,and other persons providing power or fuel to the public in one or more communities are eligible for assistance under 3 AAC 108.100 - 108.190. (b)To prioritize its assistance for bulk fuel facility upgrades,the authority shall evaluate and rank deficiencies and needs for upgraded bulk community fuel storage facilities in each Alaska community with a population of at least 20 but less than 2,000 that is not predominantly a military or industrial site and that: (i)has significant bulk fuel storage needs;and (ii)is either located off an interconnected road system or,if located on an interconnected road system,is more than 20 miles from Anchorage,Fairbanks,Juneau, Kenai,Ketchikan,Kodiak,Nikiski,Sitka,Soldotna,Valdez,or another major fuel distribution center. (c)To prioritize its assistance for power system upgrades,the authority shall evaluate and rank deficiencies and needs for upgraded community power generation and distribution systems in each Alaska community with a population of at least 20 but less than 2,000 that is not predominantly a military or industrial site and that: (i)has a central community power system;and (ii)is not connected to the Railbelt (Homer-Seward-Anchorage-Fairbanks), Four Dam Pool (Glenallen-Valdez,Wran gell-Petersburg,Ketchikan, Kodiak),or Juneau power systems. (d)The authority may reevaluate and modify its evaluations and rankings based on changed assumptions or new information.The authority shall publish and periodically update its rankings on its internet web site. (e)In providing assistance under 3 AAC 108.100 -108.190,the authority shall give priority to those communities found in the authority's rankings under (b)and (c)of this section to have the greatest needs for assistance.The authority may adjust priorities and deviate from its prioritization based on requirements of federal or state agencies or other entities providing funding or based on the authority's determination of a recipient's readiness to proceed with the project,the community's ability to meet conditions for assistance under 3 AAC 108.220,or cost- effectiveness factors that warrant deviating from the authority's prioritization.(Eff. /__/_,Register__) Authority:AS 42.45.400 44.83.080 3 AAC 108.120.Conditions to receiving assistance.As a condition to providing assistance under 3 AAC 108.100 108.190,the authority may require the recipient to: (1)execute a grant agreement prepared by the authority that describes the terms and conditions of the assistance; (2)execute a waiver of sovereign immunity; (3)provide a business plan or other documentation demonstrating to the satisfaction of the authority the recipient's ability to operate and maintain the facility for the public benefit for its useful life and to replace the facility at the end of its useful life; (4)provide matching funds,property,services or another form of contribution to the project; (5)establish that the recipient has title to or a leasehold interest in the site on which the facility is located;and (6)abide by other terms and conditions that the authority determines are needed to maximize the public benefit from the assistance provided under this chapter.(Eff...// Register__) Authority:AS 42.45.400 44.83.080 3 AAC 108.130.Phased approach to assistance.The authority may employ a phased approach to providing assistance under 3 AAC 108.100 -108.190,including providing assistance for a conceptual design or other planning documents to determine whether to provide further assistance.(Eff./--/ _-_-s«,Register___) Authority:AS 42.45.400 44.83.080 Article 2.Circuit Rider and Electrical Emergencies Programs 3 AAC 108.200.Purpose of circuit rider and electrical emergencies programs.(a) The purpose of the circuit rider program is to assist eligible utilities to improve the efficiency, safety and reliability of power systems and reduce the risk and severity of emergency conditions or emergency disruptions in the operation of community power systems,by providing training, consultation,on-site assistance with maintenance and minor repairs,and other technical assistance. (b)The purpose of the electrical emergencies program is to assist eligible utilities respond to emergencies that affect their ability to reliably generate and transmit power,by providing financial or technical assistance in response to emergency conditions or emergency disruptions in the operation of community power systems.(Eff./__/ _,Register___) Authority;AS 42.45.400 44.83.080 3 AAC 108.210.Circuit rider assistance provided by the authority.Circuit rider assistance may include one or more visits to the community whose utility is selected to receive assistance or it may be limited to assistance provided telephonically or by electronic mail.The circuit rider assistance to be provided will be determined based on the authority's assessment,in consultation with the utility,of the utility's major needs and the authority's ability to provide assistance for those needs.Assistance may include,without limitation: (1)review of and recommendations to improve the system condition and system operations and maintenance; (2)training utility personnel;and (3)performing,or assisting utility personnel in their performance of,minor maintenance and repairs.(Eff.../ -/_ --s«,Register___) Authority:AS 42.45.400 44.83.080 3 AAC 108.220.Eligibility and selection for circuit rider assistance.(a)Subject to appropriation and available funding,utilities in communities with population of less than 2,000 located off the interconnected road system are eligible for circuit rider assistance. (b)At the beginning of each fiscal year,the authority shall identify the communities to receive priority for circuit rider assistance that year based on power system deficiencies identified in the evaluation and prioritization of communities needs under 3 AAC 108.120,and also taking into account the risk of catastrophic system failure,the utility's management practices and operations and maintenance practices,the utility's ability to obtain and pay for assistance from other sources,and how recently the utility received circuit rider assistance from the authority. (c)The authority shall respond to requests for circuit rider assistance from eligible utilities taking into account the prioritization under (b)of this section,available funding,and the authority's ability to efficiently administer circuit rider assistance,including its ability to provide assistance in multiple communities during one circuit rider trip.(Eff.___/__/,Register -_-) Authority:AS 42.45.400 44.83.080 3 AAC 108.230.Electrical emergency assistance provided by the authority.(a)In the event a utility in a community with population of less than 2,000 located off the interconnected road system suffers an electrical emergency,the authority will,subject to appropriation and availability of funds,assist the utility in responding to the emergency and recovering its ability to generate and transmit power to its customers in a manner that does not constitute a significant threat to life or property.Assistance may include,without limitation, financial assistance or technical assistance,including emergency repairs. (b)In this section,"electrical emergency”means a condition in a utility's system that presents an imminent danger to life or likelihood of significant disruption of electrical service. (Eff. /,Register ) Authority:AS 42.45.400 44.83.080 3 AAC 108.240.Conditions to receiving assistance.As a condition to providing assistance under 3 AAC 108.200 -108.240,the authority may require the recipient to: (1)execute an agreement prepared by the authority that describes the terms and conditions of the assistance; (2)execute a waiver of sovereign immunity;and 10 (3)abide by other terms and conditions that the authority determines are needed to "maximize the public benefit from the assistance provided under this chapter.(Eff./_-_/; Register ) Authority:AS 42.45.400 44.83.080 Article 3.Alternative Energy and Energy Efficiency Programs. 3 AAC 108.300.Alternative energy and energy efficiency assistance provided by the authority.(a)Subject to appropriation and availability of funds,the authority may provide financial and technical assistance to utilities,municipalities,school districts,unincorporated villages,community associations,Native corporations,federally recognized tribes,and businesses for evaluation and development of sources of energy in the state for local consumption and for evaluation,development,and installation of measures to improve the efficient utilization of energy that is consumed locally. (b)In providing assistance under this chapter,the authority will give priority to those projects that show the greatest potential for reducing communities'dependence on diesel fuel for power generation.(Eff./__/__,Register___) Authority:AS 42.45.400 44.83.080 3 AAC 108.310.Alternative energy and energy efficiency assistance plan.The authority shall prepare,publish on its internet web site,and periodically update a biennial plan for providing alternative energy and energy efficiency assistance under this chapter.The plan shall include a description of available funding and funding the authority plans to request for 11 alternative energy and energy efficiency assistance,the types of assistance the authority provides and plans to provide,and the criteria for allocating funds that the authority uses and plans to use. (Eff.fof ,Register ) Authority:AS 42.45.400 44.83,080(5),(10),(13) 3 AAC 108.330.Conditions for receiving assistance.As a condition to providing assistance under this chapter,the authority may require the recipient to: (a)execute a grant agreement prepared by the authority that describes the terms and conditions of the assistance; (b)execute a waiver of sovereign immunity; (c)provide matching funds,property,services or another form of contribution to the project;and (d)abide by other terms and conditions that the authority determines are needed to maximize the public benefit from the assistance provided under this chapter.(Eff.../ -/_sis Register ) Authority:AS 42.45.400 44.83.080 Article 4.General Provisions 3 AAC 108.400.Notice of availability of assistance and status of programs.The authority shall publish and periodically update on its internet web site information on procedures for requesting assistance under this chapter and criteria that the authority uses to select recipients _of assistance;available funding for assistance under this chapter and allocation of available funding to projects;status of rural power system upgrades,bulk fuel storage facility upgrades, 12 alternative energy projects,and energy efficiency projects under this chapter;and changes to programs for providing assistance under this chapter considered or proposed by the authority. (Eff.if ,Register ) Authority:AS 42.45.400 44.83.080 3 AAC 108.410.Protests and appeals.(a)Except as otherwise provided by law or as a condition of assistance provided to the authority under 3 AAC 105.020,protests and appeals of action taken by the authority under this chapter shall be made in accordance with this section. (b)A person who is adversely affected by proposed or final action of the authority under this chapter may submit a protest to the executive director of the authority. (c)The protest must be submitted by fax,by mail,or by delivery to the authority and must be received by the authority within ten calendar days after the authority provides notice of the authority's action.If the protester shows good cause,the executive director may consider a protest that is not filed in a timely manner. (d)The protest must be in writing,must be signed by the protester,and must include (1)the name,address,and telephone number of the protester; (2)the signature of the protester or the protester's representative; (3)identification of the procurement,solicitation,or other matter at issue; (4)a detailed statement of the legal and factual grounds of the protest,including copies of relevant documents;and (5)astatement of the remedy requested. (e)Upon receipt of the protest,the executive director will provide notice to other interested parties and 13 (1)make a final decision upon review of the protest and other relevant information; (2)delegate review of the protest to the authority's procurement manager or other person for a recommendation and make a final decision based on the recommendation;or (3)conduct a formal or informal hearing,or designate a hearing officer to conduct a formal]or informal hearing and provide a recommendation,upon which the executive director's decision will be based. (f)A decision of the executive director is a fina]administrative decision of the authority. An appeal of the decision shall be to the superior court in Anchorage under the Alaska Rules of Appellate Procedure.(Eff...//_,Register___) Authority:AS 42.45.400 44.83.080 3 AAC 108.490.Definitions.In this chapter,unless the context requires otherwise, (a)"alternative energy”means energy or fuels for production of electricity,heat,or mechanical power derived from renewable or local sources other than liquid petroleum, including wind,solar,geothermal power,hydroelectric,biomass,and local sources of coal and natural gas; (b)"construction”means planning for,designing,preparing the site for,building, altering,testing,and improving the facility or equipment being upgraded; (c)"bulk fuel storage facility”means tanks and appurtenant facilities and equipment, including pipelines and headers,for the storage and distribution of fuel for local consumption or power generatl on; 14 (d)"energy efficiency”means improvement of energy generation from,transmission by, or utilization at existing facilities in the state,and includes facility insulation,energy-efficient lighting,improved efficiency in diesel generation of power,and co-generation of electricity,heat or mechanical power; (e)"power system”or "power project”has the meaning given in AS 44.83.990. (f)"upgrade”means construction,renovation,repair,replacement,or other improvements to a facility or equipment,and includes taking out of service facilities or equipment replaced or rendered obsolete by the improvements to facility or equipment.(Eff. /__/___,Register___-) Authority:AS 42.45.400 44.83.080 15