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HomeMy WebLinkAboutAEA Board Meeting Aug 13 2009AIDEA and AEA BOARD MEETING Page 1 of 1 Home Go Back .:.Public NoticesOnlinePublicNoticeAIDEAandAEABOARDMEETING State of Alaska Submitted by:bjfuglestad/03 Date Submitted:08/07/2009 04:31 PM Date Modified:08/07/2009 04:32:21 PM Ak Admin Journal:[net printed] Attachments:No files attached AIDEA and AEA BOARD MEETING Category:Agency Meetings Department:Commerce Community &Economic Development Publish Date:08/07/2009 Location:Anchorage Coastal District:N/A Body of Notice: Please note that the Board of Directors of the Alaska Industrial Development and Export Authority (AIDEA)and the Alaska Energy Authority (AEA)will hold a board meeting beginning at 10:30 a.m.on Thursday,August 13, 2009. The Board will convene as AEA and continue in session until recess or adjournment.Immediately upon recess or adjournment the Board will convene as AIDEA and continue in session until recess or adjournment. An agenda for the meeting is available by visiting our website at www.aidea.org and www.akenergyauthority.org This meeting will be conducted by electronic media pursuant to AS 44.88.050(a)and AS 44.62.310 at the following locations: Alaska Industrial Development and Export Authority Boardroom 813 W.Northern Lights Blvd. Anchorage,Alaska. The public is invited to attend.The State of Alaska (AIDEA and AEA)complies with Title I!of the Americans with Disabilities Act of 1990.Persons requiring special modifications to participate should contact (907)771-3009 to make arrangements. Revision History: 08/07/2009 04:31:56 PM by bjfuglestad/08/State/Alaska/US 08/07/2009 04:32:21 PM by bjfugiestad/08/State/Alaska/US $$WebCiient [Ancn] Home Page Notices by:Department|Category |Publish Date http://notes5.state.ak.us/pn/pubnotic.nsf/ad4f363a3 1408ed98925672a00607900/afed6442...11/13/2009 ALASKA ENERGY AUTHORITYWwAlaskaIndustrialDevelopmentandExportAuthority AGENDA Alaska Energy Authority Board of Directors 10:30am on Thursday,August 13,2009 Anchorage,Alaska 1.CALL TO ORDER 2.BOARD OF DIRECTORS ROLL CALL 3.AGENDA APPROVAL 4.PUBLIC ROLL CALL 5.PUBLIC COMMENTS 6.PRIOR MINUTES -June 25,2009 7.OLD BUSINESS 8.NEW BUSINESS A.AEA Resolution No.2009-03,Adoption of AEA Regulations 9.EXECUTIVE DIRECTOR COMMENTS A.Director's Status Report of AEA Programs and Projects B.Next meeting date September 17,2009 10.BOARD COMMENTS 11.ADJOURNMENT 813 West Northern Lights Boulevard #Anchorage,Alaska 99503-2495 www.aidea.org @ 907/771-3000 #FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org Wyk "Albx¢X Alaska Industrial DevelopmentandExportAuthority ALASKA qo)ENERGY AUTHORITY Alaska Energy Authority BOARD MEETING MINUTES August 13,2009 Anchorage,Alaska 1.CALL TO ORDER Chairman Pat Galvin called the meeting of the Alaska Energy Authority to order on August 13, 2009 at 10:39 a.m. 2.BOARD ROLL CALL A quorum was established. Members present in Anchorage:Chairman Pat Galvin (Commissioner,Department of Revenue); Michael Felix (Public Member);Commissioner Leo von Scheben (Department of Transportation &Public Facilities);and Vice Chair John Winther (Public Member). Joined the meeting in progress:Commissioner Emil Notti (Department of Commerce, Community &Economic Development). 3.CONFIRM NOTICE REQUIREMENT AND AGENDA APPROVAL Commissioner von Scheben made a motion to approve the agenda as presented and Commissioner Notti seconded it.There being no discussion,the question was called.A roll call vote was taken and the motion passed with Messrs.Galvin,Notti,and von Scheben voting yea. The agenda was approved as presented.Public Notice requirements were met. 4.PUBLIC ROLL CALL Staff present in Anchorage:Steve Haagenson,(AEA Executive Director);Sara Fisher-Goad, (Deputy Director-Operations);Mike Harper (Deputy Director-Rural Energy);James Hemsath (Deputy Director-Development);Valorie Walker (Deputy Director-Finance);Leona Hakala (Loan Officer);Peter Crimp (Project Manger);Chris Rutz (Procurement Manager);Bruce Tiedeman, (AEA Community Coordinator);Jim Strandberg (Project Manager);Shauna Howell (Administrative Assistant);and Sherrie M.Siverson (Administrative Assistant). Others present in Anchorage:Brian Bjorkquist and Mike Mitchell (Department of Law);Tim Bradner (Alaska Journal of Commerce);Paul Kendal (Public);Suzy Erlich,Walter Sampson, Carl Wisner,Denali Whiting,and Mayor Siikauraq Martha Whiting (Northwest Arctic Borough). 5.PUBLIC COMMENTS Siikauraq Martha Whiting,Mayor of the Northwest Arctic Borough 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org *907/771-3000 *FAX 907/771-3044 ®Toll Free (Alaska Only)888/300-8534 ©www.akenergyauthority.org AEA Board Meeting August 13,2009 Meeting Minutes Page 2 Mayor Whiting stated that their region has the highest cost of living in the state and they have been working with an energy summit to determine solutions for bringing down the cost of energy and are also working on grant proposals to put solar panels on the schools and city offices. They are asking the question --what can we do to start small to help in reducing the cost of the energy in rural Alaska?Recently,they put together an elder energy day.In one day there were 200 volunteers who weatherized all of the elders'homes in Kotzebue.She added that they want to be proactive in taking care of their needs and continue to do this in all of the villages. She also made mention of Ingar Mathiason,Energy Czar of the Northwest Arctic Borough.He has a home in Ambler that runs off of nothing because he uses wind and solar to operate everything he needs for his home. Mayor Whiting also stated that there needs to be consistency and equity for fuel costs.The one thing that brings our price for fuel up so high is transportation.In some villages you have to fly in the fuel because the river is too low.As a goal,we would like to see for the entire state -the same cost of fuel,the same cost of natural gas,the same cost of diesel --no matter where you live.We have a huge resource in natural gas,but need to know how we can bring it to that everyone has a matter of equity.It is a big challenge,but it is a goal we are going to pursue. We appreciate the work you are doing. Walter Sampson,President of the Northwest Arctic Borough Mr.Sampson noted that as an extension of the state government,as the Northwest Arctic Borough,our role is similar to what the state of Alaska does -hopefully to make life easier for the residents.When resources are limited,it is hard to do.He also stated that costs continue to rise noting that fuel cost from last year barely went down.Fuel from Crowley at the terminal is purchased at $260 a drum in Kotzebue,and in some communities it is over $500 a drum. The issue in regards to the work of entity and our leadership team have been trying to work together to make sure that there is no duplication of one organization over the other -that is why we have the leadership team that comes together on a quarterly basis.Energy is something that we are all looking with federal dollars that we are applying for -is something that we are trying to find a way to bring some of those dollars.That is one thing people don't understand.Anytime you put together a program people feel that the cost of energy will immediately come down.One of our communities certainly has their share of problems.It is the smallest community in our region.There is a letter that was sent out to them giving two weeks' notice.It will be $400/round trip per ticket to travel to Kotzebue.These are some of the things we are looking at and working at and AIDEA's role is something we appreciate and as an entity you are trying to create an opportunity and it is something we want to work with as an organization and extend that opportunity to folks within parts of the state of Alaska.After all,the state of Alaska has its share of assets that was also sold at a lower rate and as far as equity is concerned,there needs to be a way to find a way to deal with that.It is something that we are certainly always open to having dialogue.Anytime we have a meeting within the region, certainly we appreciate Mr.Harper's visit to the region periodically looking at some of the problems we have. Paul D.Kendall,Public Mr.Kendall stated he sees one opportunity after another for Alaska to be a leading example in the world and for Alaska to reflect its true capacity in leadership and resources.He is seeing things,for example:Secretary Chu and President Obama both said we will no longer entertain AEA Board Meeting August 13,2009 Meeting Minutes Page 3 funding unless it is transformational energy ideas.Every great body,every great institution or village or community starts with a can-do attitude.How do you separate the individual in their shortcoming or whatever it is from the real data that needs to be looked at?And in compiling this data,he sees at least 10 to 30 nations who are making commitments to 0 carbon fuels. Overnight,the Prince of Sweden leading the EU,he is telling his people we have to think like we've never thought before.We have to go to work differently,we have to talk in the community, we have to finance differently and then he goes on to state that how if we get on the leading edge of this we will actually lead the role in the rest of the world in the financial recovery. It is my understanding that Secretary Chu,Secretary of Education Donovan,and two or three others are here from Washington.Those men,|would certainly hope,are meeting with you here today.When |see these kinds of men gathered in our state and going to a rural area and that rural area in some ways is a distraction,we can't get to help them unless we can help the core body.My point is that these men are somewhere in town and they should be here. Mr.Kendall mentioned the five electric vehicle designated cities.Tucson,Phoenix,Seattle, Portland,Tennessee and San Diego. He stated that our leadership continues to be focused on gas and dark carbon.England just grabbed the leverage of the utility system -distribution -transmission.Scotland just hired Japan to look at their title for energy development.Massachusetts just released their first offshore sea study of rules and regulations.Australia offers a $5M reward.Ten nations declared themselves to be O free.They just declared that nuclear power is not going to be considered renewable energy.There are large forces out there moving to generate new revenues and energy is at the centerpiece of this. Mr.Kendall stated that he wants an energy allocation for dwelling,each individual dwelling based on a form -it should have an energy allocation of electricity and water and in my world,it is at nearly a zero charge.The reason is,when you insulate that house,if you insulate it,and go to electric vehicle,and you go all heating and cooking in the electricity,there is no reason why that gas and that gasoline isn't moved into the market to be for sale.We are about to see fossil fuels coming to a rapid decline,that we have by going into our residential units and in partnershiping with water,we push that gas and that oil out there to be sold,which makes us more revenue than the electricity we bring in from hydroelectric in the Cook Inlet.To overlook the Cook Inlet is just criminal.In conclusion,|am no longer in favor of what we call dead-man- dams.|love the Susitna and |can see a compromise in one or two,but Chakachamna and Susitna are what we call dead-man-dams.Those are isolated,large ventures,20-30 years out; they are not compatible with water partnerships. Carl Wisner,Northwest Arctic Borough Mr.Wisner thanked the group for the opportunity to share his story.He noted that he hauls wood as often as possible,and goes out on his boat to gather driftwood because he doesn't expect to be able to buy a whole lot of stove oil to heat his home and finds himself with mixed feelings each winter.He wonders if Hugo Chavez is going to supply rural Alaska with oil.He is a patriot who is proud of America and he understands we have different views with them.He asked that you not look at rural Alaska as a distraction or keep them in the margin,but to keepthemintheforefrontbecauseinruralAlaskaiswherealotoftheenergycomesfromandalot of the times we are facing the greatest challenge. Commissioner Galvin welcomed new board member Michael T.Felix. 'AEA Board Meeting August 13,2009MeetingMinutesPage4 6.PRIOR MINUTES -June 25,2009 The minutes were approved as presented. 7.OLD BUSINESS There was no old business. 8.NEW BUSINESS 8A.AEA Resolution No.2009-03,Adoption of AEA Regulations Mr.Haagenson noted last year HB152 was approved and established the Renewable Energy Fund,with a condition in the statutes that AEA develop regulations.Since that time we have put together a program and we have guidelines we have been following which have been developed as regulations.We've received applications,evaluated applications,and have actually awarded applications for approximately $125M.Mr.Haagenson recognized the core team who has been working on this:Sara Fisher-Goad,Chris Rutz,Butch White,Mike Mitchell, Peter Crimp,and Jim Strandberg. Ms.Fisher-Goad stated that the AEA regulations include regulations for the new Renewable Energy Grant Recommendation Program.These are also regulations that deal with AEA programs and conform to some statutory changes that happened in the last couple of years. Reference to ground water source development and transmission of potable water supplies as an eligible loan project has been repealed based on a change in the Power Project Fund.There are some clarifications in the Bulk Fuel Revolving Loan Fund requiring written endorsements from all of the communities that you are borrowing on behalf of;there must be local approval from each of those communities.There are also regulatory changes that are consistent with the statutory limits applied through the Revolving Loan Fund. In addition,the Power Project Loan Fund more clearly defines an Independent Power Producer (IPP)and is being used for the Renewable Energy Program.We also clarified that an electric utility is used consistently with the term public utility in existing state statutes. In addition to the changes provided to the Board this morning is a new version of the memo with one additional change.The Board was provided a red-line version showing the changes in regulations.To summarize those changes: e On page 10 of the regulations,we changed the word 'and'to 'or'to indicate that through the feasibility and public benefit review of applications,that public benefits are a separate subset of this economic feasibility and benefit evaluation process. e On page 11,we re-added section 650,a request for reconsideration for grants.This was re-added after discussion with the Department of Law to make it acceptable to the Department of Law and to our needs.What was changed from the original public review to what the Board was provided -we changed the time for someone to request reconsideration from 5 to 10 days and we also made sure that people knew that the written request could also be handed to us electronically. AEA Board Meeting August 13,2009 Meeting Minutes Page 5 e In the evaluation and grant application section (pages 12 and 13),we deleted "from the evaluation criteria other projects existing or proposed in the same area,”as an evaluation criteria and added "that the number of types of projects within a region”-it was more appropriate to have that evaluation in the ranking of evaluations and not through the evaluation process.It better reflects how we are processing our evaluations. We evaluate projects and then we look at projects and type of projects on a regional and a ranking basis. In addition to those changes,there was a change in Chapter 108.There are several places where the Procurement Manager,Contract Manager and Grant Manager were used in our protest for grant and contract plans.We changed that to Procurement Officer,which is actually a defined term in statutes.We thought this better reflected,and provided some consistency,that one person would handle those types of protest and claims. A question was asked,"Is there a change of adding $750,000 as the maximum per organization that they could -was there a number before?”Ms.Fisher-Goad replied that it has been changed several times in statutes and this is catching up with the changes in statute -it is completely consistent with the statutory limits with the bulk fuel revolving loan fund.$750,in the ten years I've been at AEA,it's gone from $100 to $200 to $400 and then the $750 that happened during special session last year. There was clarification in earlier wording -the term 'ground water'in the Power Project Fund Loan Program.Changes were made to statutes a couple of years ago and there was a provision to have ground water projects and potable water projects as an eligible applicant.We looked through the history of the program with the Division of Energy -the old AEA to the new AEA - and haven't seen where there was ever that type of project.That type of project was deleted as an eligible project for this program.This repeal will be consistent with those statutory changes. The regulation package is pretty substantial because it is establishing new regulations for the Renewable Energy Fund Program. Chair Galvin asked if comments received were incorporated into the final version. Ms.Fisher-Goad replied that we received four comments,one from the Legislative Affairs Agency and three from the public.A public hearing was held,but no one testified.The Regulations were not changed in response to the public comments. Chair Galvin stated that we are amending regulations associated with the Bulk Fuel Program and then we're adding an entire article associated with the Renewable Energy Grant Program. Those have gone through the public review referred to and the changes shown in redline are changes to the draft,not changes to our existing regulations,because they are not in regulation yet.We are actually adding Article 4 to the regulations through this resolution. Ms.Fisher-Goad added that we are making changes to the Power Project Fund Loan regulations (potable water).We also added the definition of IPP,which is now the same for the grant program and the loan program.In addition,the Chapter 108 changes are a revision of the claim process that is currently in the regulations.There were some additional minor corrections given to the Board this morning;however,those changes are on the general provisions for AEA's financial and technical assistance for energy systems,facilities and equipment.It is a section of regulation that covers a lot of AEA programs.This was a way to provide some Clarification of how we want to deal with claims and protests. AEA Board Meeting August 13,2009 Meeting Minutes Page 6 MOTION:Commissioner von Scheben moved to approve AEA Resolution No.2009-03. Seconded by Mr.Winther.There being no discussion,the question was called.A roll call vote was taken and the motion passed with Messrs.Galvin,Winther,Felix,Notti,and von Scheben voting yea. 9.DIRECTOR COMMENTS 9A.Director's Status Report of AEA Programs and Projects Steve Haagenson introduced Peter Crimp who provided an overview of a PowerPoint presentation to be presented to Legislative Budget and Audit on August 15,2009.The presentation was titled:Alaska Renewable Energy Fund Progress Report prepared for the Legislative Budget and Audit Committee. Mr.Crimp discussed the status of moving ahead on grants and showed pictures of projects that are under construction.He discussed staffing,the amount of funding caps for funding projects, Independent Power Producers (IPP),and how AEA is moving towards determining rates for energy for those projects. Mr.Crimp said that over half of the project funding has been allocated into grants.They are working to get other grants up and running and waiting for additional information from grantees (milestones,better budgets).Most of the grants are in place.Over 60%are finalized,or about to be finalized. The Board suggested additions to the presentation,including how to make it more simplistic and easier to read. Mr.Crimp stated that most of the funds have gone into construction.He noted that Falls Creek Hydro was commissioned last month and is generating 80 kW of power.The community of Gustavus is off of diesel.Chair Galvin asked that the slide in the presentation reference the amount of the fund that actually went towards a project.Mr.Felix added that it is important to know how much the total project cost and understand how much the Renewable Energy Fund contributed to it,to determine how much you saved. Other topics discussed in Mr.Crimp's PowerPoint presentation included: Pillar Mt.Wind (Kodiak) Denali Solar Thermal Juneau Airport Ground Source Heat Pump North Prince of Wales Intertie (Coffman Cove &Naukati) Unalakleet Wind North Pole Heat Recovery Tok School Wood-Fired Boiler North Pole Biomass-Fired Power Hydrokinetic (River Flow)energy Mr.Crimp noted that a one cycle economic analysis was done for these projects.All of the projects are economically feasible with substantial analysis behind project selection. AEA Board Meeting August 13,2009 Meeting Minutes Page 7 Mr.Crimp stated that 10 AEA staff is currently providing technical oversight on these projects. AEA is also in the process of interviewing for four additional technical staff. Mr.Crimp discussed capped funding.We have had mixed progress with those projects because some of them were able to find additional financing and some were not.We recommend the cap in order to spread the dollars around regions more equitably.Capped projects will have one year to come up with the supplemental funds.We are also working with an advisory committee to resolve these types of issues. Mr.Crimp stated that Independent Power Producers (IPP)are allowed because they are eligible developers.If an IPP builds a project,how much do we allow them to sell the power for?It doesn't make sense for AEA to subsidize them to bring down the cost and for them to sell it slightly below avoided cost.We need to come up with a good way of determining what a reasonable rate should be while balancing the opportunities for entrepreneurs to develop projects.In the short term,we are planning to hire contractors to recommend cost-based rates (rates based on amount of equity,production tax credits and other project/site specific costs).In the long term,we want to come up with an agreement with the RCA who have more expertise in this area to coordinate our responsibilities. Steve Haagenson,Alaska Energy Plan Mr.Haagenson reported on the Alaska Energy Plan noting that we are currently developing a database which will reflect immediate,short-term,mid-term,long-term and stretch goal plans for each community by looking at the resources and technologies available in their community and matching them together in our best logic.We will share that with the communities to get their buy-in and hope they 'own it'at the end of the day.We have been meeting with different regions across the state for the past nine months.We have also contacted a consulting company to look at storage and conversation (1 day storage,1 month storage,1 year storage)in order to deploy different renewables and come up with a conceptual design for a pricing index on the different technologies.Our target date to have the whole package completed,including a policy section, a finance plan,and a plan by community,is November 30,2009. 9B.Next meeting date September 17,2009 10.BOARD COMMENTS Commissioner von Scheben provided the board a copy of a letter he wrote to Mayor Kadake regarding the Kake-Petersburg road discussed at the August 13,2009 board meeting. 11.ADJOURNMENT There being no further business of the board,the meeting was adjourned at 12:07 p.m. LZ Steve Haagenson,Executive Director/Secretary Alaska Energy Authority Alaska Energy Authority BOARD MEETING MINUTES June 25,2009 Anchorage,Alaska 1.CALL TO ORDER Chairman Pat Galvin called the meeting of the Alaska Energy pha to order on June 25,2009,at 10:36 a.m. 2.BOARD OF DIRECTORS ROLL CALL A quorum was established. Members present in Anchorage:Chairman Pat Galvin (Commissioner,Department of Revenue);Commissioner Emil Notti (Department of Commerce,Community &Economic Development);and Vice Chair John Winther (Public Member).Commissioner Leo von Scheben (Department ofTransportation&Public Facilities)arrived at 10:52 ami 8)hy 3.AGENDA APPROVAL aispea aneyy4.PUBLIC ROLL CALLStaffpresentiin:'Alichorage:Steve Haagéhson (AEA Executive Director);Chris Anderson(Deputy Director-Credit);Sara Fisher-Goad,(Deputy Director-Operations);Mike Harper (DeputyDirector-Rural Energy);'James Hemsath (Deputy Director-Development);Valorie Walker(Deputy Director-Finance);Bruce Chertkow (Loan Officer Il);David Lockard (Project Manager);Chris Mello (Program Manager-RPSU/BF);Karsten Rodvik (Project Manager);Jim Strandberg(Project Manager);,Butch White (Grants Administrator);Brenda Fuglestad (AdministrativeManager);and Sherrie M.Siverson (Administrative Assistant).CkiOtherspresentinAnchorage::Brian Bjorkquist (Department of Law);Tim Bradner (AlaskaJournalofCommerce);'Henrich Kadake (Mayor of Kake);David Case (Northwest Arctic Borough);Jodi Mitchell (Inside Passage Electric Cooperative);Katherine Eldemar (Sealaska); Robert Venables (Southeast Conference). Joined the meeting in progress:Bryan Carey (Project Manager);Chris Rutz (Procurement Manager);and Mark Schimscheimer (Project Manager). AEA Board Meeting June 25,2009 Meeting Minutes Page 2 5.PRIOR MINUTES -February 26,2009 The minutes were approved as presented. 6.OLD BUSINESS There was no old business. 7.NEW BUSINESS There was no new business. 8.EXECUTIVE DIRECTOR COMMENTS Mr.Haagenson provided an overview of the documents in the board packets. ALASKA ENERGY:A first step toward energy independence Energy use in each community is composed of three major components:electricity,space heating,and transportation.A resource map was constructed that indicated the available resources for each community.As would be expected,every resource is not available in each community.The other observation was that even with a 30%wind penetration,the remaining 70%of the electrical energy would come from diesel.Diesel can be extremely expensive in rural Alaska.AEA is seeking development of a system using 100%wind for both electric and heat. Artificial Geothermal Wind can provide electricity and heat,but there is a need for assistance when the wind stops. When the wind stops,the hot water would provide heat and could be used to make electricity through a binary phase turbine,similar to the Chena Chiller Organic Rankine Cycle (ORC) generator used at Chena Hot Springs. Storage Alaska Center for Energy and Power (ACEP)is currently investigating energy storage technologies.These different technologies may lend themselves to more improved technologies better than others based on the expected storage times.The Cold Climate Housing Research Center (CCHRC)is looking at a large insulated thermal mass that would be heated in the summer time with abundant solar energy,and used as a thermal source for a heat pump to heat buildings in the winter. Energy Conversion The selection of a specific technology is critical for extracting stored energy and converting it to usable energy,but reliability is also a critical factor. Community Sizing Model A generic model,created in Microsoft Access,will be needed to integrate the various options into the community.Basic model variables will include:type and availability of local energy resources,end-use electrical energy by community,and end-use heating energy by community. The model will identify the necessary capacity to the energy supply,storage and conversion AEA Board Meeting June 25,2009 Meeting Minutes Page 3 systems that are either central or distributed to deliver the community end-use energy.The model will also detail the operations and maintenance costs for integrated systems to support a life-cycle cost analysis. Capital Cost Model A database will be developed to combine the community needs information with the Community Sizing model to yield: e Capital cost estimates by community,region and state e Cost of Energy by community,region and state e Per Capita cost by community,region and state Schedule Schedule is attached with a November 30"end date. There will be a Railbelt Regional Integrated Resource Plan (RIRP)Technical Conference on July 7 &8,2009.It is open to the public and everyone is welcome to attend. Renewable Energy Fund HB 152 A public hearing is tentatively scheduled for July 15,2009 for the proposed regulations for the Renewable Energy Fund Grant Program.After review by the Department of Law's Regulations Section,the 30 day public comment period will begin. Brian Bjorkquist said that after public comment period,the proposed regulations will come back to the Board for adoption. In response to question from Mr.Winther,Mike Harper said that funding from the Denali Commission is down approximately 50-75%.There is $10 million for bulk fuel tank farms and power plants this year,down from $20 million in previous years.He said approximately 3.5%of those funds cover administrative costs. The next board meeting will be August 13,2009. 9.PUBLIC COMMENTS Henrich Kadake,Mayor of Kake,Alaska.Thank you for letting me speak for the people of Kake.The city of Kake is shrinking because of the economy.Approximately 10 years ago there were about 1000 people living in Kake when fuel and energy were cheap,and there were a lot of jobs.In the past three years they have lost about 480 people.The school system has dropped from 256 to 88 students.We are looking for a way to get some help to continue the work on our Kake-Petersburg Road and Intertie.|believe that it is going to be one of the biggest things that ever happened in Kake will be if the economy will be revitalized because right now we have nothing else.We are only a fishing village.We don't have a whole lot to offer anybody without cheap energy and good transportation.We are looking for some help to try to continue working on the road and intertie.The permitting part is the next step.|have been working with Steve and Jim and IPEC and Angoon and Hoonah.We've been working for the same thing because we are all under the same umbrella as IPEC as our provider.We realize the only way we are going to get cheap energy is working together.|just want to give you an idea where AEA Board Meeting June 25,2009 Meeting Minutes Page 4 Kake is.In the past two weeks |have had to lay 15 people off in our community because of alackoffundingandalackofjobs.It's getting more and more difficult for our people to live there. |just wanted to come here today to let you know what is happening in my village.|know Kake is not the only village that is suffering,but the only way you are going to get something done is to come and ask and speak on behalf of your community.Thank you for giving me this time to comment. In response to questions from Mr.Winther,Mayor Kadake said they are paying approximately 54 center kWh for electricity.He said the addition of a road would provide a gateway for our transportation.They would be able to produce more value-added products that could be shipped cheaply out of Kake.It might bring the price of milk down from $7 gallon and electricity would do the same.The ability to ship and receive things cheaper,and create more jobs for the people in the community,would stimulate the Kake economy.The fishing fleet would not have to travel more than six hours to Petersburg to pick up ice,fuel and bait.They could leave their boats in Kake and truck their products to Petersburg saving hours of time and money.It would be an asset to everyone in Southeast.Kake is centrally located in the fishing industry. Commissioner von Scheben said that DOT had been working on the Kake-Petersburg road for several years and although there were some legal issues,he thought the project was progressing. Jodi Mitchell,CEO,Inside Passage Electric Cooperative (IPEC).|came with this group today to talk about the combined Kake-Petersburg project.The reason for the combined project is for accessibility to the power line to facilitate maintenance.There are other benefits to the road,access to emergency medical,shopping,air transportation.There are so many benefits from this road project.What we really wanted to kind of hit home,especially for the benefit of Commissioner von Scheben,is what we really need is for you to allocate funds to the project.| guess there is a Roads to Resources fund.|believe the governor put $10 million in the budget for the project.We know you know we have a short season to do things and so whatever we can do this year saves us time next year.We also have some intertie money and we are working on getting permitting accomplished.We want to hit home the point that the two agencies,AEA and DOT,will continue to work together to get this project under way.We are very anxious.Kake is in really bad shape and we really need your help.The biggest thing is to emphasize the need to work together.This would take the community completely off diesel, which is exactly where we want to go.We are working with the leading entities in the community very closely and everybody supports this project. In response to a question from Commissioner Galvin,Ms.Mitchell said that AEA has been great and there is no problem,she just wants to be sure both agencies are working hand in hand. Commissioner von Scheben said that the timing is essential.He met with Steve Haagenson, Joel St.Aubin,Frank Richards,and Michael Black to talk about the cluster concept of connecting villages by roads and sharing services (one school,one power plant/transmission line,one medical clinic,one airport)so economy of scale kicks in.An analysis showed a factor of almost two-to-one in savings using economy of scale.Villages will need to start sharing assets.He will check on the status of the road and report back to the group. AEA Board Meeting June 25,2009 Meeting Minutes Page 5 Ms.Mitchell said this would extend the SEPA network (Southeast Alaska Power Agency)and asked for AEA and DOT support in "pushing”SEPA to build and own the intertie,which is the cheapest way to do it for Kake.If Kake built and owned the intertie,it limits the economics for the project.SEPA is the former Four Dam Pool entity. Katherine Eldemar,Assistant to the President and CEO,Sealaska Corporation.Sealaska Corporation has a shareholder base of a little over twenty thousand and we are here today to express our general appreciation on the development of alternatives to diesel for the Kake area. Kake,along with other areas throughout Southeast do have some economic challenges and one of the key components,one of the constraints we've found as a for-profit enterprise is we are having difficulty with managing that component.Everything else being equal if you try and do business in Kake,or any of the other rural communities,the electrical bills will kill the endeavor.So,inasmuch as we are here,|won't repeat what the other experts have said,but we are in favor and in support of Kake having as expeditiously a road,as well as cheap power to its community. Robert Venables,Energy Coordinator,Southeast Conference.Even though the challenges are severe and real,good progress has been made this past year and phenomenal progress has been made.Thank you very much to the Alaska Energy Authority because your support in Southeast Alaska has allowed us to do more work this past year than in previous years.Steve and many staffers have played a part in that,but none more than Jim Strandberg and we want to acknowledge his work down there as well.You can imagine when you go to a public meeting and you say "I'm here from the government to help,”what kind of a response you get.Well it's only exceeded by when you go to a public meeting and say "I'm here and I'm bringing two government agencies to help you.”It's really been inspiring to see the inter-agency cooperation because Southeast region has done a great job in helping us move this project here in Kake. We just had public meetings in Angoon and Hoonah.We have a lot of initiatives which are leading to a further need for the integrated resource plan that Mr.Haagenson addressed.We are on the verge of having an integrated system from Metlakatla through Kake with the SEPA network.The little hiccup with the DOT has to do with a shortfall in funding that they need for this summer work season.They need some general funds.Mr.Hughes has a request in for the Roads to Resources fund that hasn't filtered up to the Commissioner's office.|apologize, Commissioner,if you felt a little sand-bagged with us throwing that out there.The governor put out a $10 million dollar legislative authorization that went through for federal funds that will eventually flow to the project,but they need some general funds to get some field work done this year.There is a 300 foot corridor to the north that has been identified for road right-of-way that we want to do the intertie on and that is something that the Forest service is going to want us to keep to one corridor,not two.The community is behind that 100%.We have funds through HB 152 now to do the electrical portion.If the application for the Roads to Resources money can flow to the project then DOT can stay in step.It's disheartening to tell the people at Kake, that although we do mean fast track,it's still three to five years away.We're very anxious to get as much work done as we can during this summer season so we don't fall another year behind. |want to say thank you.The people of Kake,as desperate as they are,they've done a good bit of work developing a comprehensive economic development strategy to revitalize their community should the pieces of energy and transportation fall into place.Southeast Conference,as the State's ARDOR Regional Development Organization,go in there and help AEA Board Meeting June 25,2009 Meeting Minutes Page 6 the communities,so we are embracing them on a number of levels and energy is the key. Thank you for your support. 10.BOARD COMMENTS Mr.Winther complimented the group on their presentation. 11.ADJOURNMENT There being no objection and no further business of the Board,the meeting was adjourned at 11:21 am. Steve Haagenson,Executive Director/Secretary Alaska Energy Authority ALASKA ENERGY AUTHORITY RESOLUTION NO.2009-03 RESOLUTION OF THE ALASKA ENERGY AUTHORITY RELATING TO THE ADOPTION OF NEW REGULATIONS AND AMENDMENTS TO THE AUTHORITY'S EXISTING 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,AS 42.45.045(d)(1)provides that the Authority shall adopt regulations relating to the renewable energy grant fund and recommendation program containing specified evaluation criteria; WHEREAS,staff of the Authority has proposed that the Authority's regulations be 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 this regulation;and 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 and AS 42.45.045(d)(1)the Authority hereby adopts the Regulation Amendments. AEA Resolution No.2009-03 Section 2.The Chairman of the Authority is hereby authorized,in accordance with AS 44.83.080,to provide notice of the adoption of the Regulation Amendments to the Chairman of the Administrative Regulation Review Committee. Section 3.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 13"day of August 2009. Chairman (SEAL) ATTEST Secretary AEA Resolution No.2009-03 a Alaska industrial Development @-_ENERGY AUTHORITY and Export Authority MEMORANDUM TO:Board of Directors Alaska Energy Authority FROM:ON teve HaagensonKeremDirectorDATE:August 13,2009 SUBJECT:Resolution No.2009-03 Adoption AEA Regulations Resolution No.2009-03 adopts the amended regulations attached as Exhibit A to the resolution. These amended regulations revise Alaska Administrative Code Title 3,chapters 106,107,and 108, relating to loan and grant programs of the Alaska Energy Authority (AEA or Authority)and to financial technical assistance from the Authority for energy systems,facilities,and equipment. AEA widely distributed notice of the proposed revisions.Formal Notice of the proposed regulations, including the opportunity to comment on the proposed regulations and the scheduled hearing was published in the Anchorage Daily News on July 2,2009.In addition,advertisements for the hearing and the opportunity to comment were placed in the Fairbanks Daily News-Miner,the Peninsula Clarion,the Nome Nugget,the Kodiak Daily Mirror,and the Juneau Empire during the week of July 2,2009.AEA also emailed the notice to all individuals and entities that expressed an interest in being notified when changes were proposed to the Renewable Energy Fund;it was also provided to all legislators,and the House and Senate Community &Regional Affairs Committees and to the House and Senate Labor &Commerce Committees,the Regulations review attorneys for the Department of Law,to the members of the Renewable Energy Fund Advisory Committee and to other interested individuals,and it was posted on AEA's website and on the State of Alaska Online Public Notice System.A public hearing was held on the proposed regulations on July 2,2009 from 2pm-5pm.The public comment period closed on August 4,2009. AEA received a total of four comments on the proposed regulations (all written),three from citizens (see attached comments),and one from the Legislative Affairs Agency.The comments from the Legislative Affairs Agency are confidential under AS 40.25.120(b)(11),and are provided to the board under separate cover.Any board discussion of these comments should take place in executive session.The comments from the regulations attorney were technical suggestions dealt with by Mike Mitchell,Assistant Attorney General from the Department of Law for AEA.The regulations were revised accordingly. AEA staff may propose to the board a few minor changes to the attached regulations which are still being considered by the staff.The most significant of these are possibly re-adding a section providing a process for reconsideration of rejected applications (3 AAC 107.650);possibly stating in the list of evaluation criteria that certain criteria "may”be considered,rather than stating that all listed criteria "shall”be considered (3 AAC 107.655);and/or possibly revising,in the list of evaluation criteria,the description of the "statewide balance”criterion (3 AAC 107.655).We will distribute to the board any recommended changes to the attached draft before the board meeting. Staff recommends approval of Resolution No.2009-03. 813 West Northern Lights Boulevard ®Anchorage,Alaska 99503-2495www.aidea.org ©907/771-3000 *FAX 907/771-3044 ®Toll Free (Alaska Only)888/300-8534 *www.akenergyauthority.org "= Original Message ----- From:Butch White To:Daniel Parrent Cc:Peter Crimp Sent:Tuesday,August 04,2009 11:48 AM Subject:RE:proposed regs for REGP Peter Crimp,Program Manager for Alternative Energy,already provided a much better answer than | could.|usually defer to him and his staff for these types of questions.All|would add is that House Bill 152 that established the Renewable Energy Fund had some very specific language and requirements concerning public benefit. From:Daniel Parrent [mailto:dparrent@alaska.net] Sent:Tuesday,August 04,2009 11:41 AM , To:Butch White;Peter Crimp Cc:George Woodbury Subject:Re:proposed regs for REGP Mr.White: Thank you for that comprehensive (and comprehendible)reply. Any comments regarding the second point? Regards, Dan Parrent . JEDC Wood Products Development Service 204 Siginaka Way Sitka,AK 99835 Office:907.747.5688 Mobile:907.752.5688 Fax:907.7747.4331 Email:dparrent@alaska.net From:Peter Crimp Sent:Tuesday,August 04,2009 10:09 AM To:Daniel Parrent Cc:George Woodbury;Butch White Subject:RE:proposed regs for REGP Dan, I'l!offer my perspective on point 2,but please understand that Butch is the authoritative responder. Regarding point 2,yes |think that such a fuel plant would be an eligible project.A major question in regard to public purpose would be who would own it.It might not be in the public interest to subsidize construction of a privately owned plant that makes fuel (biomass or not)that is sold at a profit. Regards, Peter From:Daniel Parrent [mailto:dparrent@alaska.net] Sent:Tuesday,August 04,2009 9:45 AM To:Peter Crimp Cc:George Woodbury Subject:proposed regs for REGP Hello Peter: |have a few questions regarding the proposed changes to the Renewable Energy Grant Program. (http://akenergyauthority.org/RenewableEnergyF und/ProposedRequlationsfortheRenewableEnergyGran tProgramfinal(7109)({3).pdf) 1.What is the process for getting the proposed changes accepted?Would the changes have to be reviewed and approved by the legislature?When would the changes go into effect? 2.The development of woody biomass heating projects in Southeast Alaska is hampered (at least in part)by a perceived lack of quality fuel.A large established forest products company in SE Alaska proposes to install a wood-fired boiler,drum dryer,hog/hammermill,screens,dry storage facility,and fuel delivery system in order to be able to provide a reasonably dry (20%MC),uniform,bulk wood fuel. Would such a project be eligible under the proposed changes to 3 AAC 107.615(b)(2)in that it "uses renewable energy resources,including biomass,to make a fuel used to generate energy”?And further,inasmuch as most institutional customers would be schools,hospitals,etc.,could the argument be made that this project would satisfy the requirements of 3 AAC 107.605.Public purpose requirements of renewable energy grants ?Should this potential applicant submit an application for possible funding the Round 3 (upcoming)? Thank you very much. Regards,Dan JEDC Wood Products Development Service 204 Siginaka Way Sitka,AK 99835 Office:907.747.5688 Mobile:907.752.5688 Fax:907.7747.4331 Email:dparrent@alaska.net” From:Jill Reese [mailto:jilreese@gqmail.com] Sent:Tuesday,August 04,2009 12:29 PM To:Butch White Subject:Comments on PROPOSED CHANGES IN THE REGULATIONS OF ALASKA ENERGYAUTHORITY Hello,Butch:Please add this email to the comments regarding the above subject: Under 3 AAC 107.695.Definitions.,I would like a definition for "public benefits",and "economic benefits".I would expect "public benefits”to include support of the public good (recreation,public safety,etc.),as well as the sale of power.I would expect "economic benefits"to include economic development and job creation. Is this interpretation correct? Thanks. Jill Reese 907.891.0196 or (cell)907.575.9618 ALASKA INDEPENDENT POWER PRODUCERS ASSOCIATION PO BOX 23000 JUNEAU,AK 99802 August 4,2009 Butch White Alaska Energy Authority bwhite@aidea.org 813 West Northern Lights Boulevard Anchorage,AK 99503 RE:AIPPA comments on Renewable Energy Grant Proposed Regulations Dear Mr.White, I am submitting comments on the proposed Renewable Energy Grant Program "REGP”on behalf of our association and ask for consideration and modification in the final regulations for the renewable energy grant.Our organization represents the Independent Power Producers of Alaska that will be disproportionately impacted by these regulations.We also represent a growing body of capital and private investment occurring in the State of Alaska that provides much needed public benefit of creating jobs,infrastructure and energy security for current Alaskan as well as for generations that will follow. We expect that these regulations,as modified herein,would initiate cost-effective development of renewable energy for the citizens and businesses of our State so that we can collectively,in a public and private cooperation,lower the cost of power.This would publicly and privately take care of our neediest citizens.Upon our review,we feel that the proposed regulations could be more "private industry friendly”. The State of Alaska will be investing public funds into renewable energy projects.AEA must also consider that private enterprises will procure large matches of private funds to develop these important energy resources,and this fact in itself creates public good by developing this needed infrastructure.Clearly these privately financed renewable energy projects also create direct and indirect jobs that benefit all of Alaska whereas this public benefit is lost in the proposed regulations. Page 1 of 5 Therefore we ask that you consider the viewpoints of the Alaska Independent Power Producers Association as we work together to achieve the Palin/Parnell administration goal of producing 50%renewable energy use in Alaska by 2025.The HB 152 and REGP should be viewed as merely a tool in this overarching objective and the REGP should be worded to propel and not hinder this objective.Our comments serve that intended purpose. 1.We request that the definition of Independent Power Producer be modified to reflect the US federal definition and the standard used in industry.The proposed definition is quite different and unique and therefore means something entirely different. Currently,AAC 106.900 (c)(8)is proposed to read: (8)"independent power producer”means a corporation,person,agency,authority or other legal entity or instrumentality,that is not an electric utility and that owns or operates or will own or operate a facility for the generation or production of energy entirely for use by the residents of one or more municipalities or unincorporated communities recognized by the Department of Commerce,Community,and Economic Development for state aid and revenue sharing (Eff. 2/16/96,Register 137;am //,Register ) The current and proposed definition does not conform to federal and industry standards.In fact, IPP's by their very nature do "not”generate power for "residents”or communities,but are wholesale providers of power that provide power to regulated utilities on a merchant basis and serve the public good by providing competitive market based power that a utility is free to choose to purchase.The IPP serves the public good by providing private investment of funds into power projects that would otherwise not be possible using solely public funds. The Federal Definitions of an Independent Power Producer are more appropriate and will provide consistency in adopting common language that is used throughout the United States. Therefore,we ask the AEA adopt the federal definition an Independent Power Producer because the State of Alaska definition has a much different meaning that what is commonly accepted in the industry. @Iia.Energy Information AdministrationOffcialEneigyStatisticstromtheUS.Gevernment Independent power producer:A corporation,person,agency,authority,or other legal entity or instrumentality that owns or operates facilities for the generation of electricity for use primarily by the public,and that is not an electric utility. http:/Awww.eia.doe.gov/glossary/glossary_i.htm#ind_pwr_prod Page 2 of 5 FERC definition of IPP Independent Power Producer A corporation,person,agency,authority,or other legal entity or instrumentality that owns or operates facilities for the generation of electricity for use primarily by the public,and that is not an electric utility. http://www.ferc.gov/help/glossary.asp Therefore we request that the Independent Power Producer definition under AAC 106.900 (c)(8) read as follows: Independent Power Producer A corporation,person,agency,authority,or other legal entity or instrumentality that owns or operates facilities for the generation of electricity for use primarily by the public,and that is not an electric utility. 2.WE propose that AEA modify the proposed language 3 AAC 17.065 under paragraphs 3 &4 Public Purpose Requirements of renewable energy grants to recognize that "any” renewable energy development in Alaska that provides power to any use or entity in Alaska is in alignment with Alaska's goal of producing 50%renewable energy by 2025 and is therefore in the public interest and meets the basic threshold for public purpose requirements of renewable energy grants. This request is to replace a subjective and potentially manipulative criterion with an objective criterion.The public interest is further safeguarded against current or future political and bureaucratic manipulation to favor or disfavor a particular project.This criterion removes the subjectivity and replaces the subjective wording with a fair and common sense recognized objective criterion that will stand against any past accusations of political and program criticisms as illustrated by the 2009 Legislative report on the Renewable Energy program. Further,the current proposed AAC does not recognize or address the interstate trade components to energy and fails to address the federal exemption the regulatory control and review by any state agency or RCA with regards to energy produced and transmitted under the purview of PURPA,Interstate Compact Act or the Indian Commerce clause of the US Constitution, The regulation as proposed potentially discriminates against certain Alaskan citizens and businesses operating in Alaska on renewable energy projects,such as hydropower or hydrokinetic,that is regulated by the Federal Energy Regulatory Commission "FERC”.Federal hydropower applications must maximize the overall benefits to the citizens of the United States. Therefore it is unlikely and regulatory difficult to undersize a licensed hydropower resource.As part of obtaining a FERC license,the Project needs to demonstrate the need for power.Although Page 3 of 5 all of the energy produced may not be used locally in Alaska,it would be sold elsewhere through interstate commerce to other regions of our country in need of energy.HB 152's purpose was not to limit or restrain interstate trade or discriminate against federal regulated hydropower projects that require full utilization of the resource. Unless these modifications are made,the proposed language will have a disproportionate impact against hydropower projects,primarily in Southeast Alaska. Therefore the proposed language in paragraphs 3 and 4 should be reworded to not discriminate against hydropower projects,federally licensed renewable energy projects,or against Alaskans who develop,own and intend to operate same. Therefore under Article 4-Renewable Energy Grant Program,we propose the following modifications under the proposed 3 AAC 107.605 Public Purpose Requirements of renewable energy grants: (3)requiring review and approval by the Regulatory Commission of Alaska or,if the Regulatory Commission of Alaska does not have or exercise jurisdiction,review and approval by the authority,of rates charged for the use of renewable energy grant-funded assets and for energy generated by renewable energy grant-funded assets (INSERT)only for energy and energy components to be sold in Alaska; (4)determining whether an applicant that is not a governmental entity or a utility regulated by the Regulatory Commission of Alaska will own and operate the project in a manner that will provide sufficient public benefit INSERT)as defined by the objective criterion that the proposed project will provide renewable energy consistent with the State of Alaska policy of generating 50%renewable energy by 2025. (ELIMINATE)to warrant a recommendation for a grant under this article;in making this determination,the authority may consider the applicant's previous experience,its ownership and financial resources,proposed financial oversight,and other relevant factors.(Eff.//,Register) 3.We propose that AEA modify the proposed language under 3 AAC 107.645.Feasibility and public benefit review of grant applications to eliminate the use of consultants and contractors from the review process unless they are certified independent and are free of conflicts of interest and barred from working on renewable energy projects for five years in the State of Alaska after their contract expires with AEA. This safeguard will require that the agency use State employees or use independent consultants and contractors whose sole business is to perform AEA review services.This independence will eliminate collusion and the potential corruption that can occur when outside consultants are hired by agencies which in turn favor past or future clients.This bar provision will increase the program credibility and eliminate political discourse currently surrounding some past practices of the renewable energy program. Page 4o0f 5 4.WE propose that AEA modify the definitions under 3 AAC 107.695 Definitions paragraph 4. "independent power producer”to reflect the federal definition of an "independent power producer”that is widely recognized and used in the United States and with other States governments. We also propose the following definition of "renewable energy public benefit”any renewable energy project that provides for renewable energy production located within the State of Alaska consistent with the Executive order that Alaska will have 50% renewable energy production and usage by 2025. We appreciate your consideration in this matter.If you have any questions or would like to discuss these matters further,please forward your questions to me at duff.mitchell@juneauhydro.com or my cell number at 907-723-2481. Sincerely, Teeth Duff W.Mitchell AIPPA coordinator Page 5o0f5 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 106.120(a)(2)(A)(vi)is repealed: (vi)repealed //; (Eff.2/16/96,Register 137;am_s/s /,Register ) Authority:AS 42.45.010 AS 44.83.080 3 AAC 106.300(3)is amended to read: (3)written endorsement from the governing body of each [THE]community for which a bulk fuel loan is sought,if the applicant is a person generating power or selling fuel in the community; (Eff.2/16/96,Register 137;am 3/25/2005,Register 173;am /_/,Register ) Authority:AS 42.45.250 AS 44.83.080 3 AAC 106.310(4)is amended to read: (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 $750,000,or,if the borrower is a cooperative corporation organized under AS 10.15 or an electric cooperative organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more than one community,may not exceed the lesser of $750,000 multiplied by the number of eligible communities on whose behalf the bulk fuel is to be purchased,or $1,800,000 [$300,000]. (Eff.2/16/96,Register 137;am 3/25/2005,Register 173;am /ef ,Register ) Authority:AS 42.45.250 AS 44.83.080 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 106.900 is amended by adding new subsections to read: (d)In AS 42.45.010,"independent power producer"means a corporation,person, agency,authority,or other legal entity or instrumentality,that is not an electric utility and that owns or operates a facility for the generation or production of energy entirely for use by the residents of one or more municipalities or unincorporated communities recognized by the Department of Commerce,Community,and Economic Development for community revenue sharing under AS 29.60.850 -29.60.879 and 3 AAC 180. (e)In AS 42.45.010 and this chapter,unless the context requires otherwise,"electric utility"has the meaning given the term "public utility"in AS 42.05.990(4)(A).(Eff.2/16/96, Register 137;am_/_s/,Register _) Authority:AS 42.45.010 AS 44.83.080 3 AAC 107 is amended by adding new sections to read: Article 4.Renewable Energy Grant Program. Section 600.Purpose 605.Public purpose requirements of renewable energy grants 610.Eligible applicants 615.Eligible project 620.Public notice of application period;solicitation of grant applications 625.Grant applications Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 630.Disclosure of applications and other materials submitted to the authority;confidentiality 635.Acceptance of applications for consideration;eligibility review 645.Feasibility and public benefit review of grant applications 655.Evaluation of grant applications 660.Ranking of applications 670.Additional information from applicant or grantee 675.Grant agreement 680.Grant closeout;return of unexpended grant money 685.Project operations and maintenance reporting 690.Dispute resolution 695.Definitions for AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 3 AAC 107.600.Purpose.The purpose of 3 AAC 107.600 -3 AAC 107.695 is to establish procedures and criteria for grant applications,the evaluation of applications, recommendations to the legislature for the award of grants,and the administration of grants from the renewable energy grant fund under AS 42.45.045.(Eff.//,Register _-+) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.605.Public purpose requirements of renewable energy grants.The authority may take actions it determines are appropriate to protect the public purpose of renewable energy grants and the public interest in and benefit from the use of grant funds, including Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. (1)limiting recommendations for grants to preliminary development phases,until the authority determines that subsequent phases are feasible,will result in sufficient benefit to the public,and are otherwise appropriate for grants; (2)seeking repayment of some or all of a grant if the grantee fails to comply with the terms and conditions of the grant or,without the prior approval of the authority,sells, conveys,or encumbers a project constructed with renewable energy grant money; (3)requiring review and approval by the Regulatory Commission of Alaska or,if the Regulatory Commission of Alaska does not have or exercise jurisdiction,review and approval by the authority,of rates charged for the use of assets funded in whole or in part with a renewable energy grant and for energy generated by those assets; (4)determining whether an applicant that is not a governmental entity and not a utility regulated by the Regulatory Commission of Alaska will own and operate the project in a manner that will provide sufficient public benefit to support a recommendation under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 for a grant;in making a determination under this paragraph,the authority will consider the applicant's previous experience,its ownership and financial resources,proposed financial oversight,and other factors relevant to the analysis of public benefit.(Eff./_/,Register _) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.610.Eligible applicants.(a)To apply for a renewable energy grant,a person must (1)be an eligible applicant within the meaning given in AS 42.45.045();and 4 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (2)demonstrate,to the satisfaction of the authority and subject to (b)of this section,that the applicant will (A)own the renewable energy project; (B)own,lease,or otherwise control the site upon which the project is located;and (C)upon completion of the project,operate and maintain it for its economic life for the benefit of the public. (b)The authority may authorize conveyance of an ownership interest or of operations or maintenance responsibilities if the authority determines that the conveyance protects the public interest in and benefit from the grant.(Eff.//,Register _) Authority:=AS 42.45.045 AS 44.83.080 3 AAC 107.615.Eligible projects.(a)A project that meets the requirements of AS 42.45.045(f)-(h)is eligible for a renewable energy grant. (b)For purposes of AS 42.45.045(f)(2)(B),a project is a direct use of renewable energy resources if it uses renewable energy resources to generate energy or to make a fuel used to generate energy.(Eff.//,Register _) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.620.Public notice of application period;solicitation of grant applications.(a)The authority will provide public notice of the application period by Register __,2009 COMMERCE,COMMUNITY,AND EC.DEV. publishing notice on the authority's website and on the Alaska Online Public Notice System established under AS 44.62.175. (b)The authority will publish on its website a request for grant applications that includes the date,time,place,and method for delivering applications,and a description of the application requirements.(Eff. / /,Register _-+d) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.625.Grant applications.(a)An applicant must submit an application to the authority within the time specified in the request for applications with the documentation and in the format required in the request for grant applications.The application must include (1)information showing to the satisfaction of the authority that the applicant is an eligible applicant within the meaning given in AS 42.45.045(J and under 3 AAC 107.610; (2)information showing to the satisfaction of the authority that the project is eligible under AS 42.45.045(f)-(h)and 3 AAC 107.615; (3)information showing to the satisfaction of the authority that the project is technically and economically feasible; (4)a description of the public benefit from the project; (5)a description of the project scope of work,schedule,milestones,and budget; the description must include an estimate of total project costs,the amount of grant money requested,and identification of other money or resources that are committed to the purposes of the grant; (6)a description of the applicant's financial resources and financial capability of 6 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. developing the project,including matching resources and other financing necessary for project development;and (7)additional information as required in the request for grant applications or under 3 AAC 107.670. (b)As it considers necessary to obtain complete or additional information,the authority will require applicants,including applicants who have previously received grants for preliminary development phases or partial grants,to submit new applications for each solicitation to which the applicants are responding.(Eff./_/,Register _) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.630.Disclosure of applications and other materials submitted to the authority;confidentiality.(a)A grant application and other materials submitted to the authority under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 are subject to disclosure under AS 40.25.100 -40.25.295 (Alaska Public Records Act)and 2 AAC 96,unless the authority determines that the material is protected from disclosure under AS 40.25.120. (b)A person submitting a grant application or other material under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 may request that the authority keep certain information confidential.The request must (1)clearly designate the specific information to be kept confidential;and (2)specifically describe the basis for asserting that the information is protected from disclosure under AS 40.25.120;if the person believes the information is protected as a trade secret or business proprietary information,the description must include analysis of whether the 7 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. person's commercial privacy interest in protecting the information from disclosure outweighs the public interest in obtaining the information. (c)If the authority receives a public records request and determines the information requested is protected from disclosure under AS 40.25.120,the authority will not release the information except to authority personnel and contractors for purposes of evaluating the person's application.If the authority determines the information may not be protected from disclosure under AS 40.25.120,the authority will notify the person submitting the information,who is responsible at the person's own expense for seeking judicial relief or taking other action necessary to protect the material from disclosure under AS 40.25.100 -40.25.295.(Eff. _/_/___,Register__) Authority:-Art.1,sec.22,Ak Const.AS 40.25.120 AS 44.83.080 AS 40.25.110 AS 42.45.045 3 AAC 107.635.Acceptance of applications for consideration;eligibility review. The authority will accept for consideration,for a recommendation for a grant,each application received on or before the deadline established in the request for applications.The authority will determine if the application is complete,is submitted by an eligible applicant within the meaning given in AS 42.45.045()and under 3 AAC 107.610,and is for a project that is eligible under AS 42.45.045(f)-(h)and 3 AAC 107.615.The authority will reject applications that fail to meet those requirements,and will notify each applicant whose application is rejected of the authority's decision.(Eff._/ /_,Register__i+) Authority:AS 42.45.045 AS 44.83.080 8 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 107.645.Feasibility and public benefit review of grant applications.(a)For each application not rejected under 3 AAC 107.635,the authority will perform a benefit and feasibility review,in which the authority will review (1)project management,development,and operations,including whether (A)the proposed schedule is clear,realistic,and described in adequate detail; (B)the costs and savings estimates for project development,operation, maintenance,fuel,and other project items are realistic; (C)the project team's method of communicating,monitoring,and reporting development progress is described in adequate detail;and (D)logistical,business,and financial arrangements for operating and selling energy from the completed project are reasonable and described in adequate detail; (2)qualifications and experience,including whether (A)the applicant,partners,and contractors have sufficient knowledge and experience to successfully complete and operate the project; (B)the project team has staffing,time,and other resources to successfully complete and operate the project; (C)the project team is able to understand and address technical, economic,and environmental barriers to successful project completion and operation; and (D)the project uses local labor and trains a local labor workforce; 9 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (3)technical feasibility,including whether (A)the renewable energy resource is available on a sustainable basis,and project permits and other authorizations can reasonably be obtained; (B)a site is available and suitable for the proposed energy system; (C)project technical and environmental risks are reasonable; (D)the proposed energy system can reliably produce and deliver energy as planned;and (E)if a demonstration project is being proposed, (i)application in other areas of the state,or another specific benefit of the proposed project,is likely; (il)the need for the project is shown;and (iii)the risks of the proposed system are reasonable and warrant demonstration;and (4)economic feasibility and benefits,including whether (A)the project is shown to be economically feasible; (B)the project has an adequate financing plan for completion of the grant-funded phase,and has considered options for financing subsequent phases of the project;and (C)other public benefits are demonstrated. (b)The authority will reject applications that it determines under (a)of this section not to be technically and economically feasible,or not to provide sufficient public benefit,and will notify each applicant whose application is rejected of the reasons for rejection.(Eff. 10 Register __,2009 COMMERCE,COMMUNITY,AND EC.DEV. a |,Register ) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.655.Evaluation of grant applications.(a)For each application not rejected under 3 AAC 107.645,the authority will perform an evaluation for the purpose of ranking applications and making recommendations to the legislature for grants.The evaluation criteria include (1)the extent to which the proposed project serves an area of the state in which the average cost of energy to each resident of the area exceeds the average cost to each resident of other areas of the state;the authority will give the most weight to the criterion in this paragraph; (2)the extent to which the applicant will provide matching resources for the project;the authority will give significant weight to the criterion in this paragraph; (3)the extent to which a grant to the project,considered with other recommended grants,achieves a statewide balance of grant money;the authority will give significant weight to the criterion in this paragraph; (4)the likely economic and technical feasibility of the project;as part of its evaluation under this section,the authority will consider the results of the review performed under 3 AAC 107.645; (5)the public benefits of the project,including economic benefits;as part of its evaluation under this section,the authority will consider the results of the review performed under 3 AAC 107.645; 11 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. (6)the ability of the applicant to finance,operate,and maintain the project for the life of the project; (7)local support for the project; (8)the readiness of the applicant to proceed with the phases of the project proposed for a grant; (9)other projects existing or proposed in the same area; (10)the applicant's previous compliance with the requirements of AS 42.45.045, 3 AAC 107.600 -3 AAC 107.695,requests for applications,and grant agreements;and (11)other project-specific criteria as identified in the request for applications. (b)Asa result of the evaluation under (a)of this section,the authority may recommend a grant in the amount requested by the applicant,decline to recommend a grant for a project,or recommend a grant in an amount or for project phases different from what the applicant requested.In recommending a grant for phases different from what the applicant requested,the authority may limit its recommendation to a grant for one or more preliminary project phases before recommending a grant for project construction.(Eff./_/,Register _) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.660.Ranking of applications.(a)To establish a statewide balance of recommended projects,the authority will provide to the advisory committee established in AS 42.45.045(i)a statewide and regional ranking of all applications recommended for grants. (b)In consultation with the advisory committee established in AS 42.45.045(i),the authority will 12 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (1)make a final prioritized list of all recommended projects,giving significant weight to providing a statewide balance of grant money,and taking into consideration the amount of money that may be available,number of projects within each region,regional rank, and statewide rank; (2)include in the final prioritized list any changes to the recommendations made following the evaluation under 3 AAC 107.655;and (3)include in the final prioritized list a list of applications that were rejected under 3 AAC 107.635 -3 AAC 107.645. (c)The authority will publish the final prioritized list on its website,and will provide it to the legislature in accordance with AS 42.45.045(d)(3).Award of a grant is subject to legislative appropriation.(Eff._/__-/_ --s«,Register__) Authority:=AS 42.45.045 AS 44.83.080 3 AAC 107.670.Additional information from applicant or grantee.(a)As it considers necessary to perform a complete review of an application or project,and at any stage in the review,evaluation,recommendation,or award process under 3 AAC 107.600 -3 AAC 107.695,the authority will request that an applicant or grantee provide additional information. Requests for information may include a request for information sufficient for the authority to confirm that an (1)application meets the requirements of the request for applications;or (2)applicant or grantee is willing and able to adjust the project scope and budget as required by the authority in making a recommendation or as required by the legislature in 13 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. approving a grant. , (b)If.an applicant or grantee fails to provide timely or adequate information in response to a request from the authority,the authority may reject the application,modify the authority's recommendations to the legislature,or cancel a notice of intent to award a grant.(Eff. _//__,Register___-) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.675.Grant agreement.As a condition for a grant under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695,the applicant must sign a grant agreement that the authority prepares and that contains the terms and conditions of the grant,including (1)a description of the project to be financed with the grant; (2)a project schedule;the authority may make one or more disbursements of grant money conditional upon (A)completion and approval by the authority of pre-construction phases of the project; (B)the grantee demonstrating that it has site control for the project; (C)the grantee demonstrating that it has one or more permits or authorizations required for construction of the project; (D)the grantee's successful completion of other activities or objectives set under the project schedule; (3)requirements for project management; (4)a description of allowable costs; 14 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. (5)requirements for the documentation of expenditures and procurements; (6)procedures for making grant payments to the grantee; (7)requirements for the grantee's accounting and reporting; (8)requirements for the grantee's maintenance and retention of project records; (9)hiring preferences applicable under AS 36.10.150 -36.10.180 and 8 AAC 30.064 -8 AAC 30.088 to the grantee and its agents,contractors,and subcontractors; (10)procedures for verifying the provision of the grantee's matching resources to the project;and (11)other terms and conditions that the authority determines are appropriate to ensure the public purpose of and maximize the public benefit from the grant. (b)Ifan applicant fails to execute the grant agreement within 30 days after receiving it from the authority,the authority may cancel a notice of intent to award the grant and may offer the grant money to another eligible applicant,subject to appropriation and approval by the legislature.(Eff.//,Register__) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.680.Grant closeout;return of unexpended grant money.Upon completion of the grant-financed or termination of the grant,the authority will close out the grant and the grantee shall return to the authority any grant money and interest on grant money not spent on project work under the terms and conditions of the grant agreement.The grant agreement may provide that specified obligations of the grantee survive grant closeout.(Eff. /_/,Register ) 15 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.685.Project operations and maintenance reporting.For a project constructed with a renewable energy grant,the grantee shall provide to the authority reports on project operations and maintenance for the periods and with the information that the authority specifies in the grant agreement.The authority may require information on project operations and maintenance activities and cost,other costs of the project,energy output,estimated fuel displacement resulting from the energy output,discussion of operational issues,and other information useful to the authority for its evaluation of the project and the grant.Ifthe grantee fails to provide information as required under this section and in the grant agreement,the authority may determine the grantee ineligible for recommendations for future renewable energy grants or ineligible for other future grants from the authority.(Eff./_-_/,Register _) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.690.Dispute resolution.A person who has a claim concerning a grant awarded under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 may submit that claim in accordance with 3 AAC 108.915 -3 AAC 108.920.(Eff./_-/,Register ) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.695.Definitions for AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695. (a)In AS 42.45.045, (1)"independent power producer"means a corporation,person,agency, 16 Register __,2009 COMMERCE,COMMUNITY,AND EC.DEV. authority,or other legal entity or instrumentality,that is not an electric utility and that owns or operates a facility for the generation or production of energy entirely for use by the residents of one or more municipalities or unincorporated communities recognized by the Department of Commerce,Community,and Economic Development for community revenue sharing under AS 29.60.850 -29.60.879 and 3 AAC 180; (2)"wasteheat recovery"means systems for the recovery of unused heat from systems or processes in operation when the applicant applies for a renewable energy grant. (b)In AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695, (1)"matching funds"or "matching resources" (A)means those resources that the grantee dedicates for the completion of the project; (B)includes (i)cash; (ii)loan proceeds;and (iii)grantee-provided equipment,labor,or other materials or services needed for the completion of the project; (2)"preliminary development phase"includes (A)feasibility studies; (B)reconnaissance studies; (C)energy resource monitoring; (D)design phases;and (E)obtaining required permits and authorizations; 17 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (3)"renewable energy resources"has the meaning given in AS 42.45.045(. (c)In3 AAC 107.600 -3 AAC 107.695,unless the context requires otherwise,"grant"or "renewable energy grant”means a grant recommended or awarded under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695.(Eff./_/,Register _) Authority:AS 42.45.045 AS 44.83.080 3 AAC 108.910 is repealed and readopted to read: 3 AAC 108.910.Protests.(a)In accordance with this section,and except as otherwise provided by statute or required as a condition of assistance received by the authority under 3 AAC 105.020,an interested party may protest the authority's award of a contract,the authority's proposed award of a contract,or a solicitation by the authority for supplies,services, professional services,or construction. (b)The protest must be submitted to the authority's procurement manager in writing,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 solicitation at issue; (4)a detailed statement of the legal and factual grounds for the protest,including copies of relevant documents;and (5)astatement of the remedy requested;in a protest of a procurement action,the protester is limited to remedies that would apply in a protest under AS 36.30. (c)A protest based on alleged improprieties in a bid or solicitation must be received by 18 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. the authority at least 10 days before the due date of the bid or proposal.A protest based on alleged improprieties in an award of a contract or a proposed award of a contract must be filed within 10 days after the procurement officer issues a notice of intent to award the contract.For good cause shown,the authority may change a deadline set in this subsection or accept a late filed protest. (d)Upon receiving a protest,the authority will provide notice of the protest to other interested persons. (e)The authority's procurement manager shall issue a written decision on a procurement protest within 15 days after receipt of all relevant information from the protester and the authority,unless the executive director extends the time for decision for good cause shown.(Eff. 5/12/2005,Register 174;am_s/s /,Register _) Authority:AS 42.45.045 AS 44.83.080 3 AAC 108 is amended by adding new sections to read: 3 AAC 108.915.Contract and grant claims.(a)In accordance with this section,and except as otherwise provided by statute or required as a condition of assistance received by the authority under 3 AAC 105.020,a person who has a claim against the authority under a contract or grant agreement with the authority may submit that claim to the authority. (b)The claim must be submitted to the contract manager or grant manager in writing, and must include (1)the name,address,and telephone number of the claimant; (2)the signature of the claimant or the claimant's representative; 19 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. (3)identification of the contract or grant at issue; (4)a detailed statement of the legal and factual grounds for the claim,including copies of relevant documents;and (5)a statement of the remedy requested. (c)A claim under a contract or grant must be received by the authority within 30 days after the claimant becomes aware of the basis of the claim or should have known of the basis of the claim,except that the information required in (b)(4)and (5)of this section and any other relevant information must be received by the authority within 60 days after the claimant submits the claim.For good cause shown,the authority may change a deadline set in this subsection or accept a late filed protest. (d)Upon receiving a claim,the authority will provide notice of the claim to other interested persons. (e)The authority's contract manager or grant manager shall issue a written decision on a claim within 90 days after receipt of all relevant information from the claimant and the authority, unless the executive director extends the time for decision for good cause shown.(Eff. __/_/__,Register__i) Authority:AS 42.45.045 AS 44.83.080 3 AAC 108.920.Appeals.(a)A protester who is dissatisfied with a decision of the procurement manager under 3 AAC 108.910,a claimant who is dissatisfied with a decision of the grant manager or contract manager under 3 AAC 108.915,or a protester dissatisfied with other action of the authority,may appeal the decision to the board of directors of the authority or, 20 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. if the board of directors has authorized the executive director to make the final decision of the authority,to the executive director.A protester or claimant must submit an appeal within 10 days after receiving the decision to be appealed. (b)Upon receiving an appeal under (a)of this section,the executive director shall review the protest or claim,relevant information from agency staff,including any decision of the procurement manager,contract manager,or grant manager,and other relevant information,and shall (1)prepare a final decision or a recommended decision for consideration by the board of directors of the authority; (2)conduct a hearing and prepare a final decision or recommended decision for consideration by the board of directors of the authority; (3)designate a hearing officer to conduct a hearing and prepare a recommended decision for consideration by the executive director or the board of directors of the authority;or (4)refer the matter to a mediator or arbitrator for resolution,subject to approval of the resolution by the executive director or the board of directors of the authority. (c)The board of directors of the authority will adopt a recommended decision prepared under (b)of this section,adopt the recommended decision with modifications,reject the recommended decision,or return the recommended decision to the executive director or hearing officer for additional findings. (d)In conducting a hearing under this section,the hearing officer or executive director may (1)hold prehearing conferences to settle,simplify,or identify the issues in a 21 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. proceeding,or to consider other matters that may aid in the expeditious disposition of the proceeding; (2)require parties to state their positions concerning the various issues in the proceeding; (3)require parties to produce for examination those relevant witnesses and documents under their control; (4)rule on motions and other procedural matters; (5)regulate the course of the hearing and conduct of the participants; (6)establish time limits for submission of motions or memoranda; (7)impose appropriate sanctions against a person who fails to obey an order relating to the hearing procedures,including (A)prohibiting the person from asserting or opposing designated claims or defenses or introducing designated matters into evidence; (B)excluding all testimony of an unresponsive or evasive witness;and (C)excluding a person from further participation in the hearing; (8)take official notice of a material fact not appearing in evidence,if the fact among the traditional matters subject to judicial notice;and (9)administer oaths or affirmations. (e)The board of directors of the authority may delegate to the executive director authority to make the final decision regarding protests of procurement actions,claims under contracts or grants,and protests of other actions of the authority,and contract claims,as the board determines is appropriate. 22 Register|,----s-2009 COMMERCE,COMMUNITY,AND EC.DEV. (f)A decision by the board of directors of the authority,or by the executive director on matters delegated to the executive director,is a final decision for purposes ofjudicial review. (Eff.//_,Register _i+) Authority:AS 42.45.045 AS 44.83.080 23 $-12-OF c=»ALASKA $S Kia €£==D ENERGY AUTHORITYweskAlaskaindustrialDevelopmentandExportAuthority MEMORANDUM TO:.Board of Directors Alaska Energy Authority FROM:all[KOT raagensonExecutiveDirector DATE:August 13,2009 SUBJECT:Resolution No.2009-03 Adoption AEA Regulations AEA staff proposes to the board a few minor changes to the attached regulations..The changes are shown in "track-changes”in the attachment,at pages 10,11,12,and 13,and are summarized below. e p.10:In 3 AAC 107.645(a)(4)(feasibility and public benefit review of grant applications), "and”is changed to "or”to indicate that other public benefits are a separate subset of economic feasibility and benefits. e p.11:A new section 3 AAC 107.650 (requests for reconsideration)is re-added to provide a process for requests for reconsideration of rejected applications.This was in the initial public review draft regulations in a slightly different form.Discussions with the Department of Law raised concerns that led to this section being removed from the regulations provided in the board package.The revised version shown in the attachment is recommended by staff and acceptable to Department of Law. e p.12-13:In 3 AAC 107.655 (evaluation of grant applications)"other projects existing or proposed in the same area”is deleted as an evaluation criterion,and in 3 AAC 107.660 (ranking of applications)number of projects within each region”is changed to read ""number and type of projects within each region,”to better reflect when and how other projects are considered in the evaluation and ranking process. Staff recommends approval of Resolution No.2009-03 with the changes to the regulations as proposed. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org ©907/771-3000 *FAX 907/771-3044 ®Toll Free (Alaska Only)888/300-8534 #www.akenergyauthority.org Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 106.120(a)(2)(A)(vi)is repealed: (vi)repealed /_/; (Eff.2/16/96,Register 137;am_of/,Register ) Authority:AS 42.45.010 AS 44.83.080 3 AAC 106.300(3)is amended to read: (3)written endorsement from the governing body of each [THE]community for which a bulk fuel loan is sought,if the applicant is a person generating power or Selling fuel in the community; (Eff.2/16/96,Register 137;am 3/25/2005,Register 173;am__/_/a ,Register |)- Authority:AS 42.45.250 AS 44.83.080 3 AAC 106.310(4)is amended to read: (4)the amount of the loan,added to the amounts ofall other bulk fuel loans to the same borrower in the same fiscal year,may not exceed $750,000,or,if the borrower is a cooperative corporation organized under AS 10.15 or an electric cooperative organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more than one community,may not exceed the lesser of $750,000 multiplied by the number of eligibleSea communities on whose behalf the bulk fuel is to be purchased,or $1,800,000 [$300,000]. (Eff.2/16/96,Register 137;am 3/25/2005,Register 173;am__/__/,Register ) Authority:AS 42.45.250 AS 44.83.080 Register _sy 2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 106.900 is amended by adding new subsections to read:: (d)In AS 42.45.010,"independent power producer”means a corporation,person, agency,authority,or other legal entity or instrumentality,that is not an electric utility and that owns or operates a facility for the generation or production of energy entirely for use by the residents of one or more municipalities or unincorporated communities recognized by the Department of Commerce,Community,and Economic Development for community revenue sharing under AS 29.60.850 -29.60.879 and 3 AAC 180. (e)In AS 42.45.010 and this chapter,unless the context requires otherwise,"electric utility”has the meaning given the term "public utility”in AS 42.05.990(4)(A).(Eff.2/16/96, Register 137;am_/__/__,Register___) Authority:AS 42.45.010 AS 44.83.080 3 AAC 107 is amended by adding new sections to read: Article 4.Renewable Energy Grant Program. Section 600.Purpose 605.Public purpose requirements of renewable energy grants 610.Eligible applicants ) 615.Eligible project >620.Public notice of application period;solicitation of grant applications 625.Grant applications Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 630.Disclosure of applications and other materials submitted to the authority;confidentiality 635.Acceptance of applications for consideration;eligibility review 645.Feasibility and public benefit review of grant applications 650.Requests for Rreconsideration 655.Evaluation ofgrant applications 660.Ranking of applications 670.Additional information from applicant or grantee 675.Grant agreement 680.Grant closeout;return of unexpended grant money - Project operations and maintenance reporting 690.Dispute resolution - 695.Definitions for AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 3 AAC 107.600.Purpose.The purpose of 3 AAC 107.600 -3 AAC 107.695 is to establish procedures and criteria for grant applications,the evaluation of applications, recommendations to the legislature for the award of grants,and the administration of grants from _ the renewable energy grant find under AS 42.45.045.(Eff s/s /»Register___-+) 'Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.605.Public purpose requirements of renewable energy grants.The authority may take actions it determines are appropriate to protect the public purpose of renewable energy grants and the public interest in and benefit from the use of grant funds, 3 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. including (1)limiting recommendations for grants to preliminary development phases,until the authority determines that subsequent phases are feasible,will result in sufficient benefit to the public,and are otherwise appropriate for grants; (2)seeking repayment of some or all of a grant if the grantee fails to comply with the terms and conditions of the grant or,without the prior approval of the authority,sells, conveys,or encumbers a project constructed with renewable energy grant money; (3)requiring review and approval by the Regulatory Commission of Alaska or,if the Regulatory Commission of Alaska does not have or exercise jurisdiction,review and approval by the authority,ofrates charged for the use of assets funded in wholeorin part witha renewable energy grant and for energy generated by those assets; (4)determining whether an applicant that is not a governmental entity and not a utility regulated by the Regulatory Commission of Alaska will own and operate the project in a manner that will provide sufficient public benefit to support a recommendation under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 for a grant;in making a determination under this paragraph,the authority will consider the applicant's previous experience,its ownership and financial resources,proposed financial oversight,and other factors relevant to the analysis of public benefit.(Eff.//,Register ) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.610.Eligible applicants.(a)To apply for a renewable energy grant,a person must Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (1)be an eligible applicant within the meaning given in AS 42.45.045();and (2)demonstrate,to the satisfaction of the authority and subject to (b)of this section,that the applicant will (A)own the renewable energy project; (B)own,lease,or otherwise control the site upon which the project is located;and (C)upon completion of the project,operate and maintain it for its economic life for the benefit of the public. (b)The authority may authorize conveyance of an ownership interest or of operations or maintenance responsibilities if the authority determines that the conveyance protects the public interest in and benefit from the grant.(Eff.//,Register ) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.615.Eligible projects.(a)A project that meets the requirements of AS 42.45.045(f)-(h)is eligible for a renewable energy grant. (b)For purposes of AS 42.45.045(f)(2)(B),a project isa direct use ofrenewable energy _ resources if it uses renewable energy resources to generate energy or to make a fuel used to generate energy.(Eff.//,Register+d) | Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.620.Public notice of application period;solicitation of grant applications.(2)The authority will provide public notice of the application period by > Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. publishing notice on the authority's website and on the Alaska Online Public Notice System established under AS 44.62.175. (b)The authority will publish on its website a request for grant applications that includes the date,time,place,and method for delivering applications,and a description of the application requirements.(Eff.//,Register_+) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.625.Grant applications.(a)An applicant must submit an application to the authority within the time specified in the request for applications with the documentation and in the format required in the request for grant applications.The application must include _ (1)information showing to the satisfaction of the authority that the applicant is an eligible applicant within the meaning given in AS 42.45.045()and under 3 AAC 107.610; (2)information showing tothe satisfaction of the authority that the project is eligible under AS 42.45.045(f)-(h)and 3 AAC 107.615; (3)information showing to the satisfaction of the authority that the project is technically and economically feasible; (4)a description of the public benefit from the project; (5)a description of the project scope of work,schedule,milestones,and budget; the description must include an estimate of total project costs,the amount of grant money requested,and identification of other money or resources that are committed to the purposes of the grant; (6)a description of the applicant's financial resources and financial capability of 6 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. developing the project,including matching resources and other financing necessary for project development;and (7)additional information as required in the request for grant applications or under 3 AAC 107.670. (b)As it considers necessary to obtain complete or additional information,the authority will require applicants,including applicants who have previously received grants for preliminary development phases or partial grants,to submit new applications for each solicitation to which the applicants are responding.(Eff.//_,Register___-) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.630.Disclosure of applications and other materials submitted to the authority;confidentiality.(a)A grant application and other materials submitted to the authority under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 are subject to disclosure under AS 40.25.100 -40.25.295 (Alaska Public Records Act)and 2 AAC 96,unless the authority determines that the material is protected from disclosure under AS 40.25.120. ._.(b)A person submitting a grant application or other material underAS42.45.045 and 3 AAC 107.600 -3 AAC 107.695 may request that the authority keep certain information confidential.The request must (1)clearly designate the specific information to be kept confidential;and (2)specifically describe the basis for asserting that the information is protected from disclosure under AS 40.25.120;if the person believes the information is protected as a trade secret or business proprietary information,the description must include analysis of whether the 7 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. person's commercial privacy interest in protecting the information from disclosure outweighs the public interest in obtaining the information. (c)If the authority receives a public records request and determines the information requested is protected from disclosure under AS 40.25.120,the authority will not release the information except to authority personnel and contractors for purposes of evaluating the person's application.If the authority determines the information may not be protected from disclosure under AS 40.25.120,the authority will notify the person submitting the information,who is responsible at the person's own expense for seeking judicial relief or taking other action necessary to protect the material from disclosure under AS 40.25.100 -40.25.295.(Eff. Authority:Art.1,sec.22,Ak Const.AS 40.25.120 AS 44.83.080 AS 40.25.110 AS 42.45.045 3 AAC 107.635.Acceptance of applications for consideration;eligibility review. The authority will accept for consideration,for a recommendation for a grant,each application received on or before the deadline established in the request for applications.The authority will determine if the application is complete,is submitted by an eligible applicant within the meaning given in AS 42.45.045(/)and under 3 AAC 107.610,and is for a project that is eligible under AS 42.45.045(f)-(h)and 3 AAC 107.615.The authority will reject applications that fail to meet those requirements,and will notify each applicant whose application is rejected of the authority's decision.(Eff.// _,Register__-) Authority:AS 42.45.045 AS 44.83.080 8 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. | 3 AAC 107.645.Feasibility and public benefit review of grant applications.(a)For each application not rejected under 3 AAC 107.635,the authority will perform a benefit and feasibility review,in which the authority will review (1)project management,development,and operations,including whether (A)the proposed schedule is clear,realistic,and described in adequate detail; (B)the costs and savings estimates for project development,operation, maintenance,fuel,and other project items are realistic; (C)the project team's method of communicating,monitoring,and reporting development progress is described in adequate detail;and (D)logistical,business,and financial arrangements for operating and selling energy from the completed project are reasonable and described in adequate detail; (2)qualifications and experience,including whether (A)the applicant,partners,and contractors have sufficient knowledge and experience to successfully complete and operate the project;- (B)the project team has staffing,time,and other resources to successfully complete and operate the project; (C)the project team is able to understand and address technical, economic,and environmental barriers to successful project completion and operation; and (D)the project uses local labor and trains a focal labor workforce; 9 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (3)technical feasibility,including whether (A)the renewable energy resource is available on a sustainable basis,and project permits and other authorizations can reasonably be obtained; (B)a site is available and suitable for the proposed energy system; (C)project technical and environmental risks are reasonable; (D)the proposed energy system can reliably produce and deliver energy as planned;and (E)if a demonstration project is being proposed, (i)application in other areas of the state,or another specific benefit of the proposed project,is likely:Oe (ii)the need for the project is shown;and (iii)the risks of the proposed system are reasonable and warrant demonstration;and (4)economic feasibility and benefits,including whether (A)the project is shown to be economically feasible; (B)the project has an adequate financing plan for completion of the grant-funded phase,and has considered options for financing subsequent phases of the project;orand (C)other public benefits are demonstrated. (b)The authority will reject applications that it determines under (a)ofthis section not to be technically and economically feasible,or not to provide sufficient public benefit,and will *notify each applicant whose application is rejected of the reasons for rejection.(Eff. 10 Register,2009 COMMERCE,COMMUNITY,AND EC,DEV. _fof »Register ) Authority:AS 42.45.045 AS 44.83 .080 3A4AC-107.656,-Requestsforreconsideraion(a}Anasplcantwheseapstcationis +-(Formatted:Indent:First line:0.5” executive director of the authority reconsider the decision of the authority's staff to reject the applheation by submitting a-written request fer reconsideration.The request must be in writing 3 AAC 107,650.Requests for reconsideration.(a)An applicant whose application is rejected in the eligibility review or the feasibility and public benefit review may request that the executive director of the authority reconsider the decision of the authority's staff to reject the application.The request for reconsideration must be in writing,including bv electronic mail, must state the basis for reconsideration,and must be received by the authority no more than ten davs after the applicant has provided written notice of the rejection.including notice by electronic mail. tH Register,2009 COMMERCE,COMMUNITY,AND EC,DEV. (b)The executive director may concur with the decision of staff and reject the application,request additional information from the applicant before making a decision,or require further consideration ofthe application under 3 AAC 107.645 or 3 AAC 107.655 if the executive director determines that the authority erred in its rejection of the application.(Eff. /_/}_Register ) Authority:AS 42.45.45 AS 44.83.080 «{Formatted:Indent:First line:0.5" 3 AAC 107.655.Evaluation of grant applications.(a)For each application not rejected under 3 AAC 107.645,the authority will perform an evaluation for the purpose of |ranking applications and making recommendations to the legislature for grants.The evaluation criteria include (1)the extent to which the proposed project serves an area of the state in which the average cost of energy to each resident of the area exceeds the average cost to each resident of other areas of the state;the authority will give the most weight to the criterion in this paragraph; (2)the extent to which the applicant will provide matching resources for the project;the authority will give significant weight to the criterion in this paragraph; (3)the extent to which a grant to the project,considered with other recommended grants,achieves a statewide balance of grant money;the authority will give significant weight to the criterion in this paragraph; Register,-Ss--ss«20099 COMMERCE,COMMUNITY,AND EC.DEV. (4)the likely economic and technical feasibility of the project;as part of its evaluation under this section,the authority will consider the results of the review performed under 3 AAC 107.645; (5)the public benefits of the project,including economic benefits;as part ofits evaluation under this section,the authority will consider the results of the review performed under 3 AAC 107.645; (6)the ability of the applicant to finance,operate,and maintain the project for the life of the project; (7)local support for the project; (8)the readiness of the applicant to proceed with the phases of the project proposed for a grant; (10)the applicant's previous compliance with the requirements of AS 42.45.045, 3 AAC 107.600 -3 AAC 107.695,requests for applications,and grant agreements;and (11)other project-specific criteria as identified in the request for applications. (b)Asa result of the evaluation under (a)of this section,the authority may recommend a grant in the amount requested by the applicant,decline to recommenda grant for a project,or recommend a grant in an amount or for project phases different from what the applicant requested.In recommending a grant for phases different from what the applicant requested,the authority may limit its recommendation to a grant for one or more preliminary project phases before recommending a grant for project construction.(Eff.//,Register ) Authority:AS 42.45.045 AS 44.83.080 13 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 107.660.Ranking of applications.(a)To establish a statewide balance of recommended projects,the authority will provide to the advisory committee established in AS 42.45.045(i)a statewide and regional ranking of all applications recommended for grants. (b)In consultation with the advisory committee established in AS 42.45.045(1),the authority will (1)make a final prioritized list of all recommended projects,giving significant weight to providing a statewide balance of grant money,and taking into consideration the amount of money that may be available,number and types of projects within each region, regional rank,and statewide rank;| | (2)include in the final prioritized list any changes to the recommendations made following the evaluation under 3 AAC 107.655;and (3)include in the final prioritized list a list of applications that were rejected under 3 AAG 107.635 -3 AAC 107.645. (c)The authority will publish the final prioritized list on its website,and will provide it to the legislature in accordance with AS 42.45.045(d)(3).Award of a grant is subject to legislative appropriation.(Eff.//i,Register_-) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.670.Additional information from applicant or grantee.(a)Asit considers necessary to perform a complete review of an application or project,and at any stage in the review,evaluation,recommendation,or award process under 3 AAC 107.600 -3 AAC I4 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 107.695,the authority will request that an applicant or grantee provide additional information. Requests for information may include a request for information sufficient for the authority to confirm that an (1)application meets the requirements of the request for applications;or (2)applicant or grantee is willing and able to adjust the project scope and budget as required by the authority in making a recommendation or as required by the legislature in approving a grant. (b)If an applicant or grantee fails to provide timely or adequate information in response to a request from the authority,the authority may reject the application,modify the authority's recommendations to the legislature,or cancel a notice of intent to award a grant.(Eff. sf ,Register ) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.675.Grant agreement.As a condition for a grant under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695,the applicant must sign a grant agreement that the authority prepares and that contains the terms and conditions of the grant,including (1)a description of the project to be financed with the grant; (2)a project schedule;the authority may make one or more disbursements of grant money conditional upon (A)completion and approval by the authority of pre-construction phases of the project; (B)the grantee demonstrating that it has site control for the project; Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (C)the grantee demonstrating that it has one or more permits or authorizations required for construction of the project; (D)the grantee's successful completion of other activities or objectives set under the project schedule; (3)requirements for project management; (4)a description of allowable costs; (5)requirements for the documentation of expenditures and procurements; (6)procedures for making grant payments to the grantee; (7)requirements for the grantee's accounting and reporting; (8)requirements for the grantee's maintenance and retention of project records; (9)hiring preferences applicable under AS 36.10.150 -36.10.180 and 8 AAC 30.064 -8 AAC 30.088 to the grantee and its agents,contractors,and subcontractors; (10)procedures for verifying the provision of the grantee's matching resources to the project;and (11)other terms and conditions that the authority determines are appropriate to ensure the public purpose of and maximize the public benefit from the grant. (b)Ifan applicant fails to execute the grant agreement within 30 days after receiving it from the authority,the authority may cancel a notice of intent to award the grant and may offer the grant money to another eligible applicant,subject to appropriation and approval by the legislature.(Eff.//,Registerss) Authority:AS 42.45.045 AS 44.83.080 16 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 107.680.Grant closeout;return of unexpended grant money.Upon completion of the grant-financed or termination of the grant,the authority will close out the grant and the grantee shall return to the authority any grant money and interest on grant money not spent on project work under the terms and conditions of the grant agreement.The grant agreement may provide that specified obligations of the grantee survive grant closeout.(Eff. _//_,Register__-) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.685.Project operations and maintenance reporting.For a project constructed with a renewable energy grant,the grantee shall provide to the authority reports on project operations and maintenance for the periods and with the information that the authority specifies in the grant agreement.The authority may require information on project operations and maintenance activities and cost,other costs of the project,energy output,estimated fuel displacement resulting from the energy output,discussion of operational issues,and other. 'information useful to the authority for its evaluation of the project and the grant.If the grantee fails to provide information as required under this section and in the grant agreement,the authority may determine the grantee ineligible for recommendations for future renewable energy grants or ineligible for other future grants from the authority.(Eff.__/_-/,Register ) Authority:AS 42.45.045 AS 44.83.080 17 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 107.690.Dispute resolution.A person who has aclaim concerning a grant awarded under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 may submit that claim in accordance with 3 AAC 108.915 -3 AAC 108.920.(Eff.rep ,Register__) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.695.Definitions for AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695. (a)In AS 42.45.045, (1)"independent power producer"means a corporation,person,agency, authority,or other legal entity or instrumentality,that is not an electric utility and that owns or }operates a facility for the generation or production of energy entirely for use by the residents of one or more municipalities or unincorporated communities recognized by the Department of Commerce,Community,and Economic Development for community revenue sharing under AS 29.60.850 -29.60.879 and 3 AAC 180; (2)""wasteheat recovery"means systems for the recovery of unused heat from systems or processes in operation when the applicant applies for a renewable energy grant. (b)In AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695, (1)"matching funds”or "matching resources” (A)means those resources that the grantee dedicates for the completion of "the project; (B)includes (i)cash; (ii)loan proceeds;and 18 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. (ili)grantee-provided equipment,labor,or other materials or services needed for the completion of the project; (2)"preliminary development phase"includes (A)feasibility studies; (B)reconnaissance studies; (C)energy resource monitoring; (D)design phases;and (E)obtaining required permits and authorizations; (3)"renewable energy resources”has the meaning given in AS 42.45.045(/). (c)In3 AAC 107.600 -3 AAC 107.695,unless the context requires otherwise,"grant"or "renewable energy grant"means a grant recommended or awarded under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695.(Eff.//,Register ) Authority:AS 42.45.045 AS 44.83.080 3 AAC 108.910 is repealed and readopted to read: 3 AAC 108.910.Protests.(a)In accordance with this section,and except as otherwise provided by statute or required as a condition of assistance received by the authority under 3 AAC 105.020,an interested party may protest the authority's award of a contract,the authority's proposed award of a contract,or a solicitation by the authority for supplies,services, professional services,or construction, (b)The protest must be submitted to the authority's procurement manager in writing,and must include 19 Register,2009 COMMERCE,COMMUNITY,AND EC,DEV. (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 solicitation at issue; (4)a detailed statement of the legal and factual grounds for the protest,including copies of relevant documents;and (5)a statement of the remedy requested;in a protest of a procurement action,the protester is limited to remedies that would apply in a protest under AS 36.30. (c)A protest based on alleged improprieties in a bid or solicitation must be received by the authority at least 10 days before the due date of the bid or proposal.A protest based on alleged improprieties in an award of a contract or a proposed award ofa contract must be filed ) within 10 days after the procurement officer issues a notice of intent to award the contract.For good cause shown,the authority may change a deadline set in this subsection or accept a late filed protest. (d)Upon receiving a protest,the authority will provide notice of the protest to other interested persons. (e)The authority's procurement manager shall issue a written decision on a procurement protest within L5 days after receipt of all relevant information from the protester and the authority,unless the executive director extends the time for decision for good cause shown.(Eff. 5/12/2005,Register 174;am /_/Register) Authority:AS 42.45.0435 AS 44.83.080 3 AAC 108 is amended by adding new sections to read: 20 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 108.915.Contract and grant claims.(a)[n accordance with this section,and except as otherwise provided by statute or required as a condition of assistance received by the authority under 3 AAC 105.020,a person who has a claim against the authority under a contract or grant agreement with the authority may submit that claim to the authority. (b)The claim must be submitted to the contract manager or grant manager in writing, and must include (1)the name,address,and telephone number of the claimant; (2)the signature of the claimant or the claimant's representative; (3)identification of the contract or grant at issue; (4)a detailed statement of the legal and factual grounds for the claim,including copies of relevant documents;and (5)a statement of the remedy requested. (c)A claim under a contract or grant must be received by the authority within 30 days after the claimant becomes aware of the basis of the claim or should have known of the basis of the claim,except that the information required in (b)(4)and (5)of this section and any other relevant information must be received by the authority within 60 days after the claimant submits the claim.For good cause shown,the authority may change a deadline set in this subsection or accept a late filed protest. (d)Upon receiving a claim,the authority will provide notice of the claim to other interested persons. ) (e)The authority's contract manager or grant manager shall issue a written decision on a claim within 90 days after receipt of all relevant information from the claimant and the authority, 21 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. unless the executive director extends the time for decision for good cause shown.(Eff. _/ef ,Register ) Authority:AS 42.45.0435 AS 44.83.080 3 AAC 108.920.Appeals.(a)A protester who is dissatisfied with a decision of the procurement manager under 3 AAC 108.910,a claimant who is dissatisfied with a decision of the grant manager or contract manager under 3 AAC 108.915,or a protester dissatisfied with other action of the authority,may appeal the decision to the board of directors of the authority or, if the board of directors has authorized the executive director to make the final decision of the "authority,to the executive director.A protesteror claimant must submit an appeal within 10 days after receiving the decision to be appealed. (b)Upon receiving an appeal under (a)of this section,the executive director shall review the protest or claim,relevant information from agency staff,including any decision of the procurement manager,contract manager,or grant manager,and other relevant information,and shall (1)prepare a final decision or a recommended decision for consideration by the board of directors of the authority; (2)conduct a hearing and prepare a final decision or recommended decision for consideration by the board of directors of the authority; (3)designate a hearing officer to conduct a hearing and prepare a recommended decision for consideration by the executive director or the board of directors of the authority;or Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (4)refer the matter to a mediator or arbitrator for resolution,subject to approval . of the resolution by the executive director or the board of directors of the authority. (c)The board of directors of the authority will adopt a recommended decision prepared under (b)of this section,adopt the recommended decision with modifications,reject the recommended decision,or return the recommended decision to the executive director or hearing officer for additional findings. (d)In conducting a hearing under this section,the hearing officer or executive director may (1)hold prehearing conferences to settle,simplify,or identify the issues in a proceeding,or to consider other matters that may aid in the expeditious disposition ofthe proceeding; (2)require parties to state their positions concerning the various issues in the proceeding; (3)require parties to produce for examination those relevant witnesses and documents under their control; (4)rule on motions and other procedural matters; (5)regulate the course of the hearing and conduct of the participants; (6)establish time limits for submission of motions or memoranda; (7)impose appropriate sanctions against a person who fails to obey an order relating to the hearing procedures,including (A)prohibiting the person from asserting or opposing designated claims or defenses or introducing designated matters into evidence; 23 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (B)excluding all testimony of an unresponsive or evasive witness;and (C)excluding a person from further participation in the hearing; (8)take official notice of a material fact not appearing in evidence,if the fact among the traditional matters subject to judicial notice;and (9)administer oaths or affirmations. (e)The board of directors of the authority may delegate to the executive director authority to make the final decision regarding protests of procurement actions,claims under contracts or grants,and protests of other actions of the authority,and contract claims,as the board determines is appropriate. (f)A decision by the board of directors of the authority,or by the executive director on matters delegated to the executive director,is a final decision for purposes ofjudicial review. (Eff.//._,Register ) Authority:AS 42.45.045 AS 44.83.080 24 IDIEN./=ALASKAVFAlaskaIndustrialDevelopmentWeAeExportAuthority MEMORANDUM TO:Board of Directors Alaska Energy Authority FROM:Steve Haagenson gut Executive Director DATE:August 13,2009 SUBJECT:Resolution No.2009-03 Adoption AEA Regulations AEA staff proposes to the board a few minor changes to the attached regulations.The changes are shown in "track-changes'”in the attachment,at pages 10,11,12,and 13,and are summarized below. p.10:In 3 AAC 107.645(a)(4)(feasibility and public benefit review of grant applications),"and” is changed to "or”to indicate that other public benefits are a separate subset of economic feasibility and benefits. e p.11:A new section 3 AAC 107.650 (requests for reconsideration)is re-added to provide a process for requests for reconsideration of rejected applications.This was in the initial public review draft regulations in a slightly different form.Discussions with the Department of Law raised concerns that led to this section being removed from the regulations provided in the board package.The revised version shown in the attachment is recommended by staff and acceptable to Department of Law. e p.12-13:In 3 AAC 107.655 (evaluation of grant applications)"other projects existing or proposed in the same area”is deleted as an evaluation criterion,and in 3 AAC 107.660 (ranking of applications)number of projects within each region”is changed to read ""number and type of projects within each region,”to better reflect when and how other projects are considered in the evaluation and ranking process. e p.19-21:In3 AAC 108.910 (protests),3 AAC 108.915 (contract and grant claims),and 3 AAC 108.920 (appeals),the terms "procurement manager',"contract manager',and "grant manager'are changed to "procurement officer”to clarify the authority officer who will be handling these matters. Staff recommends approval of Resolution No.2009-03 with the changes to the regulations as proposed. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org *907/771-3000 *FAX 907/771-3044 ®Toll Free (Alaska Only)888/300-8534 ©www.akenergyauthority.org Register __,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 106.120(a)(2)(A)(vi)is repealed: (vi)repealed //; (Eff.2/16/96,Register 137;am_/_/,Register ) Authority:AS 42.45.010 AS 44.83.080 3 AAC 106.300(3)is amended to read: (3)written endorsement from the governing body of each [THE]community for which a bulk fuel loan is sought,if the applicant is a person generating power or selling fuel in the community; (Eff.2/16/96,Register 137;am 3/25/2005,Register 173;am_-/__-/,Register ) Authority:AS 42.45.250 AS 44.83.080 3 AAC 106.310(4)is amended to read: (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 $750,000,or,if the borrower is a cooperative corporation organized under AS 10.15 or an electric cooperative organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more than one community,may not exceed the lesser of $750,000 multiplied by the number of eligible communities on whose behalf the bulk fuel is to be purchased,or $1,800,000 [$300,000]. (Eff.2/16/96,Register 137;am 3/25/2005,Register 173;am_s/s /,Register ) Authority:AS 42.45.250 AS 44.83.080 Register,.2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 106.900 is amended by adding new subsections to read: (d)In AS 42.45.010,"independent power producer"means a corporation,person, agency,authority,or other legal entity or instrumentality,that is not an electric utility and that owns or operates a facility for the generation or production of energy entirely for use by the residents of one or more municipalities or unincorporated communities recognized by the Department of Commerce,Community,and Economic Development for community revenue sharing under AS 29.60.850 -29.60.879 and 3 AAC 180. (e)In AS 42.45.010 and this chapter,unless the context requires otherwise,"electric utility"has the meaning given the term "public utility”in AS 42.05.990(4)(A).(Eff.2/16/96, Register 137;am_s/s /,Register _-+?) Authority:AS 42.45.010 AS 44.83.080 3 AAC 107 is amended by adding new sections to read: Article 4.Renewable Energy Grant Program. Section 600.Purpose 605.Public purpose requirements of renewable energy grants 610.Eligible applicants 615.Eligible project 620.Public notice of application period;solicitation of grant applications 625.Grant applications Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 630.Disclosure of applications and other materials submitted to the authority;confidentiality 635.Acceptance of applications for consideration;eligibility review 645.Feasibility and public benefit review of grant applications 650._Requests for Rreconsideration 655.Evaluation of grant applications 660.Ranking of applications 670.Additional information from applicant or grantee 675.Grant agreement 680.Grant closeout;return of unexpended grant money 685.Project operations and maintenance reporting 690.Dispute resolution 695.Definitions for AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 3 AAC 107.600.Purpose.The purpose of 3 AAC 107.600 -3 AAC 107.695 is to establish procedures and criteria for grant applications,the evaluation of applications, recommendations to the legislature for the award of grants,and the administration of grants from the renewable energy grant fund under AS 42.45.045.(Eff.//i,Register___) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.605.Public purpose requirements of renewable energy grants.The authority may take actions it determines are appropriate to protect the public purpose of renewable energy grants and the public interest in and benefit from the use of grant funds, 3 Register __,2009 COMMERCE,COMMUNITY,AND EC.DEV. including (1)limiting recommendations for grants to preliminary development phases,until the authority determines that subsequent phases are feasible,will result in sufficient benefit to the public,and are otherwise appropriate for grants; (2)seeking repayment of some or all of a grant if the grantee fails to comply with the terms and conditions of the grant or,without the prior approval of the authority,sells, conveys,or encumbers a project constructed with renewable energy grant money; (3)requiring review and approval by the Regulatory Commission of Alaska or,if the Regulatory Commission of Alaska does not have or exercise jurisdiction,review and approval by the authority,of rates charged for the use of assets funded in whole or in part with a renewable energy grant and for energy generated by those assets; (4)determining whether an applicant that is not a governmental entity and not a utility regulated by the Regulatory Commission of Alaska will own and operate the project in a manner that will provide sufficient public benefit to support a recommendation under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 for a grant;in making a determination under this paragraph,the authority will consider the applicant's previous experience,its ownership and financial resources,proposed financial oversight,and other factors relevant to the analysis of public benefit.(Eff.//,Register__) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.610.Eligible applicants.(a)To apply for a renewable energy grant,a person must Register __,2009 COMMERCE,COMMUNITY,AND EC.DEV. (1)be an eligible applicant within the meaning given in AS 42.45.045(/);and (2)demonstrate,to the satisfaction of the authority and subject to (b)of this section,that the applicant will (A)own the renewable energy project; (B)own,lease,or otherwise control the site upon which the project is located;and (C)upon completion of the project,operate and maintain it for its economic life for the benefit of the public. (b)The authority may authorize conveyance of an ownership interest or of operations or maintenance responsibilities if the authority determines that the conveyance protects the public interest in and benefit from the grant.(Eff./o/s,Register__-i*d) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.615.Eligible projects.(a)A project that meets the requirements of AS 42.45.045(f)-(h)is eligible for a renewable energy grant. (b)For purposes of AS 42.45.045(f)(2)(B),a project is a direct use of renewable energy resources if it uses renewable energy resources to generate energy or to make a fuel used to generate energy.(Eff.//,Register _) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.620.Public notice of application period;solicitation of grant applications.(a)The authority will provide public notice of the application period by 5 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. publishing notice on the authority's website and on the Alaska Online Public Notice System established under AS 44.62.175. (b)The authority will publish on its website a request for grant applications that includes the date,time,place,and method for delivering applications,and a description of the application requirements.(Eff.//,Register _-) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.625.Grant applications.(a)An applicant must submit an application to the authority within the time specified in the request for applications with the documentation and in the format required in the request for grant applications.The application must include (1)information showing to the satisfaction of the authority that the applicant is an eligible applicant within the meaning given in AS 42.45.045()and under 3 AAC 107.610; (2)information showing to the satisfaction of the authority that the project is eligible under AS 42.45.045(f)-(h)and 3 AAC 107.615; (3)information showing to the satisfaction of the authority that the project is technically and economically feasible; (4)a description of the public benefit from the project; (5)a description of the project scope of work,schedule,milestones,and budget; the description must include an estimate of total project costs,the amount of grant money requested,and identification of other money or resources that are committed to the purposes of the grant; (6)a description of the applicant's financial resources and financial capability of 6 Register __,2009 COMMERCE,COMMUNITY,AND EC.DEV. developing the project,including matching resources and other financing necessary for project development;and (7)additional information as required in the request for grant applications or under 3 AAC 107.670. (b)As it considers necessary to obtain complete or additional information,the authority will require applicants,including applicants who have previously received grants for preliminary development phases or partial grants,to submit new applications for each solicitation to which the applicants are responding.(Eff./-/_-_-s«y Register__) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.630.Disclosure of applications and other materials submitted to the authority;confidentiality.(a)A grant application and other materials submitted to the authority under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 are subject to disclosure under AS 40.25.100 -40.25.295 (Alaska Public Records Act)and 2 AAC 96,unless the authority determines that the material is protected from disclosure under AS 40.25.120. (b)A person submitting a grant application or other material under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 may request that the authority keep certain information confidential.The request must (1)clearly designate the specific information to be kept confidential;and (2)specifically describe the basis for asserting that the information is protected from disclosure under AS 40.25.120;if the person believes the information is protected as a trade secret or business proprietary information,the description must include analysis of whether the 7 Register 2009 COMMERCE,COMMUNITY,AND EC.DEV. person's commercial privacy interest in protecting the information from disclosure outweighs the public interest in obtaining the information. (c)If the authority receives a public records request and determines the information requested is protected from disclosure under AS 40.25.120,the authority will not release the information except to authority personnel and contractors for purposes of evaluating the person's application.If the authority determines the information may not be protected from disclosure under AS 40.25.120,the authority will notify the person submitting the information,who is responsible at the person's own expense for seeking judicial relief or taking other action necessary to protect the material from disclosure under AS 40.25.100 -40.25.295.(Eff. __/./___,Register__) Authority:Art.1,sec.22,Ak Const.AS 40.25.120 AS 44.83.080 AS 40.25.110 AS 42.45.045 3 AAC 107.635.Acceptance of applications for consideration;eligibility review. The authority will accept for consideration,for a recommendation for a grant,each application received on or before the deadline established in the request for applications.The authority will determine if the application is complete,is submitted by an eligible applicant within the meaning given in AS 42.45.045()and under 3 AAC 107.610,and is for a project that is eligible under AS 42.45.045(f)-(h)and 3 AAC 107.615.The authority will reject applications that fail to meet those requirements,and will notify each applicant whose application is rejected of the authority's decision.(Eff._/ /_,Register__-?) Authority:AS 42.45.045 AS 44.83.080 8 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 107.645.Feasibility and public benefit review of grant applications.(a)For each application not rejected under 3 AAC 107.635,the authority will perform a benefit and feasibility review,in which the authority will review (1)project management,development,and operations,including whether (A)the proposed schedule is clear,realistic,and described in adequate detail; (B)the costs and savings estimates for project development,operation, maintenance,fuel,and other project items are realistic; (C)the project team's method of communicating,monitoring,and reporting development progress is described in adequate detail;and (D)logistical,business,and financial arrangements for operating and selling energy from the completed project are reasonable and described in adequate detail; (2)qualifications and experience,including whether (A)the applicant,partners,and contractors have sufficient knowledge and experience to successfully complete and operate the project; (B)the project team has staffing,time,and other resources to successfully complete and operate the project; (C)the project team is able to understand and address technical, economic,and environmental barriers to successful project completion and operation; and (D)the project uses local labor and trains a local labor workforce; 9 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (3)technical feasibility,including whether (A)the renewable energy resource is available on a sustainable basis,and project permits and other authorizations can reasonably be obtained; (B)a site is available and suitable for the proposed energy system; (C)project technical and environmental risks are reasonable; (D)the proposed energy system can reliably produce and deliver energy as planned;and (E)if a demonstration project is being proposed, (i)application in other areas of the state,or another specific benefit of the proposed project,is likely; (ii)the need for the project is shown;and (iii)the risks of the proposed system are reasonable and warrant demonstration;and (4)economic feasibility and benefits,including whether (A)the project is shown to be economically feasible; (B)the project has an adequate financing plan for completion of the grant-funded phase,and has considered options for financing subsequent phases of the project;orand (C)other public benefits are demonstrated. (b)The authority will reject applications that it determines under (a)of this section not to be technically and economically feasible,or not to provide sufficient public benefit,and will notify each applicant whose application is rejected of the reasons for rejection.(Eff. 10 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. fof ,Register ) Authority:AS 42.45.045 AS 44.83.0380 #75 {Formatted:Indent:First line:0.5" 3 AAC 107.650.Requests for reconsideration.(a)An applicant whose application is rejected in the eligibility review or the feasibility and public benefit review may request that the executive director of the authority reconsider the decision of the authority's staff to reject the application.The request for reconsideration must be in writing,including by electronic mail, must state the basis for reconsideration,and must be received by the authority no more than ten days after the applicant has provided written notice of the rejection,including notice by electronic mail. 11 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (b)The executive director may concur with the decision of staff and reject the application,request additional information from the applicant before making a decision,or require further consideration of the application under 3 AAC 107.645 or 3 AAC 107.655 if the executive director determines that the authority erred in its rejection of the application.(Eff. //_Register ) Authority:AS 42.45.045 AS 44.83.080 er--{Formatted:Indent:First line:0.5" 3 AAC 107.655.Evaluation of grant applications.(a)For each application not rejected under 3 AAC 107.645,the authority will perform an evaluation for the purpose of ranking applications and making recommendations to the legislature for grants.The evaluation criteria include (1)the extent to which the proposed project serves an area of the state in which the average cost of energy to each resident of the area exceeds the average cost to each resident of other areas of the state;the authority will give the most weight to the criterion in this paragraph; (2)the extent to which the applicant will provide matching resources for the project;the authority will give significant weight to the criterion in this paragraph; (3)the extent to which a grant to the project,considered with other recommended grants,achieves a statewide balance of grant money;the authority will give significant weight to the criterion in this paragraph; 12 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (4)the likely economic and technical feasibility of the project;as part of its evaluation under this section,the authority will consider the results of the review performed under 3 AAC 107.645; (5)the public benefits of the project,including economic benefits;as part of its evaluation under this section,the authority will consider the results of the review performed under 3 AAC 107.645; (6)the ability of the applicant to finance,operate,and maintain the project for the life of the project; (7)local support for the project; (8)the readiness of the applicant to proceed with the phases of the project proposed for a grant; _(9}-ether-projects-existingofpropesedinthesamearea: (10)the applicant's previous compliance with the requirements of AS 42.45.045, 3 AAC 107.600 -3 AAC 107.695,requests for applications,and grant agreements;and (11)other project-specific criteria as identified in the request for applications. (b)Asa result of the evaluation under (a)of this section,the authority may recommend a grant in the amount requested by the applicant,decline to recommenda grant for a project,or recommend a grant in an amount or for project phases different from what the applicant requested.In recommending a grant for phases different from what the applicant requested,the authority may limit its recommendation to a grant for one or more preliminary project phases before recommending a grant for project construction.(Eff.//ss,Register) Authority:AS 42.45.045 AS 44.83.080 13 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 107.660.Ranking of applications.(a)To establish a statewide balance of recommended projects,the authority will provide to the advisory committee established in AS 42.45.045(i)a statewide and regional ranking of all applications recommended for grants. (b)In consultation with the advisory committee established in AS 42.45.045(i),the authority will (1)makea final prioritized list of all recommended projects,giving significant weight to providing a statewide balance of grant money,and taking into consideration the amount of money that may be available,number and types of projects within each region, regional rank,and statewide rank; (2)include in the final prioritized list any changes to the recommendations made following the evaluation under 3 AAC 107.655;and (3)include in the final prioritized list a list of applications that were rejected under 3 AAC 107.635 -3 AAC 107.645. (c)The authority will publish the final prioritized list on its website,and will provide it . to the legislature in accordance with AS 42.45,045(d)(3).Award of a grant is subject to legislative appropriation.(Eff./s/s,Register) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.670.Additional information from applicant or grantee.(a)As it considers necessary to perform a complete review of an application or project,and at any stage in the review,evaluation,recommendation,or award process under 3 AAC 107.600 -3 AAC 14 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 107.695,the authority will request that an applicant or grantee provide additional information. Requests for information may include a request for information sufficient for the authority to confirm that an (1)application meets the requirements of the request for applications;or (2)applicant or grantee is willing and able to adjust the project scope and budget as required by the authority in making a recommendation or as required by the legislature in approving a grant. (b)If.an applicant or grantee fails to provide timely or adequate information in response to a request from the authority,the authority may reject the application,modify the authority's recommendations to the legislature,or cancel a notice of intent to award a grant.(Eff. __/_/___,Register__-») Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.675.Grant agreement.Asa condition for a grant under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695,the applicant must sign a grant agreement that the authority prepares and that contains the terms and conditions of the grant,including (1)a description of the project to be financed with the grant; (2)a project schedule;the authority may make one or more disbursements of grant money conditional upon (A)completion and approval by the authority of pre-construction phases of the project; (B)the grantee demonstrating that it has site control for the project; 15 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. (C)the grantee demonstrating that it has one or more permits or authorizations required for construction of the project; (D)the grantee's successful completion of other activities or objectives set under the project schedule; (3)requirements for project management; (4)a description of allowable costs; (5)requirements for the documentation of expenditures and procurements; (6)procedures for making grant payments to the grantee; (7)requirements for the grantee's accounting and reporting; (8)requirements for the grantee's maintenance and retention of project records; (9)hiring preferences applicable under AS 36.10.150 -36.10.180 and 8 AAC 30.064 -8 AAC 30.088 to the grantee and its agents,contractors,and subcontractors; (10)procedures for verifying the provision of the grantee's matching resources to the project;and (11)other terms and conditions that the authority determines are appropriate to ensure the public purpose of and maximize the public benefit from the grant. (b)If.an applicant fails to execute the grant agreement within 30 days after receiving it from the authority,the authority may cancel a notice of intent to award the grant and may offer the grant money to another eligible applicant,subject to appropriation and approval by the legislature.(Eff.o/s /,Register _) Authority:AS 42.45.045 AS 44.83.080 16 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 107.680.Grant closeout;return of unexpended grant money.Upon completion of the grant-financed or termination of the grant,the authority will close out the grant and the grantee shall return to the authority any grant money and interest on grant money not spent on project work under the terms and conditions of the grant agreement.The grant agreement may provide that specified obligations of the grantee survive grant closeout.(Eff. _//__,Register) Authority:AS 42.45.045_-AS 44.83.080 3 AAC 107.685.Project operations and maintenance reporting.For a project constructed with a renewable energy grant,the grantee shall provide to the authority reports on project operations and maintenance for the periods and with the information that the authority specifies in the grant agreement.The authority may require information on project operations and maintenance activities and cost,other costs of the project,energy output,estimated fuel displacement resulting from the energy output,discussion of operational issues,and other information useful to the authority for its evaluation of the project and the grant.If the grantee fails to provide information as required under this section and in the grant agreement,the authority may determine the grantee ineligible for recommendations for future renewable energy grants or ineligible for other future grants from the authority.(Eff.//,Register _) Authority:AS 42.45.045 AS 44.83.080 17 Register,-s-s-s 22009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 107.690.Dispute resolution.A person who has a claim concerning a grant awarded under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695 may submit that claim in accordance with 3 AAC 108.915 -3 AAC 108.920.(Eff.//_ss,Register) Authority:AS 42.45.045 AS 44.83.080 3 AAC 107.695.Definitions for AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695. (a)In AS 42.45.045, (1)"independent power producer"means a corporation,person,agency, authority,or other legal entity or instrumentality,that is not an electric utility and that owns or operates a facility for the generation or production of energy entirely for use by the residents of one or more municipalities or unincorporated communities recognized by the Department of Commerce,Community,and Economic Development for community revenue sharing under AS 29.60.850 -29.60.879 and 3 AAC 180; (2)"wasteheat recovery"means systems for the recovery of unused heat from systems or processes in operation when the applicant applies for a renewable energy grant. (b)In AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695, (1)"matching funds"or "matching resources" (A)means those resources that the grantee dedicates for the completion of the project; (B)includes (i)cash; (ii)loan proceeds;and 18 Register,---s 2009 COMMERCE,COMMUNITY,AND EC.DEV. (ili)grantee-provided equipment,labor,or other materials or services needed for the completion of the project; (2)"preliminary development phase"includes (A)feasibility studies; (B)reconnaissance studies; (C)energy resource monitoring; (D)design phases;and (E)obtaining required permits and authorizations; (3)"renewable energy resources”has the meaning given in AS 42.45.045(/). (c)In 3 AAC 107.600 -3 AAC 107.695,unless the context requires otherwise,"grant"or "renewable energy grant”means a grant recommended or awarded under AS 42.45.045 and 3 AAC 107.600 -3 AAC 107.695.(Effi //,Register__+) Authority:AS 42.45.045 AS 44.83.080 3 AAC 108.910 is repealed and readopted to read: 3 AAC 108.910.Protests.(a)In accordance with this section,and except as otherwise provided by statute or required as a condition of assistance received by the authority under 3 AAC 105.020,an interested party may protest the authority's award of a contract,the authority's proposed award of a contract,or a solicitation by the authority for supplies,services, professional services,or construction. (b)The protest must be submitted to the authority's procurement manager officer in writing,and must include 19 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. (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 solicitation at issue; (4)a detailed statement of the legal and factual grounds for the protest,including copies of relevant documents;and (5)a statement of the remedy requested;in a protest of a procurement action,the protester is limited to remedies that would apply in a protest under AS 36.30. (c)A protest based on alleged improprieties in a bid or solicitation must be received by the authority at least 10 days before the due date of the bid or proposal.A protest based on alleged improprieties in an award of a contract or a proposed award of a contract must be filed within 10 days after the procurement officer issues a notice of intent to award the contract.For good cause shown,the authority may change a deadline set in this subsection or accept a late filed protest. (d)Upon receiving a protest,the authority will provide notice of the protest to other interested persons. (e)The authority's procurement manager-officershall issue a written decision on a procurement protest within 15 days after receipt of all relevant information from the protester and the authority,unless the executive director extends the time for decision for good cause shown.(Eff.5/12/2005,Register 174;am_s/s /,Register _-+) Authority:AS 42.45.045 AS 44.83.080 3 AAC 108 is amended by adding new sections to read: 20 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. 3 AAC 108.915.Contract and grant claims.(a)In accordance with this section,and except as otherwise provided by statute or required as a condition of assistance received by the authority under 3 AAC 105.020,a person who has a claim against the authority under a contract or grant agreement with the authority may submit that claim to the authority. (b)The claim must be submitted to the contractmanagerorgrant-managerprocurement officer in writing,and must include (1)the name,address,and telephone number of the claimant; (2)the signature of the claimant or the claimant's representative; (3)identification of the contract or grant at issue; (4)a detailed statement of the legal and factual grounds for the claim,including copies of relevant documents;and (5)a statement of the remedy requested. (c)A claim under a contract or grant must be received by the authority within 30 days after the claimant becomes aware of the basis of the claim or should have known of the basis of the claim,except that the information required in (b)(4)and (5)of this section and any other relevant information must be received by the authority within 60 days after the claimant submits the claim.For good cause shown,the authority may change a deadline set in this subsection or accept a late filed protest. (d)Upon receiving a claim,the authority will provide notice of the claim to other interested persons. (e)The authority's eontractmanager-er-grantimanaserprocurement officer shall issue a written decision on a claim within 90 days after receipt of all relevant information from the 21 Register,2009 COMMERCE,COMMUNITY,AND EC.DEV. claimant and the authority,unless the executive director extends the time for decision for good cause shown.(Eff.//,Register ) Authority:AS 42.45.045 AS 44.83.080 3 AAC 108.920.Appeals.(a)A protester who is dissatisfied with a decision of the procurement maneger-officer under 3 AAC 108.910,a claimant who is dissatisfied with a decision of the grantmanageror-eentract managerprocurement officer under 3 AAC 108.915,or a protester dissatisfied with other action of the authority,may appeal the decision to the board of directors of the authority or,if the board of directors has authorized the executive director to make the final decision of the authority,to the executive director.A protester or claimant must submit an appeal within 10 days after receiving the decision to be appealed. (b)Upon receiving an appeal under (a)of this section,the executive director shall review the protest or claim,relevant information from agency staff,including any decision of the precurement-manager,contract manacer,or crant manager,procurement officer and other relevant information,and shall (1)prepare a final decision or a recommended decision for consideration by the board of directors of the authority; (2)conduct a hearing and prepare a final decision or recommended decision for consideration by the board of directors of the authority; (3)designate a hearing officer to conduct a hearing and prepare a recommended decision for consideration by the executive director or the board of directors of the authority;or 22 Register __,2009 COMMERCE,COMMUNITY,AND EC.DEV. (4)refer the matter to a mediator or arbitrator for resolution,subject to approval of the resolution by the executive director or the board of directors of the authority. (c)The board of directors of the authority will adopt a recommended decision prepared under (b)of this section,adopt the recommended decision with modifications,reject the recommended decision,or return the recommended decision to the executive director or hearing officer for additional findings. (d)In conducting a hearing under this section,the hearing officer or executive director may (1)hold prehearing conferences to settle,simplify,or identify the issues in a proceeding,or to consider other matters that may aid in the expeditious disposition of the proceeding; (2)require parties to state their positions concerning the various issues in the proceeding; (3)require parties to produce for examination those relevant witnesses and documents under their control; (4)rule on motions and other procedural matters; (5)regulate the course of the hearing and conduct of the participants; (6)establish time limits for submission of motions or memoranda; (7)impose appropriate sanctions against a person who fails to obey an order relating to the hearing procedures,including (A)prohibiting the person from asserting or opposing designated claims or defenses or introducing designated matters into evidence; 23 Register _,2009 COMMERCE,COMMUNITY,AND EC.DEV. (B)excluding all testimony of an unresponsive or evasive witness;and (C)excluding a person from further participation in the hearing; (8)take official notice of a material fact not appearing in evidence,if the fact among the traditional matters subject to judicial notice;and (9)administer oaths or affirmations. (e)The board of directors of the authority may delegate to the executive director authority to make the final decision regarding protests of procurement actions,claims under contracts or grants,and protests of other actions of the authority,and contract claims,as the board determines is appropriate. (f)A decision by the board of directors of the authority,or by the executive director on matters delegated to the executive director,is a final decision for purposes of judicial review. (Eff./ /i,Register___-+d) Authority:AS 42.45.045 AS 44.83.080 24 ALASKA ENERGY AUTHORITY Alternative Energy and Energy Efficiency Program Overview Currently Alaska Energy Authority's (AEA's)Alternative Energy and Energy Efficiency (AEEE)program manages and funds projects and initiatives totaling $157 million in state and federal funding.Activity has substantially increased after AEA launched the Renewable Energy Fund.An AEEE update is available on AEA's website at www.akenergyauthority.org Program Description The AEEE program promotes the use of renewable resources as alternatives to fossil fuel-based power and heat,and measures to improve energy production and end use efficiency.In rural areas the program may support developing local sources of coal and natural gas as diesel alternatives.The AEEE program is divided into eight separate program areas: Alaska Energy Inventory,a cooperative project of AEA and Alaska DNR,is compiling renewable and fossil resource data, energy supply and usage,and other information useful for energy planning and development. Biomass Energy Program develops projects using wood,sawmill residue,and municipal wastes for energy;tests air emissions and performance of fish oil and diesel blends as fuel;and assesses the viability of recovering fish oil from fish processing wastes. Diesel Generation Efficiency Program provides assistance in developing projects that use high efficiency generators and recover "waste heat”from diesel generators. End Use Efficiency (Conservation)Program has completed 40%of a project upgrading lighting and heating efficiency in over 150 schools and other facilities in 50 villages,is conducting energy audits,and working with Alaska Housing Finance Corporation to develop statewide efficiency policy recommendations and demonstrate impact of aggressive,village- wide measures in Nightmute. Geothermal Program supports projects such as the Chena Hot Springs power plant,organizes workshops and training sessions,and coordinates state assistance in developing other potential projects such as Mt.Spurr on the Railbelt and Makushin in Unalaska via a statewide development plan. Hydroelectric Program provides technical assistance through staff and contractors for hydro feasibility assessment and manages public funding for project construction. Ocean and River Energy Program evaluates technology and feasibility of converting wave motion and tidal and river flow into power in partnership with Alaskan utilities and Electric Power Research Institute. Wind Program assists utilities and communities in resource evaluation,training,environmental assessment,regional development,conceptual design and economic feasibility of rural wind-diesel systems,and Railbelt wind integration studies. Funding AEA's alternative energy program has received funding since the early 1980s from the US Department of Energy (USDOE) and more recently from the Denali Commission and the EPA.Under the Renewable Energy Fund,AEA is providing $125 million in grants for 107 projects.In June 08 AEA and the Denali Commission offered $7.5 million in grants for 37 projects.The Energy Cost Reduction RFP,an earlier program,has provided $8.4 million in grant funds to match $12.4 million in local funds for projects that are displacing or will displace 1.4 million gallons per year of diesel and equivalent natural gas.For more detail,see the AEA's Biennial AEEE Assistance Plan on the AEA website. Reviewed July 2009 ALASKA ENERGY AUTHORITY Bulk Fuel Program Current Status In 2008,bulk fuel upgrades were completed in the communities of Tyonek,Ruby,and Pilot Point.A pipeline project in Newtok was completed in 2009.Nine bulk fuel projects are in the design process, and five are in construction in 2009. Program Description The goal of Alaska Energy Authority's (AEA)Bulk Fuel program is to upgrade non-compliant bulk fuel facilities in communities that meet program criteria.Upgrading bulk fuel facilities reduces the cost of energy by reducing or eliminating fuel loss from leaks and spills.In addition,by providing enough capacity for current and planned needs,communities may purchase fuel in larger quantities at a lower cost per gallon. Alaskan remote communities rely on diesel fuel storage for heating and power generation.Many of the bulk fuel storage facilities were constructed in the 1970's or earlier.Some of these facilities are at the end of their design life and do not comply with state and federal codes and regulations.Some have tanks,pipes and other equipment that leak fuel.Regulatory agencies may prohibit fuel deliveries to these facilities.Communities often do not have funds for replacing these storage facilities. Since 2000,the Denali Commission has provided funding to replace community bulk fuel facilities.Due diligence is carried out to ensure that project participants meet Denali Commission and AEA sustainability standards.Participants sign a Business Operating Plan.The Business Operating Plan lays out the existing fuel facility organizational structure,the qualifications of responsible people,AEA required training,estimated operation and maintenance costs,and the establishment of a repair and replacement fund,so that when equipment fails the community will have the resources and savings to repair or replace it. Program Progress The bulk fuel program receives most of its funding through the Denali Commission.A total of 21 tank farm projects were completed in years previous to 2000.In 2000,funding increased substantially when the Denali Commission started to fund bulk fuel projects.As of December 2008,an additional 65 communities have been completed for a total of 86.Approximately 32 communities have not received upgrades.Depending on funding,three to six communities are receiving upgrades per year. Revised 7/27/09 a ALASKA ENERGY AUTHORITY Circuit Rider Program Current Status FYO9 Circuit Rider Program Participation forms where faxed to 74 rural electric utilities October 31, 2008.35 utilities responded.The returned applications are currently being evaluated. Program Description The Circuit Rider Program provides technical assistance to help rural utilities with the operation and maintenance of their electrical generation and distribution system.The Circuit Rider Program is administered by the Alaska Energy Authority (AEA)and is available to all eligible electric utilities.Electric utilities participating in this program will receive support services from AEA depending on the availability of funding._The purpose of the circuit rider maintenance program under 3 AAC 108.200 -3 AAC 108.220 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 related technical assistance. e The CRM program runs on a fiscal year from July 1 to June 30. e All applications will be evaluated and placed on priority list. e AEA will make one or more visits to eligible electric utilities over the course of the fiscal year to provide training and provide recommendations concerning operations and routine maintenance activities.There will be no charge to the utility for these services. e Participating utilities are responsible for the purchase of all supplies,parts and equipment used for routine maintenance and minor repairs that are made during Circuit Rider visits.These items must be available at the utility's workplace prior to the arrival of AEA staff. e The Circuit Rider program does not provide funding for major repairs or reconstruction of electrical systems. e The participating utility's power plant operator and/or other utility staff must be available for training and consultation during the time of the Circuit Rider staff visit.Power plant operators will be required to maintain written performance !ogs in between Circuit Rider visits. e Utilities participating in the Circuit Rider program will be required to sign a letter acknowledging their understanding of the terms and conditions of the services provided by the program,prior to the first visit. e At this time AEA is soliciting for experienced maintenance personne!for the Circuit Rider Program. Program Progress Services under the Circuit Rider program are limited to village electric utilities with a demonstrated need for assistance with preventative operations and maintenance activities,utility training and emergency prevention.The program is not intended to serve electric utilities that have sufficient financial and technical resources to perform routine operations and maintenance activities. Reviewed August 2009 ALASKA ENERGY AUTHORITY Emergency Response Program Current Status Currently in 2009,several communities where assisted.Major responses included Stevens Village during the Spring break-up and Kipnuk with unexpected major equipment failures. Program Description The Emergency Response program provides on-call,as-needed emergency action response to mitigate extended power outages and electrical hazards that present eminent threat to life or property. This program is designed to respond to an emergency or potential emergency situation before disaster or major loss occurs.It provides funding for continuance of government activities.It allows for procurement of manpower,materials and equipment for emergency response to electrical generation and distribution system emergencies and disasters in Alaska. Program Progress Emergency response is provided on an as-needed basis only.Well-managed utilities with adequate technical and financial resources are not candidates for these services.Besides helping rural communities,AEA works with State and Federal agencies on an as-needed case by case basis to resolve electrical generation and distribution system emergencies throughout Alaska. Reviewed August 2009 ALASKA ENERGY AUTHORITY Loan Programs Power Project Fund (PPF) Number of loans:47 Outstanding portfolio balance:$26,330,022 Committed &un-disbursed funds:S 5,993,120 Uncommitted funds:S 4,595,636 As of 6/30/09,there was 1 loan past due 90 days or more in the amount of $215,000;which was .82%of the outstanding portfolio balance. Program Background:The PPF program provides loans to local utilities,local governments or independent power producers for the development or upgrade of electric power facilities, including conservation,bulk fuel storage,and waste energy conservation.The loan term is related to the productive life of the project,but cannot exceed 50 years.Interest rates vary between tax-exempt rates at the high end and zero on the low end.This rate is equal to the percentage that is the average weekly yield of municipal bonds for the 12 months preceding the date of the loan commitment. Bulk Fuel Revolving Loan Fund (BFRLF) Number of loans:26 Outstanding portfolio balance:§1,352,518 Committed &un-disbursed funds:S 6,260,451 Uncommitted funds:S 7,586,788 As of 6/30/09,there was 1 loan past due 120 days or more in the amount of $153,520;which was 11.35%of the outstanding portfolio balance. Program Background:The purpose of the BFRLF program is to assist communities,utilities or fuel retailers in small rural communities in purchasing emergency,semi-annual or annual bulk fuel supplies.Loans are for the purchase of new fuel.Loans are not provided for fuel already purchased,in the process of being used or already consumed.The Alaska State Legislature appropriated an additional $5.5 million to this revolving loan fund in August 2008. Revised July 2009 ALASKA ENERGY AUTHORITY Power Cost Equalization Program Current Status The original FYO8 PCE appropriation was $26,760,000.00 which was further capitalized by a $1.2 million dollar supplemental appropriation,increasing the total funding to $27,960,000.00.FYO8 budget funding levels remained at the 100%level for the entire fiscal year.This caused the program to go over budget by what is currently $486,484.21.The legislature approved a $600,000 supplemental appropriation for PCE's FYO8 expenditures. Effective October 1,2008,the power cost for which PCE is paid (the "ceiling”)will be raised from $.525 to $1.00 for the remainder ofthe FY 2009.The recent legislative approval and signing of SB 88 extended the sunset for the $1.00 cap indefinitely.Effective with the first billing period of the FY 2010,the base rate was also raised from $0.1283 to $0.1412.The PCE Program was provided an open ended General Fund Appropriation estimated to be $23 million for FY 2008. Program Description The goal of Alaska Energy Authority's (AEA)Power Cost Equalization program is to provide economic assistance to customers in rural areas of Alaska where the kilowatt-hour charge for electricity can be three to five times higher than the charge in more urban areas of the state.PCE only pays a portion of approximately 30%of all kWh's sold by the participating utilities. PCE fundamentally improves Alaska's standard of living by helping small rural areas maintain the availability of communications and the operation of basic infrastructure and systems,including water and sewer,incinerators,heat and light.PCE is a core element underlying the financial viability of centralized power generation in rural communities. The Legislature established different functions for AEA and the Regulatory Commission of Alaska (RCA) under Alaska Statutes 42.45.100-170,which govern PCE program responsibilities. AEA determines eligibility of community facilities and residential customers and authorizes payment to the electric utility.Commercial customers are not eligible to receive PCE credit.Participating utilities are required to reduce each eligible customer's bill by the amount that the State pays for PCE. RCA determines if a utility is eligible to participate in the program and calculates the amount of PCE per kWh payable to the utility.More information about the RCA may be found at www.state.ak.us/rca PCEEndowmentFundThePCEEndowmentFund was created and capitalized in FY 2001 with Funds from the Constitutional Budget Reserve and the Four Dam Pool Project sale proceeds.The PCE Endowment Fund is an Alaska Energy Authority Fund managed by the Department of Revenue;it is invested to earn at least 7%over time.$182.7 million was appropriated to the fund in FY 2007.The deposit occurred in October 2006. Revised August 2009 AS 42.45.085 provides that 7%of the PCE Endowment Fund's 3 year monthly average market value may be appropriated to the PCE Rural Electric Capitalization Fund for annual PCE program costs.After the FY 2007 capitalization,7%of the market value equals the estimated full funding amount for the program. PCE Utility Clerk Training -Regional In the fall of 2008 the Alaska Energy Authority was approached by the Tanana Chiefs Conference and was asked to conduct a PCE Utility Clerk Training Workshop;a workshop that the AEA host annually in the spring.The AEA accepted the invitation and conducted a very successful three (3)day utility clerk training session at the Alpine Lodge in Fairbanks,Alaska.The AEA assisted in planning the workshop but all expenses were met by the Tanana Chiefs Conference. Attendees included representatives from the electric utilities in Arctic Village,Chalkyitsik,City of Ruby and Venetie as well as staff with the Tanana Chiefs Council.Instructors for the training session included AEA staff and Terri Harper of Terri's Organization Planning Services (T.O.P.S.). Following this training session,the AEA was approached by the North Slope Borough with a similar request.In an effort to become compliant with the PCE Program's requirements as well as those of the Regulatory Commission of Alaska,the North Slope Borough sought to enlist the AEA's assistance in training its personnel.With all expenses being paid by the North Slope Borough,AEA staff traveled to Barrow,Alaska and carried out another three (3)day utility clerk training session.Attendees included eight (8)NSB employees along with Mr.Winchell Tickner of Nikolai Light and Power for a total of nine (9)students.Mr.Tickner was not able to attend the regularly scheduled spring PCE Utility Clerk Training held in April 7-9,2009 in Anchorage but graciously made himself available to travel to Barrow to attend. The attendees acquired and demonstrated a very good understanding of the program and expressed great appreciation for the efforts made by the AEA.Our thanks go out to the North Slope Borough also for their generosity in affording this opportunity to the Nikolai Light and Power Company. Revised August 2009 ALASKA ENERGY AUTHORITY Rural Power Systems Upgrade Program Current Status Between the calendar years 2000 through 2008,38 communities have benefited from powerhouse and distribution upgrades.11 additional communities are currently undergoing or are scheduled for construction upgrades in 2009.12 additional communities are in conceptual design or final design stage. Program Description The Rural Power System Upgrade (RPSU)program concentrates on powerhouse and electrical distribution upgrades.Typical project include powerhouse upgrades or replacements,distribution line assessments and upgrades,line extensions to new customers,demand-side improvements and repairs to generation and distribution systems.Energy efficiency,reliability,safety and sustainability are primary drivers during the conceptual design,final design and construction process.identification of available alternative and renewable energy and interoperability with any existing alternative and renewable energy sources is high priority with the rising cost of fuel and carbon emissions concerns. Examples of programmatic efforts include: e Rebuilding or replacement of worn-out,inefficient diesel generator units. °Rebuilding or replacement of old,hazardous and non-code compliant distribution systems. e Construction of new power generation systems that meet State and Federal codes.Communities StateofAlaska °Inclusion of waste heat recovery systems in new powerhouses. °Force account labor and technical assistance to rural communities through AEA personnel and/or contractors with experience in rural construction. System upgrades to be funded may be identified through a variety of ways,including via technical assistance,advanced by the local community or directed by the Legislature.The Majority of funds are via the Denali Commission.Other sources include Community Development Block Grant (CDBG),Indian Community Development Block Grant (ICDBG)and Rural Utility Service (RUS). Program Progress Annual Fuel Savings from New Powerhouses Electricity provides for lighting,communications, nee ns:Lene heat and power necessary to operate infrastructure a!2:ere that supports all other elements needed in any mm community to permit safe and healthy living "me conditions.In rural communities throughout Alaska, sono electricity is generated by a small local "system” 00,000 (generation and distribution)using diesel fuel at a cost that is three to five times higher than that in 200,000 urban parts of the state.Of the 200 rural100,000 -1 1 |il f communities,approximately half are served byoi"™cooperatives or another form of utility that performsSSKPLLLEHy#*#%under a well-established organization.Others are served by very small entities,many which experience technical and administrative problems due to lack of economies of scale and/or lack of specialized skills in the community. Reviewed August 2009 ALASKA ENERGY AUTHORITY Training Program Current Status The Alaska Energy Authority (AEA),along with the Denali Commission Training Fund,provides training opportunities to local residents for their energy projects and infrastructure.In FYO7,the AEA Training Program provided training to 131 rural Alaskans.For FY08,the program was funded at $416,435 and at least 118 rural Alaskans are expected to be trained. Program Description The intent of this training is to ensure that community personnel have the best skills with which to sustain their energy infrastructure in a business-like manner.With proper training,utilities can keep their facilities code-compliant and sustainable. The training program currently offers the following courses: e Bulk Fuel Operator Training e =Itinerant Bulk Fuel Operator Training e Business Plan Training . e Power Plant Operator Training e Advanced Power Plant Operator Training e =PCE Utility Clerk Training A Denali Training fund application requesting $401,264 for FY10 was submitted on July 14,2009.AEA is awaiting notice of funding. Reviewed July 2009 ™*YIDEX I=ALASKAbxAlaskaIndustrialDevelopmentandExportAuthority Revised June 2009 Project Fact Sheet:ALASKA-BC INTERTIE STUDY CURRENT STATUS:A portion of the AKBC funds have been re-appropriated for the design and permitting of the Petersburg to Kake Intertie project.Some funds have been retained to monitor the situation in British Columbia,where the government is re-evaluating whether to build the backbone intertie from southern BC to 60 miles from the Alaska-BC border.Further action on the export project depends in part on the evaluation by private mining companies of the economics of major mines near the Alaska BC border.The final feasibility report has been published.It is available online at htto:/Awww.akenergyauthority.org/AKBCProjectPage.html No work is being accomplished on the Export Intertie project at this time,since the British Columbia Transmission Corporation has advised us that transmission line projects in BC necessary for the export of power have not been approved for construction. PROJECT COST:$3.2 million. DESCRIPTION:To analyze and confirm the feasibility of a transmission line that would connect two parts of the Four Dam Pool service area and the two major Southeast hydroelectric power plants in the Ketchikan-Wrangell-Petersburg region through construction of a 67-mile electrical transmission intertie;and connect the Four Dam Pool transmission system into the Canadian grid,and thus gain access to power markets either in Canada or US Pacific Northwest.As a part of the study,examine the construction of a transmission backbone that that would entice private or local government entities to develop hydro power projects that could produce as much as 100 MW of power for use in southern SE Alaska or be exported. PURPOSE:Provide a transmission system to allow for exportation of power to the British Columbia grid.Additional intertie will allow delivery of excess power for Lake Tyee to Ketchikan. SOURCE OF FUNDS:During the FY09 legislative process,$2 million of the $3.2 million originally appropriated to the AK BC Intertie was re-appropriated to the Kake-Petersburg Intertie project.The AK-BC Intertie appropriation is now $1.2 million with $558,000 in expenditures as of August 5,2009. PARTICIPANTS:Hatch Energy (Contractor)and an Advisory Work Group made up of representatives from Southeast Alaska communities including:Auke Bay,Craig,Juneau, Ketchikan,Metlakatla,Petersburg,and Wrangell. BENEFITS:The draft final report supports the Swan-Tyee Intertie and the Kake Petersburg Interties as being economically feasible,and indicates the export intertie link shows economic promise,but cannot be definitively determined at this time. ADDITIONAL BACKGROUND:This study has an advisory committee and steering committee to assist AEA in proper administration of funds.The committees have participated actively in the formulation of the consultant scope of work,selection of the consultant.The feasibility study has been reviewed and approved by the work group. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org e 907/771-3000 ¢FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 «www.akenergyauthority.org *YIDEX.JS ALASKA*w Ot Alaska Industrial DevelopmentandExportAuthority Revised June 2009 Project Fact Sheet:ALASKA INTERTIE CURRENT STATUS:The Intertie is currently in operation.Several Repair and Renovation projects have been authorized by the Intertie Operating Committee and AEA has started to pursue the projects.The projects are the STATIC VAR COMPENSATOR replacement project and the TOWER 195 RELOCATION project.There is $10M available to accomplish this work.The continued operation of the intertie is changing with an emerging gas shortage in Cook Inlet,which reduces the ability for Chugach Electric and Municipal Light and Power to generate economy energy for sale to GVEA.Operation is expected to continue,but with reduced power flows.The line is also being used for GVEA to transfer firm energy south under conditions with gas supplies to Chugach are curtailed, either during maintenance periods or during extreme cold weather conditions.The Alaska Intertie Contract between AEA and participating Railbelt Utilities,schedule to terminate in 2010,remains in a "being renegotiated”status.Completion of renegotiation is on hold,pending legislative action on the Greater Railbelt Energy and Transmission Company (GRETC)bill,which would transfer the ownership of the Intertie to the new GRETC Company. PROJECT COST:Initial capitals costs of $124 million.Warranty and repair and replacement fund is paid into by utilities to cover costs. DESCRIPTION:The Alaska Intertie transmission line is a 170-mile long,345kV transmission line between Willow and Healy that is owned by AEA.It is presently operated at 138 KV. PURPOSE:The purpose of the Alaska Intertie is to interconnect Golden Valley Electric Association, the regulated utility that serves areas north of the Alaska Range with south central Alaska Utilities. The intertie also allows resources north and south of the range to be shared to improve reliability. Notably,the GVEA storage battery,as well as GVEA generation resources,can and have been used to send emergency power southward to minimize catastrophic network wide outages.The operation of this intertie materially improves overall system reliability. SOURCE OF FUNDS:The Intertie was built in the mid-1980s with State of Alaska appropriations totaling $124 million.Currently,there is no debt associated with this asset. PARTICIPANTS:The operation of the Intertie is governed by the Alaska Intertie Agreement entered into in 1985 and amended in 1991.The parties to this agreement are AEA (formerly Alaska Power Authority),Anchorage Municipal Light &Power,Chugach Electric Association Inc.,Alaska Municipal Utilities System,Golden Valley Electric Association,Inc.,and the Alaska Electric Generation and Transmission Cooperative (AEG&T is comprised of Matanuska Electric Association and Homer Electric Association). BENEFITS:In 1981,a study demonstrated a positive feasibility of the line and recommended construction of an intertie to allow exchange of economy energy and the sharing of reserve generation capacity between the Anchorage and Fairbanks load centers.It was estimated that the benefits from the project would be approximately $17 million per year. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org «907/771-3000 «FAX 907/771-3044 @ Toll Free (Alaska Only)888/300-8534 #www.akenergyauthority.org Alaska Intertie Page 2 of 2 Project Fact Sheet ADDITIONAL BACKGROUND:Agreements have been developed over a span of 30 years to govern the cooperative management,operation of the connected network at large.AEA has agreements with participating utilities that assure the Alaska Intertie operates with prudent maintenance and operation by utilities.ML&P is the intertie operator,while MEA and GVEA provide maintenance and operations services. AEA serves as financial administrator,providing basic accounting services to establish a cost-based wheeling rate that is trued up each year.AEA collects payments from Intertie users and pays expenses,including reimbursement of costs incurred by the two operators of the line,ML&P and GVEA,and the three maintenance contractors,MEA,CEA,and GVEA. "yIDEX JEANSoPeAlskaindustrialDevelo TZ ENERGY AUTHORITY a5 GUST tal velopmentandExportAuthority Reviewed August 3,2009 Project Fact Sheet:BRADLEY LAKE HYDROELECTRIC PROJECT CURRENT STATUS:Snow pack for Bradley watershed was only 43%of average this year. Snow pack provides annual about one third of the project water.However,heavy rains during the last two weeks have brought the lake level up 25 feet.Lake level is normal to above normal for this time of year.Many small projects continue this summer. PROJECT COST:$317 million (original cost plus major capital improvements through June 30, 2007) DESCRIPTION:The project has 126 MW of installed capacity hydroelectric project located 27 air miles southeast of Homer on the Kenai Peninsula.The project consists of Bradley Lake,a 125 foot high concrete faced,rock filled dam structure,three diversion structures,a 19,063 ft. long power tunnel and vertical shaft,generating plant,interior substation,20 miles of transmission line,and substation.Due to its remote location,the project has its own airstrip,boat dock,residential quarters,and utility system.The project is normally automatically operated by remote dispatch by Chugach Electric Association from Anchorage. PURPOSE:The Bradley project provides 5-10%of the annual railbelt electric power needs at the lowest generation cost.Bradley is most important to the railbelt electric system during the cold winter months.Demand for both electric power and gas for heat is at its highest.Utilities limited by available gas are able to use Bradley power to meet the high electric demand. SOURCE OF FUNDS:Legislative appropriations and AEA revenue bonds repaid by participating utilities. PARTICIPANTS:Under the Power Sales Agreement,100%of the project's capacity has been sold to the power purchasers:Chugach Electric Association,Inc.(30.4%);Municipality of Anchorage (25.9%);Alaska Electric Generation &Transmission Cooperative,Inc.(25.8%); acting on behalf of Homer Electric Association,Inc.(12.0%)and Matanuska Electric Association, Inc.(13.8%);Golden Valley Electric Association,Inc.(16.9%);and City of Seward (1.0%) BENEFITS:Authority ownership now assures the railbelt area of a long-term source of power at a stable cost and promotes economic development in the region. ADDITIONAL BACKGROUND:The power generation potential of Bradley Lake was first studied by the U.S.Corps of Engineers and presented in a report dated March 1955.The project was authorized by Congress in 1962,but,despite its feasibility,federal funds were not available for its construction.The Alaska Energy Authority (then Alaska Power Authority)assumed responsibility for the project in 1982.Preliminary plans and field investigations started in 1982. In April 1984,the Authority submitted an application for license to the Federal Energy Regulatory Commission (FERC).The license to construct the project was issued on December 31,1985.In December 1987,the Authority and the railbelt utilities entered into a Power Sales Agreement to delineate responsibilities.Project was declared in commercial operation September 1,1991. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org @ 907/771-3000 «FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org Bradley Hydroelectric Project Page 2 of 2 Project Fact Sheet Bradley has been producing power for 16 years.In 2007,Bradley produced 392,000 MWh of power at a cost of approximately $.039 per kWh. A Bradley Project Management Committee (BPMC)was formed in 1993 with representatives from each of the power purchasers and Alaska Energy Authority.The BPMC is responsible for the management,operation,maintenance,and improvement of the project,subject to the non- delegable duties of the Alaska Energy Authority. "IDEN./x Alaska industrial DevelopmentandExportAuthority ALASKA ENERGY AUTHORITY Revised June 2009 Project Fact Sheet:EKLUTNA TRANSMISSION LINE UPGRADE CURRENT STATUS:Project construction is complete.The line presently awaits connection into the Railbelt network.As the available funds through the AEA grant are nearly exhausted, the Eklutna Operating Committee (ML&P,Chugach and MEA)has elected to complete the project using funds they will secure.The Operating Committee has designated ML&P as the project manager for completing terminations,commissioning and energizing the line.ML&P is securing professional services to accomplish this commissioning process. PROJECT COST:$19.3 million DESCRIPTION:The project consists of rebuilding the existing 115kV wood-pole electric transmission line from the Eklutna Hydroelectric Plant to the point where the Beluga 230kV electric transmission line intersects the line (near Briggs Tap/Fossil Creek),spanning a distance of 22.5 miles. PURPOSE:To upgrade the existing single circuit line to a double circuit line providing an overall capacity and reliability to the intertie.To improve system reliability and resolve fault issues,the generating utilities approached the legislature for funding to construct a dedicated transmission link between the two generation centers and to provide a second line to serve the four existing MEA taps.The new transmission line will be constructed and insulated for 230KV,but will initially operated at 138KV. SOURCE OF FUNDS:Grant to the Municipality of Anchorage Municipal Light and Power through the Alaska Energy Authority for an Eklutna project transmission line upgrade.AEA is the grant administrator. PARTICIPANTS:Anchorage Municipal Light and Power,Chugach Electric Association,Inc., and Matanuska Electric Association. BENEFITS:This intertie project will resolve concerns over the 50-year age of a wood structured primary intertie link between the hydroelectric power plant at Eklutna,and the ML&P plant no.2, which is one of the main generation centers for South Central Alaska.Completion of the intertie will increase operating and dispatch flexibility for South Central Alaska,and increase reliability of power supply. ADDITIONAL BACKGROUND:Concerns for system reliability and safety led South Central Utilities to approach the legislature for a $19.3 Million appropriation to replace a 50-year-old key transmission link between two South Central Generation facilities.The Eklutna hydropower generation facility,recently repowered to produce 40MW of storage hydropower,was connectedtotherestoftheRailbeltsystemthroughthewoodstructuredlink. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org #907/771-3000 «FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 «www.akenergyauthority.org =>ALASKA ENERGY AUTHORITYLoeAlaskaIndustrialDevelopmentaadExportAuthority Reviewed August 2009 Project Fact Sheet:LARSEN BAY HYDROELECTRIC PROJECT CURRENT STATUS:Upgrades to the Larsen Bay Hydro Facility are in progress utilizing a Construction Management Contractor and AEA Rural Utility Workers.Project substantial completion is tentatively scheduled for July of 2009.Once the project is substantially complete the community and AEA will execute a Facility Conveyance Agreement to complete the turnover agreement to the community.The city utility supplies a portion of the cannery's energy needs to increase utility revenues and enable repayment of bond funds.The utility has agreed to allow the use PCE payments to aid in repayment of their PPF loan. PROJECT COST:$320,000 from CDBG grant DESCRIPTION:The Larsen Bay hydro facility has experienced numerous significant operating issues over the last several years which have resulted in delaying the ownership transfer from AEA to the community.The most significant issue is the reliability of the existing hydro switchgear and controls.Scheduled improvements include: e Replacement of the existing unreliable hydro switchgear and controls with new modern switchgear that includes data acquisition and remote monitoring capabilities.This task is still in progress with the new switch gear now in basic operation. e Repair ice damage to the water intake structure.This task was substantially completed in Jan 2009. e Supply a portion of the cannery domestic load to facilitate increased use of hydro power without negatively impacting the power to the community and increase revenue to the city.This task was substantially completed spring of 2007. PURPOSE:The project intent is to increase the reliability,and use of the hydro electric system in order to facilitate the turnover of ownership of the system to the City of Larsen Bay. SOURCE OF FUNDS:In 2004,the City of Larsen Bay applied for and received a CDBG Grant to upgrade the hydro facility.In 2005,AEA negotiated a Grant Agreement with the City of Larsen Bay and CDBG to manage the hydro upgrade project.Subsequently,the project was awarded $320,000 from CDBG. PARTICIPANTS:Alaska Energy Authority and the City of Larsen Bay BENEFITS:Once operating reliably and efficiently the hydro will displace the majority of the city's diesel fuel used for electrical generation.The utility can now provide a portion of the cannery's energy needs resulting in increased revenue to the utility.Sales to the cannery during the summer of 2007 allowed the City of Larsen Bay to pay its loan obligations for FY 2007 and 2008.The intent is to turn the hydro facility over to the City after the improvements have been completed and the facility has proven its reliability. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org ¢907/269-3000 *FAX 907/269-3044 ®Toll Free (Alaska Only)888/300-8534 ¢www.akenergyauthority.org Larsen Bay Hydroelectric Project Page 2 of 2 Project Fact Sheet ADDITIONAL BACKGROUND:This 475-kilowatt project went into commercial operation in mid-1991 with construction costs of approximately $1.6 million.In addition to producing electricity for this isolated Kodiak Island community,the project replaced the City of Larsen Bay's old water supply system and provides a safe source of water with reduced maintenance and improved water quality.The original intent of the hydro project was to turn the facility over to the City of Larsen Bay once it had been demonstrated to be operationally viable over a few years.The hydro operated only intermittently and unreliably for many years;therefore the community would not agree to accept the facility or make bond payments until these problems were worked out.In 2004,the City of Larsen Bay agreed to seek CDBG funding to make improvements to the hydro facility. te ,IDEN.=ALASWAkdAlaskaIndustrialDevelopmentandExportAuthority Revised June 2009 Project Fact Sheet:RAILBELT ELECTRICAL GRID AUTHORITY STUDY CURRENT STATUS:This project is 98%complete,with the final report published,and accepted by the Alaska Energy Authority.The results of the study are being used to form a new non-profit statutory corporation to own and operate future Railbelt Generation and Transmission (G&T)infrastructure. PROJECT COST:$800,000 DESCRIPTION:Black and Veatch (B&V)was hired as consultant to AEA to perform the analysis of the potential of a Railbelt Electrical Grid Authority in increasing cost effectiveness and reliability in the operation of the Railbelt transmission grid.B&V will analyze operation costs,look at current and future generation sources,look at current and future electrical demands and develop a series of future scenarios with recommendations for a grid authority. This work will be done in conjunction with the Railbelt utilities,through extensive interviews with affected stakeholders and subject matter experts and with the guidance and feedback of an advisory work group. PURPOSE:This Railbelt Electrical Grid Authority (REGA)study will identify a range of grid authority business structures to own,operate,control,maintain and operate the future Railbelt Electrical generation and transmission Grid This business structure alternatives could range from a voluntary organization to dispatch power and manage the grid assets,or it could be more encompassing to include responsibility for planning and acquiring new generation and assuming ownership of existing Railbelt assets. SOURCE OF FUNDS:Legislative appropriation. PARTICIPANTS:Black and Veatch;Alaska Energy Authority;Homer Electric Association; Chugach Electric Association;Anchorage Municipal Light and Power;Matanuska Electric Association;Golden Valley Electric Association;and a variety of stakeholders as represented on the advisory group and through interviews. BENEFITS:The project will provide the range of effective business structures that the Railbelt can employ to manage the future generation and transmission assets,with comparative economic assessments,analysis of barriers to implementation,and an implementation plan. This will provide a basis for any decisions relating to the enhancement and growth of Railbelt Electric Infrastructure under a variety of possible future energy supplies. ADDITIONAL BACKGROUND:A recent petition by MEA to the Regulatory Commission of Alaska called for the creation of a regional Generation and Transmission Cooperative as a means to implement a collective process to secure new generation sources for the Railbelt. This matter is currently being considered by the RCA. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org e 907/771-3000 ©FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 @ www.akenergyauthority.org "<yIDEXxotAlaskaIndustrialDevelopmentandExportAuthority ALASKA ENERGY AUTHORITY Revised August 4,2008 Project Fact Sheet:SWAN-TYEE INTERTIE CONSTRUCTION COMPLETION CURRENT STATUS:The project is well into the second year of construction,Towers are being placed by high lift helicopters,and insulators and wires are being staged for installation.The project is proceeding on schedule,presently with minimal change orders.All major components are at their staging areas.The contractor is using a large staging and living barge,the "Alaska Solution”.The newly restructured G&T entity,South East Power Agency (SEPA)is accomplishing the construction with 2 major contracts for foundations and erection of towers and wire.The project is due to be complete and placed in operation in October of 2009. PROJECT COST:$46.2 million DESCRIPTION:This project will complete the construction of the 57-mile Swan-Tyee !ntertie between the Swan Lake hydro-electric power plant and the Tyee Lake hydro-electric power plant,and when energized will allow the communities of Petersburg,Wrangell,and Ketchikan to be electrically interconnected.The work will be completed in the 2008 and 2009 construction seasons.The intertie will be owned and operated by The Four Dam Pool Power Agency. PURPOSE:This project will allow power that is produced in the Four Dam Pool transmission network to be scheduled and economically dispatched.Initially,it is expected that excess water energy available at Lake Tyee generation capacity and energy will be used to offset an energy shortage in the Ketchikan area.In a longer range capacity,the intertie can be used to convey power for export through an export intertie that is being considered into British Columbia. SOURCE OF FUNDS:Grant to the Four Dam Pool Power Agency PARTICIPANTS:The Four Dam Pool Power Agency consisting of three purchasing utilities (municipal utilities of the Cities of Ketchikan,Wrangell and Petersburg)and two electric cooperatives (Copper Valley Electric Association and Kodiak Electric Association). BENEFITS:Generation,avoiding a looming shortage in Ketchikan that could have required Ketchikan Public Utilities to operate expensive and polluting diese!generation. ADDITIONAL BACKGROUND:This project was partially funded in 2005.The Four Dam Pool Power Agency cleared the Right-of-Way and purchased and installed tower foundations, construction was stopped when these funds were expended.The region was able to secure an appropriation of $46.2 million for completion of the project. 813 West Northern Lights Boulevard «Anchorage,Alaska 99503-2495 www.aidea.org e 907/771-3000 e FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org yIDEX (ENOwextAlaskaindustrialDevelopmentandExportAuthority Revised June 2009 Project Fact Sheet: TEELAND DOUGLAS TRANSMISSION LINE PROJECT CURRENT STATUS This project is presently under re-scoping.1)$10M of the original appropriation were re-appropriated to upgrade the Static VAR Compensation Equipment that allows the Alaska Intertie without damaging transients,and a repair of Tower 195,a transmission tower that is in danger from encroachment by the Talkeetna River,and 2)the AEA is accomplishing a regional integrated resource plan for the Railbelt,that will establish an economic plan for transmission and generation to serve the Railbelt over the next 50 years. Under this plan,the segment upgrade will be viewed in the context of overall system improvement.It is expected that endpoints of the intertie completion project will be set under this planning effort,and the project may need to be re-scoped and funding level modified.Work has been halted to renegotiate the contract,and for possible re-scoping under the IRP. PROJECT COST:$20.3 million DESCRIPTION:Upgrade and extend the line from the Teeland Substation on Knik-Goose Bay Road to the Douglas substation in the Matanuska-Susitna Borough.The project is an integral part of the Alaska Intertie and will replace approximately 25 miles of an existing transmission line operated at 138kV,owned by MEA. PURPOSE:Construction of this bypass line will parallel the existing MEA owned line,and allow the present MEA owned intertie link,20 miles of which is insulated at 115kV and operated at 138kV,to return to MEA control and service.Continued use of this 20-mile portion of the 25-mile MEA asset by certain Railbelt utilities until January 1,2014 has been provided for through an RCA order. SOURCE OF FUNDS:2002 Legislative appropriation to AEA. PARTICIPANTS:EA is contracting with Municipal Light and Power under a cooperative agreement to accomplish the transmission line project.AEA will own the new line and it will become part of the Alaska Intertie Project. BENEFITS:This new line will be an addition to the existing 170 mile Alaska Intertie.With AEA ownership and access,the existing agreements with MEA for use of MEA transmission lines, which are complex,will no longer be needed.It is expected that intertie operations will be simplified,and MEA will gain the full use of its assets it previously had devoted to intertie operation. ADDITIONAL BACKGROUND:It was determined that the most effective way to construct the line was to have ML&P manage all construction activities.This decision was the result of a collaborative effort between AEA and the Intertie participant utilities.The project has been approved by the Intertie Operating Committee. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org @ 907/771-3000 «FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org feos nner 7 es oem sane eC eS es ereeeeee er t i é i'.¥4 oR:é "ip :fa . Z a ¥®b } 3 %4 :t { i %m-oa5 r ° t2fai2i%i * . ENERGY AUTHORITYewraeae TOpIES Greintt dina)proyjaci Setque, Ronararal iL GTA aVROLEPESS,laveIr Gane tri (GoyatsinatRteya (a)KO LS |REGS Riehiting) ISSteg Ceeypypreral \tajaralneg) BEL ULC ED DLODLAEDU DET eTTOO ROECs(atewseltoys1exe!lahy HPPIDS Pixoyaa)ON (AE Suet TEVA Aileag)y UE SEW Funding CappedBeeneae RoundEL 2 pee ees Ree Londing) MAGA ive ie ie se Ske eqybe pa gee F y cones st !pes LEBER eGo sew og qt pe ;i orate PW eden |(Soe igfinim'fesales fa ply de aaJT ragRTESyeYSb tone wooee SASS >,'b carne . ry *: A ... oligarch VorocleCLUcEDIOCUB St)UikVTi OU Kes .bee.aoeroeoo i on '4 i 4 '- , i me 3Aiaoe:aay nee re tp Pe r e :yer,*'ryyet >aoe + Tg Sa mia ge) x:hs ets soo ie SEY Zhencunceye kl Feseapysiona,wmak a.;yur*CINDRIAG xq.oat a===ARSNODACENE AL aaa'eA OfEAG PEER?Ite, eth t 7 Cabare BA . 1 > $ a t ol a ' . : ' Rg : \ aca 5 Xe 1 "ti an " Woe cb * ong! ¥ '/ van Se y Sis a i. aa .,. oe 3 : ' i. ar y bt . 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Pr ae my / Sei uet4as -relerenee atoPieperbo. eeeoeTam$e pan iege OTT 5 3arsNepaSheeAean 7oe aNxeeae Se as 3 € ' Cumaintdhy ©sieht onvitehing)iwerclnanceilavesrSHalnion(aIRONSCIeS | NEN iNfl(DROSS,Ofinermawnng Rou ZiarateliirovnvalltwaxclnaneellSuethi CopeFundingJxsalceaulltrovay1A)IntleeeY asi COMITMLITTSS,,2 wail lheras iTteany |a nal lapendng on eweallbie|Fetalne)itinlet PROuati Prraxdlureret EIMANGhY NESSINEGI1H)OKIETAGS iTPCSIATTIVESHerr (prithvstue-aeepremaurs WNTEH)(HONEA)fowlaIlie 'interact ->Snare earine GeOM ERAGLOW Ko ResONoNTIA Wag STNSIAEKar Tihaalk woul NESE)EMSGhy Aulinortidy Stil 33 Wvkexsit (Nioviimesyim ILgrafmtes (Bonullenzurcal Andnoege,Nese 99503 MeeeAlaskaRenewrogress we et and Audit CommitteeAnchorage bt nergy Fund Report "sy a hot Topics a Grant and project status a Round 1 grant progress bar chart _m Construction progress ©a Staffing a Issues ms Capped funding a Ensuring appropriate public benefit from projects developed by IPPs s Progress on regulations | Grant Progress-Round 1 8/7/09 OOOdFunding Capped $16.0 18 $19.0 7 Rig Th WIC pa TO Beer ew ce ag.pk ek be,ae pe "ae be ee ag io ak ee SR RT,bee de pets”tpi 4 &aleNeTEyrhsSoetageCeeeegeeethyfhet 're WT ahr tae etd Ts aot al ee fg i Capacity:800 kw €Pillar Mt Wind,Kodia Rata'aewyaos.AveBY= Capacity:4.5 MW Denali Solar Thermal foeope:E i.TadfsSMCoserteetacana;ssoeaNee Bane Juneau Airport Moose Ground Source == Heat Pump No.Prince of Wales Intertie, Coffman Cove &Naukati >34.5 kVCapacity Miles 48 Unalakle ,ind at awrrY SE ee a et web yg es A Capacity:600 kw North Pole Heat Recovery | Tok School Wood-Fired Boiler eee.ass'pens *"geerBe.f 7s'bhOELRecotaaeseckeeSECapacity:404 kw net ,Paper diverteg from landfill.5,000 ton/yr Hydrokinetic (River Flow) Energy Ruby Hydrokin -Staffing n Currently 10 AEA staff providing technicaloversightonprojects es AEA in process of interviewing for 4additionaltechnicalstaff Cappec $4 mi Issues. Funding lion in high energy cost communities, $2 milli .lion in low a Progress mixed depending on availablefinancing a Independent Power Producer energy rates Need to balance incentives for private entrepreneurs with protecting public interest -g@ Short-term:hire contractor to recommend cost-based rates s Eventual:AEA-RCA agreement for coordinating responsibilities Thank you Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska 99503 www.akenergyauthority.org EO ET mens ee ce ceeyeorawen le ope oe er' t vos Alaska Renewable Energy Fund rogress ReporOenSRE as4EatCieGRINitdOAAan Topics es Grant and project status s Round 1 grant progress bar chart s Construction progress n Staffing a Issues a Capped fundingpsEnsuringappropriate public benefit from projects developed by IPPs »Progress on regulations Grant Progress-Round 1 8/7/09 O Initial Draft:Grantee Action Needed O Draft:AEA Action Needed O Final Waiting for Grantee Sig OD Active &Amended Funding Capped Grant Status by Numbers of Projects 6 |29 3 22 24 0 10 20 30 40 50 60 70 Grant Status by Amount of RE Fund ($M) $16.0 $49.0 $3.8 $19.0 |$28.3 $0 $20 $40 $60 $80 $100 ETT GER at "ae P 3 * aA Ee CE MEeh Soad'-ke.7:PsviteoNFae yy f #p je.ad RE Fund Grant $750,000 Total Project Cost S 10,153,000 Capacity:800 kw Est Fuel Displaced/yr 117,000 gal 6akoewhatwatellPillar Mt Wind,Kodiak eae & S 4,000,000 Total Project Cost S 23,320,000 Capacity:4.5 MW Est Fuel Displaced/yr 1,203,000 gal Denali Solar Thermal aNons"-mee..'°Lte.tebdwe$asi¥a8Fia.Ahka,pesterbakRE Fund Grant S 190,000 Total Project Cost S 190,000 Est Fuel Displaced/yr 5,700 gal Juneau Airport Ground Source Heat Pump RE Fund Grant S 513,000 Total Project Cost $1,076,000 Est Fuel Displaced/yr 29,500 gal No.Prince of Wales Intertie, Coffman Cove &Naukati >wwun)tMm«>»€atVwrc]o.=Ve a oOcond&AISNW©mnWmMmeLagnOeeViVY)=ten>.23 »OoOsfont - OocyyuUOAOco?,=caYU5.wichLuaeeu Unalakleet Wind FRE I Sra IOAN EARS Tana STA TE ga ERNE SEAS SDR ARETE Ae COCA mE ER Mh SAIN SERRE SNE OOS EC ER AE ARICA AET $eaehnneSactbbiashicggiaSRIMSapIaSponerceeeen7 Oe -RE Fund Grant S 4,000,000 : Total Project Cost $4,194,340 Est Fuel Displaced/yr 90,000 gal Fodkin earatth eaeDewemaaeisTens,neyees tips isia mi Capacity:600 kW North Pole Heat Recovery $840,000 $1,050,000 RE Fund Grant Total Project Cost 99,000 galEstFuelDisplaced/yr Tok School Wood-Fired Boiler osRE Fund Grant S 3,245,349 Total Project Cost S 3,805,349 Est Fuel Displaced/yr 50,400 gal MS ost WEoreTNorthPoleBiomass-Fired Power-=-CEE SAAT TT EOINIE :wweOe>bercalty peSHSOeane:*"Ree nm+honesttea rf to.cae 4 =TScw©-F)cf2°=+0St.¥EsOo.ocowoa&GOYWaoo7oo©ONSoroooo226NTT|gViVeN;>.wwOOwnW@W88 ;om - -&c3ysOs0Cwcc=>caWY5. -wotLu 7crew 5,000 ton/yr Hydrokinetic (River Flow) Energy RE Fund Grant S 461,950 Total Project Cost S 446,950 Est Fuel Displaced/yr 2,800 gal Statewide Resource Assessment RE Fund Grant S 565,439 Total Project Cost S 565,439 Staffing a Currently 10 AEA staff providing technical oversight on projects s AEA in process of interviewing for 4 additional technical staff Issues a Capped Funding a $4 million in high energy cost communities, $2 million in low a Progress mixed depending on available -financing s Independent Power Producer energy rates Need to balance incentives for private entrepreneurs with protecting public interest a Short-term:hire contractor to recommend cost-based rates =»Eventual:AEA-RCA agreement for coordinating responsibilities Thank you Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska 99503 www.akenergyauthority.org