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HomeMy WebLinkAbout2022-03-02 AEA Agenda and docs 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG Alaska Energy Authority Board Meeting Wednesday, March 2, 2022, 8:30 AM AGENDA- UPDATED Dial 1 (888) 585-9008 and enter code 212-753-619# Public comment guidelines are below. 1. CALL TO ORDER 2. ROLL CALL BOARD MEMBERS 3. AGENDA APPROVAL 4. PRIOR MINUTES – January 27, 2022 5. PUBLIC COMMENTS (2 minutes per person) see call in number above 6. EXECUTIVE SESSION – NONE 7. NEW BUSINESS A. Renewable Portfolio Standard (RPS) Presentation B. Annual Report C. AEA Cash Movement Analysis and Insights 8. OLD BUSINESS - NONE 9. DIRECTOR COMMENTS A. Infrastructure Investment and Jobs Act (IIJA) B. Owned Assets Update C. Renewable Energy Fund (REF) i. Round 13 Update ii. Round 14 D. Power Cost Equalization (PCE) Statistical Report E. EURP update F. FY2022 AIDEA / AEA Org Chart G. Legislative Update H. Community Outreach I. Articles of Interest J. Next Regularly Scheduled AEA Board Meeting Wednesday, April 13, 2022 10. BOARD COMMENTS 11. ADJOURNMENT Public Comment Guidelines Members of the public who wish to provide written comments, please email your comments to publiccomment@akenergyauthority.org by no later than 4 p.m. on the day before the meeting, so they can be shared with board members prior to the meeting. On the meeting day, callers will enter the teleconference muted. After board roll call and agenda approval, we will ask callers to press *9 on their phones if they wish to make a public comment. This will initiate the hand-raising function. We will unmute callers individually in the order the calls were received. Alaska Energy Authority Page 2 of 2 When an individual is unmuted, you will hear, “It is now your turn to speak.” Please identify yourself and make your public comments. 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG Alaska Energy Authority DRAFT BOARD MEETING MINUTES Thursday, January 27, 2022 Anchorage, Alaska 1. CALL TO ORDER Vice-Chair Sande called the meeting of the Alaska Energy Authority to order on January 27, 2022, at 9:04 am. She apologized for the delay of the meeting start time. A quorum was established. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member) (arrived late); Vice-Chair Julie Sande (Commissioner DCCED); Anna MacKinnon (SOA-DOR) (arrived late); Albert Fogle (Public Member); Bill Kendig (Public Member); and Bill Vivlamore (Public Member). 3. AGENDA APPROVAL MOTION: A motion was made by Mr. Kendig to approve the agenda. Motion seconded by Mr. Fogle. Curtis Thayer, Executive Director, informed that Chair Pruhs is on his way to the meeting from the airport. Mr. Thayer suggested to move Item 6. Executive Session after Item 9. Director Comments so that Chair Pruhs is present. There was no objection to the friendly amendment to the agenda. A roll call was taken, and the motion to approve the agenda, moving Item 6. after Item 9., passed without objection, with Chair Pruhs absent and Ms. MacKinnon absent. 4. PRIOR MINUTES - December 1, 2021 MOTION: A motion was made by Mr. Kendig to approve the prior minutes of December 1, 2021, as presented. Motion seconded by Mr. Fogle. The motion to approve the minutes of the December 1, 2021, minutes passed without objection. 5. PUBLIC COMMENTS (2 minutes per person) Vice-Chair Sande informed that each person is allowed two minutes to comment. She requested that the comments relate to the agenda items. Ken Castner stated that he is unaffiliated. He commented that he is also sorry that AEA is still confused about how to indicate the correct meeting time and begin at the published start time. Alaska Energy Authority Page 2 of 8 Mr. Castner noted that this is the second meeting in a row that he has had to use his cell phone and telephone to make communication after the published start time. He highlighted the executive session and noted that AEA does not enjoy the same sort of confidentiality protections that AIDEA maintains. Mr. Castner indicated that even at AIDEA’s standards, CEA and MEA would have to be the initiators in order to have an executive session. He stated that if he were a member of the either of the co-ops, he would be questioning why co-op business needed to be conducted in a session that is forever sealed from public scrutiny. These are member-owned cooperatives. Mr. Castner expressed his curiosity as to why and under what agreement the decision was made to give presentations only in executive session. He believes the deliberative process is a public process by law and that notion should be followed. There being no other members of the public online or in-person wishing to make a public comment, Vice-Chair Sande closed the public comment period. 7. NEW BUSINESS A. Resolution No. 2022-01 FY23 Operating and Capital Budget Submissions Ratification MOTION: A motion was made by Mr. Kendig to approve Resolution 2022-01 FY23 Operating and Capital Budget Submissions Ratification. Motion seconded by Mr. Fogle. Mr. Thayer advised that the Governor submitted his budget on December 15th. The purpose of the resolution is to ratify the budget that was proposed for AEA. There are no changes to the Operating Budget from last year. There is a significant change in the Capital Budget. The Governor approved the standard ask of $200,000 for electrical emergencies. The budgeted amount for bulk fuel upgrades is $5.5 million, with a Federal match of $2 million for a total of $7.5 million. The budgeted amount for powerhouses is $10 million, with an expected Federal match of $18.5 million for a total of $28.5 million. This is a significant increase over previous years. Mr. Thayer discussed that the Renewable Energy Fund program budget has $15 million. This is the single largest increase since 2014. Round 14 currently has 39 applicants. The budget includes $1.5 million in the supplemental for the electric vehicle (EV) infrastructure. There are Federal funds of approximately $51 million that could be made available to AEA working with State DOT to develop a plan to apply to the Federal program funds. The budget contains $2.5 million for Railbelt planning to continue AEA’s efforts in working closely with the utilities regarding the Dixon diversion and transmission upgrade opportunities. There were no questions or comments. Mr. Thayer reported the reason for Ms. MacKinnon’s delay and noted that she will arrive later in the meeting. A roll call was taken, and the motion to approve Resolution 2022-01 FY23 Operating and Capital Budget Submissions Ratification passed, with Chair Pruhs absent and Ms. MacKinnon absent. 8. OLD BUSINESS – None. Alaska Energy Authority Page 3 of 8 9. DIRECTOR COMMENTS A. Response to Board Questions Mr. Thayer informed that the responses to Board questions are included the packet. The cost per kilowatt by community is presented annually and are pulled from RCA filings. B. Bradley Lake Required Project Work Mr. Thayer discussed the memo included in the packet regarding the Bradley Lake Required Project Work. Staff has been collaborating with the utilities to identify upgrading projects related to Bradley Lake. The Department of Law (DOL) determined that the SSQ Line purchased in December 2020 qualifies as required project work. The DOL has a D. Hittle report that refers to the condition and capital improvements needed for Bradley Lake which have been approved for required project work. Mr. Thayer informed that outstanding issues awaiting required project work determination include the Battery Energy Storage System (BESS) within the Homer service territory and reviewing the lines that come from Bradley Lake into Soldotna and Sterling where it connects to the SSQ Line. Those lines are owned by Homer. Staff is working with the Bradley Lake Management Council (BPMC) and the Board regarding the capacity agreement on that line. Mr. Thayer reported that the total upgrade package is approximately $300 million. There is approximately $225 million that is available through excess payments. Staff will continue working with the utilities and hopes to come before the Board with a proposal for AEA bonding for the package of projects. The Governor’s Office has been briefed on this proposal package and is supportive of the direction. Mr. Thayer believes the key component is to ensure that the transmission lines are upgraded and capable for increased transmission before additional renewable energy is introduced onto the system. C. Dixon Diversion Project Mr. Thayer explained that the Dixon Diversion Project is similar to the Battle Creek Diversion Project and work with the utilities through the BPMC is ongoing. Stream gauges have been installed at a potential site to divert water and to collect information. Mr. Thayer discussed that Bradley Lake electrifies approximately 54,000 homes. The addition of Battle Creek added approximately 5,000 more homes, which is about a 10% increase. The early-stage investigations for the Dixon project estimates the potential to add electricity for 24,000 to 30,000 homes. This is a significant increase, but it is not possible unless there are transmission upgrades out of Bradley Lake. D. Hydro Update Mr. Thayer informed that the quarterly Hydroelectric Program update is included in the Board packet. The funding for these smaller projects is provided by either REF grants or AEA funds. Mr. Alaska Energy Authority Page 4 of 8 Thayer gave a brief review of REF projects Fivemile Creek Hydroelectric, Thayer Lake, Nuyakuk River Hydroelectric, Final Design of Water Supply Creek Hydroelectric, and Cordova Hydro Storage Assessment Project. Mr. Thayer informed that there are over 100 hydro projects in Alaska. He noted that AEA is involved in a majority of those projects. E. Renewables Update Mr. Thayer reviewed the Bi-Annual Alternative Energy and Energy Efficiency (AEEE) Program update included in the Board packet. The update includes the Wind Program and its current projects, the Biomass Program and its current projects, and the Energy Efficiency Program. Mr. Thayer discussed the expansion of the organizational chart to include a Director of the AEEE/Renewables Program. He noted that Audrey Alstrom will join the team as the Director in this fast-growing area. She is a former Project Manager and a professional engineer. She will oversee the $250 million worth of upgrades on the transmission lines, the Dixon Diversion, and other projects including renewable projects. F. VW Settlement Mr. Thayer stated that the update on the VW Settlement in included in the Board packet. He highlighted that the $8.1 million from the VW Settlement has been used to replace diesel engines in rural Alaska, school bus replacements, public transit bus replacements, garbage and box trucks replacements, and the electric charging corridor. There are approximately $400,000 unused excess funds from interest earnings that is anticipated to be deployed for school bus replacement or public transit bus replacements. G. Power Project Loan and Dashboard Mr. Thayer discussed the Power Project Loan and Dashboard Report is included in the Board packet. There are 20 outstanding loans for a total of approximately $27 million. The uncommitted cash balance is approximately $11 million. The one delinquent loan is in the amount of $3,000. This is the last payment for the community. Contact has been made and the loan is anticipated to be paid off. H. EV Update The EV Update is included in the Board packet. Mr. Thayer noted the involvement of the Alaska Electric Vehicle Working Group. He discussed the current status of funding and the Infrastructure Investment and Jobs Act that has the potential for funding of $50 million. Staff is working with DOT on the efforts for the highway corridor, from Homer to Fairbanks to Tok, and also the marine highway system, including Kodiak and Southeast Alaska. One concern staff raised with the Department of Energy and DOT during the public comment period is that there is not funding available for rural Alaska hub communities, such as Dillingham, Nome, or Kotzebue. Another concern is the distance restriction that highway corridors do not exceed 50 miles. This is unrealistic in some parts of the Western United States and particularly in Alaska, with Girdwood Alaska Energy Authority Page 5 of 8 to Cooper Landing as an example. Mr. Thayer believes that these issues were oversights during the initial passage of the bill Vice-Chair Sande noted that vehicles on ferries may need that ability to charge while on the ferry. She asked if this funding could be utilized for adding charging capability to the ferries. Mr. Thayer indicated that issue is outside the scope of this particular EV infrastructure funding. He noted there are other buckets of funding that do include ferries and fleets, which are within the purview of DOT and that DOT is taking the lead in those efforts. I. Denali Commission Update Mr. Thayer commented that the relationship with the Denali Commission has grown. He and Tim Sandstrom, Director Rural Programs, have met with new Federal Co-Chair on several occasions. The total funding for active Denali Commission awards is approximately $30 million, as shown in the provided report. The Denali Commission is AEA’s funding partner on potential additional funds of $18.5 million for bulk fuel and $7.5 million for powerhouses. Mr. Thayer noted that the Denali Commission received funding from the Infrastructure Bill for water upgrades and sewer upgrades in rural Alaska and is utilizing AEA to deploy those funds. However, the funding did not consider the need for the power to operate those systems. The Denali Commission is working with AEA to upgrade the powerhouses in those communities. J. EURP Update Mr. Thayer reported on the Electric Utility Relief Program Update included in the Board packet. The program was discussed at the December Board meeting. The Department of Commerce requested AIDEA to design a program with the $7 million to reimburse the utilities for any Covid- 19-related residential debt that occurred during the Governor’s proclamation. There are over 200 potential qualifying utilities, of which 35 applied to the program. Mr. Thayer noted that other Covid-19 relief funds, including from Alaska Housing, have been utilized to assist utilities paying their debt. He explained that approximately $4 million will be deployed through Round 1 of this program and that there will be a Round 2 offering the remaining funds. Utilities cannot receive funding twice. Vice-Chair Sande asked if there were many applicants who were denied funding. Mr. Thayer informed that AEA did not deny any applicants, but that there were instances in which the funding amount was less than requested. Reimbursement can only be provided for the electrical portion of residential utilities. There were also circumstances where the utility received other relief funds prior to this release and the debt can only be relieved once. Staff worked with the utilities closely to determine the approved amounts. Mr. Thayer believes the program was a success and shared a letter of appreciation from Chugach Electric regarding their grant and AEA’s efforts. K. FY2022 AEA / AIDEA Org Chart as of 1/31/2022 Mr. Thayer discussed the provided 1st Quarter Organizational Chart. He noted that Ms. Alstrom is the new Director of the AEEE Program and that Josephine Hartley and Taylor Asher report to her. Alaska Energy Authority Page 6 of 8 Interviews are currently being held for the vacant project manager position in Rural Programs, for the vacant program manager economist position in Planning, and for the vacancies in the Finance Department. He noted that Amy Adler has returned on a temporary basis as the Controller. Mr. Thayer informed that two Finance employees left recently for positions at utilities. The vacant administrative assistant position most likely will be converted to an assistant project manager to help provide support for Renewable Energy, Electric Vehicles, and Owned Assets. Vice-Chair Sande asked if there has been an uptick in staff turnover. Mr. Thayer responded that staff turnover is stable, but there are a few positions that have been difficult to fill. He noted that many agencies have experienced this. There have been no changes in AEA’s senior management team in the last three years. The project managers who have left, did so for personal reasons. Mr. Thayer reiterated the importance of having the staffing in place for the increased workload of the Infrastructure Bill. He informed that there are a few project managers who are eligible for retirement and succession planning is necessary to backfill those positions. Mr. Thayer discussed that vacancies in the Finance Department have been challenging. Review of compensation and employee evaluations occurred. He noted the increase in salary range from Range 12 to Range 14 in order to compete and adapt in the current market conditions. Mr. Thayer stated that Dona Keppers, CFO, is very attentive with her staff and they are on the path to hiring additional key components. L. Community Outreach Mr. Thayer discussed the provided six-month look-back listing of AEA’s community outreach engagements. Most recently, Mr. Thayer and Mr. Sandstrom presented to the Denali Commission Board. Mr. Thayer highlighted that the Governor is hosting an Alaska Sustainable Energy Conference May 24 – May 26 at the Dena’ina Center. The Governor’s Office is the lead and AEA is providing support to identify speakers, moderators, and other aspects of the three-day conference. Additional information on those efforts and AEA’s sponsorship role is forthcoming. M. Articles of Interest Mr. Thayer gave an overview of the articles of interest included in packet. He highlighted the article from Alaska Business Monthly regarding the reduction of emissions and the charging stations that have been implemented. N. Next Regularly Scheduled AEA Board Meeting Wednesday, March 2, 2022 Mr. Thayer advised that the next scheduled AEA Board meeting is Wednesday, March 2, 2022. Mr. Kendig requested a brief at-ease. There was no objection. Chair Pruhs returned the meeting to order and noted that both he and Ms. MacKinnon are now present. Alaska Energy Authority Page 7 of 8 MOTION: A motion was made by Mr. Kendig to enter into executive session to discuss confidential matters, the immediate knowledge of which would have an adverse effect upon Alaska Energy Authority, and discuss confidential matters pertaining to personnel. This is supported by the Open Meetings Act, AS 44.62.310, which allows a Board to consider confidential matters in executive session. In this case, the Board believes that these are subjects which would have an adverse effect upon the finances of AEA and are protected by law, due to the rules protecting personal privacy and certain business information. Motion seconded by Vice-Chair Sande. The motion to enter into executive session to discuss confidential matters, the immediate knowledge of which would have an adverse effect upon Alaska Energy Authority and discuss confidential matters pertaining to personnel passed without objection. 6. EXECUTIVE SESSION: 9:58 am Discuss confidential financial matters (CEA/MEA Presentation) and discuss confidential matters pertaining to personnel. The Board reconvened its regular meeting at 12:00 pm. Chair Pruhs advised that the Board did not take any formal actions on matters discussed while in executive session. 10. BOARD COMMENTS Mr. Kendig expressed that he is pleased with the collaboration and progress with Mr. Thayer and the utilities. Vice-Chair Sande noted that during the State of the State, she appreciated the Governor’s remarks positively reflecting on AEA and the work of the team and the staff. She expressed appreciation to the staff for their efforts. Mr. Vivlamore thanked Mr. Thayer and asked for the potential percentage increase of the Bradley Lake expansion. Mr. Thayer explained that Bradley Lake provides approximately 10% of Railbelt power. He noted that the successful expansion of the Dixon diversion would potentially increase Bradley Lake’s capability to provide approximately 16% to 17% of Railbelt power. Mr. Thayer highlighted the diligence of staff involving the Infrastructure Bill and collaborating with the Board and the Governor’s Office. He received a letter of appreciation from the Governor’s Office which also requested to circulate and use the spreadsheet as an example of the work product for other commissioners and for all departments. Mr. Thayer noted that the appreciation goes to staff and to Ms. Hartley. Chair Pruhs expressed appreciation to Board members for their indulgence since he was late to the meeting. He thanked staff for their efforts. He was pleased with the opportunity to visit with CEA and MEA, which increased his understanding. Chair Pruhs encouraged the continued collaboration with the utilities. Alaska Energy Authority Page 8 of 8 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 12:05 pm. ___________________________________________________ Curtis W. Thayer, Executive Director / Secretary SB 179 OVERVIEW Curtis W. Thayer, Executive Director T.W. Patch, JD, Director of Planning Senate Labor and Commerce Committee February 23, 2022 ALASKA ENERGY AUTHORITY Railbelt Energy –AEA owns the Bradley Lake Hydroelectric Project, the Alaska Intertie, and the Sterling to Quartz Creek Transmission Line —all of which benefit Railbelt consumers by reducing the cost of power. Power Cost Equalization (PCE) –PCE reduces the cost of electricity in rural Alaska for residential customers and community facilities, which helps ensure the sustainability of centralized power. Rural Energy –AEA constructs bulk fuel tank farms, diesel powerhouses, and electrical distribution grids in rural villages. AEA supports the operation of these facilities through circuit rider and emergency response programs. Alternative Energy and Energy Efficiency –AEA provides funding, technical assistance, and analysis on alternative energy technologies to benefit Alaskans. These include biomass, hydro, solar, wind, and others. Grants and Loans –AEA provides loans to local utilities, local governments, and independent power producers for the construction or upgrade of power generation and other energy facilities. Energy Planning –In collaboration with local and regional partners, AEA provides economic and engineering analysis to plan the development of cost-effective energy infrastructure. AEA Programs and Services AEA works to diversify Alaska’s energy portfolio, engages on energy planning and policy, invests in Alaska’s energy infrastructure, and provides rural Alaska with technical and community assistance. AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 02 What is a Renewable Portfolio Standard? Renewable Portfolio Standard (RPS) A requirement on retail electric suppliers… To supply a minimum percentage or amount of their retail load… With eligible sources of renewable energy Typically Backed with incentives of some form (financial or other) Often Accompanied by a tradable renewable energy certificate (REC) program to facilitate compliance Never Designed the same in any two states AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 03 Senate Bill 179 Senate Bill (SB) 179 promotes energy independence, long-term cost reductions, and competitive markets in Alaska’s Railbelt. SB 179 aligns Alaska with 30 states and two territories in creating a renewable portfolio standard on the Railbelt. A key element of the Governor’s RPS is a firm commitment to transition to 30% renewable power by 2030 and 80% by 2040. Expanding our renewable energy portfolio is the best way to diversify our supply thus increasing Alaska’s energy security. AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 04 Prior Legislative Action AN ACT DECLARING A STATE ENERGY POLICY. Be it enacted by the Legislature of the State of Alaska *Section 1. The uncodified law of the State of Alaska is amended by adding a new section to read: LEGISLATIVE INTENT. It is the intent of the legislature that (1) the state achieve a 15 percent increase in energy efficiency on a per capita basis between 2010 and 2020; (2) the state receive 50 percent of its electric generation from renewable and alternative energy sources by 2025; (3) the state work to ensure a reliable in-state gas supply for residents of the state; (4) the power project fund (AS 42.45.010) serve as the main source of state assistance for energy projects; (5) the state remain a leader in petroleum and natural gas production and become a leader in renewable and alternative energy development. Section 2. Permanent law. See Table of Disposition of Acts. Approved: June 16, 2010 2010 Temporary Special Acts and Resolves, An Act Declaring a State Energy Policy, Chapter 82 Effective: September 14, 2010 AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 05 Recent Evolution RPS Standards and Goals RPS policies exist in 30 States and DC; apply to 58% of total U.S. retail electricity sales JANUARY 2012 Source: N.C. Solar Center at N.C. State University, Database of State Incentives for Renewables and Efficiency (accessed July 2012). (Correction: Amended source corrects the source listed in original publication of February 3, 2012.) Note: The map includes West Virginia as a State with a Renewable Portfolio Standard, although the Interstate Renewable Energy Council categorizes it as a goal State rather than an RPS State. Source: Database of State Incentives for Renewable Energy & Efficiency® September 2020 SEPTEMBER 2020 AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 06 HOW DO WE GET THERE U.S.AK 34% 58% 6%2% AK* Energy Production Profile by Source (%) Oil and Gas Coal Renewable Energy (Biomass, Solar, Wind) Hydroelectric (*With Susitna-Watana) Nuclear Power AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 08 Soldotna Homer Seward Location –The Bradley Lake Hydroelectric Project is located 27‐air miles northeast of Homer on the Kenai Peninsula Benefits –Provide low cost energy to 550,000+ members of Chugach Electric Association, City of Seward, Golden Valley Electric Association, Homer Electric Association, and Matanuska Electric Association Annual Energy Production –~10% of Railbelt electricity at 4.5 cents/kWh (or ~54,400 homes/year) and over $20 million in savings per year to Railbelt utilities from Bradley Lake versus natural gas Status –Energized in 1991 Dam Height –125 feet Dam Elevation –1,190 Feet Reservoir Length –4 miles Reservoir Width –1.3 miles Installed Capacity –120 MW Annual Energy –400,000 MWh Cost –~$400 Million Bradley Lake Hydroelectric Project Hydroelectric power is Alaska’s largest source of renewable energy —and Bradley Lake is Alaska’s largest hydro facility. AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 09 Installed Capacity –≤ 180 MW Annual Energy –100,000- 500,000 MWh Cost –~$160-500 Million Location –The Dixon Diversion Project is located five miles southwest of Bradley Lake Studying Two Options – -Alternative 1 –Tunnel to Bradley Lake -Alternative 2 –Tunnel to Martin River Powerhouse Benefits –Could provide annual electric energy for 17,000-40,000 homes on the Railbelt. (Bradley Lake Hydroelectric Project: 54,000 homes) Status –Alternative analysis underway Dixon Diversion Project The proposed Dixon Diversion Project would expand the size of the largest hydro project in Alaska —the Bradley Lake Hydroelectric Project. Soldotna Homer Seward 10 $345,000 $1.5 Million $2.5 Million Feasibility Design and Hydrology Environmental Studies Draft License Amendment Detailed Geotechnical Investigations Operations/Power Modeling Environmental Assessment Fiscal Year 2024 Detailed mapping/topography License Amendment Consultations Environmental Studies Hydrology Studies Initial Geotechnical Investigations Preliminary Design Fiscal Year 2023 Establish river gauge Initiate Bradley Lake FERC License Amendment Alternatives Analysis Report (Conceptual Design Fiscal Year 2022 Dixon Diversion: Next Steps AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 11 Peak Demand Scenario on Coldest Day of Year —Hydro AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 12 Peak Demand Scenario on Coldest Day of Year —Wind & Solar AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 13 Railbelt Infrastructure Upgrades The Bradley Lake Hydroelectric Project is managed by the Bradley Lake Project Management Committee (BPMC), which is comprised of a member from each of the five participating Railbelt utilities —Chugach Electric Association, Golden Valley Electric Association, Homer Electric Association, Matanuska Electric Association, Seward Electric Association —and AEA. AEA and the BPMC have identified several opportunities to optimize the value provided by the project to more than 550,000 Alaskans along the Railbelt. These projects will remove transmission constraints, improve grid resiliency, and allow for better use of the Bradley Project’s potential by increasing its ability to deliver more low-cost, renewable energy throughout the Railbelt grid and enhance our ability to utilize that power most flexibly and cost-effectively. The Railbelt region of the State has seen significant changes to its energy infrastructure in the last 10 years. As a result of these changes transmission enhancements are necessary. AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 14 Project Name Scope Schedule Budget Upgrade Transmission Line from Bradley Junction to Soldotna Construction of a second 115 kV transmission line from Bradley Junction to the Soldotna Substation 2022-2029 $66 Million Upgrade Transmission Line from Soldotna to Sterling Upgrade of the transmission line from 115 kV to 230 kV from the Soldotna Substation to the Sterling Substation in accordance with the results of engineering studies 2022-2029 $17 Million Upgrade Transmission Line from Sterling to Quartz Creek Upgrade of the transmission line between the Sterling Substation and Quartz Creek Substation (SSQ Line) from 115 kV to 230 kV 2022-2029 $53 Million Battery Energy Storage Systems for Grid Stabilization Upgrade to existing BESS system in Fairbanks, and also new BESS systems in the Kenai, and Central regions of the grid 2019-2025 $115 Million Study of Alternative Path to Export Energy Off Kenai Peninsula Study the feasibility of the best alternative transmission line path to deliver Bradley Project energy off the Kenai Peninsula 2022-2024 $10 Million Required Project Work Summary Total $261 MillionAEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 15 Constructed in the mid-1980s, the Alaska Intertie is a 170 mile-long, 345 kilovolt (kV) transmission line from Willow to Healy Operated by AEA and Railbelt utilities, the transmission line improves reliability within Railbelt system Allows Golden Valley Electric Association (GVEA) to connect to and benefit from lower cost power Between 2008 and 2018, the Intertie provided an average annual cost savings of $30 million to GVEA customers Alaska Intertie 16 Maximizing Clean Energy for the Railbelt Bradley Lake Expansion (Spillway Raise) –$4 million Bradley-Soldotna 115kV Line –$66 million Soldotna-Quartz Creek (and Substation) –$70 million Bernice Lake-Beluga HVDC –$185 million Dave’s Creek-University 230kV Line –$58 million Grid Stabilization –$115 million 17 2019 Abeyance Rescinded 2017 Licensing Abeyance Susitna-Watana Hydroelectric Project History AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 18 Cook Inlet Natural Gas Value into the Future Opportunities: Home heating on the Railbelt (including potential future expansion) Power generation fuel on an as-needed basis and gas storage (CINGSA) Industrial customers in the Cook Inlet -Combined heat and power applications stand alone customers -Possibility for green hydrogen production -In-state industrial use -Potential pipeline transport for minerals extraction AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 19 813 W Northern Lights Blvd. Anchorage, AK 99503 Main: (907) 771-3000 Fax: (907) 771-3044 akenergyauthority.org @alaskaenergyauthority @alaskaenergyauthority Alaska Energy Authority AEA provides energy solutions to meet the unique needs of Alaska’s rural and urban communities. 20 APPENDIX Susitna-Watana Hydroelectric Project Timeline AEA SB 179 Overview | Senate Labor and Commerce Committee | February 23, 2022 22 2021 ANNUAL REPORT REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG THE ALASKA ENERGY AUTHORITY (AEA) POSITIVELY IMPACTS NEARLY EVERY COMMUNITY AND RATEPAYER IN ALASKA. AEA ACTIVE PROJECTS AND SERVICESCONTENTS 4 Message from the Governor 5 About AEA 6 Message from the Chair 7 Message from the Executive Director 8 Owned Assets 10 Power Cost Equalization 12 Rural Energy 16 Alternative Energy and Energy Efficiency Programs 22 Grants and Loans 24 Financial Highlights 26 Board of Directors 27 Executive Team Biomass or Biofuels Heat Pump Heat Recovery Hydroelectric Ocean/River Other Solar Transmission Village Energy Efficiency Program Wind Map Legend Annual Report Requirements The publication on the activities and financial condition of AEA is submitted in accordance with Alaska Statute (AS) 44.83.940. The report was printed in Anchorage, Alaska at a cost of $5.95 per copy for a total number of 500 copies. Design and production by AEA. Printed by Service Business Printing. Cover Photo AEA and and FreeWire Technologies held a ribbon-cutting ceremony on September 23, 2021 at AJ’s OldTown Steakhouse & Tavern in Homer to commemorate the commissioning of the first of nine EV fast-charging stations to be installed on a statewide network and the very first ultrafast EV charger in Alaska. Photo by Kachemak Communications. 32021 AEA Annual Report22021 AEA Annual Report About AEA Created in 1976 by the Alaska Legislature, AEA is a public corporation of the State of Alaska governed by a board of directors with the mission to “reduce the cost of energy in Alaska.” AEA is the state’s energy office and lead agency for statewide energy policy and program development. Dear Fellow Alaskans, The Alaska Energy Authority (AEA) is home to the state’s energy office and lead agency for energy policy and program development. For more than 45 years, AEA has worked to ensure that Alaskans have access to safe, reliable, affordable energy. AEA owns the Bradley Lake Hydroelectric Project, the largest hydropower facility in Alaska. Energized in 1991, the project provides low-cost power to more than 550,000 Alaskans. To optimize the project’s value, AEA, in partnership with the Railbelt utilities, is working to reduce current transmission constraints to more efficiently deliver power at no increased cost to ratepayers or burden to the State. In rural Alaska, AEA reduces the high cost of electricity through its administration of the Power Cost Equalization (PCE) program. PCE serves 81,200 Alaskans in 193 rural communities primarily reliant on diesel for power generation. Last year’s total PCE budget was $29 million. AEA also invests in energy projects in rural Alaska lowering the costs for our rural neighbors. Since 2000, AEA has invested almost $400 million in rural energy infrastructure. To prepare Alaska for electrification of transportation, AEA has developed a strategic plan to establish a statewide electric vehicle fast-charging network along Alaska highways. AEA has teamed up with site hosts to install 15 fast-chargers and eight Level 2 chargers at nine locations from Homer and Seward to Fairbanks. All chargers are anticipated to be operational by summer 2022. AEA manages the Renewable Energy Fund (REF), a program that diversifies energy sources and provides resiliency through developing renewable energy projects. Working with the Legislature, we identified 11 projects and approved $4.7 million in grant funding in Fiscal Year 2022. In my proposed budget for the Fiscal Year 2023, I included $15 million for the REF program, the largest capitalization of the fund since the Fiscal Year 2014 to continue investing in renewable energy. We have only begun to tap Alaska’s renewable energy potential. Increasing our investment in clean energy today will provide future Alaskans with a sustainable energy future tomorrow. Best regards, MIKE DUNLEAVY Governor MESSAGE FROM THE GOVERNOR OWNED ASSETS AEA owns the Alaska Intertie and the Bradley Lake Hydroelectric Project. These assets benefit Railbelt consumers by reducing the cost of power. RURAL ENERGY In rural Alaska, AEA constructs bulk fuel tank farms, diesel powerhouses, and electrical distribution grids. Through circuit rider, emergency response, and training for operators and utility managers, AEA supports the operation of these facilities. POWER COST EQUALIZATION The Power Cost Equalization program reduces the unit cost of electricity in rural Alaska for residential customers and community customers of eligible utilities. ALTERNATIVE ENERGY AND ENERGY EFFICIENCY AEA provides renewable energy and energy efficiency grants, analysis, and expertise. These include hydro, biomass, wind, solar, and others. ENERGY PLANNING In collaboration with local and regional partners, AEA provides critical economic and engineering analysis to plan the development of cost-effective energy infrastructure. GRANTS AND LOANS AEA provides loans to qualified utilities, local governments, and independent power producers for the construction or upgrade of power generation and other energy facilities. 52021 AEA Annual Report42021 AEA Annual Report MESSAGE FROM THE CHAIR AEA’s mission is to develop and implement low-cost, reliable energy solutions for more than 730,000 Alaskans. Over the past year, we did just that — overcoming the challenges brought on by COVID-19 disruptions, supply- chain issues, and workforce constraints. Our mission has never been more relevant. We are working hard to ensure that Alaska’s energy infrastructure is operationally safe, efficient, and resilient in the face of these challenges. Alaska’s Railbelt transmission infrastructure was constructed more than 40 years. To extend its useful life, AEA acquired a component of the interconnected system located on the Kenai Peninsula in December 2020. That line will soon benefit from $53 million in upgrades critical to the delivery of power from AEA’s Bradley Lake Hydroelectric Project. These upgrades will reduce losses and increase the reliability of this low-cost and carbon-free power for customers along the Railbelt from Kenai Peninsula to Fairbanks. AEA has taken an active role in the development of an Electric Reliability Organization (ERO), which was mandated by the Legislature under Senate Bill 123. The ERO will make the Alaska Railbelt’s Bulk Electric System more reliable and resilient by developing and enforcing system-wide standards, and creating an integrated resource plan. These measures will allow the Railbelt region to more effectively meet future load requirements. Last year, AEA budgeted $29 million in Power Cost Equalization (PCE) payments to rural electric utilities for the benefit of 193 communities and nearly 82,000 Alaskans. PCE is a long-term, stable financing source benefiting residential customers and community facilities. Another highlight was AEA’s award of $1 million in competitive grants to support the installation of eight Level 2 electric vehicle (EV) chargers and 15 fast chargers at nine locations from Seward and Homer to Fairbanks. These charging stations will be located less than 100 miles apart along the state’s backbone highway system. Deploying EV charging infrastructure is critical for the growth of Alaska’s EV market. To help support statewide COVID-19 recovery, AEA administered the Electric Utility Relief Program and distributed nearly $5 million of federally provided funds to 33 electric utilities compensating them for residential members who experienced financial hardship due to the COVID-19 pandemic. As AEA Board Members, we know our decisions affects all Alaskans. This next year will bring new challenges and opportunities, and we are confident that AEA is prepared to respond. J. DANA PRUHS Chair Across our energy projects, programs, and services we focused on finding more efficient and sustainable ways for Alaskans to access clean, dependable, and affordable energy resources to improve living standards, promote economic growth, and create jobs. Throughout the year, we sought ways to optimize the value of our assets. AEA identified opportunities that will enhance Alaska’s largest hydroelectric facility, the Bradley Lake Hydroelectric Project, and is working with its Railbelt utility partners to upgrade and improve Bradley Lake power generation and operations for the benefit of the more than 550,000 Alaskans on the Railbelt. Following the successful completion of the West Fork Upper Battle Creek Diversion project in 2020, AEA is studying a new project to optimize the energy potential of Bradley Lake. Similar to Battle Creek, the Dixon Diversion Project would divert water from Dixon Glacier increasing the annual energy production of Bradley Lake. AEA is improving critical infrastructure across rural Alaska by leveraging federal partnerships to develop an inventory and assessment of eligible community rural power systems to prioritize assistance. For the first time, AEA deployed three-dimensional imaging and geographic information system software to provide a more accurate complete picture of each power system. Through its Renewable Energy Fund (REF), AEA is expanding investment in those energy projects to achieve deployment of clean, sustainable, energy solutions that benefit our residents by lowering costs and diminishing our carbon footprint. Over the life of REF, $275 million of funding has been deployed towards the development of renewable energy. Almost 300 renewable energy projects are part of the REF catalog. AEA estimates that approximately $70 million in fuel cost savings have been achieved by over 95 operational REF projects. Recent weather extremes remind us how vital reliable energy infrastructure is. The federal Infrastructure Investment and Jobs Act will deliver historic levels of new infrastructure investment to Alaska, enabling us to modernize our infrastructure for the benefit of our families and children. Thank you to all of our partners for your continued support and commitment to energy efficiency, renewable energy, transportation electrification, and low-cost energy access for all Alaskans. CURTIS W. THAYER Executive Director MESSAGE FROM THE EXECUTIVE DIRECTOR This year, AEA again delivered on its commitment to pursuing energy solutions that meet the unique needs of Alaska’s rural and urban communities. Through its actions, AEA helped Alaskans develop and thrive. 6 72021 AEA Annual Report 2021 AEA Annual Report 10% Bradley Lake generates about 10 percent of the total annual electrical energy used by Railbelt electric utilities. ENERGY $0.04 From 1995 through 2020, the project averaged 392,000 MWh of energy production annually at $0.04 per kWh. GENERATION COST PER KWH ALASKA INTERTIE Completed in 1986, the Alaska Intertie is a 170-mile long, 345-kilovolt (kV) transmission line that stretches between Willow and Healy and operates at 138 kV. The Intertie connects Golden Valley Electric Association (GVEA), the utility that serves areas north of the Alaska Range, with Southcentral Alaska utilities. It was funded with State of Alaska appropriations totalling $124 million and has no debt service. The Intertie provides significant cost savings through the transmission of economy energy to GVEA. It delivers to GVEA its power share of Bradley Lake and enables the sharing of reserve generation capacity between the Anchorage and Fairbanks load centers. Operation of the Intertie is governed by the Alaska Intertie Agreement signed in 1985 and amended thereafter. The parties to the agreement are AEA, Chugach Electric Association, GVEA, and Matanuska Electric Association. Each of these entities has a seat on the Intertie Management Committee (IMC), which has responsibility for managing the Intertie. Through AEA’s leadership as an IMC member and with its step-in rights on financial decisions regarding the Intertie, AEA is uniquely positioned to ensure that ratepayers across the electrically interconnected Railbelt region benefit as intended under the current Alaska Intertie Agreement. In Fiscal Year 2021, the IMC created an Asset Management Plan for the Alaska Intertie. The plan includes a preventive maintenance program, multi-year projections of maintenance and repair funding, climate change considerations, and analysis of factors affecting future use. The plan incorporates and facilitates some of the major changes anticipated on the Railbelt, such as increasing renewable power generation, reduced greenhouse gas production, and participation by Independent Power Producers. Throughout the 1980s, AEA developed the state’s energy resources to help diversify Alaska’s economy and provide affordable energy to Alaskans. AEA built and owns several key pieces of Railbelt electric infrastructure — the Alaska Intertie, the Bradley Lake Hydroelectric Project, and the Sterling to Quartz Creek transmission line. BRADLEY LAKE HYDROELECTRIC PROJECT Energized in September 1991, the Bradley Lake Hydroelectric Project located near Homer, Alaska has been a low-cost source of electricity for the Railbelt for more than 30 years. The 120-megawatt (MW) facility generates about 10 percent of the total annual power used by Railbelt electric utilities at some of the lowest-cost power to more than 550,000 Alaskans. The power generation potential of Bradley Lake was first studied in 1955 by the United States Army Corps of Engineers. AEA, then the Alaska Power Authority, assumed responsibility for the project in 1982. To date, the total project cost is approximately $400 million. The project was funded through legislative appropriations and AEA revenue bonds that are being repaid by the participating utilities. The Bradley Lake Project Management Committee (BPMC) manages the project, subject to AEA’s non-delegable rights, duties, and responsibilities. Throughout the year, AEA sought ways to optimize the value of the project. Following the successful completion of the West Fork Upper Battle Creek Diversion Project in 2020, AEA is studying a new project to optimize the energy potential of Bradley Lake. Similar to Battle Creek, the Dixon Diversion Project would divert water from Dixon Glacier increasing the annual energy production of Bradley Lake. AEA acquired a component of the interconnected transmission system located on the Kenai Peninsula in December 2020. That line will soon benefit from $53 million in upgrades critical to the delivery of power from Bradley Lake. The upgrades will reduce losses and increase the reliability of this low-cost and carbon-free power for Railbelt customers. OWNED ASSETS 120MW Bradley Lake generators are rated to produce up to 120 MW of power. CAPACITY AVERAGE COST SAVINGS $30M Between 2008 and 2018, the Intertie provided an average annual cost savings of $30 million to GVEA. 8 92021 AEA Annual Report 2021 AEA Annual Report In accordance with AS 44.83.940, AEA produces an annual PCE Statistical Report on the stats and operations of the program. Data is based on information submitted by the utility and is available by community and utility. To view the reports, visit akenergyauthority.org. 91 81,200 500 kWh 70 kWh $29M RESIDENTIAL PUBLIC FACILITIES FUNDS BUDGETED Residential customers are eligible for PCE credit up to 500 kWhs per month. Community facilities can receive PCE credit for up to 70 kWhs per month multiplied by the number of residents in a community. In Fiscal Year 2021, AEA budgeted $29 million for payment of PCE to rural electric utilities for the benefit of our rural communities. POWER COST EQUALIZATION The Power Cost Equalization Program (PCE) was enacted to lower the cost of electrical power born by rural residents and community facilities to a level comparable to that paid by residents of Alaska’s larger cities. Established in 1985, the PCE program makes payments to eligible rural electric utility companies and those companies credit their residential and community facility customers with payments made from the program up to a level of consumption. Those payments result in a reduction of the unit cost of power to residential and community customers. The pre-PCE cost of electricity in rural communities is almost always significantly more than the electricity costs borne by customers in Alaska’s urban areas. Residential and community facility buildings and assets in nearly 200 communities see the benefits of PCE credits. AEA calculates the amount an eligible electric utility is due based on a filing made by the utility and issues monthly payments. The PCE program staff also provides technical assistance to utility clerks who need help preparing and filing PCE reports. The PCE disbursements are funded from the PCE Endowment Fund. AS 42.45.085 provides that five percent of the PCE Endowment Fund’s three-year monthly average market value may be appropriated to the PCE program. In recent years, the five-percent draw on the endowment has been sufficient to fully fund PCE disbursements. Fiscal year 2018 saw the enactment of statutory changes that addresses how excess PCE Endowment Fund earnings are to be used. These changes allowed the endowment fund earnings to pay for PCE program administration costs fully and the earnings could also contribute $30 million to other state programs such as the Community Assistance Program, the Renewable Energy Fund Program, and for some Rural Power System Upgrade projects. AEA is now using a web portal through which participating PCE-communities may submit their Utility Monthly Reports (UMR). The electronically filed UMR should see shortened processing times and that should lead to quicker payments. As the web portal gains broader acceptance and as utility companies gain experience in electronically filing their monthly reports, there will likely also be a reduction in administrative costs to the electric utility companies and AEA. Hand in glove with the portal, AEA is migrating to mandated electronic fund transfer of funds for lowered costs and enhanced security of payments to utility companies. 193 RURAL COMMUNITIES ELECTRIC UTILITIES ALASKANS The cost of electricity for Alaska’s rural residents is notably higher than for urban residents. PCE lowers the cost of electric service paid by rural residents. Ultimately ensuring the viability of rural utilities and the availability of reliable, centralized power. St. George, Alaska 10 112021 AEA Annual Report 2021 AEA Annual Report In rural Alaska, AEA constructs bulk fuel tank farms, diesel powerhouses, and electrical distribution grids. Through circuit rider, emergency response, and training for operators and utility managers, AEA supports the operation of these facilities. Through innovation and collaboration, AEA provides the tools and the guidance necessary for all rural communities to embrace a better energy future. Bulk Fuel Tank Farm, Nunam Iqua, Alaska RURAL POWER SYSTEMS UPGRADE AEA’s Rural Power Systems Upgrade (RPSU) program builds and retrofits facilities in communities of less than 2,000 people, providing stable and reliable power. The typical efficiency improvement in diesel generation is between 10 and 20 percent. Upgrades may include efficiency improvements, powerhouse upgrades or replacements, line assessments, demand-side enhancements, heat recovery, and repairs to generation and distribution systems. The Denali Commission is AEA’s major federal funding partner, which requires a state match of 50 percent for non-distressed communities or 20 percent for distressed communities. RPSU also manages the State’s allocation through the Environmental Protection Agency’s (EPA’s) Diesel Emissions Reduction Act (DERA). Pending yearly funding from Congress, states can apply for DERA funds based on population. In addition to the state program, EPA also has a tribal DERA program that awards funds competitively nationwide. AEA uses DERA funds to replace prime power diesel engines in rural Alaska. AEA selects communities for engine replacement through the DERA program based on current engine condition, redundancy, efficiency, and engine eligibility. In Calendar Year 2021, AEA initiated five RPSU powerhouse replacement projects in Napaskiak, Nelson Lagoon, Nikolai, Rampart, and Venetie. Additional RPSU design and construction work, including engine replacement with DERA funds, was completed in Arctic Village (three engines) and Anvik (one engine). Design has been completed for the Chenega DERA project (two engines). AEA has switched emphasis from full facility replacement to improving operations and maintenance to maximize the benefit to rural power systems. There are currently 22 active Maintenance and Improvement (M&I) projects, which target high return investment in eligible community power systems. Typical projects include replacing old switchgear and control systems, maximizing heat recovery, and updating engine controls to improve efficiency and sometimes replacing diesel gensets. $300M The deferred maintenance for RPSU is estimated at approximately $300 million. DEFERRED COSTS RURAL ENERGY $800M The deferred maintenance for BFU is estimated at approximately $800 million. BULK FUEL UPGRADE Rural Alaska depends on liquid fuels for most of its energy needs — diesel for power generation, and heating and gasoline for transportation. Most rural villages are located along rivers or on the coast, so fuel is delivered primarily by barge. Delivery is often limited by season or weather. Most communities receive barge fuel deliveries once or twice a year. Many of rural Alaska’s bulk fuel facilities were built in the mid-1900s and do not comply with modern regulations. Yet they typically continue in service until upgraded or replaced, posing risks to personal safety and the environment. AEA’s Bulk Fuel Upgrade (BFU) program repairs or upgrades fuel storage facilities in communities with fewer than 2,000 residents. These facilities help decrease the per-unit cost of fuel by allowing the community to purchase fuel in bulk quantities. In Calendar Year 2021 there are five full BFU projects underway. In recent years, AEA has switched its emphasis from bulk fuel facility replacement to Maintenance and Improvement (M&I) projects. There are 18 M&I projects planned currently, which target high-return investment in eligible community power systems. In Calendar Year 2021, AEA completed a full- facility BFU project in the traditional Alutiiq coastal Native Village of Tatitlek. DEFERRED COSTS 12 132021 AEA Annual Report 2021 AEA Annual Report AEA provides soup to nuts technical assistance to rural utilities to ensure that infrastructure lasts its full economic life, preventing catastrophic electrical emergencies, and building community self- sufficiency. This helps assure safe, reliable, operation of rural Alaska electric generation equipment in which millions of dollars are invested. RURAL TRAINING AEA’s Rural Training program develops operators with the skills necessary to operate their energy infrastructure and keep operators compliant with current industry standards. In Calendar Year 2021, 56 operators from 38 communities trained in Bulk Fuel and Power Plant Operations at the Alaska Vocational Technical Center. AEA is pioneering the use of 3D imaging coupled with data from every rural powerhouse to create new ways for operators to learn about their site’s specific needs. AEA has also developed an online training curriculum using the same technology decreasing the cost of travel and expanding the training audience. CIRCUIT RIDER AND TECHNICAL ASSISTANCE The Circuit Rider and Technical Assistance programs provide essential assistance to reduce the number of emergency responses needed when there are power outages in rural communities. In Calendar Year 2021, Circuit Riders assisted eligible utilities over 450 times in providing remote monitoring, training, technical consultation. Onsite assistance and minor repairs to power systems were performed in 82 communities. ELECTRICAL EMERGENCY ASSISTANCE AEA provides power-related electrical emergency assistance to rural communities. Electrical emergency assistance encompasses risk to life or property due to power failure. Thankfully this assistance is rarely needed. In Calendar Year 2021, one emergency response was required. 450 Communities received Circuit Rider and/or Technical Assistance 56 Operators from 38 communities received training 1 Community recieved electrical emergency assistance AEA provides training courses for power plant operators to help ensure that rural utility staff have the essential skills to operate their power plant. 14 152021 AEA Annual Report 2021 AEA Annual Report AEA’s energy technology programs are at the forefront of growing Alaska’s clean energy economy. The programs work with local governments, non-profits, and tribal organizations to implement new energy solutions. They also provide technical assistance, funding, and training to increase knowledge about cost-saving energy technologies. BIOMASS Biomass heat reduces diesel fuel use, keeps the money spent on fuel (wood) within the community, and creates local jobs. AEA’s biomass program funded over 20 operating woody biomass heating systems for schools and public buildings and provided technical support for over 50 operating systems in the state. Along with the United States Forest Service (USFS), the program has funded over 170 preliminary studies to evaluate a community’s biomass potential. In 2021, AEA partnered with the Denali Commission and USFS to fund the design and construction of projects in 10 communities. Despite COVID-19 travel limitations, AEA developed an audit and training program to support existing systems to ensure longevity and sustainability of the systems. HYDROELECTRIC Hydroelectric power is Alaska’s largest source of renewable energy and supplies more than 27 percent of the state’s electrical energy in an average water year. AEA’s hydroelectric program assists approximately 51 utility-scale hydroelectric projects throughout the state. The majority of Alaska’s existing hydro projects are located in the Southeast and Southcentral regions of Alaska. Projects range from concepts to operational hydroelectric facilities. The hydroelectric program focuses on improving efficiency and quality in development, lowering the cost of construction, and coordinating with state, federal, municipalities, tribal entities, and private investors in analyzing, planning, and generally assisting hydroelectric project development. SOLAR Alaska’s latitude presents the challenge of minimal solar energy during long winter months when energy demand is greatest, however there is growing interest in solar photovoltaic (PV) systems. These systems range from on and off-grid residential to utility scale PV. Solar generation in the shoulder months (spring and fall) is often impressive in northern latitudes where clear skies, cool temperatures, dry air and bright, reflective snow all increase solar generation. Solar PV systems can actually exceed their rated output during these times of year. AEA provides solar energy information, resources, and technical assistance. The Power Project Fund and the Renewable Energy Fund have provided grant and loan financing for several PV projects on the Railbelt and in rural Alaska. WIND Today wind energy accounts for 2.4 percent of the state’s total energy production and that percent is growing. Since 2012, Alaska’s wind energy capacity has increased 400 percent. This growth is supported by AEA’s Renewable Energy Fund and information sharing among wind energy producers and stakeholders. AEA’s Alaska Wind Working Group and its Wind Advisory Panel meet regularly to discuss policy issues necessary to advance wind energy. Funding for wind projects is a frequent topic at these meetings. In partnership with the Wind Working Group, AEA facilitates annual educational events including the wind-diesel and energy storage workshops. AEA assists communities in evaluating wind energy and often aids in rural community decision-making.Pillar Mountain Wind Farm, Kodiak, Alaska ALTERNATIVE ENERGY AND ENERGY EFFICIENCY 10 In 2021, AEA partnered with the Denali Commission and USFS to fund the design and construction of projects in 10 communities. BIOMASS PROJECTS FUNDED 27% Hydroelectric power is Alaska’s largest source of renewable energy and supplies more than 27 percent of the state’s electrical energy in an average water year. HYDROELECTRIC POWER 400% Alaska’s wind energy capacity has increased 400 percent in the last decade. WIND ENERGY CAPACITY 16 172021 AEA Annual Report 2021 AEA Annual Report Outdoor lighting retrofit completed at Nenana City School District. ENERGY EFFICIENCY AND CONSERVATION Efficient production and consumption of energy saves costs, reduces demand, and are often the lowest hanging fruit for energy solutions. It is available in every community in Alaska. AEA focuses its end use energy efficiency program activities on commercial buildings, public buildings, industrial facilities, and electrical efficiency. Additionally, AEA organizes the collaborative multi-stakeholder group called the Alaska Energy Efficiency Partnership. Alaska Commercial Property Assessed Clean Energy (C-PACE) Program AEA was awarded $300,000 from the Department of Energy with $60,000 from state matching funds to stand up an Alaska C-PACE program. C-PACE is an innovative clean energy-financing tool that provides access to 100 percent upfront capital for building owners who want to upgrade their buildings with more energy efficient systems. The Municipality of Anchorage was the first to adopt its enabling ordinance. AEA and its project partners are engaging stakeholders across Alaska in C-PACE implementation strategies. Their initiatives include designing uniform program parameters, drafting, moving C-PACE programs through the local ordinance process, and building the framework for the role of the statewide C-PACE Program Administrator. By 2022, AEA hopes to have Alaska C-PACE enabled in three Alaska municipalities. Alaska Energy Efficiency Partnership (AEEP) At the center of AEA’s energy efficiency and conservation outreach efforts is the AEEP, a stakeholder group of over 50 public, private, and non- profit entities from around Alaska who meet quarterly to discuss energy efficiency and conservation efforts in Alaska. The group’s mission is to improve the coordination of efforts promoting the adoption of greater end-use energy efficiency measures and energy conservation behaviors through information sharing and integrated planning so that Alaska may become the most energy efficient state in the nation. BENEFITS OF ENERGY EFFICIENCY Power Pledge Challenge (PPC) AEA partnered in the annual PPC, which educates middle school students in rural and urban Alaska on the benefits of energy efficiency and conservation. The yearlong project increases energy literacy and included 1,014 students from 21 schools in 12 communities who participated in 52 monthly challenges that incorporated developing community energy profiles, energy saving public service announcements, and calculating energy savings by using efficient holiday decorations. Remote Alaska Communities Energy Efficiency Challenge (RACEE) AEA’s efficiency program provides technical assistance through the Department of Energy for nine communities participating in the RACEE. The RACEE projects support upgrades and renewable energy installations in rural Alaska to help save money, energy, and fuel. Village Energy Efficiency Program (VEEP) VEEP is an AEA grant program established by Alaska Legislature in 2010 to reduce per capita consumption through energy efficiency. AEA leveraged federal State Energy Program funds and a grant from Wells Fargo and the Denali Commission to meet our mission. Through a public-private partnership, VEEP received a $1 million grant from Wells Fargo to provide 47 communities with outdoor lighting retrofits. The local match was $397,000, for a total investment of nearly $1.1 million. The project also leveraged Denali Commission funds; with $428,483 of Denali Commission funds and a local match of $110,917, AEA enabled 17 additional communities the same opportunity. Despite the COVID-19 pandemic, communities have actively implemented their projects. Thirty-seven sites are complete, 1,150 lights have been replaced, and 520,450 kWh per year will be saved. Cost per kWh in these communities ranges between $0.19–$1.00. Through a partnership between the tribe and the City, Aniak will be performing lighting retrofits at City Hall, Library, Public Works, Sewer Lift Stations, Fire Department and the Traditional Council/Community Center. Installations will be complete by June 2022. Stimulates the Economy Energy Efficient Buildings Money in your Pocket 192021 AEA Annual Report182021 AEA Annual Report 4 2 3 5 6 7 8 9 1 ELECTRIC VEHICLES AEA made significant progress over the year in leading Alaska’s effort to minimize barriers to electric vehicle (EV) adoption. AEA continued its sponsorship of the Alaska Electric Vehicle Working Group. The Working Group met quarterly and discussed a wide range of topics including how to grow the EV market, utility demand charges, rate structures, and siting criteria for publicly accessible charging locations. AEA increased EV awareness and infrastructure deployment through a range of strategic activities. In partnership with the Dimond Center and the Alaska EV Association, AEA hosted the first EV Car Show and Ride and Drive event. The show earned significant media attention and gave attendees the chance to test drive an EV, talk to a local utility, and visit with EV owners on the benefits and challenges of owning an EV. Lack of EV charging infrastructure remains a significant barrier to EV market adoption. To overcome this barrier AEA developed a multi-pronged approach for the installations of fast-charging and community-based Level 2 chargers. Utilizing State Energy Program (SEP) funds, three Level 2 chargers were installed in downtown Anchorage at two state-owned facilities. More EV public charging stations are planned for deployment in 2022. AEA hopes to see an EV fast-charging network along the highways and at Marine Highway ferry terminals in the near future. The Infrastructure Investment and Jobs Act offers once-in-a- lifetime funding to complete a statewide EV fast-charging network, as well as community-based charging installations in rural and urban areas throughout the state. AJ’s Old Town Steakhouse and Tavern HOMER Custom Seafood Processors SOLDOTNA Grizzly Ridge Lodge COOPER LANDING 1 2 3 7 8 9 Three Bears Alaska TRAPPER CREEK Jack River Inn CANTWELL Three Bears Alaska HEALY • In 2021, AEA utilized Volkswagen Trust and SEP funds to develop the first phase connecting Seward and Homer in the southern part of the state’s Railbelt corridor north to Healy. • Fifteen fast chargers and eight Level 2 chargers will be installed at nine sites. • Charging stations will be located within 100 miles of adjacent sites. • The entire charging network is anticipated to be operational by summer 2022. • AEA continues to pursue funding opportunities to expand Alaska’s EV fast-charging infrastructure and community-based chargers throughout the state. Preparing Alaska for EVs AEA joined the Dimond Center in celebrating the ground breaking of its AEA-funded EV Fast-Charging station during the first EV Car Show and Ride and Drive event held on August 7, 2021. Photo by Tim Leach. 9/15/8 9 Sites Selected 15 Fast Chargers 8 Level 2 Chargers SITES AND CHARGERS 2022 Alaska’s first EV fast-charging corridor will be operational by summer 2022. ANTICIPATED COMPLETION $1.52M VW: $875,000 SEP: $90,000 Private: $555,000 TOTAL INVESTMENT Seward Chamber of Commerce SEWARD Dimond Center ANCHORAGE Three Bears Alaska CHUGIAK 4 5 6 EV Fast-Charging Network 20 212021 AEA Annual Report 2021 AEA Annual Report POWER PROJECT FUND (PPF) AEA administers PPF loan requests from qualified applicants seeking low-interest loans. PPF allows local utilities, local governments, or independent power producers to seek low-cost funding for development, expansion, or upgrade of electric power facilities, including distribution, transmission, efficiency and conservation, bulk fuel storage, and waste energy. PPF is a unique financial instrument that provides affordable loan funds for early stage energy projects, such as reconnaissance or feasibility studies. Loan terms are correlated to a project’s useful life. Interest rates on PPFs loans are formula-driven and related to the 30-year taxable municipal bond yield index, with a prevailing rate of 2.79 percent as of January 31, 2022. RENEWABLE ENERGY FUND (REF) The REF was established in 2008 to help Alaskans reduce and stabilize their cost of energy through the development of viable renewable energy projects. The program is designed to produce cost-effective renewable energy for heat and power, increasing resiliency through the diversification of generation sources. To date, REF has made 244 grants to develop or construct renewable energy projects statewide. There are now over 95 operating projects built with contributions from REF, collectively saving more than 30 million gallons of diesel each year. Annual renewable energy generation increases each year as more REF-funded projects become operational. From 2008 to 2021, $275 million was made available to REF projects. State funding has been matched with hundreds of millions of dollars from other sources to develop these renewable energy projects. In Fiscal Year 2020, AEA solicited applications for REF Round 13. In consultation with the Renewable Energy Fund Advisory Committee (REFAC), AEA recommended 11 projects for funding. In September 2021, the Legislature approved AEA’s recommendation and appropriated $4.7 million for awards to the recommended projects. AEA is currently evaluating 39 funding applications submitted for consideration during REF Round 14. AEA’s consultation with the REFAC is planned for late March with a subsequent submission to the Legislature of projects recommended for funding in FY2023 planned for early April. The REF grant program sunsets on June 30, 2023. An extension of its sunset date is being sought. Replacement of Diesel Engines used for Prime Power ($1.14 million + match funds) AEA has set aside Trust funds as a voluntary match for AEA’s Diesel Emission Reduction Act (DERA) program to fully leverage the federal funds allocated to the State by the EPA. By contributing the voluntary match, the State can receive 50 percent more EPA DERA funds to replace diesel engines or gensets in rural powerhouses. Engine/genset replacement projects were completed in summer and fall 2020 in Chignik Lake (2), Circle (2), Takotna (2), and Tuluksak (1); and in October 2021 in Arctic Village (3). Replacements are expected to occur in Chenega Bay (2) in 2022. Funds have also been obligated to replace gensets in Grayling, Platinum, and Ruby. EV Charging Infrastructure ($875,000) Alaska allocated 15 percent of the VW Trust funds ($1.25 million) for EV charging installations. AEA developed a phased approach to establish a statewide interconnected EV fast-charging network along the highways and ferry terminals, as funding allows. In 2021, AEA utilized VW Trust funds, SEP funds, and private matching funds from site hosts to develop the first phase of the fast-charging network, connecting Seward and Homer to Healy. Additional VW Trust funds for EV chargers will be disbursed in 2022. All-electric Garbage and Box Trucks ($25,000) AEA has committed $25,000 to the Municipality of Anchorage for the purchase of an energy-storage based fast charger for their new all-electric garbage truck and electric box trucks. Public Transit Bus Replacement ($234,000) Utilizing VW Trust funds, AEA funded 20 percent of the state’s first all-electric transit bus. The 40-foot bus, purchased by the City and Borough of Juneau (CBJ) for Capital Transit, was ordered in 2020 and began passenger service in April 2021. VOLKSWAGEN (VW) SETTLEMENT FUNDS On January 29, 2018, Alaska became the beneficiary of $8.125 million from the VW Environmental Mitigation Trust (Trust) established as part of a court settlement for mitigation projects to reduce nitrogen oxide (NOx) emissions. AEA is the State’s lead agency to develop and implement a Beneficiary Mitigation Plan to distribute the funds for eligible mitigation actions that result in a total lifetime reduction of NOx emissions by 10.5 tons. The projects selected thus far will reduce NOx emissions by more than 2.5 times Alaska’s mitigation goal. A summary of the disbursement of funds includes: AEA contributes in the energy space by administering several funding programs. The agency also monitors funding sources including Tribal and Indian Energy loan programs and United States Department of Energy (USDOE) funding opportunities. AEA’s strong relationship with the USDOE, awareness of funding, and technical assistance available from National Laboratories is of benefit to all Alaskans. GRANTS AND LOANS School Bus Replacement ($4.3 million) In 2019, AEA funded the purchase of 33 school buses in eight school districts: Alaska Gateway (Tok) (1), Anchorage (13), Juneau (1), Kake City (2), Kenai Peninsula Borough (7), Kodiak Island (1), Matanuska- Susitna Borough (4), and Southeast Island (Prince of Wales Island) (4). Alaska’s first all-electric school bus in Tok, Alaska. 22 232021 AEA Annual Report 2021 AEA Annual Report REVENUES, EXPENSES, & CHANGES IN NET POSITION (CONT)June 30, 2021 June 30, 2020 Operating Expenses: Grants and projects 20,370 18,714 Power cost equalization grants 25,557 29,255 Interest expense 1,159 827 Plant operating 7,797 5,376 General and administrative 20,605 5,742 Provision for loan loss (33)61 Loss on disposal of asset –– Depreciation 12,356 10,917 State of Alaska appropriations and transfers –21,288 Other project expenses –– Total operating expense 87,811 92,180 Operating loss (47,310)(56,209) Investment Income, net 151,983 51,411 State of Alaska reappropriations and transfers 1,017,213 (66) Capital contributions –– Increase (decrease) in net position 1,121,886 (1)(4,864) (2) * * *Unaudited – Derived from Audited Financial Statements (in thousands). (1) Beginning in FY21, the sweep of the PCE fund into the Constitutional Budget Reserve (CBR) was deemed ineligible and was removed from the sweep by legal ruling. Therefore AEA’s fund balance increased with the retention of the Endowment Funds. Additionally, in FY21 beginning net position/fund balance was restated to record revised amounts related to sweep activity in the due to the State of Alaska ($7,388) and revised amounts related to the general activity in the due to funds managed by Treasury ($2,239). (2) In FY19, State of Alaska’s Department of Law opined that the PCE Endowment Fund was subject to the State’s general fund unobligated fund balance sweep of certain money into the State’s Constitutional Budget Reserve. On June 30, 2019, $1.05 billion was swept, with the reversal of the sweep, pursuant to legislation, happened on July 1, 2019. The same sweep process occurred on June 30, 2020, which netted the reversal from FY19 with the FY20 sweep amount of $1.06 billion. FY20 is the first year that the reversal and new sweep occurred creating an increase to overall net position. BALANCE SHEETS June 30, 2021 June 30, 2020 Assets and deferred outflows of resources: Restricted Investments securities and cash 1,243,953 1,180,885 Loans, net 26,011 27,032 Capital assets, net 396,079 388,046 Receivables and other assets 6,457 3,919 Total Assets 1,672,500 1,599,882 Liabilities and net position: Liabilities Bonds payable 69,099 63,684 Other bond liabilities 569 1,052 Payables and other liabilities 33,153 1,096,980 Total liabilities 102,821 1,161,716 Net Position 1,569,679 438,166 Total liabilities and net position 1,672,500 1,599,882 REVENUES, EXPENSES, & CHANGES IN NET POSITION June 30, 2021 June 30, 2020 Operating revenues: Federal grants 8,575 7,845 Revenue from operating plants 22,657 21,361 State operating and capital revenues 3,922 4,719 Interest on loans 339 362 Other operating revenues 5,008 1,684 Total operating revenues 40,501 35,971 FY2021 FINANCIAL HIGHLIGHTS* 24 252021 AEA Annual Report 2021 AEA Annual Report CURTIS W. THAYER Executive Director DONA KEPPERS Chief Financial Officer KIRK WARREN, PE, PMP Director, Engineering and Energy Development BRANDY M. DIXON Communications Director LINDA SENN, PH.D. Human Resources Director TERENCE CATO Information Technology Director TIM SANDSTROM, PMP Director, Rural Programs AUDREY ALSTROM, PE Director, Alternative Energy and Energy Efficiency Programs T.W. PATCH, JD Director of Planning J. DANA PRUHS Chair, Public Member JULIE SANDE Commissioner, Alaska Department of Commerce, Community, and Economic Development ALBERT FOGLE Public Member BILL KENDIG Public Member ANNA MACKINNON Division Director, Alaska Permanent Fund BILL VIVLAMORE Public Member EXECUTIVE TEAMBOARD OF DIRECTORS 26 272021 AEA Annual Report 2021 AEA Annual Report ADDRESS 813 W NORTHERN LIGHTS BLVD ANCHORAGE, AK 99503 PHONE & FAX P : (907) 771-3000 F : (907) 771-3100 EMAIL & WEB INFO@AKENERGYAUTHORITY.ORG WWW.AKENERGYAUTHORITY.ORG AIDEA AEA Cash Movement Analysis and Insights # CK/EFT Amount AK Vendors # CK/EFT Amount AK Vendors # CK/EFT Amount AK Vendors Total 912 39.5 M$        31.0 M$         3878 193.4 M$      185.2 M$       2283 124.8 M$      113.5 M$        78% 96% 91% AEA 530 27.2 M$        22.1 M$         1335 58.7 M$        52.9 M$         1629 79.3 M$        72.3 M$          81% 90% 91% AIDEA 382 12.3 M$        8.9 M$           679 38.1 M$        35.7 M$         654 45.5 M$        41.2 M$          72% 94% 91% AK CARES*1864* 96.6 M$        96.6 M$          100% Note: Insight: # CK/EFT Amount # CK/EFT Amount # CK/EFT Amount AEA Total 530 27.2 M$        1335 58.7 M$        1629 79.3 M$         Fund: E* Bradley:51 3.9 M$          119 13.4 M$        98 8.2 M$           E1201 10% 14% 9% 23% 6% 10% Intertie:45 0.9 M$          76 5.2 M$          86 2.9 M$           E1501 8% 3% 6% 9% 5% 4% PCE:156 11.0 M$        687 18.0 M$        899 29.9 M$         E2101 29% 40% 51% 31% 55% 38% Other:278 11.4 M$        453 22.1 M$        546 38.3 M$         52% 42% 34% 38% 34% 48% Insights: # Trans Amount # Trans Amount # Trans Amount AEA Total 12270 1,662.9 M$  30037 5,506.1 M$  29392 5,459.2 M$   Fund: E* Bradley:958 133.3 M$      2464 356.5 M$      1752 245.2 M$       E1201 7.8% 8% 8.2% 6% 6.0% 4% Intertie:314 5.9 M$          745 26.7 M$        717 20.6 M$         E1501 2.6% 0.4% 2.5% 0.5% 2.4% 0.4% PCE:2704 67.4 M$        5308 158.3 M$      6245 174.5 M$       E2101 22% 4% 18% 3% 21% 3% Other:8294 1,456.3 M$  21520 4,964.6 M$  20678 5,018.8 M$   68% 88% 72% 90% 70% 92% Insights: AEA Cash Movement ‐ Proportionally, the # of transactions has increased over 3 fiscal years for Owned Assets ‐ In FY21, the $ amount for Bradley and Intertie doubled; Bradley increasedby about $5.2M and Intertie about $2.3M ‐ PCE decreased in FY21 over the prior year; lower # of transactions but higher $ amount in FY22 ‐ FY22 projected to be similar to FY21 ‐ In FY21, Bradley moved more $, while Intertie & PCE were relatively constant ‐ All amounts of $ went up in FY21 except for PCE due to timing of payments ‐ FY23 $ amount and transactions to increase with anticipated Required Project Work (RPW) for Owned Assets AIDEA & AEA Accounts Payable Cash Movement ‐ Alaskan Vendors Comparison FY21 FY20 All General Ledger Entries ‐ Actual Transactions Statistics FY22 Q1‐2 FY21 FY20 FY22 Q1‐2 FY21 FY20 Accounts Payable Transactions ‐ The COVID‐19 pandemic spanned FY20 Q4 through FY21, reducing both Authority's Cash Movement FY22 Q1‐2 ‐ FY20 to FY21, total amount of $ distributed into the Alaskan economy reflects a upward trend due to AK CARES * AIDEA and DCCED only Prepared by: Finance Shared Services 2/23/2022                                                                                         Infrastructure Investment and Jobs Act ‐ H.R. 3684 ‐ AEA Summary                                                      Section (IIJA)Program Title Technology ProgramDescription/NotesAggregate Federal Funding AppropriationEstimated Funding for AK State of AK Match Requirement Notes on AK Funding Estimate11109 Surface Transportation Block GrantElectric Vehicles - BetsyIn addition to standard eligible infrastructure projects, this section adds the installation of electric vehicle charging infrastructure and vehicle-to-grid infrastructure as eligible projects. Total Federal Appropriation =$273,150,000,00028.74% of base appropriation for Surface Transportation Block ProgramTotal appropriation by FY:FY22: $52,488,065,375FY23: $53,537,826,683FY24: $54,608,583,217FY25: $55,700,754,881FY26: $56,814,769,844 $990,000,000 DOTPF DOTPF may have higher priority eligible infrastructure projects than EVSE. The State is required to allocate a proportion of funds on certain types of projects as well as by population and to prioritize some geographic locations. Projects also need to be included in the STIP.Amount AK will receive was based on 2% more than AK's FY21 apportionment with penalties, and 1% more than previous FY. 28.74% of base appropriation allocated for Surface Transportation Block Program.11401 Grants for Charging and Fueling InfrastructureElectric Vehicles - BetsyAlternative Fuel Corridor RedesignationWithin 180 days of enactment, the Transportation Secretary is required to consult with federal agencies, state and local officials, as well as other entities to redisgnate highway corridors as Alternative Fuel Corridor Ready (corridor with EV DC fast chargers or alternative fueling stations located no more than 50 miles apart) or Corridor Pending (corridor that is targeted to achieve Corridor Ready status, but does not yet meet the criteria). "The Corridor Charging Grant Program":Within a year of enactment, a grant program will be established for state, local, and tribal governments, port authorities or metropolitan planning organizations to work with private entities to acquire, install, and operate and maintain alternative fuel infrastructure along FHWA-designated Alternative Fuel Corridors for 5 years. "Community Charging Grant Program":50% of program funds will be set-aside annually for competitive grants to expand publically-accessible alternative fuel infrastructure with priority to rural, underserved communities, and multi-unit dwellings. Community grants can also be used for preconstruction work, such as, planning, feasibility analysis, environmental review, revenue forecasting, preliminary design and engineering; and up to 5% can be used for public education and outreach. Community grants are capped at $15M per project. Total: $2,500,000,000FY22: $300,000,000FY23: $400,000,000FY24: $500,000,000FY25: $600,000,000FY26: $700,000,000Competitive application processAdministration's goal is to have 500,000 EV charging stations to meet projected 2030 EV market. Based on population, AK would need 1,097 charging stations to meet that goal.Federal share not to exceed 80% total project costs; Private Entities (subgrantees) required to provide 20% match.No State match requirement. However, AEA estimates a need for $200,000 annually for staff time for planning and preparation of grant applications; procurements; distributing the funds; and managing subgrants/projects.About half of these funds can only be used for purposes of EV charging infrastructure development along designated alternative fuel corridors (AFCs). It is important for the State to get clarification on flexibility of AFC criteria and then decide to nominate the National Highway System highways and ferry/port terminals, and other roads if allowed, as Corridor Pending to make full use of these funds.Alaska currently has one Corridor Pending highway route from Anchorage to Fairbanks and no Corridor Ready routes. 11507 Denali Commission Rural - Tim For an additional amount for "Denali Commission", $75,000,000 to remain available until expended: Provided further, that such amount is designated by the Congress as being for an emergency requirement pursuant to section 4112(a) of H. Con. Res. 71 (115th Congress), the concurrent resolution on the budget for fiscal year 2018 and to section 251(b) of the Balanced Budget and Emergency Control Act of 1985. $75,000,000 $75,000,000 $15,000,000 Updated: 02/09/2022Page 1 of 122/16/2022                                                                                         Infrastructure Investment and Jobs Act ‐ H.R. 3684 ‐ AEA Summary                                                      Section (IIJA)Program Title Technology ProgramDescription/NotesAggregate Federal Funding AppropriationEstimated Funding for AK State of AK Match Requirement Notes on AK Funding Estimate40101 Grid Resilience and ReliabilityTransmission - Kirk$5B to be allocated FY2022 to FY2026, with $2.5B as competitive Federal Grant Program and $2.5B for formula-based State/Tribal Grant Program, for grid resiliency and reliability initiatives. activities, technologies, equipment, and hardening measures to reduce the likelihood and consequences of disruptive events, including: weatherization technologies and equipment; fire-resistant technologies and fire prevention systems; monitoring and control technologies; the undergrounding of electrical equipment; utility pole management; the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors; vegetation and fuel-load management; the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events (including microgrids and battery-storage subcomponents); adaptive protection technologies; advanced modeling technologies; hardening of power lines, facilities, substations, of other systems; and the replacement of old overhead conductors and underground cables.Federal Grant Program - Competitive ProgramGrant program set aside for activities that are supplemental to existing hardening efforts planned for any given year; and reduce the risk of any power lines owned or operated by the eligible entity causing a wildfire; or increase the ability of the eligible entity to reduce the likelihood and consequences of disruptive events. Eligible entities include: electric grid operator; electricity storage operator; electricity generator; transmission owner or operator; distribution provider; fuel supplier; and any other relevant entity. Must submit a report detailing past, current, and future efforts by the eligible entity to reduce the likelihood and consequences of disruptive events. Grant amounts cannot exceed total amount the eligible entity has spent in the previous 3 years on efforts to reduce the likelihood and consequences of disruptive events. Priority will be given to projects that generate the greatest community benefit (whether rural or urban) in reducing the likelihood and consequences of disruptive events. Small utility (<4M MWh annually) set aside of a minimum of 30% of program funds. Small utility (<4M MWh annually) required to match 1⁄3 of the amount of the grant.$2,500,000,00030% minimum set-aside for small utilities (<4M MWh annually) Competitive application process Small utility match = 1/3 Small utility match = 1/3Eligible entities include: electric grid operator; electricity storage operator; electricity generator; transmission owner or operator; distribution provider; fuel supplier. AEA would be eligible as owner of Bradley Lake Hydro Project and transmission lines.At least 30% of program funds will be set aside for small utilities. Grant amounts cannot exceed total amount the eligible entity has spent in the previous 3 years on efforts to reduce the likelihood and consequences of disruptive events. 40101 Grid Resilience and ReliabilityTransmission - Kirk$5B to be allocated, with $2.5B eligible for use by States for FY2022 to FY2026, for grid resiliency and reliability initiatives. activities, technologies, equipment, and hardening measures to reduce the likelihoodand consequences of disruptive events, including: weatherization technologies and equipment; fire-resistant technologies and fire prevention systems; monitoring and control technologies; the undergrounding of electrical equipment; utility pole management; the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors; vegetation and fuel-load management; the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events (including microgrids and battery-storage subcomponents); adaptive protection technologies; advanced modeling technologies; hardening of power lines, facilities, substations, of other systems; and the replacement of old overhead conductors and underground cables.State/Tribal Grant Program - Formula Based50% formula-based set aside for states and tribes to issue grants to eligible entities. Grant funding allocations are based on total population; total area; areas with low ratio of electricity customers to power lines; probability of disruptive events during previous 10 years based on federally declared disasters or emergencies; number and severity of events; amount of funds expended over past 10 years on percapita basis to mitigate or reduce severity or consequences over previous 10 years; among other factors. State/Tribe must submit a plan each FY for disbursing the funds. Small utilitiy set aside (<4M MWh annually) cannot be less than the percentage of all customers in the State/Tribe that are served by those eligible entities. 15% match requirement for State or Tribe. Small utility (<4M MWh annually) required to match 1⁄3 of the amount of the grant.$2,500,000,000 Not estimated 15% state match requirement andSmall utility match = 1/3 State Cost Share = 15%Formula-based grant requiring 15% state match and 1/3 match from small utilities. The State/Tribe must submit a plan with the application. The State/Tribe may use up to 5% for providing technical assistance and administration expenses. Utility contributions to Bradley Lake transmission projects should count as State match funds. 40103 Energy Infrastructure Federal Financial Assistance Program - Program Upgrading Our Electric Grid and Ensuring Reliability and ResiliencyTransmission $5B for FY2022 to FY2026 to create the "Program Upgrading Our Electric Grid and Ensuring Reliability and Resiliency". The purpose of the program being to "to demonstrate innovative approaches to transmission, storage, and distribution infrastructure to harden and enhance resilience and reliability; and to demonstrate new approaches to enhance regional grid resilience, implemented through States by public and rural electric cooperative entities on a cost-shared basis." Competitive application program for Federal Assistance.Eligible entities include: State; combination of 2 or more States; Indian Tribe; unit of local government; and public utility commission.$5,000,000,000 Competitive application process20% match requirement as per 42 U.S. Code § 16352State Cost Share: 20%Updated: 02/09/2022Page 2 of 122/16/2022                                                                                         Infrastructure Investment and Jobs Act ‐ H.R. 3684 ‐ AEA Summary                                                      Section (IIJA)Program Title Technology ProgramDescription/NotesAggregate Federal Funding AppropriationEstimated Funding for AK State of AK Match Requirement Notes on AK Funding Estimate40103 Energy Improvement in Rural or Remote Areas, and Energy Infrastructure Resilience FrameworkRural $1B for FY2022 to FY2026 to supplement the "Program Upgrading Our Electric Grid and Ensuring Reliability and Resiliency" with specific guidance relating to Federal financial assistance for rural and remote areas (city, town, or unincorporated area with less than <10K inhabitants). Such eligible projects include but are not limited to: "overall cost-effectiveness of energy generation, transmission, or distribution systems; siting or upgrading transmission and distribution lines; and reducing greenhouse gas emissions from energy generation by rural or remote areas."$1,000,000,000 Competitive application process20% match requirement as per 42 U.S. Code § 16352State Cost Share = 20%40106 Transmission Facilitation ProgramTransmission - Kirk$50M for FY2022 to FY2026 for the establishment of a "Transmission Facilitation Fund" by which the DOE shall facilitate the construction of electric power transmission lines and related facilities. In addition to the 5 year $10M appropriation, the program will also establish a $2.5B revolving loan fund that allows DOE to serve as an “anchor tenant” for a new transmission line or an upgrade of an existing line. DL: eligible transmission lines required to have capacity of 1GW if new. Upgrades to existing lines or new lines in existing corridors must have 500MW capacity. These minimums are much greater than currently contemplated transmission line upgrades in Alaska. The only exceptions are an HVDC line from the North Slope to the Railbelt or a connection to Canada. This should be confirmed with the Railbelt utilities.$50,000,000 Competitive application process100% matchLoan program (100% match) ‐ subject to some potential loan forgiveness clauses.40109 State Energy ProgramAEEE - Taylor Allocates $500M, distributed in accordance with the applicable distribution formula in effect for 01/01/2021. Funds are to be made available for, but not limited to, "[...] the electrification of, State government vehicles, fleet vehicles, taxis and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty- vehicles." SEP funding for AK for FY2021 was $445,730 of a total $56M, or 0.79%. At $100M per annum, it is estimated AK will receive $795,946/yr ($3.98M total).$500,000,000 $3,979,732 None required Changes some of the regulation of the SEP for this bill and going forward: ‘‘(7) the mandatory conduct of activities to support transmissionand distribution planning, including—‘‘(A) support for local governments and Indian Tribes;‘‘(B) feasibility studies for transmission line routes andalternatives;‘‘(C) preparation of necessary project design and permits;and‘‘(D) outreach to affected stakeholders.’’40331 Hydroelectric Production incentivesHydro - Bryan $125M for FY2022 to remain available until expended for DOE to make incentive payments for electric energy generated and sold by a qualified hydroelectric facility during the incentive period. "Payments made by the Secretary under this section to the owner or operator of a qualified hydroelectric facility shall be based on the number of kilowatt hours of hydroelectric energy generated by the facility during the incentive period. For any such facility, the amount of such payment shall be 1.8 cents per kilowatt hour (adjusted as provided in paragraph (2) [for inflation]), subject to the availability of appropriations under subsection (g), except that no facility may receive more than $1,000,000 in 1 calendar year."$125,000,000 Competitive application processIncentive payments capped at $1M per year for 10 years, or $10M total for a single qualifying facility.Incentive program based on energy generation; cost share is 100% with incentive acting only as a discount towards hydro facility O&M costs.40332 Hydroelectric Efficiency improvement incentivesHydro - Bryan $75M for FY2022 to remain available until expended for DOE to make incentive payments to the owners or operators of hydroelectric facilities at existing dams to be used to make capital improvements in the facilities that are directly related to improving the efficiency of such facilities by at least 3 percent. Incentive payments under this section shall not exceed 30 percent of the costs of the capital improvement concerned and not more than 1 payment may be made with respect to improvements at a single facility. No payment in excess of $5,000,000 may be made with respect to improvements at a single facility.$75,000,000 Competitive application processIncentive payment capped at 30% of capital cost of improvement(s), not to exceed $5M. As pursuant to 42 U.S. Code § 15882State Cost Share is total capital cost of improvement(s). Incentive payment can be construed as a percentage discount to overall project cost. Incentive payment increases with capital cost, capped at 30%, not to exceed $5M. Utility contributions to Bradley should count as state match funds.40333 Maintaining and Enhancing Hydroelectricity IncentivesHydro - Bryan $553.6M for FY2022 to remain available until expended for DOE to make payments to the owners or operators of qualified hydroelectric facilities at existing dams to be used to make improvements related to dam safety, grid resiliency, and environmental improvements. Incentive payments under this section shall not exceed 30 percent of the costs of the capital improvement concerned and not more than 1 payment may be made with respect to improvements at a single facility. No payment in excess of $5,000,000 may be made with respect to improvements at a single facility.$553,600,000 Competitive application processIncentive payment capped at 30% of capital cost of improvement(s), not to exceed $5M. Incentive payment increases with capital cost, capped at 30%, not to exceed $5M. Utility contributions to Bradley should count as state match funds.Updated: 02/09/2022Page 3 of 122/16/2022                                                                                         Infrastructure Investment and Jobs Act ‐ H.R. 3684 ‐ AEA Summary                                                      Section (IIJA)Program Title Technology ProgramDescription/NotesAggregate Federal Funding AppropriationEstimated Funding for AK State of AK Match Requirement Notes on AK Funding Estimate40334 Pumped Storage Hydropower Wind and Solar Integration and System Reliability InitiativeAEEE - Audrey $10M for FY2022 to FY2026 for purposes of no later than 09/30/2023 the DOE "enter[ing] into an agreement with an eligible to provide financial assistance to the eligible entity to carry out project design, transmission studies, power market assessments, and permitting for a pumped storage hydropower project to facilitate the long duration storage of intermittent renewable electricity." Eligibility for assistance is subject to a potential project being "(i) designed to provide not less than 1,000MW of storage capacity; (ii) be able to provide energy and capacity of use in more than 1 organized electricity market; (iii) be able to store electricity generated by intermittent renewable electricity projects located on Tribal land; and (iv) have received a preliminary permit from FERC."$10,000,000 Competitive application process100% match State Cost Share = 100%40502 Energy Efficiency Revolving Loan Fund Grant ProgramEnergy Efficiency - Taylor$250M to be allocated for FY2022, available until expended. Maximum of $15M in grant funds to be allocated to each State to establish OR utilize an existing revolving loan fund for purposes of conducting commercial and residential energy audits and commercial and residential energy upgrades and retrofits. Additional funding may be available for those priority states which "are among the 15 States with the highest annual per-capita combined residential and commercial sector energy consumption, per the EIA; or the 15 States with the highest annual per-capita energy-related carbon dioxide emissions by State, per the EIA". While State matching funds are not required, the leveraging of private capital via the grant funds is highly encouraged.$250,000,000 $795,946 None required This program flows through SEP and will be subject to the same reporting requirements/platform. AHFC may be interested, still awaiting answer as of 01/28/2022. AEA/AIDEA would need to administer a Commercial Loan/Grant program.40503 Energy Auditor Training Grant ProgramEnergy Efficiency - Taylor$40M to be allocated for FY2022 to FY 2026. Grant allocation to States is subject to formula calculation based on population and shall not exceed $2M. Grants to be made available to States to "train individuals to conduct energy audits or surveys of commercial and residential buildings."$40,000,000 $2,000,000 None required $2M is maximum amount per State.This program flows through SEP and will be subject to the same reporting requirements/platform. 40552 Energy Efficiency and Conservation Block Grant ProgramEnergy Efficiency - Taylor$550M to be allocated for FY2022, until expended. Funding amount calculated per formula. Adding "programs for financing energy efficiency, renewable energy, and zero-emission transportation (and associated infrastructure), capital investments, projects, and programs, which may include loan programs and performance contracting programs, for leveraging of additional public and private sector funds, and programs that allow rebates, grants, or other incentives for the purchase and installation of energy efficiency, renewable energy, and zero-emission transportation (and associated infrastructure) measures" to EECBG program.$550,000,000 $1,925,000 None required NASEO reports 68% going to the 10 largest city or boroughs in the state direct from DOE. 28% to smaller cities, to be run through AEA. 2% to tribes (last time that was direct from DOE, and 2% for competitive projects.41007 Renewable Energy ProjectsAEEE - Audrey This section plans to administer funding for RE projects through DOE, EERE and other federal agencies. Similar to other DOE RE programs, the match requirement and state applicant eligibility is defined on a case by case basis, depending on the agency that the funds are administered through. More information should become available on these programs as the adminstration plan is revealed by DOE. The Funding Opportunity Working Group will continue to monitor the relevant offices for funding announcements. Funding appears to be focused heavily on Research and Development type projects.Geothermal: $84,000,000 for FY 2022 - 2025Wind Energy:$100,000,000 for FY 2022 - 2025Solar Energy:$80,000,000 for FY 2022 - 2025Competitive application processVaries depending on programUpdated: 02/09/2022Page 4 of 122/16/2022                                                                                         Infrastructure Investment and Jobs Act ‐ H.R. 3684 ‐ AEA Summary                                                      Section (IIJA)Program Title Technology ProgramDescription/NotesAggregate Federal Funding AppropriationEstimated Funding for AK State of AK Match Requirement Notes on AK Funding EstimateSection J Title VIIINational Electric Vehicle Infrastructure Formula Program (NEVIE)Electric Vehicles - BetsyFormula based funds under Section 104(c) of title 23 USC for the development of publically available networked EV charging infrastructure along deisgnated alternative fuel corridors. Must develop a plan for disbursing the funds and developing the charging network and submit to Department of Transportation for approval. If the plan is not submitted or approved, the funds for that FY will be provided to localities within the state or disbursed to other states if they cannot be used by the localities.$5,000,000,000 total$300,000,000 for Federal Joint Office10% set aside for assistance grants for States and localitiesRemaining funds follow base apportionment under Section 104(c) of title 23 USC.Equal installments each year.$51,000,000 $1,500,000Federal share not to exceed 80% total project costs; State or Private Entities (subgrantees) can provide 20% match. State will need to fund planning, interagency coordination, stakeholder outreach, GIS support, and reporting prior to federal funding being available. If 10% set aside for assistance is apportioned to AK and state required to provide 20% match, then state would need $1,500,000.These funds can only be used for purposes of EV charging infrastructure development. Amount AK will receive was estimated from AK's FY21 apportionment after penalties applied to 90% of the funds. The AK funding estimate does not include the 10% set aside for assistance grants to states and localities because it is not clear if that will be competitive or apportioned.These funds can only be used for purposes of EV charging infrastructure development along designated alternative fuel corridors (AFCs) until they are fully built out. It is important for the State to get clarification on flexibility of AFC criteria and then decide to nominate the National Highway System highways and ferry/port terminals and other roads if allowed as Corridor Pending to make full use of these funds.Alaska currently has one Corridor Pending highway route from Anchorage to Fairbanks and no Corridor Ready routes. Updated: 02/09/2022Page 5 of 122/16/2022 Alaska Energy Authority Project List ‐ Current and Future, IIJA Applicability Technology Project Name Status Funding YearSize Size Units Location Description Cost Total Cost Unfunded Amount IIJA Funding Eligible? Funding Source/AEA InvolvementHydro Hoonah Water Supply Creek Hydro Final DesignIn Progress ‐ Design FY22 300                 kW Southeast The Water Supply Creek Hydroelectric Project proposes Final Design grant funding in the amount of $461,474 to be used with IPEC matching funds of $75,000 for the final design and permits applications for Water Supply Creek Hydroelectric facility.$5,984,099‐ $461,474 REF‐ $47,625 ANTHC & Utility‐ $75,000 Utility capital‐  Remainder anticipated to be financed through various Federal, State, or other financing mechanisms (e.g. NRUCFC)$5,984,099 $5,400,000 No Renewable Energy FundHydro Cordova Hydro Storage Assessment ProjectIn Progress ‐ Feasibility FY22 N/A kW Cordova AEA along with the utility Cordova Electric Cooperative (CEC) will prepare a feasibility and conceptual design document that evaluates several alternative water storage sites for hydroelectric power generation. During periods of low stream flows the hydroelectric energy generation is not enough for the community and diesel generators must be turned on. If a feasible water storage site can be identified then water can be stored such that hydroelectric generation can maintain during low flow periods and diesel generators not started.$444,642 Feasibility‐ $294,642 REF‐ $150,000 Utility Capital$444,642 $0 No Renewable Energy FundHydro Five Mile Creek Hydro In Progress‐ ConstructionFY20 300 kW Chitina Chitina Electric Inc. project for a design / build approach for a 300kW hydroelectric facility on Fivemile Creek, just north of Chitina, AK.  The project is anticipated to satisy the current and projected community load, and displace the current diesel generation, in addition to seasonally‐variable excess energy for use in electric boilers to offset some heating oil use during the winter months.$7,663,455 Construction‐ $3,979,455 REF‐ $2,880,000 USDA‐ $804,000 Other$7,663,455 $0 No Renewable Energy FundHydro Dixon Diversion Development FY22 kW Railbelt, Homer Feasibility of diverting water from Dixon Glacier outflow to AEA owned Bradley Lake Hydroelectric Project or to a new power plant located on the Lower Martin River.  Energy estimates range from 125,000 MWhs to 225,000 MWhs for Railbelt utilities.$150 M to $600 M $150 M to $600 M $0 No Other/DevelopmentHydro Nuyakuk River Hydro In Progress ‐ Feasibility FY22 10,000           kW Bristol Bay Feasibility analysis comprised of environmental impact and geotechnical studies for a the assessing a proposed 10‐12MW run‐of‐river hydroelectric project consisting of an intake structure, power conduit, powerhouse forebay, powerhouse, and tailrace channel approx. 4 miles downstream of Tikchik Lake above a natural falls on the Nuyakuk river.  Additionally a 60 mile transmission line would be required to serve the constituent communities.$153,000,000‐ 1,000,000 REF (feasiblity)‐ Other funding sources to‐be‐determined, however, NEC is anticipating Denali Commission, USDA/RUS, BIA Indian Energy, DOE Indian Energy, NEC capital investment.$153,000,000 $152,000,000 No Renewable Energy FundHydro Thayer Lake Hydropower Project In Progress‐ design/permittingFY19 850 kW Angoon Design and construct access road, dam, penstock, transmission, and power house for run of river hydro in Tongass National Forest on Thayer Creek. Owned by Kootznoowoo Inc. and serves community of Angoon.$26,000,000  Construction‐ $7,000,000 REF‐ $19,000,000 Other$26,000,000 $19,000,000 No Renewable Energy FundHydro Elfin Cove Crooked Creek Hydro In Progress‐ design/licensing160                 kW Elfin Cove Final design and licensing.  Construct trail, dam, penstock, transmission, and power house for run of river hydro on Crooked Creek.  Serves community of Elfin Cove.$510,00 Final design and permitting.  $5,300,000 Construction $5,810,000 $5,810,000 No Renewable Energy FundHydro Grant Lake Hydroelectric Project In Progress‐ design/licensing5,000              kW Seward Final design and licensing.  Construct access, dam, penstock, transmission, and power house for hydro at Grant Lake.  Serves Railbelt Region of Alaska.$53,000,000  Construction $53,000,000 $53,000,000 No Renewable Energy FundHydro Susitna‐Watana Hydroelectric ProjectIn Progress‐ design/licensing618,000         kW Railbelt Licensing.  Construct access, dam, penstock, transmission, and power house for hydro on the Susitna River.  Serves Railbelt Region of Alaska.$5,600,000,000 (2014$)  Construction $5,600,000,000 $5,600,000,000 No OtherHydro Sweetheart Lake Hydroelectric ProjectIn Progress‐ design/licensing19,800           kW Juneau Final design and licensing.  Construct access, dam, penstock, transmission, and power house for hydro at Sweetheart Lake.  Serves Juneau Region of Alaska.$188,000,000 (2014$)  Construction $188,000,000 $188,000,000 No Other/NoneHydro Indian river Hydroelectric Project In Progress‐ design/permitting180                 kW Tenakee Springs Construction.  Project has been partially constructedbut ran out of funds to complete.  Construct trail, dam, penstock, transmission, and power house for run of river hydro on Indian Creek.  Serves community of Tenakee Springs.$5,000,000  Construction $5,000,000 $5,000,000 No Renewable Energy FundHydro Knutson Creek Hydroelectric ProjectIn Progress‐ design/permitting200                 kW Pedro Bay Construction.  Construct access road, dam, penstock, transmission, and power house for run of river hydro on Knutson Creek.  Serves community of Pedro Bay.$6,900,000  Construction $6,900,000 $6,900,000 No Renewable Energy FundHydro Old Harbor Hydroelectric Project In Progress‐ design/licensing525                 kW Old Harbor Final design and licensing.  Construct trail, dam, penstock, transmission, and power house for run of river hydro.  Serves community of Old Harbor.$12,000,000  design/Construction $12,000,000 $12,000,000 No Renewable Energy FundWind Goodnews Bay Wind Energy Feasibility and Conceptual DesignIn Progress ‐ Feasibility FY22 300                 kW Goodnews Bay Alaska Village Electric Cooperative, Inc. (AVEC) will conduct a wind power feasibility and conceptual design project for the community of Goodnews Bay. AVEC, with the cooperation of the community, proposes to assess the feasibility of wind resources suited to provide power to the community and to prepare a conceptual design of a wind facility. $3,000,000‐$128,250 REF‐Remainder being researched through other sources, including federal and state assistance programs (e.g. USDA RUS) and 10% cash match via the Utility$3,000,000 $2,871,750 No Renewable Energy FundAEA Updated 02/09/2022Page 6 of  12 Alaska Energy Authority Project List ‐ Current and Future, IIJA Applicability Technology Project Name Status Funding YearSize Size Units Location Description Cost Total Cost Unfunded Amount IIJA Funding Eligible? Funding Source/AEA InvolvementWind City of Unalaska Wind Power FeasibilityIn Progress ‐ Feasibility FY22 3,000              kW Unalaska The project is comprised of a detailed feasibility and conceptual design effort to determine the potential benefit and optimal capacity of wind power to complement the planned 30 MW geothermal project to meet the electrical and thermal (via conversion of fuel oil heat to air‐source heat pumps) power needs of the community. COU anticipates that seafood processers and other commercial entities that presently selfpower will connect to the COU grid. Based on conclusions of the draft wind resource assessment report, wind turbines would be installed in lower Pyramid Valley near the community water plant.$15,866,000‐ $495,000 City of Unalaska‐ $139,000 REF‐ $1,132,000 (Final Design) & $14,100,000 (Construction) anticipated to be funded through debt service, bond sales, and/or federal grant funding sources.$15,866,000 $15,232,000 No Renewable Energy FundWind Improved airfoil for wind turbines in KongiganakIn Progress ‐ ConstructionFY22 190                 kW Kongiganak Puvurnaq Power Company (PPC) to purchase and install two sets of the advanced SERI Thin Airfoils. The PPC staff will retrofit two of their five 95 kW windmatic turbines with these more efficient and reliable blades. REF funds to be utilized to purchase and ship two blade sets from California to Kongiganak. The PPC crew has access to an uptower service crane, and will replace the older blade sets with the advanced airfoils.$117,000‐ $108,000 REF‐ $9,000 Utility Capital$117,000 $0 No Renewable Energy FundWind Naknek Service Area Wind and Solar Power Feasibility and Conceptual DesignIn Progress ‐ Feasibility FY22 2,000              kW Naknek Naknek Electric Association (NEA) proposes to assess, via a feasibility study and conceptual design process, the technical and economic practicality of constructing a wind farm and expanding its solar PV capacity to create a medium‐to‐high penetration wind‐solar‐diesel hybrid power system to meet its approximate mean 2 MW baseload power demand.$12,262,000‐ $103,500 REF‐ Remainder of funding anticipated to be financed through various Federal, State, or other financing mechanisms (e.g. NRUCFC)$12,262,000 $12,158,500 No Renewable Energy FundWind Kotlik Wind Energy Feasibility and Conceptual DesignIn Progress ‐ Feasibility FY22 300                 kW Kotlik Alaska Village Electric Cooperative, Inc. (AVEC) will conduct a wind power feasibility and conceptual design project for the community of Kotlik. AVEC, with the cooperation of the community, proposes to assess the feasibility of wind resources suited to provide power to the community and to prepare a conceptual design of a wind facility.$3,100,000‐ $237,500 REF‐ Remainder being researched through other sources, including federal and state assistance programs (e.g. USDA RUS) and 10% cash match via the Utility$3,100,000 $2,862,500 No Renewable Energy FundWind Igiugig Wind Energy Construction Proposed ‐ Construction 50                   kW Igiugig Installation of two 25 kW turbines. The turbines will be used in conjunction withthe community in‐river hydrokinetic turbine.$1,118,000‐ $118,000 CDR REF‐ $1,000,000 Construction$1,118,000 $1,000,000 No Renewable Energy FundBiomass Mentasta Woodchip Heating SystemIn Progress ‐ ConstructionFY20 0.205 MMBTU/hr Mentasta Woodchip heating system for the tribal hall and clinic. $245,450 ‐ $200,000 AEA Funders Group‐ $45,450 Match                                                ‐ $32,000 for Design from REF$277,450 $0 Yes, USFS Wood Energy Innovation Grant ProgramDenali Commission, US Forest Service, AEA Funders groupBiomass Craig High School Biomass Boiler ProjectIn Progress ‐ ConstructionFY 20 1.25 MMBTU/hr Craig Woodchip heating system for 53,000 sq ft Craig city school. $845,233‐$411,796 Denali Commission ‐ $78,437 AEA ‐ $355,000 Match$1,645,233 $800,000 Yes, USFS Wood Energy Innovation Grant ProgramDenali Commission, US Forest Service, AEA Funders groupBiomass Copper Center Biomass Heat EnergyIn Progress ‐ ConstructionFY20 0.8 MMBTU/hr Copper Center Phase 1 of a Containerized wood chip boiler system to heat the multiuse building.$390,700‐ $315,000 AEA Funders Group‐ $75,700 Match$390,700 $0 Yes, USFS Wood Energy Innovation Grant ProgramDenali Commission, US Forest Service, AEA Funders groupBiomass Igiugig School Cordwood Heating SystemIn Progress ‐ Design FY20 0.3 MMBTU/hr Igiugig Design for a corwood system to heat the Igiugig school. $60,158‐ $50,000 AEA/USFS‐ $10,158 Match$360,158 $300,000 Yes, USFS Wood Energy Innovation Grant ProgramAEA Biomass program with support from USFSBiomass Northway School Biomass Boiler In Progress ‐ ConstructionFY22 0.65 MMBTU/hr Northway Wood chip district heating system to service the Northway School and Garage. $793,500‐ $650,000 REF‐ $110,000 AEA & AK Gateway SD.‐ $33,500 AK Gateway SD                                ‐ $120,000 Design AEA/USFS $913,500 $0 Yes, USFS Wood Energy Innovation Grant ProgramRenewable Energy FundBiomass Haines School and Pool Proposed ‐ Construction 2.6 MMBTU/hr Haines The system is designed to provide heat to the Haines School and Pool, Administration Building, Library, Vocational Education building, Garage, and future Greenhouse. $1,800,000 for construction; $100,000 for design and feasibility$1,900,000 $1,800,000 Yes, USFS Wood Energy Innovation Grant ProgramRenewable Energy FundBiomass Kake Community Wood Energy Proposed ‐ Construction 2.06 MMBTU/hr Kake Heating to the Public Safety Building, Boys and Girls Club, Health Clinic, Senior Center, Kake School, future greenhouse, a future building at the Bingo Hall location, and the Community Center. ‐$200,000 for feasibility  & design $3,700,000 $3,500,000 Yes, USFS Wood Energy Innovation Grant ProgramRenewable Energy FundBiomass Ketchikan High School Proposed ‐ Construction 1.3 MMBTU/hr Ketchikan Pellet heating system for the new clinic, tribal office, community building, and water treatment plant. ‐ $68,000 USFS/AEA ‐ Design $1,318,000 $1,250,000 Yes, USFS Wood Energy Innovation Grant ProgramAEA Biomass program with support from USFSEnergy Storage Kotzebue Community‐Scale Energy Storage SystemIn Progress ‐ Design FY22 4,800              kW Kotzebue Kotzebue Electric Association (KEA) project to conduct a final design and permitting of a battery energy storage system (BESS), inclusive of a system power flow and techno‐economic study to determine optimally‐sized to reduce diesel importation, maintain system reliability and capture more renewable energy.  The proposed BESS, once constructed, will allow for 100+% renewable power generation from renewable resources (diesel‐free power generation) and maximum use of KEA’s wind and solar assets.$3,675,000‐ $325,000 REF‐ Remainder of funding anticipated to be sought via federal, state, and local grant with project funding balances to be financed through traditional lenders, including cooperative financial entities.$3,675,000 $3,350,000 No Renewable Energy FundHeat Recovery Shishmaref Heat Recovery In Progress ‐ ConstructionFY13 N/A Shishmaref Design and Construction of a heat recovery system that will serve the Water Treatment Plant, Clinic, and the City Office.$1,171,913‐$310,841 REF‐$887,303 USDA‐HECG$1,171,913 $0 No Renewable Energy FundAEA Updated 02/09/2022Page 7 of  12 Alaska Energy Authority Project List ‐ Current and Future, IIJA Applicability Technology Project Name Status Funding YearSize Size Units Location Description Cost Total Cost Unfunded Amount IIJA Funding Eligible? Funding Source/AEA InvolvementHeat Recovery Togiak Waste Heat Recovery In Progress ‐ ConstructionFY13 N/A Togiak Design and Construction of a heat recovery project that will serve the Water Treatment Plant, Clinic, Police Station, City Office, and the Old School Community Activity Building.$486,180*‐$443,030 REF‐$43,150 ANTHC Match‐$*Loan amount currently unknown$486,180 $0 No Renewable Energy FundHeat Recovery Chevak Water and Vacuum Plant Heat RecoveryIn Progress ‐ ConstructionFY15 N/A Chevak Project is for Design and Construction of heat recovery system that will serve the Vacuum Plant and Water Plant.$575,565‐$558,800 REF‐$16,765 ANTHC Match$575,565 $0 No Renewable Energy FundHeat Recovery Shungnak Heat Recovery ExpansionIn Progress ‐ ConstructionFY22 N/A Shungnak Project will  design and construct an expanded heat recovery system that will provide heat for the health clinic, cookhouse community center, Village Public Safety Officer (VPSO) housing, and community store.  $1,303,607 REF $1,303,607 $0 No Renewable Energy FundEV Charging InfrastructureStatewide EV Fast‐charging NetworkIn Progress‐ Planning FY22‐FY26200‐500 chargers 50‐150 kWkW Statewide Public‐private parntership for the installation, operations and maintenance of EV fast‐charging stations statewide$50,000,000 $62,500,000 $12,500,000 80% IIJA funded; 20% otherOtherEV Charging InfrastructureStatewide EV Fast‐charging Network ‐ Phase 1In Progress‐ ConstructionFY21 (12)50 kW(3)60‐120 kW (8)11 kW chargerskW Railbelt ‐ Seward, Homer, Soldotna, Cooper Landing, Anchorage, Chugiak, Trapper Creek, Cantwell, HealyPublic‐private parntership for the installation, operations and maintenance of nine EV fast‐charging stations from Homer and Seward north to Healy$1,525,000‐$875,000 VW Environmental MitigationTrust Funds‐$90,000 State Energy Program Funds‐$550,000 matching private funds$1,525,000 $0 OtherEnergy Efficiency Village Energy Efficiency Program: Wells Fargo SponsoredIn Progress ‐ ConstructionFY20 N/A Rural AK Replace inefficient HPS street lights in Rural Alaska with energy efficient LED lighting. $1,485,649‐$1,088,596 Wells Fargo/AEA‐$397,053 Community Match$1,485,649 $0 Yes, SEP AEA Adminstered ProgramEnergy Efficiency Village Energy Efficiency Program: Denali Commission SponsoredIn Progress ‐ Construction FY21 N/A Rural AK Replace inefficient HPS street lights in Rural Alaska with energy efficient LED lighting. $533,321‐$418,483 Denali Commission/AEA‐$114,838 Community Match$533,321 $0 Yes, SEP AEA Adminstered ProgramTransmission Bradley Lake to Soldotna SubstationProposed ‐ Feasibility FY22 230 kV Kenai Peninsula The project will construct a new 115kV transmission line from the Bradley Project, to Bradley Junction and continuing on to the Sterling Substation.   This is being considered as part of the ongoing "Required Project Work" discussion on the best way to unconstrain the least cost power on the railbelt (Bradley Lake) in cooperation with the Bradley Participants$66,000,000 (Bradley  Junction to Sterling) ‐ $25,0$91,000,000 $81,000,000 Possibly sections 40101 or 40103Initially bonding (or supplemented) ‐ repaid with excess payments from Bradley Participants Transmission Upgrade from 115kV to 230 kV the line between Sterling Substation and Quartz Creek SubstationProposed ‐ Feasibility FY22 230 kV Kenai Peninsula This Project will upgrade the AEA owned transmission line between the Sterling Substation and the Quartz Creek Substation, minimizing lossses and uncongesting power flow off of the Kenai Peninsula to be used throughout the railbelt$53,000,000 $53,000,000 $53,000,000 Possibly sections 40101 or 40103Initially bonding (or supplemented) ‐ repaid with excess payments from Bradley Participants Battery Grid Stablization In Progress ‐ Feasibility FY22 Varies (see description‐Kenai/Anchorage/Fairbanks (3 locations)This Project will construct 3 grid stabalization batteries at strategic locations within the railbelt to regulate intermittent generation sources, to provide voltage support, minimize spinning reserves as well as additional periphal benefits to the interconnected system$145,000,000 $145,000,000 $12,158,500 Possibly sections 40101 or 40103Bradley Participating Utilities (and potential matching funds if identified)Transmission Second Southern Intertie Study Pending approval as Required Project WorkFY22 TBD Kenai Peninsula to Anchorage areaEngineering and Economic Study of the best locations for a second transmission connection between the Kenai Peninsula and the Anchorage area$500,000 $500,000 $500,000 Possibly sections 40101 or 40103Bradley excess paymentsRenewable Energy Fund (REF)Renewable Energy Fund (REF) Grant Program ‐ Round 14In Progress ‐ all round 14 applications received.  Four‐stage evaluation process underway.  Final grant recommendations expected to be submitted to the Legislature for approval and funding appropriations in early April 2022FY23 Various‐Statewide ‐Applications by Energy Region:1 ‐ Aleutians1 ‐ Bering Straits5 ‐ Bristol Bay1 ‐ Kodiak7 ‐ Lower Yukon‐Kuskokwim3 ‐ Northwest Arctic13 ‐ Railbelt5 ‐ Southeast3 ‐ Yukon‐Koyukuk/Upper TananaAEA has received 39 applications for a total request of $19.2 million in Renewable Energy Fund (REF) grant funds.  In the governor's proposed FY23 budget, $15 million is to be allocated for funding these round 14 applications.  All applications are subject to a four‐stage review process.  Those applications which pass all evaluation stages are then forwarded to the State Legislature for recommendation of funding.  All recommendations submitted to the Legislature are done in concert with advice solicitied  from the Renewable Energy Fund Advisory Committee (REFAC).  All funding determinations and approvals for all recommended REF projects are at the sole discretion of the Legislature.$19.2 million in REF funds requested.$15 million proposed for funding of REF Round 14 recommended projects in Governor's proposed State budget.$19,200,000 Subject to the final Round 14 project recommendations and enactment of the $15 million REF State budget allocation, should total REF grant funds requested exceed $15 million, any funding request in excess of this $15 million would be unfunded, and require additional funding to supportNo Renewable Energy FundBulk Fuel Upgrades Bulk Fuel Contingency Planning Planning TBD Various Statewide Identification of threatened bulk fuel facilities and mitigation measures $350,000 $350,000 0 No State and Denali Commission FundingBulk Fuel Upgrades Various Bulk Fuel Upgrade ProjectsIn Progress Various Statewide Bulk Fuel Upgrade Projects in the following communities: Beaver, Rampart, Tatitlek, Kasaan, Chalkytsik, Nunapitchuk, Shaktoolik, Gambell, Scammon Bay, Port Heiden, Shungnak, Ekwok, Akiak, Tuluksak, Kwigillingok, Venetie, Venetie, Shageluk.$23,059,629 $26,225,629 $3,674,000 No State and Denali Commission FundingAEA Updated 02/09/2022Page 8 of  12 Alaska Energy Authority Project List ‐ Current and Future, IIJA Applicability Technology Project Name Status Funding YearSize Size Units Location Description Cost Total Cost Unfunded Amount IIJA Funding Eligible? Funding Source/AEA InvolvementRural Power System UpgradesStatewide RPSU Projects In Progress Various Statewide Rural Power System Upgrade Projects in the following communitites: Nikolai, Akhiok, Venetie, Manokotak, Port Heiden Phase 1 Distribution, Napaskiak, Nelson Lagoon and Rampart. $23,023,247 $28,165,187 $5,141,940 No State and Denali Commission FundingRural Power System UpgradesStatewide RPSU Projects ‐ DistributionIn Development Various Statewide RPSU Upgrade Projects to include upgrades and improvements to rural distribution projects throughout Alaska. $75,000,000 $75,000,000 $0 Yes, Possibly Sections 40101 and 40103 for Distribution Phase of Project CostsNone CurrentlyRural Power System UpgradesStatewide Maintenance and Improvement ProjectsPlanning and In Progress Various Statewide Rural Power System Upgrade Projects. These projects are generally smaller and do not include the construction of an entirely new powerhouse. RPSU M&I projects are currently planned or underway in Kwigillingok, Igiugig, Hoonah, Unalakleet, Levelock, Kwethluk, Pilot Point, Chitina, Chignik Bay, Angoon, Tenakee Springs, Ouzinkie, Karluk, Galena, Diomede,Chefornak, Beaver, Akiachak, Koyukuk, Atka, Arctic Village and Stevens Village. $1,996,091 $2,536,091 $540,000 No State and Denali Commission FundingRural Power System UpgradesDiesel Emissions Reduction Act (DERA) Genset Replacement ProjectsIn Progress Various Statewide DERA projects replace  diesel gensets in statewide rural communities including Anvik, Arctic Village, Chenega Bay, Multiple Tanana Chiefs Conference Communities, Grayling, Platinum, Ruby, Akiachak and Chignik Lake. $5,347,275 $5,547,275 $200,000 No State, Denali Commission, Volkswagon Settlement, EPAAEA Updated 02/09/2022Page 9 of  12                                                                                         Infrastructure Investment and Jobs Act ‐ H.R. 3684 ‐ AEA Receipt Authority FY23                                                      Section (IIJA)Program Title Receipt Authority: HeadingDescription/Notes from IIJA Bill TextReceipt Authority: Brief Summary and Statement of NeedReceipt Authority: Prior Funding History / Additional InformationReceipt Authority: Project Description/JustificationReceipt Authority RequestEstimated Funding for AKState of AK Match RequirementNotes on AK Funding Estimate11401 Grants for Charging and Fueling InfrastructureElectric VehiclesAlternative Fuel Corridor RedesignationWithin 180 days of enactment, the Transportation Secretary is required to consult with federal agencies, state and local officials, as well as other entities to redisgnate highway corridors as Alternative Fuel Corridor Ready (corridor with EV DC fast chargers or alternative fueling stations located no more than 50 miles apart) or Corridor Pending (corridor that is targeted to achieve Corridor Ready status, but does not yet meet the criteria). "The Corridor Charging Grant Program":Within a year of enactment, a grant program will be established for state, local, and tribal governments, port authorities or metropolitan planning organizations to work with private entities to acquire, install, and operate and maintain alternative fuel infrastructure along FHWA-designated Alternative Fuel Corridors for 5 years. "Community Charging Grant Program":50% of program funds will be set-aside annually for competitive grants to expand publically-accessible alternative fuel infrastructure with priority to rural, underserved communities, and multi-unit dwellings. Community grants can also be used for preconstruction work, such as, planning, feasibility analysis, environmental review, revenue forecasting, preliminary design and engineering; and up to 5% can be used for public education and outreach. Community grants are capped at $15M per project. The Infrastructure Investment and Jobs Act (IIJA), Section 11401 “Grants for Charging and Fueling Infrastructure”, provides funding for competitive applications that will help develop charging infrastructure along designated alternate fuel corridors as well as in rural and underserved communities. A 20% match is required, although it is anticipated that the match would be provided by the sub-recipients/private entities rather than state matching funds. This is a competitive program.AEA is an eligible applicant of the competitive funding process through the "Corridor Charging Grant Program" and "Community Charging Grant Program". If successful, AEA would sub-award grant funds to recipients through a competitive application process.AEA has been working on the planning and installation of Electric Vehicle (EV) charging stations across the state using funds from the State Energy Program, Volkswagen Settlement Funds, grantee and state matching funds. AEA, the State Department of Transportation, and the EV working group collaborated to designate a Corridor Pending highway route from Anchorage to Fairbanks. The Corridor Charging Grant Program funding is anticipated to be used for public-private installation partnerships, and operations and maintenance of EV fast-charging stations statewide. The Community Charging Grant Program funds are intended to go to rural and underserved communities. Fifty percent of these program funds will be set aside annual as competitive grants for the program. Fed Receipt Authority Request:FY23: Fed Rcpts: $2,000,000FY24: Fed Rcpts: $1,000,000FY25: Fed Rcpts: $1,000,000FY26: Fed Rcpts: $1,000,000Competitive application processAdministration's goal is to have 500,000 EV charging stations to meet projected 2030 EV market. Based on population, AK would need 1,097 charging stations to meet that goal.Federal share not to exceed 80% total project costs; Private Entities (subgrantees) required to provide 20% match.No State match requirement. However, AEA estimates a need for $200,000 annually for staff time for planning and preparation of grant applications; procurements; distributing the funds; and managing subgrants/projects.About half of these funds can only be used for purposes of EV charging infrastructure development along designated alternative fuel corridors (AFCs). It is important for the State to get clarification on flexibility of AFC criteria and then decide to nominate the National Highway System highways and ferry/port terminals, and other roads if allowed, as Corridor Pending to make full use of these funds.Alaska currently has one Corridor Pending highway route from Anchorage to Fairbanks and no Corridor Ready routes. 11507 Denali CommissionRural Energy Upgrade ProjectsFor an additional amount for "Denali Commission", $75,000,000 to remain available until expended: Provided further, that such amount is designated by the Congress as being for an emergency requirement pursuant to section 4112(a) of H. Con. Res. 71 (115th Congress), the concurrent resolution on the budget for fiscal year 2018 and to section 251(b) of the Balanced Budget and Emergency Control Act of 1985. The Infrastructure Investment and Jobs Act (IIJA), Section 11507 "Denali Commission", provides additional funding to the Denali Commission for rural energy infrastructure programs that include Rural Power System Upgrades (RPSU) and Bulk Fuel Upgrades (BFU) that are administered by AEA. The Denali Commission also funds rural training programs, utility clerk training, as well as Circuit Rider (preventative maintenance) and Technical Assistance through AEA. The match requirement for construction projects is 20% for distressed communities and 50% for non-distressed communities.AEA is a long time federal funding partner with the Denali Commission and expects to receive the IIJA funds via direct award from the Denali Commission. Specific project identification will be in accordance with 3 AAC 108.110.These projects advance sustainable and efficient energy infrastructure projects that decrease energy costs in rural Alaska. AEA has an existing, long-term partnership with the Denali Commission for statewide RPSU, BFU, and training programs. State funds are used to leverage federal funds to expand the number of communities served by this program.State matching funds are required for Denali Commission funded construction projects. The match requirement for construction projects is 20% for distressed communities and 50% for non-distressed communities. The distressed community list is maintained by the Denali Commission. The RPSU and BFU programs concentrate on power production and delivery, diesel powerhouses, heat recovery, and electrical distribution. Efficiency, reliability, safety, and sustainability are primary drivers throughout the conceptual design, final design, and construction process.Fed Receipt Authority Request:FY23: Fed Rcpts: $15,000,000G/F Match: $7,500,000FY24: Fed Rcpts: $7,500,000G/F Match: $3,750,000FY25: Fed Rcpts: $7,500,000G/F Match: $3,750,000$75,000,000 $15,000,000 40101 Grid Resilience and ReliabilityStatewide Grid Resilience and Reliability - Competitive $5B to be allocated FY2022 to FY2026, with $2.5B as competitive Federal Grant Program and $2.5B for formula-based State/Tribal Grant Program, for grid resiliency and reliability initiatives. activities, technologies, equipment, and hardening measures to reduce the likelihood and consequences of disruptive events, including: weatherization technologies and equipment; fire-resistant technologies and fire prevention systems; monitoring and control technologies; the undergrounding of electrical equipment; utility pole management; the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors; vegetation and fuel-load management; the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events (including microgrids and battery-storage subcomponents); adaptive protection technologies; advanced modeling technologies; hardening of power lines, facilities, substations, of other systems; and the replacement of old overhead conductors and underground cables.Federal Grant Program - Competitive ProgramGrant program set aside for activities that are supplemental to existing hardening efforts planned for any given year; and reduce the risk of any power lines owned or operated by the eligible entity causing a wildfire; or increase the ability of the eligible entity to reduce the likelihood and consequences of disruptive events. Eligible entities include: electric grid operator; electricity storage operator; electricity generator; transmission owner or operator; distribution provider; fuel supplier; and any other relevant entity. Must submit a report detailing past, current, and future efforts by the eligible entity to reduce the likelihood and consequences of disruptive events. Grant amounts cannot exceed total amount the eligible entity has spent in the previous 3 years on efforts to reduce the likelihood and consequences of disruptive events. Priority will be given to projects that generate the greatest community benefit (whether rural or urban) in reducing the likelihood and consequences of disruptive events. Small utility (<4M MWh annually) set aside of a minimum of 30% of program funds. Small utility (<4M MWh annually) required to match 1⁄3 of the amount of the grant.The Infrastructure Investment and Jobs Act (IIJA), Section 40101 “Preventing Outages and Enhancing the Resilience of the Electric Grid”, provides funding for competitive applications that will be used for grid resiliency and reliability initiatives. AEA qualifies as an applicant under this program as “a transmission owner or operator” and as an “electricity generator”. Funds are intended for small utilities to increase grid resiliency, reliability initiatives, activities, technologies, and equipment to reduce the likelihood and consequences of disruptive events. There is a 33% small utility match requirement.This program is a competitive application process. Maximum funding request levels are dependent on the total amount that the eligible entity has spent in the previous three years on efforts to reduce the likelihood and consequences of disruptive events. This funding request was developed based on the following incurred costs: - $3.5 million for resiliency and hardening activities on the SSQ line and - $1.8 million on Railbelt transmission assets.There are a number of eligible project areas that will likely be available for application under this program. Examples of disruptive events that threaten Railbelt transmission lines include; lightning, wildfire, seismic, avalanche and permafrost subsidence. Mitigation actions may include:- Inspect and assess the status of lightning protection equipment (lightning arrestors, static lines) on the Railbelt transmission lines.- Work with the Alaska Fire Science Consortium, electric utilities and other stakeholders to update models of lightning incidence and risk to improve transmission line reliability planning and response.- Develop a Railbelt transmission grid wildfire response plan.- Develop new standards for transmission line foundation and guy wire design to reduce failures due to seismic occurences. - Incorporating precipitation and snowfall projections into new avalanche risk forecasts.- Work with the University of Alaska climate scientists at the International Arctic Research Center to forecast impacts of erosion, melting permafrost, flooding, high wind events and other phenomenon on transmission line reliability.- Install thermosiphons adjacent to transmission line foundations in warm permafrost to prevent melting and subsidence. - Construct two grid stabilization batteries at strategic locations within the railbelt to regulate intermittent generation sources. This will provide voltage support, minimize spinning reserves as well as additional peripheral benefits to the interconnected system.Additional information on this program is expected to become available Fed Receipt Authority Request:FY23Fed Rcpts: $5,300,000**Maximum funding amount is limited by amount spent in the previous three years to reduce the likelihood and consequences of disruptive events. Competitive application process Small utility match = 1/3 Small utility match = 1/3Eligible entities include: electric grid operator; electricity storage operator; electricity generator; transmission owner or operator; distribution provider; fuel supplier. AEA would be eligible as owner of Bradley Lake Hydro Project and transmission lines.At least 30% of program funds will be set aside for small utilities. Grant amounts cannot exceed total amount the eligible entity has spent in the previous 3 years on efforts to reduce the likelihood and consequences of disruptive events. Updated: 02/16/2022Page 10 of 122/16/2022                                                                                         Infrastructure Investment and Jobs Act ‐ H.R. 3684 ‐ AEA Receipt Authority FY23                                                      Section (IIJA)Program Title Receipt Authority: HeadingDescription/Notes from IIJA Bill TextReceipt Authority: Brief Summary and Statement of NeedReceipt Authority: Prior Funding History / Additional InformationReceipt Authority: Project Description/JustificationReceipt Authority RequestEstimated Funding for AKState of AK Match RequirementNotes on AK Funding Estimate40101 Grid Resilience and ReliabilityStatewide Grid Resilience and Reliability - Formula $5B to be allocated, with $2.5B eligible for use by States for FY2022 to FY2026, for grid resiliency and reliability initiatives. activities, technologies, equipment, and hardening measures to reduce the likelihood and consequences of disruptive events, including: weatherization technologies and equipment; fire-resistant technologies and fire prevention systems; monitoring and control technologies; the undergrounding of electrical equipment; utility pole management; the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors; vegetation and fuel-load management; the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events (including microgrids and battery-storage subcomponents); adaptive protection technologies; advanced modeling technologies; hardening of power lines, facilities, substations, of other systems; and the replacement of old overhead conductors and underground cables.State/Tribal Grant Program - Formula Based50% formula-based set aside for states and tribes to issue grants to eligible entities. Grant funding allocations are based on total population; total area; areas with low ratio of electricity customers to power lines; probability of disruptive events during previous 10 years based on federally declared disasters or emergencies; number and severity of events; amount of funds expended over past 10 years on percapita basis to mitigate or reduce severity or consequences over previous 10 years; among other factors. State/Tribe must submit a plan each FY for disbursing the funds. Small utilitiy set aside (<4M MWh annually) cannot be less than the percentage of all customers in the State/Tribe that are served by those eligible entities. 15% match requirement for State or Tribe. Small utility (<4M MWh annually) required to match 1⁄3 of the amount of the grant.The Infrastructure Investment and Jobs Act (IIJA), Section 40101 “Preventing Outages and Enhancing the Resilience of the Electric Grid”, provides a formula based State and Tribal Grant Program that shall be utilized for grid resiliency and reliability initiatives. Funds are intended for small utilities to increase grid resiliency, reliability initiatives, activities, technologies, and equipment to reduce the likelihood and consequences of disruptive events. Formula-based funding requires a 15% state match and a 33% small utility match.Federal funding is formula based and AEA is an eligible recipient.Funds shall be used to operate a grid resiliency and reliability program per the guidelines released by Federal Department of Energy at a future date (Q4 2022). Interested Alaskan utilities would participate in an application and ranking process for sub-award. The program will be administered by AEA. Of the amounts made available under the program, the State may use not more than 5% for providing technical assistance and administrative expenses associated with the programFed Receipt Authority Request:FY23: Fed Rcpts: $1,000,000G/F Match: $150,000FY24: Fed Rcpts: $1,000,000G/F Match: $150,000FY25: Fed Rcpts: $1,000,000G/F Match: $150,000FY26: Fed Rcpts: $1,000,000G/F Match: $150,000FY27:Fed Rcpts: $1,000,000G/F Match: $150,000 Exact amount of formula funding that will be allocated to Alaska is unknown at this time. 15% state match requirement andSmall utility match = 1/3 State Cost Share = 15%Formula-based grant requiring 15% state match and 1/3 match from small utilities. The State/Tribe must submit a plan with the application. The State/Tribe may use up to 5% for providing technical assistance and administration expenses. Utility contributions to Bradley Lake transmission projects should count as State match funds. 40103 Energy Infrastructure Federal Financial Assistance Program - Program Upgrading Our Electric Grid and Ensuring Reliability and ResiliencyStatewide Energy Infrastructure Improvement - Competitive$5B for FY2022 to FY2026 to create the "Program Upgrading Our Electric Grid and Ensuring Reliability and Resiliency". The purpose of the program being to "to demonstrate innovative approaches to transmission, storage, and distribution infrastructure to harden and enhance resilience and reliability; and to demonstrate new approaches to enhance regional grid resilience, implemented through States by public and rural electric cooperative entities on a cost-shared basis." Competitive application program for Federal Assistance.Eligible entities include: State; combination of 2 or more States; Indian Tribe; unit of local government; and public utility commission.The Infrastructure Investment and Jobs Act (IIJA), Section 40103, "Electric Grid Reliability and Resilience Research, Development and Demonstration”, provides funding for competitive applications that will be used to demonstrate innovative approaches to transmission, storage and distribution infrastructure to harden and enhance resilience and reliability; and to demonstrate new approaches to enhance regional grid resilience, implemented through States by public and rural electric cooperative entities on a cost-shared basis. A 20% cost share is required.AEA qualifies as an eligible applicant under this program. Further guidance is expected in Q4 2022. This request will be refined as more guidance is available.AEA may be an eligible applicant to submit competitive applications for several projects under this opportunity. Potential projects that may be eligible for application under this program include: 1. Construction of a new 115 kV transmission line from Bradley Lake, to Bradley Junction and continuing on to the Sterling Substation. ($91,000,000)2. Upgrade the AEA owned transmission line between the Sterling Substation and the Quartz Creek Substation. This will minimize losses and decongest power flow off of the Kenai Peninsula. ($53,000,000)3. Engineering and Economic Study of the best locations for a second transmission connection between the Kenai Peninsula and the Anchorage area. ($500,000)4. Construction of three grid stabilization batteries at strategic locations within the railbelt to regulate intermittent generation sources, to provide voltage support, minimize spinning reserves as well as additional peripheral benefits to the interconnected system. ($145,000,000)20% cost match is required.Fed Receipt Authority Request:FY23: Fed Rcpts: $241,250,000G/F Match: $48,250,000Total: $289,500,000Competitive application process20% match requirement as per 42 U.S. Code § 16352State Cost Share: 20%40103 Energy Improvement in Rural or Remote Areas, and Energy Infrastructure Resilience FrameworkRural Energy Infrastructure Improvement$1B for FY2022 to FY2026 to supplement the "Program Upgrading Our Electric Grid and Ensuring Reliability and Resiliency" with specific guidance relating to Federal financial assistance for rural and remote areas (city, town, or unincorporated area with less than <10K inhabitants). Such eligible projects include but are not limited to: "overall cost-effectiveness of energy generation, transmission, or distribution systems; siting or upgrading transmission and distribution lines; and reducing greenhouse gas emissions from energy generation by rural or remote areas."The Infrastructure Investment and Jobs Act (IIJA), Section 40103 "Electric Grid Reliability and Resilience Research, Development and Demonstration", provides funding for competitive applications that will be used for upgrading the grid and ensuring resilience and reliability. These funds are directed toward rural and remote areas of the state. A 20% cost share is required.AEA qualifies as an eligible applicant for competitive funding. Further guidance is expected in Q4 2022Funds will be used to operate a distribution upgrade program in rural Alaskan communities. Per the program requirements, projects will focus on overall cost-effectiveness of energy generation, transmission, or distribution systems; siting or upgrading transmission and distribution lines; and reducing greenhouse gas emissions from energy generation. AEA is working on creating a list of need for distribution projects and will administer a ranking and/or application process to distribute the funds statewide. A 20% cost share is required.Fed Receipt Authority Request:FY23: Fed Rcpts: $20,000,000G/F Match: $4,000,000FY24: Fed Rcpts: $20,000,000G/F Match: $4,000,000FY25: Fed Rcpts: $20,000,000G/F Match: $4,000,000FY26: Fed Rcpts: $20,000,000G/F Match: $4,000,000FY27:Fed Rcpts: $20,000,000G/F Match: $4,000,000Competitive application process20% match requirement as per 42 U.S. Code § 16352State Cost Share = 20%Updated: 02/16/2022Page 11 of 122/16/2022                                                                                         Infrastructure Investment and Jobs Act ‐ H.R. 3684 ‐ AEA Receipt Authority FY23                                                      Section (IIJA)Program Title Receipt Authority: HeadingDescription/Notes from IIJA Bill TextReceipt Authority: Brief Summary and Statement of NeedReceipt Authority: Prior Funding History / Additional InformationReceipt Authority: Project Description/JustificationReceipt Authority RequestEstimated Funding for AKState of AK Match RequirementNotes on AK Funding Estimate40109 State Energy ProgramState Energy ProgramAllocates $500M, distributed in accordance with the applicable distribution formula in effect for 01/01/2021. Funds are to be made available for, but not limited to, "[...] the electrification of, State government vehicles, fleet vehicles, taxis and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty- vehicles." SEP funding for AK for FY2021 was $445,730 of a total $56M, or 0.79%. At $100M per annum, it is estimated AK will receive $795,946/yr ($3.98M total).The Infrastructure Investment and Jobs Act (IIJA), Section 40109 "State Energy Program", provides funding for the State Energy Program (SEP). AEA is the designated office to receive $4 million in SEP funds to develop and implement clean energy programs and projects. No state match is required for the IIJA funding.Federal funding allocation to States is subject to formula calculation for a one-time lump sum distribution. AEA is the State Energy Office and the designated recipient for Alaska.The Alaska Energy Authority receives roughly $450,000 annually for the State Energy Program, which typically requires a 20 percent match. The opportunity through IIJA is a one-time sum of funds that will be expended within five years and does not require a state match. The funds for the State Energy Program can be used to finance energy efficiency, renewable energy, building audits, energy education and outreach, training, loans, grants and resiliency/redundancy planning for efficient power movement.Fed Receipt Authority Request:FY23: Fed Rcpts: $4,000,000$3,979,732 None required Changes some of the regulation of the SEP for this bill and going forward: ‘‘(7) the mandatory conduct of activities to support transmissionand distribution planning, including—‘‘(A) support for local governments and Indian Tribes;‘‘(B) feasibility studies for transmission line routes andalternatives;‘‘(C) preparation of necessary project design and permits;and‘‘(D) outreach to affected stakeholders.’’40502 Energy Efficiency Revolving Loan Fund Grant ProgramState Energy Program - Revolving Loan Fund$250M to be allocated for FY2022, available until expended. Maximum of $15M in grant funds to be allocated to each State to establish OR utilize an existing revolving loan fund for purposes of conducting commercial and residential energy audits and commercial and residential energy upgrades and retrofits. Additional funding may be available for those priority states which "are among the 15 States with the highest annual per-capita combined residential and commercial sector energy consumption, per the EIA; or the 15 States with the highest annual per-capita energy-related carbon dioxide emissions by State, per the EIA". While State matching funds are not required, the leveraging of private capital via the grant funds is highly encouraged.The Infrastructure Investment and Jobs Act (IIJA), Section 40502, "Energy Efficiency Revolving Loan Fund Grant Program", includes funding to be allocated to each State to establish or utilize an existing revolving loan fund for the purposes of conducting commercial and residential energy audits and commercial and residential energy upgrades and retrofits. AEA is the State Energy Office and is the recipient of SEP funding. AEA would administer the commercial loan/grant programs. State matching funds are not required, however, the leveraging of private capital via the grant funds is highly encouraged.Federal funding allocation to States is subject to formula calculation. This is a new loan/grant program and authorization is likely needed. Further guidance is expected 4th quarter 2022.The "Energy Efficiency Revolving Loan Fund Grant Program", can be used to establish or utilize existing revolving loan funds to conduct commercial energy audits as well as commercial energy upgrades and retrofits. AEA has the technical and grant staff capacity to manage this program.Fed Receipt Authority Request:FY23: Fed Rcpts: $800,000$795,946 None required This program flows through SEP and will be subject to the same reporting requirements/platform. AHFC may be interested, still awaiting answer as of 01/28/2022. AEA/AIDEA would need to administer a Commercial Loan/Grant program.40503 Energy Auditor Training Grant ProgramState Energy Program - Training Programs$40M to be allocated for FY2022 to FY 2026. Grant allocation to States is subject to formula calculation based on population and shall not exceed $2M. Grants to be made available to States to "train individuals to conduct energy audits or surveys of commercial and residential buildings."The Infrastructure Investment and Jobs Act (IIJA), Section 40503 "Energy Auditor Training Grant Program", includes funding through the State Energy Program (SEP). Grants are for the purpose of training individuals to conduct energy audits or surveys of commercial and residential buildings. AEA is the designated State Energy Office and recipient of SEP funding. No match is required for this funding.Federal funding allocation to States is subject to formula calculation based on population and shall not exceed $2 million.The Energy Auditor Training Grant Program supports training to conduct energy audits and surveys of commercial buildings. AEA anticipates coordinating with Alaska Housing Finance Corporation (AHFC) in the administration of the training program funds. Further guidance on this program is anticipated in the 2nd quarter 2022.Fed Receipt Authority Request:FY23: Fed Rcpts: $2,000,000$2,000,000 None required $2M is maximum amount per State.This program flows through SEP and will be subject to the same reporting requirements/platform. AHFC may be interested, answer expected week of 11/2240552 Energy Efficiency and Conservation Block Grant ProgramEnergy Efficiency and Conservation Block Grant Program$550M to be allocated for FY2022, until expended. Funding amount calculated per formula. Adding "programs for financing energy efficiency, renewable energy, and zero-emission transportation (and associated infrastructure), capital investments, projects, and programs, which may include loan programs and performance contracting programs, for leveraging of additional public and private sector funds, and programs that allow rebates, grants, or other incentives for the purchase and installation of energy efficiency, renewable energy, and zero-emission transportation (and associated infrastructure) measures" to EECBG program.The Infrastructure Investment and Jobs Act (IIJA), Section 40552, "Energy Efficiency and Conservation Block Grant Program", provides funding for Energy Efficiency Conservation Block Grants (EECBG). The funding will specifically be used for eligible small communities to implement programs for financing energy efficiency, renewable energy, zero-emission transportation (and associated infrastructure), capital investments, projects and programs that allow rebates, grants, or other incentives for the purchase and installation of the above measures. There is no match requirement.Federal funding allocation to States is subject to formula calculation. AEA would sub-award grant funds to recipients through a competitive application process.AEA last received Energy Efficiency Conservation Block Grants (EECBG) under the Recovery Act in 2009. The opportunity through IIJA is initiated with a one-time funding and follow on competitive opportunities in future fiscal years. These formula funds do not require a state match. AEA will use the existing Village Energy Efficiency Program (VEEP) requirements for solicitation and evaluation, AEA will solicit communities for applications and award funding based on the existing criteria for qualifying projects. Based on the success and interest in the program, AEA may apply for the competitive funds in future fiscal years.Fed Receipt Authority Request:FY23: Fed Rcpts: $2,000,000$1,925,000 None required NASEO reports 68% going to the 10 largest city or boroughs in the state direct from DOE. 28% to smaller cities, to be run through AEA. 2% to tribes (last time that was direct from DOE, and 2% for competitive projects.Updated: 02/16/2022Page 12 of 122/16/2022 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG Attached is AEA’s Infrastructure Investment and Jobs Act Analysis Updated Spreadsheet. The spreadsheet divided into three tabs. • “AEA Bill Analysis” o Contains the programs and sections that are within AEA’s domain. • “AEA Projects by Technology” o This is a comprehensive AEA project list and includes current projects in various stages of development and funding. • “Receipt Authority FY23” o Each of the section rows correspond with a Federal Receipt Authority Request that was submitted by AEA to OMB. o There is more project and program specific detail in this tab than in the first tab. o The information in the columns marked “Receipt Authority” is verbatim what was provided to OMB. o Not all of the sections identified in our original analysis (first tab) were submitted for receipt requests this year. This is a living document and AEA will continue to update as additional information becomes available. 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM TO: Curtis W. Thayer, Executive Director FROM: Kirk H. Warren, P.E.,PMP, Director, Engineering & Energy Development DATE: February 17, 2022 RE: Railbelt Owned Asset Update Below is a update on the Alaska Energy Authority (AEA) owned assets Alaska Intertie • The Intertie Operating Committee has asked AEA to work with the Systems Studies Subcommittee and AEA’s consultant GE to tune the Static VAR Compensator Power Oscillation Dampers. This is one of the recommendations that came out of the oscillation study. • The Intertie Operating Committee has asked AEA to work with GVEA to transfer Cantwell substation distribution equipment to GVEA. • Snow Load Monitoring System batteries have been caught in the supply chain disruptions. We are working with the vendor to find alternatives. • The FY23 budget preparation is starting • MEA and GVEA’s vegetation management plans for the Intertie are due April 1st • AEA is working with MEA to respond to a section line easement road building request Bradley Lake • Bradley Lake area running at normal snow pack for winter. • Superintendent retires end of February. A new Superintendent has been hired to start mid-March. • Lake level at its lowest point for this time of year in the last decade. 1070.0 1090.0 1110.0 1130.0 1150.0 1170.0 1190.0 1/1 1/16 1/31 2/15 3/1 3/16 3/31 4/15 4/30 5/15 5/30 6/14 6/29 7/14 7/29 8/13 8/28 9/12 9/27 10/12 10/27 11/11 11/26 12/11 12/26 Bradley Lake Level 1/27/2022 2016 2017 2018 AVG. 2019 2020 "2021" 2022 1112.3 1112.1 1112.0 1112.0 1111.8 1111.5 1111.3 1/21 1/22 1/23 1/24 1/25 1/26 1/27 -20 0 20 40 60 80 1/21 1/22 1/23 1/24 1/25 1/26 1/27 Weekly Power BRD QTZ 60 33 44 40 52 42 37201619152923 22 1/21 1/22 1/23 1/24 1/25 1/26 1/27 MAX AVG QTZ 3,389 98% LOSSES 55 2%HEA 0 0% 1/21-1/27 Bradley MWH's 3,479 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG TO: Alaska Energy Authority Board FROM: Conner Erickson, Planning Manager THROUGH: Curtis W. Thayer, Executive Director DATE: February 15, 2022 SUBJECT: Renewable Energy Fund (REF) – Round 13 & 14 Update Round 14 (FY2023) Established in 2008 under AS 42.45.045, the Alaska Energy Authority (AEA) is charged with the administration of the Renewable Energy Fund (REF) competitive grant program, now in its 14th round. Although AEA administers the program, all awards and appropriations are subject to the full discretion of the Alaska State Legislature, with AEA providing recommendations of projects and REF funds requested for the Legislature’s consideration. With the State of Alaska Department of Revenue’s determination on the excess earnings of AEA’s Power Cost Equalization (PCE) program, from which REF funds are appropriated, occurring in late summer 2021 AEA correspondingly delayed its solicitation for Round 14 of the REF. AEA proposed and Governor Dunleavy’s office approved $15 million would be made available for the REF in FY2023, the largest appropriation since FY2014, as indicated in Table 1 below. Owing to this proposed FY2023 REF appropriation, AEA issued its release of the REF Request for Applications (RFA) on November 16th, 2021, with a deadline for applications on January 18, 2022. As of the January 18th, 2022 deadline for applications, AEA received a total of 39 REF applications for a total request of $19.2 million in REF funds. On January 28th, 2022, and in accordance with Alaska Statute AS 42.45.045(d)(3), AEA provided an update regarding the status of the current Round 14 Renewable Energy Fund (REF) solicitation to the Alaska State Legislature. Table 1 Historical REF Appropriations from Legislature Fiscal Year Legislative Appropriation/Award FY2008 100,000,000$ FY2009 25,013,014$ FY2010 25,000,000$ FY2011 26,620,231$ FY2012 25,870,659$ FY2013 25,000,000$ FY2014 22,843,900$ FY2015 11,512,659$ FY2019 11,000,000$ FY2022 4,750,973$ FY2023 (Proposed)15,000,000$ Total (Excl. FY2023)277,611,436$ Total 292,611,436$ Alaska Energy Authority Page 2 of 3 As per 3 AAC 107.635 – “Acceptance of applications for consideration; eligibility review”, AEA in its initial, stage 1 review of those received applications rejected 10 applications on the basis of ineligible applicants, late applications, and being substantially incomplete, as summarized in Table 2 below. Upon AEA’s issuance of the rejection letters to those 10 applicants in late January, AEA received an appeal from a sole applicant. AEA’s decision to cease further consideration of the application, upon further review and agreement from AEA’s Executive Director as allowed per 3 AAC 107.650(b), was upheld owing to the application being duplicative and substantially incomplete. Additionally, as part of AEA’s stage 1 review, many of the other applications did not sign or provide official certification of their application as required per section 1.21-1.22 of the RFA. AEA recognizes that this issue could be easily remedied via simple request to the applicants, as allowed per 3 AAC 107.670, and all contacted applicants have since provided such signatures and certification of their applications. The remaining 29 applications account for a total request of $17.5 million in REF funds, as indicated in Table 3 below. The next phase (stage 2) in the evaluation of applications, as required per 3 AAC 107.645 is an evaluation of technical and economic feasibility, which is conducted by a combination of AEA staff, State of Alaska Department of Natural Resources (DNR) and contracted economists. A Reimbursable Services Agreement (RSA) with the DNR has been established for its review of the applications’ as they would impact state assets. A Notice of Intent to Award has been issued for the contracted economists who will begin evaluating the applications as to their economic feasibility and conducting those necessary cost/benefit analyses. AEA subject matter experts have been assigned to their respective applications for evaluations of technical feasibility. The Table 2 Rd 14 Rejections - Per 3 AAC 107.635 - Eligibility Review Reason for Denial No. of Applications REF Funding Requested ($) Ineligible Applicant 4 532,500$ Late Application 4 735,000$ Substantially Incomplete 2 342,525$ Total 10 1,610,025$ Table 3 Rd 14 Summary of Applications by Energy Region - Post Stage 1 Review Energy Region No. of Applications REF Funding Requested ($) Aleutians 1 321,000$ Bering Straits 1 2,000,000$ Bristol Bay 2 2,495,500$ Kodiak 1 172,600$ Lower Yukon-Kuskokwim 7 1,988,392$ Northwest Arctic 3 3,192,435$ Railbelt 11 5,194,707$ Southeast 1 62,368$ Yukon-Koyukuk/Upper Tanana 2 2,135,000$ Total 29 17,562,002$ Alaska Energy Authority Page 3 of 3 REF evaluation process is progressing on schedule. AEA will provide the REFAC a brief update concerning those rejections owing to stage 2 evaluations, expected in mid-March. Consultation with REFAC on AEA’s Recommendations of Applications to the Legislature AEA anticipates meeting with the REFAC members in late March concerning its Round 14 recommended applications and their related funding requests, in fulfillment of AS 42.45.045(e). Upon the solicitation of the REFAC’s counsel, AEA will forward on its recommendations to the Legislature for their consideration of award and appropriation within the FY2023 budget, in early April. It should be noted that any and all REF appropriations are at the full discretion of the Legislature. A copy of the REF evaluation process has been provided as an attachment for reference. Round 13 (FY2022) AEA is pleased to report that all 11 projects recommended to the Legislature by AEA, in consultation with the Renewable Energy Fund Advisory Committee (REFAC) as per AS 42.45.045(e) during the January 15th, 2021 meeting were fully funded with a total Legislative appropriation of $4.75 million via the passage of HB3003 in September 2021. AEA project/grant managers have been in active communication with those grantees of the round 13 REF grant awards. The last of the project charters has been submitted for approval this week and the majority of grant agreements are now in place with the remaining planned to be executed this month. AEA is grateful to the Legislature for their recognition of the REF’s efficacy in promoting, and providing needed financial support for, the development of viable renewable energy projects throughout all regions of the State. This appropriation will support the development of renewable energy projects across multiple project phases, and communities from the Aleutians to the Northwest Arctic will benefit. A summary of both those awarded Round 13 projects and the HB3003 appropriations, as enrolled, are attached for reference. Attachments  Round 13 Awarded Applications Summary  HB3003 REF Appropriation, as enrolled.  REF Evaluation Process Overview Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) FY2022 Request: Reference No: $4,750,973 AMD 57255 AP/AL: Appropriation with Allocations Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1-40) Impact House District: Statewide (HD 1-40)Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: The Renewable Energy Grant Recommendation Program (REGRP) was created in 2008 with the intent to appropriate $50 million annually for five years. In 2012, the program was extended to June 30, 2023. The Legislature has appropriated $282 million to date for this program since its creation. Applications received in 2020 are reconsidered for this round. This project funds the top $4.7 million of recommended renewable energy projects that have been vetted through AEA's application review process including AEA's solicitation of advice from the Renewable Energy Fund Advisory Committee (REFAC). The REFAC unanimously voted in agreement with the recommendations and ranking as presented by AEA. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $4,750,973 $4,750,973 Total:$4,750,973 $0 $0 $0 $0 $0 $4,750,973 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Secx Ch1 SLA2019 P2 L23 SB142 $11,000,000 Sec1 Ch38 SLA2015 P2 L17 SB26 $11,512,659 Sec1 Ch18 SLA2014 P4 L8 SB119 $22,843,900 Sec1 Ch16 SLA2013 P4 L20 SB18 $25,000,000 Sec1 Ch17 SLA2012 P6 L15 SB160 $25,870,659 Sec4 Ch5 SLA2011 P127 L23 SB46 $26,620,231 Sec7 Ch43 SLA2010 P19 L20 SB230 $25,000,000 Sec1 Ch15 SLA2009 P2 L23 SB75 $25,013,014 Sec13 Ch29 SLA2008 P87 L20 SB221 $100,000,000 State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 57255 5/27/21 12:03:25 PM Page 1 Kongiganak Improved Airfoil for Wind Turbines FY2022 Request: Reference No: $108,000 AMD 63449 AP/AL: Allocation Project Type: Energy Category: Development Location: Kongiganak House District: Lower Kuskokwim (HD 38) Impact House District: Lower Kuskokwim (HD 38)Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: The Puvurnaq Power Company will retrofit the turbine blade sets on two of the existing Windmatic 17S wind turbines. The improved blades restrain peak power for greater drive train life; have reduced sensitivity to turbulence; and significantly improve annual energy production, by and estimated 30%. The retrofit of existing turbines with the advanced Solar Energy Research Institute (SERI) thin airfoils also serves as a test case for the potential upgrade of other aging wind turbines in rural Alaska. An in-kind match of $9,000 will be provided. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $108,000 $108,000 Total:$108,000 $0 $0 $0 $0 $0 $108,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63449 5/27/21 12:03:26 PM Page 2 Dillingham Nuyakuk River Hydroelectric Project FY2022 Request: Reference No: $1,000,000 AMD 63452 AP/AL: Allocation Project Type: Energy Category: Development Location: Dillingham House District: Bristol Bay/Aleutians/Upper Kuskokwim (HD 37) Impact House District: Bristol Bay/Aleutians/Upper Kuskokwim (HD 37) Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: The proposed Project is to assess the feasibility of a new 10-12 MW run of river hydropower project approximately 4 miles downstream of the Tikchik Lake outlet above a natural falls on the Nuyakuk River. Hydro power produced by the project would be available to those customers of Nushagak Electric & Telephone Cooperation, and potentially other proximate communities in the region. Such hydro power development would reduce the Cooperative's reliance on diesel fuel for power production. A cash match of $175,000 will be provided. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $1,000,000 $1,000,000 Total:$1,000,000 $0 $0 $0 $0 $0 $1,000,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63452 5/27/21 12:03:26 PM Page 3 Hoonah Water Supply Creek Hydro Final Design FY2022 Request: Reference No: $461,474 AMD 63447 AP/AL: Allocation Project Type: Energy Category: Development Location: Hoonah House District: Sitka/Petersburg (HD 35) Impact House District: Sitka/Petersburg (HD 35)Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: The Inside Passage Electric Cooperative (IPEC) will prepare the final design and permitting for Water Supply Creek Hydro (WSCH). IPEC will provide in-kind match of $75,000. This final design and permitting will, upon completion, bring the project into the "shovel-ready" phase. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $461,474 $461,474 Total:$461,474 $0 $0 $0 $0 $0 $461,474 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63447 5/27/21 12:03:26 PM Page 4 Shungnak Heat Recovery Expansion FY2022 Request: Reference No: $1,303,607 AMD 63450 AP/AL: Allocation Project Type: Energy Category: Development Location: Shungnak House District: Arctic (HD 40) Impact House District: Arctic (HD 40)Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: The proposed project will expand the heat recovery system in Shungnak, AK to provide heat for the health clinic, cookhouse community center, VPSO housing, and community store, displacing an estimated 14,036 gallons of fuel oil being used annually in these community facilities, for an estimated cost savings of $115,797 per year at the current fuel price of $8.25 per gallon. The heat recovery system currently serves the collective heating needs of the water treatment plant and city office. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $1,303,607 $1,303,607 Total:$1,303,607 $0 $0 $0 $0 $0 $1,303,607 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63450 5/27/21 12:03:26 PM Page 5 Goodnews Bay Wind Energy Feasibility and Conceptual Design Project FY2022 Request: Reference No: $128,250 AMD 63451 AP/AL: Allocation Project Type: Energy Category: Development Location: Goodnews Bay House District: Lower Kuskokwim (HD 38) Impact House District: Lower Kuskokwim (HD 38)Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: The Alaska Village Electric Cooperative, Inc. (AVEC), with the cooperation of the community, will assess the feasibility of wind resources suited to provide power to the community and prepare a conceptual design of a wind facility. AVEC will provide a match of $6,750. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $128,250 $128,250 Total:$128,250 $0 $0 $0 $0 $0 $128,250 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63451 5/27/21 12:03:26 PM Page 6 Walter Northway School Wood Chip Heating System FY2022 Request: Reference No: $650,000 AMD 63448 AP/AL: Allocation Project Type: Energy Category: Development Location: Northway House District: Eielson/Denali/Upper Yukon/Border (HD 6) Impact House District: Eielson/Denali/Upper Yukon/Border (HD 6) Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: The Northway School Woodchip Heating Project will construct a biomass wood chip district heating system to service the Northway School and Garage. This project will replace about 23,166 gallons of imported heating fuel, which is approximately 90% of the current usage. An in-kind match of $62,375 will be provided. This project will create local wood harvesting and small business opportunities, providing a use for wood that is harvested to protect communities from wildfire risk while decreasing the community's dependence on diesel fuel. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $650,000 $650,000 Total:$650,000 $0 $0 $0 $0 $0 $650,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63448 5/27/21 12:03:26 PM Page 7 Kotlik Wind Energy Feasibility and Conceptual Design Project FY2022 Request: Reference No: $237,500 AMD 63453 AP/AL: Allocation Project Type: Energy Category: Development Location: Kotlik House District: Bering Straits/Yukon Delta (HD 39) Impact House District: Bering Straits/Yukon Delta (HD 39) Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: The Alaska Village Electric Cooperative, Inc. (AVEC), with the cooperation of the community, will assess the feasibility of wind resources suited to provide power to the community and to prepare a conceptual design of a wind facility. AVEC will provide a match of $12,500. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $237,500 $237,500 Total:$237,500 $0 $0 $0 $0 $0 $237,500 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63453 5/27/21 12:03:26 PM Page 8 Naknek Service Area Wind and Solar Power Feasibility and Conceptual Design FY2022 Request: Reference No: $103,500 AMD 63454 AP/AL: Allocation Project Type: Energy Category: Development Location: Naknek House District: Bristol Bay/Aleutians/Upper Kuskokwim (HD 37) Impact House District: Bristol Bay/Aleutians/Upper Kuskokwim (HD 37) Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: Naknek Electric Association (NEA) will assess, via a feasibility study and conceptual design process, the technical and economic feasibility of constructing a wind farm and expanding the Community's solar PV capacity. A cash match of $11,500 will be provided. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $103,500 $103,500 Total:$103,500 $0 $0 $0 $0 $0 $103,500 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63454 5/27/21 12:03:26 PM Page 9 Kotzebue Community-Scale Energy Storage System FY2022 Request: Reference No: $325,000 AMD 63455 AP/AL: Allocation Project Type: Energy Category: Development Location: Kotzebue House District: Arctic (HD 40) Impact House District: Arctic (HD 40)Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: The Kotzebue Electric Association (KEA) will install a community-scale Battery Energy Storage System (BESS) to manage variable generation from wind and solar power. The BESS will allow for 100+% renewable power generation from renewable resources and maximize use of KEA's wind and solar assets, and aligns with the KEA Board of Director’s goal to achieve 50% renewable energy generation by 2025. A total match, both cash and in-kind of $100,000 will be provided. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $325,000 $325,000 Total:$325,000 $0 $0 $0 $0 $0 $325,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63455 5/27/21 12:03:26 PM Page 10 City of Unalaska Wind Power Feasibility and Conceptual Design FY2022 Request: Reference No: $139,000 AMD 63456 AP/AL: Allocation Project Type: Energy Category: Development Location: Unalaska House District: Bristol Bay/Aleutians/Upper Kuskokwim (HD 37) Impact House District: Bristol Bay/Aleutians/Upper Kuskokwim (HD 37) Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: City of Unalaska (COU) will initiate a feasibility assessment to determine the best method to integrate wind power with the planned geothermal power project (to be operational in 2024). The COU anticipates installing 2 to 5 MW of wind generation capacity, as to be determined by the results of this study. Design and construction funding will also be explored during this feasibility phase. The COU will provide a cash match of $13,900 for this project. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $139,000 $139,000 Total:$139,000 $0 $0 $0 $0 $0 $139,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 63456 5/27/21 12:03:26 PM Page 11 Cordova Hydro Storage Assessment Project FY2022 Request: Reference No: $294,642 AMD 60785 AP/AL: Allocation Project Type: Energy Category: Development Location: Cordova House District: Kodiak/Cordova/Seldovia (HD 32) Impact House District: Kodiak/Cordova/Seldovia (HD 32) Contact: Curtis Thayer Estimated Project Dates: 07/01/2021 - 06/30/2026 Contact Phone: (907)771-3000 Appropriation: Alaska Energy Authority - Round XIII Renewable Energy Project Grants (AS 42.45.045) Brief Summary and Statement of Need: Cordova Electric Cooperative (CEC) will conduct an analysis of the hydroelectric resources in the area, per AEA's recommendation. CEC intends to collect LIDAR imagery and develop feasibility assessments on at least four potential storage locations. The results of this analysis will inform the strategic direction of CEC in the short and long term. The priority assessment is for storage capacity upstream of the existing Humpback Creek Hydroelectric project. Funding:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total 1210 Renew Ener $294,642 $294,642 Total:$294,642 $0 $0 $0 $0 $0 $294,642 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2022 Capital Leg Amd Reference No: AMD 60785 5/27/21 12:03:26 PM Page 12 REDUCING THE COST OF ENERGY IN ALASKA Renewable Energy Fund Evaluation Process Overview Alaska Energy Authority — Renewable Energy Fund – REDUCING THE COST OF ENERGY IN ALASKA SAFE, RELIABLE, & AFFORDABLE ENERGY SOLUTIONS January 18, 2022 REDUCING THE COST OF ENERGY IN ALASKA REF Statutory Guidance (AS 42.45.045) Eligible projects must: Be a new project not in operation in 2008, and •be a hydroelectric facility; •direct use* of renewable energy resources; •a facility that generates electricity from fuel cells that use hydrogen from renewable energy sources or natural gas** (subject to additional conditions); or •be a facility that generates electricity using renewable energy. •natural gas** applications must also benefit a community that •Has a population of 10,000 or less, and •Does not have economically viable renewable energy resources it can develop. *3 AAC 107.615 a project is a ”direct use” of RE resources if it uses renewable energy resources to generate or to make a fuel used to generate energy Evaluation process Develop a methodology for determining the order of projects that may receive assistance, •most weight being given to projects that serve any area 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, •significant weight given to a statewide balance of grant funds and to the amount of matching funds an applicant is able to make available •The REF evaluation process is comprised of four stages. 2 REDUCING THE COST OF ENERGY IN ALASKA REF Evaluation Process -Stage 1 –Eligibility and Completeness The REF evaluation process is comprised of four stages. Stage one is an evaluation of applicant and project eligibility and application completeness, as per 3 AAC 107.635. This portion of the evaluation process is conducted by AEA staff. •Applicant eligibility is defined as per AS 42.45.045 (l). •“electric utility holding a certificate of public convenience and necessity under AS 42.05, independent power producer, local government, or other governmental utility, including a tribal council and housing authority;” •Project eligibility is defined as per AS 42.45.045 (f)-(h) and is provided on the preceding page. •Project completeness •An application is complete in that the information provided is sufficiently responsive to the RFA to allow AEA to consider the application in the next stage (stage two) of the evaluation. •The application must provide a detail description of the phase(s) of project proposed. Applications which fail to meet the requirements of stage one will be rejected by the authority, and will notify each applicant whose application is rejected of the authority’s decision. 3 STAGE 1 CRITERIA PASS/FAIL Applicant eligibility, including formal authorization and ownership, site control, and operation PASS/FAIL Project Eligibility PASS/FAIL Complete application,including Phase description(s) PASS/FAIL REDUCING THE COST OF ENERGY IN ALASKA REF Evaluation Process -Stage 2 –Technical and Economic Feasibility Stage two is an evaluation concerning technical and economic feasibility. This portion of the evaluation process is conducted by AEA staff, Alaska Department of Natural Resources, and contracted third-party vendors. The following items are evaluated as part of the stage two evaluation, as required per 3 AAC 107.645: •Project management, development, and operations •Qualifications and experience of project management team, including on-going maintenance and operation •Technical feasibility –including but not limited to sustainable current and future availability of renewable resource, site availability and suitability, technical and environmental risks, and reasonableness of proposed energy system •Economic feasibility and benefits –including but not limited to project benefit-cost ratio, project financing plan, and other public benefits owing to the project All stage 2 criteria are weighted as follows as part of the evaluation process. Those applications that score below 40 points in this stage will be automatically rejected by the authority, however, those projects scoring above 40 can also be rejected as under 3 AAC 107.645(b) has the authority to reject applications that it determines to be not technically and economically feasible, or do not provide sufficient public benefit. 4 CRITERIA CRITERIA DESCRIPTION WEIGHT 1 Project management, development, and operation 25% 2 Qualifications and experience 20% 3 Technical feasibility 20% 4.a Economic benefit-cost ratio 25% 4.b Financing plan 5% 4.c Other public benefit 5% REDUCING THE COST OF ENERGY IN ALASKA REF Evaluation Process -Stage 3 –Project Ranking Stage three is an evaluation concerning the ranking of eligible projects. This portion of the evaluation process is conducted by AEA staff in conjunction with solicitation from the Renewable Energy Fund Advisory Committee (REFAC) . The following items are evaluated as part of the stage three evaluation, as required per 3 AAC 107.655-660: •Cost of energy •Applicant matching funds •Project feasibility (levelized score from stage 2) •Project readiness •Public benefits (evaluated through stage 2 benefits) •Sustainability •Local Support •Regional Balance •Compliance All stage 3 criteria are weighted as follows as part of the evaluation process. The stage 3 scoring is used to determine the ranking score. 5 CRITERIA CRITERIA DESCRIPTION WEIGHT 1 Cost of Energy 30% 2 Matching Funds 15% 3 Project Feasibility (levelized score from stage 2) 25% 4 Project Readiness 5% 5 Public Benefits 10% 6 Sustainability 10% 7 Local Support 5% 8 Regional Balance Pass/Fail 9 Compliance Pass/Fail REDUCING THE COST OF ENERGY IN ALASKA REF Evaluation Process -Stage 4 –Regional Spreading Stage four is a final ranking of eligible projects, as required per 3 AAC 107.660, which gives “significant weight to providing a statewide balance of grant money, taking into consideration the amount of money available, number and types of projects within each region, regional rank, and statewide rank.” This portion of the evaluation process is conducted by AEA staff in conjunction with solicitation from the Renewable Energy Fund Advisory Committee (REFAC) . The following items are evaluated as part of the stage four evaluation, as required per 3 AAC 107.660: •Cost of energy burden = [HH cost of electric + HH heat cost] ÷ [HH income] –this is used to determine target funding allocation by region –for regional spreading Stage 4 cost of energy burden given below. The below table indicates target funding, as has been allocated, by region, this will be applied to stage 3 statewide ranking to determine the regionally-spread rank. 6 Even Split Energy Region Grant Funding % Total Cost burden (HH cost/HH income) Allocation cost of energy basis Additional funding needed to reach 50% % of target allocation % Total Allocation per capita basis Allocation per region basis Aleutians $17,426,348 7%9.39%$17,935,444 ($8,458,626)97%1%$2,851,862 $21,991,472 Bering Straits $20,485,269 8%15.43%$29,456,220 ($5,757,159)70%1%$3,301,922 $21,991,472 Bristol Bay $10,911,982 5%14.40%$27,499,297 $2,837,666 40%1%$2,498,585 $21,991,472 Copper River/Chugach $23,793,838 10%6.93%$13,224,221 ($17,181,728)180%1%$3,090,571 $21,991,472 Kodiak $16,486,919 7%5.83%$11,132,481 ($10,920,678)148%1%$2,951,723 $21,991,472 Lower Yukon-Kuskokwim $37,237,089 15%17.83%$34,039,114 ($20,217,531)109%4%$8,971,788 $21,991,472 North Slope $1,251,859 1%3.87%$7,393,706 $2,444,994 17%1%$2,491,403 $21,991,472 Northwest Arctic $23,119,029 10%15.99%$30,540,928 ($7,848,564)76%1%$2,512,949 $21,991,472 Railbelt $22,059,938 9%5.05%$9,636,377 ($17,241,750)229%78%$188,445,503 $21,991,472 Southeast $54,193,791 22%5.48%$10,469,004 ($48,959,289)518%9%$22,566,950 $21,991,472 Yukon-Koyukuk/Upper Tanana $14,377,031 6%26.49%$50,579,402 $10,912,670 28%1%$2,222,940 $21,991,472 Statewide $563,101 0%0.00% TOTAL $241,906,195 100%$241,906,195 100%$241,906,195 $241,906,195 Cumulative through Round 9 Cost of Power Allocation Population Total Round 1-9 Funding REDUCING THE COST OF ENERGY IN ALASKA REF Round XIV funding limits are governed by the requested phase(s) in the application and the technology type applied. Low vs High Cost Energy Areas: •Low Energy Cost Areas are defined as communities with a residential retail electric rate of below $0.20 per kWh, before Power Cost Equalization (PCE) reimbursement is applied. For heat projects, low energy cost areas are communities with natural gas available as a heating fuel to at least 50% of residences, or availability expected by the time the proposed project is constructed. •High Energy Cost Areas are defined as communities with a residential retail electric rate of $0.20 per kWh or higher, before PCE funding is applied. For heat projects, high energy cost areas are communities that do not have natural gas available as a heating fuel REF Funding Limits REF Round XIII Grant Funding Limits 7 REDUCING THE COST OF ENERGY IN ALASKA REFAC Roles Statutes (AS 42.45.045) •AEA “in consultation with the advisory committee…develop a methodology for determining the order of projects that may receive assistance….” •AEA “shall, at least once each year, solicit from the advisory committee funding recommendations for all grants .” Regulations (3 AAC 107.660) (a) To establish a statewide balance of recommended projects, the authority will provide to the advisory committee establishe d 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) 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 8 REDUCING THE COST OF ENERGY IN ALASKA REFAC Advisory Committee 9 NAME TITLE SECTOR APPOINTED BY VACANT TBD Small rural electric utility Governor Rose, Chris Executive Director, Renewable Energy Alaska Project Business/organization involved in renewable energy Governor Schubert,Gail CEO, Bering Straits Native Corporation Representative of an Alaska Native Organization Governor Siira, Alicia Member,Denali Commission; Exec Dir, Associated General Contractors of Alaska Denali Commission Governor Thibert,Lee CEO,Chugach Electric Association Large urban electric utility Governor Von Imhof, Natasha Senator (Dist. L)Senate Member 2 Senate President Wilson, David Senator (Dist.D)Senate Member 1 Senate President Wool,Adam Representative (Dist. 5)House Member 2 Speaker of the House Zulkosky, Tiffany Representative (Dist. 38)House Member 1 Speaker of the House REDUCING THE COST OF ENERGY IN ALASKA 10 SAFE, RELIABLE, & AFFORDABLE ENERGY SOLUTIONS ALASKA ENERGY AUTHORITY 813 West Northern Lights Blvd. Anchorage, Alaska 99503 Phone: (907) 771-3000 Fax: (907) 771-3044 Toll Free (Alaska Only) 888-300-8534 POWER COST EQUALIZATION PROGRAM STATISTICAL REPORT FY2021 Safe, Reliable, and Affordable Energy Solutions 813 W Northern Lights Blvd, Anchorage, AK 99503 • Phone: (907) 771-3000 • Fax: (907) 771-3044 • Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG March 1, 2022 Dear Fellow Alaskan, Per Alaska Statute 44.83.940, the Alaska Energy Authority (AEA) produces an annual Power Cost Equalization (PCE) Statistical Report detailing the operations of the program. A copy of this report for the Fiscal Year ending June 30, 2021, is attached. Alaska’s PCE program was established in 1984 to provide economic assistance to rural residents and rural electric utilities. AEA, along with the Regulatory Commission of Alaska, administers the program that serves 81,200 Alaskans in 193 communities that are primarily reliant on diesel fuel for power generation. The PCE program reduces the electric rates paid by rural consumers to levels comparable to those paid by consumers in Anchorage, Fairbanks, and Juneau. The program reimburses the utility for credits it extends to its customers. This happens after the utility reports its sales and provides a customer ledger to AEA. AEA reviews the utility monthly report and pays the utility based on rates calculated by the RCA. Residential and community facility buildings are eligible for the reduced rate. Residential customers are eligible for PCE credit up to 500 kilowatt-hours (kWhs) per month. Community facilities can receive PCE credit for up to 70 kWhs per month multiplied by the number of residents in a community. Ultimately, the PCE program helps to ensure the sustainability of remote economies dependent on reliable, centralized power. In Fiscal Year 2021, AEA budgeted $29 million for payment of PCE to rural electric utilities for the benefit of our rural communities. For more than 45 years, the AEA has worked tirelessly to reduce the cost of energy in rural Alaska. AEA is an essential partner with all of rural Alaska. Its policies emphasize community- based project management. Through innovation and collaboration, AEA provides the tools and the guidance necessary for every rural community to aim towards a bright energy future. A digital copy of this report may be found online at akenergyauthority.org. Additional hard copies may be requested by calling (907) 771-3000. Sincerely, Curtis W. Thayer Executive Director POWER COST EQUALIZATION PROGRAM Statistical Data by Community Reporting Period:  07/01/20..06/30/21 Table of Contents Program Highlights…………………………………………………………………………...…………………7 Fiscal Year 2020 vs. 2021……………………………………………………………………………………8 Historical Trends Fiscal Years 2012 ‐ 2021……………………………………………………………9 List of Participating Utilities/Communities………………………………………………………… 10 Map of Participating Utilities/Communities…………………………………………………………11 Adak…………………………………………………………………………...…………………………….……… 12 Akhiok…………………………………………………………………………...…………………………….……13 Akiachak…………………………………………………………………………...…………………………….…14 Akiak…………………………………………………………………………...…………………………….………15 Akutan…………………………………………………………………………...…………………………….……16 Alakanuk…………………………………………………………………………...…………………………….…17 Allakaket; Alatna…………………………………………………………………………...……………………18 Ambler…………………………………………………………………………...…………………………….……19 Anaktuvuk Pass…………………………………………………………………………...………………………20 Angoon…………………………………………………………………………...…………………………….……21 Aniak…………………………………………………………………………...…………………………….………22 Anvik…………………………………………………………………………...…………………………….………23 Arctic Village…………………………………………………………………………...…………………………24 Atka…………………………………………………………………………...…………………………….…………25 Atmautluak…………………………………………………………………………...……………………………26 Atqasuk…………………………………………………………………………...…………………………….……27 Beaver…………………………………………………………………………...…………………………….……28 Bethel; Oscarville…………………………………………………………………………...……………………29 Bettles; Evansville…………………………………………………………………………...…………………30 Birch Creek…………………………………………………………………………...……………………………31 Brevig Mission…………………………………………………………………………...………………………32 Buckland…………………………………………………………………………...…………………………….…33 Central…………………………………………………………………………...…………………………….……34 Chalkyitsik…………………………………………………………………………...…………………………… 35 Chefornak…………………………………………………………………………...…………………………….36 Chenega Bay…………………………………………………………………………...…………………………37 Chevak…………………………………………………………………………...…………………………….……38 Chignik Lagoon…………………………………………………………………………...………………………39 Chignik Lake…………………………………………………………………………...…………………………40 Chignik…………………………………………………………………………...…………………………….……41 Chilkat Valley…………………………………………………………………………...…………………………42 Chistochina…………………………………………………………………………...……………………………43 Chitina…………………………………………………………………………...…………………………….……44 Chuathbaluk…………………………………………………………………………...…………………………45 Page 2 of 187 POWER COST EQUALIZATION PROGRAM Statistical Data by Community Reporting Period:  07/01/20..06/30/21 Table of Contents Circle…………………………………………………………………………...…………………………….………46 Clark's Point…………………………………………………………………………...…………………………47 Coffman Cove…………………………………………………………………………...……………………… 48 Cold Bay…………………………………………………………………………...…………………………….…49 Cordova…………………………………………………………………………...…………………………….… 50 Craig…………………………………………………………………………...…………………………….……… 51 Crooked Creek…………………………………………………………………………...………………………52 Deering…………………………………………………………………………...…………………………….……53 Dillingham; Aleknagik…………………………………………………………………………...……………54 Diomede…………………………………………………………………………...…………………………….…55 Dot Lake; Dot Lake Village…………………………………………………………………………...…… 56 Eagle; Eagle Village…………………………………………………………………………...…………………57 Eek…………………………………………………………………………...…………………………….…………58 Egegik…………………………………………………………………………...…………………………….………59 Ekwok…………………………………………………………………………...…………………………….………60 Elfin Cove…………………………………………………………………………...…………………………….…61 Elim…………………………………………………………………………...…………………………….…………62 Emmonak…………………………………………………………………………...……………………………. 63 False Pass…………………………………………………………………………...……………………………. 64 Fort Yukon…………………………………………………………………………...……………………………65 Galena…………………………………………………………………………...…………………………….……66 Gambell…………………………………………………………………………...…………………………….… 67 Golovin…………………………………………………………………………...…………………………….……68 Goodnews Bay…………………………………………………………………………...………………………69 Grayling…………………………………………………………………………...…………………………….……70 Gustavus…………………………………………………………………………...…………………………….…71 Haines; Covenant Life…………………………………………………………………………...……………72 Healy Lake…………………………………………………………………………...…………………………… 73 Hollis…………………………………………………………………………...…………………………….………74 Holy Cross…………………………………………………………………………...…………………………….75 Hoonah…………………………………………………………………………...…………………………….……76 Hooper Bay…………………………………………………………………………...……………………………77 Hughes…………………………………………………………………………...…………………………….……78 Huslia…………………………………………………………………………...…………………………….………79 Hydaburg…………………………………………………………………………...…………………………….…80 Igiugig…………………………………………………………………………...…………………………….………81 Iliamna Newhalen Nondalton…………………………………………………………………………...…82 Kake…………………………………………………………………………...…………………………….…………83 Kaktovik…………………………………………………………………………...…………………………….…84 Kaltag…………………………………………………………………………...…………………………….………85 Karluk…………………………………………………………………………...…………………………….………86 Page 3 of 187 POWER COST EQUALIZATION PROGRAM Statistical Data by Community Reporting Period:  07/01/20..06/30/21 Table of Contents Kasigluk…………………………………………………………………………...…………………………….……87 Kiana…………………………………………………………………………...…………………………….………88 Kipnuk…………………………………………………………………………...…………………………….……89 Kivalina…………………………………………………………………………...…………………………….……90 Klawock…………………………………………………………………………...…………………………….……91 Klukwan…………………………………………………………………………...…………………………….… 92 Kobuk…………………………………………………………………………...…………………………….………93 Kokhanok…………………………………………………………………………...…………………………….…94 Koliganek…………………………………………………………………………...…………………………….…95 Kongiganak…………………………………………………………………………...……………………………96 Kotlik…………………………………………………………………………...…………………………….………97 Kotzebue…………………………………………………………………………...…………………………….…98 Koyuk…………………………………………………………………………...…………………………….………99 Koyukuk…………………………………………………………………………...…………………………….…100 Kwethluk…………………………………………………………………………...…………………………….…101 Kwigillingok…………………………………………………………………………...……………………………102 Larsen Bay…………………………………………………………………………...…………………………… 103 Levelock…………………………………………………………………………...…………………………….…104 Lime Village…………………………………………………………………………...……………………………105 Lower Kalskag…………………………………………………………………………...……………………… 106 Manley Hot Springs…………………………………………………………………………...………………107 Manokotak…………………………………………………………………………...……………………………108 Marshall…………………………………………………………………………...…………………………….…109 McGrath…………………………………………………………………………...…………………………….…110 Mekoryuk…………………………………………………………………………...……………………………. 111 Mentasta…………………………………………………………………………...…………………………….…112 Minto…………………………………………………………………………...…………………………….………113 Mt. Village…………………………………………………………………………...…………………………… 114 Naknek;S.Naknek;Kng Slmn…………………………………………………………………………...……115 Napakiak…………………………………………………………………………...…………………………….…116 Napaskiak…………………………………………………………………………...……………………………. 117 Naukati…………………………………………………………………………...…………………………….……118 Nelson Lagoon…………………………………………………………………………...………………………119 New Stuyahok…………………………………………………………………………...………………………120 Newtok…………………………………………………………………………...…………………………….……121 Nightmute…………………………………………………………………………...…………………………… 122 Nikolai…………………………………………………………………………...…………………………….……123 Nikolski…………………………………………………………………………...…………………………….……124 Noatak…………………………………………………………………………...…………………………….……125 Nome…………………………………………………………………………...…………………………….………126 Noorvik…………………………………………………………………………...…………………………….……127 Page 4 of 187 POWER COST EQUALIZATION PROGRAM Statistical Data by Community Reporting Period:  07/01/20..06/30/21 Table of Contents Northway; Northway Village…………………………………………………………………………...…128 Nuiqsut…………………………………………………………………………...…………………………….……129 Nulato…………………………………………………………………………...…………………………….…… 130 Nunam Iqua…………………………………………………………………………...……………………………131 Nunapitchuk…………………………………………………………………………...…………………………132 Old Harbor…………………………………………………………………………...……………………………133 Ouzinkie…………………………………………………………………………...…………………………….…134 Pedro Bay…………………………………………………………………………...……………………………. 135 Perryville…………………………………………………………………………...…………………………….…136 Pilot Point…………………………………………………………………………...…………………………….137 Pilot Station…………………………………………………………………………...……………………………138 Pitkas Point…………………………………………………………………………...……………………………139 Point Hope…………………………………………………………………………...……………………………140 Point Lay…………………………………………………………………………...…………………………….…141 Port Alsworth…………………………………………………………………………...…………………………142 Port Heiden…………………………………………………………………………...……………………………143 Quinhagak…………………………………………………………………………...…………………………… 144 Rampart…………………………………………………………………………...…………………………….…145 Red Devil…………………………………………………………………………...…………………………….…146 Ruby…………………………………………………………………………...…………………………….……… 147 Russian Mission…………………………………………………………………………...…………………… 148 Sand Point…………………………………………………………………………...…………………………… 149 Savoonga…………………………………………………………………………...…………………………….…150 Scammon Bay…………………………………………………………………………...……………………… 151 Selawik…………………………………………………………………………...…………………………….……152 Shageluk…………………………………………………………………………...…………………………….…153 Shaktoolik…………………………………………………………………………...…………………………….154 Shishmaref…………………………………………………………………………...……………………………155 Shungnak…………………………………………………………………………...…………………………….…156 Skagway…………………………………………………………………………...…………………………….…157 Slana…………………………………………………………………………...…………………………….………158 Sleetmute…………………………………………………………………………...…………………………….159 St. George…………………………………………………………………………...…………………………….160 St. Mary's; Andreafsky…………………………………………………………………………...……………161 St. Michael…………………………………………………………………………...……………………………162 St. Paul…………………………………………………………………………...…………………………….……163 Stebbins…………………………………………………………………………...…………………………….…164 Stony River…………………………………………………………………………...……………………………165 Takotna…………………………………………………………………………...…………………………….……166 Tanana…………………………………………………………………………...…………………………….……167 Tatitlek…………………………………………………………………………...…………………………….……168 Page 5 of 187 POWER COST EQUALIZATION PROGRAM Statistical Data by Community Reporting Period:  07/01/20..06/30/21 Table of Contents Teller…………………………………………………………………………...…………………………….………169 Tenakee Springs…………………………………………………………………………...……………………170 Tetlin…………………………………………………………………………...…………………………….………171 Thorne Bay; Kasaan…………………………………………………………………………...………………172 Togiak…………………………………………………………………………...…………………………….………173 Tok; Tanacross…………………………………………………………………………...………………………174 Toksook Bay…………………………………………………………………………...…………………………175 Tuntutuliak…………………………………………………………………………...……………………………176 Tununak…………………………………………………………………………...…………………………….…177 Twin Hills…………………………………………………………………………...…………………………….…178 Unalakleet…………………………………………………………………………...…………………………… 179 Unalaska…………………………………………………………………………...…………………………….…180 Upper Kalskag…………………………………………………………………………...……………………… 181 Venetie…………………………………………………………………………...…………………………….……182 Wainwright…………………………………………………………………………...……………………………183 Wales…………………………………………………………………………...…………………………….………184 Whale Pass…………………………………………………………………………...……………………………185 White Mountain…………………………………………………………………………...……………………186 Yakutat…………………………………………………………………………...…………………………….……187 Page 6 of 187 Page 7 of 187 HIGHLIGHTS OF THE POWER COST EQUALIZATION PROGRAM Eligibility Utility An electric utility participating in the Power Cost Equalization Program (PCE) must: a) provide electric service to the public for compensation; b) during calendar year 1983, had less than 7,500 megawatt hours of residential consumption or less than 15,000 megawatt hours if two or more communities were served; and c) during calendar year 1984, the utility has used diesel-fired generators to produce more than 75% of its electrical consumption. Customers Customer eligibility is based on actual power purchased. State and federal offices/facilities, commercial customers and public schools are excluded from PCE. Residential customers are eligible for PCE credit up to 500 kilowatt-hours (kWh/s) per month. Community facilities, as a group, can receive PCE credit for up to 70 kilowatt-hours per month multiplied by the number of residents in a community. Formula Used to determine PCE level/kWh for a utility: Formula: 95% of the eligible costs per kWh between 20.63 cents/kWh, “the floor” and $1.00/kWh, “the ceiling”. Costs below 20.63 cents/kWh and above $1.00/kWh are not eligible for PCE. If the eligible costs are $1.00/kWh or more, the maximum PCE level is 75.40 cents/kWh. ($1.00 – 20.63 cents = 79.37 cents x 95% = 75.40 cents). A participating utility must meet generation efficiency and line loss standards; otherwise the PCE level is reduced to reflect those standards. Process The Regulatory Commission of Alaska (RCA) RCA determines the PCE level per kWh for each utility. Two categories of costs are used in determining the PCE level: a) fuel expenses: the cost of fuel, including transportation of fuel; and b) non-fuel expenses: salaries, insurance, taxes, power plant parts and supplies, interest and other reasonable costs. The Alaska Energy Authority (AEA) Eligible utilities submit monthly reports to AEA that document the eligible power sold and PCE credits applied to eligible customers’ bills. AEA calculates the amount of PCE on a monthly basis and issues payment to the utility. AEA verifies the eligibility of customers and of community facilities. In addition, AEA calculates the required pro-rated PCE levels based on available funds. Authority PCE is governed by Alaska Statutes 42.45.110-170, and by the Alaska Administrative Code 3 AAC 107.200-270 and 3 AAC 52.600-690. POWER COST EQUALIZATION PROGRAM STATISTICS FISCAL YR FISCAL YR % CHANGE See  (6)  2020 2021 2020‐2021% Participation Statistics Population Served 81,694 81,160 ‐0.7% Communities Served 193 193 0.0% Participating Utilities 86 86 0.0% Total Residential Customers (1) 28,158 27,918 ‐0.9% Total Community Facilities Customers (7) 1,984 1,969 ‐0.8% Total Customers (Residential & Community Facilities)  (1) (7) 30,142 29,887 ‐0.8% Production Statistics Total Diesel Generation (kWh)  388,166,214 380,339,681 ‐2.0% Total "Other" (Hydro/Wind/Solar/Natural Gas) Generation (kWh) 48,425,017 46,261,314 ‐4.5% Total Purchased Power (kWh) 53,136,733 51,289,815 ‐3.5% Total kWh Sold (All Customers) (2),(3) 455,730,358 439,801,652 ‐3.5% PCE Eligible Residential kWh 96,544,210 97,281,383 0.8% PCE Eligible Community kWh 34,946,022 34,396,917 ‐1.6% Total PCE Eligible ‐ Community Facilities & Residential 131,490,232 131,678,300 0.1% Total PCE Eligible kWh Shown as Percent of Total kWh Sold 29% 30%3.8% Average Monthly PCE Eligible kWh ‐ Residential Customers  (3) 286 290 1.6% Average Monthly PCE Eligible kWh ‐ Community Facilities  (3) 1,468 1,456 ‐0.8% Average Monthly PCE Eligible kWh ‐ Community Facilities / Per Resident  (3) 36 35 ‐0.9% Financial Statistics Average Price of Fuel Oil ($/gallon) 3.0700 2.6328 ‐14.2% Total Fuel Oil Consumed (gallons) 28,199,707 27,721,339 ‐1.7% Total Cost of Fuel Oil Purchased by the Utilities ($) 86,638,172 72,955,240 ‐15.8% Total Non‐Fuel Expenses ($) (6) 87,853,342 81,592,866 ‐7.1% Non‐Fuel Expenses per Total kWh Sold ($) (6) 0.1928 0.1855 ‐3.8% Total Operating Costs per kWh ($) Sold (4) 0.3829 0.3514 ‐8.2% PCE Legislative Funding Appropriations for Utility Payments 32,355,000 29,500,000 ‐8.8% Total Monthly Reports/PCE Reimbursements to Utilities Processed (5) 29,006,012 23,524,178 ‐18.9% (1) Assumes all customers were eligible to receive PCE credit. (2) Value reduced by 1,984,396 in FY21 and 1,838,561 in FY20 to eliminate double counting of kWh's where power is sold/purchased between utilities participating in the PCE Program. (3) Calculation assumes all residential and community facilities customers were eligible to receive twelve (12) months of PCE credit (4) "Operating" costs include both fuel and non-fuel expenses. (5) During FY21 and FY20 PCE payments were made at a 100% level for all 12 months. (6) Net change between years is partially attributable to incomplete reporting by utilties (7) Total Customers represents the number of customers reported by the utility for the last reported month. 8 of 187 POWER COST EQUALIZATION PROGRAMHISTORICAL TRENDSFiscal Year 2012 - 20212012 2013 2014 2015 2016 2017 2018 2019 2020 2021PARTICIPATIONParticipating Utilities 87 88 87 86 88 89 89 88 86 86Communities Served 188 190 190 190 191 194 194 193 193 193Population Served 79,644 81,693 82,427 81,969 82,986 83,850 83,400 81,997 81,694 81,160PCE ELIGIBLE CUSTOMERSResidential 27,402 27,795 27,716 27,893 28,035 27,857 28,365 28,338 28,158 27,918Community Facilities 1,919 1,900 1,889 1,850 2,056 2,067 2,090 2,069 1,984 1,069Total Customers 29,321 29,695 29,605 29,743 30,091 29,924 30,455 30,40730,142 28,987FUNDINGAppropriations ($) $39,150,000 $40,100,000 $41,006,000 $41,000,000 $41,000,000 $40,000,000 $32,355,000 $32,355,000 $32,355 $29,500Disbursements ($) $39,059,864 $39,715,618 $39,571,659 $37,379,742 $31,042,569 $26,099,807 $26,182,235 $28,357,347 $29,006,012 $23,624,178Disbursements/Customer ($) $1,332 $1,337 $1,337 $1,257 $1,032 $872 $860 $933 $962 $815Funding Level 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%CONSUMPTIONTotal MWh Sold (MWH) 459,056 463,573 452,751 450,852 447,333 462,998 458,734 453,598 455,730 439,803PCE Eligible MWh Residential 96,666 97,102 95,990 96,453 94,816 97,751 96,597 95,606 96,544 97,281Avg. PCE Eligible kWh/Month/Residential Cust 294 291 289 288 282 292 284 281 285 285PCE Eligible MWh Community Facilities 34,750 34,743 33,409 32,795 34,357 35,747 34,929 34,191 34,946 34,397Elig. kWh/Month/Capita, Community Facilities 36.0 35.0 34.0 33.3 35.0 36.0 35.0 34.7 35.6 35.3Total PCE Eligible MWh 131,417 131,845 129,414 129,248 129,173 133,498 131,526 129,797 131,490 131,678Eligible kWh/Month/Cust, Total Customers 374 370 364 362 358 372 360 356 364 379COSTSAverage Price of Fuel Oil ($/gallon) $4.02 $4.21 $4.21 $3.97 $3.24 $2.66 $2.86 $3.06 $3.07 $2.63Total Gallons of Fuel Oil Consumed 29,204,577 28,957,490 27,919,599 27,191,149 26,865,206 28,838,704 28,638,535 28,425,146 28,199,707 27,721,799Total Cost of Fuel Oil ($) $117,313,926 $121,707,897 $117,483,188 $107,842,372 $87,102,302 $76,759,457 $76,137,419 $86,989,310 $86,638,172 $72,986,712Total Non-Fuel Costs ($) $69,554,141 $79,772,882 $73,336,386 $76,036,533 $82,964,017 $85,141,895 $89,505,362 $85,813,619 $87,853,342 $71,201,558FINANCIAL RATIOSNon-Fuel Costs Per Total kWh Sold 0.1515$ 0.1721$ 0.1620$ 0.1687$ 0.1855$ 0.1839$ 0.1770$ 0.1892$ 0.1928$ 0.1619$ Total Operating Costs Per Total kWh Sold 0.4071$ 0.4346$ 0.4215$ 0.4078$ 0.3802$ 0.3497$ 0.3276$ 0.3810$ 0.3829$ 0.3278$ RATESAvg. PCE per Eligible kWh Res. & Comm Facility ($/kWh) 0.2972$ 0.3012$ 0.3058$ 0.2892$ 0.2403$ 0.1955$ 0.3021$ 0.2185$ 0.2206$ 0.1794$ Weighted Avg. Residential Rate (Before PCE Paid) 0.5131$ 0.4973$ 0.5005$ 0.4915$ 0.4541$ 0.4270$ 0.4226$ 0.4618$ 0.4630$ 0.4600$ Weighted Avg. Residential PCE Rate (Amount PCE pays) 0.3044$ 0.3064$ 0.3108$ 0.2919$ 0.2432$ 0.1983$ 0.1987$ 0.2191$ 0.2226$ 0.2226$ Weighted Avg. Residential Effective Rate (1)0.2087$ 0.1909$ 0.1897$ 0.1996$ 0.2109$ 0.2287$ 0.2239$ 0.2427$ 0.2404$ 0.2374$ (1) Amount customers pay for first 500 kWh/month. 9 of 187 Birch Creek Electric Napaskiak Electric Utility Buckland, City of Naterkaq Light Plant Chalkyitsik Village Council Chefornak Chenega IRA Village Council Nelson Lagoon Electrical Cooperative Chignik, City of New Koliganek Village Council Allakaket / Alatna Hydaburg Chignik Lagoon Power Utility Koliganek Bettles / Evansville Klawock Chignik Lake Electric Nikolai, City of Chistochina Mentasta Chitina Electric Inc. Nome Joint Utility System Coffman Cove Naukati Circle Electric Utility North Slope Borough Craig Northway / Northway Village Clarks Point Village Council Anaktuvuk Pass Point Hope Dot Lake / Dot Lake Village Skagway Cordova Electric Co-op Atqasuk Point Lay Eagle / Eagle Village Slana Cordova Eyak Kaktovik Wainwright Gustavus Tetlin Diomede Joint Utilities Nuiqsut Haines / Covenant Life Thorne Bay / Kassan Egegik Light and Power Nunam Iqua Electric Company Healy Tok / Tanacross Elfin Cove Utility Commission Nushagak Electric Cooperative Hollis Whale Pass False Pass, City of Aleknagik / Dillingham Alaska Village Electric Cooperative Galena, City of Ouzinkie, City of Alakanuk Nightmute G & K Inc. Pedro Bay Village Council Ambler Noatak Cold Bay Perryville, Native Village Of Anvik Noorvik Gold Country Energy Pilot Point Electrical Bethel / Oscarville Nulato Central Port Heiden Utilities Brevig Mission Nunapitchuk Golovin Power Utilities Puvurnaq Power Company Chevak Old Harbor Gwitchyaa Zhee Utilities Kongiganak Eek Pilot Station Fort Yukon Rampart Village Council Electric Ekwok Pitka's Point Hughes Power & Light Ruby, City of Elim Quinhagak Igiugig Electric Company St. George, City of Emmonak Russian Mission I-N-N Electric Cooperative St. Paul Municipal Electric Gambell Savoonga Iliamna / Newhalen / Nondalton Takotna Community Assoc. Inc. Goodnews Bay Scammon Bay Inside Passage Electric Cooperative Tanalian Electric Cooperative Grayling Selawik Angoon Kake Port Alsworth Holy Cross Shageluk Chilkat Valley Klukwan Tanana Power Company Inc. Hooper Bay Shaktoolik Hoonah Tatitlek Village IRA Council Huslia Shishmaref Ipnatchiaq Electric Company TDX Adak Generating LLC Kaltag Shungnak Deering Adak Kasigluk St. Mary's / Andreafsky Kipnuk Light Plant TDX Corporation Kiana St. Michael Kokhanok Village Council Sand Point Kivalina Stebbins Kotzebue Electric Association TDX Manley Generating LLC Kobuk Teller Koyukuk, City of Manley Hot Springs Kotlik Togiak Kwethluk Incorporated Tenakee Springs, City of Koyuk Toksook Bay Kwigillingok IRA Council Tuntutuliak Community Service Assoc. Lower Kalskag Tununak Larsen Bay Utility Company Twin Hills Village Council Marshall Upper Kalskag Levelock Electrical Coop Umnak Power Company Mekoryuk Wales Lime Village Electric Utility Nikolski Minto Yakutat Manokotak Power Company Unalakleet Valley Electrical Cooperative Mt. Village McGrath Light & Power Unalaska, City of New Stuyahok Middle Kuskokwim Electric Ungusrag Power Company Alutiiq Power Company Chuathbaluk Sleetmute Newtok Metarvik Karluk Crooked Creek Stony River Venetie Village Electric Aniak Light & Power Company Red Devil White Mountain, City of Arctic Village Council Naknek Electric Atka, City of King Salmon Atmautluak Joint Utilities Naknek / South Naknek Beaver Joint Utilities Napakiak Ircinraq FY21 PCE Program Participating Utilities Akiachak Native Community Akiak City Council Alaska Power Company Akhiok / Kaguyak Electric Akutan Electric Utility Page 10 of 187 Safe,Reliable, and AffordableEnergySolutions Alaska Energy Authority 813 W Northern Lights Blvd. Anchorage, AK 99503 Phone: (907) 771-3000 Fax: (907) 771-3044 Toll Free: (888) 300-8534 akenergyauthority.org UtilityName GrantNumberRequestedAmountStatus ApprovedAmountDisbursedAmountAkiachak Native Community Electric Company 9220019 6,773.42$              Disbursed‐$                     6,773.42$                    Program Amount 6,830,000.00$          Alaska Electric Light and Power Company 9220025 192,283.53$         Disbursed‐$                     104,822.21$               Total Amount Requested 4,862,572.81$          Alaska Power Company 9220008 21,664.33$           Disbursed‐$                     15,134.89$                  Total Amount Remaining 1,967,427.19$          Barrow Utilities and Electric Cooperative, INC. 9220018 10,689.16$           Disbursed‐$                     2,029.52$                    Percentage Remaining 28.81%Beaver Joint Utilities 9220012 3,551.14$              Denied‐$                      ‐$                              Grants Requested 35Chugach Electric Association 9220009 1,649,384.00$      Disbursed‐$                     1,023,269.64$            In Processing 1City and Borough of Wrangell, AK 9220023 11,559.12$           Disbursed‐$                     3,704.27$                    City of Chignik 9220021 8,110.70$              Disbursed‐$                     8,110.70$                    Verified 0City of Hughes Power & Light Company 9220003 37,314.59$           Disbursed‐$                     8,775.51$                    Verified Amount‐$                            City of Nikolai 9220013 9,408.47$              Disbursed‐$                     9,408.47$                    Approved 1Golden Valley Electric Association, Inc. 9220024 1,025,576.00$      Disbursed‐$                     403,574.10$               Approved Amount 19,091.51$                Golovin Power 9220016 2,616.55$              Disbursed‐$                     2,616.35$                    Disbursed 29Homer Electric Association 9220022 711,053.06$         Disbursed‐$                     594,565.17$               Disbursed Amount 2,907,134.86$          Inside Passage Electric Cooperative 9220010 5,546.48$              Disbursed‐$                     5,315.95$                    Withdrawn 2* Verified amount is primary approval stageKotzebue Electric Association Inc. 9220011 7,354.65$              Disbursed‐$                     5,690.85$                    Withdrawn Amount 41,569.58$                * *Approved amount is final approval stageKwig Power Company 9220004 29,952.12$           Processing‐$                      ‐$                              Denied 2Manokotak Power Company 9220035 39,814.66$           Disbursed‐$                    21,152.21$                  Denied Amount 27,023.80$                Matanuska Electric Association, Inc. 9220005 39,025.21$           Disbursed‐$                     37,802.96$                  McGrath Light & Power 9220031 207,795.67$         Disbursed‐$                     41,402.45$                  Middle Kuskokwim Electric Cooperative, Inc. 9220030 26,711.91$           Disbursed‐$                     5,589.81$                    Naterkaq Light & Power 9220034 25,300.78$           Approved 19,091.51$         ‐$                              Nome Joint Utility System 9220028 41,349.28$           Withdrawn‐$                      ‐$                              North Slope Borough 9220020 549,036.93$         Disbursed‐$                     503,134.37$               Nushagak Electric & Telephone Cooperative Inc. 9220036 7,703.18$              Disbursed‐$                     7,703.13$                    Pedro Bay Village Council ‐ Electric Utility 9220029 3,721.11$              Disbursed‐$                     3,208.72$                    Pelican Utility District 9220015 13,312.03$           Disbursed‐$                     13,312.03$                  Petersburg Borough 9220007 32,250.49$           Disbursed‐$                     17,298.71$                  Puvurnaq Power Company 9220017 23,472.66$           Denied‐$                      ‐$                              Rampart Village Council 9220026 7,561.22$              Disbursed‐$                     7,120.65$                    Takotna Community Assn. 9220014 23,142.17$           Disbursed‐$                     23,142.17$                  TDX Adak Generating, LLC 9220033 1,071.66$              Disbursed‐$                     1,071.66$                    TDX Manley Generating, LLC 9220027 220.30$                 Withdrawn‐$                      ‐$                              TDX Sand Point Generating, LLC 9220032 8,379.34$              Disbursed‐$                     1,526.84$                    Twin Hills Village Council 9220006 61,225.00$           Disbursed‐$                     12,292.08$                  Unalakleet Valley Electric Co‐operative 9220001 18,641.89$           Disbursed‐$                     17,586.02$                  4,862,572.81$       19,091.51$          2,907,134.86$         ELECTRIC UTILITY RELIEF PROGRAMAS OF 2/16/22 @ 10:56 amProgram Amount $6,830,000.00Total Amount Requested $4,862,572.81Total Amount Remaining$1,967,427.19Verified Amount$0.00Approved Amount$19,091.51Disbursed Amount$2,907,134.86Withdrawn Amount$41,569.58Denied Amount$27,023.80Program AmountTotal Amount RequestedTotal Amount RemainingIn ProcessingVerified AmountApproved AmountDisbursed AmountWithdrawn AmountDenied Amount REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG February 11, 2022 Re: COVID-19 RELIEF - Electric Utility Relief Program Round 2 Dear Electric Utility, On March 11, 2020, Governor Mike Dunleavy issued a declaration that a public health disaster emergency exists statewide in Alaska for the Coronavirus Disease 2019 (“COVID- 19”) pandemic. The budget appropriations bill, House Bill 69 was approved on June 30, 2021, by the Alaska Legislature and signed into law by the Governor. The bill provided the Department of Commerce, Community and Economic Development (DCCED) with $7,000,000 in funding for a grant to electric utilities to address delinquent payments due to COVID-19. In partnership with DCCED, the Alaska Energy Authority (AEA) is administering the Program to distribute these COVID-19 relief funds to Alaska electric utilities for money remaining unpaid as of Application Date, which is carried on the books and records of account of the utility which accrued between March 11, 2020, and April 30, 2021, for residential electric service customers whose billings were in arrears or delinquent due to COVID-19 and is still outstanding as of your submitted Application Date. The funds distributed are to be credited to the accounts of residential electric utility customers in arrears due to COVID -19. In the case where funds are insufficient to meet all grantee requests, the funding is expected to be equitably prorated among grantees. To apply for the COVID-19 Relief, please complete the attached COVID-19 Relief Fund Application and Authorized Signer Form. Along with the form, you must also provide documentation that supports any claim for payment arising from residential customer accounts carried on your books due to the customer’s inability to remain current on residential electric utility billings due to COVID-19. An Application for COVID-19 Relief Funds can also be made online at AEA’s website- COVID-19 RELIEF ( https://eurp.akenergyauthority.org/ ). COVID-19 Relief Fund Application and all required documentation must be submitted ONLINE or postmarked no later than 4:30 P.M. on March 15, 2022 to: Alaska Energy Authority ATTN: Planning Department – COVID-19 RELIEF 813 W Northern Lights Blvd. Anchorage, AK 99503 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771 -3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org Should you have questions about this letter and the information you are asked to provide, please contact AEA at (907) 771-3056. Best Regards, Curtis W Thayer Executive Director Alaska Energy Authority Page 2 of 2 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG THIS INFORMATION MUST BE SUBMITTED TO THE ADDRESS PROVIDED IN THE COVERING CORRESPONDENCE ON OR BEFORE MARCH 15, 2022 IN ORDER TO BE CONSIDERED FOR PAYMENT Provide the following information: A. Business Legal Name, Point of Contact (full name), E-mail address, Mailing address, telephone number, and the number of your utility commission issued Certificate of Public Convenience and Necessity(CPCN#), and Company Tax Id Number(EIN). B. Please designate the preferred means of contacting you if we have questions. C. Provide the total amount of money remaining unpaid as of Application Date, which is carried on the books and records of account of the utility which accrued between March 11, 2020 and April 30, 2021 for residential electric service customers whose billings were in arrears or delinquent due to COVID-19. D. Provide all necessary documentation kept by the utility in the ordinary course of business which establishes the amount set out above. This may include copies of actual ledgers, spreadsheets, records of account or materials which may be helpful in understanding your request for payment and verifying the amount of money you seek. PLEASE DO NOT PROVIDE CUSTOMER NAMES OR ADDRESSES. DO PROVIDE CUSTOMER ACCOUNT NUMBERS. E. Provide a full and complete explanation of all funds received from any source which at any time from March 11, 2020 until Application Date was received by the utility and applied to residential customer electric service accounts to reduce the unpaid debts of residential customers which were delinquent due to COVID-19. The records you provide should identify the date any such payment was received, from whom it was received and how it was applied to the individual residential customer accounts there by reducing the total debt both for individual customers and for the utility as a whole. 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 A. I certify that the information submitted in this application is true and correct to the best of my knowledge and that I am an authorized representative of this utility. I understand that the Alaska Energy Authority will rely on the accuracy of the submittals and certifications made in conjunction with this application. Any misrepresentation or inaccurate information may require repayment of any grant funds. I understand that if funds are knowingly used for unauthorized purposes, the State of Alaska may pursue recovery of grant funds, and/or civil/criminal charges. Print Name / Title Signature Date Alaska Energy Authority Page 2 of 2 Please submit an updated form whenever there is a change to the above information. Grant number(s) Grant Documents Authorized Signers Please clearly print or type all sections of this form. Community/Grantee Name: Regular Election is held: Date: Authorized Grant Signer(s): Printed Name Title Term Signature I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: Phone Number: Fax Number: E-mail Address: Federal Tax ID #: Please return the original completed form to: Alaska Energy Authority 813 W. Northern Lights Blvd. Anchorage, AK 99503 Attn: Grants Assistant grants@akenergyauthority.org Revised December 2019 Curtis ThayerExecutive Director - AEAPCN 08-0208Dave HeimkeChief Operating OfficerPCN 08-0206Bryan CareyOwned Assets/Hydro Group MgrPCN 08-X071Michael BlountPCE TechnicianPCN 08-X075Jennifer BertoliniExecutive AsstPCN 08-0219Deanna ParsonsAdmin AsstPCN 08-0410Kirk WarrenDir Engineering & Energy DevPCN 08-0491Conner EricksonPlanning ManagerPCN 08-X098Josephine HartleyProject Manager Program ManagerPCN 08-0443 Vacant Contract Admin PCN 08-0440Elling WarnerRural Electric Utility WorkerPCN 21-7010Kyler KillmerCircuit Rider TechnicianPCN 08-X003Tim SandstromDirector Rural ProgramsPCN 08-0466Justin TuomiRural Assist MgrPCN 21-7012TW PatchDirector Planning PCN 08-0230Daniel JohnstonProject ManagerPCN 08-X007Lucas JuryCircuit Rider TechnicianPCN 08-X029Rebecca GarrettProject ManagerPCN 08-0403Brandy Dixon Communications Director PCN 08-X034Owen BerklundSr AccountantPCN 08-0457Taryn Perez Special Projects Mgr PCN 08-0412Justin CrowtherSystems ProgrammerPCN 08-X076Robert HawkinsMIS AdministratorPCN 08-0227Juston Dixon Analyst ProgrammerPCN 08-X037William PriceProject ManagerPCN 08-0222Alan WeitznerExecutive Director - AIDEAPCN 08-0200Mark Davis Special CounselPCN 08-0224Tiffany JanssenCommercial Finance DirectorPCN 08-0201Dona KeppersChief Fin OfficerPCN 08-0203VacantControllerPCN 08-0453VacantFinancial Systems AnalystPCN 08-X038Candidate Identified Asst ControllerPCN 08-X074Stas BeckfordAccounting TechPCN 08-0468Fiorella Isla GalvezAccountantPCN 08-0438Ian NilsenIT Analyst/ Network SupportPCN 21-7015VacantAccounting TechPCN 08-0214VacantSr Project Acct/ Budget AnalystPCN 08-0507Linda SennHR Director PCN 08-0455VacantAssistant Program ManagerPCN 08-0220Selwin RayContracting OfficerPCN 08-X019Daniela PattersonContract AdminPCN 08-0469Raymie HamannExecutive AsstPCN 08-0213Candidate IdentifiedAdmin AsstPCN 08-X036VacantAsst Project ManagerPCN 21-7013Candidate IdentInvestment Officer PFPCN 08-0402Leona HakalaLoan Officer IIPCN 08-0204William PhelanLoan Officer IIPCN 08-0205Nancy Manivong-AguirreCF Loan AsstPCN 08-0215Michelle McLeanSr Loan Servicer PCN 08-0207Kim RamosAccounting TechPCN 08-0216 Brad BigelowProject ManagerPCN 08-0490Jesse PetersonSr. Manager PFAMPCN 08-0228VacantProgram Manager - Energy Data PCN 08-0425VacantP Mgr EconomistPCN 21-7014Angela KuestSr IFD OfficerPCN 08-X095Jeff WilliamsPCE Program Mgr/ Cmnty Assist AdvPCN 08-0411Emily EngrischPCE TechnicianPCN 08-0217Jeff San JuanSr Fin OfficerPCN 08-X109 Terence CatoIT DirectorPCN 08-0401 82 EX: Exempt 0 NP: Non Perm 82 Total PositionsDepartment of Commerce, Community and Economic DevelopmentAIDEA/AEAFY2022 Org Chart as of 2/17/2022Kyla StewardEng & ComSpecialistPCN 08-0233VacantIFD OfficerPCN 08-0498 Morgan NeffChief Investment OfficerPCN 08-0229David KennedyBusiness Systems AnalystPCN 08-X141Khae PasaoAsst Project ManagerPCN 08-X0772/17/2022Betsy McGregorPrelim Design & Envir MgrPCN 08-X073Geoffrey JohnsInvestment Officer PF PCN 08-X072Karin St. ClairGrants CoordinatorPCN 08-X127Christal MouaHR TechnicianPCN 08-0473UpdatedColleen BryanCommunications DirectorPCN 08-0223Program ManagerPCN 08-0202SHARED SERVICESAIDEAAEAKevin BucklandControllerPCN 08-0209Brandon ClarkSr AccountantPCN 08-0423Carmen NobleAccountantPCN 08-0493Rita NiemannAccounting TechPCN 08-0211Jennifer BrownAsst ControllerPCN 08-X117James JohnsonAccounting TechPCN 08-0221David LockardInfrastructure EngineerPCN 08-X123VacantProject ManagerPCN 08-0231Kelly NobleContracting OfficerPCN 08-0495Yeng HerLoan Servicing TechnicianPCN 08-0210 Audrey AlstromDirector AEEE Program PCN 08-X033Taylor AsherProject Manager Program ManagerPCN 08-X106 ALASKA ENERGY AUTHORITY 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 I P 907.771.3000 I Toll Free 888.300.8534 I F 907.771.3044 I WWW.AKENERGYAUTHORITY.ORG SUSITNA-WATANA HYDROELECTRIC PROJECT Curtis W. Thayer, Executive Director Bryan Carey, Owned Assets/ Hydro Group Manager Senate Resources Committee April 23, 2021 U.S. AND ALASKA ENERGY PROFILE (%) REDUCING THE COST OF ENERGY IN ALASKA | 02 U.S.AK Oil and Gas Coal Renewable Energy Hydroelectric Nuclear Power 34% 58% 6%2% AK* EXISTING U.S. HYDROPOWER FACILITIES REDUCING THE COST OF ENERGY IN ALASKA | 03 PROJECT STATUS In 2014, Administrative Order (AO) 271 placed the Susitna-Watana Hydroelectric Project into abeyance In 2019, through AO 309 the Governor rescinded AO 271 In Fiscal Year 2020, no state funds were spent 2014 2019 2020 STATE ENERGY POLICY House Bill 306 In 2010, the Legislature unanimously passed HB 306 , which set an aspirational goal to generate 50 percent of the state’s electricity from renewable and alternative energy sources by 2025. REDUCING THE COST OF ENERGY IN ALASKA | 06 WHY LARGE HYDRO? Oil & Gas 70% Coal 9% 21%Hydro 2011 Oil & Gas 65% Coal 6% 27%Hydro 2019 REDUCING THE COST OF ENERGY IN ALASKA | 07 AS 44.83.080 POWERS OF THE AUTHORITY (18) to acquire a Susitna River power project, whether by construction, purchase, gift, or lease, including the acquisition of property rights and interests by eminent domain under AS 09; (19) to perform feasibility studies and engineering and design with respect to power projects. REDUCING THE COST OF ENERGY IN ALASKA | 08 WHY SUSITNA-WATANA? percent estimated supply of current Railbelt energy demand 50 100+ years is the project life providing long- term, stable rates billion estimated energy cost savings ($2014) over first 50 years $11.2 CO The reduction of carbon dioxide emissions from displaced coal and natural gas-fired generation would amount to 1.3 million tons a year, which equates to removing approximately 250,000 cars from the road.2 2019 Abeyance Rescinded 2017 Licensing Abeyance REDUCING THE COST OF ENERGY IN ALASKA | 10 PROJECT HISTORY Dam Height –705 feet Dam Elevation –2,065 Feet Reservoir Length –~42 miles Reservoir Width –~1.25 miles Installed Capacity –618 MW Annual Energy –2,800,000 MWh Cost –~$5.6 billion (2014$) PROJECT AT-A-GLANCE REDUCING THE COST OF ENERGY IN ALASKA | 12 ENGINEERING Size and generation optimized Design reviewed by International Board of Consultants Designed to withstand: 10,000-year flood Maximum credible earthquake of a magnitude 8.0 2014 Engineering Feasibility Report REDUCING THE COST OF ENERGY IN ALASKA | 13 Benefit-Cost and Economic Impact Analyses completed in 2015 Based on 2014 projection of natural gas prices: Benefit-cost ratio of 2.39 from energy savings alone $11.2 billion (2014$) in energy savings over first 50 years $4.7 billion (2014$) in capital and O&M costs over first 50 years ECONOMICS REDUCING THE COST OF ENERGY IN ALASKA | 14 32,308 Total Jobs 17,028 Direct jobs 15,280 Indirect jobs Pre-Construction Employment ~5,000 direct jobs ~3,870 indirect jobs Construction Employment ~12,000 direct jobs ~11,305 indirect jobs Operations Employment (Life of Project) ~24-28 direct jobs ~105 indirect jobs EMPLOYMENT OPPORTUNITITES REDUCING THE COST OF ENERGY IN ALASKA | 15 LICENSING STATUS Integrated Licensing Process 2/3 of the way done 58 FERC-approved studies: Implemented 2012-2017 19 studies completed 39 significant progress made Initial Study Report filed with FERC REDUCING THE COST OF ENERGY IN ALASKA | 16 REDUCING THE COST OF ENERGY IN ALASKA | 17 FERC STUDY PLAN DETERMINATION OUTCOME Confirmed adequacy of environmental studies Validated quality of work completed to date Rejected nearly all study modification requests Rejected requests for additional years of study Confirmed data gathered thus far is representative of baselines Rejected requests for additional studies Licensing activity currently in abeyance PROJECT TIMELINE REDUCING THE COST OF ENERGY IN ALASKA | 18 GOVERNOR AND LEGISLATURE DECIDE NEXT STEPS If greenlighted… Determine licensing status Update cost estimate to obtain license Update benefit-cost and economic impact analyses Review data to assure it remains reflective of current conditions Consult with FERC, landowners, and other stakeholders ADDENDUM SUSITNA-WATANA PROJECT ANIMATION REDUCING THE COST OF ENERGY IN ALASKA | ADDENDUM 02 813 W Northern Lights Blvd. Anchorage, AK 99503 Main: (907) 771-3000 Fax: (907) 771-3044 akenergyauthority.org Alaska Energy Authority AEA provides energy solutions to meet the unique needs and opportunities of Alaska’s rural and urban communities. DATE DESCRIPTION AUDIENCE LOCATION TEAM MEMBERFebruary 22, 2022 Legislative Hearing Senate Finance Budget Subcommittee Virtual Curtis W. ThayerFebruary 21, 2022 Legislative HearingSenate Labor and Commerce Committee - Renewable Portfolio Standards BillVirtual Curtis W. ThayerFebruary 18, 2022 Seward Infrastructure Projects City of Seward Seward, AK Curtis W. ThayerFebruary 15, 2022 Legislative Hearing House Energy Committee - House Bill 247: Power Cost Equalization Virtual Curtis W. ThayerFebruary 11, 2022 Presenter NASEO Regional IIJA Roundtable Washington, DC Curtis W. ThayerFebruary 9, 2022 Attendee Southeast Conference Mid-Session Conference Juneau, AK Tim SandstromFebruary 9, 2022 Legislative HearingSenate Finance Committee - Senate Bill 154: Capital Budget (Supplemental) Virtual Curtis W. ThayerFebruary 9, 2022 AEA Update Presentation Southeast Conference Mid-Session Conference Virtual Curtis W. ThayerFebruary 9, 2022AEA Dixon Overview PresentationMulti-Agency Partners Virtual Bryan CareyFebruary 9, 2022 Media Interview Summer Construction Forecast for Alaska Public Media Phone Tim SandstromFebruary 9, 2022 Speaker Alaska Forum on the Environment Virtual David LockardFebruary 8-11, 2022 Attendee NASEO Energy Policy Outlook Conference Washington, DC Curtis W. ThayerFebruary 7-8, 2022 AEA UpdateAlaska Congressional Delegation Meeting: Senator Murkowski, Senator Sullivan, and Congressman YoungWashington, DC Curtis W. ThayerFebruary 4, 2022 Legislative Hearing Senate Finance Committee Senate Bill 164 - Capital Budget Virtual Curtis W. ThayerFebruary 3, 2022 Legislative Hearing House Finance Committee - Infrastructure Investment and Jobs Act Virtual Curtis W. ThayerFebruary 2, 2022 AEA Update PresentationAlaska Power Association Legislative Conference Virtual Curtis W. ThayerFebruary 2, 2022 Legislative Hearing House Bill 283 and 285 Virtual Curtis W. ThayerFebruary 1-2, 2022 ModeratorAlaska Sustainable Energy Conference: Pre-Event Virtual Workshop Series - Nuclear Energy in AlaskaVirtual David LockardFebruary 1, 2022 Brief RemarksAlaska Sustainable Energy Conference: Pre-Event Virtual Workshop Series - Nuclear Energy in AlaskaVirtual Curtis W. ThayerAEA COMMUNITY OUTREACH ENGAGEMENTUpdated on February 16, 2022 (6-Month Look Back) 813 W Northern Lights Blvd, Anchorage, AK 99503 • Phone: (907) 771‐3000  Fax: (907) 771‐3044 • Email: info@akenergyauthority.org • Website: akenergyauthority.org DATE DESCRIPTION AUDIENCE LOCATION TEAM MEMBERJanuary 26, 2022 Attendee NASEO Regional Board Meeting VirtualCurtis W. ThayerJanuary 19, 2022 Attendee Anchorage C-PACE New Year ReceptionCowork by RSD Anchorage, AKCurtis W. ThayerT.W. PatchJanuary 20, 2022 Railbelt Meeting Berkshire Hathaway Energy/Utilities Virtual Curtis W. ThayerJanuary 19, 2022 Media InterviewInfrastructure Bill and Its Opportunities for Alaska for Alaska BusinessPhone Curtis W. ThayerJanuary 18, 2022 AEA EV Program Update Utilities Virtual Betsy McGregorJanuary 14, 2022 AEA Update Commissioner Corri Feige, Department of Natural Resources Phone Curtis W. ThayerJanuary 12, 2022 House Bill 223 Representative Kaufman Phone Curtis W. ThayerJanuary 11, 2022 AEA EV Program Update Department of TransportationAnchorage, AK Curtis W. ThayerJanuary 10, 2022 AEA Overview Denali Commission VirtualCurtis W. ThayerTim SandstromDecember 29, 2021 Media InquirySolar Energy Projects and REF for Arctic Sounder and Anchorage Daily NewsEmail Curtis W. ThayerDecember 16, 2021 AEA Owned-Assets Seward Electric Virtual Curtis W. ThayerDecember 14, 2021 AEA Overview McKinley Capital Management, LLC Virtual Curtis W. ThayerDecember 3, 2021 Media Inquiry Future State of Energy Policies for The Associated Press Email Curtis W. ThayerNovember 30, 2021 AEA Overview Sustainable Energy Class at UAF Bristol Bay Campus Virtual Taylor AsherNovember 18, 2021 AEA Overview Alaska Government Finance Officers AssociationHotel Captain Cook Anchorage, AKCurtis W. ThayerNovember 16, 2021 PCE OverviewAlaska Municipal League 71st Annual Local Government ConferenceHotel Captain Cook Anchorage, AKT.W. PatchNovember 15, 2021 AEA OverviewAlaska Municipal League 71st Annual Local Government ConferenceHotel Captain Cook Anchorage, AKTim SandstromNovember 11, 2021 Media Inquiry Electric Vehicles (EV) for Anchorage Daily News Email Curtis W. ThayerNovember 9, 2021AIDEA and AEA — Advancing Prosperity for AlaskansGreater Fairbanks Chamber of CommerceEvent Center & LoungeFairbanks, AKCurtis W. ThayerAlan WeitznerNovember 4, 2021 Media Inquiry EV Infrastructure for Anchorage Daily News Phone Curtis W. ThayerNovember 4, 2021 Media Inquiry Renewable Energy Projects for Alaska Economic Report Phone Curtis W. ThayerNovember 3, 2021 Media Inquiry Dixon Expansion Project for Petroleum News Phone Curtis W. ThayerNovember 2, 2021 Media Inquiry Renewable Energy for Alaska Economic Report Phone/Email Curtis W. ThayerOctober 27, 2021 Media Inquiry AEA Quote for FreeWire Technologies White Paper Email Curtis W. ThayerAEA Community Outreach EngagementPage 2 of 3 DATE DESCRIPTION AUDIENCE LOCATION TEAM MEMBEROctober 25-28, 2021 Presenter and Attendee 2021 Electrify Alaska! ConferenceThe Cordova Center Cordova, AKTaylor AsherConner EricksonOctober 19, 2021 Media Inquiry EV Supply and Use in Alaska for Alaska Business Email Curtis W. ThayerOctober 11-15, 2021 Attendee Regulatory Training for Public Utilities Albuquerque, New Mexico Curtis W. ThayerOctober 4, 2021 Media Inquiry EV Charger and Infrastructure for Alaska Economic Report Email Curtis W. ThayerSeptember 30, 2021 Media Inquiry Chugach's Financial Situation for Alaska Journal of Commerce Email Curtis W. ThayerSeptember 29, 2021 AEA OverviewEnvironmental Protection Agency Alaska Oil, Gas and Energy Sector Annual Extended Team MeetingVirtual Curtis W. ThayerSeptember 27, 2021 Attendee Kenai Tour with Governor Dunleavy Kenai, AK Curtis W. ThayerSeptember 24, 2021 Media Inquiry Homer EV Charger for Homer News Phone Curtis W. ThayerSeptember 24, 2021 Media Inquiry Homer EV Charger for Fairbanks Daily News-Miner Phone Curtis W. ThayerSeptember 24, 2021 Media Inquiry EV Charger and Infrastructure for Radio Kenai Phone Curtis W. ThayerSeptember 23, 2021 Media Inquiry Post-Ribbon Cutting EV Charger for Fairbanks Daily News-Miner Phone Curtis W. ThayerSeptember 23, 2021 HostEV Fast-Charger Ribbon Cutting at AJ's OldTown Steakhouse & TavernHomer, AKT.W. PatchBetsy McGregorSeptember 14-16, 2021 AEA Update Southeast Conference Annual Meeting Haines, AK Tim SandstromSeptember 14, 2021 Attendee NASEO Western Region Meeting to Discuss Infrastructure Bill Virtual Curtis W. ThayerAugust 26, 2021 Attendee Old Harbor Road Project Ribbon Cutting Old Harbor, AK Curtis W. ThayerAugust 20, 2021 Exhibit Booth Alaska State Fair: Energy DayState Fair GroundsPalmer, AKTaylor Asher, Brandy Dixon, Conner Erickson, Dan JohnstonAugust 17-20, 2021 Attendee Alaska Power Association 70th Annual MeetingLand’s End ResortHomer, AKCurtis W. ThayerAugust 15-16, 2021Alaska Hydroelectric Projects and ClimateNational Hydropower Association Regional MeetingThe Lakefront AnchorageAnchorage, AKBryan CareyAEA Community Outreach EngagementPage 3 of 3 States Outline Energy Challenges, Infrastructure Opportunities https://www.rtoinsider.com/articles/29577-states-energy-challenges-infrastructure-opportunities 1/7 States Outline Energy Challenges, Infrastructure Opportunities Jason Lanclos, Louisiana Department of Natural Resources | © RTO Insider LLC Feb 14, 2022 | Rich Heidorn Jr. WASHINGTON — Louisiana’s Jason Lanclos is both excited and anxious over the funding opportunities in the long-awaited Infrastructure Investment and Jobs Act (IIJA). “When you start looking at the sheer amount of data and programs and funding that’s in [the bill], it’s extremely intimidating,” said Lanclos, director of the Technology Assessment Division in the state’s Department of Natural Resources. “But I think that there are also a tremendous amount of opportunities.” For that reason, Lanclos said, he is grateful for his ability to compare experiences with other state energy officials, as he did during a panel discussion at the National Association of State States Outline Energy Challenges, Infrastructure Opportunities https://www.rtoinsider.com/articles/29577-states-energy-challenges-infrastructure-opportunities 2/7 Energy Officials’ (NASEO) Energy Policy Outlook conference Friday. “I think that that’s where you kind of have validated that, ‘Hey look, I'm not in this alone. There are other states who are facing the same things and having similar challenges.’” Lynn Retz, director of the Energy Division at the Kansas Corporation Commission, echoed Lanclos. “Don’t ever hesitate to tap into your neighbors, your co-workers or colleagues here, because I’m not [ashamed] to call someone, send an email, beg, borrow steal their stuff,” she said. “Adapt it to what works — it’s called being resourceful.” The discussion, which Lanclos moderated, identified states’ commonalities while also highlighting unique challenges faced by some, such as remote Alaskan communities and the islands of Hawaii. Hawaii: Six Independent Grids Scott Glenn, chief energy officer for the Hawaii State Energy Office, noted that his state has six standalone grids. “Each island has only the electricity produced on that island for its use and reliance. We don’t have any cables connecting the islands or cables or anything,” he said. “We’re kind of looking at this money as an opportunity to really change things,” he said. With about 60% of the state’s homes equipped with rooftop solar, the state was well on its way to building out its distributed generation before the infrastructure funding. Glenn would like to use some of the state’s funding to decarbonize the six- and nine-seat planes that residents use to get from one island to another. “The main part of their costs for flying between the islands is the takeoff and landing — it’s the jet fuel for that 20-minute flight,” he said. “And so, if we can electrify that, we can lower that cost dramatically.” One challenge: Hawaii’s smallest islands total only 7 MW of capacity. “They're not going to be able to charge a plane,” he said. Glenn cited the importance of stakeholder collaboration. “We're islands. We try to say, ‘You can’t throw people out of the canoe.’” He said his office will seek to dissuade multiple parties from proposing competing ideas for the same funding source, “so that we can leverage our limited opportunities to apply for things, and then also better coordinate local match availabilities.” Scott GlenScott Glenn, Hawaii State Energy Office | © RTO Insider LLC States Outline Energy Challenges, Infrastructure Opportunities https://www.rtoinsider.com/articles/29577-states-energy-challenges-infrastructure-opportunities 3/7 On the positive side, the state has only have four counties, making coordination more manageable. “We can get all four mayors together in the room [and ask] ‘What are you guys doing?’ So it’s digestible.” Alaska: Feeling Excluded Alaska found itself at the bottom half of the electric vehicle funding allocations announced by the U.S. Department of Transportation and Department of Energy Thursday. Its $7.8 million ranked 30th among the states, Puerto Rico and D.C. (See States to Get $615 Million for EV Charging from IIJA Funds.) “It’s nice to have electric charging for vehicles every 50 miles [as envisioned in the Federal Highway Administration’s guidelines for the EV infrastructure program],” said Curtis Thayer, executive director of the Alaska Energy Authority. “But if you don’t have any power for 100 miles, you’ve got a problem. And there’s no way of getting three-phase power in there when the transmission line is at least 20, 30 miles away.” Some 200 rural villages were excluded from funding “because there was complete exclusion for any of the rural villages … that are not part of the National Highway System,” he said. The state also is finding it difficult to obtain federal funding to shift from fossil fuels. “For us to introduce more renewables, we’re going to have to upgrade the transmission lines that we have. We have currently 138 [kV] serving a lot of Alaska; we want to upgrade to 230 [kV]. … But we’re a little too small for the project capacity of 500 MW. “We are too small for some of the funding available or too big for other money,” he said. Kansas: Messaging is Key Kansas’ Retz was thrilled to announce to her colleagues that her energy office within the state Corporation Commission recently doubled in size. “Most of you know I have been an office of one. Well, they just allowed me to hire one more person. So now I'm an office of two,” she said, prompting applause and laughter from the crowd at the Fairmont hotel in Georgetown. Curtis Thayer, Alaska Energy Authority | © RTO Insider LLC States Outline Energy Challenges, Infrastructure Opportunities https://www.rtoinsider.com/articles/29577-states-energy-challenges-infrastructure-opportunities 4/7 Retz said she will be focusing on reaching rural communities with programs such as small business energy audits and a program to benchmark the energy efficiency of K-12 school buildings. She’s also working to help add EV charging to Department of Wildlife and Parks’ facilities whose infrastructure has been neglected. Because her office is within the KCC, Retz said she is not permitted to “establish policy” but can “help facilitate” policy discussions. “So it is bringing all of these state stakeholders to the table and knowing who to recognize and make those introductions. Because what I’ve also found is I have people at Wildlife and Parks who wanted to talk about the infrastructure at the facilities that hadn’t reached out to our Department of Transportation. So part of my role is literally with those stakeholders figuring out who should be at the table to have those conversations and facilitating those conversations. And then making those introductions that cross other state lines as well. “You didn’t really want to talk about [EV charging] prior to this, just simply because of the political climate,” she said. “I have to be careful about the terminology that I use and how I message the programs that I’m going to move forward.” Using the federal funds and being able to do so quickly, is “going to be critical,” she added. “If I get some of it launched off early, others will have no clue what I’m doing, and I’m going to be too far down the road to do anything about it,” she said. Michigan: Flexibility Essential Robert Jackson, director of the energy office in the Michigan Department of Environment, Great Lakes, and Energy, said state officials are focused on meeting Gov. Gretchen Whitmer’s 2050 carbon neutrality goals while also making their programs as flexible as possible in case of a change in administration or program priorities. The state is creating workgroups to help guide efforts to win Energy Efficiency and Conservation Block Grants. Michigan still has energy efficiency programs from the American Recovery and Reinvestment Act (ARRA), but that funding, he said, was “prescriptive.” Lynn Retz, Kansas Corporation Commission | © RTO Insider LLC Robert Jackson, Michigan Department of Environment, Great Lakes and Energy | © RTO Insider LLC States Outline Energy Challenges, Infrastructure Opportunities https://www.rtoinsider.com/articles/29577-states-energy-challenges-infrastructure-opportunities 5/7 The state initially targeted its EE and renewable energy program toward small businesses, in response to the decline of the auto industry in the state. “We needed to provide these businesses with funding in order to change their focus … and to retool them to become more efficient,” he said. “But that money can only be used for that purpose now.” Lanclos agreed with Jackson’s recommendation for flexibility. He recalled an economic development roundtable he did in Louisiana with the Committee of 100 for Economic Development. “A lot of the conversation was on depoliticizing climate — in other words, trying to bring in plans that can survive [changes in] administrations." The state is considering whether hydrogen or carbon capture, utilization and storage (CCUS) can help decarbonize its industrial sector. “With us, our biggest challenge is with industry,” he added. “We have these high-intensity, high end-use industries that use a lot of power. And so working with them and trying to make sure that folks like that are at the table when you’re crafting these plans, is really, really important.” South Carolina: Office of Resilience Looks beyond Flooding Lanclos said the IIJA has forced state energy officials to work with agencies and organizations that “are a little bit out of our comfort zone, or that we don’t work with every day.” He cited opportunities to increase his office’s engagement with the Louisiana Public Service Commission on efforts considering offshore wind and hydrogen. South Carolina also is seeing greater interagency collaboration, said Sara Bazemore, director of the state energy office within the South Carolina Public Service Commission’s Office of Regulatory Staff. The state recently created an Office of Resilience in response to legislation that focused on threats from flooding. “It was a great effort with different agencies coming together and going, ‘Oh, we’ve already done a report on that. How about I summarize that?” she said. Although flooding was the initial legislative mandate the office is now taking a broader view to consider the resilience of critical energy facilities, said Bazemore. Pennsylvania: Looking to ‘Scale Out’ David Althoff Jr., director of the energy programs office in the Pennsylvania Department of Environmental Protection, said ARRA allowed the state to begin to “scale up” its renewables Sara Bazemore, South Carolina Office of Regulatory Staff | © RTO Insider LLC States Outline Energy Challenges, Infrastructure Opportunities https://www.rtoinsider.com/articles/29577-states-energy-challenges-infrastructure-opportunities 6/7 with funding for projects such as a 3-kW solar array at the Philadelphia Zoo. “Now we have like 15 GW of solar in the PJM queue. That’s scaling up. But scaling out, you know, is probably harder: How are we going to get this out to communities? Because that’s really where it needs to go, in my view.” In Pennsylvania, that means 67 counties and 2,700 municipalities — and the need for an “army” of clean energy workers, Althoff said. “This is a lot of money. You’re not going to be able to do it yourself,” he said. “… That $62.5 billion, that’s not all coming to state energy offices. Some of that’s going to our [departments of transportation]. Some of that’s going to community and economic development. Ultimately, I think we’re gap fillers … sort of like, you know, like batteries and bacon — it makes it all better.” “To some degree we’re on a ‘hearts and minds’ tour,” he continued. “The point is, is that where the battle will be won on clean energy? That is how people connect with it, you know — at their home, in their communities at their school.” Connecticut: ‘Well Positioned’ Vicki Hackett, deputy commissioner of energy in the Connecticut Department of Energy and Environmental Protection, said her state is “really well-positioned” to take advantage of the IIJA. “We’ve done a fair amount of planning and policy development,” she said. “And the needs that we’ve identified and begun to address are very much aligned with the act, so we have existing programs and some that are in late stages of development that we can leverage.” She noted that the state Public Utilities Regulatory Authority has opened several grid modernization dockets and said the state’s modeling indicates that energy storage “will play an increasingly significant role in ensuring the reliability of the grid and minimizing wasted generation as we continue to employ offshore wind in New England. “The existing transmission system needs to be upgraded and expanded to meet the regional energy capacity additions that are needed to achieve our goals and other states’ goals,” she David Althoff Jr., Pennsylvania Department of Environmental Protection | © RTO Insider LLC Vicki Hackett, of the Connecticut Department of Energy and Environmental Protection, spoke to the conference virtually. | © RTO Insider LLC States Outline Energy Challenges, Infrastructure Opportunities https://www.rtoinsider.com/articles/29577-states-energy-challenges-infrastructure-opportunities 7/7 said. “We’ve also identified retention of our nuclear facilities as a critical factor in reaching our decarbonization goals while maintaining reliability as load balancing technologies evolve.” President Biden, USDOT and USDOE Announce $5 Billion over Five Years for National EV Charging Network, Made Possible by Bipartisan Infrastructure Law https://highways.dot.gov/newsroom/president-biden-usdot-and-usdoe-announce-5-billion-over-five-years-national-ev-charging 1/4 President Biden, USDOT and USDOE Announce $5 Billion over Five Years for National EV Charging Network, Made Possible by Bipartisan Infrastructure Law Thursday, February 10, 2022 Joint Energy and Transportation Office and DriveElectric.gov Available to Assist States with Electric Vehicle Infrastructure Deployment Plans FHWA 05-22 Contact: FHWA.PressOffice@dot.gov Tel: (202) 366-0660 WASHINGTON, D.C. – The U.S. Departments of Transportation and Energy today announced nearly $5 billion that will be made available under the new National Electric Vehicle Infrastructure (NEVI) Formula Program established by President Biden’s Bipartisan Infrastructure Law, to build out a national electric vehicle charging network, an important step towards making electric vehicle (EV) charging accessible to all Americans. The program will provide nearly $5 billion over five years to help states create a network of EV charging stations along designated Alternative Fuel Corridors, particularly along the Interstate Highway System. The total amount available to states in Fiscal Year 2022 under the NEVI Formula Program is $615 million. States must submit an EV Infrastructure Deployment Plan before they can access these funds. A second, competitive grant program designed to further increase EV charging access in locations throughout the country, including in rural and underserved communities, will be announced later this year. “A century ago, America ushered in the modern automotive era; now America must lead the electric vehicle revolution,” said U.S. Transportation Secretary Pete Buttigieg. “The President’s Bipartisan Infrastructure Law will help us win the EV race by working President Biden, USDOT and USDOE Announce $5 Billion over Five Years for National EV Charging Network, Made Possible by Bipartisan Infrastructure Law https://highways.dot.gov/newsroom/president-biden-usdot-and-usdoe-announce-5-billion-over-five-years-national-ev-charging 2/4 with states, labor, and the private sector to deploy a historic nationwide charging network that will make EV charging accessible for more Americans.” “We are modernizing America’s national highway system for drivers in cities large and small, towns and rural communities, to take advantage of the benefits of driving electric,” said U.S. Secretary of Energy Jennifer M. Granholm. “The Bipartisan Infrastructure Law is helping states to make electric vehicle charging more accessible by building the necessary infrastructure for drivers across America to save money and go the distance, from coast-to-coast.” Today’s news follows President Biden’s announcement earlier this week on EV manufacturing, and the White House Fact Sheet on actions taken to date to prepare for this historic EV investment. To access these new Bipartisan Infrastructure Law funds – and to help ensure a convenient, reliable, affordable, and equitable charging experience for all users – each state is required to submit an EV Infrastructure Deployment Plan to the new Joint Office of Energy and Transportation that describes how the state intends to use its share of NEVI Formula Program funds consistent with Federal Highway Administration (FHWA) guidance. These plans are expected to build on Alternative Fuel Corridors that nearly every state has designated over the past six years of this program. These corridors will be the spine of the new national EV charging network. The Joint Office will play a key role in the implementation of the NEVI Formula Program by providing direct technical assistance and support to help states develop their plans before they are reviewed and approved by the Federal Highway Administration, which administers the funding. “Americans need to know that they can purchase an electric vehicle and find convenient charging stations when they are using Interstates and other major highways,” Deputy Federal Highway Administrator Stephanie Pollack said. “The new EV formula program will provide states with the resources they need to provide their residents with reliable access to an EV charging station as they travel.” The new Joint Office of Energy and Transportation also launched a new website this week at DriveElectric.gov. There, officials can find links to technical assistance, data and tools for states, and careers. To join the Joint Office and support a future where everyone can ride and drive electric, individuals are encouraged to apply to be an EV charging fellow. President Biden, USDOT and USDOE Announce $5 Billion over Five Years for National EV Charging Network, Made Possible by Bipartisan Infrastructure Law https://highways.dot.gov/newsroom/president-biden-usdot-and-usdoe-announce-5-billion-over-five-years-national-ev-charging 3/4 As part of today’s announcement, FHWA released the NEVI Formula Program funding to states that will be available following approval of state plans for Fiscal Year 2022 in addition to the Program Guidance and a Request for Nominations for states to expand their existing Alternative Fuel Corridors. Here is state-by-state NEVI funding for Fiscal Years 2022-2026. FY 2022 Funding* State National Electric Vehicle Formula Program Alabama 11,738,801 Alaska 7,758,240 Arizona 11,320,762 Arkansas 8,010,850 California 56,789,406 Colorado 8,368,277 Connecticut 7,771,342 Delaware 2,617,339 Dist. of Col. 2,468,807 Florida 29,315,442 Georgia 19,978,342 Hawaii 2,616,956 Idaho 4,425,511 Illinois 21,998,178 Indiana 14,743,125 Iowa 7,604,168 Kansas 5,847,059 Kentucky 10,280,470 Louisiana 10,859,512 Maine 2,856,158 Maryland 9,298,080 Massachusetts 9,397,238 Michigan 16,290,764 Minnesota 10,089,418 Mississippi 7,483,268 Missouri 14,647,722 Montana 6,348,350 President Biden, USDOT and USDOE Announce $5 Billion over Five Years for National EV Charging Network, Made Possible by Bipartisan Infrastructure Law https://highways.dot.gov/newsroom/president-biden-usdot-and-usdoe-announce-5-billion-over-five-years-national-ev-charging 4/4 Nebraska 4,472,243 Nevada 5,618,414 New Hampshire 2,556,450 New Jersey 15,448,790 New Mexico 5,681,977 New York 25,971,644 North Carolina 16,137,196 North Dakota 3,841,352 Ohio 20,739,853 Oklahoma 9,812,934 Oregon 7,733,679 Pennsylvania 25,386,631 Puerto Rico 2,020,490 Rhode Island 3,383,835 South Carolina 10,360,855 South Dakota 4,363,463 Tennessee 13,074,884 Texas 60,356,706 Utah 5,372,731 Vermont 3,140,247 Virginia 15,745,244 Washington 10,489,110 West Virginia 6,761,785 Wisconsin 11,642,061 Wyoming 3,963,841 Total 615,000,000 *Funds available pending approval of state plans. # # # EV advocates say rate changes could pave way for more chargers https://www.kdll.org/post/ev-advocates-say-rate-changes-could-pave-way-more-chargers#stream/0 1/4 EV advocates say rate changes could pave way for more chargers By SABINE POUX • FEB 9, 2022 The state needs more businesses to step up to host fast electric vehicle charging stations, part of a plan to create a 600-mile corridor of chargers between Homer and Fairbanks. But as it stands, hosting a charging station in Alaska is expensive. That’s why utilities are rethinking their rate structures, to make hosting more attractive and incentivize EV use around the state. Homer Electric Association and other Alaska utilities filed their plans with the state’s regulatory agency last month. The news excites EV advocates like Paul Clayton, of Homer. He travels between Homer and Anchorage a good deal for work but has to use his gas car in the absence of consistent fast chargers. An electric vehicle charging station at Homer Electric's Kenai office. CREDIT SABINE POUX/KDLL EV advocates say rate changes could pave way for more chargers https://www.kdll.org/post/ev-advocates-say-rate-changes-could-pave-way-more-chargers#stream/0 2/4 "I would upgrade to a new car, a new EV in a heartbeat, as soon as the public here gets those stations up and running," he said. The charging corridor plan is sponsored by the Alaska Energy Authority, a public corporation of the state. It’s paying some station installation and maintenance costs with money from a 2017 Volkswagen settlement. But the businesses that will land those chargers on their properties have t o pay for their own electricity. Fast chargers – which can charge EVs in under an hour – consume large amounts of energy. That’s why the Regulatory Commission of Alaska said utilities could create new rate designs to take high-demand charges out of the equation for now. Each utility has to propose its own rate structure to the commission. HEA's proposed rate change, filed with the commission in January, would bring costs for fast charger hosts in line with residential charging rates and could add between $1 and $2 to ratepayers’ annual bills. Michelle Wilber is part of the Alaska Electric Vehicle Working Group, which has been working on the EV corridor plan. She took a look at several filings and said utilities took different approaches to the problem. “There seemed to be two different choices of how to do this between different utilities," Wilber said. Those different approaches hinge on one part of the equation, called the load factor — "an assumption of the amount of time the station might be used," she said. EV advocates say rate changes could pave way for more chargers https://www.kdll.org/post/ev-advocates-say-rate-changes-could-pave-way-more-chargers#stream/0 3/4 HEA chose a load factor of 50 percent, and Chugach Electric – which covers Anchorage and part of the Kenai Peninsula – chose load factors close to 50 percent. J.D. Draves, HEA's manager of regulatory affairs and rate design, said the co- op knows chargers in its area won’t be used 50 percent of the time. But he said the 50 percent load factor makes electricity costs for hosts more affordable across the board. Someone who hosts a public station would pay about the same as someone who has a slow charger at home and pays a residential rate. The flipside is that HEA might lose money from the new rate structure, though that’s not a given, either. Most EV charging happens at home. And as more people buy EVs and charge them at their houses, HEA could actually add load to the grid, which could save ratepayers money in the long term. “We’re banking in the long run of getting that penetration, going up that curve faster," Draves said. "In the long run it will be a money saver for the cooperative member. So it’s kind of like an investment.” On the other side, Golden Valley Electric and Matanuska Electric – in the Interior – chose 5 percent as their load factors. Their rationale there, Wilber said, was the fast chargers probably won’t be used very much. “Considering that many EV owners, currently at least, have a place to charge at home and do most of their charging at home, that puts most of the fast charging that you do when you’re out in a special charging category," Wilber said. EV advocates say rate changes could pave way for more chargers https://www.kdll.org/post/ev-advocates-say-rate-changes-could-pave-way-more-chargers#stream/0 4/4 In a way, the utilities are all just taking shots in the dark. They don’t have much data yet on how EVs will be used in their areas. HEA said there are only about 50 EVs active in its service area today. EV advocates like Clayton, in Homer, hope the addition of new chargers will change that. "As a many-decade Alaskan, I’ve been waiting for this for a long time," he said. "I’m pretty excited about it.” The Regulatory Commission of Alaska is taking comments on the utilities’ proposals through the end of the month. You can find HEA's notice here. H B 3 0 1 : R e n e w a b l e P o r t f o l i o S t a n d a r d F A Q T h e O f f i c e o f G o v e r n o r M i k e D u n l e a v y What is a Renewable Portfolio Standard (RPS)? 20% renewable power by 2025 30% renewable power by 2030 55% renewable power by 2040 An RPS sets targets for the production of renewable technology. HB 301 contains the following targets: What is the purpose of an RPS in Alaska? HB 301 is designed to address the Railbelt’s dangerous reliance on a single source of energy that has increased in price by just short of 270% over the past 30 years and is expected to continue to rise over the next 20 years. In most of the world, including the Railbelt, renewable energy is now the cheapest form of power generation, and it continues to decline in price. By planning for the future, we can secure Alaska’s energy independence, reduce long-term energy costs, and promote a competitive energy market in Alaska. Is 80% renewable power by 2040 possible in the Railbelt? Yes. The National Renewable Energy Lab has found that the Railbelt can meet the 2040 target under a variety of scenarios ranging from the completion of a large hydroelectric project such as Susitna-Watana to scenarios that rely nearly entirely on wind and solar for additional capacity. Their report can be found here. Will an RPS decrease electricity costs? Yes. By 2040, NREL estimates a fuel savings in the Railbelt of up to $506 million each year. Given the decades-long trend of rising natural gas prices and the fact that renewable power is already cheaper than traditional generation in most of the world, the choice to increase our renewable usage in Alaska while continuing to boost oil and gas exports is obvious. While more research is underway to determine how long it will take for the initial capital costs of renewables to pay off, the end result of lower incremental costs is not in question. H B 3 0 1 : R e n e w a b l e P o r t f o l i o S t a n d a r d F A Q T h e O f f i c e o f G o v e r n o r M i k e D u n l e a v y Will an RPS force existing power plants to close, costing ratepayers more money? No. As NREL’s feasibility study has indicated, all existing thermal resources can be retired at the historical average of 60 years. The cost of these existing power plants is already factored into the rates Alaskans pay. As time goes on, costs may even decrease as renewable power is generated for less than the cost of fueling existing power plants. Additionally, the lifespan of existing plants may be extended due to less usage. It’s important to note that is not a 100% RPS, and natural gas will remain a part of the Railbelt’s energy equation for years to come. How does an RPS increase competition? The presence of an RPS de-risks investment from independent power producers by guaranteeing that there will be a marketplace for renewable power over the next 20 years. Transmission upgrades will also be needed to maximize competition. What’s the difference between an RPS and the previous voluntary target? The existing goal of 50% renewable power by 2025 is non-binding. An RPS requires concrete actions such as factoring the targets into the integrated resource planning process, annual reporting, and a compliance payment in the event of a second failure to meet a target goal unless there are mitigating factors. Does the RPS apply to each utility or to Railbelt as a whole? The target goals area Railbelt-wide. However, should the Railbelt fail to achieve a target goal, each utility’s compliance would be examined separately to ensure that utilities who met the target are not unfairly penalized. H B 3 0 1 : R e n e w a b l e P o r t f o l i o S t a n d a r d F A Q T h e O f f i c e o f G o v e r n o r M i k e D u n l e a v y What exemptions are available to ensure utilities are not unfairly penalized? HB 301 provides many waiver conditions and exemptions. These include an exemption for a utility’s first target miss, a two-year extension for the delivery of renewable power if a signed power purchase agreement is in place, and waivers for transmission capacity constraints, natural disasters and weather events, and other “good cause” reasons as determined by the RCA. Don’t we need to upgrade our transmission lines first? The Alaska Intertie, which runs from Willow to Healy, must be upgraded to meet the 80% renewable goal. Additional upgrades of the transmission system from the Kenai to Anchorage will also greatly benefit the system. The governor has committed to working with the utilities, the Legislature, and the Alaska Energy Authority to fund these upgrades throughout the life of the RPS. Does this signal a policy shift away from oil and gas? Absolutely not. The governor continues to strongly support the oil and gas industry and believes no one produces these resources in a cleaner manner than Alaska. The administration will continue to do everything in its power to increase our oil and gas exports and push back on the intrusion of the Biden administration. This RPS is specially intended to address long-term electricity costs and the Railbelt’s dangerous reliance on a single energy source. America’s coldest state has the 'hottest school bus on the market' https://www.accuweather.com/en/winter-weather/americas-coldest-state-has-the-hottest-school-bus-on-the-market/1129098 1/3 America’s coldest state has the 'hottest school bus on the market' By Adriana Navarro, AccuWeather staff writer Published Jan. 20, 2022 4:59 PM AKST | Updated Jan. 20, 2022 5:05 PM AKST Batteries and cold weather don't typically go together, but one transportation service is testing the limit. Tok Transportation operates buses for the Alaska Gateway School District and is co-owned by Gerald "Stretch" Blackard, who told AccuWeather National Reporter Emmy Victor that the company bought an electric school bus to test the machine out in the country's coldest state. "In general, batteries and cold weather don't go together. Any kind of batteries," Blackard said. "So I saw a bit of a challenge there. I wanted to take the plunge and see if it could work." America’s coldest state has the 'hottest school bus on the market' https://www.accuweather.com/en/winter-weather/americas-coldest-state-has-the-hottest-school-bus-on-the-market/1129098 2/3 The lowest temperature recorded in Alaska was 80 degrees below zero at Prospect Creek on Jan. 23, 1971. The high temperature that day was 64 degrees below zero. The lowest temperature recorded in Tok, Alaska, came close to the state's record low in 2009 when it reached 78 degrees below zero, according to NPR. Data from National Weather Service on Tok doesn't begin until 2010, and the lowest in the span of 2010 to 2022 was in December 2012 when the temperature dropped to 58 degrees below zero. Despite the bitter cold, Blackard told Victor that the electric bus has been able to trudge through temperatures that fall below zero. America’s coldest state has the 'hottest school bus on the market' https://www.accuweather.com/en/winter-weather/americas-coldest-state-has-the-hottest-school-bus-on-the-market/1129098 3/3 "I think the lowest recording I have is -48," Blackard said. "We've been lucky enough that the -50 and -60-degree days have been on weekends this year, so we haven't had to drive it in those colder conditions yet." He had first started looking into electric school buses back in 2018 and even went to a conference in Kansas City, where he was able to test drive one of them. Now, his company has one of their very own. The $400,000 bus built by Thomas Built Buses in North Carolina cost Blackard $50,000, the rest of the bill footed by a program administered by the Alaska Energy Authority, according to the Alaska Public Radio. The vehicle is charged via solar panels and is kept indoors to keep the battery warm when it doesn't have to brave the frigid weather. The solar-energy panels only generate half of the electricity needed to charge the bus's battery, however, meaning Tok Transportation needs to buy the rest from the local utility, he told Alaska Public Media in November 2021. He added that he was sharing the data he collected with the energy authority, Alaska Center for Energy and Power at the University of Alaska Fairbanks, the Silicon Valley-based battery manufacturer Protera and Thomas Built Buses. He also shares the data with nonprofits operated by Alaskans who are also enthusiastic about renewable energy. It's not all smooth driving, however. Blackard said his main concern was keeping the interior of the bus warm, as there's a lot of the interior to heat up. "Trying to keep that warm at the -30, -40, -50-degree level is a challenge, even on a diesel bus," he said. The school district location and mileage of the bus have also posed a challenge, as the nearest dealership is 200 miles away, according to Blackard. The bus can only go 135 miles before it needs to recharge. As for the kids who take the bus to school, Blackard said that while some could care less, it's brought smiles to the faces of others, "especially the ones who love cars." Reporting by AccuWeather National Reporter Emmy Victor.