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HomeMy WebLinkAbout2024-06-20 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 RGYAUTHORITY.ORG Alaska Energy Authority Board Meeting Thursday, June 20, 2024 8:30 AM AGENDA 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 – May 15, 2024 5. PUBLIC COMMENTS (2 minutes per person) see call in number above 6. NEW BUSINESS – 7. OLD BUSINESS – 8. DIRECTOR COMMENTS A. FY 2025 Budget B. IIJA Update i. IIJA Tracker ii. GRIP 3, Round 1 – HVDC Line update iii. Solar For All Update iv. Communities Taking Charge Accelerator (CTCA 3214-1810) Concept Paper v. Defense Community Infrastructure Program – White Paper C. Renewable Energy Grant Fund (REF) update D. Power Project Fund update E. Owned Assets update F. Legislative Update G. Community Outreach H. Articles of Interest I. Next Regularly Scheduled AEA Board - TBD 9. EXECUTIVE SESSION – Discuss confidential information related to Battery Energy Storage Systems and the HVDC Line. 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. Alaska Energy Authority Page 2 of 2 We will unmute callers individually in the order the calls were received. 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 Alaska Energy Authority BOARD MEETING MINUTES Wednesday, May 15, 2024 Anchorage, Alaska 1. CALL TO ORDER Chair Pruhs called the meeting of the Alaska Energy Authority to order on May 15, 2024, at 8:30 am. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice-Chair Bill Kendig (Public Member); Albert Fogle (Public Member); Julie Sande (Commissioner DCCED); Adam Crum (Commissioner DOR); Bill Vivlamore (Public Member); and Randy Eledge (Public Member). A quorum was established. 3. AGENDA APPROVAL MOTION: A motion was made by Vice-Chair Kendig to approve the agenda. Motion seconded by Mr. Fogle. The motion to approve the agenda passed without objection. 4. PRIOR MINUTES – April 17, 2024 MOTION: A motion was made by Vice-Chair Kendig to approve the prior minutes of April 17, 2024. Motion seconded by Mr. Fogle. The motion to approve the minutes of April 17, 2024 passed without objection. 5. PUBLIC COMMENTS (2 minutes per person) There were no public comments. 6. NEW BUSINESS A. YTD Financials (March 31) vs actuals Executive Director and Secretary-Treasurer Curtis Thayer discussed the Budget to Actuals as of March 31, 2024. The budget is on track. Mr. Thayer provided information regarding the Governor’s Amend pie chart shown in the packet. Alaska Energy Authority Page 2 of 10 Chair Pruhs asked if the remaining unspent funds are rolled back to the different agencies or if they are reallocated. Mr. Thayer gave the example that if the PCE Program has more funds drawn out than are actually needed, those funds are refunded back to the State, as reflected in the budget. Mr. Thayer indicated that some of the allocations will be spent down to zero. Mr. Fogle expressed appreciation to Mr. Thayer for keeping AEA both on budget and under-budget. He asked if any of the $2.4 million of budget surplus is available to be allocated to the rural power houses for maintenance and upgrades. Mr. Thayer explained that is not possible because the power of the corporation is with the Legislature and AEA has to spend the money based on the Legislature’s allocation. AEA does not have the budget authority to move funds to different functions. Mr. Thayer provided an update on the warehouse. Alaska Housing Finance Corporation (AHFC) is considering the purchase of the warehouse. Permission must be given by the Legislature for AHFC to purchase the warehouse. It is possible that AEA could negotiate a long-term arrangement to move into that warehouse space. Mr. Eledge requested an overview of the budget allocation of the remaining budgeted amount. Mr. Thayer discussed that the allocation is shown on page five, and includes items such as AEA facility assets, federal receipt authority, rural assistance, the PPF loan fund, and CIP receipts. Mr. Thayer requested Pam Ellis, AEA, provide additional information. Ms. Ellis explained that the general administrative costs are shared among all programs, including the cost that the State charges AEA for their shared services. Chair Pruhs asked if any of the remaining budget funds could be used for emergency responses to generator issues in rural Alaska in the winter. Mr. Thayer indicated the remaining funds cannot be used for emergency responses because the Legislature defines the allotted amount for electrical emergencies. Mr. Thayer discussed that AEA will request an increase next year in the amount of funding for electrical emergencies. The current budgeted amount is $200,000, yet the electrical emergencies have cost up to $350,000. Chair Pruhs asked for the source of the extra $150,000 of funding. Mr. Thayer explained that there is also emergency funding through Alaska Department of Military and Veterans Affairs (DMVA). Mr. Thayer noted recent conversations with DMVA regarding the differences between an emergency versus poor maintenance that leads to an emergency. Chair Pruhs asked if his understanding is correct that the Legislature provides the budgeted amounts and AEA cannot overspend the line items. Mr. Thayer agreed. He explained that depending on the type of emergency, there are other sources that can be adjusted and utilized. The Governor does not necessarily have to declare an emergency for emergency funds to be distributed. Mr. Vivlamore commented that the majority of the budget surplus is within the category of AEA Staff and Professional Services. He asked what percentage of the surplus is comprised of staffing vacancies. Mr. Thayer discussed that there are a handful of vacant positions, as well as vacant Alaska Energy Authority Page 3 of 10 positions related to the Infrastructure Investment and Jobs Act (IIJA) funding, and vacant positions due to the limited amount of space. He explained that the building has space for four additional staff members, and there are potentially 20 new staff member positions. The IIJA positions will not be staffed until the grant agreements are signed and the funding is received, which could be within six months to a year. Mr. Thayer explained that discussions need to occur regarding the best way to address the issue that will eventually be presented in the FY26 budget cycle. Additional options to expand the workspace include sharing offices, whereupon each person works remotely for part of the week and comes to the office the other part of the week. Mr. Thayer noted there are current employees who maintain telework agreements. There were no other questions. 7. OLD BUSINESS A. IIJA-IRA Funding Opportunities MEMO Revised Mr. Thayer discussed the included revised memorandum regarding his recommendation that the AEA Board shall review and approve by resolution all IIJA and IRA award agreement terms and conditions that exceed $10 million. There is currently no policy as such for Board approval. Presently, there are four agreements greater than $10 million that are expected within the next six to eight months and an additional four outstanding applications greater than $10 million whose determinations are due late this summer. Mr. Thayer noted that staff will continue to provide the Board with weekly status updates of any potential IIJA and IRA award applications. He discussed that the funding opportunities are decreasing as a result of the upcoming election and Congress’ focus on current funding and current projects. Mr. Thayer reminded the Board that after the Board’s approval, all federal awards require federal receipt authority by OMB, the Legislature, and the Governor. Chair Pruhs suggested that the memorandum and recommendation discussion continue at a later point, possibly during executive session. There were no other comments or questions. 8. DIRECTORS COMMENTS A. Response to Public Testimony Mr. Thayer indicated that the public testimony of Ben Hopkins and the response to Mr. Hopkins’ public testimony is included in the Board packet. Chair Pruhs requested that the response discussion be conducted for the record. Mr. Thayer invited Tim Sandstrom, Chief Procurement Officer, to provide additional information. Mr. Sandstrom discussed that Mr. Hopkins gave public testimony at the previous Board meeting and has submitted prior requests for information regarding the exchange of engines during an electrical emergency in Mertarvik. This was a not a state of emergency declaration, rather it was a situation whereby rolling brown-outs were occurring. The community’s private contractor’s genset replacement was several weeks away from delivery, and AEA had a competitively procured genset in stock for emergency responses. AEA made the decision to transfer that genset to the community and the contractor then replaced AEA’s generator with the backordered generator. Alaska Energy Authority Page 4 of 10 Vice-Chair Kendig noted that the public testimony objection was that this transaction was outside of AEA’s statutes and regulations. He commented that staff’s review concluded that AEA’s actions were within its statutes and regulations. Mr. Sandstrom agreed, and informed that AEA regularly transfers or grants assets to communities at no cost. In this instance, AEA was able to secure a replacement engine from the contractor. Vice-Chair Kendig commented that it is possible the confusion began with Mr. Hopkin’s incorrect citation of AIDEA’s procurement code rather than AEA’s procurement code. Mr. Sandstrom explained that is a small error, as AIDEA’s procurement code and AEA’s procurement code are very similar. The main point is that there was no procurement for the transfer of the generator to the community. The competitive procurement occurred when the original emergency genset was purchased. Chair Pruhs commented that the perception issue is with AEA’s act of receiving a genset from a private party, rather than going out for the generator replacement through the vendors in Alaska. Chair Pruhs noted that Mr. Hopkins is one of the generator vendors in Alaska. Additionally, Chair Pruhs indicated that criticism could be given that the generator AEA gave to the community is more valuable than the generator AEA received in return. Mr. Sandstrom explained that the two generators are materially the same. They are the same size with the same capacity. However, the replacement generator is not new and has low hours. Mr. Sandstrom emphasized that the usual course is for AEA to transfer the generator to the community. In this case, AEA was offered a replacement generator and AEA took the replacement. Mr. Sandstrom believes Mr. Hopkins’ concerns are founded and an explanation was needed. Chair Pruhs believes the issue is with perception and that the community, rather than the contractor, should have given the generator to AEA. Vice-Chair Kendig expressed the importance of providing the public response to clarify any misconceptions or misunderstandings. Mr. Eledge expressed appreciation for the response. He agreed that public perception is important and that the response to public perception must be precise. There were no other comments or questions. B. IIJA Update i. IIJA Tracker Mr. Thayer discussed the included IIJA/IRA Funding Opportunities tracker sheet. All items listed are in the current budget. The items have been submitted by the Office of Management and Budget (OMB) and the Governor’s Office to receive the federal receipt authority. Mr. Thayer identified that the $20 million in federal receipt authority for the Solar for All program is enough to begin the program. The full amount of the program is $62 million. The remainder of the award will receive federal receipt authority after the first year. Vice-Chair Kendig requested explanation regarding the definitions of the status column, Alaska Energy Authority Page 5 of 10 particularly “Pending” status and “Considering” status. Mr. Thayer explained that pending status relate to applications that are outstanding. Their determinations and outcome have yet to be released. The considering status relates to programs that are being reviewed, but no applications have been submitted. There were no other questions. ii. GRIP 3, Round 1 – HVDC Line Mr. Thayer informed that the binder has been updated for the Board members, which includes the status update and the revised statement of project objectives. Jim Mendenhall, Program Manager, was introduced and was asked to comment on the process. Mr. Mendenhall discussed that ongoing work continues to focus on the development of the community benefit plans for the IIJA projects. The State has provided $20 million from Bradley bonds and another $12.7 million from State funds toward the $206 million match. Mr. Mendenhall explained that Department of Energy (DOE) recognizes that an award needs to be made prior to the end of the fiscal year. The approximate spend within the first year of budget period one is about $14 million. Mr. Mendenhall discussed that DOE’s intent is to provide a project award for the first-round funding amount of $14 million. Chair Pruhs inquired as to a risk analysis of the possibility of the $206 million match to disappear. Mr. Thayer explained that the $206 million match is in the bank and is set aside for the project. It would take an act of Commerce to claw back the funding. Mr. Mendenhall noted that a sample set of terms and conditions have been received and are included in the Board packet. The hope is to have the formal terms and conditions for the contracts by next month’s meeting. Another concern for review and discussion within the terms and conditions is understanding the State’s ability to claw back funds in the event the project is not finished. The focus for the initial funding of $14 million is on system studies, design, permitting, and project site issues. AEA is conducting strategic plan analysis of the Railbelt transmission. Mr. Mendenhall highlighted recent activities by staff and discussed the weekly meetings with DOE. Mr. Eledge asked Mr. Mendenhall how many additional personnel members will be necessary for this project. Mr. Mendenhall discussed that there will be approximately 12 new positions for IIJA within the next year. The positions will be filled after State authority is provided and the award is granted. Mr. Eledge inquired if any difficulty is anticipated in sourcing qualified individuals to fill those roles. Mr. Mendenhall agreed. Mr. Eledge commented that the schedule may be impacted if the roles cannot be filled. Mr. Thayer discussed that staffing will be a challenge because of the increased amount of economic development of three major projects occurring within the next 18 months. Chair Pruhs inquired as to the possibility of hiring a third-party to handle one or more of the projects completely, including staffing and contractors. Mr. Thayer indicated that is a possibility and it is similar to the process that was conducted for the Battle Creek Diversion project. Chair Pruhs reiterated to Mr. Thayer that the Board is available to assist in any way possible. Mr. Thayer agreed and expressed appreciation. There were no other questions. Alaska Energy Authority Page 6 of 10 iii. Solar for All Grant Mr. Thayer noted that a binder for Solar for All grant has been created. The draft of the grant agreement has not yet been received. The request is to have the completed grant agreement by September 1, 2024. Mr. Thayer outlined the process of creating the memorandum, obtaining the legal opinion on the awards, and the Board making the decision and passing the resolution on the grant agreement. Vice-Chair Kendig asked if the Solar for All grant applicants will apply through Alaska Housing Finance Corporation (AHFC) or through AEA. Mr. Thayer explained that the low-income residential solar program will be processed by AHFC and the community solar program for disadvantaged communities, primarily in rural Alaska, will be processed by AEA. The community solar program will not replace diesel, but it will displace it for certain times of the year. The application structure will be similar to the Renewable Energy Fund (REF) in which a community applies, and an analysis is conducted based on certain criteria. There were no other questions. iv. MARAD Port Infrastructure Development Program Grant Mr. Thayer advised that AEA has been in discussion with Department of Transportation (DOT) regarding applying for a grant through the Maritime Administration (MARAD) Port Infrastructure Development Program (PIDP) for barge landing improvements at Scammon Bay, Hooper Bay, and Chevak. The total amount of this grant application is less than $10 million and would not come before the Board for ultimate approval. Mr. Eledge asked if the improvement to the barge landings includes electric power. Mr. Thayer introduced the writer of the grant, Rebecca Garrett, AEA. Ms. Garrett discussed that the application is for barge landing and fuel headers for bulk fuel tank farms. The application does not include power electrification. Chair Pruhs asked if electric power could be included in the application so that the tugs and landing crafts at the landings can plug in, rather than burning diesel during their entire stay. This would improve the air quality for the community. Ms. Garrett commented that is a good suggestion for a different application. This particular application is specific to the planning partnership with DOT for the barge landings. There were no other questions. C. Rural emergencies – Communities with minimal generation Mr. Thayer indicated that further discussion regarding the provided AEA Watch List of the 15 communities in rural Alaska with minimal generation needs to occur with the Legislature so that they understand the immediate concerns. None of the IIJA and IRA federal funds addresses powerhouses or bulk fuel because of the use of fossil fuels. The minimum generation issues will be addressed through State funding and the partnerships with the Denali Commission. The list provided is in alphabetical order by community. Chair Pruhs requested that the list include an approximate dollar amount or economic impact to Alaska Energy Authority Page 7 of 10 repair the generation issues per community. Mr. Thayer agreed. He indicated that most of the repairs per community are in the range of $4 million to $6 million. Mr. Fogle requested staff reorganize the list of communities by order of the most critical circumstances to the least critical of circumstances so that the top listed communities are identified as ones who could face an emergency the soonest. Mr. Thayer indicated that possibility can be discussed further. There is a list shared with the Legislature of the top 25 communities, which is in rank order of critical circumstances. This AEA watch list is specific to communities with minimal generation. Mr. Eledge commented that the description for the community of Manokotak indicates that repairs were expected to be completed in April. He asked if those repairs were completed. Ms. Garrett responded that the repairs to the cooling system in Manokotak have been completed. The community is maintaining the emergency generator. The emergency generator will be returned to AEA when their Rural Power System Upgrade (RPSU) project is complete. Mr. Eledge asked who pays the transportation costs to return the generator to AEA. Ms. Garrett responded that it depends on the community’s finances. AEA entreats the communities to pay for as much of the costs as possible. Chair Pruhs commented on the importance that this information is available and provided to the Legislature. He believes that the communities should be advocating to their legislators to appropriate sufficient funds to respond. Ultimately, AEA must react to emergencies. He expressed his concern of the Legislature’s possible inaction to provide sufficient funds for AEA to react to emergencies, and the subsequent possibility that AEA would be unduly blamed for not reacting, even though the Legislature has not provided funding. Mr. Thayer agreed. There were no other questions. D. Renewables Update Mr. Thayer discussed the included quarterly report regards the Renewable Energy and Energy efficiency (REEE) Program update. It includes biomass, electric vehicles, hydroelectric, solar, wind, and others. He noted that Audrey Alstrom, AEA, is available to answer any questions from Board members. There were no questions. E. Denali Commission Update Mr. Thayer reviewed the update on the Denali Commission (DC) awards. Total funding for active DC awards is $47 million. Chair Pruhs inquired as to the leadership status of the Denali Commission. Mr. Thayer indicated there is currently an Acting Director who can sign on behalf of Denali Commission. Mr. Eledge asked if the Award No. 01515-10 Circuit Rider Program with funding of $1.4 million in 2017 is equivalent to approximately $200,000 per year for the program. Mr. Thayer agreed. Mr. Eledge asked if there is also $200,000 in the State budget for the Circuit Rider Program. Mr. Thayer Alaska Energy Authority Page 8 of 10 agreed there is funding through various projects within the State budget for the Circuit Rider Program. There is not a single designated funding line item for the Circuit Rider Program. He noted that the DC is reducing the amount of funding to the Circuit Rider Program and additional discussions need to occur with the Legislature to increase and offset those reductions from DC. There were no other questions. F. AEA Library Update Mr. Thayer provided the update on AEA’s digital library. Currently, the library is host to over 10,000 searchable documents. Mr. Eledge asked what the anticipated percentage completion is on existing documents. Mr. Thayer asked Connor Erickson, Director of Planning, to respond. Mr. Erickson believes approximately 80% of the hard copies have been uploaded and another 4,000 documents remain to be uploaded. Some of the documents are historical information and date back to the 1950’s. There were no other questions. G. Legislative Update Mr. Thayer discussed that the budget is being proposed in the Legislature. An additional $19 million has been included for AEA, of which $10 million will go toward dock electrification. Last year, AEA received $5 million for a dock electrification project in Whittier. That project began and is going well. The project is partnered with Holland America, Princess, and Chugach Electric Association (CEA). The Legislature is requesting a similar program for Southeast Alaska. The funding would be garnered from cruise ship passenger head taxes. Mr. Thayer advised that the Governor included a placeholder of $5 million in the budget for the REF program and the Legislature has increased that amount to $14.5 million. The original request was for $33 million, which would have funded all the previous year’s applications. Mr. Thayer gave an overview of the Governor’s bills, Senate Bill (SB) 217 and House Bill (HB) 307, entitled Integrated Transmission Systems, that focus on leveling the independent power producers (IPP) property tax, similar to the benefits afforded to electric co-ops, and eliminating the wheeling rates. Additionally, SB 257, entitled Electric Utility Regulations, was introduced by Senate Resources. This bill includes reviews such as qualifications for the Regulatory Commission of Alaska (RCA), salaries for the RCA, and the Governor’s administrative order (AO) for the separation of the AIDEA and AEA Boards, with one addition that the new AEA Board would be comprised of eight members, rather that seven, six of whom would be public members. A quorum of five members would be required, and term limits for Chair and Vice-Chair would be imposed. Mr. Thayer informed that the House version of the bill passed and was sent to the Senate for concurrence today before midnight. It includes a provision that bans the import of natural gas. Mr. Thayer indicated that he is currently on-call to answer any questions the Senate may have. Mr. Eledge asked if SB 252 includes the transfer of some of AEA’s assets. Mr. Thayer discussed that is related to a Railbelt Transmission Organization (RTO). In the current version of the bill, the RTO would be housed in AEA, and AEA would be responsible for filing a united tariff to assist in the elimination of the wheeling rates. There is not a financial impact to AEA. Alaska Energy Authority Page 9 of 10 Mr. Thayer continued the discussion and reviewed that the original bonding in 2022 for $166 million was divided into $20 million for the GRIP funding, $90 million for the SQ upgrade, and the remainder of approximately $58 million for the battery energy storage systems (BESS). CEA and Matanuska Electric Association (MEA) are inquiring as to how the $58 million should be applied to the utilities. Mr. Thayer discussed the possibility of distribution based on the pro-rata share and tax credits that could be utilized. Staff will continue to discuss these issues with the Board to determine a final solution. Additionally, a portion of the $58 million could be used for the GRIP match for the Anchorage and Fairbanks batteries. Mr. Eledge commented on the excellent presentation included in the packet to the Senate Finance Committee on April 30, 2024. He asked if a net kW increase has been identified on the delivery of power from Kenai to Beluga. Mr. Thayer indicated that analysis will be conducted once the funding is received. Mr. Eledge believes the information would be valuable to include in the presentation. There were no other questions. H. Community Outreach Mr. Thayer reported that AEA’s community outreach has increased recently. I. Articles of Interest Mr. Thayer commented on the 68 pages of articles of interest included in the packet. J. Next Regularly Schedule AEA Board Meeting Thursday, June 20, 2024 Mr. Thayer noted that the next regularly scheduled AEA Board meeting is on June 20, 2024. Chair Pruhs advised that Commissioner Sande requested to make a few comments. Commissioner Sande acknowledged the monumental year for AEA and recognized Mr. Thayer for 10 years of service to the State of Alaska. She expressed appreciation to Mr. Thayer for his dedication, guidance, and leadership. Chair Pruhs expressed appreciation to Mr. Thayer and reminded him that the Board is willing and available to advocate for AEA in any way the staff believes will be successful. Mr. Thayer complimented the dynamic staff, and is thankful for being able to lead and empower the staff to make decisions to move forward. He noted there has been very little turnover among the management staff in the last five years. Mr. Thayer expressed appreciation to the staff, the Board, the Commissioner’s office, and the Governor for providing him the necessary support. There were no other comments or questions. MOTION: A motion was made by Vice-Chair Kendig to enter into executive session to discuss confidential personnel issues and the IIJA and IRA funding opportunities and Board approval. 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 personnel issues and the IIJA and IRA funding opportunities and Board approval are Alaska Energy Authority Page 10 of 10 protected by law, due to the rules protecting personal privacy and certain business information. Motion seconded by Mr. Fogle. Chair Pruhs requested Karen Turner, AEA, attend the executive session. A roll call was taken, and the motion to go into executive session passed unanimously. 9. EXECUTIVE SESSION: 9:58 a.m. – Discuss confidential personnel matters and the IIJA and IRA funding opportunities and Board approval. The Board reconvened its regular meeting at 11:10 am. Chair Pruhs advised that the Board did not take any formal action on matters discussed while in Executive Session. 10. BOARD COMMENTS Commissioner Crum expressed appreciation for the updates. He commented that the legislative session has been long and more information regarding the future of AEA is forthcoming. He thanked the AEA staff and Board members. Commissioner Crum shared a personal announcement regarding the birth of his daughter four days ago. Members expressed congratulations. Chair Pruhs thanked Jennifer Bertolini, Mr. Thayer, staff, and Board members for today’s efficient meeting. 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 11:11 am. _____________________________________________ Curtis W. Thayer, Secretary FY24 58,120,700$ FY25 Gov Amend 63,474,200$ Federal State Other Total FY23 41,024,363$ 38,583,158$ 400,000$ 80,007,521$ FY24 143,715,793$ 49,568,579$ 193,284,372$ FY25 (Gov Amend) & FY24 Supp 284,676,588$ 25,596,279$ 329,583,025$ SSQ Upgrades HVDC GRIP BESS Total FY25 90,000,000$ 20,000,000$ 56,000,000$ 166,000,000$ Alaska Energy Authority Operating Budget 2YR Comparison Alaska Energy Authority - Capital Budget 3YR Comparison Alaska Energy Authority - Transmission/BESS Bonds ALASKA ENERGY AUTHORITY OPERATING AND CAPITAL BUDGET AEA Receipts, $1,199 , 8% FED Receipts, $1,209 , 8% DGF, $50 , 0% I/A Receipts, $124 , 1% CIP Receipts, $8,310 , 54% PPF, $996 , 6% SDPR, $150 , 1% PCE, $616 , 4% Renew Energy Fund, $1,401 , 9% UGF, $1,369 , 9% Alaska Energy Authority FY25 GOV Amended Operating Budget $15,424,400 *PCE $48,049.8 not included ALASKA ENERGY AUTHORITY FY2025 OPERATING BUDGET Alaska Energy Authority - Budget Components FY25 Base Budget FY25 GOV Amd FY25 Operating Total AEA Facilities Personal Services - - - Travel 22.5 - 22.5 Contractual 745.8 407.7 1,153.5 Supplies 8.0 - 8.0 Equipment 5.0 10.0 15.0 Total 781.3 417.7 1,199.0 417.7 167.7 OA Staffing 250.0 AEA Rec Adj AEA Rural Energy Assistance Personal Services - - - Travel 149.3 - 149.3 Contractual 6,496.5 1,333.4 7,829.9 Supplies 98.0 - 98.0 Equipment 10.0 70.0 80.0 Grants 100.0 - 100.0 Total 6,853.8 1,403.4 8,257.2 1403.4 1249.5 IIJA Staffing 153.9 Sal Adj UGF AEA PCE Personal Services - - - Travel 2.2 - 2.2 Contractual 586.7 - 586.7 Supplies - - - Equipment - - - Grants 47,694.8 - 47,694.8 Total 48,283.7 - 48,283.7 AEA Statewide Project, AEE Personal Services - - - Travel 22.1 50.0 72.1 Contractual 2,179.8 3,362.4 5,542.2 Supplies - 120.0 120.0 Equipment - - - Grants - - - Total 2,201.9 3,532.4 5,734.3 3532.4 2932.4 CIP Adj for GRIP 350.0 CIP Adj for IIJA 250.0 Data Library and CIP Adj GRAND TOTAL 58,120.7 5,353.5 63,474.2 4. AEEE CIP Increment Alignment: 350k for anticipated Contractual Services related to the increase in capital project expenditures. 5. Data Library: 200k in Contractual Services for continued funding of administration, hosting, expansion, and digitization services. 6. Travel Increment: 50k for anticipated expenditures in travel and new IIJA anticipated travel. 7. GRIP,12 new positions for Grid Resilience and Innovation Partnership for $2,812.4 and $120 in commodities per new position. Budget Request Descriptions 1. Owned Facilities Staff Support: 157.7k Contractual Services 10k Equipment. 3. Infrastructure Investment and Jobs Act (IIJA) Staff Support FY25-29: 1,179.5k in Contractual Services for 2 PMs, 1 Sr Contracting Off, 1 Grant Acct, 1 Acct Tech, 1 Engagement & Communications Spc, and 1 Admin Asst;70k in Equipment (10k per new position). 2. Owned Facilities True-up: 250k in Contractual Services is needed to cover the increased costs and resources to support Owned Assets (Bradley Lake and AK Intertie projects) with the Bradley Lake Hydroelectric Required Project Work, including Railbelt Transmission Line and Battery Energy Storage Systems. IIJA, $260,193,167 Dixon Diversion, $1,379,700 Bulk Fuel, $13,000,000 Electrical Emergency Response , $200,000 Renewable Energy Grant Fund Program, $14,310,158 Defense Community Infrastructure Pilot Program, $3,000,000 Port Electrification, $10,000,000 Rural Power Systems Upgrades , $27,500,000 Alaska Energy Authority FY25 Gov Amended & FY24 Supp Capital Budget - $329,583,025 ALASKA ENERGY AUTHORITY Capital Budget- FY20255/29/24 3:21 PM Project Name Federal Receipt Authority (Adjourn) State Funding (Adjourn) Total Fund Code Grid Resilience and Innovation Partnership Topic 3 - Railbelt Utilities $ 206,500,000 $ 12,700,000 $ 219,200,000 1002 - Fed Receipts /1003 G/F Match IIJA Efficiency Revolving Loan Fund Capitalization - Formula FY2025 $ 252,700 $ - $ 252,700 1002 - Fed Receipts IIJA - Statewide Grid Resilience and Reliability $ 17,627,018 $ 1,816,579 $ 19,443,597 1002 - Fed Receipts / 1003 G/F Match IRA Sec. 60103: Green House Gas Reduction Fund (Solar for All) $ 20,000,000 $ - $ 20,000,000 1002 Fed Receipts IRA Sec. 50123: State Based Energy Efficiency Contractor $ 1,296,870 $ - $ 1,296,870 1002 Fed Receipts Total IIJA/IRA/GRIP Capital Requests: $ 245,676,588 $ 14,516,579 $ 260,193,167 Reapprop Alaska-British Colombia Intertie to Dixon Diversion - Bradley Lake Hydro Power $ - $ 1,379,700 $ 1,379,700 1012 - Railbelt energy Fund UGF Bulk Fuel Upgrades (state dollars are matching funds) $ 11,000,000 $ 2,000,000 $ 13,000,000 1002 - Fed Receipts / 1003 G/F Match Electrical Emergency Response $ - $ 200,000 $ 200,000 1004 - General Fund Port Electrification $ 10,000,000 $ 10,000,000 1166 Vessel Com (Other) Renewable Energy Grant Fund - Round 16 $ - $ 14,310,158 $ 14,310,158 1004 - UGF Rural Power Systems Upgrades (state dollars are matching funds) $ 25,000,000 $ 2,500,000 $ 27,500,000 1002 - Fed Receipts /1003 G/F Match Total $ 281,676,588 $ 34,906,437 $ 326,583,025 FY2024 Supplemental - Request Project Name Federal Receipt Authority (Adjourn) Federal Receipt Authority (Adjourn) Total Fund Code Defense Community Infrastructure Pilot Program - Black Rapids Training Site $ 3,000,000 $ - $ 3,000,000 1002 Fed Receipts Total $ 3,000,000 $ -$ 3,000,000 Electric utility systems are part of the basic infrastructure of rural communities. New power systems are designed to meet accepted utility standards for safety, reliability, and environmental protections. Brief Summary Extension of an electric power line to the Black Rapids Training Site. AEA partnership with GVEA. No state match is required. GVEA has committed funds to complete the project. AEA has been selected for a $206.5 million grant from the DOE for a Railbelt Innovative Resiliency Project. A 100% cost share of $206.5 million is required. AEA, the Railbelt utilities, and the RCA are partners in this project as collaborative decision makers representing all primary transmission owners and operators of the Railbelt. A once-in-a-generation opportunity to build resiliency and develop a fuel-diverse, low-carbon economy, by investing in essential electric infrastructure. $20M for Bradley Lake required project work funded by $166M of bonds. GOV Orig request was $206,500,000 Fed and $10,405,900 state match, reappropriation for $2,294,100 from Trans-Line Plan and Ext. Intertie. Additional request of $252,700 for Federal Receipt Authority necessary to fully fund the project under the SEP program requirements to begin using capitalization grant not more than 180 days after the date on which the grant is received. Request for fund capitalization to REF program for Round 16 of REF projects. GOV Orig request was for $5,000,000, House Finance added another $9,310,158, funding 7 projects. FY25 Capital Budget - Request Brief Summary IIJA - Section 40101 (d) - formula grant program to strengthen and modernize America's power grid against wildfire, extreme weather, and other natural disasters. Improve resilience of the electric grid against disruptive events. Funding over five years to total over $60M. GOV Orig request was $12,110,523 Fed and $1,816,579 State match, an additional $5,516,495 Fed grant awarded. IIJA - AEA selected for for an award, pending negotiations. This project will enable AEA and AHFC to develop programs and deploy rooftop solar panels and community solar arrays to benefit low-income households and disadvantaged communities. Funding for this program may also be used for storage and building upgrades necessary to deploy and maximize the benefits of solar infrastructure that will serve up to 10,000 households in the State of Alaska. Training for energy audits of commercial and residential buildings. AEA will RSA with AHFC. Bulk fuel tank farm upgrades. Replaces aging tanks that may be leaking. Adds capacity to meet community needs. Meets code compliance standards improving life, health, and safety of community. Critical to rural communities - provides technical support when an electrical utility has lost, or will lose the ability to generate or transmit power. AS42.45.900 Request is to support cruise ship dock electrification projects. The port electrification projects aim to allow cruise ships to receive shoreside power from local Alaskan utilities and to replace traditional onboard diesel- powered generation with sustainable Alaska renewable energy resources such as hydro and cleaner- burning natural gas at Alaska's cruise ship docks. NEW. $10,000,000 was not in GOV Orig request. Estimates for the preliminary studies for the Dixon Diversion are $12 million. These studies were partially funded by a $5 million appropriation in FY2024. This appropriation will enable engineering and environmental studies to continue during the upcoming field season. AEA IIJA/IRA Funding Opportunities %$ Awarded Defense Community Infrastructure Pilot - National Defense Authorization Act Black Rapids Training Site $ 15,602,648 0%$0 AEA partnered with GVEA. $12.6M federal receipt authority approved in FY24 and requested additional $3M to bury line per DOD in FY24 supplemental budget for a total of $15.6M. Awarded Energy Efficiency and Conservation Block Grant - IIJA 40552b $ 1,627,450 0%$0 Solicitation for RE-VEEP subawards Round 1 closed 2/27/24. Round 2 closed 5/28/24. Awarded High Energy Cost Grants - USDA RUS $ 2,000,000 0%$0 AEA awarded grant for Manokotak. Awarded National Electric Vehicle Infrastructure Program (NEVI) - IIJA 11401- Formula Funding FFY22-FFY26 $ 52,415,020 20%$10,483,004 AEA is a partner, DOT responsible for future receipt authority. Total expected is $52M. FFY 22-24 awarded for $30.1M. FFY25-26 allocations pending for ~$22.3M. Awarded Preventing Outages and Enhancing the Resilience of the Electric Grid to States and Indian Tribes - IIJA 40101d Formula Funding FFY22-FFY26 $ 64,022,556 15%$9,603,383 AEA has receipt authority for $24.2M federal award and $5.4M match. Requested federal receipt authority for additional $17.6M and match of $1.8M in FY25 budget. FFY 25-26 allocations pending for ~$24.2M, remaining match of ~$2.3M needed in future years. Awarded State Energy Program Funding - IIJA 40109 $ 3,661,930 0%$0 AEA applicant. Funding split 70% AEA and 30% AHFC. Awarded Vehicle Technology Office FFY 2022 $ 1,670,000 20%$417,500 Match to be provided by site partners. $161,503,491 $ 140,999,604 $20,503,887 Conditional Award Energy Efficiency Revolving Loan Capitalization Program - IIJA 40502 $ 4,782,480 0%$0 AEA resubmitted application 5/28. Requested additional $240k in federal receipt authority in FY24 supplemental budget. AEA and AHFC are partners. Conditional Award Energy Future Grant $ 496,725 0%$0 AEA partnered with AML for proposal to evaluate energy permitting in 45 municipalities. Application was selected for award pending negotiations. Conditional Award Grid Resilience and Innovation Partnerships Program Topic 3 - IIJA 40103b $ 206,500,000 100%$206,500,000 AEA notified by DOE for negotiation of financial assistance award in the amount of $206.5M. 100% match required or $206.5M, funding source unknown. Conditional Award Greenhouse Gas Reduction Fund - Solar For All Competition - IRA 134a $ 62,450,000 0%$0 AEA/AHFC partners, selected for an award on 4/22/24. Requested $20M federal receipt authority in FY25 budget. Federal receipt authority of $42.45M needed for remainder of award. Conditional Award Home Efficiency Rebates (formula funding) - IRA 50121 $ 37,368,480 0%$0 AEA applicant as State Energy Office. AHFC administer the program. Application due 1/31/25. Conditional Award Home Electrification and Appliance Rebates (formula funding) - IRA 50122 $ 37,150,940 0%$0 AEA applicant as State Energy Office. AHFC administer the program. Application due 1/31/25. Conditional Award Training for Residential Energy Contractors (TREC) - IRA 50123 - Formula Funding $ 1,293,870 0%$0 AEA submitted application as State Energy Office. AHFC to administer the program. Requested federal receipt authority in FY25 budget. $556,542,495 $ 350,042,495 $ 206,500,000 AK Funding Award / Request Comments Required Match Status GO Federal Receipt Authority Grant Program Name Total Awarded: Total Conditional Award: Note: New information is in bold font in cells highlighted yellow Page 1 of 2 last updated 6/6/2024 AEA IIJA/IRA Funding Opportunities %$ AK Funding Award / Request Comments Required Match Status GO Federal Receipt Authority Grant Program Name Pending Clean Energy Innovator Fellowship Program NA NA NA AEA submitted 2 applications. Fellows would be paid by stipend from DOE, receipt authority not needed. Pending Climate Pollution Reduction Grants Competition - Dixon Diversion Measure - IRA 60114 $ 348,415,151 0%$0 AEA submitted application March 29, 2024. Pending Climate Pollution Reduction Grants Competition - Rural Energy Programs- IRA 60114 $ 49,986,112 0%$0 AEA submitted application March 29, 2024. AEA lead applicant of coalition with Northwest Arctic Borough and Tanana Chiefs Conference. Pending Communities Taking Charge Accelerator, FY 2024 $2,000,000 0-50%TBD AEA submitted concept paper. Pending Defense Community Infrastructure Pilot - National Defense Authorization Act $ 10,106,603 0%$0 Application deadline 6/17/24. AEA considering re- submitting for Eielson upgrades with partner GVEA. GVEA would supply cost share, if required. Pending Grid Resilience and Innovation Partnerships Program Topic 3 - IIJA 40103b $ 365,000,000 100% $ 365,000,000 Application submitted by AEA 4/17/24. Pending MARAD Port Infrastructure Development Program - IIJA Title VIII $ 8,958,431 20%$0 AEA submitted application for 3 rural communities. Match may be waived for rural communities. Pending Waste to Energy Technical Assistance for State, Local and Tribal Governments NA NA NA AEA submitted an application for technical assistance (TA). Federal receipt authority not needed for TA. $1,149,466,297 $ 784,466,297 $ 365,000,000 Considering Charging and Fueling Infrastructure Discretionary Grant Opportunity Round 2 TBD 20%TBD Due date for new applications is 8/28/24. Due date for reconsideration of Round 1 applications is 7/1/24. Considering State-Based Home Energy Efficiency Contractor Training Competitive Grant Program TBD 0%$0 Letter of intent submitted by AEA for AHFC proposal. Application deadline 7/12/24. Considering Watersmart Grants: Water and Energy Efficiency Grants for FY2024 & 2025 Bureau of Reclamation Opportunity No. R24AS00052 TBD 100%TBD Application Period 2 deadline 10/30/24. AEA may apply for part of Dixon Diversion Project. TBD TBDTotal Considering: Total Pending: Note: New information is in bold font in cells highlighted yellow Page 2 of 2 last updated 6/6/2024 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 Thayer, Executive Director FROM: Jim Mendenhall, P.E., Program Manager DATE: June 6, 2024 SUBJECT: Railbelt Innovation and Resliency Project, Phase 1 GRIP Topic 3, Round 1 - Update We have been working on meeting all requirements for the DOE to make an award. AEA has submitted the following: 1. Cyber Security Plan 2. Statement of Project Objectives (SOPO) 3. Statement of NEPA Compliance 4. Budget for initial budget period 5. Community Benefits Plan Objectives (CBPO) 6. Summary of projected Pre-Award Costs - Pending AEA has received Sample Terms & Conditions and are awaiting specific Terms & Conditions for our project. A number of the project awardees have requested clarifications and waivers related to the Davis Bacon Act. AEA believes that since the State of Alaska already requires weekly payroll and Certified payroll we will not have an issue. DOE recognizes that an award need to be made before the end of the Federal fiscal year. DOE will make a project award with a limitied scope. The scope will be capped at an amount relative to dedicated State funds. The State has dedicated $32.7M in funds and we estimated spending for the initial budget period is ~$14-1/2M. DOE has been given the budget justification for the first year. The DOE plans to authorize additional Federal funds will be released as more matching funds are dedicated to the project. AEA, in cooperation with the Railbelt utilities is working on the Railbelt Strateigic Asset Plan. This plan will, along with other deliverables, will develop a Railbelt Strategic Transmission Plan. The study will evaluate power flows and transient Stbility Analysis and develop a list of N-1 contingencies. The plan will identity possible improvements to the transmission system and propose a final transmission system. AEA is looking at engaging a contractor to help develop a preliminary project budget, schedule and work plan. Deliverables would include recommendations on technology (LCC vs VSC, bipolar, symmetrical monopole, etc) converter stations, converter transformers, transmission options as well as a summary of control schemes and protection equipment. We continue to have weekly check-in meetings with the DOE 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 TO: Curtis Thayer, Executive Director FROM: Audrey Alstrom, P.E., Director – Renewable Energy and Energy Efficiency DATE: June 5, 2024 RE: Solar for All Update Background On June 28, 2023, the Environmental Protection Agency (EPA) released the $7 billion Solar for All (SFA) Notice of Funding Opportunity (NOFO) to issue competitive grants to States, Tribal governments, municipalities, and other eligible recipients to provide subgrants, loans, or other forms of financial assistance as well as technical assistance to deploy residential rooftop and residential-serving community solar projects in and benefiting low-income and disadvantaged communities. Programs funded must deliver the following meaningful benefits: household electricity savings of 20%, equitable access to solar, resilience benefits, community ownership, and workforce development. In response to the NOFO, in July 2023 the Alaska Energy Authority (AEA) submitted a Notice of Intent (NOI) as the lead applicant for a $100 million coalition application with the Alaska Housing Finance Corporation (AHFC), and subsequently, a full application in September 2023. AEA to focus on residential- serving community solar and AHFC on residential rooftop solar, with funds to be split evenly between the two organizations. Partners in the application included Alaska Works Partnership (AWP) to coordinate and implement solar workforce development training, Alaska Municipal League (AML) to conduct equity and stakeholder engagement activities, including to work with communities or meaningful inclusion and benefits, and Alaska Center for Energy and Power (ACEP) to provide technical assistance, which will include techno-economic analysis. Update On April 22, 2024, AEA and AHFC’s coalition application was selected for a $62.5 million EPA SFA grant. Following the notice of selection, AEA provided an updated SF-424 to EPA to reflect the updated funding amount, project start date of May 1, 2024, and project end date of April 30, 2029. AEA met with the EPA’s project officer for the grant and has completed EPA-required training in preparation to receive the grant award. Additionally, AEA met with the Tanana Chiefs Conference (TCC) and Alaska Native Tribal Health Consortium (ANTHC), whose coalition application was also selected for a SFA grant, and AEA- AHFC project partners to share an overview of grant workplans and begin setting up technical advisory and working group meetings. The working group will likely be facilitated by AEA to begin the public outreach and engagement process. Over the next quarter, AEA and AHFC will collaborate closely to revise the SFA workplan, and convert it to a format specified by the EPA. The EPA requires that all awards are fully executed and in place by September 30, 2024. Control Number: 3214-1810 1 Project Title: Empowering Alaska: Planning Innovative EV Charging Solutions for All Topic Area 1: Solving for No-Home Charging: Expanding Charging Access for Privately Owned E-Mobility Points of Contact: Business: Curtis Thayer Executive Director Alaska Energy Authority cthayer@akenergyauthority.org Technical: Josi Hartley Renewable Energy and Energy Efficiency Program Manager Alaska Energy Authority jhartley@akenergyauthority.org Team Member Organizations: Alaska Energy Authority (AEA): Curtis Thayer, Executive Director Audrey Alstrom, Renewable Energy and Energy Efficiency Director Josi Hartley, Renewable Energy and Energy Efficiency Program Manager Sean Arcilla, Project Manager – Program Manager Sandia National Laboratories: Andrea Mammoli, Principal Member of Technical Staff Emily Moog, Member Technical Staff Launch Alaska: Tim Leach, Deputy Director – Transportation Alaska Center for Energy and Power (ACEP): Michelle Wilber, Research Engineer Fairbanks Area Surface Transportation (FAST) Planning: Jackson Fox, Executive Director Chugach Electric Association: Mark Henspeter, Business Development Analyst Confidentiality Statement: The plug-in electric vehicle and electric vehicle service equipment data collected in the proposed project will be sufficiently anonymized where necessary and stored on a dedicated server with prescribed user access to ensure privacy of the end users. Control Number: 3214-1810 2 Technical Description and Impacts Problem Statement: The vast majority of early EV adopters have access to private charging infrastructure, whether at home, at work, or at both locations. These adopters are also generally members of higher-income households. Due to the increasing availability of used EVs, decreasing costs, and general knowledge of the lower cost of ownership, EVs are becoming attractive and affordable for lower income drivers. However, the inadequacy of public charging infrastructure, whether it is perceived or tangible, remains an obstacle to reaching the Biden administration’s target of 50% of car sales being EVs by 2030. Currently, research data about EVs is largely based on the behavior of current EV drivers. Data are being collected on vehicle usage, charging behavior, and responses to charging costs, and to guide the deployment of new EVSE. However, this overlooks the requirements of drivers unable to charge at home, including households lacking dedicated parking spaces and those unable to install level 2 chargers due to renting constraints, financial limitations on necessary home electrical upgrades, or other. If these drivers adopt EVs, their charging behaviors may differ significantly from early adopters, and EV charger planning that neglects the needs of these potential users may not adequately support them. ACEP research shows that in addition to the energy needs for winter driving, electric vehicles parked outside in the cold winters of Alaska use an appreciable amount of energy for battery health maintenance. While Alaska is the most extreme state in this regard, learnings from this project will inform efforts to provide affordable, effective charging for those without heated garages in other cold weather states. Drivers in Alaska report that on very cold days, level 1 (120V) charging is insufficient to add mileage to outdoor vehicles as all energy is used to condition the battery. Solutions that work in less extreme climates (e.g. 120V power pole charging) will not be sufficient in Alaska or other extreme winter states. Project Goal: The project goal is to build a model that identifies the best EVSE sites in urban and rural areas in Alaska. This model will support the development of public charging infrastructure, targeting a population of potential EV drivers without home charging capabilities. The developed model will provide insights into optimal charging locations suited to Alaskan conditions, considering factors such as climate, remoteness, and high electricity costs. It will be deployed to inform concurrent EV initiatives such as AEA’s Alaska Rural EVSE Deployment (ARED) and National Electric Vehicle Infrastructure (NEVI) projects, as well as FAST’s Local EV Infrastructure Deployment plan. This project will leverage existing work under the aforementioned projects. The model derived from this project will inform subsequent phases of ARED, NEVI, and FAST’s project. Project Approach: Our approach is to engage with members of the community who are not EV owners, directly and indirectly. The direct approach facilitates reciprocal information sharing between EV owners and potential EV owners, in either direction, for example via smart phone apps, facilitated used of shared EV fleets, regular public information sessions, focus groups, Control Number: 3214-1810 3 workshops, surveys, and websites with local resources about cost of EV ownership, electricity, and charging locations. The indirect approach leverages existing data streams, including on- board data acquisition systems (e.g. Wejo, Geotab and OEM). Research Planning: Our plan is to interact with the general public to understand preferences related to charging; use data to model traffic patterns for all vehicle traffic, not just EVs; generate synthetic traffic flows to study charging patterns and optimal location of EVSE; modeling of hypothetical charging models (e.g. public charging hub, valet charging, bring your own cable); iterate until consensus is reached between preferences and technical performance; work with technology providers to implement and field-test; work with utilities to understand interaction between grid decarbonization, EV charging loads, temporal variability, and system impacts; work with local environmental agencies to model air quality improvements; work with planning agencies to examine existing plans and determine potential bottlenecks in EV adoption, both on the consumer side and on the EV charging availability side; engage with small business owners and employees to understand use of vehicles, constraints to charging and determine possible solutions; engage with technology companies to determine if their platforms could be applied as solutions to electrification of light- and medium-duty vehicles with limited home charging. Project Impact: This project provides stakeholders with insights into the ideal placement of EVSE throughout urban and rural Alaska, expanding access to underserved populations. This enables project members to concentrate on priority areas for potential EVSE development. Stakeholder and Community Benefits: Alaska has received feedback from funding agencies highlighting the need for more detailed information regarding the locations of charging stations. This feedback underscores the fact that Alaska has fallen behind other states that have already invested significant resources in transportation electrification planning. As a result, these states have gained a competitive edge when applying for competitive implementation grants. By addressing this information gap and enhancing planning efforts, Alaska aims to strengthen future implementation funding cases and ensure equitable access to funding opportunities. This project will promote informed deployment of EV charging infrastructure by producing data driven locations to support EVSE infrastructure buildout to increase accessibility for e-mobility users, maximizing effectiveness and reach across the state. Project Objectives: Success will be measured by the validation of the model and its application to existing and developing projects. The project team will engage with communities to assess their charging needs by conducting outreach sessions and surveys; collect quality data through the methods specified in the direct and indirect approaches; develop, validate, and apply the model; ensure benefits from this project will be received by disadvantaged communities in accordance with the Justice40 requirements. Project Team Qualifications and Facilities: The Alaska Energy Authority is a state-owned, public corporation of the State of Alaska with the mission to reduce the cost of energy in Alaska. AEA Control Number: 3214-1810 4 is the state’s energy office and lead agency for statewide energy policy and program development. Within the EV program, AEA manages over $55 million which include, the VW Settlement funds, NEVI, and ARED. AEA’s building is located conveniently in Anchorage with adequate technology, spacing, and facilitation equipment to administer this project. ACEP was established in 2007 as an applied energy research institute based at the University of Alaska Fairbanks. ACEP handles over $1.5 million in research and project awards and contracts per year and has a fully supported grants management staff. ACEP research includes research on energy use of EVs in cold weather and the impacts of EV charging on electrical grids. Launch Alaska is a climate tech deployment accelerator, which connects innovative startups with asset owners and communities to improve environmental and cost performance and system functionality in the transportation, energy, and industrial sectors. Launch Alaska specializes in outreach, education, and technical assistance activities. Launch Alaska led a successful technology demonstration, the Arctic Road Rally, where 10 EVs drove to the northernmost point in the U.S. on the connected to the road system for the first time ever to raise EV awareness, increase EV adoption, and inform EV infrastructure investment in isolated communities. Fairbanks Area Surface Transportation (FAST) Planning is the State-designated Metropolitan Planning Organization (MPO) for the communities of Fairbanks and North Pole, Alaska. The Urbanized Area has a population of just over 70,000 (10% of the State’s population) and only one publicly accessible EV charging station. Fairbanks is also a terminus of the State’s only Alternative Fuel Corridor, which connects Anchorage (the largest Urbanized Area) to Fairbanks through the MatSu region (third, newest Urbanized Area) along the Parks Highway. Sandia National Laboratories is a Federally Funded Research and Development Center that delivers essential science and technology to resolve the nation’s most challenging security issues. The Renewable Energy and Distributed Systems Integration program helps to develop and validate solutions to the challenges facing the nation’s electricity systems. The Sandia team will leverage research tools and techniques developed as part of the DOE’s EVs@Scale project. Sandia National Laboratories are located in Albuquerque, NM and Livermore, CA. Chugach Electric Association, Inc. (Chugach) is a member-owned cooperative utility, serving the Anchorage and northern Kenai Peninsula regions. Chugach has established goals to reduce carbon emissions while maintaining reliable and affordable electric service to the nearly 300,000 Alaskans that live within the service area. The number of EVs registered within the Chugach service area is growing steadily at more than 50% year-over-year, and a current density of approximately 62 EVs per 10,000 residents. Chugach has a large, unionized workforce and strong relationships with union partners. Chugach has supported the development and operation of EV charging infrastructure since 2017 and is advancing new charging projects as a strategic investment in decarbonization and EV charging infrastructure. Chugach has existing EV incentive programs and tariffs to improve the affordability of EVs and charging infrastructure. Control Number: 3214-1810 5 Community Benefits Plan Community and Labor Engagement: The project will directly engage communities in Alaska to raise awareness of the benefits of e-mobility, identify communities with interest in e-mobility, determine the barriers to EV adoption and EVSE deployment, and gather public input related to vehicle use. The ARED and NEVI projects include a comprehensive outreach strategy designed to involve urban and rural hub communities at every stage of the project's development. AEA’s current outreach efforts are geared towards achieving multiple objectives, including spreading awareness about funding opportunities, gathering public feedback and commentary on deployment strategies, and comprehensively understanding community needs and challenges. These initiatives are essential for fostering community engagement and ensuring the successful implementation of e-mobility solutions. The project will leverage the Launch Alaska Tech Deployment Track, a startup deployment accelerator that works with climate tech companies from all over the world to find project opportunities in Alaska. The Tech Deployment Track can assist in identifying new technologies that could serve identified communities. The accelerator also brings in a diverse group of advisors – subject matter experts that connect startups with Alaska project opportunities – that thoroughly vet the technologies and help assess the best partners and places for deployment. The Tech Deployment Track also includes an educational component for all companies wanting to work in Alaska on how to effectively do business in the state. This education includes historical, cultural and socioeconomic context to make sure startups are thoughtfully working in the communities they wish to serve. The project will also leverage existing utility resources, where available, including incentive programs, systems analysis, and technical expertise to maximize the value of new charging infrastructure deployments. Investing in Job Quality and Workforce Continuity: • Electrical training for EVSE installers: EVSE installation requires a skilled electrician for proper installation. For renewable energy projects, the International Brotherhood of Electrical Workers (IBEW) Local 1547 has shown interest in participating in installation and for the EV Arctic Road Rally, IBEW assisted in EVSE recommissioning. IBEW offers the Electric Vehicle Infrastructure Training Program (EVITP) for its members. • Repair and Maintenance of EVSE: Site hosts selected through the ARED project will be responsible for the repair and upkeep of their EVSE. The ARED project is slated to provide training for future site hosts or relevant third-party operators, thereby building capacity in the local community to operate and maintain EVSE Advancing Diversity, Equity, Inclusion, and Accessibility: The Cohort’s existing EV projects contribute to the advancement of diversity, equity, inclusion, and accessibility. In urban areas, the cohort will focus its efforts in the underserved areas highlighted on the below map. Rural Alaskan communities are historically underserved due in part to their remote locations and tribal status. The cohort represents a diverse group of individuals and are committed to increasing pathways to opportunity for disadvantaged communities and individuals facing systemic barriers. Control Number: 3214-1810 6 Launch Alaska’s Tech Deployment Track works to bring climate innovation to all corners of the state, with a focus on serving remote communities. Since starting the program in 2019, the 41 companies that have graduated the program into the Launch Alaska Portfolio have found project opportunities throughout the state. Seven of the 11 companies Launch Alaska admitted to the Portfolio from the 2023-24 cohort had projects located in rural areas (outside of the population centers of the railbelt – Anchorage, Fairbanks, Kenai Peninsula and Matanuska- Susitna Borough – and Juneau). In addition, our Portfolio companies were awarded 19 projects in 2023 for a total value of $9.2 million – with many of these projects located in rural Alaska. Contributing to the goal that 40% of climate and clean energy investments flow to disadvantaged communities: The primary focus of this project will be on addressing the needs of disadvantaged communities both in urban centers and rural Alaskan hub communities. It's important to note that Alaska Natives comprise a significant portion of the population in rural Alaska. In measuring the effectiveness of our J40 initiatives, we will adopt a methodology that aligns with key principles from projects such as NEVI, ARED, and FAST. This approach ensures consistency and allows us to leverage best practices established by these projects to maximize the impact of our efforts. Planned metrics: • Reduced environmental exposure to transportation emissions • Reduced noise • Increase the number of chargers in J40 areas • Decrease transportation energy cost burden by increasing accessibility to affordable charging • Increase the clean energy job pipeline, job training, and enterprise creation in disadvantaged communities • Positive economic impact to business owners in J40 areas • Knowledge-sharing and program awareness • Reduced cost of deploying charging infrastructure through optimal site selection 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 Defense Community Infrastructure Program Overview: The Defense Community Infrastructure Program (DCIP) is designed to address deficiencies in community infrastructure, supportive of a military installation, to enhance military value, support the training of cadets at “covered educational institutions,” installation resilience, and/or military family quality of life. “Community Infrastructure” includes projects related to transportation; schools; hospitals; police, fire, or emergency response, or other community support facilities; and utility projects (e.g., water, wastewater, telecommunications, electric and natural gas facilities). The facility or project itself must be owned by a state or local government, or a not-for-profit, member-owned utility. The facility addressed in the application must not be located on a military installation unless it is on property under the jurisdiction of a military department that is also subject to a real estate agreement (including a lease or an easement) held by an eligible community. More information on DCIP can be found here. Eligibility: State and local governments Funding: No award may exceed $20 million or be less than $250,000. Cost Share: Except as provided below for projects in rural areas or projects determined to be advantageous for national security reasons, state or local government recipients must agree to contribute not less than thirty percent (30%) of the total funding required for the community infrastructure project. State or local government funding contributions are not required for proposed community infrastructure projects located in rural areas, defined as a city, town, or unincorporated area that has a population of not more than 100,000 inhabitants. Where applicable, proposers must: 1) state explicitly in their proposal that the proposed project is located entirely in a rural area; 2) identify the city, town or unincorporated area by zip code in which the project is located as well as its population; and, 3) state that the proposer is not required to provide a non-Federal project cost contribution. The absence of a local cost share contribution for a rural area in no way adversely impacts the competitiveness of the proposal. Limitations on Use of Funds: Eligible costs include only hard construction and renovation costs, such as the costs directly associated with project administration, inspection, construction, utilities, and contingency costs required to execute the project, as well as costs of capital equipment affixed to the real property with a depreciable life of not less than seven (7) years. Soft costs, such as those required for planning, design, permitting, and meeting requirements of the National Environmental Policy Act must be funded by non-Federal project cost contribution funds. Construction contingency costs are limited to no more than fifteen percent (15%) of the Alaska Energy Authority Page 2 of 2 proposed project. However, all costs must have been incurred and expended either within the proposed project period, commencing from the date of award. Period of Performance: For a project to be viable, the applicant and subsequent Grantee must demonstrate throughout the term of the award that project activity can be completed so all awarded funds can be disbursed no later than June 30, 2029. Key Dates: Pre-proposal webinar – 04/18/2024 3 pm EDT Proposals due – 06/17/2024 5 pm PDT Eligible Activities: Eligible community infrastructure projects are any complete and usable transportation project; community support facility (e.g., school, hospital, police, fire, emergency response, or other community support facility); and utility infrastructure project (e.g., water, wastewater, telecommunications, electric, gas, or other utility infrastructure (with necessary cyber safeguards)) that: • are on land located off of a military installation or on property under the jurisdiction of a Secretary of a military department that is subject to a real estate agreement allowing the project or facility to be located on military property (including a lease or easement); • support a military installation; • are owned by a state, local government, or a not-for-profit, member-owned utility service; • are supported by the installation commander representing the installation benefitting from the proposed project (please refer to Section D., paragraph 2., part C. for more detail); • are where ground-disturbing work has not yet commenced; and, • are construction-ready. To be eligible, projects that will contribute to the training of cadets enrolled in an independent Reserve Officer Training Corps program at a covered educational institution must meet the requirements listed above. Key Application / Award Provisions: All proposed projects must be construction-ready and result in a stand-alone project that produces complete and usable facilities, improvements to existing facilities, or that completes a distinct, definable phase of a larger project which will be completed during the period of performance of the grant agreement. Recommendation: The Golden Valley Electrical Association (GVEA) is interested in resubmitting an application requesting $10.2 million for a substation upgrade to benefit Eielson AFB. GVEA also intends to provide a $110K cost match. 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: Alaska Energy Authority Board THRU: Curtis. W. Thayer, AEA Executive Director FROM: Conner Erickson, AEA Planning Director DATE: June 5th, 2024 RE: Renewable Energy Fund (REF) Round 16 Update REF Round 16 Recommended Projects In late January 2024 AEA provided its report of those REF Round 16 recommended projects to the state legislature for funding consideration in the Fiscal Year 2025 capital budget, and in satisfaction of its statutory requirement (reference AS 42.45.045(d)(3)). The list as provided to the legislature contained 24 projects for a total funding request of $32 million. In the governor’s initial capital budget bill, introduced as Senate Bill (SB) 187, the line-item allocation for REF Round 16 projects was $5 million. Under this $5 million initial allocation, only the top two recommended REF projects would be funded. In early May, after the House of Representatives took up SB 187 upon its transmittal from the Senate, the House in its adoption of its House Committee Substitute for the Senate’s Committee Substitute for SB 187, increased the funding from $5 million to $14.3 million. The Senate, in its concurrence of the House’s version of SB 187, adopted the increased appropriation for the REF. SB 187 is currently awaiting transmittal to the governor for his signature. Barring any unforeseen veto or reduction in the REF appropriation, which AEA does not anticipate, the $14.3 million appropriation will fund the top-seven ranked projects. At $14.3 million, this Fiscal Year 2025 appropriation would be the third-highest state appropriation for the REF since Fiscal Year 2014. AEA extends its thanks to the legislature for its continued financial support of the REF program and its desire to fund the REF program beyond the $5 million initially appropriated in the governor’s capital budget. For reference, Attachment A to this memo provides a list of those Round 16 recommended REF projects and identifies those seven top-ranked projects, found above the orange line, anticipated to be funded under the Fiscal Year 2025 $14.3 million appropriation. If appropriated, the funds will become available July 1, 2024. Attachments •Attachment A: Recommended REF Round 16 Applications CommunityProject NameApplicant NameElection DistrictRecommended FundingRubyRuby Community Solar PV and Battery StorageTanana Chiefs Conference36-R $ 2,008,113 HEA service areaKenai Peninsula Solar FarmSolstice Energy LLCvarious $ 2,000,000 KotzebueKotzebue Community Scale Energy Storage and InertiaKotzebue Electric Association, Inc.40-T $ 3,675,000 HomerAEEC / KPB CPL Landfill Gas CHP ProjectAlaska Electric & Energy Cooperative, Inc.6-C $ 1,115,014 IgiugigIgiugig Tribal Utility Solar PVIgiugig Village Council37-S $ 1,723,709 PelicanPelican Hydro Relicensing Project, Restoration, RepairCity of Pelican, Pelican Utilities2-A650,474$ NaknekNaknek Solar PV on Cape SuwarofNaknek Electric Association, Inc.37-S $ 3,137,848 SkagwayGoat Lake Hydro Storage Expansion StudyGoat Lake Hydro, Inc.3-B $ 121,250 KwethlukNuvista Kwethluk Wind and Battery Project CompletionNuvista Light and Electric Cooperative Incorporated 38-S $ 738,979 QuinhagakQuinhagak Battery Energy Storage System ProjectAlaska Village Electric Cooperative, Inc.38-S $ 443,956 NenanaNenana Biomass District Heat System, Final PhaseCity of Nenana36-R $ 1,223,000 KongiganakKongiganak 100 kW Solar Energy ProjectPuvurnaq Power Company38-S $ 720,453 RailbeltRailbelt Wind Diversification Alaska RenewablesAlaska Renewables LLCvarious $ 2,000,000 HomerHomer Energy Recovery ProjectCity of Homervarious $ 280,000 AtmautluakAtmautluak ETS Installation, Integration and CommissioningAtmautluak Tribal Utilities38-S $ 286,227 Ketchikan, Petersburg, WrangellSoutheast Alaska Grid Resiliency (SEAGR)Southeast Alaska Power Agency (SEAPA)1-A, 2-A $ 4,000,000 ChevakChevak Battery Energy Storage System ProjectAlaska Village Electric Cooperative, Inc. 38-S $ 968,644 Pedro BayKnutson Creek Hydro Project ConstructionPedro Bay Village Council37-S $ 400,000 AkiachakAkiachak Native Community 200 kW Solar Energy ProjectAkiachak, Ltd38-S $ 67,833 NomeNJUS Solar Nome Banner Ridge Solar FarmNome Joint Utility System39-T $ 4,000,000 MEA service areaHunter Creek Hydroelectric Feasibility Study ProjectMatanuska Electric Associationvarious $ 1,280,500 ChignikChignik Hydroelectric Power SystemCity of Chignik37-S $ 883,012 GVEA service areaHealy Unit 2 Coal to Biomass Fuel ConversionGolden Valley Electric Associationvarious $ 269,500 SterlingSterling Solar ProjectUtopian Power LLC 8-D $ 12,500 TOTAL32,006,012$ *If appropriated by the Legislature and approved the Governor, this funding would become effective July 1, 2024 for inclusion in the Fiscal Year 2025 budget.Alaska Energy Authority - Renewable Energy Fund - Round 16 - Recommended Projects to Legislature***Orange line indicates the limit of recommended projects able to be funded with the $14,310,158 appropriation that passed in the legislature.Attachment A: Recommended REF Round 16 Applications 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: Alaska Energy Authority Board THRU: Curtis. W. Thayer, AEA Executive Director FROM: Conner Erickson, AEA Planning Director DATE: June 5th, 2024 RE: Renewable Energy Fund (REF) Round 16 Update REF Round 16 Recommended Projects In late January 2024 AEA provided its report of those REF Round 16 recommended projects to the state legislature for funding consideration in the Fiscal Year 2025 capital budget, and in satisfaction of its statutory requirement (reference AS 42.45.045(d)(3)). The list as provided to the legislature contained 24 projects for a total funding request of $32 million. In the governor’s initial capital budget bill, introduced as Senate Bill (SB) 187, the line-item allocation for REF Round 16 projects was $5 million. Under this $5 million initial allocation, only the top two recommended REF projects would be funded. In early May, after the House of Representatives took up SB 187 upon its transmittal from the Senate, the House in its adoption of its House Committee Substitute for the Senate’s Committee Substitute for SB 187, increased the funding from $5 million to $14.3 million. The Senate, in its concurrence of the House’s version of SB 187, adopted the increased appropriation for the REF. SB 187 is currently awaiting transmittal to the governor for his signature. Barring any unforeseen veto or reduction in the REF appropriation, which AEA does not anticipate, the $14.3 million appropriation will fund the top-seven ranked projects. At $14.3 million, this Fiscal Year 2025 appropriation would be the third-highest state appropriation for the REF since Fiscal Year 2014. AEA extends its thanks to the legislature for its continued financial support of the REF program and its desire to fund the REF program beyond the $5 million initially appropriated in the governor’s capital budget. For reference, Attachment A to this memo provides a list of those Round 16 recommended REF projects and identifies those seven top-ranked projects, found above the orange line, anticipated to be funded under the Fiscal Year 2025 $14.3 million appropriation. If appropriated, the funds will become available July 1, 2024. Attachments •Attachment A: Recommended REF Round 16 Applications CommunityProject NameApplicant NameElection DistrictRecommended FundingRubyRuby Community Solar PV and Battery StorageTanana Chiefs Conference36-R $ 2,008,113 HEA service areaKenai Peninsula Solar FarmSolstice Energy LLCvarious $ 2,000,000 KotzebueKotzebue Community Scale Energy Storage and InertiaKotzebue Electric Association, Inc.40-T $ 3,675,000 HomerAEEC / KPB CPL Landfill Gas CHP ProjectAlaska Electric & Energy Cooperative, Inc.6-C $ 1,115,014 IgiugigIgiugig Tribal Utility Solar PVIgiugig Village Council37-S $ 1,723,709 PelicanPelican Hydro Relicensing Project, Restoration, RepairCity of Pelican, Pelican Utilities2-A650,474$ NaknekNaknek Solar PV on Cape SuwarofNaknek Electric Association, Inc.37-S $ 3,137,848 SkagwayGoat Lake Hydro Storage Expansion StudyGoat Lake Hydro, Inc.3-B $ 121,250 KwethlukNuvista Kwethluk Wind and Battery Project CompletionNuvista Light and Electric Cooperative Incorporated 38-S $ 738,979 QuinhagakQuinhagak Battery Energy Storage System ProjectAlaska Village Electric Cooperative, Inc.38-S $ 443,956 NenanaNenana Biomass District Heat System, Final PhaseCity of Nenana36-R $ 1,223,000 KongiganakKongiganak 100 kW Solar Energy ProjectPuvurnaq Power Company38-S $ 720,453 RailbeltRailbelt Wind Diversification Alaska RenewablesAlaska Renewables LLCvarious $ 2,000,000 HomerHomer Energy Recovery ProjectCity of Homervarious $ 280,000 AtmautluakAtmautluak ETS Installation, Integration and CommissioningAtmautluak Tribal Utilities38-S $ 286,227 Ketchikan, Petersburg, WrangellSoutheast Alaska Grid Resiliency (SEAGR)Southeast Alaska Power Agency (SEAPA)1-A, 2-A $ 4,000,000 ChevakChevak Battery Energy Storage System ProjectAlaska Village Electric Cooperative, Inc. 38-S $ 968,644 Pedro BayKnutson Creek Hydro Project ConstructionPedro Bay Village Council37-S $ 400,000 AkiachakAkiachak Native Community 200 kW Solar Energy ProjectAkiachak, Ltd38-S $ 67,833 NomeNJUS Solar Nome Banner Ridge Solar FarmNome Joint Utility System39-T $ 4,000,000 MEA service areaHunter Creek Hydroelectric Feasibility Study ProjectMatanuska Electric Associationvarious $ 1,280,500 ChignikChignik Hydroelectric Power SystemCity of Chignik37-S $ 883,012 GVEA service areaHealy Unit 2 Coal to Biomass Fuel ConversionGolden Valley Electric Associationvarious $ 269,500 SterlingSterling Solar ProjectUtopian Power LLC 8-D $ 12,500 TOTAL32,006,012$ *If appropriated by the Legislature and approved the Governor, this funding would become effective July 1, 2024 for inclusion in the Fiscal Year 2025 budget.Alaska Energy Authority - Renewable Energy Fund - Round 16 - Recommended Projects to Legislature***Orange line indicates the limit of recommended projects able to be funded with the $14,310,158 appropriation that passed in the legislature.Attachment A: Recommended REF Round 16 Applications PAYMENTS RECEIVED LATE FEES RECEIVED INTEREST + LATE FEES ($887,600)$481 $272,260 15 TOTAL # OF PPF LOANS LOAN DASHBOARD REPORT For Board Meeting on 6/20/2024 AEA POWER PROJECT LOAN FUND FISCAL YEAR-TO-DATE LOAN PORTFOLIO ACTIVITY (07/01/2023 - 5/31/2024) LOAN ACTIVITY EARNINGS LOAN CATEGORY STARTING BALANCE FUNDS DISBURSED ENDING BALANCE INTEREST RECEIVED AEA Power Project Fund $26,918,133 $5,498,500 $31,529,033 $271,779 LOAN PROGRAM SUMMARY Outstanding Loans $31,529,033.06 Uncommitted Cash Balance $3,660,958.19 Loan Commitments $5,434,143.78 Total Loan Program $40,624,135.03 0 $0 0.000% TOTAL # OF DELINQUENT LOANS LOANS DELINQUENT AMOUNT ($) % OF DELINQUENT LOANS ($) TO PORTFOLIO BALANCE Page 1 TOTAL ($) $2,247,725 $388,075 $762,299 $8,404,104 $18,152,174 $2,064,800 $32,019,177 AEA POWER PROJECT FUND LOANS BY ENERGY REGION & PROJECT TYPE OUTSTANDING BALANCES & NEW ACTIVITY ENERGY REGION AEA PPF LOAN BALANCE REMAINING LOAN COMMITMENTS NEW APPLICATIONS IN PROCESS # OF AEA PPF LOANS ALEUTIANS $2,247,725 --3 BRISTOL BAY $388,075 --1 LOWER YUKO- KUSKOKWIM $762,299 --2 RAILBELT $8,404,104 --5 SOUTHEAST $18,152,174 --1 YUKON-KOYUKUK/U TANA $1,574,656 $490,144 -3 TOTAL $31,529,033 $490,144 -15 AEA PPF LOANS BY PROJECT TYPE AEA PPF LOANS BY PROJECT TYPE - BALANCE (NEW & OUTSTANDING) PROJECT TYPE # OF PROJECTS PROJECT TYPE BALANCE HYDRO 4 HYDRO $21,638,901.76 DIESEL 4 SOLAR $5,901,764.82 SOLAR 3 TRANSMISSION $1,966,667.00 WIND 2 WIND $1,263,336.59 BIOMASS 1 DIESEL $1,190,337.98 TRANSMISSION 1 BIOMASS $58,168.69 Page 2 813 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: Bryan Carey, P.E., Director of Owned Assets DATE: June 20, 2024 RE: Railbelt Owned Asset Update Below is an update on the Alaska Energy Authority (AEA) Owned Assets. Alaska Intertie • Operating utilities and AEA writing a Wildfire Mitigation Plan for Alaska Intertie. • Implementation plan for the Railbelt Synchrophaser system, which will provide real-time measurement and collection of data from Homer to Fairbanks. Project tentatively selected to receive funding through the AEA managed IIJA 40101(d) program. • 230 kV Impact Study has been awarded by the IMC. This will study the impact of converting the Alaska Intertie to 230 kV (currently operates at 138 kV). • Operating utilities and AEA modifying a large portion of the Intertie which will eliminate the need for the aging Snow Load Management System. Project tentatively selected to receive funding through the AEA managed IIJA 40101(d) program. • Data communication are being upgraded between Anchorage and Healy. • Inverter Based Resources (IBR) Integration Study RFP will be re-advertised this summer by the IMC. This study will help determine the impact of IBR resources (Wind/Solar) exceeding 50% of generation. NREL contract was rescinded prior to work due to potential conflict of interest. Bradley Lake Hydroelectric Project • Required Project Work. Chugach Electric Association (CEA) proceeding with design and permits for the Sterling – Quartz section. First line section for construction to go to bid this summer. • Required Project Work. Homer Electric Association proceeding with design and permitting of the Soldotna – Sterling section. • Required Project Work. AEA is in discussions with CEA, Matanuska Electric Association, and counsel on the Southcentral Battery Energy Storage System (BESS) in Anchorage. • Dixon Diversion Project having busy field season at Bradley Lake. Multiple weeks of fisheries studies, multiple weeks of drilling, hydrology work, and studies on raising the height of Bradley Lake dam. • Dixon Diversion November 2023 update has anticipated annual energy ~190,000 MWhrs with a Total Project Cost of $342 million. • Dixon Diversion received $5 million from State of Alaska (FY2024) for feasibility studies. Alaska Energy Authority Page 2 of 2 Rural Transmission • Shungnak-Kobuk Tieline Transfer Agreement submitted to AVEC & NANA for review. Once signed the transfer will be complete. • Craig-Klawok Tieline o AEA has a signed Transfer Agreement with AP&T. Legal documents to transfer the real property, assets, and easements are being drafted by AEA legal. • Bethel-Oscarville Tieline. o The tieline was built by APA, owned by AEA. o Tieline crosses four Native Allotments. AEA is working with legal counsel to find site control documentation for the easements and legal access. It is possible the easements for these allotment do not exist, or were not prepared correctly. o GCI has interest in taking ownership and maintenance responsibility of the tieline as part of bringing Broadband to Bethel. o Transfer to GCI is contingent on resolving the native allotment easements. o AEA will requrie a joint use agreement between GCI and AVEC to ensure the power lines are adequately maintained, as Oscarville is completely dependent on tieline for power. Strategic Asset Plan • Railbelt Strategic Transmission Plan (RSTP) is being developed by utilities and AEA. Railbelt Reliability Council (RRC) is observing the plan development. The Plan is a collaborative effort to plan an AEA and utility transmission system capable of supporting forecasted loads for 2050. Upgrades will be prioritized for the greatest benefit. Forecasts were taken from the ACEP De-carbonization Study and NREL 80% Renewable Standard Study. • Upgrading the Power System Simulator for Engineering (PSS/E) system used by utilities for model the Railbelt. 1 From: "Curtis W. Thayer" <cthayer@akenergyauthority.org> Date: May 16, 2024 at 3:59:30 PM EDT To: Board of Directors <BoardofDirectors@aidea.org> Cc: John Springsteen <john.springsteen@alaska.gov>, "Jensen, Andrew D (GOV)" <andrew.jensen@alaska.gov>, AEA MANAGEMENT <AEAMANAGEMENT@aidea.org>, Randy Ruaro <rruaro@aidea.org> Subject: Legislative Actions that affect AEA The Alaska legislature adjourned its regular session last night after a marathon day of floor  hearings, at eases, and with seconds to spare. Legislators did pass some substantial energy‐related bills before the adjournment deadline: 1.House Bill 307 – this bill includes several provisions aimed at the operation of the Railbelt electric system. The bill had become an omnibus energy bill in recent days, and addresses issues such as qualifications for RCA commissioners, tax exemption for IPPs under certain conditions, the creation of a separate board for the Alaska Energy Authority, and the creation of a Railbelt Transmission Organization with the purpose of establishing an open access transmission tariff in the Railbelt, among other items. 1.SCS CS HB 307(FIN) Sectional Analysis Section 1.Section 1 Legislative Intent Section 2.Section 2 AEA employees are classified Exempt Service on par with AIDEA APFC, AGDC, Alaska Aerospace Corp. 3.Section 3 Qualifications of RCA Commissioners. 4.Section 4 Increase Salary of RCA Commissioners 5.Section 5 Adds RTO to Powers & Duties of the RCA. 6.Section 6 Telecom Fix. 7.Section 7 Increase Regulatory Cost charge for utilities. 8.Section 8 Expands ERO criteria of “just and reasonable” rates to include diversity of supply, promote load growth, and enhance energy reliability or energy security. 9.Section 9 Requires Wholesale Power Sales Agreement between utility and IPP. Requires transparency in state or local tax exemptions. Excludes joint action agencies from the definition of IPPs. 10.Section 10 AEA is subject to RCA jurisdiction for the purposes of the open access transmission tariff. 11.Section 11 Exempts interconnected utilities with a total annual energy sale less than 3m megawatt‐hours from the requirement to participate in an ERO. 12.Section 12 Requires ERO to prioritize reliability, stability, and cost to the customer of an interconnected electric system. 13.Section 13 Regulations for ERO must be nondiscriminatory. 14.Section 14 Increase Regulatory Cost charge for pipeline carriers. 15.Section 15 Loan Terms for renewable energy resources projects. 2 16. Section 16 Exempts new power generation or storage facilities from state  and local taxation.  17. Section 17 Creates AEA Board. 18. Section 18 Commissioners of Revenue & Commerce may designate a  deputy to attend AEA Board Meetings.  19. Section 19 AEA Board Processes.  20. Section 20 AEA Employees are Exempt. Conforming to section 1.  21. Section 21 Adds RTO to Powers and Duties of AEA. Allows AEA to  acquire battery or energy storage systems. 22. Section 22 AEA is subject to RCA authority for the purposes of RTO.  23. Section 23 Creates the RTO for the purposes of open access tariff to  recover costs of operating the backbone transmission system. RTO is a  Division of AEA. RTO is subject to the jurisdiction of the RCA. RTO  Membership. RTO Timelines. Definitions.  24. Section 24 Transition for new RCA Commissioners.  25. Section 25 Transition for new AEA Board. 26. Section 26 Transition for RTO. Deadlines. 27. Section 27 Immediate Effective Date for Section 7. Section 28 July 1,  2024, Effective Date   2. House Bill 273 – this bill addresses many aspects related to the powers of the Alaska  Housing Finance Corporation (AHFC). One of the bill’s provisions allows AHFC to create a  subsidiary corporation for sustainable energy development – essentially a state green  bank. HB 273 incorporates language from other bills filed to establish a green bank,  adding the language to a broader bill impacting AHFC.  There is provision for AEA to  provide technical assistance to AHFC and would require one additional PCN.   Lawmakers also passed the FY25 state operating and capital budgets yesterday.    The FY 25 operating budget includes $48 million for the PCE program (full funding), along with  appropriations for Alaska Energy Authority (AEA) programs, among other items.    The FY25 capital budget includes $14.3 million to fund a portion of the Renewable Energy Fund  Round 16 projects list and funding for a range of established AEA programs and federal grant  opportunities, among other appropriations.    The bills listed above, including the budget bills, now to go Gov. Mike Dunleavy for his  consideration.      Best Regards,   Curtis W. Thayer Executive Director 813 W Northern Lights Boulevard, Anchorage AK 99503 (907) 771-3009 (office) (907) 744-4704 (cell) cthayer@akenergyauthority.org 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 TOPIC AND AUDIENCE LOCATION TEAM MEMBER June 12-14, 2024 Attendee NASEO State Energy Planning Bootcamp; and Risk Assessment and Approaches and Risk Mitigation Strategies Cohort Workshop Hyatt Regency, Minneapolis, MN Audrey Alstrom June 3-7, 2024 Attendee Alaska Power Association (APA) Legislative Conference Phoenix Park Hotel, Washington, D.C.Curtis W. Thayer May 22, 2024 Radio Interview Legislature appropriated money for the GRIP grant, Eric Stone, Alaska Public Media Phone Curtis W. Thayer May 21, 2024 Media Interview "Sustainable Energy Conference focuses on how to unlock Alaska's Resources for the rest of the country," Alaska's News Source Dena’ina Civic and Convention Center, Anchorage, AK Curtis W. Thayer May 21-23, 2024 Attendees/Presenters/Vendor Booth Alaska Sustainable Energy Conference Dena'ina Civic and Convention Center, Anchorage, AK Curtis W. Thayer, Tim Sandstrom, Bryan Carey, Audrey Alstrom, Conner Erickson, Rebecca Garrett, Karen Bell, Karen Turner, Josephine Hartley, Wendy Sturdivant, Justin Tuomi, Ashley Streveler, Dawn Molina, Justin Glover, Quinlan Harris, Sean Arcilla May 20, 2024 Attendee / Speaker Department of Energy, Energy Flyover to energy sites Alaska (South Central, Kenai Peninsula, Bradley Lake, Cook Inlet, Mat-Su,etc.) Curtis W. Thayer May 16, 2024 Media Interview Railbelt Transmission Legislation and Railbelt Upgrades, Tim Bradner with Alaska Legislative Digest Phone Curtis W. Thayer May 10, 14, 15, and 16, 2024 Host / Presenter NEVI Plan, Phase 2 Outreach Presentations Ketchikan, AK., Glenallen, AK., Homer, AK., Seward, AK., Anchorage, AK. Audrey Alstrom, Josephine Hartley May 14, 2024 Host Open House: Rampart Powerhouse Module Electric Power Constructors, Anchorage, AK Curtis Thayer May 7, 2024 Panelist / Presenter United States Energy Association Regional Decarbonization Workshop Sheraton Hotel, Anchorage, AK Curtis W. Thayer, Karen Bell April 30, 2024 Vendor Booth Matanuska Electric Association Annual Meeting Glenn Massay Theatre, Palmer, AK Quinlan Harris April 25, 2024 Media Response AEA Response to Tim Bradner with Alaska Legislative Digest on April 17 AEA Board Meeting Topics Email Brandy M. Dixon April 24, 2024 Media Interview Solar for All, Jenny Willoughby, KTNA (Talkeetna)Phone Curtis W. Thayer April 23, 2024 Media Interview Solar for All, Sean Maguire, Anchorage Daily News Phone Curtis W. Thayer April 23, 2024 Panelist National Association of State Energy Officials and National Governors Association Webinar Series: Comprehensive Energy Planning 101 – Tips and Best Practices from the States: Webinar 1: Initiating Statewide Planning Processes Virtual Curtis W. Thayer April 22, 2024 Press Release AEA and AHFC selected for $62.5 Million EPA Solar for All Grant Email/Social Media Brandy M. Dixon April 12, 2024 Media Inquiry Grid Resilience and Innovation Partnerships Funding, Tim Bradner, Alaska Legislative Digest Email Brandy M. Dixon April 11, 2024 Newsletter AKEVWG April Newsletter Sent to 270 Recipients Email Brandy M. Dixon April 11, 2024 Attendee Utility Working Group Comms Monthly Check-In Virtual Brandy M. Dixon AEA COMMUNITY OUTREACH Last Updated on June 4, 2024 (6-Month Look Back) AEA Community Outreach Page 2 of 4 DATE DESCRIPTION TOPIC AND AUDIENCE LOCATION TEAM MEMBER April 10, 2024 Meeting AEA Meeting with Mayor Micciche, Mayor Whitney, and Vice Mayor Knackstedt Soldotna, AK Curtis W. Thayer, Jim Mendenhall April 10, 2024 Presenter Joint Kenai and Soldotna Chamber of Commerce Luncheon Soldotna Regional Sports Complex, Soldotna, AK Curtis W. Thayer, Jim Mendenhall April 3, 2024 Panelist 2024 Alaska Sustainable Energy Conference (ASEC) Pre-Conference Workshop 2: Transmission and Distribution: The Clean Energy Transitions Secret Weapon Virtual Jim Mendenhall April 2, 2024 Panelist Alaska Infrastructure Development Symposium: State Energy Updates Dena’ina Civic and Convention Center, Anchorage, AK Curtis W. Thayer April 2, 2024 Attendees Alaska Infrastructure Development Symposium: Rural Alaska Bulk Fuel Summit Dena’ina Civic and Convention Center, Anchorage, AK Shannon Apgar-Kurtz, Rebecca Garrett, Dean Maschner, Dawn Molina, Bill Price, Ashley Streveler April 2, 2024 Panelist 2024 ASEC Pre-Conference Workshop 2: Transmission and Distribution: The Clean Energy Transitions Secret Weapon Virtual Bill Price April 1, 2024 Attendee Railbelt Reliability Council Board Meeting             CIRI Office, Anchorage, AK Bill Price April 1, 2024 Host Dixon Diversion Terrestrial Meeting Virtual Bryan Carey March 29, 2024 Interview Electric Vehicle Tech (EV) Educational Documentary Production by Launch Alaska AEA Office Curtis W. Thayer, Audrey Alstrom March 28, 2024 Vendor Booth AEA EV Program, Anchorage Transportation Fair Alaska Airlines Center, Anchorage, AK Quinlan Harris, Yosty Storms March 25, 2024 Media Follow Up Railbelt Upgrades, Tim Lydon, Alaska Magazine Email Brandy M. Dixon March 22, 2024 Host/Presenter Alaska Electric Vehicle Working Group (AKEVWG) Technical Session: Microtrends and Winter vs. Summer Performance Virtual Audrey Alstrom March 22, 2024 Attendee Utility Working Group Comms Monthly Check-In Virtual Brandy M. Dixon March 19, 2024 Host Dixon Diversion Terrestrial Meeting Virtual Bryan Carey March 18, 2024 Media Interview AEA Update, Tim Bradner with Alaska Economic Report and Legislative Digest for KTOO Capital Views Virtual Curtis W. Thayer March 14, 2024 Attendee 2024 ASEC Planning Committee Virtual Brandy M. Dixon March 11, 2024 Media Interview Railbelt Upgrades, Tim Lydon, Alaska Magazine Phone Curtis W. Thayer March 7, 2024 Newsletter AKEVWG March Newsletter Sent to 274 Recipients Email Brandy M. Dixon March 6, 2024 Media Response AEA Response to ACEP Railbelt Decarbonization Study Article by Mikel Insalaco, Alaska Business Email Brandy M. Dixon, Bryan Carey, Conner Erickson, Bill Price, Curtis W. Thayer March 6, 2024 Panelist 2024 ASEC Pre-Conference Workshop 1: Utility Decision-Making: Navigating Constraints, Innovating for the Future Virtual Curtis W. Thayer March 5, 2024 Host Dixon Diversion Joint Agency and Public Meeting Virtual Bryan Carey March 4, 2025 Attendee Railbelt Reliability Council Board Meeting             BP Energy Center Anchorage, AK Bill Price February 29, 2024 Attendee 2024 ASEC Planning Committee Virtual Brandy M. Dixon February 28, 2024 Speaker AEA Update Presentation on Grid Modernization (Specifically the Anchorage to Healy Phase) to the Greater Fairbanks Chamber of Commerce: Energy, Environment & Natural Resources Committee Virtual Curtis W. Thayer February 22, 2024 Media Interview Chignik Power Restored, Christina McDermott, KDLG in Dillingham Phone Curtis W. Thayer February 20, 2024 Presenter AEA Overview and Programs Update Presentation to Fairbanks Economic Development Corporation: Energy for All Alaska Task Force Virtual Curtis W. Thayer February 19, 2024 Attendee Utility Working Group Comms Monthly Check-In Virtual Brandy M. Dixon AEA Community Outreach Page 3 of 4 DATE DESCRIPTION TOPIC AND AUDIENCE LOCATION TEAM MEMBER February 15, 2024 Attendee 2024 ASEC Planning Committee Virtual Brandy M. Dixon February 14, 2024 Presenter AEA Overview and Programs Update to Greater Fairbanks Chamber of Commerce In Person Curtis W. Thayer February 8, 2024 Newsletter AKEVWG February Newsletter Sent to 266 Recipients Email Brandy M. Dixon February 7, 2024 Presenter AEA Overview and Programs Update to Southeast Conference Virtual Curtis W. Thayer February 7, 2024 Presenter AEA Presentation to Alaska Forum on the Environment In Person Audrey Alstrom, Conner Erickson February 6-9, 2024 Attendee/Opening Remarks 2024 National Association of State Energy Officials (NASEO) Energy Policy Outlook Conference The Fairmont, Washington, DC Curtis W. Thayer February 6, 2024 Media Interview Bond Package, James Brooks, Alaska Beacon Phone Curtis W. Thayer February 6, 2024 Host Public Notice: Joint Agency and Public Meeting Virtual Bryan Carey February 5, 2024 Attendee Railbelt Reliability Council Board Meeting             CIRI Office Anchorage, AK Bryan Carey, Bill Price February 1, 2024 Presenter AEA Executive Order 128 Overview Presentation to House Energy Committee In Person Curtis W. Thayer February 1, 2024 Presenter AEA Overview and Programs Update to House Energy Committee In Person Curtis W. Thayer January 31, 2024 Host/Presenter AEA RE-VEEP Informational Presentation to Applicants In Person Yosty Storms January 31, 2024 Presenter AEA Overview and Programs Update to Alaska Power Association In Person Curtis W. Thayer January 29, 2024 Press Release AEA releases 2023 REF Impact and Evaluation Report Email/Social Media Brandy M. Dixon January 25, 2024 Vendor Booth AEA Vendor Booth at the Mat-Su Transportation Fair Fairgrounds, Ravel Hall, Palmer, AK Quinlan Harris, Yosty Storms January 24, 2024 Presenter AEA SESP Presentation to NASEO Island Cohort In Person Audrey Alstrom January 22, 2024 Media Interview Executive Order 128, James Brooks, Alaska Beacon Phone Curtis W. Thayer January 18, 2024 Host AKEVWG Technical Session: DriveOhio – Construction and Opening of the first NEVI-Funded Sites In-Person/Virtual AEA EV Team January 18, 2024 Attendee 2024 ASEC Planning Committee Virtual Brandy M. Dixon January 17, 2024 Presenter AEA ARPPOW Meeting to Rural Operator Virtual Kyle Killmer January 12, 2024 Newsletter AKEVWG January Newsletter Sent to 266 Recipients Email Brandy M. Dixon January 9, 2024 Host/Presenter Renewable Energy Grant Fund Advisory Committee Meeting In Person/Virtual Karen Bell, Conner Erickson January 9, 2024 Media Inquiry Manokotak, Christina McDermott, KDLG Radio in Dillingham Phone Call Tim Sandstrom February 5, 2024 Attendee Railbelt Reliability Council Board Meeting             CIRI Office Anchorage, AK Bryan Carey, Bill Price January 4, 2024 Attendee 2024 ASEC Planning Committee Virtual Brandy M. Dixon January 2, 2024 Press Release AEA opens application for $22.1 million in grid resilience sub-awards Email/Social Media Brandy M. Dixon December 21, 2023 Podcast Alaska Powerline Podcast, Michael Rovito, Alaska Power Association Virtual Curtis W. Thayer December 20, 2023 Press Release AEA awarded $1.67 million from DOE for EV charging infrastructure in rural Alaska Email/Social Media Brandy M. Dixon December 19, 2023 Press Release AEA announces $2.6 million in grants available for rural energy projects Email/Social Media Brandy M. Dixon December 14, 2023 Newsletter AKEVWG December Newsletter Sent to 265 Recipients Email Brandy M. Dixon December 14, 2023 Host/Presenter AKEVWG Technical Session: Car Dealership Panel Discussion Virtual Josi Hartley December 14, 2023 Attendee Utility Working Group Comms Monthly Check-In Virtual Brandy M. Dixon December 11, 2023 Press Release AEA launches a new digital library of over 7,500 items Email/Social Media Brandy M. Dixon December 8, 2023 Media Interview Alaska National Electric Vehicle Infrastructure (NEVI) Plan, Madeleine Ngo, The New York Time Phone Call Curtis W. Thayer, Josi Hartley December 6, 2023 Presenter AEA Federal Funding Presentation to 73rd Annual Alaska Municipal League Local Government Conference In Person Conner Erickson AEA Community Outreach Page 4 of 4 DATE DESCRIPTION TOPIC AND AUDIENCE LOCATION TEAM MEMBER December 6-8, 2023 Attendee/Presenter/Vendor Booth 73rd Annual Alaska Municipal League Local Government Conference Dena’ina Civic and Convention Center, Anchorage, AK Audrey Alstrom, Katherine Aubrey, Karen Bell, Brandy M. Dixon, Conner Erickson, Josi Hartley, Anna M. Larsen, Taase Toli-Moana, Bill Price, Curtis W. Thayer ECONOMY & ENVIRONMENT GOVERNMENT & POLITICS Alaska Legislature passes carbon- storage bill with additional energy provisions A bill enabling the state to enter the carbon-sequestration business was expanded with features from other Cook Inlet-focused energy bills BY: YERETH ROSEN - MAY 16, 2024 5:00 AM    ✉  ⎙  Shorebirds forage on July 17, 2019, along the edge of Cook Inlet by the Tony Knowles Coastal Trail in Anchorage. The Alaska Legislature has passed a bill that will enable carbon storage in reservoirs deep below Cook Inlet. The carbon-storage bill include numerous other provisions aimed at improving energy supplies and deliverability in Cook Inlet and elsewhere. (Photo by Yereth Rosen/Alaska Beacon) The Alaska Legislature has passed a bill that combines carbon storage, new regulation of natural gas storage, state nancing for P A R T O F S T AT E S N E W S R O O M  new Cook Inlet natural gas development and an expansion of the state’s geothermal energy program. The vehicle for the wide range of energy provisions was a measure, House Bill 50, that sets up a regulatory and commercial framework for Alaska to stash carbon gases that would otherwise be streaming into the atmosphere and reinforcing the greenhouse layer that is heating the planet. “This bill is about bringing new revenue and new opportunities to Alaska,” said Sen. Bert Stedman, R-Sitka, who co-chairs the powerful nance committee and was one of the Senate leaders who shepherded the bill as it grew into wider-ranging energy legislation. The bill started as one in a pair introduced last year by Gov. Mike Dunleavy that focus on the state’s opportunity to earn money through carbon sequestration or storage. The rst bill, which passed last year and became dubbed the “tree bill,” authorized a system for the state to sell carbon credits for preserved land within state- owned forests. The carbon-sequestration bill, which became known as the “hole bill” because it concerns injection of carbon gas deep underground, turned out to be more complex. The bill that the Legislature passed sets up a process for carbon- storage leases and regulation of what is known as “pore space,” the underground cavities in which the gas could be reinjected. It sets scal terms, including details that bar companies from using their costs of carbon sequestration to oset state oil and gas production taxes, as well as a requirement for 50% of the revenue from carbon- storage leasing to go to the Alaska Permanent Fund. And it addresses long-term monitoring of facilities used for carbon storage. Global energy trends are driving the sequestration business, Stedman said in his comments. Energy users are demanding that energy producers reduce their carbon footprint, and sequestration is a prime way to do that. “It’s an expanding industry and the companies are beginning to commit billions of dollars to invest in that subject,” he said. Through carbon capture, Stedman said, Alaska could turn its old Cook Inlet oil and gas elds, as well as its still-producing North Slope elds, into storage sites of international signicance. “We have what is potentially the largest basin for carbon storage on the American Pacic Coast. That opens possible opportunities from across the Pacic Rim, and foreign countries like Japan are now studying how to handle their carbon sequestration,” he said. Those countries lack reservoir space, he said. “They’re too small. Alaska, with Cook Inlet, is sitting in a prime location,” he said. And Stedman marveled at the technology being developed to manage captured carbon gas. He spoke of atware used at a conference he attended last year, all of which was formed out of carbon dioxide. “It’s not your grandma’s silverware,” he said. Other energy provisions attached The bill’s section on regulating natural gas storage in Cook Inlet incorporates the contents of a separate bill, Senate Bill 220.  It’s a common practice for lawmakers to combine loosely related bills at the end of a session in order to get them passed before the deadline expires. “This is a huge piece for Cook Inlet,” Senate Majority Leader Cathy Giessel, R-Anchorage, the sponsor of that separate bill, said in oor comments. “As we are seeking to increase natural gas production in Cook Inlet, we have to have a place to store the gas. During the summer we don’t use as much. We need a place to store it.”  Upper Cook Inlet, off downtown Anchorage, is seen on June 26, 2023, beyond a statue of Olga Nicolai Ezi, a Dena’ina matriarch and an important gure in local history. (Photo by Yereth Rosen/Alaska Beacon) Having the Regulatory Commission of Alaska oversee the prices charged for that storage, she said, is key to consumer protection and fairness. The commission already regulates one natural gas storage facility on the Kenai Peninsula, a commercial site called Cook Inlet Natural Gas Storage Alaska that started operating in 2012. The provisions in the just-passed bill authorize the commission to regulate any other Cook Inlet natural gas storage operations.   The bill’s section on reserves-based lending incorporates the substance of yet another measure, House Bill 388, that authorizes the state to lend money for development of Cook Inlet oil or gas projects, with the hydrocarbon reserves to be used as collateral. The lending would be through the Alaska Industrial Development and Export Authority, the state-owned development bank; the bill directs AIDEA to create a special Cook Inlet revolving fund for the projects. The project eyed by legislators as the likeliest beneciary of reserve- based lending is the Cosmopolitan Unit just oshore from Anchor Point on the Kenai Peninsula. The unit is owned by BlueCrest Energy, a small Texas-based rm that, legislators say, lacks the nancial wherewithal to properly develop known natural gas reserves. Without mentioning Cosmopolitan by name, Sen. Bill Wielechowski, D-Anchorage, referred to it as a reason for including reserve-based lending in the wider-ranging bill. “That provision alone could unlock over 300 billion cubic feet of gas in one eld, we think, which solves our problem in Cook inlet for the next decade,” he said in oor comments. The geothermal section in the bill incorporates legislation originally introduced by Dunleavy, House Bill 74 and Senate Bill 69, that redenes geothermal energy and expands that size of the tracts that may be leased for development. The new denition lowers the temperature threshold from 120 degrees Celsius to 80 degrees Celsius and allows leased geothermal projects to cover 100,000 acres, an increase from the current 51,200-acre limit. Wide, but not unanimous, support The bill won nal passage when the House concurred on Wednesday the last day of the session, with the Senate changes. The bill, in its nal form, had wide support. It passed the Senate by a 18-2 vote on Tuesday, and the House concurrence was by a 37-3 margin. But there were detractors. Although she voted for the bill, Sen. Shelley Hughes, R-Palmer, scoed at the idea of carbon storage as a climate solution and even at the global scientic consensus about how much carbon dioxide contributes to climate change. “I think that there are a lot of questions and a lot of science that is surfacing on whether there truly is the impact of carbon on the climate that has been proposed,” she said. As for carbon capture, “we’re talking about an invisible commodity, a whole system, based on that and one day we may nd the bubble pops,” she said. “I actually do think, right now, it is a scam. I do think it is. And yet, if people are foolish enough to pay us to store carbon, I’m not going to turn them down.” Sen. Mike Shower, R-Wasilla, cast a vote in opposition, as did Sen. Rob Myers, R-Fairbanks. Shower said entering the carbon capture business exposes Alaska to interference by potentially nefarious forces. “I do have concerns about where this goes, how this is tied to the bankers and nanciers and others when you look at carbon credits and things that are kind of the whole game, if you will, the whole playing eld,” he said. ✉GET THE MORNING HE ADLINES DELIVERED TO YOUR INBOX S U B S C R I B E R E P U B L I S H Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. We ask that you edit only for style or to shorten, provide proper attribution and link to our ECONOMY & ENVIRONMENT GOVERNMENT & POLITICS Alaska House approves bill designed to unify Railbelt electric transmission system The bill is intended to modernize and improve energy availability and delivery in the state’s most populous region BY: YERETH ROSEN - MAY 15, 2024 5:00 AM    ✉  ⎙  Rep. George Rauscher, R-Sutton, speaks Tuesday on the oor of the Alaska House in favor of legislation that revamps the transmission system that Railbelt utilities use to ship energy. Rauscher is the bill's sponsor. (Photo by James Brooks/Alaska Beacon) The Alaska House on Tuesday approved a bill that would overhaul the way electricity is transmitted along the most heavily populated region of the state. The bill, originally introduced by Gov. Mike Dunleavy, is one of the highlights in a part of a broader eort to address impending shortages of deliverable natural gas used to fuel electricity and produce heat. P A R T O F S T AT E S N E W S R O O M  The measure, House Bill 307, seeks to unify the transmission system that runs along the corridor from Fairbanks to the Kenai Peninsula that is referred to as the Railbelt. The system is currently used by four separate utilities located in dierent geographic regions along the line. Each utility is a cooperative owned by the residents they serve. Key provisions in the bill eliminate practices known as “wheeling” and “pancaking,” which refer to the added charges imposed on utilities for energy that runs through dierent segments of the system. Other provisions set up a new state-run system for managing the transmission line in its entirety. Additionally, the bill would allow independent power producers – a category including new solar farms and other producers of renewable energy – to be exempted from local property and other taxes, as utilities already are. The bill “represents a signicant step forward in aligning Alaska’s energy framework and aligning standards by enhancing competition, ensuring equitable recovery, promoting grid reliability and helping secure ecient and aordable energy,” said the prime sponsor, Rep. George Rauscher, R-Sutton. While the bill passed by a wide margin, 36-4, getting it to the oor required much work and compromise, members said. Rep. Zack Fields, D-Anchorage, called it “probably the most complicated legislation” being considered by lawmakers, and he thanked Rauscher for what he said was “very diligent and bipartisan and bicameral work” on the bill. Supporters used a variety of metaphors to describe the problems of a transmission system they characterized as antiquated. Fields said the bill would “end the balkanization” of the energy transmission up and down the Railbelt. Rep. Kevin McCabe, R-Big Lake, likened the current system to not a grid but a imsy and vulnerable extension cord. “Problem is, it’s not an extension cord. It’s four dierent cords right now that are all plugged in together,” he said. The utilities that use the dierent cords ght each other, though in a “gentlemanly” way, he said. It is a system that needs the overhaul provided by the bill, he said. “We need a transmission line that is owned by somebody. And the only somebody that can possibly own that transmission line and buy the power from the co-ops is us, is the state,” McCabe said. Rep. Alyse Galvin, D-Anchorage, said that while the bill may not be perfect, “this is a unique opportunity, where we are sending a message that we would like to see all of the utilities — which, by the way, are co-ops — to play any sandbox together,” she said.  Members of the Alaska House look at the tally board following a vote on House Bill 307 on Tuesday. (Photo by James Brooks/Alaska Beacon) Additionally, the bill is timely because of the large sums of federal infrastructure money coming into Alaska to supply renewable energy and make other energy modernizations, she said. “We may never see the kind of funds that are going to be coming into the state like this …. And I don’t want to lose that opportunity,” she said. All three Kenai Peninsula members were opposed, along with Rep. David Eastman, R-Wasilla. The system’s restructuring, as planned in the bill, aects each of the four utilities dierently. Those on the northern end of the system have been more supportive, the two more southern utilities have expressed concerns about potential increases in costs of the energy they use. In oor comments, Rauscher conceded that the Homer Electric Association, a Homer-based utility at the southern end of the Kenai Peninsula, could be negatively aected by the new system, at least in the short term. That’s because it would no longer enjoy a cost advantage from being close to the Bradley Lake hydropower plant. But in the long term, he said, the new system is expected to be fairer and more ecient. Rep. Sarah Vance, R-Homer, said her opposition to the bill was reluctant. “But I have to represent my constituents who have a lot of hesitation about the provisions,” she said. Electric rates have already increased in her district because of natural gas supply problems, she said. She also objected to the way the unied transmission line would be managed. Instead of having it run by the state, she said, it should be owned by the utilities. Rep. Ben Carpenter, R-Nikiski, also objected to what he said was a “monumental” change in the way the electrical system is operated. “I can’t help but point out that the way that we are approaching the solution of this problem is a very, very socialist concept. It’s state- owned, state-run, state-directed. And I would challenge you to nd where that actually has worked out well for the state of Alaska,” he said. Also voting against the bill was Rep. Justin Ruridge, R-Soldotna, who said his opposition was reluctant. He objected to the property tax exemption for independent power producers and the new organization that “will essentially create a third level of bureaucracy for the transmission of electricity in our state,” he said. The bill now goes to the Senate for consideration in that body. Wednesday is the scheduled last day of the legislative session. ✉GET THE MORNING HE ADLINES DELIVERED TO YOUR INBOX S U B S C R I B E R E P U B L I S H